Investment Thesis
Paycom provides cloud-based human capital management software for mid-sized employers with a single database architecture. High switching costs, cross-sell of payroll adjacent modules, and usage-based features drive ARR growth.
- Single Database: One app for payroll, HR, talent, and timekeeping eliminates integrations.
- Self-Service Innovation: Betti pay and payroll experience empower employees and reduce admin tasks.
- High Margins: 80%+ gross margin SaaS model generates strong free cash flow.