Revenue during the quarter surged 34.85 percent to $87.81 million from $65.12 million in the previous year period. Gross margin for the quarter contracted 187 basis points over the previous year period to 82.37 percent. Total expenses were 85.56 percent of quarterly revenues, down from 90.43 percent for the same period last year. This has led to an improvement of 487 basis points in operating margin to 14.44 percent.

Operating income for the quarter was $12.68 million, compared with $6.23 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $20.70 million compared with $10.49 million in the prior year period. At the same time, adjusted EBITDA margin improved 747 basis points in the quarter to 23.58 percent from 16.11 percent in the last year period.

"This year we further elevated our visibility within the marketplace, improved our client reach and continued to empower businesses nationwide with our powerful, yet intuitive human capital management software solution," said Chad Richison, Paycom’s founder and chief executive officer. "With impressive annual revenue growth of 46.5 percent, we bolstered our market share and now serve over 17,800 clients from coast to coast. We also returned value to our stockholders by repurchasing $50 million of common stock, which speaks to the power of our cash-generative business model. As we enter our 20th year of leading organizations in their search for best-in-class HR and payroll solutions, we will continue to provide outstanding levels of customer service and to innovate our technology through our investments in research and development."

For fiscal year 2017, Paycom Software, Inc forecasts revenue to be in the range of $422 million to $424 million.

For the first-quarter 2017, Paycom Software, Inc forecasts revenue to be in the range of $114.50 million to $116.50 million.

The company has spent $205.05 million cash to meet investing activities during the year as against cash outgo of $52.32 million in the last year.

Cash flow from financing activities was $115.54 million for the year, up 230.86 percent or $80.62 million, when compared with the last year.

Cash and cash equivalents stood at $60.16 million as on Dec. 31, 2016, up 18.62 percent or $9.44 million from $50.71 million on Dec. 31, 2015.

Working capital declines
Paycom Software, Inc has witnessed a decline in the working capital over the last year. It stood at $26.69 million as at Dec. 31, 2016, down 20.58 percent or $6.92 million from $33.60 million on Dec. 31, 2015. Current ratio was at 1.03 as on Dec. 31, 2016, down from 1.05 on Dec. 31, 2015.

Cash conversion cycle (CCC) has decreased to 8 days for the quarter from 11 days for the last year period. Days sales outstanding went down to 1 days for the quarter compared with 6 days for the same period last year.

Days inventory outstanding has decreased to 2 days for the quarter compared with 5 days for the previous year period. At the same time, days payable outstanding went down to 11 days for the quarter from 22 for the same period last year.