Revenue during the quarter surged 32.60 percent to $119.51 million from $90.13 million in the previous year period. Gross margin for the quarter contracted 106 basis points over the previous year period to 85.65 percent. Total expenses were 67.65 percent of quarterly revenues, down from 68.15 percent for the same period last year. This has led to an improvement of 50 basis points in operating margin to 32.35 percent.

Operating income for the quarter was $38.66 million, compared with $28.70 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $46.73 million compared with $33 million in the prior year period. At the same time, adjusted EBITDA margin improved 249 basis points in the quarter to 39.11 percent from 36.62 percent in the last year period.

"We continue to execute at high levels across our organization and as a result we are helping more companies than ever run their businesses more efficiently with our cloud-based payroll and human capital management solution," said Paycom’s founder and chief executive officer, Chad Richison. “We hit a huge milestone with our quarterly revenue surpassing the $100 million mark, furthering our optimism for continued momentum and success throughout the year."

For the second-quarter, Paycom Software Inc expects revenue to be in the range of $94.50 million to $96.50 million. Paycom Software Inc expects revenue to be in the range of $426 million to $428 million for financial year 2017.

The company has spent $101.87 million cash to meet investing activities during the quarter as against cash outgo of $437.28 million in the last year period.

Cash flow from financing activities was $94.40 million for the quarter, down 77.98 percent or $334.29 million, when compared with the last year period.

Cash and cash equivalents stood at $92.92 million as on Mar. 31, 2017, up 28.91 percent or $20.84 million from $72.08 million on Mar. 31, 2016.

Working capital increases
Paycom Software Inc has recorded an increase in the working capital over the last year. It stood at $46.23 million as at Mar. 31, 2017, up 5.03 percent or $2.21 million from $44.01 million on Mar. 31, 2016. Current ratio was at 1.05 as on Mar. 31, 2017, up from 1.04 on Mar. 31, 2016.

Cash conversion cycle (CCC) has increased to 59 days for the quarter from 27 days for the last year period. Days sales outstanding went down to 4 days for the quarter compared with 6 days for the same period last year.

Days inventory outstanding has decreased to 1 days for the quarter compared with 7 days for the previous year period. At the same time, days payable outstanding went up to 65 days for the quarter from 40 for the same period last year.