Third Quarter Revenues of $406 million, up 22% from the comparable prior year period

Third Quarter GAAP Net Income of $75 million, representing 19% of total revenues, or $1.30 per diluted share

Third Quarter Non-GAAP Net Income of $102 million, of $1.77 per diluted share

Third Quarter Adjusted EBITDA of $166 million, representing 41% of total revenues

Paycom Software, Inc. ("Paycom," "we" and "our") (NYSE:PAYC), a leading provider of comprehensive, cloud-based human capital management software, today announced its financial results for the quarter ended September 30, 2023.

"Our third quarter fundamentals were strong with solid revenue and earnings growth," said Paycom's founder, chairman and CEO, Chad Richison. "Our innovations have transformed the payroll and HCM industry for 25 years, and we're excited to deliver even stronger value to our clients for years to come."

Financial Highlights for the Third Quarter of 2023

Total Revenues of $406.3 million represented a 21.6% increase compared to total revenues of $334.2 million in the same period last year. Recurring revenues of $398.8 million increased 21.5% from the comparable prior year period, and constituted 98.1% of total revenues.

GAAP Net Income was $75.2 million, or $1.30 per diluted share, compared to GAAP net income of $52.2 million, or $0.90 per diluted share, in the same period last year.

Non-GAAP Net Income¹ was $102.4 million, or $1.77 per diluted share, compared to $73.4 million, or $1.27 per diluted share, in the same period last year.

Adjusted EBITDA¹ was $165.6 million, compared to $126.0 million in the same period last year.

Cash and Cash Equivalents were $484.0 million as of September 30, 2023, compared to $400.7 million as of December 31, 2022. During the quarter ended September 30, 2023, Paycom paid $21.6 million in cash dividends and repurchased 263,824 shares of common stock for a total of $76.5 million.

Total Debt was $29.0 million as of September 30, 2023 and December 31, 2022.

¹Adjusted EBITDA and non-GAAP net income are non-GAAP financial measures. Please see the discussion below under the heading "Use of Non-GAAP Financial Information" and the reconciliations at the end of this release for additional information concerning these and other non-GAAP financial measures.

Financial Outlook

Paycom provides the following expected financial guidance for the quarter and the year ending December 31, 2023.

Quarter Ending December 31, 2023:

Total Revenues in the range of $420 million to $425 million.

Adjusted EBITDA in the range of $169 million to $174 million.

Year Ending December 31, 2023:

Total Revenues in the range of $1.679 billion to $1.684 billion.

Adjusted EBITDA in the range of $712 million to $717 million.

We have not reconciled the forward-looking adjusted EBITDA ranges presented above and discussed on the teleconference call to net income, nor the forward-looking adjusted EBITDA margins and forward-looking non-GAAP effective income tax rate discussed on the teleconference call to comparable GAAP measures, because applicable information for future periods, on which these reconciliations would be based, is not readily available due to uncertainty regarding, and the potential variability of, depreciation and amortization, interest expense, taxes, non-cash stock-based compensation expense and other items. Accordingly, reconciliations of the forward-looking adjusted EBITDA ranges to net income, the forward-looking adjusted EBITDA margins to net income margin, and the forward-looking non-GAAP effective income tax rate to the GAAP effective income tax rate are not available at this time without unreasonable effort. During the teleconference call, we also refer to a forward-looking estimate of our implied revenue growth rate plus adjusted EBITDA margin, or the "Rule of 65". Because we are unable to reconcile forward-looking adjusted EBITDA margin to net income margin without unreasonable effort, we are unable to reconcile the "Rule of 65" to a comparable GAAP measure without unreasonable effort.

Use of Non-GAAP Financial Information

To supplement our financial information presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we present certain non-GAAP financial measures in this press release and on the related teleconference call, including adjusted EBITDA, non-GAAP net income, adjusted gross profit, adjusted gross margin, adjusted sales and marketing expenses, adjusted total administrative expenses, adjusted research and development expenses, adjusted total research and development costs, adjusted EBITDA margin, and "Rule of 65". Management uses these non-GAAP financial measures as supplemental measures to review and assess the performance of our core business operations and for planning purposes. We define (i) adjusted EBITDA as net income plus interest expense, taxes, depreciation and amortization, non-cash stock-based compensation expense, certain transaction expenses that are not core to our operations (if any), the change in fair value of our interest rate swap and any loss on the extinguishment of debt, (ii) non-GAAP net income as net income plus non-cash stock-based compensation expense, certain transaction expenses that are not core to our operations (if any), the change in fair value of our interest rate swap and any loss on the extinguishment of debt, all of which are adjusted for the effect of income taxes, (iii) adjusted gross profit as gross profit plus applicable non-cash stock-based compensation expense, (iv) adjusted gross margin as gross profit plus applicable non-cash stock-based compensation expense, divided by total revenues, (v) each adjusted expense item as the GAAP expense amount less applicable non-cash stock-based compensation expense, (vi) adjusted total research and development costs as total research and development costs (including the capitalized portion) less applicable non-cash stock-based compensation (including the capitalized portion), (vii) adjusted EBITDA margin as adjusted EBITDA (calculated as described in clause (i)) divided by total revenues, and (viii) "Rule of 65" as revenue growth rate (expressed as a percentage) plus adjusted EBITDA margin (calculated as described in clause (vii)) and (ix) non-GAAP effective income tax rate as the provision for income taxes plus the income tax effect on non-GAAP adjustments divided by non-GAAP net income (calculated as described in clause (ii)) plus the provision for income taxes and the income tax effect on non-GAAP adjustments. The non-GAAP financial measures presented in this press release and discussed on the related teleconference call provide investors with greater transparency to the information used by management in its financial and operational decision-making. We believe these metrics are useful to investors because they facilitate comparisons of our core business operations across periods on a consistent basis, as well as comparisons with the results of peer companies, many of which use similar non-GAAP financial measures to supplement results under GAAP. In addition, adjusted EBITDA is a measure that provides useful information to management about the amount of cash available for reinvestment in our business, repurchasing common stock and other purposes. Management believes that the non-GAAP measures presented in this press release and discussed on the related teleconference call, when viewed in combination with our results prepared in accordance with GAAP, provide a more complete understanding of the factors and trends affecting our business and performance.

The non-GAAP financial measures presented in this press release and discussed on the related teleconference call are not measures of financial performance under GAAP and should not be considered a substitute for net income, gross profit, gross margin, research and development expenses, sales and marketing expenses, administrative expenses and total research and development costs. Non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation, or as a substitute for the consolidated statements of income data prepared in accordance with GAAP. The non-GAAP financial measures that we present may not be comparable to similarly titled measures of other companies and other companies may not calculate such measures in the same manner as we do.

Conference Call Details:

In conjunction with this announcement, Paycom will host a conference call today, October 31, 2023, at 5:00 p.m. Eastern time to discuss its financial results. To access this call, dial (833) 470-1428 (domestic) or (929) 526-1599 (international) and provide 539600 as the access code. A live webcast as well as the replay of the conference call will be available on the Investor Relations page of Paycom's website at investors.paycom.com.

About Paycom

For 25 years, Paycom Software, Inc. (NYSE:PAYC) has simplified businesses and the lives of their employees through easy-to-use HR and payroll technology to empower transparency through direct access to their data. And thanks to its industry-first solution, Beti®, employees now do their own payroll and are guided to find and fix costly errors before payroll submission. From onboarding and benefits enrollment to talent management and more, Paycom's software streamlines processes, drives efficiencies and gives employees power over their own HR information, all in a single app. Recognized nationally for its technology and workplace culture, Paycom can now serve businesses of all sizes in the U.S. and internationally.

Forward-Looking Statements

Certain statements in this press release are, and certain statements on the related teleconference call may be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are any statements that refer to Paycom's estimated or anticipated results, other non-historical facts or future events and include, but are not limited to, statements regarding our business strategy; anticipated future operating results and operating expenses, cash flows, capital resources, dividends and liquidity; trends, opportunities and risks affecting our business, industry and financial results; future expansion or growth plans and potential for future growth, including internationally; our ability to attract new clients to purchase our solution; our ability to retain clients and induce them to purchase additional applications; our ability to accurately forecast future revenues and appropriately plan our expenses; market acceptance of our solution and applications; our expectations regarding future revenues generated by certain applications; our ability to attract and retain qualified employees and key personnel; future regulatory, judicial and legislative changes; how certain factors affecting our performance correlate to improvement or deterioration in the labor market; our plan to open additional sales offices and our ability to effectively execute such plan; the sufficiency of our existing cash and cash equivalents to meet our working capital and capital expenditure needs over the next 12 months; our plans regarding our capital expenditures and investment activity as our business grows, including with respect to research and development and the expansion of our corporate headquarters and other facilities; our plans to pay cash dividends; our plans to repurchase shares of our common stock through a stock repurchase plan; and our expected income tax rate for future periods. In addition, forward-looking statements also consist of statements involving trend analyses and statements including such words as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "might," "plan," "potential," "should," "will," "would," and similar expressions or the negative of such terms or other comparable terminology. These forward-looking statements are based only on information currently available to us, speak only as of the date hereof and are subject to business and economic risks. As such, our actual results could differ materially from those set forth in the forward-looking statements as a result of the factors discussed in our filings with the Securities and Exchange Commission, including but not limited to those discussed in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q. We do not undertake any obligation to update or revise the forward-looking statements to reflect events that occur or circumstances that exist after the date on which such statements were made, except to the extent required by law.


Paycom Software, Inc.
Unaudited Consolidated Balance Sheets
(in thousands, except per share amounts)

	September 30, 2023			December 31, 2022
Assets
Current assets:
Cash and cash equivalents	$	484,028		$	400,730
Accounts receivable		15,548			22,843
Prepaid expenses		40,561			34,056
Inventory		836			1,607
Income tax receivable		10,770			5,583
Deferred contract costs		111,877			96,378
Current assets before funds held for clients		663,620			561,197
Funds held for clients		1,899,346			2,202,975
Total current assets		2,562,966			2,764,172
Property and equipment, net		468,282			402,448
Intangible assets, net		51,088			54,017
Goodwill		51,889			51,889
Long-term deferred contract costs		645,611			567,974
Other assets		76,265			62,013
Total assets	$	3,856,101		$	3,902,513
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	6,889		$	16,054
Accrued commissions and bonuses		20,423			28,439
Accrued payroll and vacation		41,160			45,023
Deferred revenue		22,730			19,825
Accrued expenses and other current liabilities		77,065			59,990
Current liabilities before client funds obligation		168,267			169,331
Client funds obligation		1,901,643			2,207,706
Total current liabilities		2,069,910			2,377,037
Deferred income tax liabilities, net		145,465			141,033
Long-term deferred revenue		105,588			97,591
Long-term debt		29,000			29,000
Other long-term liabilities		84,829			75,245
Total long-term liabilities		364,882			342,869
Total liabilities		2,434,792			2,719,906
Commitments and contingencies
Stockholders' equity:
Common stock, $0.01 par value (100,000 shares authorized, 62,655 and 62,518 shares issued at September 30, 2023 and December 31, 2022, respectively; 57,700 and 57,867 shares outstanding at September 30, 2023 and December 31, 2022, respectively)		627			625
Additional paid-in capital		687,723			576,622
Retained earnings		1,410,659			1,196,968
Accumulated other comprehensive earnings (loss)		(2,181	)		(3,703	)
Treasury stock, at cost (4,955 and 4,651 shares at September 30, 2023 and December 31, 2022, respectively)		(675,519	)		(587,905	)
Total stockholders' equity		1,421,309			1,182,607
Total liabilities and stockholders' equity	$	3,856,101		$	3,902,513


Paycom Software, Inc.
Unaudited Consolidated Statements of Comprehensive Income
(in thousands, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Revenues
Recurring	$	398,763		$	328,150		$	1,237,706		$	987,848
Implementation and other		7,540			6,017			21,373			16,762
Total revenues		406,303			334,167			1,259,079			1,004,610
Cost of revenues
Operating expenses		55,600			44,169			163,302			122,265
Depreciation and amortization		13,341			10,935			38,299			31,405
Total cost of revenues		68,941			55,104			201,601			153,670
Administrative expenses
Sales and marketing		101,162			91,114			311,171			253,834
Research and development		51,864			40,366			143,651			108,774
General and administrative		71,827			60,693			213,397			179,109
Depreciation and amortization		15,608			12,625			44,660			36,378
Total administrative expenses		240,461			204,798			712,879			578,095
Total operating expenses		309,402			259,902			914,480			731,765
Operating income		96,901			74,265			344,599			272,845
Interest expense		(222	)		(1,018	)		(1,661	)		(1,587	)
Other income (expense), net		5,362			2,041			17,549			4,331
Income before income taxes		102,041			75,288			360,487			275,589
Provision for income taxes		26,822			23,135			101,456			74,151
Net income	$	75,219		$	52,153		$	259,031		$	201,438
Earnings per share, basic	$	1.30		$	0.90		$	4.48		$	3.48
Earnings per share, diluted	$	1.30		$	0.90		$	4.46		$	3.46
Weighted average shares outstanding:
Basic		57,825			57,865			57,871			57,949
Diluted		57,966			58,033			58,056			58,193
Comprehensive earnings (loss):
Net income	$	75,219		$	52,153		$	259,031		$	201,438
Unrealized net gains (losses) on available-for-sale securities		1,232			(2,705	)		2,047			(4,881	)
Tax effect		(420	)		492			(525	)		1,068
Other comprehensive income (loss), net of tax		812			(2,213	)		1,522			(3,813	)
Comprehensive earnings (loss)	$	76,031		$	49,940		$	260,553		$	197,625


Paycom Software, Inc.
Unaudited Consolidated Statements of Cash Flows
(in thousands)

	Nine Months Ended September 30,
	2023			2022
Cash flows from operating activities
Net income	$	259,031		$	201,438
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		82,959			67,783
Accretion of discount on available-for-sale securities		(387	)		(872	)
Non-cash marketing expense		1,263			1,320
Gain on disposition of property and equipment		(33	)		—
Amortization of debt issuance costs		946			532
Stock-based compensation expense		96,383			70,815
Loss on extinguishment of debt		1,222			—
Cash paid for derivative settlement		—			205
Gain on derivative		—			(1,559	)
Deferred income taxes, net		3,889			(4,841	)
Other		18			(227	)
Changes in operating assets and liabilities:
Accounts receivable		7,295			(5,406	)
Prepaid expenses		(8,845	)		(11,203	)
Inventory		375			27
Other assets		(15,773	)		(10,104	)
Deferred contract costs		(87,604	)		(86,634	)
Accounts payable		(8,131	)		4,159
Income taxes, net		(5,187	)		1,245
Accrued commissions and bonuses		(8,016	)		(3,320	)
Accrued payroll and vacation		(3,863	)		1,810
Deferred revenue		10,902			12,585
Accrued expenses and other current liabilities		24,125			(1,106	)
Net cash provided by operating activities		350,569			236,647
Cash flows from investing activities
Purchases of investments from funds held for clients		(25,000	)		(268,718	)
Proceeds from investments from funds held for clients		25,000			328,731
Purchases of property and equipment		(135,709	)		(92,041	)
Proceeds from sale of property and equipment		67			—
Net cash used in investing activities		(135,642	)		(32,028	)
Cash flows from financing activities
Proceeds from the issuance of debt		—			29,000
Repurchases of common stock		(74,994	)		(94,652	)
Withholding taxes paid related to net share settlements		(12,620	)		(5,017	)
Payments on long-term debt		—			(29,287	)
Dividends paid		(43,367	)		—
Net change in client funds obligation		(306,063	)		(92,478	)
Payment of debt issuance costs		(649	)		(6,437	)
Net cash used in financing activities		(437,693	)		(198,871	)
(Decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents		(222,766	)		5,748
Cash, cash equivalents, restricted cash and restricted cash equivalents
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period		2,409,095			1,812,691
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period	$	2,186,329		$	1,818,439


Paycom Software, Inc.
Unaudited Consolidated Statements of Cash Flows
(in thousands)


	Nine Months Ended September 30,
	2023		2022
Reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents
Cash and cash equivalents	$	484,028	$	317,163
Restricted cash included in funds held for clients		1,702,301		1,501,276
Total cash, cash equivalents, restricted cash and restricted cash equivalents, end of period	$	2,186,329	$	1,818,439

Supplemental disclosures of cash flow information:
Non-cash investing and financing activities:
Purchases of property and equipment, accrued but not paid	$	8,011	$	3,355
Stock-based compensation for capitalized software	$	11,529	$	6,545
Right of use assets obtained in exchange for operating lease liabilities	$	21,023	$	14,385

Paycom Software, Inc.

Unaudited Reconciliations of GAAP to Non-GAAP Financial Measures

(in thousands, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Net income to adjusted EBITDA:
Net income	$	75,219		$	52,153		$	259,031		$	201,438
Interest expense		222			1,018			1,661			1,587
Provision for income taxes		26,822			23,135			101,456			74,151
Depreciation and amortization		28,949			23,560			82,959			67,783
EBITDA		131,212			99,866			445,107			344,959
Non-cash stock-based compensation expense		33,198			24,492			96,383			70,815
Loss on extinguishment of debt		1,222			—			1,222			—
Change in fair value of interest rate swap		—			1,668			—			—
Adjusted EBITDA	$	165,632		$	126,026		$	542,712		$	415,774
Net income margin		18.5	%		15.6	%		20.6	%		20.1	%
Adjusted EBITDA margin		40.8	%		37.7	%		43.1	%		41.4	%

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Net income to non-GAAP net income:
Net income	$	75,219		$	52,153		$	259,031		$	201,438
Non-cash stock-based compensation expense		33,198			24,492			96,383			70,815
Loss on extinguishment of debt		1,222			—			1,222			—
Change in fair value of interest rate swap		—			1,668			—			—
Income tax effect on non-GAAP adjustments		(7,263	)		(4,882	)		(17,347	)		(15,180	)
Non-GAAP net income	$	102,376		$	73,431		$	339,289		$	257,073

Weighted average shares outstanding:
Basic		57,825			57,865			57,871			57,949
Diluted		57,966			58,033			58,056			58,193

Earnings per share, basic	$	1.30		$	0.90		$	4.48		$	3.48
Earnings per share, diluted	$	1.30		$	0.90		$	4.46		$	3.46
Non-GAAP net income per share, basic	$	1.77		$	1.27		$	5.86		$	4.44
Non-GAAP net income per share, diluted	$	1.77		$	1.27		$	5.84		$	4.42

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Earnings per share to non-GAAP net income per share, basic:
Earnings per share, basic	$	1.30		$	0.90		$	4.48		$	3.48
Non-cash stock-based compensation expense		0.57			0.42			1.67			1.22
Loss on extinguishment of debt		0.02			—			0.02			—
Change in fair value of interest rate swap		—			0.03			—			—
Income tax effect on non-GAAP adjustments		(0.12	)		(0.08	)		(0.31	)		(0.26	)
Non-GAAP net income per share, basic	$	1.77		$	1.27		$	5.86		$	4.44

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Earnings per share to non-GAAP net income per share, diluted:
Earnings per share, diluted	$	1.30		$	0.90		$	4.46		$	3.46
Non-cash stock-based compensation expense		0.57			0.42			1.66			1.22
Loss on extinguishment of debt		0.02			—			0.02			—
Change in fair value of interest rate swap		—			0.03			—			—
Income tax effect on non-GAAP adjustments		(0.12	)		(0.08	)		(0.30	)		(0.26	)
Non-GAAP net income per share, diluted	$	1.77		$	1.27		$	5.84		$	4.42

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Adjusted gross profit:
Total revenues	$	406,303		$	334,167		$	1,259,079		$	1,004,610
Less: Total cost of revenues		(68,941	)		(55,104	)		(201,601	)		(153,670	)
Total gross profit		337,362			279,063			1,057,478			850,940
Plus: Non-cash stock-based compensation expense		2,868			1,396			8,606			3,725
Total adjusted gross profit	$	340,230		$	280,459		$	1,066,084		$	854,665
Gross margin		83.0	%		83.5	%		84.0	%		84.7	%
Adjusted gross margin		83.7	%		83.9	%		84.7	%		85.1	%

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Adjusted sales and marketing expenses:
Sales and marketing expenses	$	101,162		$	91,114		$	311,171		$	253,834
Less: Non-cash stock-based compensation expense		(6,851	)		(5,280	)		(18,367	)		(13,186	)
Adjusted sales and marketing expenses	$	94,311		$	85,834		$	292,804		$	240,648

Total revenues	$	406,303		$	334,167		$	1,259,079		$	1,004,610
Sales and marketing expenses as a % of revenues		24.9	%		27.3	%		24.7	%		25.3	%
Adjusted sales and marketing expenses as a % of revenues		23.2	%		25.7	%		23.3	%		24.0	%

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Adjusted total administrative expenses:
Total administrative expenses	$	240,461		$	204,798		$	712,879		$	578,095
Less: Non-cash stock-based compensation expense		(30,330	)		(23,096	)		(87,777	)		(67,090	)
Adjusted total administrative expenses	$	210,131		$	181,702		$	625,102		$	511,005

Total revenues	$	406,303		$	334,167		$	1,259,079		$	1,004,610
Total administrative expenses as a % of revenues		59.2	%		61.3	%		56.6	%		57.5	%
Adjusted total administrative expenses as a % of revenues		51.7	%		54.4	%		49.6	%		50.9	%

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Adjusted research and development expenses:
Research and development expenses	$	51,864		$	40,366		$	143,651		$	108,774
Less: Non-cash stock-based compensation expense		(5,617	)		(3,039	)		(17,514	)		(8,115	)
Adjusted research and development expenses	$	46,247		$	37,327		$	126,137		$	100,659

Total revenues	$	406,303		$	334,167		$	1,259,079		$	1,004,610
Research and development expenses as a % of revenues		12.8	%		12.1	%		11.4	%		10.8	%
Adjusted research and development expenses as a % of revenues		11.4	%		11.2	%		10.0	%		10.0	%

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Total research and development costs:
Capitalized research and development costs	$	26,578		$	16,995		$	70,809		$	48,835
Research and development expenses		51,864			40,366			143,651			108,774
Total research and development costs	$	78,442		$	57,361		$	214,460		$	157,609

Total revenues	$	406,303		$	334,167		$	1,259,079		$	1,004,610
Total research and development costs as a % of revenues		19.3	%		17.2	%		17.0	%		15.7	%

Adjusted total research and development costs:
Total research and development costs	$	78,442		$	57,361		$	214,460		$	157,609
Less: Capitalized non-cash stock-based compensation		(3,777	)		(2,365	)		(11,529	)		(6,545	)
Less: Non-cash stock-based compensation expense		(5,617	)		(3,039	)		(17,514	)		(8,115	)
Adjusted total research and development costs	$	69,048		$	51,957		$	185,417		$	142,949

Total revenues	$	406,303		$	334,167		$	1,259,079		$	1,004,610
Adjusted total research and development costs as a % of revenues		17.0	%		15.5	%		14.7	%		14.2	%


Paycom Software, Inc.
Unaudited Components of Non-Cash Stock-Based Compensation Expense
(in thousands)

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Non-cash stock-based compensation expense:
Operating expenses	$	2,868	$	1,396	$	8,606	$	3,725
Sales and marketing		6,851		5,280		18,367		13,186
Research and development		5,617		3,039		17,514		8,115
General and administrative		17,862		14,777		51,896		45,789
Total non-cash stock-based compensation expense	$	33,198	$	24,492	$	96,383	$	70,815

View source version on businesswire.com: https://www.businesswire.com/news/home/20231031405721/en/

Paycom Software, Inc. Reports Third Quarter 2023 Results