(Reuters) – Payroll processor Paycom Software on Tuesday forecast fourth-quarter revenue that was below market estimates hit by sluggish demand for payroll solutions and human resource management amid an uncertain economy, sending the company’s shares down 28% in extended trading.
Sticky inflation and high borrowing costs have clouded Paycom’s outlook and hurt demand for the company’s human resource and payroll services amid a resilient job market.
The results are in sharp contrast with rival Automatic Data Processing which last week topped profit estimates on higher demand for its payroll services.
Paycom forecast current-quarter revenue in the range of $420 million to $425 million, compared with estimates of $452.3 million, according to LSEG data.
The company also cut its annual revenue forecast to a range of $1.679 billion to $1.684 billion.
It posted revenue of $406.3 million for the third quarter ended Sept. 30, missing analyst estimates of $411.2 million.
Net income came in at $1.30 per share compared with 90 cents per share a year ago.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shailesh Kuber)
