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Paycor HCM Inc. (PYCR+0.02%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing an increase in total revenues to $180.4 million from $159.5 million in the same quarter the previous year. This increase is attributed to higher recurring revenue and interest income on funds held for clients.
Cost of revenues for the quarter was $62.2 million, representing 34% of total revenues, compared to 35% in the same quarter of the previous year. This slight decrease in cost ratio is due to increased operational efficiency.
The company reported a gross profit of $118.3 million for the quarter, compared to $104.4 million in the previous year, with the growth attributed to increased sales and improved cost management.
Sales and marketing expenses increased to $60.1 million from $57.8 million, primarily due to higher employee-related costs and advertising expenses.
General and administrative expenses decreased to $38.6 million from $56.2 million, mainly due to reduced intangible amortization expenses.
Net loss for the quarter was $2.0 million, an improvement from a net loss of $26.2 million in the previous year. The improvement is attributed to increased revenues and decreased general and administrative expenses.
Cash provided by operating activities was $28.7 million, while cash used in investing and financing activities was $37.9 million and $221.5 million, respectively.
Paycor had cash and cash equivalents of $114.6 million as of December 31, 2024. The company continues to focus on expanding its customer base and enhancing its product offerings.
The filing also details a merger agreement with Paychex, Inc., under which Paycor will become a wholly owned subsidiary of Paychex. The merger is subject to customary closing conditions.
Paycor does not anticipate any significant changes in its business strategy as a result of the merger agreement, and it continues to focus on providing human capital management solutions to mid-market businesses.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Paycor HCM Inc. quarterly 10-Q report dated February 6, 2025. To report an error, please email earnings@qz.com.