Paycom Soft (PAYC)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	1,548,600	1,417,380	1,162,480	893,638	717,888
Revenue	US$ in thousands	1,883,200	1,693,670	1,375,220	1,055,520	841,434
Gross profit margin		82.23%	83.69%	84.53%	84.66%	85.32%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,548,600K ÷ $1,883,200K
= 82.23%

The gross profit margin of Paycom Soft has shown a gradual decline over the past five years. Starting at 85.32% on December 31, 2020, it decreased to 82.23% by December 31, 2024. This downward trend indicates a decrease in profitability before accounting for operating expenses. It is important for Paycom Soft to closely monitor and assess the underlying factors contributing to this decrease in gross profit margin to ensure sustainable financial performance in the future.