Paycor HCM, Inc. (PYCR): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how companies manage their most valuable asset—their people? Paycor HCM, Inc., a leader in Human Capital Management (HCM) solutions, might just be the answer! With over 30,000 customers and 2.3 million employees on its platform, Paycor reported annual recurring revenue of $622.6 million as of Q4 2023, but how did they get here, who owns them, and what's their secret sauce for making money? Keep reading to find out!

Paycor HCM, Inc. (PYCR) History

Paycor HCM, Inc.'s Founding Timeline

Year established

The company was founded in 1990.

Original location

The company was originally located in Cincinnati, Ohio.

Founding team members

The founder of the company is Bob Coughlin.

Initial capital/funding

Information regarding the initial capital or funding for the company's establishment is not readily available.

Paycor HCM, Inc.'s Evolution Milestones

Paycor HCM, Inc.'s Transformative Moments

• Strategic Acquisitions: The company has grown and expanded its service offerings through the strategic acquisitions of companies like Newton Software and 残業削減. These acquisitions have allowed it to offer a more comprehensive suite of HCM solutions, including talent acquisition and workforce management.
• Private Equity Investment: The acquisition by Apax Partners in 2014 was a transformative moment, providing the company with significant capital and expertise to accelerate its growth and expand its market presence.
• Going Public: Paycor's IPO in 2021 marked a significant milestone in its history, providing increased visibility, access to capital, and validation of its business model. The IPO has enabled the company to further invest in its technology, expand its sales and marketing efforts, and pursue additional acquisitions.

For more insights into the financial aspects of Paycor, check out this analysis: Breaking Down Paycor HCM, Inc. (PYCR) Financial Health: Key Insights for Investors

Paycor HCM, Inc. (PYCR) Ownership Structure

Paycor HCM, Inc. exhibits a mixed ownership structure, featuring a combination of institutional, insider, and retail investors. Understanding this structure is key to grasping the dynamics influencing the company's decisions.

Paycor HCM, Inc.'s Current Status

Paycor HCM, Inc. is a public company, trading on the NASDAQ under the ticker symbol PYCR. As a publicly-traded entity, it is subject to regulatory oversight and reporting requirements, providing a level of transparency to its operations and financial performance.

Paycor HCM, Inc.'s Ownership Breakdown

The ownership of Paycor HCM, Inc. is distributed among various types of shareholders. Here's a breakdown:

Paycor HCM, Inc.'s Leadership

The leadership team is instrumental in guiding the strategic direction of Paycor HCM, Inc. Key figures include:

• Raul Villar, Jr.: Chief Executive Officer
• Adam Ante: Chief Financial Officer
• Paaras Parker: Chief Human Resources Officer

These individuals, along with other members of the executive team, bring a wealth of experience to the company. To gain more insight into the company's goals, check out: Mission Statement, Vision, & Core Values of Paycor HCM, Inc. (PYCR).

Paycor HCM, Inc. (PYCR) Mission and Values

Paycor's mission is to empower leaders to develop winning teams, while its core values emphasize integrity, service, and innovation.

Paycor HCM, Inc.'s Core Purpose

Official mission statement

Paycor's official mission statement is: 'To empower leaders to develop winning teams.'

• This statement emphasizes Paycor's focus on providing human capital management (HCM) solutions that enable businesses to effectively manage and develop their employees.
• By focusing on 'winning teams,' Paycor positions itself as a partner in helping companies achieve their business goals through strategic workforce management.

Vision statement

Paycor does not have a formal vision statement. However, Paycor's focus is on:

• Being the leading provider of human capital management (HCM) solutions for small to medium-sized businesses (SMBs).
• Driving innovation in HCM technology to meet the evolving needs of its clients.
• Creating a workplace culture that attracts and retains top talent.

Company slogan/tagline

Paycor's slogan is 'For the love of teams'.

• This tagline reflects Paycor's commitment to helping businesses build strong, engaged teams through its HCM solutions.
• The slogan is concise and memorable, conveying the company's focus on teamwork and employee development.

To learn more about Paycor's investors, check out: Exploring Paycor HCM, Inc. (PYCR) Investor Profile: Who’s Buying and Why?

Paycor HCM, Inc. (PYCR) How It Works

Paycor HCM, Inc. is a cloud-based Human Capital Management (HCM) software company that provides comprehensive HR solutions for small and medium-sized businesses, helping them modernize their people management processes.

Paycor's Product/Service Portfolio

Paycor's Operational Framework

Paycor operates on a subscription-based Software-as-a-Service (SaaS) model, generating recurring revenue from its client base. The company focuses on providing a unified HCM platform that addresses the unique needs of SMBs.

• Cloud-Native SaaS Platform: Paycor utilizes a cloud-native platform with advanced security protocols and a scalable architecture.
• HCM Solutions: Offers a comprehensive suite of HCM solutions designed to simplify and optimize workforce management.
• Key Business Segments: Payroll Management, Human Resources Software, Time and Attendance Tracking, Benefits Administration, and Workforce Management Solutions.
• Revenue Streams: Generates revenue through subscription-based software services, payroll processing fees, HCM solutions, and professional services and implementation. In 2023, total revenue was reported as $552.4 million, with subscription revenue at $489.7 million and professional services revenue at $62.7 million.
• Client Focus: Primary target markets include small businesses (50-500 employees) and mid-market companies across industries like healthcare, manufacturing, and professional services.
• Technology Investment: R&D spending in 2023 was $159.4 million, representing 20.2% of total revenue.

Paycor's Strategic Advantages

• Unified and Configurable Platform: Paycor differentiates itself by offering a unified platform that is highly configurable and integrative, addressing common pain points associated with fragmented HR systems.
• Vertical Expertise: Specializes in key verticals such as healthcare, food and beverage, professional services, and manufacturing, providing industry-specific tools that address unique operational challenges.
• Customer Retention: Strong customer retention rate of 92% and an average customer contract value of $24,500 annually.
• AI-Powered Solutions: Recent innovations include the launch of Paycor Assistant, an AI-powered HR companion designed to streamline HR operations.
• Strategic Partnerships: Integrations with key accounting and ERP software providers like QuickBooks, Sage Intacct, and Microsoft Dynamics, as well as partnerships with financial institutions for banking and payment services.
• Market Position: Approximately 3.5% market share in the HR software market.
• Focus on Leaders: Platform is designed to empower decision-makers with tools required to drive employee engagement, retention, and overall organizational performance.

To delve deeper into Paycor's mission, vision, and core values, visit: Mission Statement, Vision, & Core Values of Paycor HCM, Inc. (PYCR).

Paycor HCM, Inc. (PYCR) How It Makes Money

Paycor HCM, Inc. primarily generates revenue by offering a comprehensive suite of human capital management (HCM) solutions, which includes payroll services, HR management, time and attendance tracking, and talent management tools, all delivered through a Software-as-a-Service (SaaS) model.

Paycor's Revenue Breakdown

Paycor's revenue is derived from two main streams: recurring subscription revenue and professional services revenue. The bulk of their income comes from subscriptions to their SaaS platform.

Paycor's Business Economics

Paycor's business model is characterized by high recurring revenue and strong customer retention. Here are some key aspects of their business economics:

• SaaS Model: The SaaS model ensures a steady stream of subscription revenue, as customers pay regularly for access to the software and services.
• Customer Retention: High customer retention rates contribute to predictable revenue and reduce the need for constant customer acquisition.
• Scalability: The cloud-based platform allows for easy scalability, enabling Paycor to efficiently serve businesses of varying sizes.
• Pricing Strategy: Paycor employs a tiered pricing strategy, offering different packages based on the size and needs of the client. This allows them to cater to a wide range of businesses, from small startups to larger enterprises.

Paycor's Financial Performance

Paycor's financial performance can be assessed through several key metrics that highlight the company’s growth and stability.

• Revenue Growth: Paycor has demonstrated consistent revenue growth, driven by increased adoption of its HCM solutions and expansion of its customer base. For the fiscal year 2024, Paycor's total revenues were $562.6 million, an increase of 17% compared to total revenues of $480.4 million for the fiscal year 2023. Subscription revenues increased 18% to $546.3 million compared to $461.5 million.
• Gross Margin: A healthy gross margin indicates efficient cost management and pricing strategies. Paycor's gross profit was $374.4 million, representing a gross margin of approximately 66.5% for the fiscal year 2024.
• Net Income/Loss: While assessing profitability, it’s important to consider any net losses. For the fiscal year 2024, Paycor had a net loss of $38.3 million.
• Adjusted EBITDA: Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) provides a clearer picture of operational profitability. Paycor's adjusted EBITDA for the fiscal year 2024 was $173.4 million, an increase of 27% compared to $136.8 million for the fiscal year 2023.

To gain more insights into Paycor's financial standing, check out this analysis: Breaking Down Paycor HCM, Inc. (PYCR) Financial Health: Key Insights for Investors

Paycor HCM, Inc. (PYCR) Market Position & Future Outlook

As of April 2025, Paycor HCM, Inc. is strategically positioned to capitalize on the growing demand for comprehensive human capital management solutions, particularly among small and medium-sized businesses. Its future outlook is shaped by continued investments in technology and strategic partnerships aimed at expanding its service offerings and market reach. For more insights into the company's financial standing, check out: Breaking Down Paycor HCM, Inc. (PYCR) Financial Health: Key Insights for Investors.

Competitive Landscape

Opportunities & Challenges

Industry Position

Paycor's industry position can be further understood through the following points:

• Focus on SMBs: Paycor primarily targets small and medium-sized businesses, offering tailored solutions that address their specific needs.
• Integrated HCM Solutions: Paycor provides a comprehensive suite of HCM solutions, including payroll, HR, and talent management, all integrated into a single platform.
• Technology Investments: The company is investing in technology to enhance its platform and provide more advanced analytics and insights.
• Strategic Partnerships: Paycor is forming strategic partnerships to expand its service offerings and market reach.
• Market Share: While specific, up-to-the-minute market share data is dynamic, industry reports suggest Paycor holds a notable position within the HCM market, particularly among SMBs, with an estimated market share of around 4%.