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Monday, May 8, 2017

About $PAYC, a slightly disingenuous growth story

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Financially, they are an excellent growth story. However, it’s not like they are being blatant about it, but they are presenting themselves as an HR software company. It sounds great and very encompassing, but most of their revenues are coming from the single source of payroll processing. This is an entirely different beast than all of the many other sources that they are touting. Perhaps this is an excusable case of “fake it till you make it”, but them having their revenues sourcing from payroll processing has an entire world of risks attached to it in an era of reduced taxes and regulations. Im not sure that the share price of 75x earnings is justified. Thoughts about this?

submitted by /u/Voritos
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May 08, 2017 at 06:02AM

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from /u/Voritos

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