Paycom Software Inc., adjustment to net income

US$ in thousands

12 months ended:	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net income (as reported)	281,389)	195,960)	143,453)	180,576)	137,065)
Add: Unrealized net gains (losses) on available-for-sale securities, net of tax	(3,703)	—)	—)	—)	—)
Net income (adjusted)	277,686)	195,960)	143,453)	180,576)	137,065)

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Paycom Software Inc., adjusted profitability ratios

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Net Profit Margin
Reported net profit margin	20.46%	18.57%	17.05%	24.48%	24.20%
Adjusted net profit margin	20.19%	18.57%	17.05%	24.48%	24.20%
Return on Equity (ROE)
Reported ROE	23.79%	21.93%	21.88%	34.29%	40.95%
Adjusted ROE	23.48%	21.93%	21.88%	34.29%	40.95%
Return on Assets (ROA)
Reported ROA	7.21%	6.09%	5.50%	7.26%	9.01%
Adjusted ROA	7.12%	6.09%	5.50%	7.26%	9.01%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Paycom Software Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Paycom Software Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Paycom Software Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

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	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	281,389)	195,960)	143,453)	180,576)	137,065)
Revenues	1,375,218)	1,055,524)	841,434)	737,671)	566,336)
Profitability Ratio
Net profit margin¹	20.46%	18.57%	17.05%	24.48%	24.20%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	277,686)	195,960)	143,453)	180,576)	137,065)
Revenues	1,375,218)	1,055,524)	841,434)	737,671)	566,336)
Profitability Ratio
Adjusted net profit margin²	20.19%	18.57%	17.05%	24.48%	24.20%

2022 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × 281,389 ÷ 1,375,218 = 20.46%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 277,686 ÷ 1,375,218 = 20.19%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Paycom Software Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	281,389)	195,960)	143,453)	180,576)	137,065)
Stockholders’ equity	1,182,607)	893,714)	655,643)	526,628)	334,753)
Profitability Ratio
ROE¹	23.79%	21.93%	21.88%	34.29%	40.95%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	277,686)	195,960)	143,453)	180,576)	137,065)
Stockholders’ equity	1,182,607)	893,714)	655,643)	526,628)	334,753)
Profitability Ratio
Adjusted ROE²	23.48%	21.93%	21.88%	34.29%	40.95%

2022 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 281,389 ÷ 1,182,607 = 23.79%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 277,686 ÷ 1,182,607 = 23.48%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Paycom Software Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	281,389)	195,960)	143,453)	180,576)	137,065)
Total assets	3,902,513)	3,215,145)	2,607,912)	2,486,917)	1,521,926)
Profitability Ratio
ROA¹	7.21%	6.09%	5.50%	7.26%	9.01%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	277,686)	195,960)	143,453)	180,576)	137,065)
Total assets	3,902,513)	3,215,145)	2,607,912)	2,486,917)	1,521,926)
Profitability Ratio
Adjusted ROA²	7.12%	6.09%	5.50%	7.26%	9.01%

2022 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 281,389 ÷ 3,902,513 = 7.21%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 277,686 ÷ 3,902,513 = 7.12%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Paycom Software Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Paycom Software Inc. (NYSE:PAYC)

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