Analyst Note
| Emma Williams |Despite challenging macroeconomic conditions, narrow-moat Paycom remains on track to report healthy fiscal 2022 growth. The company reported continued momentum in the third quarter of fiscal 2022, with a combination of strong sales and further skew upmarket driving robust revenue growth of 30% year on year. A greater contribution from ultrahigh margin interest income revenue and greater operating leverage on a larger client base supported impressive year-on-year adjusted EBITDA margin expansion of 270 basis points to 37.7%, partly offset by investment in internal labor to support a growing client base.