Paycom forecasts annual revenue below estimates, veteran CFO Craig Boelte retires

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(Reuters) – (This Feb. 12 story has been corrected to clarify that the CFO is retiring, not resigning in the headline. An earlier version was corrected to clarify share movement and remove a reference to Paycom in paragraph 3)

Paycom Software forecast full-year 2025 revenue below market estimates on Wednesday, as businesses cut back on spending for human capital management services, sending its shares down 3.3% in after-market trading.

Paycom has promoted Bob Foster, its executive vice president of accounting and finance, to the role of chief financial officer, effective February 21. He will succeed veteran CFO Craig Boelte.

An uncertain economic climate has led to IT budget cuts, prompting businesses to reduce spending, which has subsequently impacted demand for payroll services.

Paycom Software offers cloud-based human capital management software, designed to manage employee records and facilitate talent management processes.

Paycom forecast full-year 2025 revenue in the range of $2.02 billion to $2.04 billion, whose midpoint is below analysts’ estimates of $2.05 billion, according to data compiled by LSEG.

The payroll processor reported revenue of $493.8 million for the fourth quarter ended December 31, beating analysts’ average estimate of $480.8 million.

The Oklahoma City-based company’s fourth-quarter adjusted profit per share stood at $2.32 compared with analysts’ estimates of $1.97.

(Reporting by Priyanka.G in Bengaluru; Editing by Mohammed Safi Shamsi)