Paycom Software Inc. (PAYC) saw its shares surge over 7% in after-hours trading on Tuesday after reporting better-than-expected financial results for the third quarter of 2024. The strong performance was fueled by continued robust demand for the company's comprehensive human capital management (HCM) solutions.

For the quarter ended September 30, Paycom posted adjusted earnings of $1.67 per share, surpassing analysts' consensus estimate of $1.61. Revenue climbed 11.2% year-over-year to $451.9 million, also exceeding Wall Street's expectations of $446.9 million. The company's recurring revenues, which account for 98.5% of total revenues, grew by 11.6% compared to the same period last year.

Paycom's impressive results were driven by robust demand for its comprehensive payroll and HR software offerings, particularly in the current strong job market. The company's focus on automation and delivering return on investment (ROI) to clients through its Beti self-service payroll solution has been a key growth driver. Paycom has also been expanding its presence internationally, recently announcing plans to bring Beti to Ireland.

The company also raised its full-year 2024 revenue outlook to a range of $1.866 billion to $1.873 billion, up from its previous guidance of $1.853 billion to $1.871 billion. However, the updated full-year revenue forecast was slightly below Wall Street's consensus estimate of $1.87 billion.