(Reuters) - Paycom (NYSE:PAYC) forecast first-quarter revenue below market estimates on Wednesday as clients pull back spending on payroll and human capital management software products due to economic uncertainty, sending its shares down 5% in extended trading.
The payroll services provider also promoted former Chief Operating Officer Chris Thomas to jointly lead the company with Chad Richison as co-CEO.
The company projected revenue in the range of $494 million to $497 million for the quarter ending March 31, compared with the estimates of $500.5 million, as per LSEG data.
Paycom results contrast those of rival Automatic Data Processing, which reported upbeat results on steady demand for its payroll services.
For the quarter ended Dec. 31, Paycom reported revenue of $434.6 million, exceeding expectations of $422.5 million.
Adjusted profit of $1.93 per share also came in above estimates of $1.78.
Paycom's adjusted gross margin came in at 83.3%, compared with 84.3% a year earlier.