Paycom Software, Inc. PAYC

Revenue is driven modestly by R&D and more by SG&A investments, with elasticities of 0.05 and 0.21 per 1% spending, respectively, in a log-log model. That implies a very small ROI from R&D (0.05% revenue lift per 1% R&D spend) and a somewhat larger but still modest lift from SG&A (0.21% per 1% SG&A), highlighting SG&A efficiency as the more potent driver of topline growth. The model’s holdout accuracy shows a -4.5% miss (predicted 454M vs actual 435M) and an overall MAPE of 3.7%, indicating reasonable predictive performance. The FY revenue forecast is $2,084M, up 23.0% year over year, suggesting solid top-line momentum with growth primarily emerging from SG&A-driven lift and a modest contribution from R&D.