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Partner Interview
Published November 6, 2025

Paycom: AI Agent Strategy, Integration Trade-offs & the Upmarket Push

Executive Bio

Former VP at Paycom

Summary

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Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

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Is there anything else a smart person should ask about this company or industry that we haven't covered?

You've asked a lot of insightful questions. From a Paycom perspective, I would keep an eye on their retention numbers. We're about three months away, but I believe their retention rate is a strong indicator of whether they're turning a corner or remain stagnant as they have been for the past two or three years. Paycom was thriving with a 94% retention rate and 30% year-over-year growth. Then their retention dropped, leading to a significant slowdown to 8-10% growth. The key to revenue growth is retention because they've grown so large that they can't outsell their losses. It's easier to fix retention issues than to generate an additional $100 million in sales. If their retention improves, you might see growth in the mid-teens, around 15-17%, rather than the current 8-10%.

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