Paycom beats revenue estimate on steady demand for payroll services

May 7 (Reuters) - Payroll processor Paycom Software PAYC.N beat Wall Street estimate for first-quarter revenue on Wednesday, benefiting from steady demand for its employee management services in a robust job market.

Cooling inflation and a strong job market are encouraging businesses to hire more people, boosting demand for workforce management solutions such as those offered by Paycom.

The Oklahoma City-based company reported revenue of $530.5 million for the quarter ended March 31, ahead of analysts' average estimate of $525 million, according to data compiled by LSEG.

Shares of Paycom were up 2.2% in volatile extended trading.

The labor department's closely watched employment report published last week showed U.S. labor market remained resilient in April, ahead of President Donald Trump's tariff turbulence.

Analysts, however, expect Paycom to be largely unimpaired by tariffs, given that it has no international exposure and a diversified customer base.

The company's adjusted earnings came in at $2.80 per share during the quarter, compared with $2.59 per share a year ago.

Paycom expects fiscal 2025 revenue in the range of $2.023 billion to $2.038 billion, while analysts estimate $2.02 billion.