One of the few SaaS prospectuses that isn’t a complete disaster on the operating statement.<p>-GAAP profits<p>-Sales & Marketing in-line<p>-Not funding payroll at shareholders’ expense<p>However, they are very vulnerable to changes in their costs in “Benefits and Insurance”. They get a very thin gross margin here, and that can easily go negative under the wrong circumstances.
Anecdote from when I was working at Plaid on a special product for the Payroll Protection Program, but the engineers @ Justworks burnt the midnight oil to get an MVP that let businesses verify their payroll eligibility with us. Unfortunately didn't get approved in time before the PPP funds to run out, but the team was great! Grats on the IPO :)
Link to their Deal Roadshow presentation:<p><a href="https://dealroadshow.finsight.com/retail-roadshows" rel="nofollow">https://dealroadshow.finsight.com/retail-roadshows</a>
Their numbers do not favorably compare against their peers. Paycom (PAYC) is of comparable revenue but profit margin is much higher (looking like ~400% higher) at PAYC. The two are growing at similar rates.<p>I'm wondering why they are choosing to go public now given these numbers.