Paycom software (PAYC) shares soared 21% on Thursday, posting the best daily performance in the S&P 500, after the payroll and human resources software company reported better-than-expected third-quarter sales and earnings.

The strong job market, accompanied by a slowdown in inflation, supports a steady pace of hiring and has helped drive demand for Paycom’s employee management solutions.

Paycom reported solid sales growth in the third quarter, with total revenue up 11.2% year over year. Recurring revenue grew 11.6% for Paycom, accounting for 98.5% of Paycom’s total revenue. This is highly desirable for software and service providers like Paycom, as it represents a stable stream of expected sales.

Paycom stock struggled in the first half of 2024, hitting a summer low below $140 per share. However, the trend has been more positive since mid-July, and with Thursday’s rally, shares moved back above $200 and into positive territory for the year.