SCHAUMBURG, Ill., July 14, 2025 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (Nasdaq: PCTY), a leading provider of cloud-based HR, payroll, and spend management software solutions, today announced that it has scheduled a conference call to review its fourth quarter and fiscal 2025 results on Tuesday, August 5th at 4:00 pm Central Time (5:00 pm Eastern Time). A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at https://investors.paylocity.com/. To acc ...

Group 1: Labor Market Overview - The U.S. job market exceeded expectations for the 11th consecutive month, with 147,000 jobs added in June compared to the forecast of 110,000 [1] - The unemployment rate decreased from 4.2% to 4.1%, better than the expected 4.3% [1] - Average hourly earnings increased by 0.2% month-over-month and 3.7% year-over-year [1] Group 2: Payroll Stocks Performance - Paylocity Holding Corporation (PCTY) and Dayforce (DAY) saw stock increases of over +2% and +1% respectively, both classified as Zacks Rank 3 (Hold) [2] - Paychex (PAYX) is noted for its integrated Human Capital Management (HCM) solutions and has a Zacks Rank 2 (Buy), with expectations for steady growth in top and bottom lines [3] - Maximus (MMS) is identified as a strong buy with a Zacks Rank 1 (Strong Buy), despite a 21% decline from its 52-week high, attributed to a spike in FY25 EPS estimates by 7% [5] Group 3: Market Reactions and Economic Implications - The dip in Maximus stock followed the announcement of 7,000 federal government job cuts, but this may be an overreaction given the addition of 47,000 state government jobs and 19,000 social assistance jobs [6] - The resilient labor market and better-than-expected jobs report contribute positively to the stock market's recovery, making payroll stocks particularly attractive [8]

Core Insights - Paylocity has introduced Peer-to-Peer Rewards to enhance employee recognition and retention, allowing managers and peers to directly reward outstanding performance with monetary awards and digital gift cards [1][4][5] - Research indicates that employees who feel recognized are 45% less likely to leave their jobs, highlighting the importance of impactful appreciation in driving engagement and retention [3][2] - Paylocity's unique offering allows 82% of rewards to be redeemed as cash, catering to employee preferences for flexible rewards, and ensuring compliance with tax regulations through seamless integration with payroll [3][6] Company Overview - Paylocity, headquartered in Schaumburg, IL, is a cloud-based provider of HR, payroll, and spend management software solutions, recognized for its innovative culture and employee engagement [7] - The company has been publicly traded since 2014 and aims to help businesses automate HR processes, attract talent, and foster a positive workplace culture [7] Product Features - The new Peer-to-Peer Rewards functionality will be available to clients in August 2025, allowing for a culture of appreciation across the organization [5] - Administrators can manage rewards through a company wallet, offering flexible redemption options and automated tax processing, which simplifies fund management [6] - The platform allows for customization of recognition programs, enabling personalized employee acknowledgments that align with company values [6]

Industry Overview - The staffing industry is a crucial component of the global economy, facilitating the connection between businesses and talent to foster growth and innovation [1] - The global staffing industry is projected to reach $650 billion in 2025, reflecting a 5% growth from the previous year, driven by labor shortages, the gig economy, and digital transformation in recruitment [4] Emerging Trends - The adoption of AI and automation is reshaping recruitment processes, enhancing candidate matching accuracy and streamlining operations [2] - There is a notable shift towards skills-based hiring, with employers prioritizing practical competencies over traditional educational requirements [2] - Flexible work models, including remote and hybrid arrangements, are becoming standard, prompting staffing firms to adapt their strategies [2] Investment Opportunities - The staffing sector's growth presents attractive investment opportunities, with companies like Paylocity Holding Corporation, Pegasystems Inc., and Upwork Inc. gaining traction [5] - Staffing firms are increasingly seen as key enablers of economic expansion, making them appealing for investors [5] Company Highlights Paylocity Holding Corporation - Paylocity offers AI-powered solutions that enhance HR processes and workforce management through a unified cloud-based platform [7] - The introduction of an AI Assistant provides real-time support, while features like predictive scheduling improve decision-making and employee engagement [8] - Paylocity emphasizes employee experience with tools for continuous feedback and recognition, catering to a modern workforce [9] Pegasystems Inc. - Pegasystems specializes in customer relationship management and digital process automation, enhancing operational efficiency and customer engagement [10] - The GenAI Blueprint solution is gaining traction, combining AI with best practices to create sophisticated enterprise applications [11] - The Customer Decision Hub utilizes statistical AI for hyper-personalized customer interactions, positioning Pegasystems for revenue growth [13][14] Upwork Inc. - Upwork provides a flexible platform for businesses to connect with freelancers, allowing access to specialized skills on demand [15] - The cost-effective model reduces overhead expenses associated with traditional hiring, optimizing resource allocation [16] - Upwork's platform features advanced search filters and project management tools, facilitating efficient hiring and collaboration [17]

This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only current predictions and are subject to know ...

Paylocity Holding Corporation (NASDAQ: PCTY ) is a best-in-class, cloud-native human capital management (HCM) and payroll platform as it delivers sticky and mission-critical recurring revenue at high margins with good growth potential. Even though it faces headcount cycles, and trading at a premiumI am currently working as an investment analyst at a family office. My specialty is identifying high-quality and/or severely mispriced investment ideas. I believe that a great investment idea would "jump" at you i ...

Core Viewpoint - Paylocity (PCTY) is experiencing significant selling pressure, with a 10.2% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by positive earnings forecasts from Wall Street analysts [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - PCTY's current RSI reading is 29.59, suggesting that the heavy selling pressure may be exhausting itself, indicating a potential trend reversal [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts to raise earnings estimates for PCTY, with a 1.2% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - PCTY holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [8].

Group 1: Job Market Overview - U.S. employers added 139,000 jobs in May, exceeding economists' expectations of 125,000-130,000, while the unemployment rate remained steady at 4.2% [1] - Job growth was strongest in the healthcare and leisure/hospitality sectors, which added 62,000 and 48,000 jobs, respectively [9] Group 2: Wage Growth and Inflation - Average hourly earnings rose 3.9% year over year, outpacing April's inflation rate of 2.3% [2] Group 3: Investment Opportunities - Paylocity (PCTY) has consistently surpassed earnings expectations, beating EPS estimates for its fiscal third quarter by 16% in May, with an average EPS surprise of 15.4% over the last four quarters [4] - Maximus (MMS) is experiencing rising EPS revisions and trades at a forward earnings multiple of 10.8X, with fiscal 2025 and FY26 EPS estimates rising nearly 7% and 4% in the last 30 days [5][7] - Other payroll stocks to consider include Dayforce (DAY) and Paychex (PAYX), along with Barrett Business Services (BBSI), all holding a Zacks Rank 3 (Hold) [8]

Summary of Paylocity Conference Call Company Overview - **Company**: Paylocity - **Industry**: Payroll, Human Capital Management (HCM), and Spend Management Software - **Market Focus**: Companies with 10 to 5,000 employees - **Client Base**: Approximately 40,000 clients with an average of 50 employees each - **Financial Performance**: - IPO Revenue: $100 million - Current Revenue: Approximately $1.6 billion for the fiscal year - Adjusted EBITDA Margins: Over 35% - Free Cash Flow Margins: Over 20% - Recurring Revenue Growth: Approximately 14% this fiscal year [4][5][6] Market Opportunity and Competitive Landscape - **Market Size**: Over 1 million businesses in the U.S. fit the target employee size, indicating significant growth potential with only a few percentage points of market penetration achieved [6][7]. - **Competitive Differentiation**: - Focus on product investment and modern HCM solutions - Unique offerings such as community features, premium video, market pay, and recognition and rewards [10][11]. - **Client Acquisition Strategy**: Increased average revenue per client through upselling and expanding product offerings [7][32]. Recent Developments - **Acquisition of Airbase**: - Aimed at expanding into the office of the CFO and enhancing spend management capabilities - Integration expected to take 12 to 18 months, with positive early feedback from clients [20][27]. - **Sales Strategy**: - Focus on both new client acquisition and upselling existing clients - Increased success in the enterprise market segment (clients with 500 to 5,000 employees) due to dedicated sales teams [35][36]. Macro Environment - **Current Economic Conditions**: Described as stable, with no significant impact from recent tariff announcements observed in client demand or workforce levels [15][16]. - **Guidance Philosophy**: Prudent and reasonable guidance with expectations to beat and raise throughout the year, while being cautious of macroeconomic uncertainties [19]. AI and Technology Integration - **AI Utilization**: - AI integrated across nearly all products to enhance automation, improve workflows, and provide better client experiences - Focus on using AI for intelligent scheduling, learning management, and employee inquiries [54][55]. - **Future AI Strategy**: Continued investment in AI to drive efficiencies and improve client retention and win rates [56][57]. Capital Allocation and Financial Strategy - **Share Repurchase Program**: $500 million authorization with $300 million repurchased over the last 13 months, aimed at reducing diluted share count [62]. - **Focus on M&A**: Willingness to pursue acquisitions that enhance product offerings and market reach, while maintaining a strong balance sheet [63]. Long-term Outlook - **Growth Potential**: - Targeting $2 billion in revenue within a few years, with aspirations to reach $3 billion through expanded product offerings and cross-selling opportunities [31]. - **Market Positioning**: Strong confidence in the integration of Airbase and the overall execution strategy leading into fiscal year 2026 [65][66]. Key Takeaways - Paylocity is well-positioned in a large and growing market with a strong financial profile and competitive differentiation through product innovation - The recent acquisition of Airbase is expected to enhance growth opportunities in the office of the CFO - The company is leveraging AI to improve operational efficiencies and client experiences, which is seen as a long-term growth driver - A consistent focus on capital allocation strategies, including share repurchases and potential acquisitions, supports ongoing growth initiatives.

Core Viewpoint - Paylocity Holding (PCTY) has experienced a 6.8% decline in share price over the past three months, underperforming compared to the broader market and its industry peers [1][2] Client Base Stability - Despite macroeconomic pressures and high interest rates, Paylocity maintained stability in its client base during Q3 of fiscal 2025, with workforce levels slightly up year over year [4] - Over 25% of new business was generated through channel referrals, indicating strong partnerships with benefit brokers and financial advisers [4] Product Expansion - Paylocity's ongoing product expansion, including AI-powered tools and third-party integrations, has led to an increase in average revenue per client [5] - Recent product launches include embedded background checks and an AI assistant for policy and compliance inquiries, enhancing user experience [5] Financial Performance - In Q3 of fiscal 2025, Paylocity reported recurring and other revenues of $421.1 million, reflecting a 15% year-over-year increase, and total revenues reached $454.6 million, up 13.27% year over year [6][7] - The company exceeded revenue expectations for the third consecutive quarter and raised its full-year guidance [7] Future Guidance - For fiscal 2025, Paylocity expects total revenues to be in the range of $1.58-$1.585 billion, indicating approximately 13% year-over-year growth [8] - The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.58 billion, suggesting a year-over-year growth of 12.88% [10] Investment Outlook - Despite a cautious market environment, Paylocity has maintained a stable client base and continues to grow average revenue per client, supported by strong execution across sales and operations [11]