Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ________________________________________________________________________ Form 10-Q ________________________________________________________________________ x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2022 o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Com ...

Financial Data and Key Metrics Changes - Total revenue for Q4 2022 was $228.9 million, representing a 36.7% increase year-over-year, with recurring and other revenues up 36.2% [22][9] - For fiscal 2022, total revenue reached $852.7 million, marking a 34.1% growth, the largest annual revenue growth since fiscal 2016 [10][9] - Adjusted EBITDA for Q4 was $59.3 million, a 25.9% margin, exceeding guidance by $6.8 million [23] - Fiscal 2022 adjusted EBITDA was $237.8 million, a 27.9% margin, showing a leverage of 120 basis points compared to fiscal 2021 [23][24] Business Line Data and Key Metrics Changes - The number of clients increased by 16% in fiscal 2022, ending with 33,300 clients compared to 28,750 the previous year [10][11] - Average recurring revenue per client rose to over $25,000, a 16% increase from just under $22,000 in fiscal 2021 [11] - Monthly user engagement grew by over 40% in fiscal 2022, with video creation increasing by over 80% [12] Market Data and Key Metrics Changes - The demand for HR technology is increasing due to a tight labor market and challenges in managing remote and hybrid teams [15] - The sales team executed well across all markets, setting a strong foundation for fiscal 2023 [16] Company Strategy and Development Direction - The company is focused on expanding its sales force and investing in training and marketing to drive productivity [17] - Continued investment in research and development is emphasized, with R&D investments at 14% of revenue in Q4 [24][25] - The company aims to cross over $1 billion in revenue in fiscal 2023 while maintaining a focus on client service and employee culture [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment and the company's ability to grow, citing strong sales execution and client satisfaction [19][20] - The company does not anticipate changes in employment levels affecting guidance, maintaining a flat assumption for the year [62][61] - Management noted that inflation is impacting clients, particularly in wage pressures, but the company has been able to attract and retain talent effectively [110][113] Other Important Information - The company ended the fiscal year with cash and cash equivalents of $139.8 million and no debt [28] - Average daily balance of client funds was $2.2 billion in Q4, with estimated interest income of $4 million to $5 million for Q1 [29][31] Q&A Session Summary Question: What drove the revenue beat in the quarter? - Management attributed the revenue beat to strong business execution and a successful year-end selling season, with no single item being the primary driver [39] Question: How are new sales reps being targeted? - The growth of sales reps is evenly spread across different business areas, with an 18% increase in sales reps for fiscal 2023 [41] Question: How will the company strategize around increased interest income? - The company plans to fund investments in R&D and sales and marketing while allowing most interest revenue to flow to the bottom line [48] Question: What is the competitive landscape like? - The competitive environment is strong, with consistent success across segments, and products like Community and Modern Workforce Index resonate well with clients [75][78] Question: How is the integration of Blue Marble progressing? - Integration is progressing well, with Blue Marble providing incremental revenue opportunities for clients with international employees [92] Question: How does inflation impact the business? - Inflation is affecting clients through wage pressures, but the company has managed to maintain its talent acquisition and retention effectively [110][113]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________________ FORM 10-K __________________________________________________ x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number 001-36348 ______________________ ...

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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ________________________________________________________________________ Form 10-Q ________________________________________________________________________ x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2022 o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commiss ...

Paylocity Holding Corporation (NASDAQ:PCTY) Q3 2022 Results Conference Call May 5, 2022 5:30 PM ET Company Participants Ryan Glenn - Chief Financial Officer Steve Beauchamp - Chief Executive Officer Toby Williams - Co-Chief Financial Officer Conference Call Participants Scott Berg - Needham Brian Peterson - Raymond James Bryan Bergin - Cowen Robert Dee - Truist Brad Reback - Stifel Matt Pfau - William Blair Ryan Krieger - Wolfe Research Kevin McVeigh - Credit Suisse Lucky Schreiner - D.A. Davidson Mark Marc ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 ________________________________________________________________________ Form 10-Q ________________________________________________________________________ x Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended December 31, 2021 o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Comm ...

Financial Data and Key Metrics Changes - Total revenue for Q2 was $196 million, representing a 34% increase compared to the same period last year, exceeding guidance by $6.5 million [11][20] - Adjusted EBITDA for the quarter was $46.6 million, with a margin of 23.8%, surpassing guidance by $4.6 million [12][24] - Gross profit for Q2 was $125.2 million, with operating income at $8.1 million and net income at $9.9 million [24] Business Line Data and Key Metrics Changes - Recurring and other revenues increased by 34.1% year-over-year [20] - Investment in R&D rose by 21.6% year-over-year, reflecting a commitment to enhancing the Paylocity platform [21] - Sales and marketing expenses were 23.7% of revenue, while G&A costs were 13.1% of revenue, showing a slight improvement from the previous year [23] Market Data and Key Metrics Changes - The average daily balance of client funds was $1.8 billion in Q2, expected to rise to approximately $2.2 billion in Q3 [26] - The company anticipates an average yield of 5 to 10 basis points for Q3 [26] Company Strategy and Development Direction - The company is raising its target market segment from clients with over 1,000 employees to those with up to 5,000 employees, indicating a strategic shift to capture larger clients [18] - The acquisition of Cloudsnap aims to enhance integration capabilities, supporting the strategy of automating data exchange between critical systems [15][17] - Continued investment in R&D and product development is seen as crucial for maintaining competitiveness in the market [13][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong sales momentum and the ability to maintain growth, citing a return to pre-COVID activity levels [57][90] - The demand for human capital management solutions is increasing, driven by challenges in attracting and retaining talent [90][91] - The company maintains a long-term growth target of over 20%, despite recent strong performance [47][48] Other Important Information - The company ended the quarter with cash and cash equivalents of $84.1 million and drew down $50 million from its revolving credit facility for the Cloudsnap acquisition [25] - The guidance for Q3 revenue is expected to be between $239 million and $243 million, reflecting approximately 30% growth year-over-year [28] Q&A Session Summary Question: How prepared is the company for moving upmarket? - Management indicated that the move upmarket has occurred naturally over time, with a significant number of clients already in the 1,000+ employee segment [35][36] Question: What is the retention rate for engaged customers? - Early signs suggest that higher engagement with modern workforce products correlates with better retention rates, although quantifiable data is still being gathered [38] Question: How is customer feedback on new tools? - New tools like the COVID tracker and diversity tools are well-received and provide differentiation, although they are included in the platform at no additional cost [42] Question: What are the biggest factors affecting EBITDA margins? - Management reiterated a commitment to achieving 30% to 35% EBITDA margins over time, with scale and revenue growth being key drivers [43][44] Question: How is the company addressing the competitive landscape? - The company focuses on modernizing employee engagement tools, which resonate well with clients looking to attract and retain talent [83][84] Question: What is the impact of rising interest rates on the business? - Rising interest rates are expected to provide a tailwind for revenue and profitability, although the timing and magnitude of these effects remain uncertain [85][86]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2021 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to (IRS Employer Identification No.) 1400 American Lane Schaumburg, Illinois 60173 (Address of principal executive offices) (Zip Code) (847) 463-3200 (R ...

Financial Data and Key Metrics Changes - Total revenue for Q1 was $181.7 million, representing a 33.8% increase year-over-year, marking the highest quarterly growth since Q1 of fiscal 2017 [12][25] - Adjusted EBITDA for the first quarter was $46.1 million, with a margin of 25.4%, exceeding guidance by $5.3 million [13][29] - Adjusted gross profit was 70.5% for Q1 compared to 69.4% in the same quarter last year [26] Business Line Data and Key Metrics Changes - Recurring revenue and other revenues grew by 34.1% year-over-year, driven by strong execution across all target market areas [12][25] - Sales and marketing expenses were 24.1% of revenue in Q1, with a focus on incremental investments to drive growth [28] Market Data and Key Metrics Changes - The average daily balance of client-held funds was $1.7 billion in Q1, expected to rise to approximately $1.8 billion in Q2 [31] - The company expects Blue Marble to represent less than 2% of total fiscal 2022 revenue, with a slight headwind to adjusted EBITDA of approximately 40 basis points [20][36] Company Strategy and Development Direction - The company is focused on expanding its product suite, including new machine-learning capabilities and diversity, equity, and inclusion tools [15][17] - Paylocity aims to leverage its strong hiring momentum across all business areas, including sales, marketing, R&D, and operations [14][33] - The acquisition of Blue Marble is expected to enhance the company's global payroll capabilities, allowing it to serve clients in 150 countries [19][20] Management's Comments on Operating Environment and Future Outlook - Management noted that the pandemic has accelerated the shift to remote work, increasing demand for global talent [19] - The company is optimistic about its growth trajectory, raising fiscal 2022 guidance to approximately 29% revenue growth at the midpoint [36][38] - Management emphasized the importance of HR tools in the current labor market, highlighting the need for effective employee engagement and retention strategies [100][102] Other Important Information - Paylocity was recognized as a Fortune 100 fastest-growing company and named in Inc.'s inaugural list of Best-Led Companies for 2021 [24] - The company continues to invest significantly in research and development, with a year-over-year increase of 16.1% in total R&D investment [27] Q&A Session Summary Question: Collaboration functionality within HR - Management explained that the changing nature of work and increased use of video communication make collaboration tools more relevant today [42][44] Question: Impact of Blue Marble on quarterly results - Management confirmed that Blue Marble contributed for only one month in the quarter, aligning with the less than 2% revenue expectation for the year [46] Question: Daily active usage on the platform - Management reported significant increases in overall platform usage, particularly in community engagement and learning management [52][54] Question: Sales-force productivity relative to pre-pandemic levels - Management indicated that sales-force productivity is approaching pre-pandemic levels, with strong momentum in new business revenue [59][60] Question: Demand for core products and switching environment - Management noted a return to pre-pandemic demand levels, with customers actively evaluating HCM solutions [85] Question: Plans for Blue Marble integration - Management stated that integration will be gradual, ensuring a seamless user experience while enhancing global capabilities [107][109]