Financial Performance - Paylocity reported a total revenue of $377.0 million for Q2 FY 2025, representing a 16% increase year-over-year[7]. - Recurring and other revenue reached $347.7 million in Q2 FY 2025, up 17% compared to the same quarter in FY 2024[6]. - GAAP net income for Q2 FY 2025 was $37.5 million, or $0.66 per share, slightly down from $38.1 million, or $0.67 per share, in Q2 FY 2024[4]. - Adjusted EBITDA for Q2 FY 2025 was $126.2 million, an increase from $112.6 million in Q2 FY 2024[8]. - Total revenues for the three months ended December 31, 2023, were $326.4 million, an increase of 15.5% compared to $376.9 million for the same period in 2024[21]. - Net income for the six months ended December 31, 2023, was $72.6 million, representing a 19.7% increase from $87.0 million for the same period in 2024[21]. - Operating income for the three months ended December 31, 2023, was $49.7 million, a decrease of 4.4% compared to $46.6 million for the same period in 2024[21]. - Non-GAAP net income for the three months ended December 31, 2023, was $84.5 million, compared to $86.0 million for the same period in 2024[25]. - The company reported a net income of $38,116 for Q4 2023, a slight increase from $37,465 in Q4 2024, representing a growth of 1.7%[26]. Cash Flow and Guidance - Cash flow from operations for the first six months of FY 2025 was $145.7 million, compared to $137.2 million for the same period in FY 2024[9]. - Paylocity expects recurring and other revenue for Q3 FY 2025 to be in the range of $410.0 million to $415.0 million, indicating approximately 12% growth over Q3 FY 2024[15]. - Total revenue guidance for FY 2025 is projected to be between $1.558 billion and $1.568 billion, reflecting approximately 11% growth over FY 2024[15]. - Cash flows from operating activities for the six months ended December 31, 2023, were $137.2 million, compared to $145.7 million for the same period in 2024[23]. - Free cash flow for the first half of 2024 was $110,746, an increase of 9.5% from $101,587 in the first half of 2023[27]. - Adjusted free cash flow excluding interest income on funds held for clients for the first half of 2024 was $56,702, up 14% from $49,758 in the first half of 2023[27]. Expenses and Investments - The company’s total operating expenses for the six months ended December 31, 2023, were $344.2 million, an increase from $389.7 million for the same period in 2024[21]. - Stock-based compensation expense for the six months ended December 31, 2023, was $82.2 million, compared to $77.2 million for the same period in 2024[23]. - Non-GAAP sales and marketing expenses for Q4 2023 were $69,621, a decrease of 15.5% from $81,950 in Q4 2024[26]. - Non-GAAP total research and development expenses for Q4 2023 were $49,726, an increase of 13.5% from $57,791 in Q4 2024[26]. - General and administrative expenses for Q4 2023 were $43,340, up 30.4% from $56,524 in Q4 2024[27]. Product Development - The company launched new products, including Benefits Decision Support and Headcount Planning, which contributed to an increase in average revenue per client to $600[2]. - Paylocity's sustained investment in R&D is driving product differentiation and operational execution, contributing to strong sales performance[2]. Balance Sheet - As of December 31, 2024, cash and cash equivalents totaled $482.4 million, while long-term debt stood at $325.0 million[8]. - The company’s cash and cash equivalents at the end of the period were $3.1 billion, up from $2.8 billion at the beginning of the period[23].

Core Insights - Paylocity Holding Corporation reported strong financial results for the second quarter of fiscal year 2025, with continued momentum from Q1 leading to increased revenue and profitability guidance for the fiscal year [2][10]. Financial Performance - Total revenue for Q2 2025 was $377.0 million, representing a 16% increase year-over-year [8][9]. - Recurring and other revenue reached $347.7 million, up 17% from the same quarter in the previous year [7][8]. - GAAP operating income was $46.6 million, while non-GAAP operating income was $101.1 million, compared to $49.7 million and $92.8 million respectively in Q2 2024 [3][4]. - GAAP net income for Q2 2025 was $37.5 million, or $0.66 per share, compared to $38.1 million, or $0.67 per share in Q2 2024 [4][9]. - Adjusted EBITDA for Q2 2025 was $126.2 million, an increase from $112.6 million in Q2 2024 [9][30]. Balance Sheet and Cash Flow - As of December 31, 2024, cash and cash equivalents totaled $482.4 million, while long-term debt stood at $325.0 million [9][26]. - Cash flow from operations for the first six months of fiscal year 2025 was $145.7 million, compared to $137.2 million for the same period in fiscal year 2024 [9][26]. Business Outlook - For Q3 2025, recurring and other revenue is expected to be between $410.0 million and $415.0 million, indicating approximately 12% growth over Q3 2024 [17]. - Total revenue guidance for fiscal year 2025 is projected to be between $1.558 billion and $1.568 billion, representing approximately 11% growth over fiscal year 2024 [17].

Core Insights - Paylocity has introduced enhancements to its Recruiting platform aimed at simplifying and accelerating hiring processes while improving candidate search quality [1][8] - The updates address challenges faced by high-volume hiring teams in industries such as retail and hospitality, focusing on streamlining workflows and enabling data-driven decision-making [2][8] Key Innovations - Streamlined scheduling for recruiters through integration with Microsoft Outlook, Gmail, and iCloud, allowing real-time availability access and synchronized updates [4] - Candidate interview self-scheduling feature that allows candidates to book interviews at their convenience, reducing delays and improving the scheduling process [5] - One-way video interviews that enable candidates to respond to screening questions via video, significantly speeding up the initial screening phase [6] - Integrated candidate assessments that allow recruiters to manage pre-hire assessments within the same workflow, simplifying the evaluation process [7] Transforming Experiences - The enhanced Recruiting platform focuses on reducing friction in the hiring process, providing actionable dashboards and collaboration tools to empower teams in making smarter, faster hiring decisions [8] Availability - The new features, including Integrated Candidate Assessments, Scheduling, and Candidate Profiles, are available now, while One-Way Video Interviews will be launched later in the spring [9] Company Overview - Paylocity, headquartered in Schaumburg, IL, is a cloud-based provider of HR, payroll, and spend management software solutions, recognized for its user-friendly products and unique workplace culture [10]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Summary: Paylocity (PCTY) - Paylocity currently holds a Momentum Style Score of B, indicating a favorable momentum outlook [3] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4] - Over the past week, PCTY shares increased by 2.91%, outperforming the Zacks Internet - Software industry, which rose by 2.3% [6] - In the last three months, PCTY shares have risen by 13.39%, and over the past year, they are up 29.19%, compared to the S&P 500's increases of 2.93% and 28.08%, respectively [7] - The average 20-day trading volume for PCTY is 311,620 shares, indicating a bullish trend when combined with rising stock prices [8] Earnings Outlook - In the past two months, two earnings estimates for PCTY have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $6.47 to $6.53 [10] - For the next fiscal year, one estimate has moved upwards with no downward revisions, indicating a positive earnings outlook [10] Conclusion - Considering the positive momentum indicators and earnings outlook, PCTY is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12]

Company Overview - Paylocity Holding Corporation is a leading provider of cloud-based HR, payroll, and spend management software solutions headquartered in Schaumburg, IL [3] - Founded in 1997 and publicly traded since 2014, Paylocity offers an intuitive product suite designed to help businesses address contemporary challenges while preparing for future opportunities [3] - The company is recognized for its unique culture and has consistently been acknowledged as one of the best places to work [3] Upcoming Events - Paylocity has scheduled a conference call to review its second quarter fiscal 2025 results on February 6, 2025, at 4:30 pm Central Time (5:30 pm Eastern Time) [1] - A live webcast of the call will be available on the "Investor Relations" page of the company's website [2] - A press release highlighting the company's results will be issued prior to the conference call and will be accessible in the investor relations section of the website [2]

Paylocity (PCTY) , a leading cloud-based HR and payroll software solutions provider, has emerged as a compelling investment opportunity in 2025, with a 19.6% stock price appreciation over the past year. The company's strong market position, innovative AI initiatives and strategic expansion make it an attractive choice for investors looking for sustained growth in the HR technology sector.Robust Financial Performance and GrowthPaylocity has demonstrated impressive financial resilience, posting 14% year-over- ...

Paylocity Holding (PCTY) shares have risen 27.5% on a year-to-date (YTD) basis compared with the Zacks Internet - Software industry and the Zacks Computer & Technology sector’s return of 32.6% and 27.6%, respectively.Over the same time frame, Paylocity Holding had outperformed shares of its competitors, including Paycom Software (PAYC) , Paychex (PAYX) and Workday (WDAY) . On a YTD basis, PAYC and PAYX returned 13.5% and 22%, respectively, while WDAY lost 3%.This outperformance stems from its enhanced sales ...

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, 2024 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 Performance - Q1 2025 total revenue reached $363.0 million, reflecting a 14% year-over-year increase[3] - Recurring and other revenue for Q1 2025 was $333.1 million, also up 14% year-over-year[3] - GAAP net income for Q1 2025 was $49.6 million, or $0.88 per share, compared to $34.5 million, or $0.61 per share in Q1 2024[4] - Adjusted EBITDA for Q1 2025 was $129.0 million, an increase from $104.9 million in Q1 2024[5] - Cash flow from operations for Q1 2025 was $91.5 million, up from $62.1 million in Q1 2024[7] - For Q2 2025, recurring and other revenue is expected to be between $337.5 million and $342.5 million, indicating approximately 14% growth[8] - Total revenue for Q2 2025 is projected to be between $364.0 million and $369.0 million, representing about 12% growth[8] - For the full fiscal year 2025, total revenue is expected to range from $1.535 billion to $1.550 billion, indicating approximately 10% growth[10] - Adjusted EBITDA for the full fiscal year 2025 is anticipated to be between $530.0 million and $540.0 million[10] Year-over-Year Comparisons - Total revenues increased from $317,586 thousand in September 2023 to $362,956 thousand in September 2024, representing a growth of 14.2%[18] - Net income rose from $34,517 thousand in September 2023 to $49,573 thousand in September 2024, an increase of 43.7%[18] - Operating income improved from $41,189 thousand in September 2023 to $64,144 thousand in September 2024, reflecting a growth of 55.7%[18] - Basic net income per share increased from $0.62 in September 2023 to $0.89 in September 2024, a growth of 43.5%[18] - Gross profit for September 2023 was $216,119, increasing to $247,996 for September 2024, representing a growth of approximately 14.7%[21] - Non-GAAP Operating income rose from $41,189 in September 2023 to $64,144 for September 2024, reflecting a growth of about 55.7%[22] - Net income increased from $34,517 in 2023 to $49,573 in 2024, marking a growth of approximately 43.6%[23] - Non-GAAP Net income per share improved from $1.40 in September 2023 to $1.66 for September 2024, an increase of about 18.6%[24] - Adjusted EBITDA grew from $104,886 in September 2023 to $129,026 for September 2024, indicating a growth of approximately 23.0%[25] Cash and Assets - Cash and cash equivalents increased from $401,811 thousand as of June 30, 2024, to $778,549 thousand as of September 30, 2024, a rise of 93.6%[17] - Total current assets before funds held for clients grew from $572,432 thousand to $955,862 thousand, an increase of 67.0%[17] - Funds held for clients decreased from $2,952,060 thousand to $2,340,411 thousand, a decline of 20.7%[17] - Total liabilities increased from $3,212,396 thousand to $2,918,869 thousand, a decrease of 9.1%[17] Operating Expenses - Total operating expenses rose from $174,930 thousand to $183,852 thousand, an increase of 5.5%[18] - Non-GAAP total research and development expenses increased from $47,706 in September 2023 to $52,038 for September 2024, a rise of about 9.8%[26] - Non-GAAP sales and marketing expenses rose from $70,532 in 2023 to $78,570 in 2024, reflecting an increase of approximately 11.4%[27] Cash Flow - Cash provided by operating activities increased from $62,142 thousand in 2023 to $91,455 thousand in 2024, a growth of 47.2%[20] - Free Cash Flow improved from $44,495 in September 2023 to $73,917 for September 2024, representing a growth of about 66.1%[29] - Free cash flow excluding interest income on funds held for clients increased from $18,594 in September 2023 to $44,066 for September 2024, a growth of approximately 137.5%[29] - The company reported a significant increase in net cash provided by operating activities, from $62,142 in September 2023 to $91,455 for September 2024, an increase of about 47.1%[29] Acquisition - The acquisition of Airbase was completed on October 1, 2024, expanding the company's addressable market[2]

SCHAUMBURG, Ill., Oct. 01, 2024 (GLOBE NEWSWIRE) -- Paylocity (NASDAQ: PCTY), a leader in cloud-based HR and payroll software solutions, has completed its acquisition of Airbase Inc., a modern finance and spend management software solution that combines bill pay / accounts payable automation, expense management, corporate cards and procurement capabilities. The acquisition of Airbase represents an expansion of Paylocity's suite and is expected to deliver incremental integrated value to HR and finance leader ...