Paylocity Holding(US:PCTY)2025-02-06 21:06Financial 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].