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]