Financial Performance & Growth - Total revenue has grown consistently, with FY25 reaching $1595 million and a projected $1715 million for FY26 [9] - The company anticipates a 12% year-over-year (YoY) growth in total revenue [9] - Adjusted EBITDA shows increasing profitability, reaching $583 million in FY25 and a projected $614 million in FY26 [9] - The company has successfully driven approximately 400 basis points of Adjusted EBITDA margin leverage since FY23 [57] - Free Cash Flow (FCF) also demonstrates leverage, reaching $219 million in FY25 [59] Market & Product Strategy - The company estimates a Realized HCM Total Addressable Market (TAM) of approximately $22 billion [12] - The company has penetrated approximately 3% of its addressable market [13] - Over 25% of new client revenue comes from referrals from channels [46] - The company has over 92% net revenue retention as a public company [47] - Total Non-GAAP R&D investment has increased to $227 million in FY25 [24]

Core Viewpoint - Paylocity Holding Corporation has scheduled a conference call to discuss its fourth quarter and fiscal 2025 results on August 5, 2025, at 4:00 pm Central Time [1] Group 1: Company Overview - Paylocity is a leading provider of cloud-based HR, payroll, and spend management software solutions, headquartered in Schaumburg, IL [3] - The company was founded in 1997 and has been publicly traded since 2014 [3] - Paylocity is recognized for its unique culture and is consistently rated as one of the best places to work [3] Group 2: Conference Call Details - A live webcast of the conference call will be available on the "Investor Relations" page of the company's website [2] - Dial-in details for accessing the call by phone will be provided through a specific link [2] - A replay of the call will be archived via webcast on 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 [2]

Financial Performance & Growth - Total revenue has grown significantly over the past few years, from $853 million in FY22 to $1,583 million in FY25 (guidance)[9] - Adjusted EBITDA has also increased substantially, from $238 million in FY22 to $573 million in FY25 (guidance)[9] - The company targets long-term adjusted EBITDA margins of 35-40% and free cash flow margins of 20-25%[58] - Free cash flow has increased from $87 million in FY21 to $306 million in FY24[64] - Recurring and other revenue has grown consistently, reaching $1,463 million in FY25 (guidance), representing a 14% year-over-year growth[56] Market & Strategy - The company estimates a realized HCM total addressable market (TAM) of approximately $19.5 billion[12] - The company has penetrated approximately 3% of its addressable market[13] - The company focuses on a target market of roughly 1.3 million businesses with 10-5,000 employees[19] - Over 25% of new client revenue comes from referrals from channels[45] - The company maintains a net revenue retention rate of over 92%[51, 52]

Core Insights - Paylocity Holding Corporation reported solid financial results for the third quarter of fiscal year 2025, with recurring revenue growth of 15% and total revenue growth of 13% compared to the same period in the previous year [2][8][4]. Financial Performance - Total revenue for the third quarter of fiscal year 2025 was $454.5 million, an increase of 13% year-over-year [8]. - Recurring and other revenue reached $421.1 million, reflecting a 15% increase from the third quarter of fiscal year 2024 [8]. - GAAP operating income was $127.0 million, up from $106.3 million in the same quarter of the previous year [3]. - Non-GAAP operating income increased to $172.7 million from $145.9 million year-over-year [3][4]. - GAAP net income for the third quarter was $91.5 million, or $1.61 per share, compared to $85.3 million, or $1.50 per share, in the prior year [4]. Cash Flow and Balance Sheet - Cash and cash equivalents totaled $477.8 million as of March 31, 2025 [9]. - Long-term debt stood at $243.8 million, with approximately $81.3 million repaid during the third quarter [9]. - Cash flow from operations for the first nine months of fiscal year 2025 was $331.7 million, compared to $304.7 million for the same period in fiscal year 2024 [9]. Business Outlook - For the fourth quarter of fiscal year 2025, recurring and other revenue is expected to be in the range of $358.1 million to $363.1 million, representing approximately 11% growth over the same quarter in fiscal year 2024 [17]. - Total revenue guidance for the fourth quarter is projected to be between $385.5 million and $390.5 million, indicating approximately 9% growth year-over-year [17]. - For the full fiscal year 2025, recurring and other revenue is anticipated to be between $1.460 billion and $1.465 billion, reflecting approximately 14% growth compared to fiscal year 2024 [17].