Paylocity (PCTY) came out with quarterly earnings of $2.43 per share, beating the Zacks Consensus Estimate of $2.09 per share. This compares to earnings of $2.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.27%. A quarter ago, it was expected that this provider of cloud-based payroll and human-resources software services would post earnings of $1.39 per share when it actually produced earnings of $1.52, delivering a surp ...

Financial Data and Key Metrics Changes - Recurring and other revenue for Q3 was $421.1 million, a 15% increase year-over-year, exceeding guidance by $6.1 million [10][13] - Total revenue grew 13% compared to Q3 of the previous year, driven by strong sales execution [6][10] - Adjusted gross profit margin improved to 77%, up 110 basis points from the same quarter last year [13] - Adjusted EBITDA for Q3 was $197.1 million, representing 43.4% of revenue, significantly exceeding guidance [15][19] - Cash and cash equivalents at the end of the quarter totaled $477.8 million, with $243.8 million outstanding on the credit facility related to the Airbase acquisition [16] Business Line Data and Key Metrics Changes - The company reported strong performance in its channel referrals, with over 25% of new business coming from benefit brokers and financial advisers [10] - The integration of Airbase is progressing well, enhancing the value proposition for clients by providing a unified platform for payroll and non-payroll spending [11][56] Market Data and Key Metrics Changes - The company noted a stable client workforce level, with some seasonal hiring expected in the upcoming months [39] - There are indications of a cautious approach from some clients due to macroeconomic uncertainties, but this has not materially impacted business performance [30][99] Company Strategy and Development Direction - The company is focused on expanding its product suite, particularly in the Office of the CFO, and leveraging AI to enhance client experiences [6][9] - Continued investment in research and development is a priority, with a year-over-year increase of 14.6% in R&D spending [14] - The strategy includes a land-and-expand approach, aiming to sell additional products to existing clients while maintaining competitive pricing models [22][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's ability to drive profitability and revenue growth despite macroeconomic uncertainties [30][46] - The company anticipates continued strong performance in Q4, with increased guidance for both recurring and total revenue [19] - Management acknowledged the need to adapt sales strategies to address client concerns about cost control in uncertain economic conditions [79] Other Important Information - The company has been recognized for its workplace culture, being named one of America's greatest workplaces for women [12] - The share repurchase program remains active, with $150 million repurchased this fiscal year [16] Q&A Session Summary Question: Future pricing models and customer conversations - Management indicated that while HR buyers are accustomed to per employee pricing, new products may require different pricing models to align with CFO expectations [22] Question: Operating expenses and one-time items - Management clarified that operating expenses were consistent with expectations, with no significant one-time items affecting Q3 results [25] Question: Macro environment and hiring plans - Management noted a cautious sentiment in the market but emphasized strong execution and stability in client workforce levels [30][39] Question: Customer base dynamics and decision-making - Management observed some delays in decision-making among clients, particularly in the enterprise space, but noted overall stability in the client base [36][99] Question: Airbase integration and growth outlook - Management expressed confidence in the Airbase product's standalone performance and its potential once fully integrated [56] Question: Broker channel performance - Management highlighted the importance of the broker channel and the sustained partnerships that have contributed to new business growth [58] Question: AI innovations and customer engagement - Management reported increased customer engagement with AI features, enhancing efficiency and user experience [62][66] Question: Long-term margin expansion - Management discussed the potential for continued margin expansion, driven by operational efficiencies and revenue growth [41][72]

Exhibit 99.1 press release Paylocity Announces Third Quarter Fiscal Year 2025 Financial Results SCHAUMBURG, IL. – May 1, 2025 – Paylocity Holding Corporation (Nasdaq: PCTY), a leading provider of cloud-based HR, payroll, and spend management software solutions, today announced financial results for the third quarter of fiscal year 2025, which ended March 31, 2025. "Our solid results continued into the third quarter of fiscal 25, with recurring revenue growth of 15%, total revenue growth of 13% and increased ...

Q3 2025 Recurring & Other Revenue of $421.1 million, up 15% year-over-yearQ3 2025 Total Revenue of $454.5 million, up 13% year-over-year SCHAUMBURG, Ill., May 01, 2025 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (Nasdaq: PCTY), a leading provider of cloud-based HR, payroll, and spend management software solutions, today announced financial results for the third quarter of fiscal year 2025, which ended March 31, 2025. “Our solid results continued into the third quarter of fiscal 25, with recurring reve ...

SCHAUMBURG, Ill., April 17, 2025 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (Nasdaq: PCTY), a leading provider of cloud-based HR, payroll, and spend management software solutions, today announced that it has scheduled a conference call to review its third quarter fiscal 2025 results for Thursday, May 1st at 4:30 pm Central Time (5:30 pm Eastern Time). A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at https://investors.paylocity.com/. To access t ...

SCHAUMBURG, Ill., April 02, 2025 (GLOBE NEWSWIRE) -- Paylocity (NASDAQ: PCTY), a leading provider of modern HR, payroll, and spend management solutions, today announced recognition of its Airbase by Paylocity solution as a Visionary in the 2025 Gartner® Magic Quadrant™ for Accounts Payable Applications 2025. Paylocity acquired Airbase in October 2024. The Gartner Magic Quadrant for Accounts Payable Applications evaluated providers based on their Completeness of Vision and Ability to Execute. Airbase by Payl ...

SCHAUMBURG, Ill., April 02, 2025 (GLOBE NEWSWIRE) -- Paylocity (NASDAQ:PCTY), a leading provider of modern HR, payroll, and spend management solutions, today announced recognition of its Airbase by Paylocity solution as a Visionary in the 2025 Gartner® Magic Quadrant™ for Accounts Payable Applications 2025. Paylocity acquired Airbase in October 2024. The Gartner Magic Quadrant for Accounts Payable Applications evaluated providers based on their Completeness of Vision and Ability to Execute. Airbase by Paylo ...

Airbase by Paylocity recognized for touchless automation and superior user experience in Spring 2025 SolutionMapSCHAUMBURG, Ill., March 24, 2025 (GLOBE NEWSWIRE) -- Paylocity (NASDAQ: PCTY) today announced it has been ranked the #1 Expense Management Solution for SMEs (companies under $100M in revenue) in the latest Spend Matters Spring 2025 SolutionMap for Expense Management. This recognition highlights Airbase by Paylocity's commitment to providing best-in-class expense management capabilities for growing ...

Paylocity ( PCTY ) is a cloud payroll/human capital management [HCM] software provider based in the US that I have been following for a while. I covered PCTY the first time in 2020 , and theAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in PCTY over the next 72 hours. I wrote this article myself, and it express ...

Financial Data and Key Metrics Changes - Recurring and other revenue for Q2 was $347.7 million, an increase of 17%, with total revenue of $377 million, up 16% from the same period last year [19][10] - Adjusted gross profit was 73.8% for Q2, compared to 72.7% in Q2 of the previous fiscal year, representing a 110 basis points improvement [20] - Adjusted EBITDA for Q2 was $126.2 million, or a 33.5% margin, exceeding the midpoint of guidance by $8.2 million [21] - Cash and cash equivalents at the end of the quarter were $482.4 million, with $325 million in debt related to the Airbase acquisition [22] Business Line Data and Key Metrics Changes - The launch of new products, including benefit decision support and integrated headcount planning, has increased the maximum revenue per employee (PEPY) from $550 to $600 [11] - The new AI assistant chatbot has seen a 30% increase in utilization since its launch in October, with key features reducing report search time by over 20% [12] Market Data and Key Metrics Changes - The broker referral network contributed over 25% of new business in Q2, driven by the modern platform and third-party integrations [15] - The average daily balance of client funds was approximately $2.8 billion in Q2, expected to rise to $3.2 billion in Q3 [22] Company Strategy and Development Direction - The company is focused on product innovation and expansion, with ongoing investments in R&D to enhance its platform for the modern workforce [20][11] - The integration of Airbase is seen as a strategic move to enhance the value proposition for clients, with plans for a unified platform over time [100][102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive further product expansion and revenue growth, supported by a stable macroeconomic environment [14] - The company has raised its fiscal 2025 guidance due to strong sales performance and operational execution [25][27] Other Important Information - Paylocity was recognized in multiple awards, including Forbes' list of America's Most Trusted Companies and Fortune's Best Workplaces in Technology [18] - The company continues to utilize its share repurchase program, having repurchased approximately 40,000 shares in Q2 [24] Q&A Session Summary Question: How does the recent M&A activity in the market affect the broker channel? - Management believes that their strong relationships with brokers and the lack of competition in selling insurance products will allow them to capitalize on any disruptions caused by M&A activity [31][33] Question: Is there a renewed sense of optimism in the business? - Management confirmed a consistent optimistic approach towards growth and client service, indicating stability in the market [40][42] Question: What is the contribution of Airbase to revenue? - Airbase is expected to contribute roughly 1% of revenue this fiscal year, with the core business driving the larger guidance increase [56] Question: How is the company addressing the differences in market segments? - Management noted that while there are longer decision cycles in the upper market, stability has improved, and they are seeing gradual increases in attach rates for products [60][62] Question: What are the plans for integrating Airbase? - The integration will be a multi-year effort, with a focus on delivering a unified experience while also growing standalone revenue [102] Question: How is the labor market affecting business? - The macro environment has been stable, with modest upside expected in the first half of the fiscal year [112][113] Question: What is the outlook for gross margins? - Management is pleased with the expanded gross margins and is focused on balancing investments to drive efficiencies while maintaining service levels [115][118] Question: What is the level of client interest in Gen AI functionality? - There is strong client interest in the AI capabilities, with a focus on enhancing client satisfaction and efficiency [121][124]