Paylocity Holding(PCTY) - 2025 Q3 - Quarterly Results

Revenue Growth - Recurring revenue grew by 15% year-over-year, reaching $421.1 million in Q3 2025[6] - Total revenue increased by 13% year-over-year, totaling $454.5 million in Q3 2025[7] - For Q4 2025, recurring and other revenue is expected to be between $358.1 million and $363.1 million, representing approximately 11% growth[16] - Total revenue guidance for fiscal year 2025 is projected to be between $1.580 billion and $1.585 billion, indicating approximately 13% growth[16] Income and Profitability - GAAP operating income was $127.0 million, up from $106.3 million in Q3 2024, while non-GAAP operating income rose to $172.7 million from $145.9 million[3] - GAAP net income for Q3 2025 was $91.5 million, or $1.61 per share, compared to $85.3 million, or $1.50 per share, in Q3 2024[4] - Adjusted EBITDA was $197.1 million in Q3 2025, compared to $167.9 million in Q3 2024[8] - Non-GAAP net income for the nine months ended March 31, 2024, was $289,983 thousand, compared to $317,696 thousand in the same period of 2025, showing a growth of 9.6%[26] - The company reported a net income of $85.31 million for the three months ended March 31, 2024, reflecting solid profitability[27] Cash and Debt Management - Cash and cash equivalents stood at $477.8 million as of March 31, 2025[5] - Long-term debt totaled $243.8 million, reflecting borrowings for the acquisition of Airbase[15] - The company had cash, cash equivalents, and funds held for clients totaling $3,577,165 thousand at the end of the period, compared to $3,392,349 thousand at the end of the previous period[24] - Adjusted free cash flow excluding interest income on funds held for clients for the nine months ended March 31, 2025, was $192.62 million, highlighting effective cash management[28] Operating Expenses - Total operating expenses for the three months ended March 31, 2024, were $179,009 thousand, which is a 10.4% increase from $197,665 thousand in the same period of 2025[22] - General and administrative expenses for the three months ended March 31, 2025, totaled $54.50 million, with a focus on operational efficiency[28] - Non-GAAP total research and development expenses for the three months ended March 31, 2025, amounted to $57.56 million, reflecting a commitment to innovation[27] - Non-GAAP sales and marketing expenses for the nine months ended March 31, 2025, were $273.34 million, demonstrating strategic investment in market presence[27] Cash Flow - Cash flows from operating activities for the nine months ended March 31, 2024, totaled $304,739 thousand, compared to $331,657 thousand in the same period of 2025[24] - Free cash flow for the three months ended March 31, 2024, was $248.54 million, indicating robust cash generation capabilities[28] - Interest income on funds held for clients for the nine months ended March 31, 2025, was $92.57 million, contributing to overall financial performance[28] Share Information - The diluted weighted-average number of common shares for the three months ended March 31, 2024, was 57.05 million, indicating stable share count[27]