Paylocity Announces First Quarter Fiscal Year 2025 Financial Results
Paylocity (PCTY) reported strong Q1 FY2025 results with total revenue reaching $363.0 million, up 14% year-over-year. Recurring & other revenue grew 14% to $333.1 million. The company's GAAP net income increased to $49.6 million ($0.88 per share) compared to $34.5 million ($0.61 per share) in Q1 FY2024. Notable developments include the acquisition of Airbase, a finance and spend management software solution, completed on October 1, 2024. For FY2025, Paylocity expects total revenue between $1.535-1.550 billion, representing approximately 10% growth.
Paylocity (PCTY) ha riportato risultati solidi per il primo trimestre dell'anno fiscale 2025, con il fatturato totale che ha raggiunto 363,0 milioni di dollari, registrando un incremento del 14% rispetto all'anno precedente. Il fatturato ricorrente e altre entrate è aumentato del 14% a 333,1 milioni di dollari. Il reddito netto GAAP dell'azienda è cresciuto a 49,6 milioni di dollari (0,88 dollari per azione) rispetto ai 34,5 milioni di dollari (0,61 dollari per azione) del primo trimestre dell'anno fiscale 2024. Sviluppi significativi includono l'acquisizione di Airbase, una soluzione software per la gestione delle finanze e delle spese, completata il 1° ottobre 2024. Per l'anno fiscale 2025, Paylocity prevede un fatturato totale compreso tra 1,535 e 1,550 miliardi di dollari, rappresentando una crescita di circa il 10%.
Paylocity (PCTY) reportó resultados sólidos en el primer trimestre del año fiscal 2025, con ingresos totales alcanzando 363,0 millones de dólares, un aumento del 14% interanual. Los ingresos recurrentes y otros crecieron un 14% alcanzando 333,1 millones de dólares. La utilidad neta GAAP de la compañía aumentó a 49,6 millones de dólares (0,88 dólares por acción), en comparación con 34,5 millones de dólares (0,61 dólares por acción) en el primer trimestre del año fiscal 2024. Entre los desarrollos notables se incluye la adquisición de Airbase, una solución de software para la gestión financiera y de gastos, completada el 1 de octubre de 2024. Para el año fiscal 2025, Paylocity espera ingresos totales entre 1,535 y 1,550 millones de dólares, lo que representa un crecimiento aproximado del 10%.
Paylocity (PCTY)는 2025 회계연도 1분기에 총 수익이 3억 6천 3백만 달러에 이르는 강력한 실적을 발표했습니다, 전년 대비 14% 증가했습니다. 정기 및 기타 수익은 14% 증가하여 3억 3천 3백 10만 달러에 달했습니다. 회사의 GAAP 순이익은 4960만 달러(주당 0.88달러)로 증가했으며, 이는 2024 회계연도 1분기의 3천 4백 50만 달러(주당 0.61달러)와 비교됩니다. 주목할 만한 발전 중에는 2024년 10월 1일에 완료된 재무 및 지출 관리 소프트웨어 솔루션인 Airbase의 인수가 포함됩니다. 2025 회계연도에는 Paylocity가 1,535억에서 1,550억 달러의 총 수익을 예상하며, 이는 약 10%의 성장을 나타냅니다.
Paylocity (PCTY) a annoncé de solides résultats pour le premier trimestre de l'exercice 2025, avec un chiffre d'affaires total atteignant 363,0 millions de dollars, en hausse de 14 % par rapport à l'année précédente. Les revenus récurrents et autres ont augmenté de 14 % pour atteindre 333,1 millions de dollars. Le revenu net GAAP de l'entreprise a augmenté à 49,6 millions de dollars (0,88 dollar par action), contre 34,5 millions de dollars (0,61 dollar par action) au premier trimestre de l'exercice 2024. Parmi les développements notables figure l'acquisition d'Airbase, une solution logicielle de gestion financière et de dépenses, achevée le 1er octobre 2024. Pour l'exercice 2025, Paylocity anticipe un chiffre d'affaires total compris entre 1,535 et 1,550 milliard de dollars, représentant environ 10 % de croissance.
Paylocity (PCTY) berichtete über starke Ergebnisse im ersten Quartal des Geschäftsjahres 2025, wobei der Gesamtumsatz 363,0 Millionen Dollar erreichte, was einem Anstieg von 14 % gegenüber dem Vorjahr entspricht. Wiederkehrende und andere Einnahmen stiegen um 14 % auf 333,1 Millionen Dollar. Der GAAP-Nettoeinkommen des Unternehmens erhöhte sich auf 49,6 Millionen Dollar (0,88 Dollar pro Aktie) im Vergleich zu 34,5 Millionen Dollar (0,61 Dollar pro Aktie) im ersten Quartal des Geschäftsjahres 2024. Zu den bemerkenswerten Entwicklungen gehört die Übernahme von Airbase, einer Finanz- und Ausgabenmanagement-Softwarelösung, die am 1. Oktober 2024 abgeschlossen wurde. Für das Geschäftsjahr 2025 erwartet Paylocity einen Gesamtumsatz zwischen 1,535 und 1,550 Milliarden Dollar, was einem Wachstum von etwa 10 % entspricht.
- Revenue growth of 14% YoY to $363.0 million
- Net income increased 43.8% to $49.6 million
- EPS growth of 44.3% to $0.88 per share
- Operating income rose 55.6% to $64.1 million
- Cash flow from operations increased 47.3% to $91.5 million
- Growth projection for FY2025 shows deceleration to 10% from current 14%
- Long-term debt increased to $325.0 million due to Airbase acquisition
Insights
Paylocity delivered a solid Q1 FY2025 with notable financial improvements. Total revenue reached
The strategic acquisition of Airbase expands their addressable market into finance and spend management. However, this required
The Airbase acquisition marks a strategic pivot beyond HCM into broader financial operations software. This expansion into spend management creates significant cross-selling opportunities within Paylocity's existing client base and positions them to capture larger market share in the growing financial operations software segment. The new Headcount Planning solution also addresses a critical need for organizations managing dynamic workforce changes.
However, the
- Q1 2025 Recurring & Other Revenue of
$333.1 million , up14% year-over-year - Q1 2025 Total Revenue of
$363.0 million , up14% year-over-year - Acquisition of Airbase, a modern finance and spend management software solution, completed on October 1, 2024
SCHAUMBURG, Ill., Oct. 30, 2024 (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 first quarter of fiscal year 2025, which ended September 30, 2024.
“Fiscal 25 is off to a strong start, with recurring & other revenue and total revenue growth of
First Quarter Fiscal 2025 Financial Highlights
Revenue:
- Total revenue was
$363.0 million , an increase of14% from the first quarter of fiscal year 2024. - Recurring & other revenue was
$333.1 million , an increase of14% from the first quarter of fiscal year 2024.
Operating Income:
- GAAP operating income was
$64.1 million and non-GAAP operating income was$104.9 million in the first quarter of fiscal year 2025 compared to GAAP operating income of$41.2 million and non-GAAP operating income of$86.9 million in the first quarter of fiscal year 2024.
Net Income:
- GAAP net income was
$49.6 million or$0.88 per share in the first quarter of fiscal year 2025 based on 56.3 million diluted weighted average common shares outstanding compared to$34.5 million or$0.61 per share in the first quarter of fiscal year 2024 based on 56.9 million diluted weighted average common shares outstanding.
Adjusted EBITDA:
- Adjusted EBITDA, a non-GAAP measure, was
$129.0 million in the first quarter of fiscal year 2025 compared to$104.9 million in the first quarter of fiscal year 2024. - Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, was
$99.2 million in the first quarter of fiscal year 2025 as compared to$79.0 million in the first quarter of fiscal year 2024.
Balance Sheet and Cash Flow:
- Cash and cash equivalents totaled
$778.5 million as of the first quarter of fiscal year 2025 which includes$325.0 million in proceeds from our credit facility as detailed below. - Long-term debt totaled
$325.0 million as of the first quarter of fiscal year 2025 which we borrowed under our credit facility to fund the acquisition of Airbase on October 1, 2024. - Cash flow from operations for the first quarter of fiscal year 2025 was
$91.5 million compared to$62.1 million for the first quarter of fiscal year 2024.
A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release, including the accompanying tables. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Business Outlook
Based on information available as of October 30, 2024, Paylocity is issuing guidance for the second quarter and full fiscal year 2025 as indicated below.
Second Quarter 2025:
- Recurring and other revenue is expected to be in the range of
$337.5 million to$342.5 million , which represents approximately14% growth over fiscal year 2024 second quarter recurring and other revenue. - Total revenue is expected to be in the range of
$364.0 million to$369.0 million , which represents approximately12% growth over fiscal year 2024 second quarter total revenue. - Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of
$116.0 million to$120.0 million . - Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, is expected to be in the range of
$89.5 million to$93.5 million .
Fiscal Year 2025:
- Recurring and other revenue is expected to be in the range of
$1.42 7 billion to$1.44 2 billion, which represents approximately12% growth over fiscal year 2024 recurring and other revenue. - Total revenue is expected to be in the range of
$1.53 5 billion to$1.55 0 billion, which represents approximately10% growth over fiscal year 2024 total revenue. - Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of
$530.0 million to$540.0 million . - Adjusted EBITDA excluding interest income on funds held for clients, a non-GAAP measure, is expected to be in the range of
$422.0 million to$432.0 million .
We are unable to reconcile the forward-looking non-GAAP measures set forth above to their directly comparable GAAP financial measures because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort.
Conference Call Details
Paylocity will host a conference call to discuss its first quarter fiscal year 2025 results at 4:30 p.m. Central Time today (5:30 p.m. Eastern Time). A live audio webcast of the conference call along with detailed financial information can be accessed through https://investors.paylocity.com/events-and-presentations where dial in details are provided. A replay of the call will be available and archived via webcast at https://investors.paylocity.com/.
About Paylocity
Paylocity is a leading provider of cloud-based HR, payroll, and spend management software solutions headquartered in Schaumburg, IL. Founded in 1997 and publicly traded since 2014, Paylocity offers an intuitive, easy-to-use product suite that helps businesses tackle today’s challenges while moving them toward the promise of tomorrow. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help people achieve their best through automation, data-driven insights, and engagement. For more information, visit www.paylocity.com.
Non-GAAP Financial Measures
The company uses certain non-GAAP financial measures when reporting its financial results, including Adjusted EBITDA, Adjusted EBITDA margin, adjusted gross profit, adjusted gross profit margin, non-GAAP operating income, non-GAAP net income, non-GAAP net income per share, non-GAAP sales and marketing and non-GAAP sales and marketing margin, non-GAAP total research and development and non-GAAP total research and development margin, non-GAAP general and administrative and non-GAAP general and administrative margin, free cash flow and free cash flow margin, certain of which are included in this release. We define Adjusted EBITDA as net income before interest expense, income tax expense (benefit), and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described later in this release. Adjusted EBITDA excluding interest income on funds held for clients is calculated in the same manner as Adjusted EBITDA and is further adjusted to eliminate interest income on funds held for clients. We calculate Adjusted EBITDA margin as Adjusted EBITDA divided by total revenues. Adjusted EBITDA margin excluding interest income on funds held for clients is Adjusted EBITDA excluding interest income on funds held for clients divided by recurring and other revenue. Adjusted gross profit is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of capitalized internal-use software costs and certain acquired intangibles and other items as described later in this release. Adjusted gross profit margin is calculated as adjusted gross profit as described in the preceding sentence divided by total revenues. Non-GAAP operating income is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described later in this release. Non-GAAP net income and non-GAAP net income per share are adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described later in this release, including the income tax effect on these items. Non-GAAP sales and marketing expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described later in this release. Non-GAAP sales and marketing margin is calculated by dividing non-GAAP sales and marketing by total revenues. Non-GAAP total research and development is adjusted for capitalized internal-use software costs paid and to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described later in this release. Non-GAAP total research and development margin is calculated by dividing non-GAAP total research and development by total revenues. Non-GAAP general and administrative expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of certain acquired intangibles and other items as described later in this release. Non-GAAP general and administrative margin is calculated by dividing non-GAAP general and administrative expense by total revenues. Free cash flow is defined as net cash provided by operating activities less capitalized internal-use software costs and purchases of property and equipment. Free cash flow margin is calculated by dividing free cash flow by total revenues. Free cash flow excluding interest income on funds held for clients is defined in the same manner as free cash flow but also excludes interest income on funds held for clients. Free cash flow margin excluding interest income on funds held for clients is calculated by dividing free cash flow excluding interest income on funds held for clients by recurring and other revenue. Other companies may define their non-GAAP financial measures differently than we do. Management presents certain non-GAAP financial measures in this release because it considers them to be important supplemental measures of performance. Management uses these non-GAAP financial measures for planning purposes, including analysis of the company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company's financial and operational performance. Non-GAAP financial measures have limitations as an analytical tool. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures provided in this release.
Safe Harbor/Forward Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding Paylocity’s future operations, ability to scale its business, future financial position and performance, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “seek” and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include statements about management's estimates regarding future revenues and financial performance, expectations regarding the benefits of the Airbase acquisition, the expected functionality and acceptance in the marketplace of product releases, and other statements about management’s beliefs, intentions or goals. Paylocity may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on Paylocity’s forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to the general economic conditions in regions in which Paylocity does business, changes in interest rates, business disruptions, reductions in employment and an increase in business failures that have occurred or may occur in the future; Paylocity’s ability to leverage AI Assist and other forms of artificial intelligence and machine learning in its technology, which may be constrained by current and future laws, regulations, interpretive positions or standards governing new and evolving technologies and ethical considerations that could restrict or impose burdensome and costly requirements on its ability to continue to leverage data in innovative ways; Paylocity’s ability to retain existing clients and to attract new clients to enter into subscriptions for its services; the challenges associated with a growing company’s ability to effectively service clients in a dynamic and competitive market; challenges associated with expanding and evolving a sales organization to effectively address new geographies and products and services; challenges related to cybersecurity threats and evolving cybersecurity regulations; Paylocity’s reliance on and ability to expand its referral network of third parties; Paylocity’s reliance on third party payroll partners in foreign jurisdictions in its Blue Marble business; difficulties associated with accurately forecasting revenue and appropriately planning expenses; challenges with managing growth effectively; risks related to regulatory, legislative and judicial uncertainty in Paylocity’s markets; Paylocity’s ability to protect and defend its intellectual property and its use of open source software in its products; the risk that Paylocity’s security measures are compromised or a threat actor gains unauthorized access to customer data; unexpected events in the market for Paylocity’s solutions; changes in the competitive environment in Paylocity’s industry and the markets in which it operates; adverse changes in general economic or market conditions; changes in the employment rates of Paylocity’s clients and the resultant impact on revenue; the possibility that Paylocity may be adversely affected by other economic, business, and/or competitive factors; and other risks and potential factors that could affect Paylocity’s business and financial results identified in Paylocity’s filings with the Securities and Exchange Commission (the “SEC”), including its 10-K filed with the SEC on August 2, 2024. Additional information will also be set forth in Paylocity’s future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that Paylocity makes with the SEC. These forward-looking statements represent Paylocity’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Paylocity disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.
CONTACT:
Ryan Glenn
investors@paylocity.com
www.paylocity.com
PAYLOCITY HOLDING CORPORATION Unaudited Consolidated Balance Sheets (in thousands, except per share data) | |||||||
June 30, 2024 | September 30, 2024 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 401,811 | $ | 778,549 | |||
Accounts receivable, net | 32,997 | 34,317 | |||||
Deferred contract costs | 97,859 | 102,413 | |||||
Prepaid expenses and other | 39,765 | 40,583 | |||||
Total current assets before funds held for clients | 572,432 | 955,862 | |||||
Funds held for clients | 2,952,060 | 2,340,411 | |||||
Total current assets | 3,524,492 | 3,296,273 | |||||
Capitalized internal-use software, net | 116,412 | 121,932 | |||||
Property and equipment, net | 60,640 | 57,945 | |||||
Operating lease right-of-use assets | 33,792 | 33,190 | |||||
Intangible assets, net | 28,291 | 25,744 | |||||
Goodwill | 108,937 | 108,863 | |||||
Long-term deferred contract costs | 348,003 | 357,159 | |||||
Long‑term prepaid expenses and other | 7,077 | 6,508 | |||||
Deferred income tax assets | 17,816 | 17,167 | |||||
Total assets | $ | 4,245,460 | $ | 4,024,781 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 8,638 | $ | 16,039 | |||
Accrued expenses | 158,311 | 156,001 | |||||
Total current liabilities before client fund obligations | 166,949 | 172,040 | |||||
Client fund obligations | 2,950,411 | 2,328,665 | |||||
Total current liabilities | 3,117,360 | 2,500,705 | |||||
Long-term debt | — | 325,000 | |||||
Long-term operating lease liabilities | 46,814 | 45,661 | |||||
Other long-term liabilities | 6,398 | 6,493 | |||||
Deferred income tax liabilities | 41,824 | 41,010 | |||||
Total liabilities | $ | 3,212,396 | $ | 2,918,869 | |||
Stockholders’ equity: | |||||||
Preferred stock, | $ | — | $ | — | |||
Common stock, | 56 | 56 | |||||
Additional paid-in capital | 360,488 | 376,952 | |||||
Retained earnings | 673,456 | 723,029 | |||||
Accumulated other comprehensive income (loss) | (936 | ) | 5,875 | ||||
Total stockholders' equity | $ | 1,033,064 | $ | 1,105,912 | |||
Total liabilities and stockholders’ equity | $ | 4,245,460 | $ | 4,024,781 |
PAYLOCITY HOLDING CORPORATION Unaudited Consolidated Statements of Operations and Comprehensive Income (in thousands, except per share data) | |||||||
Three Months Ended September 30, | |||||||
2023 | 2024 | ||||||
Revenues: | |||||||
Recurring and other revenue | $ | 291,685 | $ | 333,105 | |||
Interest income on funds held for clients | 25,901 | 29,851 | |||||
Total revenues | 317,586 | 362,956 | |||||
Cost of revenues | 101,467 | 114,960 | |||||
Gross profit | 216,119 | 247,996 | |||||
Operating expenses: | |||||||
Sales and marketing | 80,403 | 88,431 | |||||
Research and development | 44,605 | 47,260 | |||||
General and administrative | 49,922 | 48,161 | |||||
Total operating expenses | 174,930 | 183,852 | |||||
Operating income | 41,189 | 64,144 | |||||
Other income | 3,225 | 4,742 | |||||
Income before income taxes | 44,414 | 68,886 | |||||
Income tax expense | 9,897 | 19,313 | |||||
Net income | $ | 34,517 | $ | 49,573 | |||
Other comprehensive income, net of tax | 120 | 6,811 | |||||
Comprehensive income | $ | 34,637 | $ | 56,384 | |||
Net income per share: | |||||||
Basic | $ | 0.62 | $ | 0.89 | |||
Diluted | $ | 0.61 | $ | 0.88 | |||
Weighted-average shares used in computing net income per share: | |||||||
Basic | 56,037 | 55,640 | |||||
Diluted | 56,881 | 56,266 | |||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises for each of the three months ended September 30 are included in the above line items:
Three Months Ended September 30, | |||||||
2023 | 2024 | ||||||
Cost of revenues | $ | 5,602 | $ | 4,923 | |||
Sales and marketing | 9,871 | 9,752 | |||||
Research and development | 10,870 | 10,311 | |||||
General and administrative | 15,633 | 10,674 | |||||
Total stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | $ | 41,976 | $ | 35,660 |
PAYLOCITY HOLDING CORPORATION Unaudited Consolidated Statements of Cash Flows (in thousands) | |||||||
Three Months Ended September 30, | |||||||
2023 | 2024 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 34,517 | $ | 49,573 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Stock-based compensation expense | 39,005 | 33,540 | |||||
Depreciation and amortization expense | 17,121 | 21,552 | |||||
Deferred income tax expense (benefit) | 5,391 | (2,556 | ) | ||||
Provision for credit losses | 181 | 221 | |||||
Net accretion of discounts on available-for-sale securities | (1,392 | ) | (662 | ) | |||
Other | 189 | 304 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (4,801 | ) | (903 | ) | |||
Deferred contract costs | (14,985 | ) | (13,081 | ) | |||
Prepaid expenses and other | (1,669 | ) | (773 | ) | |||
Accounts payable | 1,569 | 7,885 | |||||
Accrued expenses and other | (12,984 | ) | (3,645 | ) | |||
Net cash provided by operating activities | 62,142 | 91,455 | |||||
Cash flows from investing activities: | |||||||
Purchases of available-for-sale securities | (92,567 | ) | (20,174 | ) | |||
Proceeds from sales and maturities of available-for-sale securities | 101,216 | 25,022 | |||||
Capitalized internal-use software costs | (14,193 | ) | (15,210 | ) | |||
Purchases of property and equipment | (3,454 | ) | (2,328 | ) | |||
Other investing activities | (406 | ) | (638 | ) | |||
Net cash used in investing activities | (9,404 | ) | (13,328 | ) | |||
Cash flows from financing activities: | |||||||
Net change in client fund obligations | (93,566 | ) | (621,746 | ) | |||
Borrowings under credit facility | — | 325,000 | |||||
Taxes paid related to net share settlement of equity awards | (28,825 | ) | (21,536 | ) | |||
Other financing activities | (11 | ) | (11 | ) | |||
Net cash used in financing activities | (122,402 | ) | (318,293 | ) | |||
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents | (69,664 | ) | (240,166 | ) | |||
Cash, cash equivalents and funds held for clients' cash and cash equivalents—beginning of period | 2,421,312 | 2,845,669 | |||||
Cash, cash equivalents and funds held for clients' cash and cash equivalents—end of period | $ | 2,351,648 | $ | 2,605,503 | |||
Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||||||
Purchases of property and equipment and capitalized internal-use software, accrued but not paid | $ | 1,803 | $ | 960 | |||
Supplemental Disclosure of Cash Flow Information | |||||||
Cash paid for interest | $ | 124 | $ | 123 | |||
Cash paid for income taxes | $ | 6,207 | $ | 6,194 | |||
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets | |||||||
Cash and cash equivalents | $ | 305,031 | $ | 778,549 | |||
Funds held for clients' cash and cash equivalents | 2,046,617 | 1,826,954 | |||||
Total cash, cash equivalents and funds held for clients' cash and cash equivalents | $ | 2,351,648 | $ | 2,605,503 |
Paylocity Holding Corporation Reconciliation of GAAP to non-GAAP Financial Measures (In thousands except per share data) | |||||||
Three Months Ended September 30, | |||||||
2023 | 2024 | ||||||
Reconciliation from Gross profit to Adjusted gross profit: | |||||||
Gross profit | $ | 216,119 | $ | 247,996 | |||
Amortization of capitalized internal-use software costs | 9,535 | 13,777 | |||||
Amortization of certain acquired intangibles | 1,854 | 2,064 | |||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 5,602 | 4,923 | |||||
Other items (1) | — | (78 | ) | ||||
Adjusted gross profit | $ | 233,110 | $ | 268,682 |
Three Months Ended September 30, | |||||||
2023 | 2024 | ||||||
Reconciliation from Operating income to Non-GAAP Operating income: | |||||||
Operating income | $ | 41,189 | $ | 64,144 | |||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 41,976 | 35,660 | |||||
Amortization of acquired intangibles | 2,536 | 2,547 | |||||
Other items (2) | 1,185 | 2,528 | |||||
Non-GAAP Operating income | $ | 86,886 | $ | 104,879 |
Three Months Ended September 30, | |||||||
2023 | 2024 | ||||||
Reconciliation from Net income to Non-GAAP Net income: | |||||||
Net income | $ | 34,517 | $ | 49,573 | |||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 41,976 | 35,660 | |||||
Amortization of acquired intangibles | 2,536 | 2,547 | |||||
Other items (2) | 1,185 | 2,528 | |||||
Income tax effect on adjustments (3) | (830 | ) | 3,308 | ||||
Non-GAAP Net income | $ | 79,384 | $ | 93,616 |
Three Months Ended September 30, | |||||||
2023 | 2024 | ||||||
Calculation of Non-GAAP Net income per share: | |||||||
Non-GAAP Net income | $ | 79,384 | $ | 93,616 | |||
Diluted weighted-average number of common shares | 56,881 | 56,266 | |||||
Non-GAAP Net income per share | $ | 1.40 | $ | 1.66 |
Three Months Ended September 30, | |||||||
2023 | 2024 | ||||||
Reconciliation from Net income to Adjusted EBITDA and Adjusted EBITDA excluding interest income on funds held for clients | |||||||
Net income | $ | 34,517 | $ | 49,573 | |||
Interest expense | 190 | 400 | |||||
Income tax expense | 9,897 | 19,313 | |||||
Depreciation and amortization expense | 17,121 | 21,552 | |||||
EBITDA | 61,725 | 90,838 | |||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 41,976 | 35,660 | |||||
Other items (2) | 1,185 | 2,528 | |||||
Adjusted EBITDA | $ | 104,886 | $ | 129,026 | |||
Interest income on funds held for clients | $ | (25,901 | ) | $ | (29,851 | ) | |
Adjusted EBITDA excluding interest income on funds held for clients | $ | 78,985 | $ | 99,175 |
Three Months Ended September 30, | |||||||
2023 | 2024 | ||||||
Reconciliation of Non-GAAP sales and marketing: | |||||||
Sales and marketing | $ | 80,403 | $ | 88,431 | |||
Less: Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 9,871 | 9,752 | |||||
Less: Other items (1) | — | 109 | |||||
Non-GAAP sales and marketing | $ | 70,532 | $ | 78,570 |
Three Months Ended September 30, | |||||||
2023 | 2024 | ||||||
Reconciliation of Non-GAAP total research and development: | |||||||
Research and development | $ | 44,605 | $ | 47,260 | |||
Add: Capitalized internal-use software costs | 14,193 | 15,210 | |||||
Less: Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 10,870 | 10,311 | |||||
Less: Other items (4) | 222 | 121 | |||||
Non-GAAP total research and development | $ | 47,706 | $ | 52,038 |
Three Months Ended September 30, | |||||||
2023 | 2024 | ||||||
Reconciliation of Non-GAAP general and administrative: | |||||||
General and administrative | $ | 49,922 | $ | 48,161 | |||
Less: Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 15,633 | 10,674 | |||||
Less: Amortization of certain acquired intangibles | 682 | 483 | |||||
Less: Other items (4) | 963 | 2,376 | |||||
Non-GAAP general and administrative | $ | 32,644 | $ | 34,628 |
Three Months Ended September 30, | |||||||
2023 | 2024 | ||||||
Reconciliation of Free Cash Flow and Free cash flow excluding interest income on funds held for clients: | |||||||
Net cash provided by operating activities | $ | 62,142 | $ | 91,455 | |||
Capitalized internal-use software costs | (14,193 | ) | (15,210 | ) | |||
Purchases of property and equipment | (3,454 | ) | (2,328 | ) | |||
Free Cash Flow | $ | 44,495 | $ | 73,917 | |||
Interest income on funds held for clients | $ | (25,901 | ) | $ | (29,851 | ) | |
Free cash flow excluding interest income on funds held for clients | $ | 18,594 | $ | 44,066 |
(1) Represents severance cost adjustments related to certain roles that have been eliminated. We exclude one-off severance costs that we incur as part of the normal course of our business operations.
(2) Represents acquisition and nonrecurring transaction-related costs and severance costs related to certain roles that have been eliminated. We exclude one-off severance costs that we incur as part of the normal course of our business operations.
(3) Includes the income tax effect on non-GAAP net income adjustments related to stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, amortization of acquired intangibles and other items, which include acquisition and nonrecurring transaction-related costs and severance costs related to certain roles that have been eliminated. We exclude one-off severance costs that we incur as part of the normal course of our business operations.
(4) Represents acquisition and nonrecurring transaction-related costs.
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