Paylocity Announces Fourth Quarter and Full Fiscal Year 2022 Financial Results

Rhea-AI Summary

Paylocity Holding Corporation (Nasdaq: PCTY) announced strong financial results for Q4 and FY 2022, ending June 30, 2022. Q4 total revenue reached $228.9 million, a 37% year-over-year increase, while FY 2022 total revenue was $852.7 million, up 34%. Recurring and other revenue for Q4 was $226.9 million, also up 36%, and FY 2022 recurring revenue totaled $847.7 million. GAAP net income for FY 2022 was $90.8 million or $1.61 per diluted share. The company provided optimistic guidance for FY 2023, projecting total revenue of $1.087 billion to $1.092 billion.

Positive

• Q4 total revenue of $228.9 million, up 37% year-over-year.
• FY 2022 total revenue of $852.7 million, up 34% year-over-year.
• GAAP net income of $90.8 million or $1.61 per diluted share for FY 2022.
• Cash flow from operations increased to $155.1 million for FY 2022.
• Guidance for FY 2023 total revenue between $1.087 billion and $1.092 billion, indicating 28% growth.

Negative

• GAAP operating income decreased from previous periods, raising concerns about profit margins.

• Q4 2022 Recurring & Other Revenue of $226.9 million, up 36% year-over-year
  
• Q4 2022 Total Revenue of $228.9 million, up 37% year-over-year
• FY 2022 Recurring & Other Revenue of $847.7 million, up 34% year-over-year
• FY 2022 Total Revenue of $852.7 million, up 34% year-over-year

SCHAUMBURG, Ill., Aug. 04, 2022 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (Nasdaq: PCTY), a leading provider of cloud-based HCM and payroll software solutions, today announced financial results for the fourth quarter and full fiscal year 2022, which ended June 30, 2022.

“Recurring & other revenue grew 34% in fiscal 22 as our value proposition of providing the most modern software in the industry continues to resonate in the marketplace. Our products focused on the Modern Workforce have all seen significant increases in utilization, including Community, where monthly users has grown by more than 40% and video creation increased by over 80% in fiscal 22,” said Steve Beauchamp, Co-Chief Executive Officer of Paylocity.

Key Recent Achievements

• FY 2022 Recurring & Other Revenue of $847.7 million, up 34% year-over-year.
• FY 2022 Total Revenue of $852.7 million, up 34% year-over-year.
• FY 2022 GAAP net income of $90.8 million and $1.61 per diluted share.
• FY 2022 Adjusted EBITDA, a non-GAAP measure, of $237.8 million or 27.9% of revenue.
• Ending FY 2022 cash and cash equivalents balance of $139.8 million.
  

Fourth Quarter Fiscal 2022 Financial Highlights

Revenue:

• Total revenue was $228.9 million, an increase of 37% from the fourth quarter of fiscal year 2021.
• Recurring & other revenue was $226.9 million, an increase of 36% from the fourth quarter of fiscal year 2021.

Operating Income:

• GAAP operating income was $18.8 million and Non-GAAP operating income was $48.4 million in the fourth quarter of fiscal year 2022.
  

Net Income:

• GAAP net income was $15.1 million or $0.27 per share in the fourth quarter of fiscal year 2022 based on 56.4 million diluted weighted average common shares outstanding.
  

Adjusted EBITDA:

• Adjusted EBITDA, a non-GAAP measure, was $59.3 million in the fourth quarter of fiscal year 2022.
  

Fiscal Year 2022 Financial Highlights

Revenue:

• Total revenue was $852.7 million, an increase of 34% from fiscal year 2021.
• Recurring & other revenue was $847.7 million, representing 99% of total revenue and an increase of 34% from fiscal year 2021 recurring & other revenue.

Operating Income:

• GAAP operating income was $84.6 million and non-GAAP operating income was $196.6 million in fiscal year 2022.
  

Net Income:

• GAAP net income was $90.8 million or $1.61 per share for fiscal year 2022, based on 56.4 million diluted weighted average common shares outstanding.
  

Adjusted EBITDA:

• Adjusted EBITDA, a non-GAAP measure, was $237.8 million for fiscal year 2022.
  

Balance Sheet and Cash Flow:

• Cash and cash equivalents totaled $139.8 million at the end of fiscal year 2022.
• Cash flow from operations for the fiscal year 2022 was $155.1 million compared to $124.9 million for fiscal year 2021.
• Free cash flow, a non-GAAP measure, was $102.5 million or 12% of total revenue for fiscal year 2022.
  

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 August 4, 2022, Paylocity is issuing guidance for the first quarter and full fiscal year 2023 as indicated below.

First Quarter 2023:

• Total revenue is expected to be in the range of $237.3 million to $241.3 million, which represents approximately 32% growth over fiscal year 2022 first quarter total revenue.
• Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $55.0 million to $58.0 million.

Fiscal Year 2023:

• Total revenue is expected to be in the range of $1.087 billion to $1.092 billion, which represents approximately 28% growth over fiscal year 2022 total revenue.
• Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $314.5 million to $318.5 million.

We are unable to reconcile forward-looking non-GAAP Adjusted EBITDA to its directly comparable GAAP financial measure 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 fourth quarter and full fiscal year 2022 results at 4:30 p.m. Central Time today (5:30 Eastern Time). A live audio webcast of the conference call, together with detailed financial information, can be accessed through https://investors.paylocity.com/events-and-presentations where you will be provided with dial in details. 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 HCM and payroll 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 in this release, including Adjusted EBITDA, adjusted gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP net income per share, non-GAAP sales and marketing, non-GAAP total research and development and non-GAAP general and administrative and free cash flow. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We define Adjusted EBITDA as net income (loss) 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 gross profit is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and amortization of capitalized internal-use software costs and certain acquired intangibles. 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 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 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 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 total research and development is adjusted for capitalized internal-use software costs 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. Free cash flow is defined as net cash provided by operating activities less capitalized internal-use software costs, purchase of property and equipment and lease allowances used for tenant improvements. Please note that 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. Management also intends to provide these non-GAAP financial measures as part of the company’s future earnings discussions and, therefore, the inclusion of the non-GAAP financial measures should provide consistency in the company’s financial reporting. 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, among other things, statements about management's estimates regarding future revenues and financial performance 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 possibility that the anticipated synergies of the unified solution through Paylocity’s acquisitions of Blue Marble and Cloudsnap may not be achieved and the combined operations may not be successfully integrated in a timely manner, if at all; general economic conditions in regions in which Paylocity does business, including the ongoing impact of the novel coronavirus disease (“COVID-19”) on the U.S. and the global economy, changes in interest rates, business disruptions, reductions in employment and an increase in business failures that have occurred or may occur in the future; the continuing impact of COVID-19 on Paylocity’s employees and clients and Paylocity’s ability to provide services to its clients and respond to their needs; Paylocity’s ability to retain existing clients and to attract new clients to enter into subscriptions for its services; Paylocity’s ability to sell new products and retain subscriptions for its existing products to its new and existing clients; 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; difficulties in forecasting Paylocity’s tax position; risks related to regulatory, legislative and judicial uncertainty in Paylocity’s markets; continued acceptance of SaaS as an effective method for delivery of payroll and HCM solutions; Paylocity’s ability to protect and defend its intellectual property; 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 6, 2021. 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, including events relating to the COVID-19 pandemic and its severity, duration and ultimate impact, 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.

PAYLOCITY HOLDING CORPORATION
Consolidated Balance Sheets
(in thousands, except per share data)
	June 30,
	2021			2022
Assets
Current assets:
Cash and cash equivalents	$	202,287		$	139,756
Corporate investments		4,456			—
Accounts receivable, net		6,267			15,754
Deferred contract costs		44,230			59,501
Prepaid expenses and other		15,966			28,896
Total current assets before funds held for clients		273,206			243,907
Funds held for clients		1,759,677			3,987,776
Total current assets		2,032,883			4,231,683
Capitalized internal-use software, net		45,018			61,985
Property and equipment, net		59,835			62,839
Operating lease right-of-use assets		43,984			49,210
Intangible assets, net		13,027			45,475
Goodwill		33,650			101,949
Long-term deferred contract costs		170,663			229,067
Long‑term prepaid expenses and other		4,223			7,746
Deferred income tax assets		11,602			19,060
Total assets	$	2,414,885		$	4,809,014
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	4,230		$	8,374
Accrued expenses		103,109			124,384
Total current liabilities before client fund obligations		107,339			132,758
Client fund obligations		1,759,677			3,987,776
Total current liabilities		1,867,016			4,120,534
Long-term operating lease liabilities		67,201			69,119
Other long-term liabilities		1,958			3,681
Deferred income tax liabilities		1,780			2,217
Total liabilities	$	1,937,955		$	4,195,551
Stockholders’ equity:
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2021 and June 30, 2022	$	—		$	—
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2021 and June 30, 2022; 54,594 shares issued and outstanding at June 30, 2021 and 55,190 shares issued and outstanding at June 30, 2022		55			55
Additional paid-in capital		241,718			289,843
Retained earnings		235,091			325,868
Accumulated other comprehensive income (loss)		66			(2,303	)
Total stockholders' equity	$	476,930		$	613,463
Total liabilities and stockholders’ equity	$	2,414,885		$	4,809,014

PAYLOCITY HOLDING CORPORATION
Consolidated Statements of Operations and Comprehensive Income
(in thousands, except per share data)
	Three Months Ended June 30,								Year Ended June 30,
	2021				2022				2021				2022
Revenues:
Recurring and other revenue	$	166,530			$	226,867			$	631,725			$	847,694
Interest income on funds held for clients		921				2,080				3,902				4,957
Total revenues		167,451				228,947				635,627				852,651
Cost of revenues		59,050				77,394				219,298				287,002
Gross profit		108,401				151,553				416,329				565,649
Operating expenses:
Sales and marketing		46,304				59,599				161,808				214,455
Research and development		20,264				28,884				76,707				102,908
General and administrative		32,733				44,244				119,771				163,692
Total operating expenses		99,301				132,727				358,286				481,055
Operating income		9,100				18,826				58,043				84,594
Other expense		(96	)			(197	)			(939	)			(997	)
Income before income taxes		9,004				18,629				57,104				83,597
Income tax expense (benefit)		(2,879	)			3,483				(13,715	)			(7,180	)
Net income	$	11,883			$	15,146			$	70,819			$	90,777
Other comprehensive loss, net of tax		(73	)			(741	)			(609	)			(2,369	)
Comprehensive income	$	11,810			$	14,405			$	70,210			$	88,408
Net income per share:
Basic	$	0.22			$	0.27			$	1.30			$	1.65
Diluted	$	0.21			$	0.27			$	1.26			$	1.61
Weighted-average shares used in computing net income per share:
Basic		54,533				55,157				54,318				55,036
Diluted		56,351				56,432				56,305				56,445

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises for each of the three and twelve months ended June 30 are included in the above line items:

	Three Months Ended June 30,						Year Ended June 30,
	2021			2022			2021			2022
Cost of revenues	$	1,947		$	2,778		$	8,348		$	12,610
Sales and marketing		4,057			5,947			16,425			22,929
Research and development		2,745			4,814			11,022			19,945
General and administrative		7,977			12,704			31,264			45,625
Total stock-based compensation expense and employer payroll taxes related to stock releases and option exercises	$	16,726		$	26,243		$	67,059		$	101,109

PAYLOCITY HOLDING CORPORATION
Consolidated Statements of Cash Flows
(in thousands)
	Year Ended June 30,
	2020				2021				2022
Cash flows from operating activities:
Net income	$	64,455			$	70,819			$	90,777
Adjustments to reconcile net income to net cash provided by operating activities
Stock-based compensation expense		47,493				63,052				96,202
Depreciation and amortization expense		37,913				42,972				50,218
Deferred income tax expense (benefit)		2,754				(13,642	)			(7,180	)
Provision for credit losses		309				316				311
Net accretion of discounts and amortization of premiums on available-for-sale securities		(1,836	)			347				381
Amortization of debt issuance costs		154				171				185
Other		395				632				318
Changes in operating assets and liabilities:
Accounts receivable		(732	)			(1,654	)			(7,605	)
Deferred contract costs		(54,944	)			(56,850	)			(73,263	)
Prepaid expenses and other		(196	)			(4,004	)			(14,767	)
Accounts payable		(806	)			2,394				2,553
Accrued expenses and other		17,696				20,297				16,923
Net cash provided by operating activities		112,655				124,850				155,053
Cash flows from investing activities:
Purchases of available-for-sale securities and other		(400,343	)			—				(433,962	)
Proceeds from sales and maturities of available-for-sale securities		410,593				101,467				116,848
Capitalized internal-use software costs		(25,715	)			(28,594	)			(34,515	)
Purchases of property and equipment		(16,578	)			(9,461	)			(18,069	)
Acquisitions of businesses, net of cash acquired		(16,714	)			(14,992	)			(107,576	)
Other investing activities		—				—				(2,500	)
Net cash provided by (used in) investing activities		(48,757	)			48,420				(479,774	)
Cash flows from financing activities:
Net change in client fund obligations		(67,165	)			432,373				2,228,038
Borrowings under credit facility		100,000				—				50,000
Repayment of credit facility		—				(100,000	)			(50,000	)
Proceeds from exercise of stock options		—				146				—
Proceeds from employee stock purchase plan		8,901				12,214				14,103
Taxes paid related to net share settlement of equity awards		(38,943	)			(64,191	)			(69,761	)
Payment of debt issuance costs		(701	)			(64	)			(87	)
Net cash provided by financing activities		2,092				280,478				2,172,293
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents		65,990				453,748				1,847,572
Cash, cash equivalents and funds held for clients' cash and cash equivalents—beginning of year		1,426,143				1,492,133				1,945,881
Cash, cash equivalents and funds held for clients' cash and cash equivalents—end of year	$	1,492,133			$	1,945,881			$	3,793,453
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Purchases of property and equipment and internal-use software, accrued but not paid	$	164			$	581			$	2,052
Liabilities assumed for acquisitions	$	674			$	281			$	4,581
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	$	438			$	870			$	311
Cash paid (refunds received) for income taxes	$	84			$	(136	)		$	11
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets
Cash and cash equivalents	$	250,851			$	202,287			$	139,756
Funds held for clients' cash and cash equivalents		1,241,282				1,743,594				3,653,697
Total cash, cash equivalents and funds held for clients' cash and cash equivalents	$	1,492,133			$	1,945,881			$	3,793,453

Paylocity Holding Corporation
Reconciliation of GAAP to non-GAAP Financial Measures
(In thousands except per share data)
	Three Months Ended June 30,						Year Ended June 30,
	2021			2022			2021			2022
Reconciliation from Gross profit to Adjusted gross profit:
Gross profit	$	108,401		$	151,553		$	416,329		$	565,649
Amortization of capitalized internal-use software costs and certain acquired intangibles		5,954			8,597			23,227			27,120
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		1,947			2,778			8,348			12,610
Other items (1)		—			27			—			121
Adjusted gross profit	$	116,302		$	162,955		$	447,904		$	605,500

	Three Months Ended June 30,						Year Ended June 30,
	2021			2022			2021			2022
Reconciliation from Operating income to Non-GAAP Operating income:
Operating income	$	9,100		$	18,826		$	58,043		$	84,594
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		16,726			26,243			67,059			101,109
Amortization of acquired intangibles		1,028			2,770			3,840			8,752
Other items (2)		514			561			1,891			2,170
Non-GAAP Operating income	$	27,368		$	48,400		$	130,833		$	196,625

	Three Months Ended June 30,							Year Ended June 30,
	2021				2022			2021				2022
Reconciliation from Net income to Non-GAAP Net income:
Net income	$	11,883			$	15,146		$	70,819			$	90,777
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		16,726				26,243			67,059				101,109
Amortization of acquired intangibles		1,028				2,770			3,840				8,752
Other items (2)		514				561			1,891				2,378
Income tax effect on adjustments (3)		(4,212	)			662			(24,814	)			(19,398	)
Non-GAAP Net income	$	25,939			$	45,382		$	118,795			$	183,618

	Three Months Ended June 30,						Year Ended June 30,
	2021			2022			2021			2022
Calculation of Non-GAAP Net income per share:
Non-GAAP Net income	$	25,939		$	45,382		$	118,795		$	183,618
Diluted weighted-average number of common shares		56,351			56,432			56,305			56,445
Non-GAAP Net income per share	$	0.46		$	0.80		$	2.11		$	3.25

	Three Months Ended June 30,							Year Ended June 30,
	2021				2022			2021				2022
Reconciliation from Net income to Adjusted EBITDA
Net income	$	11,883			$	15,146		$	70,819			$	90,777
Interest expense		107				112			1,002				498
Income tax expense (benefit)		(2,879	)			3,483			(13,715	)			(7,180	)
Depreciation and amortization expense		10,902				13,799			42,972				50,218
EBITDA		20,013				32,540			101,078				134,313
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		16,726				26,243			67,059				101,109
Other items (2)		514				561			1,891				2,378
Adjusted EBITDA	$	37,253			$	59,344		$	170,028			$	237,800

	Three Months Ended June 30,						Year Ended June 30,
	2021			2022			2021			2022
Reconciliation of Non-GAAP sales and marketing:
Sales and marketing	$	46,304		$	59,599		$	161,808		$	214,455
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		4,057			5,947			16,425			22,929
Other items (1)		—			32			—			194
Non-GAAP sales and marketing	$	42,247		$	53,620		$	145,383		$	191,332

	Three Months Ended June 30,						Year Ended June 30,
	2021			2022			2021			2022
Reconciliation of Non-GAAP total research and development:
Research and development	$	20,264		$	28,884		$	76,707		$	102,908
Capitalized internal-use software costs		6,930			8,230			28,594			34,515
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		2,745			4,814			11,022			19,945
Other items (1)		159			204			759			890
Non-GAAP total research and development	$	24,290		$	32,096		$	93,520		$	116,588

	Three Months Ended June 30,						Year Ended June 30,
	2021			2022			2021			2022
Reconciliation of Non-GAAP general and administrative:
General and administrative	$	32,733		$	44,244		$	119,771		$	163,692
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises		7,977			12,704			31,264			45,625
Amortization of acquired intangibles		1,028			917			3,840			6,899
Other items (2)		355			298			1,132			965
Non-GAAP general and administrative	$	23,373		$	30,325		$	83,535		$	110,203

	Year Ended June 30,
	2021				2022
Reconciliation of Free Cash Flow:
Net cash provided by operating activities	$	124,850			$	155,053
Capitalized internal-use software costs		(28,594	)			(34,515	)
Purchases of property and equipment		(9,461	)			(18,069	)
Free Cash Flow	$	86,795			$	102,469

(1) Represents certain nonrecurring acquisition-related costs.

(2) Represents nonrecurring costs including acquisition and other transaction-related costs and lease exit activity.

(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 other transaction-related costs and lease exit activity.

CONTACT:
Ryan Glenn
investors@paylocity.com

FAQ

What were Paylocity's Q4 2022 earnings results?

Paylocity reported total revenue of $228.9 million for Q4 2022, a 37% increase year-over-year.

What is Paylocity's revenue guidance for FY 2023?

Paylocity expects total revenue for FY 2023 to be in the range of $1.087 billion to $1.092 billion, representing approximately 28% growth.

How did Paylocity perform in FY 2022?

Paylocity achieved total revenue of $852.7 million for FY 2022, reflecting a 34% year-over-year increase.

What was Paylocity's net income for FY 2022?

The GAAP net income for Paylocity in FY 2022 was $90.8 million, or $1.61 per diluted share.

How did Paylocity's cash flow change in FY 2022?

Paylocity's cash flow from operations increased to $155.1 million in FY 2022, up from $124.9 million in FY 2021.