SCHAUMBURG, Ill., Aug. 03, 2023 -- Paylocity Holding Corporation (Nasdaq: PCTY), a leading provider of cloud-based HCM and payroll software solutions, announced financial results for the fourth quarter and full fiscal year 2023, which ended June 30, 2023.

“Recurring & other revenue grew 30% in fiscal 23 as we continue to provide the most modern software in the industry. Our sustained investment in product development allows us to continue to expand our product suite, evidenced by the recent announcement of several new premium offerings and feature enhancements including Advanced Scheduling, Learning Management, and Market Pay. We’re also proud to see our commitment to ongoing product innovation recognized in the marketplace with Paylocity recently being named as a Leader in NelsonHall’s 2023 Next-Generation HCM Technology NEAT report for both the Small / Medium and Mid / Large market segments,” said Steve Beauchamp, Co-Chief Executive Officer of Paylocity.

Key Recent Achievements

FY 2023 Recurring & Other Revenue of $1,098.0 million, up 30% year-over-year.

FY 2023 Total Revenue of $1,174.6 million, up 38% year-over-year.

FY 2023 GAAP net income increased 55% to $140.8 million from $90.8 million in FY 2022 and $2.49 per diluted share from $1.61 in FY 2022.

FY 2023 Adjusted EBITDA, a non-GAAP measure, increased 58% to $375.2 million from $237.8 million in FY 2022, or 31.9% of total revenue compared to 27.9% in FY 2022.

FY 2023 Net cash provided by operating activities of $282.7 million.

FY 2023 Free Cash Flow, a non-GAAP measure, of $215.8 million or 18.4% of total revenue.

Ending FY 2023 cash and cash equivalents balance of $288.8 million.

Fourth Quarter Fiscal 2023 Financial Highlights

Revenue:

Total revenue was $308.5 million, an increase of 35% from the fourth quarter of fiscal year 2022.

Recurring & other revenue was $282.0 million, an increase of 24% from the fourth quarter of fiscal year 2022.

Operating Income:

GAAP operating income was $49.4 million and Non-GAAP operating income was $84.0 million in the fourth quarter of fiscal year 2023.

Net Income:

GAAP net income was $37.3 million or $0.66 per share in the fourth quarter of fiscal year 2023 based on 56.7 million diluted weighted average common shares outstanding.

Adjusted EBITDA:

Adjusted EBITDA, a non-GAAP measure, was $100.6 million in the fourth quarter of fiscal year 2023.

Fiscal Year 2023 Financial Highlights

Revenue:

Total revenue was $1,174.6 million, an increase of 38% from fiscal year 2022.

Recurring & other revenue was $1,098.0 million, representing 93% of total revenue and an increase of 30% from fiscal year 2022 recurring & other revenue.

Operating Income:

GAAP operating income was $155.0 million and non-GAAP operating income was $320.9 million in fiscal year 2023.

Net Income:

GAAP net income was $140.8 million or $2.49 per share for fiscal year 2023, based on 56.6 million diluted weighted average common shares outstanding.

Adjusted EBITDA:

Adjusted EBITDA, a non-GAAP measure, was $375.2 million for fiscal year 2023.

Balance Sheet and Cash Flow:

Cash and cash equivalents totaled $288.8 million at the end of fiscal year 2023.

Net cash provided by operating activities for the fiscal year 2023 was $282.7 million compared to $155.1 million for fiscal year 2022.

Free cash flow, a non-GAAP measure, was $215.8 million or 18.4% of total revenue for fiscal year 2023.

Business Outlook

Based on information available as of August 3, 2023, Paylocity is issuing guidance for the first quarter and full fiscal year 2024 as indicated below.

First Quarter 2024:

Total revenue is expected to be in the range of $314.1 million to $318.1 million, which represents approximately 25% growth over fiscal year 2023 first quarter total revenue.

Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $89.5 million to $92.5 million.

Fiscal Year 2024:

Total revenue is expected to be in the range of $1.405 billion to $1.410 billion, which represents approximately 20% growth over fiscal year 2023 total revenue.

Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $464.0 million to $468.0 million.

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.

SOURCE Paylocity