• Q2 2023 Recurring & Other Revenue of $256.4 million, up 31% year-over-year


• Q2 2023 Total Revenue of $273.0 million, up 39% year-over-year

SCHAUMBURG, Ill., Feb. 02, 2023 -- Paylocity Holding Corporation (Nasdaq: PCTY), a leading provider of cloud-based HCM and payroll software solutions, today announced financial results for the second quarter of fiscal year 2023, which ended December 31, 2022.

"Our differentiated value proposition of providing the most modern software in the industry, coupled with continued strong sales execution, helped drive recurring and other revenue growth of 31% and total revenue growth of 39% in the second quarter. Our continued strong momentum is the result of ongoing investments in product innovation, including leveraging last year’s acquisition of Cloudsnap, a flexible, low-code solution for integrating disparate business applications. We have fully integrated Cloudsnap into the Paylocity suite and are leveraging this technology to provide the most modern software in the industry to accelerate the rollout of new integrations and use-cases to better serve our clients and their employees. Additionally, we continue to see strong attach rates in our modern workforce solutions, as clients realize the value in creating a unique employee experience and engaging culture for remote, hybrid and in-office teams,” said Steve Beauchamp, Co-Chief Executive Officer of Paylocity.

Second Quarter Fiscal 2023 Financial Highlights

Revenue:

• Total revenue was $273.0 million, an increase of 39% from the second quarter of fiscal year 2022.


• Recurring & other revenue was $256.4 million, an increase of 31% from the second quarter of fiscal year 2022.

Operating Income:

• GAAP operating income was $18.2 million and Non-GAAP operating income was $65.1 million in the second quarter of fiscal year 2023.

Net Income:

• GAAP net income was $15.6 million or $0.28 per share in the second quarter of fiscal year 2023 based on 56.5 million diluted weighted average common shares outstanding.

Adjusted EBITDA:

• Adjusted EBITDA, a non-GAAP measure, was $77.4 million in the second quarter of fiscal year 2023.

Balance Sheet and Cash Flow:

• Cash and cash equivalents totaled $120.1 million as of the second quarter of fiscal year 2023.


• Cash flow from operations for the second quarter of fiscal year 2023 was $62.4 million.


• As of December 31, 2022, Paylocity had no long-term debt and had not drawn on its credit facility.

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 February 2, 2023, Paylocity is issuing guidance for the third quarter and full fiscal year 2023 as indicated below.

Third Quarter 2023:

• Total revenue is expected to be in the range of $330.5 million to $334.5 million, which represents approximately 35% growth over fiscal 2022 third quarter total revenue.


• Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $121.5 million to $124.5 million.

Fiscal Year 2023:

• Total revenue is expected to be in the range of $1.156 billion to $1.161 billion, which represents approximately 36% growth over fiscal year 2022 total revenue.


• Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $358.5 million to $362.5 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 second quarter fiscal year 2023 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/.

Source Paylocity