Paylocity Holding Corporation (Nasdaq: PCTY), a leading provider of cloud-based HCM and payroll software solutions, today announced financial results for the third quarter of fiscal year 2023, which ended March 31, 2023.

"Our overall momentum continued in the third quarter, with Q3 recurring & other revenue growth of 28% and total revenue growth of 38%, as our differentiated value proposition of providing the most modern software in the industry continues to resonate in the marketplace. We continued to build upon our unique value proposition with the recent release of AI Assist, the HCM industry’s first integration of generative AI. Leveraging an integration with Open AI – the developer of ChatGPT – AI Assist is designed to help our clients more easily and effectively communicate and engage with their employees. Additionally, our commitment to product development continues to be recognized, with Paylocity recently placing #1 overall in G2’s Best HR Products list and ranking inside of G2’s Top 25 Global Software companies. Similarly, the strong culture at Paylocity was recognized externally as we received Forbes’s 2023 Best Employers for Diversity award for the second consecutive year,” said Steve Beauchamp, Co-Chief Executive Officer of Paylocity.

Revenue:

• Total revenue was $339.9 million, an increase of 38% from the third quarter of fiscal year 2022.


• Recurring & other revenue was $314.2 million, an increase of 28% from the third quarter of fiscal year 2022.

Operating Income:

• GAAP operating income was $80.4 million and Non-GAAP operating income was $116.7 million in the third quarter of fiscal year 2023.

Net Income:

• GAAP net income was $57.6 million or $1.02 per share in the third quarter of fiscal year 2023 based on 56.6 million diluted weighted average common shares outstanding.

Adjusted EBITDA:

• Adjusted EBITDA, a non-GAAP measure, was $130.7 million in the third quarter of fiscal year 2023.

Balance Sheet and Cash Flow:

• Cash and cash equivalents totaled $233.7 million as of the third quarter of fiscal year 2023.


• Cash flow from operations for the first nine months of fiscal year 2023 was $206.1 million.


• As of March 31, 2023, 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 May 4, 2023, Paylocity is issuing guidance for the fourth quarter and full fiscal year 2023 as indicated below.

Fourth Quarter 2023:

• Total revenue is expected to be in the range of $299.2 million to $303.2 million, which represents approximately 32% growth over fiscal year 2022 fourth quarter total revenue.


• Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $93.5 million to $96.5 million.

Fiscal Year 2023:

• Total revenue is expected to be in the range of $1.165 billion to $1.169 billion, which represents approximately 37% growth over fiscal year 2022 total revenue.


• Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $368.1 million to $371.1 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.

Source from: Paylocity Announces Third Quarter Fiscal Year 2023 Financial Results | Paylocity