NASDAQ$PCTY

Paylocity Holding Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported strong revenue growth driven by product innovation and sales execution.

Paylocity announced its Q2 2023 financial results, with a 39% increase in total revenue and a 31% increase in recurring and other revenue compared to the previous year. The company's growth was attributed to its modern software, strong sales execution, and investments in product innovation, including the integration of Cloudsnap.

  • Total revenue increased by 39% year-over-year.
  • Recurring and other revenue grew by 31% year-over-year.
  • GAAP operating income was $18.2 million.
  • Adjusted EBITDA reached $77.4 million.

Headline financials

Total Revenue

$273M

Previous: $196M+39.3%
EPS (adj)

$1.12

Previous: $0.64+75.0%
Adjusted EBITDA

$77.4M

Previous: $46.6M+66.1%
Capital Expenditures

-$6.66M

Previous: -$10.5M+36.7%
Free Cash Flow

$8.94M

Previous: -$675K+1424.0%
Net Income

$15.6M

Previous: $9.85M+58.3%
Operating Income

$18.2M

Previous: $8.14M+123.7%
Gross Profit

$183M

Previous: $125M+46.1%
Cash & Equivalents

$120M

Previous: $84.1M+42.8%
Total Assets

$3.94B

Previous: $2.59B+52.1%
Stock-Based Comp

$43.6M

Previous: $26.2M+66.0%

Revenue & EPS history

Paylocity · Revenue · Quarterly

$273M

Q2 2023+39.3%vs Q2 2022
Beat estimate in 15 of 15 quarters(100%)
ActualEstimate

Revenue by segment

Paylocity · $256M total across 1 segment · Q2 2023

  • Recurring & Other Revenue
    $256M+31.5%

Forward guidance

Paylocity provided guidance for Q3 2023 and full fiscal year 2023.

Tailwinds

  • Total revenue for Q3 2023 is expected to grow approximately 35% over fiscal 2022.
  • Q3 2023 total revenue is expected to be in the range of $330.5 million to $334.5 million.
  • Adjusted EBITDA for Q3 2023 is expected to be in the range of $121.5 million to $124.5 million.
  • Total revenue for fiscal year 2023 is expected to grow approximately 36% over fiscal year 2022.
  • Total revenue for fiscal year 2023 is expected to be in the range of $1.156 billion to $1.161 billion.

Headwinds

  • The company is unable to reconcile forward-looking non-GAAP Adjusted EBITDA to its directly comparable GAAP financial measure.
  • Reconciliation requires information that is unavailable at this time.
  • Obtaining the necessary information would require unreasonable effort.
  • General economic conditions in regions in which Paylocity does business.
  • Changes in interest rates.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+1.5%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+2.0%

Avg return

30 days after

49%

26 / 53 earnings

Positive

+20.2%

Q3 2015

Best reaction

-13.3%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+4.0%-4.4%+4.1%
Q2 2026-7.2%-15.2%-5.5%
Q1 2026+4.4%+2.1%+5.2%
Q3 2025-3.7%-5.4%-1.7%
Q2 2025-2.9%+1.0%-8.0%
Q1 2025+4.9%+8.7%+17.9%
Q4 2024+5.3%+1.3%+7.5%
Q3 2024+12.3%+13.3%-4.7%
Q2 2024-1.3%-1.3%-2.7%
Q1 2024-11.5%-9.2%-2.6%
Q4 2023-3.1%-5.8%-4.3%
Q3 2023-7.4%-9.4%-3.1%
Q2 2023-0.2%+6.1%-13.0%
Q1 2023-4.1%-3.8%+4.3%
Q4 2022+13.3%+15.9%+4.6%
Q3 2022-13.3%-16.6%-13.0%
Q2 2022+7.6%+3.5%-4.0%
Q1 2022-6.4%-7.1%-18.5%
Q4 2021+12.8%+15.2%+26.9%
Q3 2021-2.3%-5.8%-3.5%
Q2 2021-0.7%+4.4%-14.4%
Q1 2021-6.3%-2.9%-3.1%
Q4 2020-3.9%-5.1%-0.6%
Q3 2020+2.5%+0.7%+20.9%
Q2 2020-5.1%-2.7%-8.2%
Q1 2020-0.3%-1.2%+18.9%
Q4 2019+15.0%+8.6%+11.6%
Q3 2019+3.9%+1.2%+5.4%
Q2 2019+4.1%+6.9%+5.2%
Q1 2019-4.8%-6.1%+2.0%
Q4 2018+5.9%+4.9%+26.2%
Q3 2018+10.2%+8.1%+14.4%
Q2 2018-8.6%-10.9%+9.4%
Q1 2018-4.1%-8.3%-13.1%
Q4 2017+0.7%+3.4%+5.3%
Q3 2017+8.0%+7.8%+19.0%
Q2 2017+15.4%+11.8%+20.8%
Q1 2017-11.9%-7.3%-22.3%
Q4 2016-3.6%-3.7%-5.7%
Q3 2016-11.6%
Q2 2016-2.6%
Q1 2016+19.8%
Q4 2015-1.4%
Q3 2015+20.2%
Q2 2014+9.7%
Q2 2015+11.4%
Q1 2014+5.4%
Q1 2015+6.2%
Q4 2012-0.9%
Q4 2014+7.7%
Q3 2013+0.8%
Q4 2013+0.8%
Q3 2014-1.6%
Q2 2013
Q1 2013

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