NASDAQ$PCTY

Paylocity Holding Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Paylocity's Q4 2023 results showcased strong revenue growth and profitability.

Paylocity announced strong Q4 and full fiscal year 2023 financial results, with a 35% increase in total revenue for Q4 and a 38% increase for the full fiscal year. Recurring revenue continues to be a strong driver of growth, and the company is updating financial targets to reflect sustained revenue growth and increasing profitability.

  • Q4 2023 Recurring & Other Revenue increased by 24% year-over-year, reaching $282.0 million.
  • Q4 2023 Total Revenue grew by 35% year-over-year, totaling $308.5 million.
  • FY 2023 GAAP net income increased 55% to $140.8 million, or $2.49 per diluted share.
  • FY 2023 Adjusted EBITDA increased 58% to $375.2 million, representing 31.9% of total revenue.

Headline financials

Total Revenue

$308M

Previous: $229M+34.7%
EPS (adj)

$1.32

Previous: $0.80+65.0%
Adjusted EBITDA

$101M

Previous: $59.3M+69.6%
Capital Expenditures

$13.1M

Previous: $2.71M+384.2%
Free Cash Flow

$63.5M

Previous: $46.9M+35.2%
Net Income

$37.3M

Previous: $15.1M+147.0%
Operating Income

$49.4M

Previous: $18.8M+162.8%
Gross Profit

$212M

Previous: $152M+39.7%
Cash & Equivalents

$289M

Previous: $140M+106.6%
Total Assets

$3.7B

Previous: $4.81B-23.2%
Stock-Based Comp

$31.3M

Previous: $26M+20.4%

Revenue & EPS history

Paylocity · Revenue · Quarterly

$308M

Q4 2023+34.7%vs Q4 2022
Beat estimate in 15 of 15 quarters(100%)
ActualEstimate

Revenue by segment

Paylocity · $282M total across 1 segment · Q4 2023

  • Recurring & Other Revenue
    $282M+24.3%

Forward guidance

Paylocity provided guidance for Q1 2024 and full fiscal year 2024. They expect continued revenue growth and profitability.

Tailwinds

  • Total revenue for Q1 2024 is expected to be in the range of $314.1 million to $318.1 million, representing approximately 25% growth over fiscal year 2023 first quarter total revenue.
  • Adjusted EBITDA for Q1 2024 is expected to be in the range of $89.5 million to $92.5 million.
  • Total revenue for fiscal year 2024 is expected to be in the range of $1.405 billion to $1.410 billion, representing approximately 20% growth over fiscal year 2023 total revenue.
  • Adjusted EBITDA for fiscal year 2024 is expected to be in the range of $464.0 million to $468.0 million.
  • Updated financial targets given sustained revenue growth, increasing profitability and scale.

Headwinds

  • Unable to reconcile forward-looking non-GAAP financial measures included in our guidance to their directly comparable GAAP financial measures because the information which is needed to complete the reconciliations is unavailable at this time without unreasonable effort.
  • General economic conditions in regions in which Paylocity does business
  • Changes in interest rates
  • Business disruptions, reductions in employment and an increase in business failures that have occurred or may occur in the future
  • Challenges associated with a growing company’s ability to effectively service clients in a dynamic and competitive market

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 Q4 2023

Historical avgQ4 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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