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Paylocity Holding Corporation (PCTY - Free Report) reported fourth-quarter fiscal 2024 non-GAAP earnings of $1.48 per share, beating the Zacks Consensus Estimate by 16.54%. The bottom line increased 12.12% year over year, driven by higher revenues and an increase in the operating and EBITDA income.
Paylocity’s revenues climbed 16% year over year to $357.29 million and surpassed the Zacks Consensus Estimate by 2.12%. The robust increase in the top line was mainly driven by a continued focus on scaling operational costs while maintaining industry-leading service levels.
The top-line growth can be attributed to a 15% increase in recurring revenues (90.8% of the total revenues), which totaled $324.7 million. Moreover, the Interest Income on Funds Held for Clients (9.2% of total revenues) jumped 23% year over year to $32.5 million.
Paylocity Holding Corporation Price, Consensus and EPS Surprise
Paylocity’s adjusted gross profit was $226.28 million, down 12.9% year over year. The adjusted gross margin contracted 60 basis points (bps) to 72.7%.
The non-GAAP operating income rose 14.7% year over year to $96.3 million. The non-GAAP operating margin contracted 30 bps to 27%.
Adjusted EBITDA jumped 19.5% from the year-ago quarter to $120.2 million. The adjusted EBITDA margin of 33.6% expanded 100 bps.
Balance Sheet & Other Details
Paylocity exited the fiscal fourth quarter with cash and cash equivalents of $401.8 million compared with the previous quarter’s $492.7 million. As of Jun 30, 2024, the company had no long-term debt and not drawn on its credit facility.
In the reported quarter, PCTY generated an operating cash flow of $384.7 million and a free cash flow of $305.9 million.
First-Quarter and Fiscal 2025 Guidance
For the first quarter of fiscal 2025, the company expects revenues in the band of $353.5-$358.5 million, indicating 12.1% growth from the year-ago period. Adjusted EBITDA is projected in the range of $116.5-$120.5 million.
For fiscal 2025, Paylocity projects revenues between $1.512 billion and $1.527 billion, implying 8.3% growth from the year-ago quarter. Adjusted EBITDA is expected in the band of $533-$543 million.
Zacks Rank & Stocks to Consider
Currently, Paylocity carries a Zacks Rank #5 (Strong Sell).
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Paylocity's (PCTY) Q4 Earnings & Revenues Surpass Estimates
Paylocity Holding Corporation (PCTY - Free Report) reported fourth-quarter fiscal 2024 non-GAAP earnings of $1.48 per share, beating the Zacks Consensus Estimate by 16.54%. The bottom line increased 12.12% year over year, driven by higher revenues and an increase in the operating and EBITDA income.
Paylocity’s revenues climbed 16% year over year to $357.29 million and surpassed the Zacks Consensus Estimate by 2.12%. The robust increase in the top line was mainly driven by a continued focus on scaling operational costs while maintaining industry-leading service levels.
The top-line growth can be attributed to a 15% increase in recurring revenues (90.8% of the total revenues), which totaled $324.7 million. Moreover, the Interest Income on Funds Held for Clients (9.2% of total revenues) jumped 23% year over year to $32.5 million.
Paylocity Holding Corporation Price, Consensus and EPS Surprise
Paylocity Holding Corporation price-consensus-eps-surprise-chart | Paylocity Holding Corporation Quote
Quarterly Details
Paylocity’s adjusted gross profit was $226.28 million, down 12.9% year over year. The adjusted gross margin contracted 60 basis points (bps) to 72.7%.
The non-GAAP operating income rose 14.7% year over year to $96.3 million. The non-GAAP operating margin contracted 30 bps to 27%.
Adjusted EBITDA jumped 19.5% from the year-ago quarter to $120.2 million. The adjusted EBITDA margin of 33.6% expanded 100 bps.
Balance Sheet & Other Details
Paylocity exited the fiscal fourth quarter with cash and cash equivalents of $401.8 million compared with the previous quarter’s $492.7 million. As of Jun 30, 2024, the company had no long-term debt and not drawn on its credit facility.
In the reported quarter, PCTY generated an operating cash flow of $384.7 million and a free cash flow of $305.9 million.
First-Quarter and Fiscal 2025 Guidance
For the first quarter of fiscal 2025, the company expects revenues in the band of $353.5-$358.5 million, indicating 12.1% growth from the year-ago period. Adjusted EBITDA is projected in the range of $116.5-$120.5 million.
For fiscal 2025, Paylocity projects revenues between $1.512 billion and $1.527 billion, implying 8.3% growth from the year-ago quarter. Adjusted EBITDA is expected in the band of $533-$543 million.
Zacks Rank & Stocks to Consider
Currently, Paylocity carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the broader Computer and Technology sector are DigitalOcean (DOCN - Free Report) , Shopify (SHOP - Free Report) and Analog Devices (ADI - Free Report) . While DigitalOcean sports a Zacks Rank #1 (Strong Buy), Shopify and Analog Devices carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
DigitalOcean’s shares have plunged 15.9% year to date. DOCN is set to report its second-quarter 2024 results on Aug 8.
Shopify’s shares have plunged 27.3% year to date. SHOP is set to report its second-quarter 2024 results on Aug 7.
Analog Devices’ shares have gained 7.8% year to date. ADI is set to report its third-quarter fiscal 2024 results on Aug 21.