On August 1, 2024, Paylocity Holding Corp (PCTY, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full fiscal year 2024, ending June 30, 2024. Paylocity, a leading provider of payroll and human capital management (HCM) solutions, reported significant growth in revenue and profitability, surpassing analyst estimates.
Company Overview
Founded in 1997, Paylocity targets small- to midsize businesses in the United States, offering a suite of HCM solutions including payroll services, time and attendance, recruiting software, and workplace collaboration tools. As of fiscal 2023, the company services approximately 36,000 clients.
Q4 and FY 2024 Financial Performance
Paylocity reported Q4 2024 total revenue of $357.3 million, a 16% increase year-over-year, and recurring & other revenue of $324.7 million, up 15% year-over-year. For the full fiscal year 2024, total revenue reached $1,402.5 million, a 19% increase from FY 2023, while recurring & other revenue grew by 17% to $1,281.7 million.
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Total Revenue | $357.3M | $308.5M | $1,402.5M | $1,174.6M |
| Recurring & Other Revenue | $324.7M | $282.0M | $1,281.7M | $1,098.0M |
| GAAP Net Income | $48.8M | $37.3M | $206.8M | $140.8M |
| Adjusted EBITDA | $120.2M | $100.6M | $505.6M | $375.2M |
Key Financial Achievements
Paylocity's GAAP net income for FY 2024 increased by 47% to $206.8 million, or $3.63 per diluted share, compared to $140.8 million, or $2.49 per diluted share, in FY 2023. Adjusted EBITDA, a non-GAAP measure, rose by 35% to $505.6 million, representing 36.0% of total revenue, up from 31.9% in FY 2023.
"Our position as the most modern HCM provider drove strong financial results in fiscal 24, as we ended the year with 19% total revenue growth, 17% recurring & other revenue growth, and a significant increase in profitability," said Toby Williams, President and Co-Chief Executive Officer of Paylocity.
Balance Sheet and Cash Flow
As of June 30, 2024, Paylocity reported cash and cash equivalents of $401.8 million. Net cash provided by operating activities increased by 36% to $384.7 million, while free cash flow, a non-GAAP measure, grew by 42% to $305.9 million, or 21.8% of total revenue.
Analysis and Outlook
Paylocity's robust financial performance in FY 2024 underscores its strong market position and effective growth strategies. The company's ability to increase client numbers by 8% to 39,050 and achieve an 8% growth in average revenue per client highlights its successful client acquisition and retention efforts. Additionally, the repurchase of 1.1 million shares of common stock for $150 million during Q4 2024 demonstrates a commitment to returning capital to shareholders.
Looking ahead, Paylocity's guidance for FY 2025 includes expected total revenue in the range of $1.512 billion to $1.527 billion, representing approximately 8.3% growth over FY 2024. The company also anticipates adjusted EBITDA to be between $533.0 million and $543.0 million.
For more detailed financial information and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from Paylocity Holding Corp for further details.
