Q3 2024 Paylocity Holding Corp Earnings Call Transcript
Key Points
- Paylocity Holding Corp (PCTY) reported a strong total revenue growth of 18.1% in Q3, reaching $401.3 million, which exceeded the high end of their guidance by $2.3 million.
- The company's adjusted EBITDA was $167.9 million, representing a 41.8% margin, surpassing the high end of their guidance by $11.4 million.
- Paylocity Holding Corp (PCTY) continues to innovate, with new enhancements to their talent acquisition suite and recognition as a leader in multiple product categories in the G2 Spring 2024 grid reports.
- Strong channel performance, with referrals from benefit brokers and financial advisers accounting for over 25% of new business in Q3.
- The company announced a $500 million share repurchase program, reflecting confidence in their business and commitment to driving shareholder value.
- Despite strong overall performance, Paylocity Holding Corp (PCTY) noted elongated sales cycles at the high end of the market, which could impact future growth momentum.
- The company is experiencing some macroeconomic uncertainties, leading to a cautious approach to Q4 expectations.
- There is a noted increase in competition, especially as other companies, including cloud solutions providers, continue to grow and potentially impact market dynamics.
- While there is ongoing investment in R&D and go-to-market activities, these areas still require significant resources, which could affect operational efficiency if not managed carefully.
- The company's workforce levels showed some moderation, which is expected to continue into Q4, potentially impacting revenue growth from existing clients.
Good day, and thank you for standing by. Welcome to the Paylocity Holdings Corporation Third Quarter 2024 Fiscal Year Results Conference Call. (Operator Instructions)
Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Ryan Glenn. Please go ahead.
Good afternoon, and welcome to Paylocity's earnings results call for the third quarter of fiscal '24, which ended on March 31, 2024. I'm Ryan Glenn, Chief Financial Officer, and joining me on the call today are Steve Beauchamp, and Toby Williams, Co-CEOs of Paylocity. Today, we will be discussing the results announced in our press release issued after the market closed.
A webcast replay of this call will be available for the next 45 days on our website under the Investor Relations tab. Before beginning, we must caution you that today's remarks, including statements made during the question-and-answer session, contain forward-looking statements. These statements
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