- Q2 2024 Recurring & Other Revenue of $298.4 million, up 16% year-over-year
- Q2 2024 Total Revenue of $326.4 million, up 20% year-over-year
Paylocity Holding Corporation, a leading provider of cloud-based HCM and payroll software solutions, announced financial results for the second quarter of fiscal year 2024, which ended December 31, 2023.
“Our differentiated value proposition of providing the most modern software in the industry continues to resonate in the marketplace as we saw total revenue growth of 20% and recurring revenue growth of 16% in Q2 of fiscal 24. We continue to receive positive client feedback on our modern product suite, including newer products such as Advanced Scheduling, Learning Management, Rewards & Recognition, and Employee Voice. We also extended our AI leadership in the HCM industry with the launch of AI-driven personalized learning plans, optimized workforce schedules, and embedded generative AI within Rewards & Recognition and Performance Management to improve communication between employees and their managers.
Paylocity’s commitment to product innovation was also recently recognized with the Bronze Brandon Hall Group Excellence in Technology Award in the Best Advance in Employee Engagement Technology category, and we were named an overall leader in 10 HCM product categories in G2’s Winter 2023 Grid Reports, marking the 21st consecutive quarter in which Paylocity achieved leader ranking,” said Steve Beauchamp, Co-Chief Executive Officer of Paylocity.
Second Quarter Fiscal 2024 Financial Highlights
Revenue:
- Total revenue was $326.4 million, an increase of 20% from the second quarter of fiscal year 2023.
- Recurring & other revenue was $298.4 million, an increase of 16% from the second quarter of fiscal year 2023.
Operating Income:
- GAAP operating income was $49.7 million and non-GAAP operating income was $92.8 million in the second quarter of fiscal year 2024.
Net Income:
- GAAP net income was $38.1 million or $0.67 per share in the second quarter of fiscal year 2024 based on 56.9 million diluted weighted average common shares outstanding.
Adjusted EBITDA:
- Adjusted EBITDA, a non-GAAP measure, was $112.6 million in the second quarter of fiscal year 2024.
Balance Sheet and Cash Flow:
- Cash and cash equivalents totaled $366.9 million as of the second quarter of fiscal year 2024.
- Cash flow from operations for the first six months of fiscal year 2024 was $137.2 million compared to $78.8 million for the first six months of fiscal year 2023.
- As of December 31, 2023, Paylocity had no long-term debt and had not drawn on its credit facility.
A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release, including the accompanying tables. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Business Outlook
Based on information available as of February 8, 2024, Paylocity is issuing guidance for the third quarter and full fiscal year 2024 as indicated below.
Third Quarter 2024:
- Total revenue is expected to be in the range of $395.0 million to $399.0 million, which represents approximately 17% growth over fiscal year 2023 third quarter total revenue.
- Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $153.5 million to $156.5 million.
Fiscal Year 2024:
- Total revenue is expected to be in the range of $1.384 billion to $1.389 billion, which represents approximately 18% growth over fiscal year 2023 total revenue.
- Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $474.0 million to $478.0 million.
We are unable to reconcile forward-looking non-GAAP Adjusted EBITDA to its directly comparable GAAP financial measure because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort.
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