We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Paylocity Holding (PCTY - Free Report) reported third-quarter fiscal 2018 non-GAAP earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 47 cents per share. Non-GAAP earnings also increased 30% from the year-ago quarter.
Quarter Details
The company’s revenues came in at $113.4 million, reflecting an increase of 25.6% year over year and beating the Zacks Consensus Estimate of $111 million.
The top line was also driven by a 25.8% rise in recurring revenues (95.7% of total revenues) and a 23.3% increase in implementation and other revenues.
The company’s non-GAAP gross profit came in at $79.6 million, up 29.1% year over year. Non-GAAP gross margin expanded 190 basis points (bps) year over year to 68.3%
Adjusted EBITDA increased 33.3% from the year-ago quarter to $35.8 million.
Paylocity exited the quarter with cash and cash equivalents of $129.5 million compared with $110 million in the previous quarter. The company has no long-term debt. It generated $35.2 million of cash flow from operational activities during the quarter compared with $26 million during the prior quarter.
Guidance
The company provided outlook for the fourth quarter and fiscal 2018. For the fourth quarter, Paylocity expects revenues in the range of $92.6-$93.6 million. The Zacks Consensus Estimate is pegged at $92.2 million. Adjusted EBITDA is projected in the band of $14-$15 million.
The company raised guidance for fiscal 2018. Paylocity now anticipates revenues in the range of $373.5-$374.5 million (previous guidance $369-$371 million). The Zacks Consensus Estimate is pegged at $370.3 million. Adjusted EBITDA is now projected in the range of $79.6¬$80.6 million (previous guidance $76-$77 million).
Paylocity Holding Corporation Price, Consensus and EPS Surprise
Management is particularly optimistic about the timely delivery of year-end tasks. Additionally, they are also banking on the completion of BeneFLEX acquisition, which has expanded the solutions suite and will eventually contribute to revenues.
Zacks Rank and Stocks to Consider
Currently, Paylocity carries a Zacks Rank #3 (Hold).
Long-term EPS growth rate for Micron, Twitter and Lam Research is projected to be 10%, 23.1% and 17.7%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Paylocity (PCTY) Q3 Earnings, Revenues Surpass Estimates
Paylocity Holding (PCTY - Free Report) reported third-quarter fiscal 2018 non-GAAP earnings of 52 cents per share, which surpassed the Zacks Consensus Estimate of 47 cents per share. Non-GAAP earnings also increased 30% from the year-ago quarter.
Quarter Details
The company’s revenues came in at $113.4 million, reflecting an increase of 25.6% year over year and beating the Zacks Consensus Estimate of $111 million.
The top line was also driven by a 25.8% rise in recurring revenues (95.7% of total revenues) and a 23.3% increase in implementation and other revenues.
The company’s non-GAAP gross profit came in at $79.6 million, up 29.1% year over year. Non-GAAP gross margin expanded 190 basis points (bps) year over year to 68.3%
Adjusted EBITDA increased 33.3% from the year-ago quarter to $35.8 million.
Paylocity exited the quarter with cash and cash equivalents of $129.5 million compared with $110 million in the previous quarter. The company has no long-term debt. It generated $35.2 million of cash flow from operational activities during the quarter compared with $26 million during the prior quarter.
Guidance
The company provided outlook for the fourth quarter and fiscal 2018. For the fourth quarter, Paylocity expects revenues in the range of $92.6-$93.6 million. The Zacks Consensus Estimate is pegged at $92.2 million. Adjusted EBITDA is projected in the band of $14-$15 million.
The company raised guidance for fiscal 2018. Paylocity now anticipates revenues in the range of $373.5-$374.5 million (previous guidance $369-$371 million). The Zacks Consensus Estimate is pegged at $370.3 million. Adjusted EBITDA is now projected in the range of $79.6¬$80.6 million (previous guidance $76-$77 million).
Paylocity Holding Corporation Price, Consensus and EPS Surprise
Paylocity Holding Corporation Price, Consensus and EPS Surprise | Paylocity Holding Corporation Quote
Conclusion
Management is particularly optimistic about the timely delivery of year-end tasks. Additionally, they are also banking on the completion of BeneFLEX acquisition, which has expanded the solutions suite and will eventually contribute to revenues.
Zacks Rank and Stocks to Consider
Currently, Paylocity carries a Zacks Rank #3 (Hold).
Some of the better-ranked stocks in the broader technology sector are Micron Technology, Inc. (MU - Free Report) , Twitter, Inc. and Lam Research Corp. (LRCX - Free Report) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here
Long-term EPS growth rate for Micron, Twitter and Lam Research is projected to be 10%, 23.1% and 17.7%, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>