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Paylocity (PCTY) Q2 Earnings and Revenues Beat Estimates
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Paylocity Holding (PCTY - Free Report) reported second-quarter fiscal 2022 non-GAAP earnings of 64 cents per share, outpacing the Zacks Consensus Estimate of 41 cents. The bottom line improved 64.1% from the year-ago quarter’s earnings of 39 cents per share.
Paylocity’s revenues improved 34% year over year to $196 million and surpassed the Zacks Consensus Estimate of $187.9 million. The top-line growth can be attributed to a 34% increase in recurring revenues (99.5% of total revenues), which totaled $195 million. However, interest income on funds held for clients rose 6.4% to $1 million.
Quarterly Details
Paylocity’s non-GAAP gross profit was $134.7 million, up 33.8% year over year. Non-GAAP gross margin contracted 10 basis points (bps) year over year to 68.7%.
Adjusted EBITDA increased 33.3% from the year-ago quarter to $46.6 million. However, adjusted EBITDA margin of 23.8% contracted 10 bps.
Non-GAAP operating income increased to $36.6 million from $25.1 million reported in the year-ago period. Non-GAAP operating margin expanded 150 bps to 18.7%.
Paylocity Holding Corporation Price, Consensus and EPS Surprise
Paylocity exited the fiscal second quarter with cash and cash equivalents of $84.1 million compared with the previous quarter’s $66.4 million. As of Dec 31, 2021, the company had no long-term debt.
During the second quarter of fiscal 2022, the company generated $31 million of cash through operating activities.
Outlook Update
For the fiscal third quarter, Paylocity expects revenues of $239-$243 million, indicating approximately 30% growth from the year-ago period. Adjusted EBITDA is projected to be $77-$80 million.
The company raised its fiscal 2022 guidance. It is now expecting revenues of $829-$834 million, suggesting approximately 31% growth from fiscal 2021, compared with the prior estimate of $815-$820 million.
Adjusted EBITDA is now expected in the band of $220-$224 million compared with the prior estimate of $216-$220 million for fiscal 2022.
Zacks Rank & Other Key Picks
Paylocity currently carries a Zacks Rank #2 (Buy).
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Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 25.9% in the past year.
The Zacks Consensus Estimate for Analog Devices’ first-quarter fiscal 2022 earnings has been revised upward by a penny to $1.79 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 7 cents to $7.53 per share in the past 30 days.
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The Zacks Consensus Estimate for Axcelis Technologies fourth-quarter 2021 earnings has been revised upward by 16 cents to 84 cents per share over the past 90 days. For 2021, earnings estimates have moved north by 8.5% to $2.67 per share in the last 90 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 24.1%. Shares of ACLS have rallied 63.8% in the past year.
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Paylocity (PCTY) Q2 Earnings and Revenues Beat Estimates
Paylocity Holding (PCTY - Free Report) reported second-quarter fiscal 2022 non-GAAP earnings of 64 cents per share, outpacing the Zacks Consensus Estimate of 41 cents. The bottom line improved 64.1% from the year-ago quarter’s earnings of 39 cents per share.
Paylocity’s revenues improved 34% year over year to $196 million and surpassed the Zacks Consensus Estimate of $187.9 million. The top-line growth can be attributed to a 34% increase in recurring revenues (99.5% of total revenues), which totaled $195 million. However, interest income on funds held for clients rose 6.4% to $1 million.
Quarterly Details
Paylocity’s non-GAAP gross profit was $134.7 million, up 33.8% year over year. Non-GAAP gross margin contracted 10 basis points (bps) year over year to 68.7%.
Adjusted EBITDA increased 33.3% from the year-ago quarter to $46.6 million. However, adjusted EBITDA margin of 23.8% contracted 10 bps.
Non-GAAP operating income increased to $36.6 million from $25.1 million reported in the year-ago period. Non-GAAP operating margin expanded 150 bps to 18.7%.
Paylocity Holding Corporation Price, Consensus and EPS Surprise
Paylocity Holding Corporation price-consensus-eps-surprise-chart | Paylocity Holding Corporation Quote
Balance Sheet & Other Details
Paylocity exited the fiscal second quarter with cash and cash equivalents of $84.1 million compared with the previous quarter’s $66.4 million. As of Dec 31, 2021, the company had no long-term debt.
During the second quarter of fiscal 2022, the company generated $31 million of cash through operating activities.
Outlook Update
For the fiscal third quarter, Paylocity expects revenues of $239-$243 million, indicating approximately 30% growth from the year-ago period. Adjusted EBITDA is projected to be $77-$80 million.
The company raised its fiscal 2022 guidance. It is now expecting revenues of $829-$834 million, suggesting approximately 31% growth from fiscal 2021, compared with the prior estimate of $815-$820 million.
Adjusted EBITDA is now expected in the band of $220-$224 million compared with the prior estimate of $216-$220 million for fiscal 2022.
Zacks Rank & Other Key Picks
Paylocity currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader computer and technology sector include the iPhone maker Apple (AAPL - Free Report) , sporting a Zacks Rank #1 (Strong Buy), Analog Devices (ADI - Free Report) and Axcelis Technologies (ACLS - Free Report) , both carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Apple’s second-quarter fiscal 2022 earnings has been revised upward by 3.6% to $1.43 per share over the past seven days. For fiscal 2022, earnings estimates have moved north by 5.9% to $6.15 per share in the past seven days.
Apple’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 20.3%. AAPL stock has appreciated 25.9% in the past year.
The Zacks Consensus Estimate for Analog Devices’ first-quarter fiscal 2022 earnings has been revised upward by a penny to $1.79 per share over the past 30 days. For fiscal 2022, earnings estimates have moved north by 7 cents to $7.53 per share in the past 30 days.
Analog Devices’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6.1%. Shares of ADI have gained 7.6% in the past year.
The Zacks Consensus Estimate for Axcelis Technologies fourth-quarter 2021 earnings has been revised upward by 16 cents to 84 cents per share over the past 90 days. For 2021, earnings estimates have moved north by 8.5% to $2.67 per share in the last 90 days.
Axcelis’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 24.1%. Shares of ACLS have rallied 63.8% in the past year.