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Paylocity (PCTY) Beats on Q1 Earnings & Revenue Estimates
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Paylocity (PCTY - Free Report) kick-started fiscal 2023 on a strong note by reporting better-than-expected results for the first quarter. The company reported first-quarter non-GAAP earnings of 98 cents per share, outpacing the Zacks Consensus Estimate of 61 cents. The bottom line improved 66% from the year-ago quarter’s earnings of 59 cents per share.
Paylocity’s revenues increased 39% year over year to $253.3 million and surpassed the Zacks Consensus Estimate of $239.9 million. The top-line growth can be attributed to a 36% increase in recurring revenues (97% of total revenues), which totaled $245.4 million.
Moreover, the interest income on funds held for clients increased to $7.9 million from $0.9 million in the year-ago quarter.
Paylocity Holding Corporation Price, Consensus and EPS Surprise
Paylocity’s adjusted gross profit was $182.7 million, up 42.6% year over year. The adjusted gross margin expanded 160 basis points (bps) year over year to 72.1%.
Adjusted EBITDA increased 44.4% from the year-ago quarter to $66.6 million. The adjusted EBITDA margin of 26.3% expanded 90 bps.
The non-GAAP operating income increased to $55.1 million from the $36.2 million reported in the year-ago period. The non-GAAP operating margin expanded 190 bps to 21.8%.
Balance Sheet & Other Details
Paylocity exited the fiscal first quarter with cash and cash equivalents of $65.5 million compared with the previous quarter’s $139.8 million. As of Sep 30, 2022, the company had long-term debt (long-term operating lease liabilities plus other long-term liabilities) of $72.8 million.
In the first quarter, Paylocity generated $16.4 million in cash through operating activities.
FY23 Guidance
Buoyed by the stronger-than-expected first-quarter performance, Paylocity raised its guidance for fiscal 2023. The company now projects revenues between $1.122 and $1.127 billion in fiscal 2023, up from the earlier guidance range of $1.087-$1.092 billion.
Adjusted EBITDA is expected in the band of $336-$340 million instead of the previously guided range of $314.5-$318.5 million.
For the second quarter of fiscal 2023, Paylocity expects revenues in the band of $257-$261 million, indicating approximately 32% growth from the year-ago period. Adjusted EBITDA is projected in the band of $63.5-$66.5 million.
Zacks Rank & Key Picks
Paylocity currently carries a Zacks Rank #4 (Sell). Shares of PCTY have declined 10.6% year to date (YTD).
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved 15 cents north to $1.18 per share in the past 60 days.
ZS’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Shares of the company have declined 58.6% YTD.
The Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 30 days. For 2022, earnings estimates have moved 9.4% up to $1.86 per share in the past 30 days.
CLS' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11.8%. Shares of the company have decreased 6% YTD.
The Zacks Consensus Estimate for Coupa's third-quarter fiscal 2023 earnings has been revised 4 cents northward to 10 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved upward by 19 cents to 44 cents per share in the past 60 days.
Coupa's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 478.1%. Shares of COUP have slumped 69.6% YTD.
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Paylocity (PCTY) Beats on Q1 Earnings & Revenue Estimates
Paylocity (PCTY - Free Report) kick-started fiscal 2023 on a strong note by reporting better-than-expected results for the first quarter. The company reported first-quarter non-GAAP earnings of 98 cents per share, outpacing the Zacks Consensus Estimate of 61 cents. The bottom line improved 66% from the year-ago quarter’s earnings of 59 cents per share.
Paylocity’s revenues increased 39% year over year to $253.3 million and surpassed the Zacks Consensus Estimate of $239.9 million. The top-line growth can be attributed to a 36% increase in recurring revenues (97% of total revenues), which totaled $245.4 million.
Moreover, the interest income on funds held for clients increased to $7.9 million from $0.9 million in the year-ago quarter.
Paylocity Holding Corporation Price, Consensus and EPS Surprise
Paylocity Holding Corporation price-consensus-eps-surprise-chart | Paylocity Holding Corporation Quote
Quarterly Details
Paylocity’s adjusted gross profit was $182.7 million, up 42.6% year over year. The adjusted gross margin expanded 160 basis points (bps) year over year to 72.1%.
Adjusted EBITDA increased 44.4% from the year-ago quarter to $66.6 million. The adjusted EBITDA margin of 26.3% expanded 90 bps.
The non-GAAP operating income increased to $55.1 million from the $36.2 million reported in the year-ago period. The non-GAAP operating margin expanded 190 bps to 21.8%.
Balance Sheet & Other Details
Paylocity exited the fiscal first quarter with cash and cash equivalents of $65.5 million compared with the previous quarter’s $139.8 million. As of Sep 30, 2022, the company had long-term debt (long-term operating lease liabilities plus other long-term liabilities) of $72.8 million.
In the first quarter, Paylocity generated $16.4 million in cash through operating activities.
FY23 Guidance
Buoyed by the stronger-than-expected first-quarter performance, Paylocity raised its guidance for fiscal 2023. The company now projects revenues between $1.122 and $1.127 billion in fiscal 2023, up from the earlier guidance range of $1.087-$1.092 billion.
Adjusted EBITDA is expected in the band of $336-$340 million instead of the previously guided range of $314.5-$318.5 million.
For the second quarter of fiscal 2023, Paylocity expects revenues in the band of $257-$261 million, indicating approximately 32% growth from the year-ago period. Adjusted EBITDA is projected in the band of $63.5-$66.5 million.
Zacks Rank & Key Picks
Paylocity currently carries a Zacks Rank #4 (Sell). Shares of PCTY have declined 10.6% year to date (YTD).
Some better-ranked stocks from the broader Computer and Technology sector are Zscaler (ZS - Free Report) , Celestica (CLS - Free Report) and Coupa Software . Zscaler and Celestica each sport a Zacks Rank #1 (Strong Buy) at present, while Coupa carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Zscaler's first-quarter fiscal 2023 earnings has been revised 7 cents north to 26 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved 15 cents north to $1.18 per share in the past 60 days.
ZS’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Shares of the company have declined 58.6% YTD.
The Zacks Consensus Estimate for Celestica’s fourth-quarter 2022 earnings has increased by 9 cents to 53 cents per share over the past 30 days. For 2022, earnings estimates have moved 9.4% up to $1.86 per share in the past 30 days.
CLS' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11.8%. Shares of the company have decreased 6% YTD.
The Zacks Consensus Estimate for Coupa's third-quarter fiscal 2023 earnings has been revised 4 cents northward to 10 cents per share over the past 60 days. For fiscal 2023, earnings estimates have moved upward by 19 cents to 44 cents per share in the past 60 days.
Coupa's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 478.1%. Shares of COUP have slumped 69.6% YTD.