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Paylocity (PCTY) Q4 Earnings Lag, Revenues Top Estimates

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Paylocity Holding (PCTY - Free Report) reported fourth-quarter fiscal 2018 results, wherein the top line surpassed the Zacks Consensus Estimate but the bottom line missed the same.

The company reported non-GAAP earnings of 11 cents per share, missing the Zacks Consensus Estimate of 12 cents. The figure, however, increased 22.2% from the year-ago quarter.

Paylocity’s quarterly revenues of $96.6 million increased 27% year over year. The figure topped the Zacks Consensus Estimate of $93 million. Notably, revenues came above the guided range of $92.6-$93.6 million, driven by a 26.7% rise in recurring revenues (96.2% of total revenues) and a 36.2% increase in implementation and other revenues.

During full-fiscal 2018, the company generated $377.5 million in revenues and 75 cents in non-GAAP earnings per share.

Paylocity Holding Corporation Price, Consensus and EPS Surprise


Paylocity Holding Corporation Price, Consensus and EPS Surprise | Paylocity Holding Corporation Quote

Quarter Details

The company’s non-GAAP gross profit came in at $62.9 million, up 33.5% year over year. Non-GAAP gross margin expanded 310 basis points year over year to 65.1%.

Adjusted EBITDA increased 36.5% from the year-ago quarter to $15.7 million.

Non-GAAP operating income was $8.1 million compared with $5.5 million a year ago.

Balance Sheet and Cash Flow

Paylocity exited fiscal 2018 with cash and cash equivalents of $137.2 million compared with $129.5 million in the previous fiscal.

It generated $97.9 million of cash flow from operational activities during the fiscal compared with $62 million a year ago. Free cash flow was $48.8 million for fiscal 2018.

Paylocity announced the approval of stock repurchase worth $35 million through Aug 14, 2018.


The company provided guidance for the fiscal first quarter and fiscal 2019. For the fiscal first quarter, Paylocity expects revenues in the range of $97.5-$98.5 million. Adjusted EBITDA is projected in the band of $20-$21 million.

For fiscal 2019, it anticipates revenues in the range of $451-$453 million. Adjusted EBITDA is projected to be $126.5-$128.5 million.

Zacks Rank and Stocks to Consider

Paylocity currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the broader Computer and Technology sector are Paycom Software, Inc. (PAYC - Free Report) , Qualys, Inc. (QLYS - Free Report) and Fortinet, Inc. (FTNT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Paycom, Qualys and Fortinet is projected to be 24.82%, 8% and 16.75%, respectively.

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