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Dec 31, 2022
Paylocity Q2 2023 Earnings Report
Reported strong revenue growth driven by product innovation and sales execution.
Key Takeaways
Paylocity announced its Q2 2023 financial results, with a 39% increase in total revenue and a 31% increase in recurring and other revenue compared to the previous year. The company's growth was attributed to its modern software, strong sales execution, and investments in product innovation, including the integration of Cloudsnap.
Total revenue increased by 39% year-over-year.
Recurring and other revenue grew by 31% year-over-year.
GAAP operating income was $18.2 million.
Adjusted EBITDA reached $77.4 million.
Paylocity
Paylocity
Paylocity Revenue by Segment
Revenue by Segment
Recurring & Other Revenue
CapyFin.com Forward Guidance
Paylocity provided guidance for Q3 2023 and full fiscal year 2023.
Positive Outlook
- Total revenue for Q3 2023 is expected to grow approximately 35% over fiscal 2022.
- Q3 2023 total revenue is expected to be in the range of $330.5 million to $334.5 million.
- Adjusted EBITDA for Q3 2023 is expected to be in the range of $121.5 million to $124.5 million.
- Total revenue for fiscal year 2023 is expected to grow approximately 36% over fiscal year 2022.
- Total revenue for fiscal year 2023 is expected to be in the range of $1.156 billion to $1.161 billion.
Challenges Ahead
- The company is unable to reconcile forward-looking non-GAAP Adjusted EBITDA to its directly comparable GAAP financial measure.
- Reconciliation requires information that is unavailable at this time.
- Obtaining the necessary information would require unreasonable effort.
- General economic conditions in regions in which Paylocity does business.
- Changes in interest rates.