Paylocity
🇺🇸 NASDAQ:PCTY
•
Dec 31, 2024
Paylocity Q2 2025 Earnings Report
Key Takeaways
Paylocity reported strong financial results for Q2 FY25, with total revenue reaching $377.0 million, a 16% increase year-over-year. Recurring & other revenue grew 17% to $347.7 million. Net income was $37.5 million, and GAAP EPS stood at $0.66. Operating income decreased slightly to $46.6 million. The company raised its revenue and profitability guidance for FY25.
Paylocity Revenue
Paylocity EPS
Paylocity Revenue by Segment
Forward Guidance
Paylocity expects continued revenue and EBITDA growth in Q3 and FY25, supported by strong client adoption and operational efficiencies.
Positive Outlook
- Projected Q3 FY25 revenue growth of 10% YoY to $439M-$444M.
- Recurring & other revenue expected to grow 12% YoY in Q3.
- FY25 total revenue guidance raised to $1.558B-$1.568B, up 11% YoY.
- Adjusted EBITDA for FY25 forecasted between $542M-$550M.
- Product expansion with Benefits Decision Support and Headcount Planning increasing max PEPY to $600.
Challenges Ahead
- Operating income declined slightly YoY despite revenue growth.
- GAAP net income remained flat compared to Q2 FY24.
- Interest expense increased due to recent acquisitions.
- Macroeconomic uncertainties could impact client spending.
- Higher expenses in R&D and marketing may impact margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income