Paylocity Q3 2023 Earnings Report
Key Takeaways
Paylocity announced strong financial results for Q3 2023, with total revenue reaching $339.9 million, a 38% increase year-over-year, and recurring & other revenue growing by 28% to $314.2 million. The company highlighted its focus on innovative product development, including the launch of AI Assist, and its recognition as a top employer.
Total revenue increased by 38% year-over-year, reaching $339.9 million.
Recurring & other revenue grew by 28% year-over-year, totaling $314.2 million.
GAAP operating income was $80.4 million and Non-GAAP operating income was $116.7 million.
The company launched AI Assist, integrating generative AI to enhance client-employee communication.
Paylocity
Paylocity
Paylocity Revenue by Segment
Forward Guidance
Paylocity provided guidance for Q4 2023 and the full fiscal year 2023, expecting continued revenue growth and strong Adjusted EBITDA performance.
Positive Outlook
- Total revenue for Q4 2023 is expected to be in the range of $299.2 million to $303.2 million, representing approximately 32% growth over fiscal year 2022 fourth quarter total revenue.
- Adjusted EBITDA for Q4 2023 is expected to be in the range of $93.5 million to $96.5 million.
- Total revenue for fiscal year 2023 is expected to be in the range of $1.165 billion to $1.169 billion, representing approximately 37% growth over fiscal year 2022 total revenue.
- Adjusted EBITDA for fiscal year 2023 is expected to be in the range of $368.1 million to $371.1 million.
- The company continues to innovate with AI Assist, enhancing its HCM platform.
Challenges Ahead
- Guidance is based on information available as of May 4, 2023, and is subject to change.
- The company is unable to reconcile forward-looking non-GAAP Adjusted EBITDA to its directly comparable GAAP financial measure because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort.
- Forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed.
- General economic conditions, including the ongoing impact of COVID-19, could affect the company's performance.
- Cybersecurity threats and evolving cybersecurity regulations pose ongoing challenges.