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Jun 30, 2023
Paylocity Q4 2023 Earnings Report
Paylocity's Q4 2023 results showcased strong revenue growth and profitability.
Key Takeaways
Paylocity announced strong Q4 and full fiscal year 2023 financial results, with a 35% increase in total revenue for Q4 and a 38% increase for the full fiscal year. Recurring revenue continues to be a strong driver of growth, and the company is updating financial targets to reflect sustained revenue growth and increasing profitability.
Q4 2023 Recurring & Other Revenue increased by 24% year-over-year, reaching $282.0 million.
Q4 2023 Total Revenue grew by 35% year-over-year, totaling $308.5 million.
FY 2023 GAAP net income increased 55% to $140.8 million, or $2.49 per diluted share.
FY 2023 Adjusted EBITDA increased 58% to $375.2 million, representing 31.9% of total revenue.
Paylocity
Paylocity
Paylocity Revenue by Segment
Revenue by Segment
Recurring & Other Revenue
CapyFin.com Forward Guidance
Paylocity provided guidance for Q1 2024 and full fiscal year 2024. They expect continued revenue growth and profitability.
Positive Outlook
- Total revenue for Q1 2024 is expected to be in the range of $314.1 million to $318.1 million, representing approximately 25% growth over fiscal year 2023 first quarter total revenue.
- Adjusted EBITDA for Q1 2024 is expected to be in the range of $89.5 million to $92.5 million.
- Total revenue for fiscal year 2024 is expected to be in the range of $1.405 billion to $1.410 billion, representing approximately 20% growth over fiscal year 2023 total revenue.
- Adjusted EBITDA for fiscal year 2024 is expected to be in the range of $464.0 million to $468.0 million.
- Updated financial targets given sustained revenue growth, increasing profitability and scale.
Challenges Ahead
- Unable to reconcile forward-looking non-GAAP financial measures included in our guidance to their directly comparable GAAP financial measures because the information which is needed to complete the reconciliations is unavailable at this time without unreasonable effort.
- General economic conditions in regions in which Paylocity does business
- Changes in interest rates
- Business disruptions, reductions in employment and an increase in business failures that have occurred or may occur in the future
- Challenges associated with a growing company’s ability to effectively service clients in a dynamic and competitive market