Arlington Heights, IL. – February 4, 2016 – Paylocity Holding Corporation (Nasdaq: PCTY), a cloud-based provider of payroll and human capital management software solutions, today announced financial results for the second quarter of fiscal year 2016, which ended December 31, 2015.
“The second quarter was our strongest as a public company, including total revenue growth of 61%. The record growth we saw in the second quarter was a result of the strong performance from our sales team as well as the impact of our ACA Enhanced product for new and existing clients,” said Steve Beauchamp, President and Chief Executive Officer of Paylocity. “We continue to be very pleased with the response our ACA solution has received, which is a testament to our sustained investment in R&D as well as the dedication of our client operations team.”
Second Quarter Fiscal Year 2016 Financial Highlights
Revenue:
- Total revenue was $55.2 million, an increase of 61% from the second quarter of fiscal year 2015.
- Total recurring revenue was $52.3 million, representing 95% of total revenue and an increase of 61% from the second quarter of fiscal year 2015.
Adjusted EBITDA:
- Adjusted EBITDA, a non-GAAP measure, was $7.2 million compared to Adjusted EBITDA of ($0.2) million in the second quarter of fiscal year 2015.
Operating Income (Loss):
- GAAP operating loss was ($1.3) million, compared to an operating loss of ($6.5) million in the second quarter of fiscal year 2015.
- Non-GAAP operating income was $4.0 million, compared to a non-GAAP operating loss of ($2.4) million in the second quarter of fiscal year 2015.
Net Income (Loss):
GAAP net loss was ($1.2) million. This compares to a net loss of ($6.4) million for the second quarter of fiscal year 2015. Net loss per share was ($0.02) for the three months ended December 31, 2015 based on 50.9 million basic and diluted weighted average common shares outstanding. Net loss per share was ($0.13) for the second quarter of fiscal year 2015 based on 49.8 million basic and diluted weighted average common shares outstanding.
Non-GAAP net income was $4.1 million. This compares to non-GAAP net loss of ($2.3) million for the second quarter of fiscal year 2015. Non-GAAP net income per share was $0.08 for the three months ended December 31, 2015 based on 53.7 million diluted weighted average common shares outstanding. Non-GAAP net loss per share was ($0.05) for the second quarter of fiscal year 2015 based on 49.8 million basic and diluted weighted average common shares outstanding.
Balance Sheet and Cash Flow:
Cash and cash equivalents totaled $79.0 million at the end of the quarter.
- Cash flow from operations for the second quarter of fiscal year 2016 was $7.8 million compared to $1.0 million for the second quarter of fiscal year 2015.
A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release, including the accompanying tables. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”
Business Outlook
Based on information available as of February 4, 2016, Paylocity is issuing guidance for the third quarter and full fiscal year 2016 as indicated below.
Third Quarter 2016:
- Total revenue is expected to be in the range of $66.5 million to $67.5 million.
- Adjusted EBITDA is expected to be in the range of $10.5 million to $11.5 million.
- Non-GAAP net income is expected to be in the range of $7.0 million to $8.0 million, or $0.13 to $0.15 per share, based on approximately 54.0 million diluted weighted average common shares outstanding.
Fiscal Year 2016:
- Total revenue is expected to be in the range of $223.0 million to $225.0 million.
- Adjusted EBITDA is expected to be in the range of $22.0 million to $23.0 million.
- Non-GAAP net income is expected to be in the range of $9.5 million to $10.5 million, or $0.18 to $0.19 per share, based on approximately 54.0 million diluted weighted average common shares outstanding.
