Paylocity Announces First Quarter Fiscal Year 2019 Financial Results

Q1 2019 Total Revenue of $100.5 million, up 26% year-over-year

Q1 2019 Recurring Revenue of $99.3 million, up 26% year-over-year

SCHAUMBURG, Ill., Nov. 01, 2018 (GLOBE NEWSWIRE) — Paylocity Holding Corporation (NASDAQ: PCTY), a leading provider of cloud-based payroll and human capital management software solutions, announced today its financial results for the first quarter of fiscal year 2019, which ended September 30, 2018.

“Fiscal 2019 is off to a nice start with $100.5 million in total revenue and 26 percent growth over the first quarter of last fiscal year,” said Steve Beauchamp, Chief Executive Officer of Paylocity. “Last month, we hosted a record number of attendees for our Elevate Client Conference, where we announced the release of our TPA solutions product, as well as a number of new innovative features across our platform. We also continue to receive recognition highlighting the strength of our culture with three additional great place to work awards.”

First Quarter Fiscal 2019 Financial Highlights

Revenue

• Total revenue was $100.5 million, an increase of 26% from first quarter fiscal year 2018 revenue, as adjusted and as presented on a non-GAAP basis in the table below.
• Total recurring revenue was $99.3 million, representing 99% of total revenue and an increase of 26% from first quarter fiscal year 2018 total recurring revenue, as adjusted and as presented on a non-GAAP basis in the table below.

Operating Income

• GAAP operating income was $3.8 million and non-GAAP operating income was $15.3 million in the first quarter of fiscal year 2019.

Net Income

• GAAP net income was $9.9 million or $0.18 per share for the first quarter of fiscal year 2019 based on 55.5 million diluted weighted average common shares outstanding. GAAP net income includes $6.9 million of excess tax benefit related to employee stock-based compensation payments.

Adjusted EBITDA

• Adjusted EBITDA, a non-GAAP measure, was $23.3 million in the first quarter of fiscal year 2019.

Balance Sheet and Cash Flow

• Cash, cash equivalents, and invested corporate cash totaled $84.9 million as of the end of the quarter.
• Cash flow from operations for the first quarter of fiscal year 2019 was $7.3 million compared to $8.2 million for the first quarter of fiscal year 2018, which included a $1.7 million tenant improvement allowance.

Stock Repurchase Plan

In August 2018, Paylocity’s Board of Directors approved a stock repurchase plan under which $35.0 million was available for repurchase through August 14, 2019, and the stock repurchase plan has been fully executed.

Accounting Update

We adopted ASC 606 using the modified retrospective method in fiscal 2019, which began on July 1, 2018. Under ASC 606, we will amortize certain sales and implementation expenses over a period of seven years.

Also as of July 1, 2018, we began recognizing implementation revenue ratably over a period of generally up to 24 months.

In the interest of comparability during this transition year, in the reconciliation table below we are providing revenue for each quarter of fiscal 2018 on a GAAP and non-GAAP, pro-forma basis giving effect to the change in recognition of implementation revenue for fiscal 2018.

For the official press release, click here.