CHICAGO - Paylocity (NASDAQ:PCTY) Holding Corporation (NASDAQ:PCTY), a leading provider of cloud-based payroll and human capital management software solutions, reported robust financial results for the third quarter of fiscal year 2024, exceeding revenue expectations and delivering a strong business outlook.
Shares of Paylocity surged 15% following the announcement, reflecting investor optimism spurred by the company's forward-looking guidance.
For the quarter, Paylocity posted revenue of $401.3 million, surpassing the analyst consensus of $397.23 million and marking an 18% increase from the third quarter of the previous fiscal year.
However, the company's earnings per share (EPS) of $1.50 fell short of the expected $1.98. Despite the EPS miss, the company's recurring and other revenue streams grew by 17% YoY, demonstrating the continued demand for its modern software solutions.
President and Co-Chief Executive Officer Toby Williams highlighted the company's achievements, noting, "Our solid results continued into the third quarter... as our differentiated value proposition... continues to resonate in the market." Williams also announced a $500 million share repurchase program, underlining the company's strong profitability and cash flows.
Looking ahead, Paylocity provided an encouraging business outlook for the fourth quarter and full fiscal year 2024. The company anticipates fourth-quarter total revenue to be in the range of $347.8 million to $351.8 million, which would represent approximately 13% growth YoY.
For the full fiscal year, revenue is expected to reach between $1.393 billion and $1.397 billion, indicating an estimated 19% increase over the previous year. The midpoint of the fourth-quarter revenue guidance is slightly above the analyst consensus, contributing to the positive market reaction.
Paylocity's adjusted EBITDA for the third quarter stood at $167.9 million, a significant improvement from $130.7 million in the same quarter last year. The company's balance sheet remains robust, with $492.7 million in cash and cash equivalents and no long-term debt.
The company's strong outlook, coupled with its commitment to product innovation and market leadership, as evidenced by its recognition in the G2 Spring 2024 Grid Reports, has clearly resonated with investors, leading to the notable increase in stock price. As Paylocity continues to expand its offerings and capitalize on market opportunities, the company appears well-positioned for sustained growth.
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