Paylocity Holding Corporation · NASDAQ:PCTY
Paylocity — Q2 2025 Earnings Presentation
22 slides from Paylocity's earnings presentation, Feb 6, 2025
Slide 1: Q2 Fiscal 2025 Investor Presentation
Q2 Fiscal 2025 Investor Presentation
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation is for informational purposes only and is not an offer to sell securities or a solicitation of an offer to buy any securities, and may not be relied upon in connection with the purchase or sale of any security. This presentation is proprietary and is intended
Slide 3: Our Business
Our Business We are a leading provider of cloud-based HR, payroll, and spend management software solutions to a diversified set of clients across verticals & geographies Demonstrated ability to drive strong revenue growth with increasing profitability Headquarters Rule of 16% YoY Schaumburg, IL 39,0
Slide 4: HCM Addressable Market (TAM)
HCM Addressable Market (TAM) We remain squarely focused on increasing our limited penetration of a large, and growing, total addressable market d HCM TAM of ~$19.5 b alize illio n Re Current average Approximately client size of 150+ 1.3 million 69 million employees businesses employees in the 10-5,0
Slide 5: HCM Competitive Landscape: Average Client Size
HCM Competitive Landscape Workday Limited overlap in target market. Enterprise solutions focused on companies with several thousand employees and up – do not see them often competitively Ultimate Kronos Group / Dayforce Enterprise Enterprise solution focusing Market primarily on >1,000 employee (10,
Slide 6: The Most Modern Platform HCM & Finance
The Most Modern Platform HCM & Finance 6
Slide 7: The Most Complete HCM Platform for The Modern Workforce
The Most Complete HCM Platform for The Modern Workforce HR Payroll Recruiting Process Payroll in a few Clicks Submit payroll through a simple navigation flow reducing manual data entry and minimizing errors Simplify Tasks for HR and Employees Save time and money with intuitive scheduling and time tr
Slide 8: Providing HR the tools to better engage with their employees
Providing HR the tools to better engage with their employees Employee Voice Recognition & Rewards Feeling heard & valued Create engagement with opportunities for feedback & recognition Flexibility & wellbeing Empower employees to manage their Learning shifts & pay schedule without HR overhead Commun
Slide 9: Modern finance & spend management software that puts CFOs in control
Modern finance & spend management software that puts CFOs in control Spend Analytics Significant TAM Expansion = HCM + Finance Guided Procurement Material new TAM expansion opportunity into high growth Office of the CFO category Vendor Management Differentiated Platform with unified experience ERP I
Slide 10: HCM Competitive Landscape: Where Our Clients Come From
HCM Competitive Landscape Where Our Clients Come From In-house solutions (did not use a traditional 3rd party provider) Combination of ADP/Paychex represents our largest source Local / regional of new clients payroll providers Why we win Industry-leading product suite combined with strong focus on c
Slide 11: Go-To-Market Strategy
Go-To-Market Strategy We hire experienced sales professionals • Most have prior HCM platform, HR technology or B2B sales experience • All sales are direct through our salesforce • Our reps are focused on deals with 10-5,000 employees with our largest opportunities supported by our most experienced t
Slide 12: Strong Referral Channel
Strong Referral Channel Channel Value Proposition Paylocity is the most complete platform for the modern workforce which helps our channel partners reach employees in new ways We do not compete with our channel partners – We do not sell insurance or benefits; other major payroll / HCM competitors co
Slide 13: Sustained R&D Investment Drives Product Expansion and Revenue Growth
Sustained R&D Investment Drives Product Expansion and Revenue Growth Over 200% increase in product suite since 2014 Max HCM PEPY Ongoing Product Innovation $600 Community Video Learning Employee Market Pay Voice Employee Experience $200 Recruiting & Benefits Time & Payroll Human Performance & Onboar
Slide 14: Continued Client Service Investments Support Strong Revenue Retention
Continued Client Service Investments Support Strong Revenue Retention Over 92%+ net revenue retention as a public company Providing the most modern platform 92%+ Net Revenue Retention Delivering world class service Retention Churn(1) *Net Revenue Retention = total revenue for the preceding 12 months
Slide 15: Financials
Financials Recurring and Other Revenue $ millions Long-Term Financial Targets 13% YoY Increased profitability targets reflect commitment to driving greater growth operational efficiency over time 17% YoY growth Current 30% YoY growth Total Revenue $2Bn+ Adjusted Gross Profit 75-80% 34% YoY gro
Slide 16: Financials (cont.): Adjusted EBITDA
Financials (cont.) Driving continued margin expansion on an annual basis Adjusted EBITDA $ millions 34.9% 36.0% Margin Margin Driving greater leverage over time 31.9% • Successfully driven roughly 800bps of adj. Margin EBITDA margin leverage since FY21 27.9% • Intend to drive leverage primaril
Slide 17: Financials (cont.): Free Cash Flow
Financials (cont.) Driving continued margin expansion on an annual basis Free Cash Flow Demonstrating meaningful $ millions 21.8% FCF leverage Margin • Successfully driven ~800bps of FCF margin leverage since FY21 18.4% Margin • Targeting to achieve our long-term FCF margin target of 20%-25% • R
Slide 18: Corporate Social Responsibility
Corporate Social Responsibility In addition to our strong culture and the world-class service, Paylocity is committed to being a leader in social and environmental responsibility, and corporate governance Sustainability We are committed to promoting environment responsibility and sustainable practic
Slide 19: Our Diversity, Equity, Inclusion, and Accessibility Journey
Our Diversity, Equity, Inclusion, and Accessibility Journey Transparency is a crucial part of our DEIA journey. That’s why we share annual data so our employees, clients, and partners can see where we stand. Our progress will continue to be rooted in intentional action together. Our goal isn’t about
Slide 20: External Recognition
External Recognition 2020-2024 2020-2024 2020-2024 2024 2012-2024 2024 2023-2024 2023-2024 2024 2024 2024 2023-2024 2019-2024 2023-2024 2022-2023 2023 2023 2022-2023 2023 2023 20
Slide 21: Positioned for Long-Term Growth & Margin Expansion
Positioned for Long-Term Growth & Margin Expansion • Creating the most modern HCM and spend management platform • Increasing average revenue per client • Growing client base • Strong client retention 21
Slide 22: Paylocity Forward Together
“y Paylocity Forward Together. www.paylocity.com