Paylocity Holding Corporation · NASDAQ:PCTY
Paylocity — Q4 2024 Earnings Presentation
22 slides from Paylocity's earnings presentation, Feb 8, 2024
Slide 1: Q4 Fiscal 2024 Investor Presentation
Q4 Fiscal 2024 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 and payroll 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 39,050 44% growth Rule
Slide 4: Core Addressable Market (TAM)
Core Addressable Market (TAM) We remain squarely focused on increasing our limited penetration of a large, and growing, total addressable market ized TAM of ~$19.5 billi al on Re Current average Approximately 1.3 million client size of 150+ 69 million employees businesses employees in the 10-5,000 3
Slide 5: Competitive Landscape
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 (10,000+
Slide 6: The Most Modern HCM Platform
The Most Modern HCM Platform 6
Slide 7: Providing HR the tools for the modern workforce
Providing HR the tools for the modern workforce Employee Voice Recognition & Rewards Feeling heard & valued Create engagement with opportunities for feedback & recognition Flexibility & wellbeing Empower employees to manage their shifts & pay schedule without HR overhead Learning Community & Video C
Slide 8: Competitive Landscape: Where Our Clients Come From
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 clien
Slide 9: 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; no resellers / indirect selling • Our reps are focused on deals with 10-5,000 employees with our largest opportunities su
Slide 10: 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 11: 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 PEPY Ongoing Product Innovation $600 $550 Community Video Learning Employee Market Pay Voice Employee Experience $200 Recruiting & Benefits Time & Payroll Human Performance & Onboa
Slide 12: 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 13: Financials
Financials Revenue $ millions 8% YoY growth Long-Term Financial Targets 19% YoY Increased profitability targets reflect commitment to driving greater growth operational efficiency over time 38% YoY Current growth 34% YoY Total Revenue $2Bn+ growth Adjusted Gross Profit 75-80% Non-GAAP total
Slide 14: Financials (cont.): Adjusted EBITDA
Financials (cont.) Driving continued margin expansion on an annual basis Adjusted EBITDA $ millions 35.4% 36.0% Margin Margin Driving greater leverage over time 31.9% • Successfully driven roughly 900bps of adj. Margin EBITDA margin leverage since FY21 27.9% • Intend to drive leverage primaril
Slide 15: 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 16: 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 commissioned a materiality assessment and greenhouse gas emissions analysis t
Slide 17: Our Diversity, Equity, Inclusion, and Accessibility Journey
Our Diversity, Equity, Inclusion, and Accessibility Journey Transparency is a crucial part of our DEIA journey. Our progress will continue to be rooted in intentional action together, not tokenism. Our goal isn’t about reaching a certain number — it’s about building the most inclusive culture possib
Slide 18: Employee Resource Groups
Employee Resource Groups Our employee resource groups (ERGs) are at the core of our efforts to engage our employees. These employee-led groups drive organizational change and innovation. Our ERGs have engaged members in experiences including local and virtual volunteer events in their communities; c
Slide 19: PCTY Gives
PCTY Gives PCTY Gives is our corporate philanthropy effort that makes a difference through in-kind donations, grants that support nonprofits nominated by our employees, paid time off to volunteer, charitable contributions through payroll deductions, college scholarships, and more. We work with nonpr
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
Slide 21: Positioned for Long-Term Growth & Margin Expansion
Positioned for Long-Term Growth & Margin Expansion • Creating the most modern HCM 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