Paylocity Holding Corporation · NASDAQ:PCTY
Paylocity — Q3 2024 Earnings Presentation
22 slides from Paylocity's earnings presentation, May 2, 2024
Slide 1: Q3 Fiscal 2024 Investor Presentation
Q3 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 18% YoY Schaumburg, IL 36,200 54% 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 ~$18.6 billi al on Re Current average Over 1.3 million client size of 140+ 73 million employees businesses employees in the 10-5,000 36,200 cli
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 Surveys On Demand Pay 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 Connection acros
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 Surveys Market Pay Employee Experience $200 Recruiting & Benefits Time & Payroll Human Performance & Onboarding L
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 Long-Term Financial Targets Increased profitability targets reflect commitment to driving greater 19% YoY operational efficiency over time growth 38% YoY growth Current 34% YoY Total Revenue $2Bn+ growth Adjusted Gross Profit 75-80% 13% YoY growth Non-GAAP total R
Slide 14: Financials (cont.): Adjusted EBITDA
Financials (cont.) Driving continued margin expansion on an annual basis Adjusted EBITDA $ millions 35.2% Margin Driving greater leverage over time 31.9% • Successfully driven over 650bps of adj. Margin EBITDA margin leverage since FY20 27.9% • Expect to show incremental leverage on Margin 28.5%
Slide 15: Financials (cont.): Free Cash Flow
Financials (cont.) Driving continued margin expansion on an annual basis Free Cash Flow Demonstrating meaningful $ millions 18.4% FCF leverage Margin • Successfully driven ~600bps of FCF margin leverage since FY20 • Expect to show incremental leverage on an 12.0% annual basis as we continue to sca
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
SY ECKER CENTER cA paylocity Employee Resource Groups We're committed to increasing diversity, equity, inclusion, and accessibility as we grow and innovate in an ever-evolving environment. Our employee resource groups are a crucial part of our effort to drive change by helping us create a culture wh
Slide 19: PCTY Gives
cA paylocity PCTY Gives Our culture and core values make Paylocity a place where people want to work and have a lasting, positive impact on their community. We empower our employees to help create a better world for everyone. PCTY Gives is our corporate philanthropy effort that makes a difference ac
Slide 20: External Recognition
External Recognition 2020-2024 2020-2024 2020-2024 2024 2012-2024 2024 2023-2024 2023-2024 2023 2023-2024 2023 2023 2023 2023 2022-2023 2023 2023 2019-2023 20
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: Forward Together.
AO paylocity Forward Together.