Paylocity Holding Corporation · NASDAQ:PCTY
Paylocity — Q2 2023 Earnings Presentation
17 slides from Paylocity's earnings presentation, Feb 2, 2023
Slide 1: Investor Presentation Q2 FY2023
Investor Presentation Q2 FY2023
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 Employees Clients 39% YoY Headquarters 36% YoY growth growth 34% YoY growth Employees 13% YoY average client growth size 20% YoY growth Best places to work Consistently awarded $1,159 $636 $853 $273 $19
Slide 4: Core Addressable Market (TAM)
Core Addressable Market (TAM) Current average Over 1.3 million client size of 100+ 73 million employees businesses employees in the 10-5,000 33,300 clients in the 10–5,000 segment of the market segment of the market as of June 30, 2022 ~$255 Realized PEPY Only 2.5% penetrated into addressable market
Slide 5: Competitive Landscape
Competitive Landscape Workday/Ceridian – Limited overlap in target market. Enterprise solutions focused on companies with several thousand employees and up – do not see them often competitively Enterprise Market Ultimate Kronos Group – Enterprise (10,000+ solution focusing primarily on >1,000 Employ
Slide 6: 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 (technology) combined with strong foc
Slide 7: The Most Complete Platform for the Modern Workforce
The Most Complete Platform for the Modern Workforce Integration Marketplace Open APIs $440 Max PEPY 7 7
Slide 8: Experiences for the Modern Employee
Experiences for the Modern Employee Notifications File sharing 1:1 Chat Collaboration Announcements Video Ask the Expert Communication Discussion groups Surveys Connection Recognition Texting Mobile On Demand Payment 8
Slide 9: Go-To-Market Strategy
Go-To-Market Strategy We hire experienced sales professionals • Many have prior payroll / HCM experience; also hire experienced B2B sales professionals • All sales are direct through our salesforce; no resellers/indirect selling 694 reps in fiscal 2023 18% From 588 reps in fiscal 2022 All major U.S
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 100% increase in product suite since 2014 $440 PEPY R&D = 14% of revenue $420 PEPY R&D = 15% R&D Investment (Non-GAAP - $m) $400 PEPY of revenue R&D = 14% $360 PEPY of revenue R&D = 14% $320 PEPY of revenue R&D = 13% $285 PEPY
Slide 12: Financials
Financials Revenue $ millions 34% YoY growth Current Long-Term Financial Targets Revenue Growth 20%+ 13% YoY growth Adjusted Gross Margin 70-75% 20% YoY growth Total R&D Investment 10-15% Sales/Marketing 20-25% General & Administrative 10-15% Adjusted EBITDA 30-35% Free Cash Flow 15-20% $468 $
Slide 13: Financials (cont.)
Financials (cont.) Free Cash Flow Adjusted EBITDA $ millions $ millions 27.9% Margin 12.0% Margin 13.7% Margin 26.7% 16.3% 28.5% Margin Margin 12.5% Margin 28.7% Margin Margin $238 $160 $170 $134 $103 $70 $87 $76 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 Strong Balance Sheet - $120M Ca
Slide 14: 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 PCTY Employee Resources Groups (ERGs) Governance at PCTY Our Board of Directors and Executive t
Slide 15: Corporate Social Responsibility (cont.)
Corporate Social Responsibility (cont.) PCTY in the Community Our core values lead us to give back our time, talent, and treasure at work and in the community. PCTY Mobilization in FY22 Signature Partners 225+ 29%+ organizations of employees impacted volunteered PCTY Diversity, Equity, Inclusion, &
Slide 16: Positioned for 20%+ Long-Term Growth
Positioned for 20%+ Long-Term Growth • Creating the most complete platform for the modern workforce • Increasing average revenue per client • Growing client base • Sustaining 92%+ revenue retention 16
Slide 17: Paylocity: Forward Together
<i paylocity Forward Together.