(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
The |
Exhibit No. | Description | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
Exhibit No. | Description | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
PAYLOCITY HOLDING CORPORATION | ||||||||
Date: November 3, 2022 | By: | /s/ Ryan Glenn | ||||||
Ryan Glenn | ||||||||
Chief Financial Officer and Treasurer |
June 30, 2022 | September 30, 2022 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 139,756 | $ | 65,484 | |||||||
Accounts receivable, net | 15,754 | 21,519 | |||||||||
Deferred contract costs | 59,501 | 64,058 | |||||||||
Prepaid expenses and other | 28,896 | 29,122 | |||||||||
Total current assets before funds held for clients | 243,907 | 180,183 | |||||||||
Funds held for clients | 3,987,776 | 2,299,437 | |||||||||
Total current assets | 4,231,683 | 2,479,620 | |||||||||
Capitalized internal-use software, net | 61,985 | 66,693 | |||||||||
Property and equipment, net | 62,839 | 60,943 | |||||||||
Operating lease right-of-use assets | 49,210 | 47,614 | |||||||||
Intangible assets, net | 45,475 | 42,704 | |||||||||
Goodwill | 101,949 | 102,054 | |||||||||
Long-term deferred contract costs | 229,067 | 244,554 | |||||||||
Long‑term prepaid expenses and other | 7,746 | 7,624 | |||||||||
Deferred income tax assets | 19,060 | 43,303 | |||||||||
Total assets | $ | 4,809,014 | $ | 3,095,109 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 8,374 | $ | 6,235 | |||||||
Accrued expenses | 124,384 | 105,907 | |||||||||
Total current liabilities before client fund obligations | 132,758 | 112,142 | |||||||||
Client fund obligations | 3,987,776 | 2,299,437 | |||||||||
Total current liabilities | 4,120,534 | 2,411,579 | |||||||||
Long-term operating lease liabilities | 69,119 | 67,040 | |||||||||
Other long-term liabilities | 3,681 | 3,427 | |||||||||
Deferred income tax liabilities | 2,217 | 2,217 | |||||||||
Total liabilities | $ | 4,195,551 | $ | 2,484,263 | |||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2022 and September 30, 2022 | $ | — | $ | — | |||||||
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2022 and September 30, 2022; 55,190 shares issued and outstanding at June 30, 2022 and 55,664 shares issued and outstanding at September 30, 2022 | 55 | 56 | |||||||||
Additional paid-in capital | 289,843 | 259,245 | |||||||||
Retained earnings | 325,868 | 356,220 | |||||||||
Accumulated other comprehensive loss | (2,303) | (4,675) | |||||||||
Total stockholders' equity | $ | 613,463 | $ | 610,846 | |||||||
Total liabilities and stockholders’ equity | $ | 4,809,014 | $ | 3,095,109 |
Three Months Ended September 30, | |||||||||||
2021 | 2022 | ||||||||||
Revenues: | |||||||||||
Recurring and other revenue | $ | 180,824 | $ | 245,406 | |||||||
Interest income on funds held for clients | 873 | 7,874 | |||||||||
Total revenues | 181,697 | 253,280 | |||||||||
Cost of revenues | 63,249 | 84,543 | |||||||||
Gross profit | 118,448 | 168,737 | |||||||||
Operating expenses: | |||||||||||
Sales and marketing | 49,885 | 71,063 | |||||||||
Research and development | 23,076 | 40,093 | |||||||||
General and administrative | 35,235 | 50,492 | |||||||||
Total operating expenses | 108,196 | 161,648 | |||||||||
Operating income | 10,252 | 7,089 | |||||||||
Other expense | (117) | (163) | |||||||||
Income before income taxes | 10,135 | 6,926 | |||||||||
Income tax benefit | (20,797) | (23,426) | |||||||||
Net income | $ | 30,932 | $ | 30,352 | |||||||
Other comprehensive loss, net of tax | (75) | (2,372) | |||||||||
Comprehensive income | $ | 30,857 | $ | 27,980 | |||||||
Net income per share: | |||||||||||
Basic | $ | 0.56 | $ | 0.55 | |||||||
Diluted | $ | 0.55 | $ | 0.54 | |||||||
Weighted-average shares used in computing net income per share: | |||||||||||
Basic | 54,810 | 55,453 | |||||||||
Diluted | 56,506 | 56,664 |
Three Months Ended September 30, | |||||||||||
2021 | 2022 | ||||||||||
Cost of revenues | $ | 3,527 | $ | 5,045 | |||||||
Sales and marketing | 6,020 | 10,500 | |||||||||
Research and development | 4,774 | 10,234 | |||||||||
General and administrative | 9,435 | 19,199 | |||||||||
Total stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | $ | 23,756 | $ | 44,978 |
Three Months Ended September 30, | |||||||||||
2021 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 30,932 | $ | 30,352 | |||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||||||||||
Stock-based compensation expense | 19,559 | 39,813 | |||||||||
Depreciation and amortization expense | 11,322 | 14,267 | |||||||||
Deferred income tax benefit | (20,827) | (23,415) | |||||||||
Provision for credit losses | 38 | 266 | |||||||||
Net accretion of discounts and amortization of premiums on available-for-sale securities | 90 | (842) | |||||||||
Amortization of debt issuance costs | 44 | 94 | |||||||||
Other | 27 | 125 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (173) | (6,020) | |||||||||
Deferred contract costs | (11,114) | (19,328) | |||||||||
Prepaid expenses and other | (9,807) | 614 | |||||||||
Accounts payable | 1,567 | (1,805) | |||||||||
Accrued expenses and other | (25,790) | (17,734) | |||||||||
Net cash provided by (used in) operating activities | (4,132) | 16,387 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of available-for-sale securities | (135,849) | (118,926) | |||||||||
Proceeds from sales and maturities of available-for-sale securities | 9,648 | 42,850 | |||||||||
Capitalized internal-use software costs | (9,159) | (9,953) | |||||||||
Purchases of property and equipment | (3,220) | (3,447) | |||||||||
Acquisitions of businesses, net of cash acquired | (59,581) | — | |||||||||
Net cash used in investing activities | (198,161) | (89,476) | |||||||||
Cash flows from financing activities: | |||||||||||
Net change in client fund obligations | 1,425,782 | (1,688,339) | |||||||||
Taxes paid related to net share settlement of equity awards | (60,809) | (74,071) | |||||||||
Payment of debt issuance costs | (9) | (855) | |||||||||
Net cash provided by (used in) financing activities | 1,364,964 | (1,763,265) | |||||||||
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents | 1,162,671 | (1,836,354) | |||||||||
Cash, cash equivalents and funds held for clients' cash and cash equivalents—beginning of period | 1,945,881 | 3,793,453 | |||||||||
Cash, cash equivalents and funds held for clients' cash and cash equivalents—end of period | $ | 3,108,552 | $ | 1,957,099 | |||||||
Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||||||||||
Purchases of property and equipment, accrued but not paid | $ | 3,079 | $ | — | |||||||
Liabilities assumed for acquisitions | $ | 2,165 | $ | 117 | |||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash paid for interest | $ | 63 | $ | 62 | |||||||
Cash paid for income taxes | $ | 13 | $ | 19 | |||||||
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets | |||||||||||
Cash and cash equivalents | $ | 66,431 | $ | 65,484 | |||||||
Funds held for clients' cash and cash equivalents | 3,042,121 | 1,891,615 | |||||||||
Total cash, cash equivalents and funds held for clients' cash and cash equivalents | $ | 3,108,552 | $ | 1,957,099 |
Three Months Ended September 30, | |||||||||||
2021 | 2022 | ||||||||||
Reconciliation from Gross profit to Adjusted gross profit: | |||||||||||
Gross profit | $ | 118,448 | $ | 168,737 | |||||||
Amortization of capitalized internal-use software costs | 6,128 | 7,042 | |||||||||
Amortization of certain acquired intangibles | — | 1,854 | |||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 3,527 | 5,045 | |||||||||
Other items (1) | 12 | 19 | |||||||||
Adjusted gross profit | $ | 128,115 | $ | 182,697 |
Three Months Ended September 30, | |||||||||||
2021 | 2022 | ||||||||||
Reconciliation from Operating income to Non-GAAP Operating income: | |||||||||||
Operating income | $ | 10,252 | $ | 7,089 | |||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 23,756 | 44,978 | |||||||||
Amortization of acquired intangibles | 1,352 | 2,771 | |||||||||
Other items (2) | 803 | 265 | |||||||||
Non-GAAP Operating income | $ | 36,163 | $ | 55,103 |
Three Months Ended September 30, | |||||||||||
2021 | 2022 | ||||||||||
Reconciliation from Net income to Non-GAAP Net income: | |||||||||||
Net income | $ | 30,932 | $ | 30,352 | |||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 23,756 | 44,978 | |||||||||
Amortization of acquired intangibles | 1,352 | 2,771 | |||||||||
Other items (2) | 803 | 265 | |||||||||
Income tax effect on adjustments (3) | (23,688) | (22,935) | |||||||||
Non-GAAP Net income | $ | 33,155 | $ | 55,431 |
Three Months Ended September 30, | |||||||||||
2021 | 2022 | ||||||||||
Calculation of Non-GAAP Net income per share: | |||||||||||
Non-GAAP Net income | $ | 33,155 | $ | 55,431 | |||||||
Diluted weighted-average number of common shares | 56,506 | 56,664 | |||||||||
Non-GAAP Net income per share | $ | 0.59 | $ | 0.98 |
Three Months Ended September 30, | |||||||||||
2021 | 2022 | ||||||||||
Reconciliation from Net income to Adjusted EBITDA: | |||||||||||
Net income | $ | 30,932 | $ | 30,352 | |||||||
Interest expense | 108 | 187 | |||||||||
Income tax benefit | (20,797) | (23,426) | |||||||||
Depreciation and amortization expense | 11,322 | 14,267 | |||||||||
EBITDA | 21,565 | 21,380 | |||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 23,756 | 44,978 | |||||||||
Other items (2) | 803 | 265 | |||||||||
Adjusted EBITDA | $ | 46,124 | $ | 66,623 |
Three Months Ended September 30, | |||||||||||
2021 | 2022 | ||||||||||
Reconciliation of Non-GAAP sales and marketing: | |||||||||||
Sales and marketing | $ | 49,885 | $ | 71,063 | |||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 6,020 | 10,500 | |||||||||
Other items (1) | 26 | 22 | |||||||||
Non-GAAP sales and marketing | $ | 43,839 | $ | 60,541 |
Three Months Ended September 30, | |||||||||||
2021 | 2022 | ||||||||||
Reconciliation of Non-GAAP total research and development: | |||||||||||
Research and development | $ | 23,076 | $ | 40,093 | |||||||
Capitalized internal-use software costs | 9,159 | 9,953 | |||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 4,774 | 10,234 | |||||||||
Other items (1) | 143 | 218 | |||||||||
Non-GAAP total research and development | $ | 27,318 | $ | 39,594 |
Three Months Ended September 30, | |||||||||||
2021 | 2022 | ||||||||||
Reconciliation of Non-GAAP general and administrative: | |||||||||||
General and administrative | $ | 35,235 | $ | 50,492 | |||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 9,435 | 19,199 | |||||||||
Amortization of certain acquired intangibles | 1,352 | 917 | |||||||||
Other items (2) | 622 | 6 | |||||||||
Non-GAAP general and administrative | $ | 23,826 | $ | 30,370 |
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Cover |
Nov. 03, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Nov. 03, 2022 |
Entity Registrant Name | PAYLOCITY HOLDING CORPORATION |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-36348 |
Entity Tax Identification Number | 46-4066644 |
Entity Address, Address Line One | 1400 American Lane |
Entity Address, City or Town | Schaumburg |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 60173 |
City Area Code | (847) |
Local Phone Number | 463-3200 |
Title of 12(b) Security | Common Stock, par value $0.001 per share |
Trading Symbol | PCTY |
Security Exchange Name | NASDAQ |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001591698 |
Amendment Flag | false |
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