(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: May 4, 2023 | By: | /s/ Ryan Glenn | ||||||
Ryan Glenn | ||||||||
Chief Financial Officer and Treasurer |
June 30, 2022 | March 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 139,756 | $ | 233,692 | |||||||
Accounts receivable, net | 15,754 | 27,449 | |||||||||
Deferred contract costs | 59,501 | 73,574 | |||||||||
Prepaid expenses and other | 28,896 | 28,880 | |||||||||
Total current assets before funds held for clients | 243,907 | 363,595 | |||||||||
Funds held for clients | 3,987,776 | 3,202,415 | |||||||||
Total current assets | 4,231,683 | 3,566,010 | |||||||||
Capitalized internal-use software, net | 61,985 | 78,374 | |||||||||
Property and equipment, net | 62,839 | 60,067 | |||||||||
Operating lease right-of-use assets | 49,210 | 45,006 | |||||||||
Intangible assets, net | 45,475 | 37,164 | |||||||||
Goodwill | 101,949 | 102,054 | |||||||||
Long-term deferred contract costs | 229,067 | 280,310 | |||||||||
Long‑term prepaid expenses and other | 7,746 | 6,842 | |||||||||
Deferred income tax assets | 19,060 | 17,690 | |||||||||
Total assets | $ | 4,809,014 | $ | 4,193,517 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 8,374 | $ | 7,968 | |||||||
Accrued expenses | 124,384 | 144,281 | |||||||||
Total current liabilities before client fund obligations | 132,758 | 152,249 | |||||||||
Client fund obligations | 3,987,776 | 3,202,415 | |||||||||
Total current liabilities | 4,120,534 | 3,354,664 | |||||||||
Long-term operating lease liabilities | 69,119 | 64,060 | |||||||||
Other long-term liabilities | 3,681 | 3,830 | |||||||||
Deferred income tax liabilities | 2,217 | 2,217 | |||||||||
Total liabilities | $ | 4,195,551 | $ | 3,424,771 | |||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2022 and March 31, 2023 | $ | — | $ | — | |||||||
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2022 and March 31, 2023; 55,190 shares issued and outstanding at June 30, 2022 and 55,810 shares issued and outstanding at March 31, 2023 | 55 | 56 | |||||||||
Additional paid-in capital | 289,843 | 341,494 | |||||||||
Retained earnings | 325,868 | 429,436 | |||||||||
Accumulated other comprehensive loss | (2,303) | (2,240) | |||||||||
Total stockholders' equity | $ | 613,463 | $ | 768,746 | |||||||
Total liabilities and stockholders’ equity | $ | 4,809,014 | $ | 4,193,517 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Recurring and other revenue | $ | 244,962 | $ | 314,170 | $ | 620,827 | $ | 816,010 | |||||||||||||||
Interest income on funds held for clients | 1,008 | 25,687 | 2,877 | 50,135 | |||||||||||||||||||
Total revenues | 245,970 | 339,857 | 623,704 | 866,145 | |||||||||||||||||||
Cost of revenues | 75,538 | 95,714 | 209,608 | 270,333 | |||||||||||||||||||
Gross profit | 170,432 | 244,143 | 414,096 | 595,812 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing | 52,752 | 74,064 | 154,856 | 220,821 | |||||||||||||||||||
Research and development | 25,670 | 42,323 | 74,024 | 123,445 | |||||||||||||||||||
General and administrative | 44,632 | 47,379 | 119,448 | 145,872 | |||||||||||||||||||
Total operating expenses | 123,054 | 163,766 | 348,328 | 490,138 | |||||||||||||||||||
Operating income | 47,378 | 80,377 | 65,768 | 105,674 | |||||||||||||||||||
Other income (expense) | (311) | 1,139 | (800) | 971 | |||||||||||||||||||
Income before income taxes | 47,067 | 81,516 | 64,968 | 106,645 | |||||||||||||||||||
Income tax expense (benefit) | 12,221 | 23,900 | (10,663) | 3,077 | |||||||||||||||||||
Net income | $ | 34,846 | $ | 57,616 | $ | 75,631 | $ | 103,568 | |||||||||||||||
Other comprehensive income (loss), net of tax | (1,218) | 1,919 | (1,628) | 63 | |||||||||||||||||||
Comprehensive income | $ | 33,628 | $ | 59,535 | $ | 74,003 | $ | 103,631 | |||||||||||||||
Net income per share: | |||||||||||||||||||||||
Basic | $ | 0.63 | $ | 1.03 | $ | 1.38 | $ | 1.86 | |||||||||||||||
Diluted | $ | 0.62 | $ | 1.02 | $ | 1.34 | $ | 1.83 | |||||||||||||||
Weighted-average shares used in computing net income per share: | |||||||||||||||||||||||
Basic | 55,114 | 55,788 | 54,996 | 55,653 | |||||||||||||||||||
Diluted | 56,367 | 56,555 | 56,437 | 56,560 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||||||||||||||
Cost of revenues | $ | 2,978 | $ | 4,341 | $ | 9,832 | $ | 14,696 | |||||||||||||||
Sales and marketing | 5,213 | 9,038 | 16,982 | 30,409 | |||||||||||||||||||
Research and development | 4,911 | 8,993 | 15,131 | 30,699 | |||||||||||||||||||
General and administrative | 11,538 | 11,161 | 32,921 | 46,688 | |||||||||||||||||||
Total stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | $ | 24,640 | $ | 33,533 | $ | 74,866 | $ | 122,492 |
Nine Months Ended March 31, | |||||||||||
2022 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 75,631 | $ | 103,568 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Stock-based compensation expense | 70,197 | 116,002 | |||||||||
Depreciation and amortization expense | 36,419 | 44,481 | |||||||||
Deferred income tax expense (benefit) | (10,882) | 1,308 | |||||||||
Provision for credit losses | 238 | 864 | |||||||||
Net amortization of premiums (accretion of discounts) on available-for-sale securities | 342 | (3,602) | |||||||||
Amortization of debt issuance costs | 136 | 221 | |||||||||
Other | 286 | 1,346 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (9,654) | (12,548) | |||||||||
Deferred contract costs | (49,205) | (62,929) | |||||||||
Prepaid expenses and other | (9,418) | 2,031 | |||||||||
Accounts payable | 141 | 10 | |||||||||
Accrued expenses and other | 1,163 | 15,355 | |||||||||
Net cash provided by operating activities | 105,394 | 206,107 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of available-for-sale securities | (215,538) | (557,403) | |||||||||
Proceeds from sales and maturities of available-for-sale securities | 85,875 | 298,113 | |||||||||
Capitalized internal-use software costs | (26,285) | (30,726) | |||||||||
Purchases of property and equipment | (15,355) | (8,769) | |||||||||
Acquisitions of businesses, net of cash acquired | (107,576) | — | |||||||||
Other investing activities | (2,500) | 33 | |||||||||
Net cash used in investing activities | (281,379) | (298,752) | |||||||||
Cash flows from financing activities: | |||||||||||
Net change in client fund obligations | 2,564,829 | (785,361) | |||||||||
Borrowings under credit facility | 50,000 | — | |||||||||
Repayment of credit facility | (50,000) | — | |||||||||
Proceeds from employee stock purchase plan | 7,216 | 8,450 | |||||||||
Taxes paid related to net share settlement of equity awards | (68,509) | (84,174) | |||||||||
Payment of debt issuance costs | (64) | (873) | |||||||||
Net cash provided by (used in) financing activities | 2,503,472 | (861,958) | |||||||||
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents | 2,327,487 | (954,603) | |||||||||
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 | $ | 4,273,368 | $ | 2,838,850 | |||||||
Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||||||||||
Purchases of property and equipment and internal-use software, accrued but not paid | $ | 1,251 | $ | 3,115 | |||||||
Liabilities assumed for acquisitions | $ | 4,470 | $ | 117 | |||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash paid for interest | $ | 257 | $ | 282 | |||||||
Cash paid (refunds received) for income taxes | $ | (115) | $ | 573 | |||||||
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets | |||||||||||
Cash and cash equivalents | $ | 96,465 | $ | 233,692 | |||||||
Funds held for clients' cash and cash equivalents | 4,176,903 | 2,605,158 | |||||||||
Total cash, cash equivalents and funds held for clients' cash and cash equivalents | $ | 4,273,368 | $ | 2,838,850 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||||||||||||||
Reconciliation from Gross profit to Adjusted gross profit: | |||||||||||||||||||||||
Gross profit | $ | 170,432 | $ | 244,143 | $ | 414,096 | $ | 595,812 | |||||||||||||||
Amortization of capitalized internal-use software costs | 6,308 | 7,984 | 18,523 | 22,504 | |||||||||||||||||||
Amortization of certain acquired intangibles | — | 1,854 | — | 5,561 | |||||||||||||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 2,978 | 4,341 | 9,832 | 14,696 | |||||||||||||||||||
Other items (1) | 46 | — | 94 | 19 | |||||||||||||||||||
Adjusted gross profit | $ | 179,764 | $ | 258,322 | $ | 442,545 | $ | 638,592 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||||||||||||||
Reconciliation from Operating income to Non-GAAP Operating income: | |||||||||||||||||||||||
Operating income | $ | 47,378 | $ | 80,377 | $ | 65,768 | $ | 105,674 | |||||||||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 24,640 | 33,533 | 74,866 | 122,492 | |||||||||||||||||||
Amortization of acquired intangibles | 2,630 | 2,770 | 5,982 | 8,311 | |||||||||||||||||||
Other items (2) | 806 | 30 | 1,609 | 446 | |||||||||||||||||||
Non-GAAP Operating income | $ | 75,454 | $ | 116,710 | $ | 148,225 | $ | 236,923 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||||||||||||||
Reconciliation from Net income to Non-GAAP Net income: | |||||||||||||||||||||||
Net income | $ | 34,846 | $ | 57,616 | $ | 75,631 | $ | 103,568 | |||||||||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 24,640 | 33,533 | 74,866 | 122,492 | |||||||||||||||||||
Amortization of acquired intangibles | 2,630 | 2,770 | 5,982 | 8,311 | |||||||||||||||||||
Other items (2) | 806 | 30 | 1,817 | 446 | |||||||||||||||||||
Income tax effect on adjustments (3) | 5,869 | 4,540 | (20,060) | (17,899) | |||||||||||||||||||
Non-GAAP Net income | $ | 68,791 | $ | 98,489 | $ | 138,236 | $ | 216,918 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||||||||||||||
Calculation of Non-GAAP Net income per share: | |||||||||||||||||||||||
Non-GAAP Net income | $ | 68,791 | $ | 98,489 | $ | 138,236 | $ | 216,918 | |||||||||||||||
Diluted weighted-average number of common shares | 56,367 | 56,555 | 56,437 | 56,560 | |||||||||||||||||||
Non-GAAP Net income per share | $ | 1.22 | $ | 1.74 | $ | 2.45 | $ | 3.84 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||||||||||||||
Reconciliation from Net income to Adjusted EBITDA: | |||||||||||||||||||||||
Net income | $ | 34,846 | $ | 57,616 | $ | 75,631 | $ | 103,568 | |||||||||||||||
Interest expense | 168 | 187 | 386 | 564 | |||||||||||||||||||
Income tax expense (benefit) | 12,221 | 23,900 | (10,663) | 3,077 | |||||||||||||||||||
Depreciation and amortization expense | 13,036 | 15,387 | 36,419 | 44,481 | |||||||||||||||||||
EBITDA | 60,271 | 97,090 | 101,773 | 151,690 | |||||||||||||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 24,640 | 33,533 | 74,866 | 122,492 | |||||||||||||||||||
Other items (2) | 806 | 30 | 1,817 | 446 | |||||||||||||||||||
Adjusted EBITDA | $ | 85,717 | $ | 130,653 | $ | 178,456 | $ | 274,628 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||||||||||||||
Reconciliation of Non-GAAP sales and marketing: | |||||||||||||||||||||||
Sales and marketing | $ | 52,752 | $ | 74,064 | $ | 154,856 | $ | 220,821 | |||||||||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 5,213 | 9,038 | 16,982 | 30,409 | |||||||||||||||||||
Other items (1) | 60 | — | 162 | 22 | |||||||||||||||||||
Non-GAAP sales and marketing | $ | 47,479 | $ | 65,026 | $ | 137,712 | $ | 190,390 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||||||||||||||
Reconciliation of Non-GAAP total research and development: | |||||||||||||||||||||||
Research and development | $ | 25,670 | $ | 42,323 | $ | 74,024 | $ | 123,445 | |||||||||||||||
Capitalized internal-use software costs | 8,319 | 10,986 | 26,285 | 30,726 | |||||||||||||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 4,911 | 8,993 | 15,131 | 30,699 | |||||||||||||||||||
Other items (1) | 218 | 30 | 686 | 399 | |||||||||||||||||||
Non-GAAP total research and development | $ | 28,860 | $ | 44,286 | $ | 84,492 | $ | 123,073 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2023 | 2022 | 2023 | ||||||||||||||||||||
Reconciliation of Non-GAAP general and administrative: | |||||||||||||||||||||||
General and administrative | $ | 44,632 | $ | 47,379 | $ | 119,448 | $ | 145,872 | |||||||||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 11,538 | 11,161 | 32,921 | 46,688 | |||||||||||||||||||
Amortization of certain acquired intangibles | 2,630 | 916 | 5,982 | 2,750 | |||||||||||||||||||
Other items (2) | 482 | — | 667 | 6 | |||||||||||||||||||
Non-GAAP general and administrative | $ | 29,982 | $ | 35,302 | $ | 79,878 | $ | 96,428 |
Nine Months Ended March 31, | ||||||||||||||
2022 | 2023 | |||||||||||||
Reconciliation of Free Cash Flow: | ||||||||||||||
Net cash provided by operating activities | $ | 105,394 | $ | 206,107 | ||||||||||
Capitalized internal-use software costs | (26,285) | (30,726) | ||||||||||||
Purchases of property and equipment | (15,355) | (8,769) | ||||||||||||
Free Cash Flow | $ | 63,754 | $ | 166,612 |
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Cover |
May 04, 2023 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | May 04, 2023 |
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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