Paylocity Holding Corporation, a leading provider of cloud-based HR, payroll, and spend management software, reported strong financial results for Q2 FY25, ending December 31, 2024. With double-digit revenue growth, new product launches, and a raised full-year outlook, Paylocity continues its momentum.
Q2 FY25 Financial Highlights
- Total revenue: $377.0M (+16% YoY)
- Recurring & other revenue: $347.7M (+17% YoY)
- GAAP operating income: $46.6M
- Non-GAAP operating income: $101.1M (+9% YoY)
- GAAP net income: $37.5M ($0.66 per share)
- Adjusted EBITDA: $126.2M (+12% YoY)
- Cash & cash equivalents: $482.4M
- Long-term debt: $325.0M (acquisition of Airbase)
Key Growth Drivers
- Strong Q2 sales and operational execution
- New product launches, including Benefits Decision Support & Headcount Planning
- Average revenue per client increased to $600 PEPY, hitting the company’s August 2023 target
- Stable macroeconomic environment driving consistent demand
Business Outlook: Strong Growth Ahead
Q3 FY25 Projections:
- Recurring & other revenue: $410M – $415M (+12% YoY)
- Total revenue: $439M – $444M (+10% YoY)
- Adjusted EBITDA: $171M – $175M
FY25 Projections:
- Recurring & other revenue: $1.445B – $1.455B (+13% YoY)
- Total revenue: $1.558B – $1.568B (+11% YoY)
- Adjusted EBITDA: $542M – $550M
With robust sales performance, product innovation, and strong financials, Paylocity is well-positioned for continued growth in FY25. The company’s focus on differentiation, operational execution, and client value reinforces its market leadership in cloud-based HR and payroll solutions.
