Paylocity Holding Reports Q2 GAAP EPS of $0.28 in 2023, Missing Estimate by $0.01.
February 6, 2023
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Paylocity Holding ($NASDAQ:PCTY) Corporation is a leading provider of cloud-based payroll and human capital management (HCM) software solutions for medium-sized organizations. The company missed analysts’ estimates of $0.29 per share for the quarter. Overall, Paylocity Holding Corporation reported a solid second quarter fiscal 2023 performance, although its GAAP EPS fell short of estimates. The company also provided optimistic guidance for fiscal 2023 with strong revenue growth expectations.
Market Price
Currently, the media exposure of the company is largely negative, with investors and analysts skeptical of their future performance. Despite the discouraging news, the stock opened at $224.7 on Thursday and closed at $226.0, up by 3.0% from the previous closing price of $219.5. This increase in stock price could be attributed to investors’ optimism in the near-term outlook of Paylocity Holding, as well as a general uptick in the overall market. Paylocity Holding is an American software company that provides cloud-based payroll and human capital management software solutions to businesses. The company has seen immense growth in recent years, but its earnings have been hampered by the current economic climate. In spite of the current situation, investors are confident that Paylocity Holding can make a strong comeback in the near future.
As such, the stock has been slowly increasing in value despite the reported Q2 earnings miss. The company is also making investments in research and development to ensure that its services remain competitive and attractive to potential customers. Overall, Paylocity Holding is in an advantageous position to grow and expand despite the economic challenges it currently faces. With a history of delivering quality services and an innovative approach to scaling its business, there is no doubt that it will continue to be a leader in its field for years to come. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Paylocity Holding. More…
| Total Revenues | Net Income | Net Margin |
| 1k | 95.94 | 9.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Paylocity Holding. More…
| Operations | Investing | Financing |
| 206.95 | -393.62 | 1.08k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Paylocity Holding. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.94k | 3.26k | 12.15 |
Key Ratios Snapshot
Some of the financial key ratios for Paylocity Holding are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.5% | 16.7% | 9.1% |
| FCF Margin | ROE | ROA |
| 15.6% | 8.9% | 1.5% |
Analysis
GoodWhale has conducted an analysis of PAYLOCITY HOLDING‘s well-being and based on the Star Chart, the company has a high health score of 8/10 with regard to its cash flows and debt. It is capable to pay off debt and fund future operations. PAYLOCITY HOLDING is also classified as ‘gorilla’, a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Investors who are looking for growth potential will be interested in PAYLOCITY HOLDING as it is strong in growth and profitability. As for asset, it is medium, and weak in dividend. Such investors may include venture capitalists, angel investors, private equity investors and other growth-oriented investors. As PAYLOCITY HOLDING offers potential for long-term growth, these investors may be willing to invest in the company. Given its strong competitive advantage and potential for growth, PAYLOCITY HOLDING is also an attractive target for strategic investors who are looking to expand their operations. Such strategic investors may include larger companies in the same industry who are looking to acquire smaller companies with strong market position. Therefore, strategic investors may be interested in PAYLOCITY HOLDING as well. More…
Peers
Paylocity Holding Corp is a company that provides cloud-based software solutions for payroll and human capital management. The company competes with other companies in the same industry, such as Paycom Software Inc, Xero Ltd, and Paycor HCM Inc.
– Paycom Software Inc ($NYSE:PAYC)
Paycom Software Inc is a publicly traded company with a market cap of 17.93B as of 2022. The company has a Return on Equity of 19.62%. Paycom Software Inc is a provider of cloud-based human capital management software. The company’s software is used by businesses to manage payroll, benefits, and human resources.
– Xero Ltd ($ASX:XRO)
As of 2022, Xero Ltd has a market cap of 10.98B and a Return on Equity of 2.38%. The company provides an online accounting software for small businesses and their advisors. The software is designed to save businesses time and money by automating tasks such as bookkeeping, invoicing, and tax preparation.
– Paycor HCM Inc ($NASDAQ:PYCR)
Paycor HCM Inc is a provider of human capital management solutions. The company has a market cap of 4.91B as of 2022 and a Return on Equity of -6.69%. Paycor HCM Inc provides solutions for payroll, benefits, talent, and time and labor management. The company offers its solutions to businesses of all sizes in the United States.
Summary
Paylocity Holding is a payroll and human capital management technology provider. Despite the negative media exposure surrounding the company, the stock price moved up on the same day. Investors should be cautious in investing in Paylocity Holding due to its recent earnings miss and the uncertainty surrounding its operations. However, given its strong balance sheet and its position in the payroll and human capital management technology industry, it could be a good long-term investment for those willing to take on the risk.
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