Paylocity’s (NASDAQ:PCTY) Q1 Sales Beat Estimates, Provides Encouraging Quarterly Revenue Guidance

Payroll and human resources software provider, Paylocity (NASDAQ:PCTY) announced better-than-expected revenue in Q1 CY2025, with sales up 13.3% year on year to $454.5 million. Guidance for next quarter’s revenue was better than expected at $388 million at the midpoint, 1.5% above analysts’ estimates. Its non-GAAP profit of $2.43 per share was 14.8% above analysts’ consensus estimates.

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Paylocity (PCTY) Q1 CY2025 Highlights:

“Our solid results continued into the third quarter of fiscal 25, with recurring revenue growth of 15%, total revenue growth of 13% and increased revenue and profitability guidance for the fiscal year. We continue to see strong channel performance, as referrals, primarily from benefit brokers and financial advisors, once again represented more than 25% of new business for the third quarter, driven by our modern platform, third-party integrations and API capabilities. We remain committed to investing in and supporting the broker channel going forward – with the goal of continuing to deliver real value and true partnership and support to our referring brokers and clients. Additionally, we continue to return capital to shareholders with $150 million or approximately 800,000 shares repurchased through April of this fiscal year,” said Toby Williams, President and Chief Executive Officer of Paylocity.

Company Overview

Founded by payroll software veteran Steve Sarowitz in 1997, Paylocity (NASDAQ:PCTY) is a provider of payroll and HR software for small and medium-sized enterprises.

Sales Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, Paylocity’s 25.2% annualized revenue growth over the last three years was solid. Its growth beat the average software company and shows its offerings resonate with customers.

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