Table of Contents :
• Stock Rating & Target Price
• Investment Thesis
• Fundamental Models Used
• Company Description
• Corporate Timeline
• Key Metrics (KPI ) and Recently Reported Earnings Review
• Business Highlights, Strategic Announcements & Outlook
• Quarter-over-Quarter (Q-o-Q) and Year-over-Year (Y-o-Y) Growth Analysis
• Key Catalysts Driving Growth
• Historical Financial Statement Analysis & CAGR Trends
• Quarterly Key Financial Ratios and Performance Metrics
• Annual Financial Performance Analysis: Horizontal and Vertical Financial Analysis, Trends
• Financial Forecasts
• Annual Forecasts: Income Statement
• Annual Forecasts: Cash Flow Statements
• Net Debt Levels
• A Closer Look at DCF: Our Assumptions and Methodology
• Terminal Value Calculation
• Target Price Analysis
• Valuation Multiples
• Supplementary Valuation Analysis: Multiples Approach
• Scenario/Sensitivity Analysis – Base Case , Bull Case ,Bear Case
• Holistic Peer Review & Trading Comps: Financial Data, Operational Metrics, and Valuation Multiples
• Implied Price Per Share
• Ownership Activity/ Insider Trades
• Ownership Summary
• An analysis of ESG Risk Rating
• Key Professionals
• Key Board Members
• Key Risks Considerations
• Analyst Ratings
• Analyst Industry Views
• Disclosures
Paylocity (PCTY): Airbase Integration Redefines TAM Expansion – Will CFO-Centric Innovation Unlock Sustainable Growth?
Paylocity began FY25 with strong results, reporting total revenue of $363 million (+14.3% YoY), beating estimates by $6.71 million, and exceeding guidance by $4.5 million at the high end. Recurring revenue grew 14.2%, reflecting sustained traction in its HCM platform and early enthusiasm for its Airbase acquisition. Adjusted EPS of $1.66 surpassed projections by $0.25, while GAAP EPS of $0.88 beat by $0.09. Adjusted EBITDA reached $129 million, delivering a 35.5% margin and 250 bps of leverage. EBITDA margins excluding interest income expanded 270 bps to 29.8%, driven by scaling efficiencies in G&A and disciplined sales and marketing investments. Paylocity raised FY25 revenue guidance to $1.535–$1.550 billion (+10% YoY) and adjusted EBITDA guidance to $530–$540 million, reflecting both prudence and room for outperformance. Key drivers include Airbase’s potential to contribute ~1% to FY25 revenue and its long-term cross-sell opportunity to 40,000 clients, targeting 10–20% penetration. Innovation like the Paylocity AI assistant enhances client retention and satisfaction. While macro uncertainties and elongated deal cycles warrant monitoring, stable demand trends and a strong referral pipeline reinforce growth potential. Can Paylocity fully capitalize on Airbase’s integration, TAM expansion, and CFO-centric innovation to sustain its multi-year growth trajectory and deliver shareholder value?
