Paylocity (PCTY) Q4 Earnings Lag, Revenues Top Estimates
Paylocity Holding PCTY reported fourth-quarter fiscal 2018 results, wherein the top line surpassed the Zacks Consensus Estimate but the bottom line missed the same.
The company reported non-GAAP earnings of 11 cents per share, missing the Zacks Consensus Estimate of 12 cents. The figure, however, increased 22.2% from the year-ago quarter.
Paylocity’s quarterly revenues of $96.6 million increased 27% year over year. The figure topped the Zacks Consensus Estimate of $93 million. Notably, revenues came above the guided range of $92.6-$93.6 million, driven by a 26.7% rise in recurring revenues (96.2% of total revenues) and a 36.2% increase in implementation and other revenues.
During full-fiscal 2018, the company generated $377.5 million in revenues and 75 cents in non-GAAP earnings per share.
Paylocity Holding Corporation Price, Consensus and EPS Surprise
Paylocity Holding Corporation Price, Consensus and EPS Surprise | Paylocity Holding Corporation Quote
The company’s non-GAAP gross profit came in at $62.9 million, up 33.5% year over year. Non-GAAP gross margin expanded 310 basis points year over year to 65.1%.
Adjusted EBITDA increased 36.5% from the year-ago quarter to $15.7 million.
Non-GAAP operating income was $8.1 million compared with $5.5 million a year ago.
Balance Sheet and Cash Flow
Paylocity exited fiscal 2018 with cash and cash equivalents of $137.2 million compared with $129.5 million in the previous fiscal.
It generated $97.9 million of cash flow from operational activities during the fiscal compared with $62 million a year ago. Free cash flow was $48.8 million for fiscal 2018.
Paylocity announced the approval of stock repurchase worth $35 million through Aug 14, 2018.
The company provided guidance for the fiscal first quarter and fiscal 2019. For the fiscal first quarter, Paylocity expects revenues in the range of $97.5-$98.5 million. Adjusted EBITDA is projected in the band of $20-$21 million.
For fiscal 2019, it anticipates revenues in the range of $451-$453 million. Adjusted EBITDA is projected to be $126.5-$128.5 million.
Zacks Rank and Stocks to Consider
Paylocity currently carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the broader Computer and Technology sector are Paycom Software, Inc. PAYC, Qualys, Inc. QLYS and Fortinet, Inc. FTNT, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth for Paycom, Qualys and Fortinet is projected to be 24.82%, 8% and 16.75%, respectively.
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