Paylocity Holding Corporation (PCTY) Bundle
A Brief History of Paylocity Holding Corporation (PCTY)
Founding and Early Years
Paylocity Holding Corporation was founded in 1997 bySteve Beauchamp and a group of partners in Arlington Heights, Illinois. The company launched its first payroll software for small to mid-sized businesses, focusing on providing a cloud-based platform.
Growth and Development
As of 2021, Paylocity reported a client base of over 20,000 organizations across various sectors. The company expanded its product offerings to include a comprehensive human capital management (HCM) solution that integrates payroll, benefits, talent management, and workforce management.
Public Offering
Paylocity went public on the NASDAQ under the ticker symbol PCTY on March 12, 2014.
The initial public offering (IPO) raised approximately $82 million at an initial price of $18 per share.
Financial Performance
For the fiscal year ending June 30, 2023, Paylocity reported:
- Total revenue: $550.6 million
- Net income: $41.2 million
- Adjusted EBITDA: $139.1 million
Acquisitions
Paylocity completed several strategic acquisitions to enhance its product offerings:
- In 2020, Paylocity acquired HR Service Solutions to expand its benefits administration capabilities.
- In 2021, the company acquired TPG Growth's technology portfolio, further boosting its software development.
Market Position and Competitive Landscape
According to Gartner, Paylocity is positioned as a strong competitor in the HCM market, alongside players like ADP and Paychex.
The estimated market share of Paylocity in the HCM sector as of 2023 was around 6%.
| Year | Total Revenue ($ million) | Net Income ($ million) | Adjusted EBITDA ($ million) |
|---|---|---|---|
| 2019 | 314.1 | 20.5 | 89.3 |
| 2020 | 391.6 | 27.8 | 103.4 |
| 2021 | 482.1 | 33.7 | 112.4 |
| 2022 | 492.4 | 25.4 | 122.7 |
| 2023 | 550.6 | 41.2 | 139.1 |
Recent Developments
In July 2023, Paylocity announced a partnership with Google Cloud to enhance its data analytics capabilities within its platform.
The company is currently focused on expanding its AI-driven features, aiming to improve employee engagement and streamline HR processes.
A Who Owns Paylocity Holding Corporation (PCTY)
Ownership Structure
Paylocity Holding Corporation (PCTY) has a diverse ownership structure that includes institutional investors, individual shareholders, and company insiders. The most recent data available as of October 2023 reveals the following distribution:
| Ownership Type | Percentage Owned | Number of Shares |
|---|---|---|
| Institutional Investors | 79.4% | 15,020,000 |
| Individual Investors | 14.6% | 2,700,000 |
| Insider Ownership | 6.0% | 1,150,000 |
Major Institutional Shareholders
The following institutions are among the largest shareholders of Paylocity:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 3,500,000 | 17.5% |
| BlackRock, Inc. | 2,800,000 | 14.0% |
| Wellington Management Co. LLP | 2,200,000 | 11.0% |
| J.P. Morgan Asset Management | 1,600,000 | 8.0% |
| State Street Global Advisors | 1,400,000 | 7.0% |
Insider Ownership
Insider ownership at Paylocity is also significant. The following table presents key insiders and their respective holdings:
| Insider Name | Position | Shares Owned |
|---|---|---|
| William J. Hite | CEO | 400,000 |
| Michael O. Lichtenstein | President | 300,000 |
| Kristin M. J. Akin | COO | 250,000 |
| Joseph B. Egan | CFO | 200,000 |
| Shirley Tan | SVP, HR | 150,000 |
Recent Share Performance
The recent stock performance of Paylocity also provides insight into its ownership dynamics:
| Metric | Value |
|---|---|
| Current Share Price | $45.75 |
| Market Capitalization | $2.9 Billion |
| 52-Week High | $60.25 |
| 52-Week Low | $38.00 |
Conclusion of Ownership Insights
As per the latest data, ownership of Paylocity Holding Corporation is highly concentrated among institutional investors with a significant presence of insider holdings, reflecting a robust investment in the company's future performance.
Paylocity Holding Corporation (PCTY) Mission Statement
Overview of Mission Statement
The mission statement of Paylocity Holding Corporation is to elevate the workplace experience through innovative payroll and human capital management (HCM) solutions designed to empower organizations of all sizes.
Core Values
- Integrity: Upholding honesty and transparency in all business dealings.
- Innovation: Committed to delivering cutting-edge technology and solutions.
- Customer-Centric: Focused on providing exceptional service to clients.
- Collaboration: Encouraging teamwork and partnerships both internally and with clients.
- Excellence: Striving for the highest standards in products and services.
Financial Performance
As of the fiscal year ending June 30, 2023, Paylocity reported the following financial highlights:
| Metric | Amount (in millions) |
|---|---|
| Revenue | $486.2 |
| Net Income | $38.5 |
| Operating Income | $66.9 |
| Total Assets | $823.4 |
| Market Capitalization | $4.2 billion |
Strategic Goals
- Expand product offerings to include more comprehensive HCM solutions.
- Increase market penetration in small to mid-sized businesses.
- Enhance user experience through continuous improvement of the software platform.
- Strengthen customer support and engagement initiatives.
- Invest in technology innovation and integration capabilities.
Market Position
Paylocity operates within the human capital management industry, which is projected to reach a market value of approximately $19.7 billion by 2027, growing at a CAGR of 10.5% from 2020.
Client Base
As of 2023, Paylocity serves over 28,000 clients across various industries, including:
- Healthcare
- Manufacturing
- Retail
- Technology
- Finance
Employee Engagement
Paylocity emphasizes employee engagement, with a reported employee satisfaction rate of 85%, significantly above the industry average.
Research and Development
In FY 2023, Paylocity allocated approximately $30 million towards research and development, focusing on enhancing product features and ensuring compliance with regulatory standards.
Corporate Social Responsibility
Paylocity is committed to corporate social responsibility, having invested over $1 million in community outreach programs in 2023.
How Paylocity Holding Corporation (PCTY) Works
Overview of Paylocity
Overview of Paylocity
Paylocity Holding Corporation, founded in 1997, operates as a cloud-based payroll and human capital management software provider. As of 2023, the company serves over 40,000 clients across various industries
.Service Offerings
Paylocity provides a range of services including:
- Payroll processing
- Human resources management
- Time and labor tracking
- Employee self-service portals
- Talent management
Financial Performance
As of the fiscal year ending June 30, 2023, Paylocity reported:
- Total revenue: $509.3 million
- Net income: $51.2 million
- Adjusted EBITDA: $153.1 million
Stock Performance
The stock price of Paylocity (PCTY) as of October 2023 is approximately $62.75, with a market capitalization of about $3.45 billion.
Key Metrics
| Metric | Value |
|---|---|
| Total Clients | 40,000+ |
| Employee Count | 1,700+ |
| Annual Revenue Growth (2022-2023) | 24% |
| Gross Margin | 64% |
| Debt to Equity Ratio | 0.02 |
Client Segmentation
Paylocity primarily targets:
- Small to medium-sized businesses (SMBs)
- Industries such as healthcare, education, and professional services
Technological Advancements
Paylocity invests significantly in technology; in 2023, it allocated approximately $15 million to enhance its platform capabilities.
Market Position
According to industry reports, Paylocity holds a market share of approximately 4.5% within the HCM and payroll processing industry.
Competitive Landscape
Competitors include:
- ADP
- Ultimate Software
- Workday
- Paychex
Recent Developments
In 2023, Paylocity expanded its product offerings by launching new features aimed at improving the employee experience, such as enhanced mobile functionality and advanced analytics tools.
How Paylocity Holding Corporation (PCTY) Makes Money
Revenue Streams
Paylocity generates revenue primarily through its cloud-based payroll and human capital management (HCM) solutions. The company has multiple offerings that cater to various business needs:
- Payroll Processing
- Human Resources Management
- Time and Attendance Systems
- Talent Management
- Benefits Administration
Key Financial Metrics
For the fiscal year 2022, Paylocity reported significant financial growth:
| Metric | Value |
|---|---|
| Total Revenue | $469.8 million |
| Year-over-Year Revenue Growth | 31% |
| Gross Profit | $344.1 million |
| Net Income | $21.5 million |
| Adjusted EBITDA | $106.4 million |
Customer Base
As of 2022, Paylocity serves over 27,000 customers, primarily in the small to medium-sized business sector. This diversified customer base aids in steady revenue generation.
| Customer Segment | Percentage of Revenue |
|---|---|
| Small Businesses (1-100 Employees) | 50% |
| Medium Businesses (101-1,000 Employees) | 30% |
| Large Enterprises (1,001+ Employees) | 20% |
Investment in Technology
Paylocity continues to invest heavily in technology to enhance its platform, with R&D expenses amounting to $31 million in the most recent fiscal year. This investment is vital for maintaining a competitive edge.
- Product Innovation
- Cloud Infrastructure Improvement
- Enhanced User Experience
- Data Security Measures
Sales and Marketing Expenses
To drive customer acquisition, Paylocity allocated $140 million towards sales and marketing in 2022, representing approximately 30% of total revenue.
| Expense Category | Amount |
|---|---|
| Sales and Marketing | $140 million |
| Research and Development | $31 million |
| General and Administrative | $38 million |
Recurring Revenue Model
Paylocity primarily operates on a subscription-based model, which ensures a stable and recurring revenue stream. In 2022, subscription revenue accounted for approximately 90% of total revenue.
Market Position and Competitive Advantage
Paylocity holds a strong position in the HCM market, with a focus on innovative technology solutions. Competitors include ADP and Paychex, but Paylocity's cloud-based approach offers flexibility and scalability.
- Strong Customer Satisfaction Rates
- High Retention Rates (>90%)
- Scalable Solutions for Growth
Future Growth Potential
Looking ahead, Paylocity anticipates continued growth through expansion into new markets and enhancements to its product offerings. The company projects a revenue increase of approximately 20% for the fiscal year 2023.
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