(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
The |
Exhibit No. | Description | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
Exhibit No. | Description | |||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
PAYLOCITY HOLDING CORPORATION | ||||||||
Date: February 3, 2022 | By: | /s/ Toby J. Williams | ||||||
Toby J. Williams | ||||||||
Chief Financial Officer |
June 30, 2021 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 202,287 | $ | 84,104 | |||||||
Corporate investments | 4,456 | — | |||||||||
Accounts receivable, net | 6,267 | 9,830 | |||||||||
Deferred contract costs | 44,230 | 50,294 | |||||||||
Prepaid expenses and other | 15,966 | 22,795 | |||||||||
Total current assets before funds held for clients | 273,206 | 167,023 | |||||||||
Funds held for clients | 1,759,677 | 1,920,063 | |||||||||
Total current assets | 2,032,883 | 2,087,086 | |||||||||
Capitalized internal-use software, net | 45,018 | 53,107 | |||||||||
Property and equipment, net | 59,835 | 62,425 | |||||||||
Operating lease right-of-use assets | 43,984 | 49,611 | |||||||||
Intangible assets, net | 13,027 | 35,175 | |||||||||
Goodwill | 33,650 | 68,326 | |||||||||
Long-term deferred contract costs | 170,663 | 191,385 | |||||||||
Long-term prepaid expenses and other | 4,223 | 6,778 | |||||||||
Deferred income tax assets | 11,602 | 34,697 | |||||||||
Total assets | $ | 2,414,885 | $ | 2,588,590 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 4,230 | $ | 6,600 | |||||||
Accrued expenses | 103,109 | 79,507 | |||||||||
Total current liabilities before client fund obligations | 107,339 | 86,107 | |||||||||
Client fund obligations | 1,759,677 | 1,920,063 | |||||||||
Total current liabilities | 1,867,016 | 2,006,170 | |||||||||
Long-term operating lease liabilities | 67,201 | 71,877 | |||||||||
Other long-term liabilities | 1,958 | 2,069 | |||||||||
Deferred income tax liabilities | 1,780 | 1,781 | |||||||||
Total liabilities | $ | 1,937,955 | $ | 2,081,897 | |||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2021 and December 31, 2021 | $ | — | $ | — | |||||||
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2021 and December 31, 2021; 54,594 shares issued and outstanding at June 30, 2021 and 55,105 shares issued and outstanding at December 31, 2021 | 55 | 55 | |||||||||
Additional paid-in capital | 241,718 | 231,106 | |||||||||
Retained earnings | 235,091 | 275,876 | |||||||||
Accumulated other comprehensive income (loss) | 66 | (344) | |||||||||
Total stockholders' equity | $ | 476,930 | $ | 506,693 | |||||||
Total liabilities and stockholders’ equity | $ | 2,414,885 | $ | 2,588,590 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Recurring and other revenue | $ | 145,393 | $ | 195,041 | $ | 280,268 | $ | 375,865 | |||||||||||||||
Interest income on funds held for clients | 936 | 996 | 1,855 | 1,869 | |||||||||||||||||||
Total revenues | 146,329 | 196,037 | 282,123 | 377,734 | |||||||||||||||||||
Cost of revenues | 53,542 | 70,821 | 102,922 | 134,070 | |||||||||||||||||||
Gross profit | 92,787 | 125,216 | 179,201 | 243,664 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Sales and marketing | 37,775 | 52,219 | 75,449 | 102,104 | |||||||||||||||||||
Research and development | 19,338 | 25,278 | 37,985 | 48,354 | |||||||||||||||||||
General and administrative | 29,323 | 39,581 | 55,967 | 74,816 | |||||||||||||||||||
Total operating expenses | 86,436 | 117,078 | 169,401 | 225,274 | |||||||||||||||||||
Operating income | 6,351 | 8,138 | 9,800 | 18,390 | |||||||||||||||||||
Other expense | (379) | (372) | (636) | (489) | |||||||||||||||||||
Income before income taxes | 5,972 | 7,766 | 9,164 | 17,901 | |||||||||||||||||||
Income tax benefit | (3,670) | (2,087) | (12,938) | (22,884) | |||||||||||||||||||
Net income | $ | 9,642 | $ | 9,853 | $ | 22,102 | $ | 40,785 | |||||||||||||||
Other comprehensive loss, net of tax | (187) | (335) | (410) | (410) | |||||||||||||||||||
Comprehensive income | $ | 9,455 | $ | 9,518 | $ | 21,692 | $ | 40,375 | |||||||||||||||
Net income per share: | |||||||||||||||||||||||
Basic | $ | 0.18 | $ | 0.18 | $ | 0.41 | $ | 0.74 | |||||||||||||||
Diluted | $ | 0.17 | $ | 0.17 | $ | 0.39 | $ | 0.72 | |||||||||||||||
Weighted-average shares used in computing net income per share: | |||||||||||||||||||||||
Basic | 54,305 | 55,067 | 54,160 | 54,938 | |||||||||||||||||||
Diluted | 56,343 | 56,468 | 56,122 | 56,486 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | ||||||||||||||||||||
Cost of revenues | $ | 2,002 | $ | 3,327 | $ | 4,405 | $ | 6,854 | |||||||||||||||
Sales and marketing | 4,019 | 5,749 | 8,367 | 11,769 | |||||||||||||||||||
Research and development | 2,765 | 5,446 | 5,616 | 10,220 | |||||||||||||||||||
General and administrative | 8,300 | 11,948 | 15,435 | 21,383 | |||||||||||||||||||
Total stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | $ | 17,086 | $ | 26,470 | $ | 33,823 | $ | 50,226 |
Six Months Ended December 31, | |||||||||||
2020 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 22,102 | $ | 40,785 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
Stock-based compensation expense | 30,936 | 45,802 | |||||||||
Depreciation and amortization expense | 21,071 | 23,383 | |||||||||
Deferred income tax benefit | (12,940) | (22,952) | |||||||||
Provision for credit losses | 98 | 103 | |||||||||
Net accretion of discounts and amortization of premiums on available-for-sale securities | 255 | 221 | |||||||||
Amortization of debt issuance costs | 83 | 90 | |||||||||
Other | 515 | 247 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (1,287) | (916) | |||||||||
Deferred contract costs | (23,431) | (26,786) | |||||||||
Prepaid expenses and other | (3,388) | (10,008) | |||||||||
Accounts payable | 1,070 | 1,403 | |||||||||
Accrued expenses and other | (15,412) | (24,514) | |||||||||
Net cash provided by operating activities | 19,672 | 26,858 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of available-for-sale securities | — | (190,000) | |||||||||
Proceeds from sales and maturities of available-for-sale securities | 58,996 | 60,391 | |||||||||
Capitalized internal-use software costs | (14,832) | (17,966) | |||||||||
Purchases of property and equipment | (6,045) | (10,528) | |||||||||
Acquisition of business, net of cash acquired | (14,992) | (60,234) | |||||||||
Net cash provided by (used in) investing activities | 23,127 | (218,337) | |||||||||
Cash flows from financing activities: | |||||||||||
Net change in client fund obligations | 876,982 | 160,325 | |||||||||
Proceeds from employee stock purchase plan | 6,100 | 7,216 | |||||||||
Taxes paid related to net share settlement of equity awards | (44,749) | (67,109) | |||||||||
Payment of debt issuance costs | (17) | (41) | |||||||||
Net cash provided by financing activities | 838,316 | 100,391 | |||||||||
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents | 881,115 | (91,088) | |||||||||
Cash, cash equivalents and funds held for clients' cash and cash equivalents—beginning of period | 1,492,133 | 1,945,881 | |||||||||
Cash, cash equivalents and funds held for clients' cash and cash equivalents—end of period | $ | 2,373,248 | $ | 1,854,793 | |||||||
Supplemental Disclosure of Non-Cash Investing and Financing Activities | |||||||||||
Purchases of property and equipment, accrued but not paid | $ | — | $ | 125 | |||||||
Liabilities assumed for acquisition | $ | 281 | $ | 1,874 | |||||||
Supplemental Disclosure of Cash Flow Information | |||||||||||
Cash paid for interest | $ | 584 | $ | 126 | |||||||
Refunds received for income taxes | $ | (110) | $ | (115) | |||||||
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets | |||||||||||
Cash and cash equivalents | $ | 218,696 | $ | 84,104 | |||||||
Funds held for clients' cash and cash equivalents | 2,154,552 | 1,770,689 | |||||||||
Total cash, cash equivalents and funds held for clients' cash and cash equivalents | $ | 2,373,248 | $ | 1,854,793 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | ||||||||||||||||||||
Reconciliation from Gross profit to Adjusted gross profit: | |||||||||||||||||||||||
Gross profit | $ | 92,787 | $ | 125,216 | $ | 179,201 | $ | 243,664 | |||||||||||||||
Amortization of capitalized internal-use software costs | 5,882 | 6,087 | 11,268 | 12,215 | |||||||||||||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 2,002 | 3,327 | 4,405 | 6,854 | |||||||||||||||||||
Other items (1) | — | 36 | — | 48 | |||||||||||||||||||
Adjusted gross profit | $ | 100,671 | $ | 134,666 | $ | 194,874 | $ | 262,781 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | ||||||||||||||||||||
Reconciliation from Operating income to Non-GAAP operating income: | |||||||||||||||||||||||
Operating income | $ | 6,351 | $ | 8,138 | $ | 9,800 | $ | 18,390 | |||||||||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 17,086 | 26,470 | 33,823 | 50,226 | |||||||||||||||||||
Amortization of acquired intangibles | 940 | 2,000 | 1,784 | 3,352 | |||||||||||||||||||
Other items (2) | 725 | — | 1,085 | 803 | |||||||||||||||||||
Non-GAAP operating income | $ | 25,102 | $ | 36,608 | $ | 46,492 | $ | 72,771 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | ||||||||||||||||||||
Reconciliation from Net income to Non-GAAP net income: | |||||||||||||||||||||||
Net income | $ | 9,642 | $ | 9,853 | $ | 22,102 | $ | 40,785 | |||||||||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 17,086 | 26,470 | 33,823 | 50,226 | |||||||||||||||||||
Amortization of acquired intangibles | 940 | 2,000 | 1,784 | 3,352 | |||||||||||||||||||
Other items (2) | 725 | 208 | 1,085 | 1,011 | |||||||||||||||||||
Income tax effect on adjustments (3) | (6,187) | (2,241) | (15,387) | (25,929) | |||||||||||||||||||
Non-GAAP net income | $ | 22,206 | $ | 36,290 | $ | 43,407 | $ | 69,445 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | ||||||||||||||||||||
Calculation of Non-GAAP net income per share: | |||||||||||||||||||||||
Non-GAAP net income | $ | 22,206 | $ | 36,290 | $ | 43,407 | $ | 69,445 | |||||||||||||||
Diluted weighted-average number of common shares | 56,343 | 56,468 | 56,122 | 56,486 | |||||||||||||||||||
Non-GAAP net income per share | $ | 0.39 | $ | 0.64 | $ | 0.77 | $ | 1.23 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | ||||||||||||||||||||
Reconciliation from Net income to Adjusted EBITDA: | |||||||||||||||||||||||
Net income | $ | 9,642 | $ | 9,853 | $ | 22,102 | $ | 40,785 | |||||||||||||||
Interest expense | 351 | 110 | 691 | 218 | |||||||||||||||||||
Income tax benefit | (3,670) | (2,087) | (12,938) | (22,884) | |||||||||||||||||||
Depreciation and amortization expense | 10,836 | 12,061 | 21,071 | 23,383 | |||||||||||||||||||
EBITDA | 17,159 | 19,937 | 30,926 | 41,502 | |||||||||||||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 17,086 | 26,470 | 33,823 | 50,226 | |||||||||||||||||||
Other items (2) | 725 | 208 | 1,085 | 1,011 | |||||||||||||||||||
Adjusted EBITDA | $ | 34,970 | $ | 46,615 | $ | 65,834 | $ | 92,739 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | ||||||||||||||||||||
Reconciliation of Non-GAAP sales and marketing: | |||||||||||||||||||||||
Sales and marketing | $ | 37,775 | $ | 52,219 | $ | 75,449 | $ | 102,104 | |||||||||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 4,019 | 5,749 | 8,367 | 11,769 | |||||||||||||||||||
Other items (1) | — | 76 | — | 102 | |||||||||||||||||||
Non-GAAP sales and marketing | $ | 33,756 | $ | 46,394 | $ | 67,082 | $ | 90,233 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | ||||||||||||||||||||
Reconciliation of Non-GAAP total research and development: | |||||||||||||||||||||||
Research and development | $ | 19,338 | $ | 25,278 | $ | 37,985 | $ | 48,354 | |||||||||||||||
Capitalized internal-use software costs | 6,948 | 8,807 | 14,832 | 17,966 | |||||||||||||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 2,765 | 5,446 | 5,616 | 10,220 | |||||||||||||||||||
Other items (1) | 230 | 325 | 385 | 468 | |||||||||||||||||||
Non-GAAP total research and development | $ | 23,291 | $ | 28,314 | $ | 46,816 | $ | 55,632 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2020 | 2021 | 2020 | 2021 | ||||||||||||||||||||
Reconciliation of Non-GAAP general and administrative: | |||||||||||||||||||||||
General and administrative | $ | 29,323 | $ | 39,581 | $ | 55,967 | $ | 74,816 | |||||||||||||||
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises | 8,300 | 11,948 | 15,435 | 21,383 | |||||||||||||||||||
Amortization of acquired intangibles | 940 | 2,000 | 1,784 | 3,352 | |||||||||||||||||||
Other items (2) | 495 | (437) | 700 | 185 | |||||||||||||||||||
Non-GAAP general and administrative | $ | 19,588 | $ | 26,070 | $ | 38,048 | $ | 49,896 |
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Cover |
Feb. 03, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Feb. 03, 2022 |
Entity Registrant Name | PAYLOCITY HOLDING CORPORATION |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-36348 |
Entity Tax Identification Number | 46-4066644 |
Entity Address, Address Line One | 1400 American Lane |
Entity Address, City or Town | Schaumburg |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 60173 |
City Area Code | (847) |
Local Phone Number | 463-3200 |
Title of 12(b) Security | Common Stock, par value $0.001 per share |
Trading Symbol | PCTY |
Security Exchange Name | NASDAQ |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001591698 |
Amendment Flag | false |
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