Paylocity Q2 Earnings & Revenues Beat Estimates, Stock Gains

Paylocity Holding Corporation PCTY shares gained 4.24% in after-hours trading on Feb. 6 to $221.00 following impressive second-quarter fiscal 2025 results.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.PCTY reported second-quarter fiscal 2025 non-GAAP earnings of $1.52 per share, beating the Zacks Consensus Estimate by 9.35%. The bottom line increased 2% year over year, driven by robust sales performance, efficient operations, and acquisitions that expanded revenue streams and market reach.PCTY’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 18.26%.Paylocity Holding Corporation Price, Consensus and EPS Surprise  Paylocity Holding Corporation price-consensus-eps-surprise-chart | Paylocity Holding Corporation QuotePaylocity’s revenues rose 16% year over year to $377 million and surpassed the Zacks Consensus Estimate by 2.77%.Top-line growth can be attributed to a 16.5% increase in Recurring and other revenues (92.2% of the total revenues) to $347.7 million. Moreover, Interest income on funds held for clients (7.8% of total revenues) rose 4.7% year over year to $29.3 million.Quarterly DetailsPaylocity’s adjusted gross profit was $278.2 million, up 17.3% from the year-ago period. The adjusted gross margin expanded 110 basis points (bps) to 73.8%.The non-GAAP operating income rose 9% year over year to $101.1 million. The non-GAAP operating margin contracted 160 bps to 26.8%.Adjusted EBITDA rose 12% from the year-ago quarter to $126.2 million. The adjusted EBITDA margin for the second quarter of fiscal 2025 moved down 100 bps to 33.5%.Balance Sheet & Cash Flow DetailsAs of Dec. 31, 2024, Paylocity’s cash and cash equivalents were $482.4 million compared with $778.5 million as of Sept. 30, 2024.Long-term debt totaled $325 million as of the second quarter of fiscal 2025 due to borrowings under a credit facility to fund the acquisition of Airbase on Oct. 1, 2024.The cash flow from operations for the second quarter of fiscal 2025 was $54.2 million compared with $75.1 million from the year-ago period. The free cash flow was $41.9 million for the second quarter of fiscal 2025.PCTY Raises Q3 & FY25 GuidanceRaised optimism over an upbeat guidance is expected to drive the stock in the near term. For the third quarter of fiscal 2025, the company expects total revenues of $439-$444 million, indicating 10% growth from the year-ago period’s actual. Adjusted EBITDA is projected to be $171-$175 million.For fiscal 2025, Paylocity projects total revenues between $1.558 billion and $1.568 billion, implying 11% growth from the year-ago quarter’s actual. Adjusted EBITDA is expected to be $542-$555 million.Zacks Rank & Other Stocks to ConsiderCurrently, Paylocity carries a Zacks Rank #2 (Buy).Arista Networks ANET, Freshwork FRSH and Canaan CAN are some other top-ranked stocks that investors can consider in the broader sector.Arista Networks sports a Zacks Rank #1 (Strong Buy), and Dell Technologies and Workday carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.Arista Networks shares have returned 4.2% year to date. ANET is set to report fourth-quarter 2024 results on Feb.18.Shares of Freshwork have risen 13.5% year to date. FRSH is set to post fourth-quarter 2024 results on Feb. 11.Canaan shares have declined 8.7% year to date. CAN is set to report fourth-quarter 2024 results on Feb.10.Free Today: Profiting from The Future’s Brightest Energy SourceThe demand for electricity is growing exponentially. At the same time, we’re working to reduce our dependence on fossil fuels like oil and natural gas. Nuclear energy is an ideal replacement.Leaders from the US and 21 other countries recently committed to TRIPLING the world’s nuclear energy capacities. This aggressive transition could mean tremendous profits for nuclear-related stocks – and investors who get in on the action early enough.Our urgent report, Atomic Opportunity: Nuclear Energy's Comeback, explores the key players and technologies driving this opportunity, including 3 standout stocks poised to benefit the most.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Arista Networks, Inc. (ANET): Free Stock Analysis Report Freshworks Inc. (FRSH): Free Stock Analysis Report Paylocity Holding Corporation (PCTY): Free Stock Analysis Report Canaan Inc. Sponsored ADR (CAN): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks