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Press Release: Paylocity Announces Second Quarter -2-

· 02/04/2021 16:05
PAYLOCITY HOLDING CORPORATION Unaudited Consolidated Balance Sheets (in thousands, except per share data) June 30, December 31, 2020 2020 ---------- ---------------- Assets Current assets: Cash and cash equivalents $ 250,851 $ 218,696 Corporate investments 34,556 13,637 Accounts receivable, net 4,923 6,118 Deferred contract costs 32,332 37,447 Prepaid expenses and other 13,188 15,633 --------- ---------- Total current assets before funds held for clients 335,850 291,531 Funds held for clients 1,327,304 2,204,286 --------- ---------- Total current assets 1,663,154 2,495,817 Capitalized internal-use software, net 36,501 40,623 Property and equipment, net 66,737 64,066 Operating lease right-of-use assets 48,658 45,429 Intangible assets, net 13,360 15,083 Goodwill 21,655 33,184 Long-term deferred contract costs 125,711 144,027 Long--term prepaid expenses and other 4,917 3,218 Deferred income tax assets 4,955 9,516 --------- ---------- Total assets $1,985,648 $ 2,850,963 ========= ========== Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 1,755 $ 2,771 Accrued expenses 79,881 64,204 --------- ---------- Total current liabilities before client fund obligations 81,636 66,975 Client fund obligations 1,327,304 2,204,286 --------- ---------- Total current liabilities 1,408,940 2,271,261 Long-term debt 100,000 100,000 Long-term operating lease liabilities 73,299 69,672 Other long-term liabilities 1,747 1,812 Deferred income tax liabilities 8,754 -- --------- ---------- Total liabilities $1,592,740 $ 2,442,745 --------- ---------- Stockholders' equity: Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2020 and December 31, 2020 $ -- $ -- Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2020 and December 31, 2020; 53,792 shares issued and outstanding at June 30, 2020 and 54,370 shares issued and outstanding at December 31, 2020 54 54 Additional paid-in capital 227,907 221,525 Retained earnings 164,272 186,374 Accumulated other comprehensive income 675 265 --------- ---------- Total stockholders' equity $ 392,908 $ 408,218 --------- ---------- Total liabilities and stockholders' equity $1,985,648 $ 2,850,963 ========= ========== PAYLOCITY HOLDING CORPORATION Unaudited Consolidated Statements of Operations and Comprehensive Income (in thousands, except per share data) Three Months Ended Six Months Ended December 31, December 31, -------------------- ---------------------- 2019 2020 2019 2020 --------- --------- --------- ----------- Revenues: Recurring and other revenue $127,980 $145,393 $249,853 $280,268 Interest income on funds held for clients 4,394 936 9,241 1,855 ------- ------- ------- ------- Total revenues 132,374 146,329 259,094 282,123 Cost of revenues 45,424 53,542 88,054 102,922 ------- ------- ------- ------- Gross profit 86,950 92,787 171,040 179,201 ------- ------- ------- ------- Operating expenses: Sales and marketing 37,293 37,775 74,250 75,449 Research and development 15,410 19,338 29,804 37,985 General and administrative 28,133 29,323 54,872 55,967 ------- ------- ------- ------- Total operating expenses 80,836 86,436 158,926 169,401 ------- ------- ------- ------- Operating income 6,114 6,351 12,114 9,800 Other income (expense) 285 (379) 759 (636) ------- ------- ------- ------- Income before income taxes 6,399 5,972 12,873 9,164 Income tax expense (benefit) 932 (3,670) (6,500) (12,938) ------- ------- ------- ------- Net income $ 5,467 $ 9,642 $ 19,373 $ 22,102 ======= ======= ======= ======= Other comprehensive loss, net of tax (36) (187) (32) (410) ------- ------- ------- ------- Comprehensive income $ 5,431 $ 9,455 $ 19,341 $ 21,692 ======= ======= ======= ======= Net income per share: Basic $ 0.10 $ 0.18 $ 0.36 $ 0.41 ======= ======= ======= ======= Diluted $ 0.10 $ 0.17 $ 0.35 $ 0.39 ======= ======= ======= ======= Weighted-average shares used in computing net income per share: Basic 53,542 54,305 53,415 54,160 ======= ======= ======= ======= Diluted 55,826 56,343 55,692 56,122 ======= ======= ======= =======

the expectations disclosed in the forward-looking statements, including, but not limited to the ongoing impact of the novel coronavirus disease ("COVID-19") on the U.S. economy, including reductions in interest rates, business disruptions, reductions in employment and an increase in business failures that have occurred or may occur in the future; the continuing impact of COVID-19 on Paylocity's employees and clients and Paylocity's ability to provide services to its clients and respond to their needs; Paylocity's ability to retain existing clients and to attract new clients to enter into subscriptions for its services; Paylocity's ability to sell new products and retain subscriptions for its existing products to its new and existing clients; the challenges associated with a growing company's ability to effectively service clients in a dynamic and competitive market; challenges associated with expanding and evolving a sales organization to effectively address new geographies and products and services; Paylocity's reliance on and ability to expand its referral network of third parties; difficulties associated with accurately forecasting revenue and appropriately planning expenses; challenges with managing growth effectively; difficulties in forecasting Paylocity's tax position; risks related to regulatory, legislative and judicial uncertainty in Paylocity's markets, including the potential repeal or replacement of the Affordable Care Act; continued acceptance of SaaS as an effective method for delivery of payroll and HCM solutions; Paylocity's ability to protect and defend its intellectual property; the risk that Paylocity's security measures are compromised or the unauthorized access to customer data; unexpected events in the market for Paylocity's solutions; changes in the competitive environment in Paylocity's industry and the markets in which it operates; adverse changes in general economic or market conditions; changes in the employment rates of Paylocity's clients and the resultant impact on revenue; and other risks and potential factors that could affect Paylocity's business and financial results identified in Paylocity's filings with the Securities and Exchange Commission (the "SEC"), including its 10-K filed with the SEC on August 7, 2020. Additional information will also be set forth in Paylocity's future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that Paylocity makes with the SEC. These forward-looking statements represent Paylocity's expectations as of the date of this press release. Subsequent events, including events relating to the COVID-19 pandemic and its severity, duration and ultimate impact, may cause these expectations to change, and Paylocity disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

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February 04, 2021 16:05 ET (21:05 GMT)