SPY380.36-1.97 -0.52%
DIA309.45-4.53 -1.44%
IXIC13,192.35+72.96 0.56%

Press Release: Paylocity Announces Second Quarter -3-

· 02/04/2021 16:05
Three Months Ended Six Months Ended December 31, December 31, ------------------- --------------------- 2019 2020 2019 2020 ------- ---------- ------- ------------ Cost of revenues $ 1,465 $ 2,002 $ 3,197 $ 4,405 Sales and marketing 3,393 4,019 7,737 8,367 Research and development 1,783 2,765 3,583 5,616 General and administrative 6,188 8,300 12,341 15,435 ------ ------ ------ ------ Total stock-based compensation expense $12,829 $ 17,086 $26,858 $ 33,823 ====== ====== ====== ====== PAYLOCITY HOLDING CORPORATION Unaudited Consolidated Statements of Cash Flows (in thousands) Six Months Ended December 31, -------------------------- 2019 2020 ----------- ------------- Cash flows from operating activities: Net income $ 19,373 $ 22,102 Adjustments to reconcile net income to net cash provided by operating activities: Stock-based compensation expense 24,832 30,936 Depreciation and amortization expense 18,261 21,071 Deferred income tax benefit (6,500) (12,940) Provision for credit losses 63 98 Net accretion of discounts and amortization of premiums on available-for-sale securities (1,052) 255 Amortization of debt issuance costs 73 83 Other 250 515 Changes in operating assets and liabilities: Accounts receivable (53) (1,287) Deferred contract costs (22,434) (23,431) Prepaid expenses and other 773 (3,388) Accounts payable 261 1,070 Accrued expenses and other 2,231 (15,412) --------- --------- Net cash provided by operating activities 36,078 19,672 Cash flows from investing activities: Purchases of available-for-sale securities and other (253,950) -- Proceeds from sales and maturities of available-for-sale securities 124,780 58,996 Capitalized internal-use software costs (12,139) (14,832) Purchases of property and equipment (12,398) (6,045) Acquisition of business, net of cash acquired -- (14,992) --------- --------- Net cash provided by (used in) investing activities (153,707) 23,127 Cash flows from financing activities: Net change in client fund obligations 450,825 876,982 Proceeds from employee stock purchase plan 3,961 6,100 Taxes paid related to net share settlement of equity awards (25,954) (44,749) Payment of debt issuance costs (675) (17) --------- --------- Net cash provided by financing activities 428,157 838,316 --------- --------- Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents 310,528 881,115 Cash, cash equivalents and funds held for clients' cash and cash equivalents--beginning of period 1,426,143 1,492,133 --------- --------- Cash, cash equivalents and funds held for clients' cash and cash equivalents--end of period $1,736,671 $2,373,248 ========= ========= Supplemental Disclosure of Non-Cash Investing and Financing Activities Liabilities assumed for acquisition $ -- $ 281 ========= ========= Supplemental Disclosure of Cash Flow Information Cash paid for interest $ 53 $ 584 ========= ========= Cash paid (refunds received) for income taxes $ 19 $ (110) ========= ========= Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Unaudited Consolidated Balance Sheets Cash and cash equivalents $ 75,900 $ 218,696 Funds held for clients' cash and cash equivalents 1,660,771 2,154,552 --------- --------- Total cash, cash equivalents and funds held for clients' cash and cash equivalents $1,736,671 $2,373,248 ========= ========= Paylocity Holding Corporation Reconciliation of GAAP to non-GAAP Financial Measures (In thousands except per share data) Three Months Six Months Ended Ended December 31, December 31, ------------------ --------------------- 2019 2020 2019 2020 -------- --------- --------- ----------- Reconciliation from Gross profit to Adjusted gross profit: Gross profit $86,950 $ 92,787 $171,040 $179,201 Amortization of capitalized internal-use software costs 4,690 5,882 9,147 11,268 Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 1,465 2,002 3,197 4,405 Adjusted gross profit $93,105 $100,671 $183,384 $194,874 ====== ======= ======= ======= Three Months Six Months Ended Ended December 31, December 31, ------------------ --------------------- 2019 2020 2019 2020 -------- --------- --------- ----------- Reconciliation from Operating income to Non-GAAP operating income: Operating income $ 6,114 $ 6,351 $ 12,114 $ 9,800 Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 12,829 17,086 26,858 33,823 Amortization of acquired intangibles 562 940 1,125 1,784 Other items (1) 1,606 725 2,562 1,085 Non-GAAP operating income $21,111 $ 25,102 $ 42,659 $ 46,492 ====== ======= ======= ======= Three Months Six Months Ended Ended December 31, December 31, ------------------ --------------------- 2019 2020 2019 2020 -------- --------- --------- ----------- Reconciliation from Net income to Non-GAAP net income: Net income $ 5,467 $ 9,642 $ 19,373 $ 22,102 Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises 12,829 17,086 26,858 33,823 Amortization of acquired intangibles 562 940 1,125 1,784 Other items (1) 1,606 725 2,562 1,085 Income tax effect on adjustments (2) (423) (6,187) (9,551) (15,387) ------- Non-GAAP net income $20,041 $ 22,206 $ 40,367 $ 43,407 ====== ======= ======= ======= Three Months Six Months Ended Ended December 31, December 31, ------------------ --------------------- 2019 2020 2019 2020 -------- --------- --------- ----------- Calculation of Non-GAAP net income per share: Non-GAAP net income $20,041 $ 22,206 $ 40,367 $ 43,407 Diluted weighted-average number of common shares 55,826 56,343 55,692 56,122 ------ ------- ------- ------- Non-GAAP net income per share $ 0.36 $ 0.39 $ 0.72 $ 0.77 Three Months Six Months Ended Ended December 31, December 31, ------------------ --------------------- 2019 2020 2019 2020 -------- --------- --------- ----------- Reconciliation from Net income to Adjusted EBITDA:

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises for each of the three and six months ended December 31 are included in the above line items:

(MORE TO FOLLOW) Dow Jones Newswires

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