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Q2 Fiscal 2026 Investor Presentation
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2 This presentation is for informational purposes only and is not an offer to sell securities or a solicitation of an offer to buy any securities, and may not be relied upon in connection with the purchase or sale of any security. This presentation is proprietary and is intended solely for the information of the persons to whom it is presented. It may not be retained, reproduced or distributed, in whole or in part, by any means (including electronic) without the prior written consent of Paylocity Corporation. This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. These forward-looking statements are subject to a number of risks, including those described under the heading “Risk Factors” in our periodic reports we have filed with the Securities and Exchange Commission (the “SEC”). Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, we are under no duty to update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this presentation. In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures for the periods presented provided in the Current Reports on Form 8-K filed with the SEC on February 5, 2026, August 5, 2025, August 1, 2024, and August 4, 2022. This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data. Safe Harbor Statement This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. These forward-looking statements are subject to a number of risks, including those described under the heading “Risk Factors” in our periodic reports we have filed with the Securities and Exchange Commission (the “SEC”). Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, we are under no duty to update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this presentation. In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data. 2
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We are a leading provider of cloud-based HR, Finance, and IT solutions to a diversified set of clients across verticals & geographies Our Business Demonstrated ability to drive strong revenue growth with increasing profitability 41,650 clients 6,700 employees 150+ avg. client size 10-5,000 employees target market Schaumburg, IL Headquarters $1,175 $1,403 $1,595 $1,737 $375 $506 $583 $627 FY23 FY24 FY25 FY26 Guidance $377 $416 $126 $143 Q2 FY25 Q2 FY26 Rule of 70% Rule of 56% 10% YoY growth Total Revenue (FYE June 30, $mm) Rule of 50% Adj. EBITDA *Rule of % = Total Revenue Growth + Adj. EBITDA Margin 3 Rule of 45%
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~3% penetrated into addressable market Realized HCM TAM of ~$22.0 billion Source: U.S. Census Bureau Current average client size of 150+ employees 41,650 clients as of June 30, 2025 73 million employees in the 10-5,000 segment of the market 4 HCM Addressable Market (TAM) We remain squarely focused on increasing our limited penetration of a large, and growing, total addressable market Further increasing TAM with Finance and IT solutions Approximately 1.3 million businesses in the 10–5,000 segment of the market On average purchase ~50%+ of suite
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Workday Limited overlap in target market. Enterprise solutions focused on companies with several thousand employees and up – do not see them often competitively Ultimate Kronos Group / Dayforce Enterprise solution focusing primarily on >1,000 employee companies – seen in deals at the higher-end of our target market Paycom Average client size is larger than ours, generally seen at the middle / higher-end of our target market Paycor (by Paychex) Average client size is smaller than ours, generally seen at the middle / lower-end of our target market ADP / PAYX Biggest competitors – compete throughout our target market Regionals Smaller to mid-part of our market In-House Primarily lower end of the market Paylocity differentiates with a payroll, HCM, spend management, and IT platform built for the modern workforce + best- in-class client support Focused on taking share in our target market of roughly 1.3 million businesses Enterprise Market (10,000+ Employees) 5,000 Employees Mid-Market (51-1,000 Employees) SMB Market (1-50 Employees) Core Market in-house solutions ~3,000 regional providers Average Client Size HCM Competitive Landscape 5 by Paychex
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6 UNIFIED PLATFORM FOR HR, FINANCE, & IT A single source of truth across the enterprise. HR Talent, benefits, engagement, and compliance Finance Payroll, time tracking, GL integration, and budgeting IT System Access and Asset Management HR FINANCE IT
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The Most Modern Platform HCM, Finance, & IT 7
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8 Sustained R&D Investment Drives Product Expansion and Revenue Growth Human Resources PayrollBenefitsRecruiting & Onboarding Performance & Compensation Time & Labor Employee Experience HCM Employee Voice LearningVideoCommunity Market Pay 8 $94m $117m $170m $200m $227m $22.0k $25.5k $30.3k $32.8k $35.3k FY21 FY22 FY23 FY24 FY25 Total Non-GAAP R&D Realized ARPU Finance & IT Over 180% increase in Realized ARPU since 2014 Ongoing Product Innovation (1) (1) ARPU = Recurring & Other Revenue / # of Clients Corporate Cards Guided Procurement AP Automation Expense Management Headcount Planning Asset Management Access Management
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Process Payroll in a few Clicks Submit payroll through a simple navigation flow reducing manual data entry and minimizing errors Simplify Tasks for HR and Employees Save time and money with intuitive scheduling and time tracking, bringing your team into the future of work Find and Retain Top Talent Get top candidates in the door quickly and keep them on the path to success to drive satisfaction and growth Setup Frictionless Benefits Easily set up enrollment, navigate compliance and automate processes 9 Payroll HR Time & Labor Benefits Recruiting The Most Complete HCM Platform for The Modern Workforce
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Mobile & on-demand Everything employees need at their fingertips on any device Flexibility & wellbeing Empower employees to manage their shifts & pay schedule without HR overhead Feeling heard & valued Create engagement with opportunities for feedback & recognition Connection across the org Foster transparency and a sense of belonging with open communication Providing HR the tools to better engage with their employees Employee Home Recognition & Rewards Community & Video 10 Learning Employee Voice
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11 Finance & spend management software that puts CFOs in control Expense Management AP Automation Guided Procurement All Spend on a Single Platform Enables real-time visibility, faster close, seamless adoption for every part of the organization A Singular Employee Record A single source of truth for Finance and HR processes for increased synergy, greater efficiencies, and better decision making A Unified, Differentiated Experience Enhances employee satisfaction and increases efficiencies across HR- and spend-related processes Significant TAM Expansion Opportunity to move into high-growth Office of the CFO category Corporate Cards
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12 Complete control over IT identity and hardware management Automated Access Management Provision and deprovision accounts automatically using employee lifecycle data for a single source of truth between HR and IT Smarter Asset Management Track, order, assign, and update employee hardware from a unified platform to stay organized across all employee devices Fewer Manual Touchpoints Leverage employee data to drive system access, reducing risk and IT workload while freeing up hours of IT and HR time for strategic work Access Management Asset Management
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13 Combination of ADP / Paychex represents our largest source of new clients Where Our Clients Come From HCM Competitive Landscape Why we win Industry-leading product suite combined with strong focus on client service resulting in 92%+ revenue retention In-house solutions (did not use a traditional 3rd party provider) Local / regional payroll providers All other competitors and new business formation 13
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14 We hire experienced sales professionals • Most have prior HCM platform, HR technology, spend management, IT or B2B sales experience • All sales are direct through our salesforce • Our reps are focused on deals with 10-5,000 employees with our largest opportunities supported by our most experienced teams Go-To-Market Strategy All major U.S. geographies covered, but room to add reps in every state Our client base is well diversified across all industry verticals and geographies 8% From 885 reps in fiscal 2025 952 reps in fiscal 2026 14
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Channel Value Proposition Strong Referral Channel We do not compete with our channel partners – We do not sell insurance or benefits; other major payroll / HCM competitors compete with brokers and financial advisors for insurance business and assets Flexible platform with hundreds of available Integrations and open APIs for insurance, 401k and other providers. We continue to invest in integrations to add value for the broker community Partner Portal allows our partners to differentiate Providing visibility to brokers and helping drive change at their clients by providing unique data insights 25%+ of our new client revenue comes from referrals from channels Paylocity is the most complete platform for the modern workforce which helps our channel partners reach employees in new ways 15
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16 In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data. Over 92%+ net revenue retention as a public company Continued Client Service Investments Support Strong Revenue Retention 92%+ Net Revenue Retention Retention Churn(1) *Net Revenue Retention = total revenue for the preceding 12 months, less the annualized value of revenue lost during the preceding 12 months, divided by our total revenue for the preceding 12 months. We calculate the annualized value of revenue lost by summing the recurring fees paid by lost clients over the previous twelve months prior to their termination if they have been a client for a minimum of twelve months. For those lost clients who became clients within the last twelve months, we sum the recurring fees for the period that they have been a client and then annualize the amount. We exclude interest income on funds held for clients from the revenue retention calculation. (1)Includes controllable and uncontrollable churn Delivering world class service Providing the most modern platform 16
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In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data. Recurring and Other Revenue $ millions Financials Squarely focused on revenue growth while demonstrating meaningful leverage in our business model Current Total Revenue $3Bn Adjusted Gross Profit 80%+ Non-GAAP total R&D 10% - 15% Non-GAAP Sales & Marketing 15% - 20% Non-GAAP General & Administrative 5% - 7% Adjusted EBITDA 40% - 45% Free Cash Flow 25% - 30% Stock-Based Compensation 5% Long-Term Financial Targets Increased profitability targets reflect commitment to driving greater operational efficiency over time $848 $1,098 $1,282 $1,472 $1,625 $853 $1,175 $1,403 $1,595 $1,737 FY22 FY23 FY24 FY25 FY26 Guidance Recurring and Other Revenue Total Revenue 30% YoY growth 17% YoY growth Note: Financial targets based on percentage of total revenue 17 15% YoY growth 10% YoY growth
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In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data. Financials (cont.) Driving continued margin expansion on an annual basis Driving greater leverage over time • Successfully driven ~450bps of Adj. EBITDA margin leverage excl. interest income on funds held for clients since FY23 • Intend to drive leverage primarily through cost of sales and G&A on a go forward basis $299 $385 $460 $515 FY23 FY24 FY25 FY26 Guidance 27.2% Margin 30.0% Margin 18 31.2% Margin 31.7% Margin Adjusted EBITDA excluding interest income on funds held for clients $ millions
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19 In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data. Financials (cont.) $139 $185 $219 $274 FY23 FY24 FY25 LTM Dec FY26 12.7% Margin 14.4% Margin Strong Balance Sheet - $162m Cash & Cash Equivalents as of 12/31/25 Demonstrating meaningful FCF leverage • Successfully driven 450bps+ of FCF margin leverage excl. interest income on funds held for clients since FY23 • Repurchased ~3.7m shares of common stock at an average price of $162.88 per share for $600m in aggregate since May 2024 • Have ~$400m remaining under current repurchase program Free Cash Flow excluding interest income on funds held for clients $ millions Driving continued margin expansion on an annual basis 14.9% Margin 17.6% Margin
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20 In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data. Financials (cont.) $1.61 $2.49 $3.63 $4.02 FY22 FY23 FY24 FY25 Earnings per Share Based on Diluted share count Driving consistent growth in Earnings per Share on an annual basis Driving consistent EPS growth through: • Margin leverage – through a combination of economies of scale and operating expense management, primarily in gross margin and G&A • Stock-based compensation – reduced by ~350bps as a % of revenue from FY23 to FY25 • Share repurchases of ~$600m in aggregate since May 2024, reducing weighted average shares outstanding by over 2%
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External Recognition 21 2020-2025 2020-2025 2020-2025 2020-2025 2020-2025 2012-2025 2024-2025 2025 2025 2025 2025 2025 2024-2025 2024-2025 202420242023-2025 2022-2024 2024 2024 2019-2024 2024 21
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• Creating the most modern HCM, Finance, and IT platform • Increasing average revenue per client • Growing client base • Strong client retention Positioned for Long-Term Growth & Margin Expansion 22