Paylocity Holding Corporation (PCTY) has reported 140.24 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $14.80 million, or $0.27 a share in the quarter, compared with $6.16 million, or $0.12 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $21.60 million, or $0.40 a share compared with $11.32 million or $0.21 a share, a year ago.
Revenue during the quarter grew 27.92 percent to $90.27 million from $70.57 million in the previous year period. Gross margin for the quarter expanded 302 basis points over the previous year period to 64.46 percent. Total expenses were 83.52 percent of quarterly revenues, down from 91.21 percent for the same period last year. This has led to an improvement of 770 basis points in operating margin to 16.48 percent.
Operating income for the quarter was $14.88 million, compared with $6.20 million in the previous year period.
However, the adjusted operating income for the quarter stood at $21.68 million compared to $11.36 million in the prior year period. At the same time, adjusted operating margin improved 792 basis points in the quarter to 24.01 percent from 16.09 percent in the last year period.
"We had a very good third quarter with total revenue growth of 28% while at the same time driving improved leverage across all of our key financial metrics, as we remain committed to scaling the business," said Steve Beauchamp, president and chief executive officer of Paylocity. "I was very pleased with the level of service provided to our clients during the busiest time of the year, as all of our operational teams worked proactively with our clients to ensure year-end tasks were completed timely and accurately."
For the fourth-quarter, Paylocity Holding Corporation expects revenue to be in the range of $73.10 million to $74.10 million.
For the fiscal year 2017, Paylocity Holding Corporation expects revenue to be in the range of $297 million to $298 million. It projects adjusted net income to be in the range of $31 million to $32 million. The company projects diluted earnings per share to be in the range of $0.57 to $0.59 on adjusted basis.
Operating cash flow improves significantlyPaylocity Holding Corporation has generated cash of $43.34 million from operating activities during the nine month period, up 49.09 percent or $14.27 million, when compared with the last year period. Cash flow from investing activities was $45.29 million for the nine month period as against cash outgo of $849.79 million in the last year period.
The company has spent $73.67 million cash to carry out financing activities during the nine month period as against cash inflow of $829.18 million in the last year period.
Cash and cash equivalents stood at $101.45 million as on Mar. 31, 2017, up 13.09 percent or $11.74 million from $89.71 million on Mar. 31, 2016.
Working capital increases
Paylocity Holding Corporation has recorded an increase in the working capital over the last year. It stood at $87.95 million as at Mar. 31, 2017, up 20.38 percent or $14.89 million from $73.06 million on Mar. 31, 2016. Current ratio was at 1.07 as on Mar. 31, 2017, up from 1.05 on Mar. 31, 2016.
Days sales outstanding were almost stable at 2 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding was almost stable at 6 days for the quarter, when compared with the previous year period.
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