PCTY
$296.89
Paylocity Hld
$8.26
2.86%
Earnings Details
Quarter June 2021
Thursday, August 05, 2021 4:05:00 PM
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Summary

Paylocity Hld Beats

Paylocity Hld (PCTY) reported Quarter June 2021 earnings of $0.47 per share on revenue of $167.5 million. The consensus earnings estimate was $0.30 per share on revenue of $162.1 million. The Earnings Whisper number was $0.36 per share. Revenue grew 28.2% on a year-over-year basis.

The company said it expects first quarter revenue of $171.5 million to $175.5 million and fiscal revenue of $790.0 million to $795.0 million. The current consensus revenue estimate is $168.34 million for the quarter ending September 30, 2021 and revenue of $774.77 million for the year ending June 30, 2022.

Paylocity Holding Corp is a provider of cloud-based payroll and human capital management, or HCM, software solutions for medium-sized organizations.

Results
Reported Earnings
$0.47
Earnings Whisper
$0.36
Consensus Estimate
$0.30
Reported Revenue
$167.5 Mil
Revenue Estimate
$162.1 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Paylocity Announces Fourth Quarter and Full Fiscal Year 2021 Financial Results

  • Q4 2021 Recurring & Other Revenue of $166.5 million, up 29% year-over-year
  • Q4 2021 Total Revenue of $167.5 million, up 28% year-over-year
  • FY 2021 Recurring & Other Revenue of $631.7 million, up 16% year-over-year
  • FY 2021 Total Revenue of $635.6 million, up 13% year-over-year

SCHAUMBURG, Ill., Aug. 05, 2021 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (Nasdaq: PCTY), a leading provider of cloud-based HR and payroll software solutions, today announced financial results for the fourth quarter and full fiscal year 2021, which ended June 30, 2021.

“Against the backdrop of the COVID-19 pandemic, we had a solid fiscal 21, which included 16% recurring and other revenue growth and strong momentum across the business as we head into fiscal 22,” said Steve Beauchamp, Chief Executive Officer of Paylocity. “Our products focused on the Modern Workforce, including Community, Surveys, Premium Video and Learning Management, have all seen significant increases in utilization during fiscal 21 as our value proposition of providing the most modern and comprehensive product suite in the industry continues to resonate in the marketplace. I’m also very pleased with the momentum and overall execution of our sales team across all market segments, which is helping to drive Q1 and full fiscal 22 revenue guidance to growth levels that we haven’t seen in a number of years.” 

Key Recent Achievements

  • FY 2021 Recurring & Other Revenue of $631.7 million, up 16% year-over-year
  • FY 2021 Total Revenue of $635.6 million, up 13% year-over-year
  • FY 2021 GAAP net income of $70.8 million and $1.26 per diluted share
  • FY 2021 Adjusted EBITDA, a non-GAAP measure, of $170.0 million or 26.7% of revenue
  • Ending FY 2021 cash, cash equivalents and invested corporate cash balance of $206.7 million
  • Acquisition of Samepage, an all-in-one team collaboration solution that includes task management, file sharing, and real-time document collaboration, completed in November 2020
  • Launch of the Paylocity Corporate Social Responsibility webpage to provide greater visibility into our Environmental, Social and Governance (ESG) efforts and the corresponding impact on our employees, clients and local communities

Fourth Quarter Fiscal 2021 Financial Highlights

Revenue:

  • Total revenue was $167.5 million, an increase of 28% from the fourth quarter of fiscal year 2020.
  • Recurring & other revenue was $166.5 million, representing 99% of total revenue and an increase of 29% from the fourth quarter of fiscal year 2020.

Operating Income:

  • GAAP operating income was $9.1 million and Non-GAAP operating income was $27.4 million in the fourth quarter of fiscal year 2021.

Net Income:

  • GAAP net income was $11.9 million or $0.21 per share for the three months ended June 30, 2021 based on 56.4 million diluted weighted average common shares outstanding.

Adjusted EBITDA:

  • Adjusted EBITDA, a non-GAAP measure, was $37.3 million in the fourth quarter of fiscal year 2021.

Fiscal Year 2021 Financial Highlights

Revenue:

  • Total revenue was $635.6 million, an increase of 13% from fiscal year 2020.
  • Recurring & other revenue was $631.7 million, representing 99% of total revenue and an increase of 16% from fiscal year 2020 recurring & other revenue.

Operating Income:

  • GAAP operating income was $58.0 million and non-GAAP operating income was $130.8 million in fiscal year 2021.

Net Income:

  • GAAP net income was $70.8 million or $1.26 per share for fiscal year 2021, based on 56.3 million diluted weighted average common shares outstanding.

Adjusted EBITDA:

  • Adjusted EBITDA, a non-GAAP measure, was $170.0 million for fiscal year 2021.

Balance Sheet and Cash Flow:

  • Cash, cash equivalents and invested corporate cash totaled $206.7 million at the end of the year.
  • Cash flow from operations for fiscal year 2021 was $124.9 million compared to $112.7 million for fiscal year 2020.
  • Free cash flow, a non-GAAP measure, was $86.8 million or 13.7% of revenue for fiscal year 2021.

A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release, including the accompanying tables. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Business Outlook

Based on information available as of August 5, 2021, Paylocity is issuing guidance for the first quarter and full fiscal year 2022 as indicated below.

First Quarter 2022:

  • Total revenue is expected to be in the range of $171.5 million to $175.5 million, which represents approximately 26% – 29% growth over fiscal 2021 first quarter revenue.
  • Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $37.8 million to $40.8 million.

Fiscal Year 2022:

  • Total revenue is expected to be in the range of $790.0 million to $795.0 million, which represents approximately 25% growth over fiscal year 2021 revenue.
  • Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $209.5 million to $213.5 million.

We are unable to reconcile forward-looking non-GAAP Adjusted EBITDA to its directly comparable GAAP financial measure because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort.

Conference Call Details

Paylocity will host a conference call to discuss its fourth quarter and full fiscal year 2021 results at 4:30 p.m. Central Time today (5:30 p.m. Eastern Time). A live audio webcast of the conference call, together with detailed financial information, can be accessed through the company's Investor Relations Web site at www.paylocity.com. Participants who choose to call in to the conference call can do so by dialing (855) 226-3021 or (315) 625-6892, passcode 1946417. A replay of the call will be available and archived via webcast at www.paylocity.com.

About Paylocity

Paylocity is a leading provider of cloud-based HR and payroll software solutions headquartered in Schaumburg, IL. Founded in 1997 and publicly traded since 2014, Paylocity offers an intuitive, easy-to-use product suite that helps businesses tackle today’s challenges while moving them toward the promise of tomorrow. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help people achieve their best through automation, data-driven insights, and engagement. For more information, visit www.paylocity.com.

Non-GAAP Financial Measures
The company uses certain non-GAAP financial measures in this release, including Adjusted EBITDA, adjusted gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP net income per share, non-GAAP sales and marketing, non-GAAP total research and development and non-GAAP general and administrative and free cash flow. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We define Adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit), and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described later in this release. Adjusted gross profit is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and amortization of capitalized internal-use software costs. Non-GAAP operating income is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described later in this release. Non-GAAP sales and marketing expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises. Non-GAAP general and administrative expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described later in this release. Non-GAAP net income and non-GAAP net income per share are adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described later in this release, including the income tax effect on these items, the valuation allowance release, excess tax benefit related to employee stock-based compensation payments and the impact of tax reform. Non-GAAP total research and development is adjusted for capitalized internal-use software costs and to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and acquisition-related costs. Free cash flow is defined as net cash provided by operating activities less capitalized internal-use software costs, purchase of property and equipment and lease allowances used for tenant improvements. Please note that other companies may define their non-GAAP financial measures differently than we do. Management presents certain non-GAAP financial measures in this release because it considers them to be important supplemental measures of performance. Management uses these non-GAAP financial measures for planning purposes, including analysis of the company's performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company's financial and operational performance. Management also intends to provide these non-GAAP financial measures as part of the company’s future earnings discussions and, therefore, the inclusion of the non-GAAP financial measures should provide consistency in the company’s financial reporting. Non-GAAP financial measures have limitations as an analytical tool. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures provided in this release.

Safe Harbor/Forward Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding Paylocity’s future operations, ability to scale its business, future financial position and performance, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “seek” and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about management's estimates regarding future revenues and financial performance and other statements about management’s beliefs, intentions or goals. Paylocity may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on Paylocity’s forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from 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.

PAYLOCITY HOLDING CORPORATION
Consolidated Balance Sheets
(in thousands, except per share data)

       
  As of June 30
  2020    2021
Assets      
Current assets:      
Cash and cash equivalents $250,851 $202,287
Corporate investments  34,556  4,456
Accounts receivable, net  4,923  6,267
Deferred contract costs  32,332  44,230
Prepaid expenses and other  13,188  15,966
Total current assets before funds held for clients  335,850  273,206
Funds held for clients  1,327,304  1,759,677
Total current assets  1,663,154  2,032,883
Capitalized internal-use software, net  36,501  45,018
Property and equipment, net  66,737  59,835
Operating lease right-of-use assets  48,658  43,984
Intangible assets, net  13,360  13,027
Goodwill  21,655  33,650
Long-term deferred contract costs  125,711  170,663
Long-term prepaid expenses and other  4,917  4,223
Deferred income tax assets  4,955  11,602
Total assets $1,985,648 $2,414,885
       
Liabilities and Stockholders’ Equity      
Current liabilities:      
Accounts payable $1,755 $4,230
Accrued expenses  79,881  103,109
Total current liabilities before client fund obligations  81,636  107,339
Client fund obligations  1,327,304  1,759,677
Total current liabilities  1,408,940  1,867,016
Long-term debt  100,000  
Long-term operating lease liabilities  73,299  67,201
Other long-term liabilities  1,747  1,958
Deferred income tax liabilities  8,754  1,780
Total liabilities $1,592,740 $1,937,955
Stockholders’ equity:      
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2020 and June 30, 2021 $ $
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2020 and June 30, 2021; 53,792 shares issued and outstanding at June 30, 2020 and 54,594 shares issued and outstanding at June 30, 2021  54  55
Additional paid-in capital  227,907  241,718
Retained earnings  164,272  235,091
Accumulated other comprehensive income  675  66
Total stockholders' equity $392,908 $476,930
Total liabilities and stockholders’ equity $1,985,648 $2,414,885

PAYLOCITY HOLDING CORPORATION
Consolidated Statements of Operations and Comprehensive Income
(in thousands, except per share data)

              
  Three Months Ended  For the Years Ended  
  June 30 June 30 
     2020     2021     2020    2021  
Revenues:             
Recurring and other revenue $129,264  $166,530  $546,212 $631,725  
Interest income on funds held for clients  1,325   921   15,117  3,902  
Total revenues  130,589   167,451   561,329  635,627  
Cost of revenues  45,875   59,050   182,010  219,298  
Gross profit  84,714   108,401   379,319  416,329  
Operating expenses:             
Sales and marketing  33,083   46,304   145,134  161,808  
Research and development  17,350   20,264   62,766  76,707  
General and administrative  27,965   32,733   105,248  119,771  
Total operating expenses  78,398   99,301   313,148  358,286  
Operating income  6,316   9,100   66,171  58,043  
Other income (expense)  (247)  (96)  947  (939) 
Income before income taxes  6,069   9,004   67,118  57,104  
Income tax expense (benefit)  1,119   (2,879)  2,663  (13,715) 
Net income $4,950  $11,883  $64,455 $70,819  
Other comprehensive income (loss), net of tax  777   (73)  563  (609) 
Comprehensive income $5,727  $11,810  $65,018 $70,210  
              
Net income per share:             
Basic $0.09  $0.22  $1.20 $1.30  
Diluted $0.09  $0.21  $1.15 $1.26  
              
Weighted-average shares used in computing net income per share:             
Basic  53,731   54,533   53,547  54,318  
Diluted  55,970   56,351   55,807  56,305  

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises for each of the three and twelve months ended June 30 are included in the above line items:

  Three Months Ended
June 30
 For the Years Ended
June 30
  2020    2021    2020    2021
Cost of revenues $1,605 $1,947 $6,217 $8,348
Sales and marketing  3,215  4,057  14,494  16,425
Research and development  2,299  2,745  7,855  11,022
General and administrative  6,374  7,977  21,798  31,264
Total stock-based compensation expense $13,493 $16,726 $50,364 $67,059

PAYLOCITY HOLDING CORPORATION
Consolidated Statements of Cash Flows
(in thousands)

          
  For the Years Ended June 30
  2019     2020     2021 
Cash flows from operating activities:         
Net income $53,823  $64,455  $70,819 
Adjustments to reconcile net income to net cash provided by operating activities:         
Stock-based compensation expense  38,765   47,493   63,052 
Depreciation and amortization expense  34,564   37,913   42,972 
Deferred income tax expense (benefit)  4,134   2,754   (13,642)
Provision for credit losses  283   309   316 
Net accretion of discounts and amortization of premiums on available-for-sale securities  (2,230)  (1,836)  347 
Amortization of debt issuance costs     154   171 
Other  454   395   632 
Changes in operating assets and liabilities:         
Accounts receivable  (1,188)  (732)  (1,654)
Deferred contract costs  (34,992)  (54,944)  (56,850)
Prepaid expenses and other  389   (196)  (4,004)
Accounts payable  (75)  (806)  2,394 
Accrued expenses and other  13,625   17,696   20,297 
Tenant improvement allowance  7,480       
   Net cash provided by operating activities  115,032   112,655   124,850 
Cash flows from investing activities:         
Purchases of available-for-sale securities and other  (250,685)  (400,343)   
Proceeds from sales and maturities of available-for-sale securities  246,243   410,593   101,467 
Capitalized internal-use software costs  (20,142)  (25,715)  (28,594)
Purchases of property and equipment  (11,280)  (16,578)  (9,461)
Lease allowances used for tenant improvements  (7,480)      
Acquisition of business, net of cash acquired     (16,714)  (14,992)
   Net cash provided by (used in) investing activities  (43,344)  (48,757)  48,420 
Cash flows from financing activities:         
Net change in client fund obligations  168,855   (67,165)  432,373 
Borrowings under credit facility     100,000    
Repayment of credit facility        (100,000)
Payment of contingent consideration  (1,000)      
Repurchases of common shares  (34,991)      
Proceeds from exercise of stock options  85      146 
Proceeds from employee stock purchase plan  5,982   8,901   12,214 
Taxes paid related to net share settlement of equity awards  (24,207)  (38,943)  (64,191)
Payment of debt issuance costs     (701)  (64)
   Net cash provided by financing activities  114,724   2,092   280,478 
Net change in cash, cash equivalents and funds held for clients' cash and cash equivalents  186,412   65,990   453,748 
Cash, cash equivalents and funds held for clients' cash and cash equivalents—beginning of year  1,239,731   1,426,143   1,492,133 
Cash, cash equivalents and funds held for clients' cash and cash equivalents—end of year $1,426,143  $1,492,133  $1,945,881 
Supplemental Disclosure of Non-Cash Investing and Financing Activities         
Build-out allowances received from landlords $1,264  $  $ 
Purchases of property and equipment and internal-use software, accrued but not paid $4,260  $164  $581 
Liabilities assumed for acquisition $  $674  $281 
Supplemental Disclosure of Cash Flow Information         
Cash paid for interest $  $438  $870 
Cash paid (refunds received) for income taxes $412  $84  $(136)
Reconciliation of cash, cash equivalents and funds held for clients' cash and cash equivalents to the Consolidated Balance Sheets         
Cash and cash equivalents $132,476  $250,851  $202,287 
Funds held for clients' cash and cash equivalents  1,293,667   1,241,282   1,743,594 
Total cash, cash equivalents and funds held for clients' cash and cash equivalents $1,426,143  $1,492,133  $1,945,881 



Paylocity Holding Corporation 
Reconciliation of GAAP to non-GAAP Financial Measures 
(In thousands except per share data) 
              
           
   Three Months  For the Year 
   Ended  Ended 
   June 30,  June 30, 
   2020   2021   2020   2021  
Reconciliation from Gross profit to Adjusted gross profit:             
Gross profit $84,714  $108,401  $379,319  $416,329  
Amortization of capitalized internal-use software costs  5,188   5,954   19,261   23,227  
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises  1,605   1,947   6,217   8,348  
Adjusted gross profit $91,507  $116,302  $404,797  $447,904  
              
   Three Months  For the Year 
   Ended  Ended 
   June 30,  June 30, 
   2020   2021   2020   2021  
Reconciliation from Operating income to Non-GAAP operating income:             
Operating income $6,316  $9,100  $66,171  $58,043  
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises  13,493   16,726   50,364   67,059  
Amortization of acquired intangibles  835   1,028   2,523   3,840  
Other items (1)  738   514   3,685   1,891  
Non-GAAP operating income $21,382  $27,368  $122,743  $130,833  
              
   Three Months  For the Year 
   Ended  Ended 
   June 30,  June 30, 
   2020   2021   2020   2021  
Reconciliation from Net income to Non-GAAP net income:             
Net income $4,950  $11,883  $64,455  $70,819  
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises  13,493   16,726   50,364   67,059  
Amortization of acquired intangibles  835   1,028   2,523   3,840  
Other items (1)  738   514   3,685   1,891  
Income tax effect on adjustments (2)  (2,223)  (4,212)  (16,389)  (24,814) 
Non-GAAP net income $17,793  $25,939  $104,638  $118,795  
              
   Three Months  For the Year 
   Ended  Ended 
   June 30,  June 30, 
   2020   2021   2020   2021  
Calculation of Non-GAAP net income per share:             
Non-GAAP net income $17,793  $25,939  $104,638  $118,795  
Diluted weighted-average number of common shares  55,970   56,351   55,807   56,305  
Non-GAAP net income per share $0.32  $0.46  $1.87  $2.11  
              
   Three Months  For the Year 
   Ended  Ended 
   June 30,  June 30, 
   2020   2021   2020   2021  
Reconciliation from Net income to Adjusted EBITDA:             
Net income $4,950  $11,883  $64,455  $70,819  
Interest expense  405   107   695   1,002  
Income tax expense (benefit)  1,119   (2,879)  2,663   (13,715) 
Depreciation and amortization expense  10,081   10,902   37,913   42,972  
EBITDA  16,555   20,013   105,726   101,078  
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises  13,493   16,726   50,364   67,059  
Other items (1)  738   514   3,685   1,891  
Adjusted EBITDA $30,786  $37,253  $159,775  $170,028  
              
   Three Months  For the Year 
   Ended  Ended 
   June 30,  June 30, 
   2020   2021   2020   2021  
Reconciliation of Non-GAAP Sales and Marketing:             
Sales and marketing $33,083  $46,304  $145,134  $161,808  
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises  3,215   4,057   14,494   16,425  
Non-GAAP sales and marketing $29,868  $42,247  $130,640  $145,383  
              
   Three Months  For the Year 
   Ended  Ended 
   June 30,  June 30, 
   2020   2021   2020   2021  
Reconciliation of Non-GAAP total Research and Development:             
Research and development $17,350  $20,264  $62,766  $76,707  
Capitalized internal-use software costs  6,502   6,930   25,715   28,594  
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises  2,299   2,745   7,855   11,022  
Other items (3)  228   159   228   759  
Non-GAAP total research and development $21,325  $24,290  $80,398  $93,520  
              
   Three Months  For the Year 
   Ended  Ended 
   June 30,  June 30, 
   2020   2021   2020   2021  
Reconciliation of Non-GAAP General and Administrative:             
General and administrative $27,965  $32,733  $105,248  $119,771  
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises  6,374   7,977   21,798   31,264  
Amortization of acquired intangibles  835   1,028   2,523   3,840  
Other items (1)  510   355   3,457   1,132  
Non-GAAP general and administrative $20,246  $23,373  $77,470  $83,535  
              
         For the Year 
         Ended 
         June 30, 
         2020   2021  
Reconciliation of Free Cash Flow:             
Net cash provided by operating activities       $112,655  $124,850  
Capitalized internal-use software costs        (25,715)  (28,594) 
Purchases of property and equipment        (16,578)  (9,461) 
Free Cash Flow       $70,362  $86,795  
              
              
(1)  Represents nonrecurring costs including acquisition-related and lease exit costs. Also includes the settlement of a certain legal matter and related litigation costs during the year ended June 30, 2020.         
              
(2) Includes the income tax effect on non-GAAP net income adjustments related to stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, amortization of acquired intangibles and other items.         
              
(3)  Represents certain nonrecurring acquisition-related costs.         

CONTACT:
Ryan Glenn
investors@paylocity.com
www.paylocity.com


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Source: Paylocity