Investor

Presentation

Q1 FY2023

Safe Harbor Statement

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 August 4, 2022, August 6, 2020 and August 9, 2018.

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

Our Business

We are a leading provider of cloud-based

HR and payroll software solutions

Employees

39% YoY

Clients

Headquarters

32% YoY

growth

34% YoY

growth

Employees

13% YoY

growth

average client

growth

size

20% YoY

growth

Best places to work

$636

$853

$1,125

Consistently awarded

$561

$182

$253

FY20

FY21

FY22

FY23

Q1 FY22

Q1 FY23

Guidance

Total Revenue (FYE June 30, $mm)

3

Core Addressable Market (TAM)

Current average

Over

client size of

1.3 million

100+

businesses

employees

33,300 clients

in the 10-5,000 segment of the market

as of June 30, 2022

~$255 Realized PEPY

Only 2.5% penetrated into addressable market

73 million employees

in the 10-5,000

segment of the market

Source: U.S. Census Bureau

4

Competitive Landscape

Average client size

Enterprise Market (10,000+ Employees)

5,000 Employees

Mid-Market

(51-1,000

Employees)

SMB Market

(1-50

Employees)

in-house solutions

~3,000 regional

providers

Workday/Ceridian - 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 - Enterprise solution focusing primarily on >1,000 employee companies - see them in some deals at the higher-end of our target market

Paycom - Average client size is larger than ours, see them in certain deals, but generally at the middle/higher-end of our target market

Paycor - Average client size is smaller than ours, see them in

Core Market certain deals, but generally 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

Paylocity differentiates with a payroll and HCM platform built for the modern workforce + best- in-class client support

Focused on taking share in our target market of more than 1.3 million businesses

In-House - Primarily lower end of the market

5

This is an excerpt of the original content. To continue reading it, access the original document here.

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Paylocity Holding Corp. published this content on 04 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2022 19:41:01 UTC.