Paylocity's Scale-Up Is Progressing Nicely
Paylocity's Near-Term Growth Prospects Look Good
Tue, Feb. 16, 3:05 PM
- Plenty of tech companies are posting outsized gains on a day the Nasdaq is up 2%. Not surprisingly, many of the standouts are companies that have been hammered since New Year's.
- Notable gainers include action camera leader GoPro (GPRO +12.9%) and GoPro video processor supplier Ambarella (AMBA +6.2%), threat-prevention tech provider FireEye (FEYE +11.2%), supercomputer maker Cray (CRAY +19.5%), chip packaging/testing firm ChipMOS (IMOS +17.8%), point-of-sale hardware/software firm NCR (NCR +9.7%), Web hosting/domain registration firm GoDaddy (GDDY +9%), and driver-assistance system provider Mobileye (MBLY +7.4%). FireEye fell on Friday in the wake of its Q4 report.
- Other big gainers: RF chipmakers Skyworks (SWKS +6.4%) and Qorvo (QRVO +8.9%), 4G modem/M2M module maker Sierra Wireless (SWIR +8%), microcontroller/flash memory maker Cypress Semi (CY +7.5%), microphone maker Knowles (KN +8%), inventory-tracking hardware firm Zebra Technologies (ZBRA +8.5%), cloud HR software firm Paylocity (PCTY +7.8%), cloud collaboration/chat software firm Atlassian (TEAM +10.5%), touch controller/display driver vendor Synaptics (SYNA +7.8%), and online P2P lender LendingClub (LC +14.2%). LendingClub rallied last week after posting a Q4 beat and announcing a $150M buyback.
- Previously covered: Solar stocks, Chinese tech stocks, Groupon, Sonus, Black Box, Canadian Solar, Palo Alto Networks, Qualcomm
Mon, Feb. 8, 2:37 PM
- Many tech stocks are seeing 6%+ losses as investors flee to safety yet again. The Nasdaq is down 3.4%, and the S&P 2.7%.
- As was the case on Friday following Tableau and LinkedIn's disappointing guidance, a slew of enterprise tech stocks are seeing big losses, with cloud software and security tech names well-represented on the casualty list.
- Also: Solar stocks are having another brutal day (TAN -6.7%) as energy stocks get routed amid fears Chesapeake Energy is close to bankruptcy. WTI crude oil is once more near $30/barrel.
- Enterprise software decliners: Adobe (ADBE -9.6%), Paylocity (PCTY -19.1%), Salesforce (CRM -9.9%), Workday (WDAY -12%), Guidewire (GWRE -12.5%), ServiceNow (NOW -11.5%), Zendesk (ZEN -13.8%), Paycom (PAYC -13.4%), Marin Software (MRIN -10.3%), Castlight (CSLT -8.4%), Cornerstone OnDemand (CSOD -12.1%), Atlassian (TEAM -13.2%), inContact (SAAS -9.6%), and Bazaarvoice (BV -14.5%).
- Enterprise security decliners: Palo Alto Networks (PANW -12.2%), FireEye (FEYE -9.8%), CyberArk (CYBR -11.5%), Proofpoint (PFPT -12.7%), Qualys (QLYS -8.9%), Imperva (IMPV -9.7%), Rapid7 (RPD -9.4%), and Barracuda (CUDA -8.4%).
- Solar decliners: SunEdison (SUNE -11.3%), SunPower (SPWR -8.8%), JinkoSolar (JKS -7.6%), SolarEdge (SEDG -7.9%), Yingli (YGE -7.1%), TerraForm Power (TERP -10.7%), and TerraForm Global (GLBL -9.2%).
- Other major decliners: Micron (MU -9.1%), Western Digital (WDC -10.5%), Arista (ANET -10.9%), Universal Display (OLED -10.6%), Rackspace (RAX -11.3%), Fitbit (FIT -8.7%), Nimble Storage (NMBL -11.3%), Sierra Wireless (SWIR -9.9%), Rocket Fuel (FUEL -9.8%), Knowles (KN -9%), Mitel (MITL -8.9%), and Alarm.com (ALRM -8.9%).
- Previously covered: Yelp, Cognizant, Tableau, Globant, Ambarella, European tech stocks
Fri, Feb. 5, 5:37 PM
- Up in after hours trading yesterday following the company's FQ2 report, Paylocity (NASDAQ:PCTY) finished with steep losses today. Many other enterprise software firms, including cloud HR peers Workday, Ultimate Software, and Paycom, saw even bigger losses following weak guidance from Tableau and LinkedIn.
- Paylocity has guided for FQ3 revenue of $66.5M-$67.5M and EPS of $0.13-$0.15, above a pre-earnings consensus of $64.5M and $0.12. FY16 (ends June '16) guidance is for revenue of $223M-$225M and EPS of $0.18-$0.19, above a consensus of $212.6M and $0.07.
- The company attributed its FQ2 performance to strong sales execution and growing demand for its ACA Enhanced compliance offering. GAAP operating expenses rose 43% Y/Y to $32.4M (compares with 61% revenue growth).
- Paylocity's FQ2 results, earnings release
Thu, Feb. 4, 4:15 PM
Tue, Jan. 26, 8:22 AM
- Cloud ERP/e-commerce software firm NetSuite (NYSE:N), cloud marketing automation software firm Marketo (NASDAQ:MKTO), and cloud HR/payroll software firm Paylocity (NASDAQ:PCTY) have each been downgraded to Underperform by BofA/Merrill ahead of their calendar Q4 reports.
- Separately, Piper's Katherine Egbert has cut her NetSuite target by $6 to $72, while reiterating an Underweight rating. She expects NetSuite to deliver in-line Q4 results when the company reports on Thursday afternoon, with "some potential for upside in 2016 guidance" thanks to the Bronto Software acquisition. "N's premium multiple seems reflective of the unique ownership structure, potential M&A and relatively low float. A multiple closer to the high 20%'s revenue and billings growth rate would make the stock a more compelling buy in our view."
- Paylocity is down 2.3% premarket; NetSuite and Marketo haven't yet moved. Paylocity, which soared post-earnings in November, reports on Feb. 4. Marketo, which briefly dropped post-earnings in October, reports on Feb. 9.
Wed, Jan. 13, 2:59 PM
- It's another ugly day for stocks, with the S&P down 2.1% and the Nasdaq 2.9%. Many high-beta tech names are naturally seeing even steeper declines.
- Major decliners include driver-assistance hardware/software provider Mobileye (MBLY -6.4%), travel reviews/bookings search site TripAdvisor (TRIP -5.8%), mobile payments provider/recent IPO Square (SQ -7%), online furniture leader Wayfair (W -6.2%), craft/vintage goods marketplace Etsy (ETSY -7.2%), SMB Web services provider Wix.com (WIX -7.9%), and CAD/CAM software leader Autodesk (ADSK -7.7%).
- Others include gaming headset vendor local reviews leader Yelp (YELP -6%), Turtle Beach (HEAR -19.5%), wireless charging tech developer Energous (WATT -14.2%), cloud HR software firm Paylocity (PCTY -7.3%), e-commerce software/services firm Shopify (SHOP -8.9%), e-commerce services firm ChannelAdvisor (ECOM -8.5%), mainframe/IT services provider Unisys (UIS -7%), and car-buying site TrueCar (TRUE -6.7%).
- Previously covered: Qorvo, Cimpress, Tableau, Multi-Fineline, LendingTree, Twitter
Dec. 2, 2015, 2:50 PM
- TheStreetSweeper highlights recent major sales of Paycom (NYSE:PAYC) shares from P-E firm WCAS, and the Dec. 28 release of 18M shares from insiders. It also argues sales could drop following January and March 2016 Obamacare compliance deadlines, given Obamacare has fueled demand for Paycom's cloud HCM/HR software offerings and customers are allowed to cancel with just 30 days prior notice.
- The site adds Paycom faces competition from Zenefits, ADP, Intuit, Salesforce, Palo Alto Software, and others, and suggests the market is overheated the way the 3D printing space recently was. "We think $22 per share is a very fair, near-term valuation for this stock."
- Peer Paylocity (NASDAQ:PCTY) is down moderately. Paycom jumped a month ago thanks to a Q3 beat and strong guidance.
Nov. 6, 2015, 12:22 PM
- In addition to beating FQ1 estimates, Paylocity (NASDAQ:PCTY) is guiding for FQ2 revenue of $48M-$49M and EPS of -$0.04 to -$0.02, above a consensus of $45.4M and -$0.08. The company also now expects FY16 (ends June '16) revenue of $210M-$214M and EPS of $0.04-$0.07, above a consensus of $201.6M and -$0.05.
- Cloud HR/HCM software leader Workday (WDAY +2.5%) is following Paylocity higher. Cornerstone OnDemand's strong 2016 outlook might also be helping. Two days ago, Paylocity rallied in response to Paycom's Q3 beat and strong Q4 guidance. Workday's FQ3 report is expected later this month.
- Paylocity CEO Steve Beauchamp: "We continue to see strong demand for our unified payroll and HCM platform and are encouraged by the response to our ACA Enhanced product offering," Adjusted gross margin rose 450 bps Y/Y to 58.8%. GAAP operating expenses rose 37% Y/Y to $28.3M.
- Paylocity's Q3 beat, PR
Nov. 4, 2015, 1:22 PM
- Paycom (NYSE:PAYC) has surged to new highs after beating Q3 estimates and guiding for Q4 revenue of $59.5M-$61.5M, above a $56.3M consensus. Cloud HR/HCM software peer Paylocity (NASDAQ:PCTY), which reports tomorrow afternoon, is along for the ride. Both companies rallied last week after Ultimate Software provided strong 2016 guidance to go with mixed Q3 results.
- Paycom's annualized new recurring revenue rose 113% Y/Y in Q3 to $31.8M. Total revenue growth accelerated to 51% from Q2's 47%. GAAP operating expenses rose 52% to $39.6M, of which $23.8M was spent on sales/marketing.
- Paycom's Q3 results, PR
Sep. 14, 2015, 6:20 PM
- Paylocity (NASDAQ:PCTY) has filed to allow founder/chairman Steve Sarowitz, CFO Pete McGrail, and P-E firm Adams Street Partners sell up to 3.74M shares through a secondary offering. Underwriters will have an 561K-share overallotment option. (S-3)
- Not counting the overallotment option, Sarowitz, McGrail and Adams Street are respectively selling 2.2M, 40K, and 1.5M share, thereby lowering their stakes to 33%, 1.2%, and 15.4%.
- Shares have fallen to $32.95 after hours.
Aug. 14, 2015, 11:42 AM
- While Paylocity (NASDAQ:PCTY) beat FQ4 estimates, it's guiding for FQ1 EPS of -$0.07 to -$0.09 (below a -$0.03 consensus), and FY16 (ends June '16) EPS of -$0.04 to -$0.08 (below a $0.02 consensus).
- Revenue guidance is stronger: FQ1 revenue of $41M-$42M (above a $40.3M consensus), and FY16 revenue of $199M-$203M (above a $191.5M consensus and good for 32% Y/Y growth at the midpoint).
- Heavy spending is set to pressure EPS: CEO Steve Beauchamp stated on the earnings call (transcript) Paylocity plans to grow its quota-carrying sales reps by 30% in FY16 to 164, and also plans to continue investing heavily in R&D. Operating expenses (non-GAAP) rose 41% Y/Y in FQ4 to $25.4M.
- The customer base for Paylocity's cloud HCM/talent management software rose 22% in FY15 to 10,350. Average recurring revenue per client grew 16% to $13,900.
- FQ4 results, PR
May 19, 2015, 5:40 PM
May 8, 2015, 3:15 PM
- Healthcare software/IT services provider Allscripts (MDRX +6.6%) is rallying after reporting a 6% Y/Y increase in bookings (to $236M) to go with a Q1 miss. The bookings growth reverses an 11% Q4 decline; 63% of bookings came from software/recurring transactions vs. 54% a year ago.
- Cloud HR software vendor Paylocity (PCTY +14.1%) has soared after beating FQ3 estimates, and guiding for FQ4 revenue of $37.5M-$38.5M and EPS of -$0.05 to -$0.07; the former is above a $37.4M consensus, and the latter in-line with a -$0.06 consensus. The FQ3 beat was driven by a 41% Y/Y increase in recurring revenue to $43.9M.
- Optical component vendor NeoPhotonics (NPTN +20%) has soared after beating Q1 revenue estimates (while missing on EPS), and guiding for Q2 revenue of $83M-$89M and EPS of $0.09-$0.18 (mostly above a consensus of $84M and $0.10). Strong 100G component demand remains a major growth driver.
- Contract manufacturer Multi-Fineline (MFLX +11.3%) has made new 52-week highs after beating Q1 estimates and guiding for Q2 revenue of $135M-$165M (in-line with a $147.5M consensus).
- Cloud revenue management software vendor ServiceSource (SREV +16%) is flying higher after beating Q1 estimates. The company guided on its CC (transcript) for Q2 revenue of $56M-$60M and EPS of -$0.08 to -$0.09 vs. a consensus of $58.4M and -$0.07.
- Previously covered: AOL, Ebix, Tableau, CyberArk/Imperva, Silver Spring, Universal Display, SolarEdge, Nuance
Apr. 10, 2015, 3:05 PM
- Today's notable tech gainers include IP licensing firm VirnetX (VHC +6%), custom parts maker Proto Labs (PRLB +4.6%), printing plate/commercial film maker Eastman Kodak (KODK +3.9%), cloud HR software vendor Paylocity (PCTY +3.7%), cloud telecom expense software vendor Tangoe (TNGO +4.2%), and cloud tech support software vendor Support.com (SPRT +6.7%). The Nasdaq is up 0.4%.
- Only a few tech companies are posting major declines. The group includes Chinese online video platform Youku (YOKU -5.7%) and mainframe/high-end server maker Unisys (UIS -3.4%).
- Following a rough 2014, VirnetX is up 34% in 2015; 15.9M shares were shorted as of March 13. Proto Labs has broken out of the narrow range shares have traded in since mid-February. Support.com's gains come a day after the company disclosed a new contract with Comcast. Paylocity is erasing the losses seen yesterday following a BofA downgrade. Kodak is up 13% since posting Q4 results on March 16.
- Youku, quite volatile lately, is giving back a chunk of Wednesday's big gains. Unisys' decline comes ahead of its April 23 Q1 report. On Wednesday, the company announced it's supplying high-end servers and cybersecurity software to NASA through the agency's SEWP V contract (covers multiple suppliers, worth up to $20B over 10 years).
- Previously covered: 3D Systems, Alcatel-Lucent, Nokia, LinkedIn, GoDaddy, FireEye, Turtle Beach, Mavenir/Mitel, Gigamon, Synacor
Apr. 9, 2015, 10:56 AM
- BofA/Merrill has downgraded cloud HR/payroll software vendor Paylocity (PCTY -5.9%) and cloud fleet management software vendor Fleetmatics (FLTX -3.2%) to Underperform, and cloud contact center software vendor Five9 (FIVN -4.7%) to Neutral. Rackspace (NYSE:RAX) and Citrix (NASDAQ:CTXS) have also been downgraded (to Neutral and Underperform, respectively), but are posting sub-1% declines.
- Shares of all 3 companies rallied in February in response to Q4 beats (I, II, III)
Feb. 19, 2015, 2:58 PM
- Today's notable tech gainers include fiber equipment provider Zhone (ZHNE +10.6%), IP licensing firm VirnetX (VHC +7%), healthcare software provider Allscripts (MDRX +4.8%), app development software provider Pegasystems (PEGA +6%), software outsourcing firm EPAM (EPAM +5.6%), security software/service provider Imperva (IMPV +5.3%), and cloud HR software provider Paylocity (PCTY +4.5%).
- Notable decliners include Chinese search/app store/security app provider Qihoo (QIHU -5.2%), Web hosting/cloud infrastructure provider Rackspace (RAX -3.9%), LED equipment maker Veeco (VECO -4.9%), and analog/mixed-signal chipmaker MagnaChip (MX -5%). The Nasdaq is up 0.4%.
- VirnetX is adding to the Wednesday gains seen after Apple patent review petitions were denied, and Qihoo is adding to the losses seen following a Jefferies downgrade.
- Rackspace and Veeco are reversing the gains they saw yesterday after posting their Q4 reports (I, II), and then some. MagnaChip is now down 58% since posting its Q1-Q3 results a week ago.
- Previously covered: SolarCity, Facebook, Castlight, Applied Materials, DragonWave, Nimble Storage, AVG, Ascent Solar, Netlist
Paylocity Holding Corp. engages in the development and provision of cloud-based software solution. It offers cloud-based payroll, human capital management applications, time labor tracking, benefits administration, and talent management. The company was founded on November 6, 2013 and is... More
Industry: Business Software & Services
Country: United States
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