SA News • Mon, Dec. 8
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- Paylocity has been able to grow revenue nearly 40% annually over the last several years. Revenue growth has coincided with an increase in gross margin.
- Paylocity's growth has been the result of strong demand from the customer base but also rapid customer growth. The company will need to continue to rapidly acquire new customers.
- Due to their current size and market environment, Paylocity should continue to rapidly grow revenue and their customer base over the next few years.
- However, the midsized market will start to get more competitive. Over the next few years, management will need to figure out how to maintain growth in a more competitive market.
- The midsized market represents a sizable market opportunity. Due to their current size, Paylocity should continue to rapidly grow revenue. As a result, Paylocity should continue to outperform.
Standing Behind My Full Year Paylocity Price Target And Talking Operational Consistency
- PCTY should be at $20 to end the calendar year - a price target I set in mid-May and that looked within reach before the recent beta driven pullback.
- PCTY should grow FFY15 revenues at least 40%.
- PCTY had cash provided by operations that was in trend line despite having a net loss growth of ~$7 million.
Short-Term Losses, Trading Opportunity In Sight For Paylocity Holding Corp.
- September 14 will mark the end of the 180 day lockup period initiated with the March 18, 2014 IPO of PCTY.
- Recent research shows price declines of between (-2%) and (-5.5%) in the time period surrounding a company's lockup expiration.
- Although PCTY has performed relatively well since bottoming out in May, the supply shock in sight with the freeing up of 41.9 million shares suggests a short opportunity ahead.
Paylocity Looks Good Into Earnings And Into Year-End
- PCTY should benefit greatly in FQ3/FQ4 from a rush to meet compliance with new health care regulation.
- PCTY should post at worst another great quarter of revenue growth, expense management, and consistent break-even management of its bottom line.
- Several technical factors should help take PCTY's stock higher into year-end.
Paylocity Holding Corp. Could Realistically Have 66% Upside Into Year End
- PCTY has an incredibly profitable underlying business.
- PCTY has invested in the future at little cost to the present.
- PCTY will have a best of breed, first to deploy advantage at helping solve the healthcare reform HCM problem.
- Cloud-based provider of payroll and HCM software solutions for medium-sized organizations.
- Top line increased 40% for the six months ended December '13 vs December '12.
- March is the largest quarter in PCTY's business.
- PCTY believes its current target addressable market is $8.0 billion.
Paylocity IPO Could Pay Your Bills With Expected Pop On Wednesday
- PCTY plans to raise $100.1 million in its upcoming IPO, by offering 6.7 million shares at an expected range of $14-$16 per share.
- PCTY is a cloud-based provider of software for payroll and human capital management, facing stiff competition from similar companies, including ADP and PayChex Inc.
- We are positive on this IPO, given PCTY's impressive revenue yet unsteady quarterly results.
Mon, Dec. 8, 6:47 PM| Comment!
Thu, Nov. 6, 4:15 PM
Mon, Oct. 13, 5:07 PM
- In an article now out of embargo, David Hernandez observes Paylocty (PCTY +3.1%) has posted a 40% revenue CAGR over its last 4 fiscal year, thanks in large part to the ability of its cloud payroll software to take share from traditional payroll outsourcing providers such as ADP and Paychex (NASDAQ:PAYX).
- He notes Paylocity CEO Steve Beauchamp declared on a May CC (transcript) "more than 50% of our new business" comes from displacing traditional payroll outsources, while adding "ADP and Paychex would be the two most common providers in that space."
- ADP has rolled out its own cloud payroll offerings in an attempt to counter upstarts such as Paylocity. Paychex bought online payroll service provider SurePayroll in 2011.
- Though admitting ADP and Ultimate Software are beginning to provide tougher competition in Paylocity's midmarket niche, Hernandez still sees plenty of room for growth in the near-term, given the company has penetrated less than 2% of the midmarket (estimated to have 656K organizations as of 2010).
Thu, Aug. 14, 5:35 PM
Thu, Aug. 14, 4:08 PM
Wed, Aug. 13, 5:35 PM
Mon, Apr. 14, 9:52 AM
- Stratasys (SSYS +1.5%) has been started at Buy by Goldman, and 3D Systems (DDD -3.1%) at Neutral. Shares of both companies (like those of many high-beta tech names) were clobbered last week. UBS issued similar opinions for Stratasys and 3D Systems two weeks ago.
- VMware (VMW +1.3%) has received a two-notch upgrade to Outperform from CLSA ahead of its April 22 Q1 report.
- F5 (FFIV +4.1%) has been upgraded to Buy by Stifel. Q1 results arrive on April 23.
- Palo Alto Networks (PANW +1.2%) has been upgraded to Overweight by both Barclays and Stephens.
- TTM Technologies (TTMI +3.1%) has been upgraded to Buy by Stifel and UBS.
- CalAmp (CAMP +1.7%) has been upgraded to Buy by B. Riley.
- STMicroelectronics (STM -2.3%) has been cut to Sell by UBS. Q1 results arrive on April 29.
- AudioCodes (AUDC +4.1%) has been started at Buy by Needham. Shares rose last week after the Israeli government approved an R&D program involving the company.
- ChannelAdvisor (ECOM +1.2%) has been started at Buy by Janney.
- Paylocity (PCTY +1.4%) has received five bullish ratings and one neutral rating on underwriter coverage day. Q2 (QTWO +3.1%) has received six bullish ratings.
Wed, Mar. 19, 10:53 AM
- Another week, another strong cloud software IPO. After pricing its 7.045M-share IPO at $17 (above an expected range of $14-$16), Paylocity (PCTY) opened at $31 and is currently at $27.40, up 61%.
- The cloud HR/payroll software vendor sports a market cap of $1.34B, or 17x FY13 (ended June '13) sales. Paylocity's first-day showing could bode well cloud HR software firm Paycom's (PAYC) upcoming IPO.
- Prospectus, IPO preview
Wed, Mar. 19, 8:11 AM
- Cloud-based provider of payroll and human capital management software solutions, Paylocity (PCTY) prices its IPO at $17 per share vs. the expected range of $14-$16. The company also lifts the offering size by nearly 400K shares to 7.045M shares.
- At $17, the company market cap will be $832M, or about 9x sales.
- IPO Preview
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