Airbase Upsell, Float Income, Buybacks: The Overlooked Catalysts In Paylocity's Model

(10min)

Summary

  • Paylocity Holding operates a SaaS subscription model, charging clients a transparent per-employee-per-month rate for payroll and HR services.
  • The business model aligns revenue growth with clients' expanding workforces, creating a scalable and recurring revenue stream.
  • 90% of revenue is recurring, providing strong visibility into future cash flows and financial stability.
  • PCTY stock demonstrates operating leverage, as revenue growth does not require proportional increases in costs, enhancing profitability.

Modern Human Resources Hiring Job Occupation Concept. Business Technology

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Summary

Paylocity Holding Corporation (NASDAQ:PCTY) is a best-in-class, cloud-native human capital management (HCM) and payroll platform as it delivers sticky and mission-critical recurring revenue at high margins with good growth potential. Even though it faces headcount cycles, and trading at a premium

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