Paylocity Reports Earnings Tomorrow. What To Expect

Adam Hejl /
2022/02/02 6:01 am EST

Payroll and human resources software provider, Paylocity (NASDAQ:PCTY) will be reporting earnings tomorrow after market hours. Here's what investors should know.

Last quarter Paylocity reported revenues of $181.6 million, up 33.8% year on year, beating analyst revenue expectations by 4.43%. It was a strong quarter for the company, with a full year guidance beating analysts' expectations and a solid top line growth.

Is Paylocity buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Paylocity's revenue to grow 26.2% year on year to $184.8 million, improving on the 10.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Earnings are expected to come in at $0.43 per share.

Paylocity Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.53%.

Looking at Paylocity's peers in the finance and HR software segment, only Paychex has so far reported results, delivering top-line growth of 12.6% year on year, and beating analyst estimates by 4.63%. The stock traded up 6.16% on results. Read our full analysis of Paychex's earnings results here.

Tech stocks have been under pressure since the end of last year and while some of the finance and HR software stocks have fared somewhat better, they have not been spared, with share price declining 8.92% over the last month. Paylocity is down 6.07% during the same time, and is heading into the earnings with analyst price target of $261.7, compared to share price of $208.9.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.