 Q4 2020 Recurring Other Revenue of 129.3 million, up 13 year-over-year Q4 2020 Total Revenue of 130.6 million, up 8 year-over-year FY 2020 Recurring Other Revenue of 546.2 million, up 22 year-over-year FY 2020 Total Revenue of 561.3 million, up 20 year-over-year SCHAUMBURG, Ill., Aug. 06, 2020 GLOBE NEWSWIRE -- Paylocity Holding Corporation Nasdaq: PCTY, a leading provider of cloud-based HR and payroll software solutions, today announced financial results for the fourth quarter and full fiscal year 2020, which ended June 30, 2020.We had a solid fiscal 2020, which included 22 recurring and other revenue growth and a very strong year for our sales team, despite the impact COVID-19 had on macro-economic conditions in the fourth quarter, said Steve Beauchamp, Chief Executive Officer of Paylocity. Im proud of the dedication our employees showed in helping our clients navigate through a very uncertain time, coupled with a rapidly changing legislation landscape. We continue to see our commitment to product development pay dividends, with usage of our Learning Management and Community products up significantly during the fourth quarter. We also recently released a number of new product features and resources to help prospects and clients rethink how they recruit, rehire and engage their workforce in this new environment.Key Recent Achievements FY 2020 Recurring Other Revenue of 546.2 million, up 22 year-over-year FY 2020 Total Revenue of 561.3 million, up 20 year-over-year FY 2020 GAAP net income of 64.5 million and 1.15 per diluted share FY 2020 Adjusted EBITDA, a non-GAAP measure, of 159.8 million or 28.5 of revenue Ending FY 2020 cash, cash equivalents and invested corporate cash balance of 288.0 million Acquisition of VidGrid, a leading video platform provider that enables peer-to-peer video learning courses, completed in April 2020Fourth Quarter Fiscal 2020 Financial HighlightsRevenue: Total revenue was 130.6 million, an increase of 8 from the fourth quarter of fiscal year 2019. Recurring other revenue was 129.3 million, representing 99 of total revenue and an increase of 13 from the fourth quarter of fiscal year 2019 recurring other revenue.Operating Income: GAAP operating income was 6.3 million and Non-GAAP operating income was 21.4 million in the fourth quarter of fiscal year 2020.Net Income: GAAP net income was 5.0 million or 0.09 per share for the three months ended June 30, 2020 based on 56.0 million diluted weighted average common shares outstanding.Adjusted EBITDA: Adjusted EBITDA, a non-GAAP measure, was 30.8 million in the fourth quarter of fiscal year 2020.Fiscal Year 2020 Financial HighlightsRevenue: Total revenue was 561.3 million, an increase of 20 from fiscal year 2019. Recurring other revenue was 546.2 million, representing 97 of total revenue and an increase of 22 from fiscal year 2019 recurring other revenue.Operating Income: GAAP operating income was 66.2 million and non-GAAP operating income was 122.7 million in fiscal year 2020.Net Income: GAAP net income was 64.5 million or 1.15 per share for fiscal year 2020, based on 55.8 million diluted weighted average common shares outstanding. Adjusted EBITDA: Adjusted EBITDA, a non-GAAP measure, was 159.8 million for fiscal year 2020.Balance Sheet and Cash Flow: Cash, cash equivalents and invested corporate cash totaled 288.0 million at the end of the year. 100 million outstanding at the end of the year under our credit facility. Cash flow from operations for fiscal year 2020 was 112.7 million compared to 115.0 million for fiscal year 2019. Free cash flow, a non-GAAP measure, was 70.4 million or 12.5 of revenue for fiscal year 2020.A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release, including the accompanying tables. An explanation of these measures is also included below under the heading Non-GAAP Financial Measures.Business Outlook Based on information available as of August 6, 2020, Paylocity is issuing guidance for the first quarter of fiscal year 2021 as indicated below.First Quarter 2021: Total revenue is expected to be in the range of 131.5 million to 135.5 million, which represents 4 - 7 growth over fiscal 2020 first quarter revenue. Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of 18.5 million to 21.5 million.We are unable to reconcile forward-looking non-GAAP Adjusted EBITDA to its directly comparable GAAP financial measure because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort.Conference Call DetailsPaylocity will host a conference call to discuss its fourth quarter and fiscal year 2020 results at 4:30 p.m. Central Time today 5:30 Eastern Time. A live audio webcast of the conference call, together with detailed financial information, can be accessed through the companys Investor Relations Web site at Participants who choose to call in to the conference call can do so by dialing 855 226-3021 or 315 625-6892, passcode 3247749. A replay of the call will be available and archived via webcast at PaylocityPaylocity is a leading provider of cloud-based HR and payroll software solutions headquartered in Schaumburg, IL. Founded in 1997 and publicly traded since 2014, Paylocity offers an intuitive, easy-to-use product suite that helps businesses tackle todays challenges while moving them toward the promise of tomorrow. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help people achieve their best through automation, data-driven insights, and engagement. For more information, visit Financial Measures The company uses certain non-GAAP financial measures in this release, including Adjusted EBITDA, adjusted gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP net income per share, non-GAAP sales and marketing, non-GAAP total research and development and non-GAAP general and administrative and free cash flow. Generally, a non-GAAP financial measure is a numerical measure of a companys performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We define Adjusted EBITDA as net income loss before interest expense, income tax expense benefit, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described later in this release. Adjusted gross profit is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and amortization of capitalized internal-use software costs. Non-GAAP operating income is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described later in this release. Non-GAAP sales and marketing expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises. Non-GAAP general and administrative expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described later in this release. Non-GAAP net income and non-GAAP net income per share are adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described later in this release, including the income tax effect on these items, the valuation allowance release, excess tax benefit related to employee stock-based compensation payments and the impact of tax reform. Non-GAAP total research and development is adjusted for capitalized internal-use software costs and to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and acquisition-related costs. Free cash flow is defined as net cash provided by operating activities less capitalized internal-use software costs, purchase of property and equipment and lease allowances used for tenant improvements. Please note that other companies may define their non-GAAP financial measures differently than we do. Management presents certain non-GAAP financial measures in this release because it considers them to be important supplemental measures of performance. Management uses these non-GAAP financial measures for planning purposes, including analysis of the companys performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the companys financial and operational performance. Management also intends to provide these non-GAAP financial measures as part of the companys future earnings discussions and, therefore, the inclusion of the non-GAAP financial measures should provide consistency in the companys financial reporting. Non-GAAP financial measures have limitations as an analytical tool. 