• Q1 2015 Total Revenue of $31.1 million, up 39% year-over-year
• Recurring Revenue of $29.5 million, up 40% year-over-year

ARLINGTON HEIGHTS, Ill., Nov. 6, 2014 (GLOBE NEWSWIRE) -- Paylocity Holding Corporation (Nasdaq:PCTY), a cloud-based provider of payroll and human capital management software solutions, today announced financial results for the first quarter of fiscal year 2015, which ended September 30, 2014.

"We are off to a very good start in the first quarter with recurring revenue growth of 40%. We continue to see strong demand for our unified payroll and HCM platform as evidenced by the strong performance of our sales organization in the quarter," said Steve Beauchamp, President and Chief Executive Officer of Paylocity. "In October, we had the opportunity to share our product roadmap with nearly 600 users at our annual client conference. We are pleased to report that our increased investments in R&D are already yielding positive results. Our preview of the mobile and analytics initiatives in our upcoming November release generated significant excitement from the conference attendees."

First Quarter 2015 Financial Highlights

Revenue:

• Total revenue was $31.1 million, an increase of 39% from the first quarter of fiscal year 2014.
   
• Total recurring revenue was $29.5 million, representing 95% of total revenue and an increase of 40% from the first quarter of fiscal year 2014. 

Adjusted EBITDA:

• Adjusted EBITDA, a non-GAAP measure, was $0.4 million compared to Adjusted EBITDA of $1.2 million in the first quarter of fiscal year 2014.

Operating Loss:

• Non-GAAP operating loss was ($1.6) million, compared to non-GAAP operating loss of ($0.3) million in the first quarter of fiscal year 2014.
   
• GAAP operating loss was ($4.9) million, compared to an operating loss of ($0.4) million in the first quarter of fiscal year 2014.

Net Income (Loss):

• Non-GAAP net loss was ($1.4) million, compared to non-GAAP net income of $0.1 million for the first quarter of fiscal year 2014. Non-GAAP net loss per share was ($0.03) for the three months ended September 30, 2014, based on 49.6 million diluted weighted average common shares outstanding. On a pro forma basis, assuming conversion of all outstanding preferred shares as of July 1, 2013, non-GAAP net loss per share was $0.00 for the first quarter of fiscal year 2014, based on 43.9 million diluted weighted average common shares outstanding. 
   
• GAAP net loss was ($4.9) million, compared to a net loss of nil for the first quarter of fiscal year 2014. Net loss per share was ($0.10) for the three months ended September 30, 2014 based on 49.6 million diluted weighted average common shares outstanding. On a pro forma basis assuming conversion of all outstanding preferred shares as of July 1, 2013, net loss per share was nil for the first quarter of fiscal year 2014, based on 43.9 million diluted weighted average common shares outstanding.

Balance Sheet and Cash Flow:

• Cash and cash equivalents totaled $72.8 million at the end of the quarter. 
   
• Cash flow from operations for the first quarter of fiscal year 2015 was ($0.2) million compared to $0.3 million for the first quarter of fiscal year 2014.

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 November 6, 2014, Paylocity is issuing guidance for the second quarter and full fiscal year 2015 as indicated below.

Second Quarter 2015:

• Total revenue is expected to be in the range of $31.3 million to $32.3 million.
• Adjusted EBITDA is expected to be a loss in the range of ($2.25) million to ($1.25) million.
• Non-GAAP net loss is expected to be in the range of ($4.5) million to ($3.5) million, or ($0.09) to ($0.07) per share, based on 49.6 million basic weighted average common shares outstanding.

Fiscal Year 2015:

• Total revenue is expected to be in the range of $141.0 million to $145.0 million.
• Adjusted EBITDA is expected to be in the range of $2.0 million to $4.0 million.
• Non-GAAP net loss is expected to be in the range of ($6.5) million to ($4.5) million, or ($0.13) to ($0.09) per share, based on 49.6 million basic weighted average common shares outstanding.

Conference Call Details

Paylocity will host a conference call to discuss its first quarter results at 4:00 p.m. Central Time today (5:00 Eastern Time). A live audio webcast of the conference call, together with detailed financial information, can be accessed through the company's Investor Relations Web site at http://www.paylocity.com. Participants who choose to call in to the conference call can do so by dialing (855) 226-3021 or (315) 625-6892, passcode 21430483. A replay of the call will be available and archived via webcast at www.paylocity.com.

About Paylocity

Paylocity is a provider of cloud-based payroll and human capital management, or HCM, software solutions for medium-sized organizations. Paylocity's comprehensive and easy-to-use solutions enable its clients to manage their workforces more effectively. Paylocity's solutions help drive strategic human capital decision-making and improve employee engagement by enhancing the human resource, payroll and finance capabilities of its clients. For more information, visit www.paylocity.com.

Non-GAAP Financial Measures

The company uses certain non-GAAP financial measures in this release, including Adjusted EBITDA, adjusted gross profit, adjusted recurring gross profit, non-GAAP operating income (loss), non-GAAP net income (loss) and non-GAAP net income (loss) per share. Generally, a non-GAAP financial measure is a numerical measure of a company's 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, taxes, and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense. Adjusted gross profit and adjusted recurring gross profit are adjusted for stock-based compensation expense and amortization of capitalized research and development costs. Non-GAAP operating income (loss) is adjusted for stock-based compensation expense, non-GAAP net income (loss) and non-GAAP net income (loss) per share are adjusted for stock-based compensation expense and amortization of acquired intangibles. 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 company's 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 company's financial and operational performance. Management also intends to provide these non-GAAP financial measures as part of the company's future earnings discussions and, therefore, the inclusion of the non-GAAP financial measures should provide consistency in the company's financial reporting. Non-GAAP financial measures have limitations as an analytical tool. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures provided in this release.

Safe Harbor/forward looking statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding Paylocity's future operations, future financial position and performance, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "will," "would," "seek" and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about management's estimates regarding future revenues and financial performance and other statements about management's beliefs, intentions or goals. Paylocity may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on Paylocity's forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to, risks related to Paylocity's ability to attract new clients to enter into subscriptions for its services; Paylocity's ability to service clients effectively; Paylocity's ability to expand its sales organization to effectively address new geographies; Paylocity's ability to continue to expand its referral network of third parties; Paylocity's ability to accurately forecast revenue and appropriately plan its expenses; Paylocity's ability to forecast its tax position, including but not limited to the assessment of the need for a valuation allowance against its deferred tax position; continued acceptance of SaaS as an effective method for delivery of payroll and HCM solutions; Paylocity's ability to protect and defend its intellectual property; unexpected events in the market for Paylocity's solutions; future regulatory, judicial and legislative changes in its industry; changes in the competitive environment in Paylocity's industry and the market in which it operates; and other risks and potential factors that could affect Paylocity's business and financial results identified in Paylocity's filings with the Securities and Exchange Commission (the "SEC"), including its 10-K filed with the SEC on August 22, 2014. Additional information will also be set forth in Paylocity's future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that Paylocity makes with the SEC. These forward-looking statements represent Paylocity's expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Paylocity disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

Stock-based compensation expense for each of the three months ended September 30 are included in the above line items:

CONTACT: Investor Contact:

         Sheila Ennis

         ICR

         investors@paylocity.com

         415-430-2073