Paylocity Earns Top Marks in Q1 HR Software Earnings

EarningsM&A · Partnership
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Summary · why it matters

Paylocity reported the strongest results among HR software peers in the first quarter, with revenues of $502.3 million beating analyst estimates by 2.6% and full-year EBITDA guidance raised above expectations. The company's recurring revenue grew 11.6% year on year, and it announced the acquisition of AI-powered recruiting automation firm Grayscale. Paychex posted revenues of $1.81 billion, up 19.9% and exceeding estimates by 1.5%, while Asure Software's $42.76 million in revenue, a 22.7% increase, was overshadowed by next-quarter EBITDA guidance that significantly missed expectations. Paycom's revenues rose 7.8% to $571.8 million, meeting full-year guidance but delivering the slowest growth and weakest performance against estimates among the group. Despite the mixed results, the four HR software stocks collectively saw average share prices decline 2.4% since reporting.

Impact on stocks 4

Cloud & Digital Infrastructure± Mixed · 3 stocks
Asure Software Inc
ASUR
▼ NegativeCapitalrelevance

Next-quarter EBITDA guidance significantly missed expectations, overshadowing revenue beat.

Paycom Software, Inc.
PAYC
▼ NegativeDemandrelevance

Slowest revenue growth (7.8%) and weakest performance against estimates among peers.

Paychex Inc
PAYX
▲ PositiveCapitalDemandrelevance

Revenue beat estimates by 1.5% with 19.9% growth, though not the strongest.

Information Technology▲ · 1 stocks
Paylocity Holding Corporation
PCTY
▲ PositiveCapitalTechnologyrelevance

Strongest results: revenue beat by 2.6%, raised full-year EBITDA guidance, and acquired AI recruiting firm.

Theme Impact 1

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