Paylocity Holding Corp

PCTY: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$922.00	Sfjqkd	Fldqpnfp

Paylocity Earnings: Interest Income Upside Is the Cherry on Top of an Impressive Growth Trajectory

Emma Williams

May 5, 2023

Narrow-moat Paylocity remains on track to report impressive growth in fiscal 2023 following its solid third-quarter result. Top-line growth and profitability came in marginally ahead of our forecasts due to a sharper-than-expected increase in ultra-high margin interest income. While we have revised our near-term assumptions upwards, our longer-term forecasts and valuation remain intact. At current prices, Paylocity shares are trading at an attractive 12% discount to our unchanged $210 fair value estimate.

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