According to an Adroit Market Research, the global Human Capital Management market is estimated to grow to $18 billion by the year 2025. Paylocity (Nasdaq: PCTY) recently announced its quarterly results that continued to surpass market expectations.
For the fourth quarter, Paylocity’s revenues grew 8% to $130.6 million, ahead of the Street’s forecast of $126.72 million. Recurring revenues grew 13% to $129.3 million. Adjusted EPS of $0.32 dropped from $0.34 last year and was also ahead of the market’s forecast of $0.13.
Paylocity ended the year with revenues growing 20% to $561.3 million. EPS of $1.23 has also grown significantly over $0.43 recorded last year. Recurring revenues grew 22% to $561.3 million.
For the first quarter, Paylocity expects revenues of $131.5-$135.5 million, in line with the Street’s forecast of $134.47 million.
Paylocity’s Product Upgrades
Last quarter, to help companies cope with the ongoing pandemic, Paylocity released several services. It released a mobile attestation service that allows employers to gather data of COVID symptoms in their employees. Additionally, to help administrators manage shift capacity while abiding CDC social distancing guidelines, it released a time and labor scheduling solution. It also launched courses to support remote engagement for managers. To help employers expedite rehires, Paylocity added geolocation features that help immediately validate state and local taxes based on the employee’s home and work address.
Paylocity is focusing on its video offering as it believes that it plays a critical role in transforming workplace communication. It is working on leveraging the video capabilities of VidGrid throughout its HCM product suite. As part of this effort, it announced Premium Video capabilities within its platform that provides asynchronous communication to allow employees to view video content when needed. Paylocity Video service allows clients to record, upload, and play videos within the platform.
For instance, within its social collaboration platform, users can now upload or record company-wide video announcements. Paylocity’s Performance Management tools like Journals have now been integrated with Video to allow employees to record and share highlights with their managers via video on their own time outside of their routine check-ins. To solicit better and more specific feedback from employees, Premium Video is helping organizations improve Paylocity Surveys. Now, recruiters can also use videos on their careers pages and job postings to make the hiring process more personal for candidates.
Since launching Premium Video a month ago, over 2,000 videos have been created with over 30,000 minutes of video and has registered over 18,000 views.
Its stock is currently trading at $145.16 with a market capitalization of $8.2 billion. It touched a 52-week high of $156.00 in June this year. The stock had fallen to a 52-week low of $66.98 in March this year.
This segment is a part in the series : Cloud Stocks