Paylocity Holding Corp

PCTY: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$284.00	Jfxjbm	Khbmwwkm

Paylocity Enjoys Strong Momentum and Reinvests for Growth in Fiscal Q1 2023; Maintaining $200 FVE

Emma Williams , Ava Gams

Nov 4, 2022

Narrow-moat Paylocity delivered a solid result to start fiscal 2023 despite continuing macroeconomic headwinds. The first quarter featured robust revenue growth of 39% year on year, driven by a combination of strong sales and a further skew upmarket. However, operating margin declined roughly 330 basis points year on year to about 3% because of higher investment in sales, marketing, and product innovation to support growth, partly offset by greater contribution from ultra-high margin interest income revenue.

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