Paylocity Holding Corp
PCTY: XNAS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$322.00 | Nbfkyjr | Bfhmmdzrjr |
Paylocity Enjoys Strong Momentum and Reinvests for Growth in Fiscal Q1 2023; Maintaining $200 FVE
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.