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Image source: Paylocity.

What happened

Shares of Paylocity Holding Corporation (NASDAQ:PCTY) have dropped today, down by 9% as of 12:40 p.m. EDT, after the company reported fiscal first-quarter earnings.

So what

Revenue in the first quarter jumped 44% to $65 million, of which $62.6 million was recurring revenue. Non-GAAP net income was $4 million, or $0.07 per share. Both top- and bottom-line figures bested analyst expectations, which were perched at $63.5 million in sales and an adjusted profit of $0.02 per share. CEO Steve Beauchamp said the company had record attendance of its eighth annual Client Conference, and also noted that the company was ranked within the Top 100 Digital Companies in Chicago.

Now what

Operating cash flow fell to $1.9 million during the quarter, and the company now has $78 million in cash on the balance sheet. Second-quarter guidance calls for revenue in the range of $66 million to $67 million, with non-GAAP earnings per share of $0.01 to $0.03. Full-year fiscal 2017 revenue is expected to be $296 million to $298 million, with non-GAAP earnings per share of $0.36 to $0.40.

Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.