Shares of Paylocity (NASDAQ:PCTY) popped today, closing out the day with 9% gains, after the company reported fiscal third-quarter earnings that beat analyst expectations.
Revenue in the quarter jumped 28% to $90.3 million, of which 96% came from recurring revenue sources. Operating income was $21.7 million on a non-GAAP basis, and non-GAAP net income was $21.6 million, or $0.40 per share.
Both top- and bottom-line results handily topped consensus estimates of $88.1 million in sales and an adjusted profit of $0.23 per share. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $26.8 million, and the company closed out the quarter with $101.5 million in cash and equivalents.
In a statement, CEO Steve Beauchamp said the company was enjoying "improved leverage across all of our key financial metrics," as it continues to scale the business. The cloud-based provider of payroll and human capital management software solutions expects revenue in the fiscal fourth quarter to be in the range of $73.1 million to $74.1 million, with adjusted EBITDA of $5.3 million to $6.3 million. Non-GAAP earnings per share should be $0.00 to $0.02.