- Cloud company Paylocity offers payroll and human resources software solutions for medium-sized organizations.
- Paylocity Holding appears to be offering something nobody out there gives. From June 2018 to June 2020, the number of clients increased from 16,700 to 24,450.
- In H2 2020, recurring revenue represented more than 98% of the total sales figure. Financial analysts appreciate recurring revenue, because it makes forecasting future revenue quite easy.
- PAYX and PAYC trade at 8x-28x sales. Paylocity’s 2020 sales were $561 million. If we use an enterprise value of $9-$10 billion, the company trades at 16x-17x sales.
- According to the last annual report, no client was responsible for more than 1% of the company’s sales. This is great because if you lose one client, you will have many others.
For further details see:
Paylocity: Brilliant Business Model, But Not Cheap