Q3 Fiscal 2024
Investor Presentation
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This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data.
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Core Addressable Market (TAM)
We remain squarely focused on increasing our limited penetration of a large, and growing, total addressable market
ed | TAM of | $ | 1 | 8 | 6 b | |||||||||
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Current average | Over |
client size of | 1.3 million |
140+ | businesses |
employees | |
36,200 clients | in the 10-5,000 segment of the market |
as of June 30, 2023 | ~50%+ Realized PEPY |
Less than 3% penetrated into addressable market
73 million employees
in the 10-5,000
segment of the market
Source: U.S. Census Bureau | 4 |
Client Size
Competitive Landscape
Enterprise Market (10,000+ Employees)
5,000 Employees
Workday
Limited overlap in target market. Enterprise solutions focused on companies with several thousand employees and up - do not see them often competitively
Ultimate Kronos Group / Dayforce
Enterprise solution focusing primarily on >1,000 employee companies - seen in deals at the higher-end of our target market
Paycom
Average client size is larger than ours, generally seen at the middle/higher-end of our target market
Paylocity differentiates with a payroll and HCM platform built for the modern workforce + best- in-class client support
Average
Mid-Market
(51-1,000 Employees)
SMB Market
(1-50
Employees)
in-house | ~3,000 regional |
providers | |
solutions | |
Paycor | |
Average client size is smaller than | |
ours, generally seen at the | |
Core Market | middle/lower-end of our target |
market | |
ADP / PAYX | |
Biggest competitors - compete | |
throughout our target market | |
Regionals | |
Smaller to mid-part of our market | |
In-House | |
Primarily lower end of the market |
Focused on taking share in our target market of more than 1.3 million businesses
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The Most Modern HCM Platform
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Providing HR the tools for the modern workforce
Surveys
On Demand Pay
Learning | Community & Video |
Employee Home
Feeling heard & valued
Create engagement with opportunities for feedback & recognition
Flexibility & wellbeing
Empower employees to manage their shifts & pay schedule without HR overhead
Connection across the org
Foster transparency and a sense of belonging with open communication
Mobile & on-demand
Everything employees need at their fingertips on any device
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Competitive Landscape
Where Our Clients Come From
Combination of ADP/Paychex represents our largest source of new clients
Why we win
Industry-leading product suite combined with strong focus on client service resulting in 92%+ revenue retention
In-house solutions
(did not use a traditional 3rd party provider)
Local / regional payroll providers
All other competitors and new business formation
8
Go-To-Market Strategy
We hire experienced sales professionals
- Most have prior HCM platform, HR technology or B2B sales experience
- All sales are direct through our salesforce; no resellers / indirect selling
- Our reps are focused on deals with 10-5,000 employees with our largest opportunities supported by our most experienced teams
820 | 18% |
reps in fiscal 2024 | From 694 reps in |
fiscal 2023 |
All major U.S. geographies covered, but
room to add reps in every state
Our client base is well diversified across all industry verticals and geographies
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Strong Referral Channel
Channel Value Proposition
Paylocity is the most complete platform for the modern workforce which helps our channel partners reach employees in new ways
We do not compete with our channel partners - We do not sell insurance or benefits; other major payroll / HCM competitors compete with brokers and financial advisors for insurance business and assets
Flexible platform with hundreds of available Integrations and open APIs for insurance, 401k and other providers. We continue to invest in integrations to add value for the broker community
Partner Portal allows our partners to differentiate Their services and help drive change at their clients by providing unique data insights
of our new client revenue comes
25%+ from referrals from channels
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Disclaimer
Paylocity Holding Corp. published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 20:59:12 UTC.