Paylocity Holding Corporation (NASDAQ:PCTY) Q1 2019 Earnings Conference Call Transcript

Nov 01, 2018 • 05:00 pm ET

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Paylocity Holding Corporation (NASDAQ:PCTY) Q1 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Paylocity Holding Corporation's First Quarter 2019 Fiscal Year Results Conference Call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will be given at that time. (Operator Instructions) As a reminder, today's conference is being recorded.

I would now like to turn the call over to Mr. Ryan Glenn, VP of FP&A and IR. Sir, you may begin.

Executive
Ryan Glenn

Good afternoon, and welcome to Paylocity's earnings results call for the first quarter of fiscal year 2019, which ended on September 30th, 2018. I'm Ryan Glenn, VP of FP&A and IR, and joining me on the call today is Steve Beauchamp, CEO of Paylocity; and Toby Williams, CFO of Paylocity. Today, we will be discussing the results announced in our press release issued after the market closed. A webcast replay of this call will be available for the next 45-days on our website under the IR tab.

(Forward-Looking Cautionary Statements)

Also, during the course of today's call, we will refer to certain non-GAAP financial measures. We believe that non-GAAP measures are more representative of how we internally measure the business, and there's a reconciliation schedule detailing these results currently available in our press release, which is located on our website at Paylocity.com under the IR tab and filed with the Securities and Exchange Commission. Please note that we are unable to reconcile any forward-looking non-GAAP financial measure to the directly comparable GAAP financial measure because the information, which is needed to complete a reconciliation, is unavailable at this time, without unreasonable effort.

In regards to our upcoming conference schedule, Toby and I will be attending the Stifel 2018 Midwest One-on-One Growth Conference in Chicago on November 8 and the Global Mizuho Investor Conference in New York on December 3. Please let me know if you would like to schedule time with us at either of these events.

With that, let me turn the call over to Steve.

Executive
Steve Beauchamp

Thank you, Ryan, and thanks to all of you for joining us on our first quarter fiscal 2019 earnings call. We're off to a good start in fiscal 2019 with first quarter total revenue of $100.5 million, an increase of 26.1% versus non-GAAP pro forma results for the same period last year. Recurring revenue grew by 25.8%, driven by new client additions and an increase in average revenue per client as we continue to see positive momentum with our newest product offerings.

Broker referrals once again represented more than 25% of new business for the first quarter as we continue to invest in the channel, growing the number of brokers while also creating stronger relationships with current partners. We also continue to be pleased with the consistency of our business, with the first quarter of fiscal 2019 marking our seventh straight quarter with total revenue growth in the mid-20s.

Adjusted EBITDA for the first quarter was $23.3 million, which exceeded the midpoint of our guidance by $2.8