Paylocity Holding Corporation (NASDAQ:PCTY) Q3 2018 Earnings Conference Call - Preliminary Transcript
May 03, 2019 • 05:00 pm ET
federal income tax in the future periods. On a percentage basis for P&L modelling purposes, we currently estimate our effective tax rate to be in the mid 20s for the fourth quarter of fiscal 18 and for fiscal 19. Please note that as we have released substantially all of the valuation allowance, we will no longer provide guidance on non-GAAP net income, given its potential variability quarter to quarter from one time tax items and because it does not represent a key financial or business performance metric used to manage the business. We will continue to apply guidance on revenue and adjusted EBITDA as these represent both the key financial metrics we use when assessing financial performance of the company. And we believe these are the most meaningful measures of our financial performance.
With respect to the balance sheet, we ended the quarter with cash and cash equivalent of 129.5 million as compared to 101.5 million as of the end of the third quarter fiscal 17, which is an increase of 28 million or 27.6%. From a cash flow perspective, we generated 35.2 million in cash from operating activities in third quarter fiscal 18 as compared to 27.9 million for the prior year third quarter, which is an increase of 7.3 million or 26.2%. Finally, I'd like to provide our financial guidance for the fourth quarter and updated guidance for fiscal 18. Please note that ASC 606 will be affected for paylocity in fiscal 19, which begins on July 1 2018. As such, the following guidance does not reflect the impact of ASC 606. So that said, for the fourth quarter of fiscal 18, total revenue is expected to be in the range of 92.6 million to 93.6 million or approximately 22% to 23% greater than the prior year and adjust EBITDA is expected to be in the range of 14 million to 15 million. For full fiscal year 2018 total Revenue is expected to be in the range of 373.5 million to 374.5 billion, or approximately 25% greater than the prior year that the midpoint and increase of $4 million from our prior guidance. Adjusted EBITDA is expected to be in the range of 79.6 million to 80.6 million, or approximately 21.4% of revenue at the midpoint, which is an increase of 270 basis points from fiscal '17 and an increase of 3.6 million from our prior guidance. Overall, we're very pleased with our financial results through the first nine months of fiscal 18, including our ability to provide guidance of 25% revenue growth and 270 basis points of adjusted EBITDA expansion this fiscal year. Operator, we're now ready to begin the Q&A session. Thank you.