SCHAUMBURG, IL – Paylocity (NASDAQ:PCTY) Holding Corp (NASDAQ:PCTY), a prominent provider of cloud-based payroll and human capital management software solutions, announced that board member Jeffrey T. Diehl will not seek re-election at the upcoming annual meeting of stockholders. Diehl, who has been a board member since 2008, will continue his duties until the end of his term.
Diehl's decision, announced on Monday, comes without any disputes or disagreements with the company's operations, policies, or practices. His departure was confirmed through a filing with the Securities and Exchange Commission on Tuesday. Diehl, who is the Managing Partner & Head of Investments at Adams Street Partners, LLC, originally joined the board following Adams Street's investment in Paylocity.
The company expressed gratitude for Diehl's 16 years of service on the board. The annual meeting where his successor will be elected is scheduled for December 5, 2024.
Paylocity, headquartered in Schaumburg, Illinois, is recognized within the industry for its suite of payroll and human capital management solutions. The company's offerings are designed to streamline various workplace processes including payroll, benefits administration, and talent management.
In other recent news, Paylocity has seen significant developments. The company has completed the acquisition of Airbase Inc., a firm specializing in finance and spend management software. This move is expected to expand Paylocity's market to include bill pay automation, expense management, and procurement capabilities, offering clients a unified system for managing both payroll and non-payroll expenses.
TD Cowen, BMO Capital Markets, Needham, and Piper Sandler have all maintained their respective ratings for Paylocity, indicating a positive outlook despite the anticipated adjustments to financial metrics due to the acquisition.
In addition, Paylocity announced the departure of its Senior Vice President and Chief Technology Officer, Rachit Lohani, and has initiated the search for a new CTO. This change in leadership is a significant development for the company.
Finally, Paylocity's financial performance has shown impressive growth, with a 15% increase in recurring revenue in the fourth quarter and a 17% rise for the fiscal year. The company's total revenue also climbed, reaching $1.4 billion. These are all recent developments in the company's journey.
InvestingPro Insights
As Paylocity Holding Corp (NASDAQ:PCTY) prepares for a board transition, recent financial data from InvestingPro sheds light on the company's current position. Paylocity boasts impressive gross profit margins, with a gross profit of $962.68 million and a margin of 68.64% for the last twelve months as of Q4 2024. This strong profitability aligns with the company's reputation as a leading provider of cloud-based payroll and human capital management solutions.
InvestingPro Tips highlight that Paylocity holds more cash than debt on its balance sheet, suggesting a solid financial foundation as the company navigates this leadership change. Additionally, the company has shown a strong return over the last three months, with a price total return of 24.52% during this period.
For investors considering Paylocity's future prospects, it's worth noting that analysts predict the company will remain profitable this year. This outlook, combined with Paylocity's robust financial health, may provide reassurance to stakeholders as they anticipate the nomination of a new board member to succeed Jeffrey T. Diehl.
InvestingPro offers 13 additional tips for Paylocity, providing a comprehensive analysis for those seeking deeper insights into the company's financial position and market performance.
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