Here are 1-2 brief analogies for Paylocity (PCTY):

• A modern, cloud-based ADP or Paychex for mid-sized businesses.
• Workday, but for the mid-market.

• Payroll Processing: Manages the calculation, payment, and tax filing for employee wages and salaries.
• HR Administration: Provides tools for employee record management, onboarding, compliance, and core human resources functions.
• Benefits Management: Facilitates the enrollment, administration, and compliance of various employee benefits programs.
• Talent Management: Offers solutions for recruiting, performance management, learning and development, and compensation planning.
• Workforce Management: Covers time and attendance tracking, employee scheduling, and labor cost optimization.

Paylocity (symbol: PCTY) sells primarily to other companies (B2B) rather than individuals.

As a cloud-based human capital management (HCM) software provider, Paylocity's customer base consists of a broad and diverse range of small to medium-sized businesses (SMBs) and mid-market companies across numerous industries.

Due to the nature of their Software-as-a-Service (SaaS) business model, which relies on recurring subscriptions from thousands of clients, Paylocity does not publicly disclose a list of specific "major customer companies" with their names or symbols. Their revenue is derived from a highly diversified customer portfolio, meaning no single customer or small group of customers accounts for a significant portion of their revenue.

Paylocity primarily targets companies that generally have 10 to 1,000 employees, though they do serve clients both below and above this range. Their platform is designed to cater to the payroll, HR, talent, and workforce management needs of these organizations, regardless of their specific industry.

Therefore, while Paylocity serves thousands of companies, there are no identifiable individual "major customer companies" that can be listed. Their major customers are best described by the segment they serve: a vast number of mid-market businesses.

• Microsoft (MSFT)

Toby Williams, President and Chief Executive Officer

Toby Williams serves as the President and Chief Executive Officer of Paylocity. He joined Paylocity in 2011, initially serving as Chief Financial Officer before becoming Co-CEO in March 2022 and then sole CEO. His professional background includes significant roles in corporate development and cloud strategy at companies such as Paychex, Ellucian, and Citi. He is recognized for his expertise in corporate development, financial management, and product strategy.

Ryan Glenn, Chief Financial Officer

Ryan Glenn is the Chief Financial Officer at Paylocity, where he leads the finance, accounting, legal, and procurement teams and manages investor relations. He joined Paylocity in 2013 and played a key role in the company's initial public offering in 2014. Prior to his tenure at Paylocity, Mr. Glenn spent six years at PricewaterhouseCoopers, most recently as a Manager in the Capital Markets & Accounting Advisory practice.

Steve Beauchamp, Executive Chairman of the Board

Steve Beauchamp is the Executive Chairman of the Board at Paylocity, focusing on product and corporate strategy. He served as Paylocity's CEO from 2007, leading the company through significant growth and its IPO in 2014, and later as Co-CEO alongside Toby Williams until transitioning to Executive Chairman in August 2024. Before joining Paylocity, he held the position of Vice President of Product Management and Corporate Officer at Paychex, where he was responsible for product strategy, development, and corporate acquisitions. He also served as Vice President of Payroll Operations for Advantage Payroll and was President of Payroll Central, Inc. Payroll Central, Inc. was acquired by Advantage Payroll Services, Inc.

Holly Fulp, Chief Strategy Officer

Holly Fulp holds the position of Chief Strategy Officer, Senior Vice President, and Head of Corporate Development at Paylocity, a role she has held since 2021. Her prior experience includes serving as a Director in the Technology Group at William Blair, a Vice President in the Global Services Group at Credit Suisse Securities LLC, and a strategy Executive Director at Kaplan.

Jill Morrison, Chief Human Resources Officer

Jill Morrison serves as the Chief Human Resources Officer for Paylocity.

1. Intense Market Competition and Rapid Technological Advancements: Paylocity operates in a highly competitive Human Capital Management (HCM) software market, facing numerous established players such as ADP, Paychex, Paycom, Workday, UKG Pro, and Oracle Fusion, as well as emerging innovators. The company must continually invest in product innovation, particularly in areas like AI, to maintain its competitive advantage, differentiate its offerings, and ensure continued growth. Failure to keep pace with rapid technological advancements and market demands could lead to a loss of market share and slowed growth.
2. Economic Sensitivity of its Small and Medium-Sized Business (SMB) Customer Base: Paylocity primarily serves small and medium-sized businesses (SMBs). This customer segment is often more susceptible to the adverse effects of economic downturns, high interest rates, or periods of slowing economic growth. Such conditions could lead to reduced demand for Paylocity's services, lower client retention, or decreased spending by existing clients, thereby negatively impacting the company's financial performance.
3. Data Security and Privacy Risks: As a provider of cloud-based HCM, payroll, and spend management software, Paylocity handles a substantial volume of sensitive and confidential data related to its clients, their employees, business partners, and its own workforce. The global regulatory landscape concerning data privacy is constantly evolving. Any failure to effectively protect this sensitive information from cyberattacks, data breaches, or to comply with intricate and changing data privacy regulations could result in significant financial penalties, severe reputational damage, and a loss of client trust.

The emergence of "unified employee systems" that consolidate HR, payroll, IT, and often finance management into a single platform poses a clear emerging threat to Paylocity. Companies like Rippling, with their comprehensive approach to managing the entire employee lifecycle from onboarding to offboarding, including device management and software provisioning alongside traditional HR and payroll functions, offer a compelling alternative to traditional HRIS providers. This integrated model streamlines operations, reduces vendor complexity, and provides automation benefits that can be highly attractive to mid-market companies, potentially leading to displacement of standalone HR and payroll solutions.

Paylocity (symbol: PCTY) operates within the addressable markets of Human Capital Management (HCM) software, HR & Payroll software, Workforce Management software, Talent Management software, and Payroll Services. The market sizes for these primary products and services, predominantly within the U.S. or North America, are as follows:

• HR & Payroll Software: The U.S. market size for HR & Payroll Software was valued between $16.0 billion and $20.6 billion in 2024. This market is projected to grow to between $8.1 billion and $33 billion in 2024, and could reach between $19 billion and $60 billion by 2030.
• Human Capital Management (HCM) Software: The U.S. Human Resources (HR) technology market was valued at $11.00 billion in 2024 and is expected to reach $29.4 billion by 2033. North America held over a 39% share of the global HCM market, which was valued at $29 billion in 2023. U.S. companies spend approximately $13.3 billion on HCM software. Globally, the HCM market was estimated at $31.34 billion in 2024, projected to reach $34.12 billion in 2025, and is anticipated to touch $64.97 billion by 2032.
• Workforce Management Software: The U.S. Workforce Management Market is expected to reach $3.8 billion by 2030.
• Talent Management Software: The U.S. talent management software market size is estimated at $2.76 billion in 2024 and is projected to be worth around $9.32 billion by 2034. In 2023, the North America talent management software market accounted for the largest market revenue share, and the U.S. market specifically dominated the North America market. The U.S. market is projected to grow significantly, reaching an estimated value of $5,180.4 million (approximately $5.18 billion) by 2032.
• Payroll Services: The United States payroll services market size is estimated at $8.44 billion in 2025 and is forecast to expand to $11.06 billion by 2030.

• Expansion into Finance and Spend Management: Paylocity is strategically expanding its unified platform beyond traditional Human Capital Management (HCM) to include finance and spend management solutions. This includes the acquisition of Airbase, a modern finance and spend management software, and the launch of "Paylocity for Finance," which broadens the company's total addressable market and allows clients to manage payroll and non-payroll spend through a single platform.
• AI-Driven Platform Investments and Product Innovation: The company is significantly investing in artificial intelligence (AI) to enhance its platform, offering features like predictive insights, generative AI functionalities, and AI assistants. These investments aim to boost productivity, drive higher product penetration, increase average revenue per client, and improve client retention. Recent innovations also include the upcoming Headcount Planning solution.
• Growth in Client Base within the Mid-Market: Paylocity continues to focus on expanding its client base, particularly within the mid-market segment (businesses with 10 to 5,000 employees). The company's differentiated value proposition of providing modern software continues to resonate in the marketplace, attracting new customers.
• Leveraging Broker Partner Strategy: Paylocity is effectively utilizing its broker channel as a significant source for new business acquisition. This strategy positions the company well to drive new business leverage through broker referrals compared to other HCM vendors.
• Increased Average Revenue Per User (ARPU): The company aims to increase its average revenue per user by driving greater product penetration and cross-selling higher-value finance modules and other integrated solutions. Strategic investments in research and development have historically led to significant increases in realized ARPU.

Share Repurchases

• Paylocity repurchased 800,000 shares of common stock for $150 million during fiscal year 2025.
• In fiscal year 2024, annual share buybacks totaled $150 million.
• As of August 5, 2025, the company's share repurchase authorization was increased by $500 million, bringing the total authorized amount to $700 million.

Share Issuance

• The number of shares outstanding decreased slightly from 56.24 million at the end of 2023 to 55.82 million at the end of 2024, and further to 55.81 million by November 2025, indicating that repurchases generally outpaced new issuances.

Outbound Investments

• In September 2024 (deal date October 1, 2024), Paylocity acquired Airbase Inc., a spending management software company, to enhance cross-functional human capital management (HCM) and finance integration.
• Paylocity acquired Trace on December 1, 2023.
• On January 19, 2022, Paylocity announced the acquisition of Cloudsnap Inc., a low-code solution for integrating disparate business applications, to improve data exchange and automate processes.

Capital Expenditures

• Capital expenditures for the 12 months ending November 4, 2025, were reported at -$14.54 million.
• The primary focus of capital expenditures includes ongoing investments in research and development to enhance product offerings and client services.
• Significant investments have been directed towards AI-driven platform features and expanding the platform into the Office of the CFO with "Paylocity for Finance".