Latest news with #Paylocity
Yahoo
a day ago
- Business
- Yahoo
Should You Buy Paylocity Stock Despite its 7% Dip in 3 Months?
Paylocity Holding PCTY shares have lost 6.8% in the trailing three months, underperforming the Zacks Computer and Technology sector, the S&P 500 index and the Zacks Internet - Software industry's growth of 4.5%, 0.9% and 2.3%, has also underperformed its industry peers, Automatic Data Processing ADP, Workday WDAY and Paycom Software PAYC, in the same time frame. Shares of Automatic Data Processing and Paycom Software have gained 2.2% and 17.7%, respectively, while Workday has lost 2.7%.Sluggish macroeconomic conditions and high interest rates have impacted Paylocity's core customers, which are small and mid-sized businesses. This could affect the company's top-line growth in the near term. The macro pressure may have weighed on investor sentiment, leading to the recent underperformance. However, Paylocity's strong execution and expanding product offerings continue to support its momentum. Let's look at why it remains a solid investment despite these challenges. Despite macroeconomic pressures and high interest rates affecting some businesses, Paylocity maintained stability in its client base during the third quarter of fiscal 2025. Workforce levels among clients were slightly up year over year, with expected seasonal hiring trends in April through June. Additionally, more than 25% of new business came through channel referrals, primarily from benefit brokers and financial advisers. This performance was supported by Paylocity's continued investment in its broker partnerships and third-party integration capabilities. Paylocity Holding Corporation price-consensus-chart | Paylocity Holding Corporation Quote Paylocity's ongoing product expansion, including AI-powered tools and third-party integrations, has contributed to growing average revenue per client. Recent launches include embedded background checks and skill assessments, and an AI assistant capable of answering policy and compliance questions using employee handbooks and public data. These features aim to improve user experience and efficiency. Additionally, the acquisition of Airbase, a spend management platform, which is now fully integrated, is expected to open up cross-selling opportunities and contribute to revenue growth. In the third quarter of fiscal 2025, Paylocity reported recurring and other revenues of $421.1 million, up 15% year over year. It exceeded the high end of the company's guidance by $6.1 million. Total revenues reached $454.6 million, up 13.27% year over year. This strong performance was driven by effective sales execution during Paylocity's peak season, which includes year-end processing and annual tax form filings in December and January. The company successfully onboarded new clients and met high seasonal demand with strong support from its implementation and service teams. As a result, Paylocity exceeded revenue expectations for the third consecutive quarter and raised its full-year guidance. For fiscal 2025, the company expects total revenues to be in the range of $1.58-$1.585 billion, which represents approximately 13% year-over-year growth. The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $1.58 billion, suggesting year-over-year growth of 12.88%, and the consensus mark for earnings is pegged at $7.01 per share, which has been revised upward by 5.41% over the past 30 days, indicating a year-over-year increase of 6.7%.PCTY beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with the average surprise being 15.4%. Despite a cautious market environment, Paylocity has maintained a stable client base while continuing to grow average revenue per client through its expanding product suite. Strong execution across sales and operations has supported this momentum, enabling the company to raise its full-year fiscal 2025 currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report Workday, Inc. (WDAY) : Free Stock Analysis Report Paycom Software, Inc. (PAYC) : Free Stock Analysis Report Paylocity Holding Corporation (PCTY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
4 days ago
- Business
- Miami Herald
Is there a leadership crisis brewing? Why leadership development programs are a must-have in 2025
Is there a leadership crisis brewing? Why leadership development programs are a must-have in 2025 The business world is at a leadership crossroads. Baby Boomers are retiring en masse, and a new generation of employees is upending traditional workplace expectations. What's more, the rapid advancement of artificial intelligence and an increasing focus on employee mental health are disrupting long-held norms in the workplace. It's a recipe for unrest in the hands of unprepared leaders-which is why, according to Gartner, leadership and management development has been a top priority for HR departments in 2025, reports Paylocity, an HR and payroll software company. Why leadership programs are crucial for organizational success Leadership programs aligned with business strategies are the secret to long-term success. It's not just an HR initiative but a strategic business move, as effective leaders should boost productivity, morale, and innovation across the board. This significance is undeniable, yet a Brandon Hall study found that only 13% of organizations believe their leadership development programs are fully aligned with their business strategy. Good leaders are also a hedge against miscommunication, stalled initiatives, and high employee turnover, which eat into an organization's bottom line. How can organizations elevate their leaders to drive business success effectively? The key phases of building a leadership development program A successful leadership development program isn't haphazard. It requires an intentional, structured approach that accounts for the following core phases: 1. Leadership Assessment and Skills Gap Analysis Building the right program starts with understanding your leadership needs. Conducting a leadership skills gap analysis helps evaluate existing capabilities and gaps, ensuring programs are tailored to foster growth. By engaging with executives, frontline managers, and employees, HR teams can identify core competencies that leaders across levels should master. Focus on both universal skills like communication, adaptability, and emotional intelligence, as well as role-specific needs such as technical and industry-specific capabilities. While broader skills are essential to any leadership development program, it's equally important to root the initiative in your company's core values. "Your mission, vision, and values are the foundation," says Dr. Drew Fockler, a professor specializing in HR and Leadership studies at University Canada West. "Leadership programs help integrate these values into daily routines, creating alignment and fostering success at every level." Organizations that tie these needs directly to key business goals, like productivity or innovation, stand to see a measurable return on investment from leadership training. 2. Strategic Alignment and Making the Case Securing executive buy-in is crucial. To align leadership initiatives with broader business objectives, HR leaders must clearly demonstrate the positive cost-to-benefit. How does this program drive innovation? What's the cost of not developing leaders? Framing leadership initiatives as solutions to current or potential business problems can sway decision-makers. For example, a lack of skilled managers could lead to employee turnover. And equipping leaders to manage change or improve communication mitigates such risks. Bethany Romestan-Byrne, director of learning and development at Paylocity, emphasizes the importance of HR leaders customizing their message to suit their audience. "Knowing your audience is so important," she said in a webinar on leadership development programs. "While I may talk to a CFO about revenue pull-through, I might talk to a frontline leader more about efficiency, better partnering, and teaming.," 3. Designing a Framework An effective program builds leaders at every stage-from new managers to senior leaders. Businesses can establish clear goals using assessments from Phase 1. Scenarios such as succession planning, leadership pipelines for high-growth teams, or cross-functional initiatives influence the program's structure. In a leadership development webinar, Angela Ostermann, Paylocity's manager of organizational learning and effectiveness, stresses the need for an engaging curriculum that meets the needs of diverse learners. Role play and simulations play an important role as well, Ostermann notes. "Sometimes role plays can seem or feel awkward," she said. "But the truth is that the brain doesn't know the difference between practice and reality. It processes the same, so it will help you improve." 4. Implementation and Continuous Improvement The final, ongoing phase focuses on rolling out the program and collecting feedback to refine it over time. Metrics like promotion rates, engagement scores, or course completion rates can track progress and demonstrate value. Annual updates based on skills gap analyses ensure programs evolve with the organization's needs. 5. Lead by Example Amid the fast-changing dynamics of today's workplace, prioritizing continuous growth and improvement has become essential. According to Ostermann, this commitment to learning must begin at the top. "Demonstrate a culture of growth and improvement at the organizational level," she said. "When employees see leadership evolving and improving, it sets the tone for everyone to value continuous learning." This story was produced by Paylocity and reviewed and distributed by Stacker. © Stacker Media, LLC.
Yahoo
5 days ago
- Business
- Yahoo
Spotting Winners: Dayforce (NYSE:DAY) And HR Software Stocks In Q1
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let's take a look at how HR software stocks fared in Q1, starting with Dayforce (NYSE:DAY). Modern HR software has two powerful benefits: cost savings and ease of use. For cost savings, businesses large and small much prefer the flexibility of cloud-based, web-browser-delivered software paid for on a subscription basis rather than the hassle and complexity of purchasing and managing on-premise enterprise software. On the usability side, the consumerization of business software creates seamless experiences whereby multiple standalone processes like payroll processing and compliance are aggregated into a single, easy-to-use platform. The 5 HR software stocks we track reported a satisfactory Q1. As a group, revenues beat analysts' consensus estimates by 1.3% while next quarter's revenue guidance was 3.6% below. In light of this news, share prices of the companies have held steady as they are up 4.3% on average since the latest earnings results. Founded in 1992 as Ceridian, an outsourced payroll processor and transformed after the 2012 acquisition of Dayforce, Dayforce (NYSE:DAY) is a provider of cloud based payroll and HR software targeted at mid-sized businesses. Dayforce reported revenues of $481.8 million, up 11.7% year on year. This print exceeded analysts' expectations by 1.1%. Despite the top-line beat, it was still a slower quarter for the company with revenue guidance for next quarter missing analysts' expectations and billings in line with analysts' estimates. "We kicked off the year with strong first quarter results and excellent sales momentum,' said David Ossip, Chair and CEO of Dayforce. Dayforce delivered the weakest full-year guidance update of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $57.70. Read our full report on Dayforce here, it's free. Founded by payroll software veteran Steve Sarowitz in 1997, Paylocity (NASDAQ:PCTY) is a provider of payroll and HR software for small and medium-sized enterprises. Paylocity reported revenues of $454.5 million, up 13.3% year on year, outperforming analysts' expectations by 2.9%. The business had a very strong quarter with an impressive beat of analysts' EBITDA estimates. Paylocity scored the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 2.9% since reporting. It currently trades at $200. Is now the time to buy Paylocity? Access our full analysis of the earnings results here, it's free. One of the oldest service providers in the industry, Paychex (NASDAQ:PAYX) offers its customers payroll and HR software solutions. Paychex reported revenues of $1.51 billion, up 4.8% year on year, in line with analysts' expectations. It was a mixed quarter as it posted EBITDA in line with analysts' estimates. Paychex delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Interestingly, the stock is up 9.1% since the results and currently trades at $157.14. Read our full analysis of Paychex's results here. Founded in 1998 as one of the first online payroll companies, Paycom (NYSE:PAYC) provides software for small and medium-sized businesses (SMBs) to manage their payroll and HR needs in one place. Paycom reported revenues of $530.5 million, up 6.1% year on year. This result topped analysts' expectations by 0.9%. It was a very strong quarter as it also produced a solid beat of analysts' EBITDA estimates. The stock is up 11.9% since reporting and currently trades at $255.68. Read our full, actionable report on Paycom here, it's free. Created from the merger of two small workforce management companies in 2007, Asure (NASDAQ:ASUR) provides cloud based payroll and HR software for small and medium-sized businesses (SMBs). Asure reported revenues of $34.85 million, up 10.1% year on year. This number beat analysts' expectations by 1.7%. More broadly, it was a satisfactory quarter as it also recorded an impressive beat of analysts' EBITDA estimates. The stock is down 1.3% since reporting and currently trades at $9.64. Read our full, actionable report on Asure here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 days ago
- Business
- Yahoo
1 Mid-Cap Stock to Research Further and 2 to Brush Off
Mid-cap stocks have the best odds of scaling into $100 billion corporations thanks to their tested business models and large addressable markets. But the many opportunities in front of them attract significant competition, spanning from industry behemoths with seemingly infinite resources to small, nimble players with chips on their shoulders. These dynamics can rattle even the most seasoned professionals, which is why we started StockStory - to help you separate the good companies from the bad. That said, here is one mid-cap stock with massive growth potential and two best left ignored. Market Cap: $10.7 billion Founded by payroll software veteran Steve Sarowitz in 1997, Paylocity (NASDAQ:PCTY) is a provider of payroll and HR software for small and medium-sized enterprises. Why Do We Think Twice About PCTY? Estimated sales growth of 8.5% for the next 12 months implies demand will slow from its three-year trend Gross margin of 68.8% is below its competitors, leaving less money to invest in areas like marketing and R&D Paylocity's stock price of $192.10 implies a valuation ratio of 6.5x forward price-to-sales. If you're considering PCTY for your portfolio, see our FREE research report to learn more. Market Cap: $17.14 billion Originally founded as a necktie company, Ralph Lauren (NYSE:RL) is an iconic American fashion brand known for its classic and sophisticated style. Why Does RL Fall Short? Lackluster 2.8% annual revenue growth over the last five years indicates the company is losing ground to competitors Constant currency growth was below our standards over the past two years, suggesting it might need to invest in product improvements to get back on track Estimated sales growth of 4.6% for the next 12 months is soft and implies weaker demand Ralph Lauren is trading at $289.11 per share, or 21.1x forward P/E. To fully understand why you should be careful with RL, check out our full research report (it's free). Market Cap: $15.3 billion With a network spanning nine states and serving primarily urban and suburban communities, Tenet Healthcare (NYSE:THC) operates a nationwide network of hospitals, ambulatory surgery centers, and outpatient facilities providing acute care and specialty healthcare services. Why Do We Like THC? Share repurchases have amplified shareholder returns as its annual earnings per share growth of 30.7% exceeded its revenue gains over the last five years ROIC punches in at 21%, illustrating management's expertise in identifying profitable investments, and its returns are growing as it capitalizes on even better market opportunities Improving returns on capital reflect management's ability to monetize investments At $164 per share, Tenet Healthcare trades at 13.4x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
23-05-2025
- Business
- Globe and Mail
SE Jumps 35% in a Month: Should Investors Hold On to the Stock?
Sea Limited 's SE shares have rallied 35.5% over the past month, significantly outperforming the Zacks Computer and Technology sector's return of 15.5% and the 20.5% rise in the Zacks Internet Software industry. SE has outperformed its industry peers, including HubSpot HUBS, Paylocity Holding PCTY and Atlassian TEAM. Over the same time frame, shares of HubSpot, Paylocity Holding and Atlassian have gained 9.8%, 6.7% and 0.4%, respectively. The upward momentum in Sea Limited's share price reflects its outstanding first-quarter 2025 results, with revenues rising 30% year over year to $4.8 billion. Growth and profitability gains were evident across all major segments, including e-commerce (Shopee), digital financial services (Monee) and digital entertainment (Garena). Also, an impressive $410.8-million net income marked a striking comeback from a loss in the corresponding period last year, reflecting its operational strength. Despite a year-over-year upsurge of 309.5% to 86 cents per share, Sea Limited's bottom line missed the Zacks Consensus Estimate by 7.53%. SE Growth Driven by Core Segment Strength Shopee, Sea Limited's e-commerce platform, reported a significant turnaround in profitability in the first quarter of 2025. The segment achieved revenues of $3.5 billion, marking a 28.3% year-over-year increase. This growth was driven by a 20.5% rise in gross orders and a 21.5% increase in Gross Merchandise Value ('GMV'). Adjusted EBITDA reached $264.4 million from a prior loss of 21.7 million, driven by higher take rates, cost optimization and competitive pricing. The platform remains on track to meet its 20% full-year GMV growth target with improving profitability. The company's digital financial services division, rebranded as Monee, demonstrated impressive growth in the first quarter of 2025. The segment reported revenues of $787.1 million, up 57.6% year over year. This rally was primarily attributed to the expansion of its consumer and SME credit business, with loans outstanding surging 76.5% to $5.8 billion. Garena, Sea Limited's digital entertainment arm, experienced a resurgence in the first quarter of 2025, driven by the success of its flagship game, Free Fire. Bookings for the segment reached $775.4 million, a 51.4% year-over-year increase. Garena's revenue grew 8.2% year over year to $495.6 million, while adjusted EBITDA rose 56.8% to $458.2 million. The segment also saw a 32.2% increase in quarterly paying users and an 11.3% rise in quarterly active users to 661.8 million. Garena's collaboration with Naruto Shippuden contributed to increased user engagement, bringing average daily activity close to the pandemic-era highs. Earnings Estimate Revision for SE Trends Upward The Zacks Consensus Estimate for SE's second-quarter 2025 revenues is pegged at $5.08 billion, indicating a 29.87% year-over-year increase. The consensus mark for second-quarter earnings is pegged at 96 cents per share, which has been unchanged over the past 30 days. The estimate indicates a 108.7% upsurge from the figure reported in the year-ago quarter. For 2025, the Zacks Consensus Estimate for revenues is pegged at $22.28 billion, suggesting 31.53% year-over-year growth. The consensus mark for 2025 earnings is pegged at $3.94 per share, unchanged over the past 30 days. The estimate indicates a 134.52% jump from 2024's reported figure. Everything Not So Rosy for SE The launch of TikTok Shop in Brazil in May 2025 introduced a formidable competitor in the e-commerce landscape. Offering integrated shopping experiences and aggressive incentives like zero seller fees and free shipping, TikTok Shop is poised to rapidly capture market share, challenging Shopee's position in the region. In Brazil, Shopee Live faces slow uptake due to early-stage market conditions. Shopee Live is struggling to grow in Brazil due to limited awareness of live shopping and a lack of local content creators. Sea Limited is expected to invest in building this ecosystem, which can affect profitability in the near term. Conclusion: Hold SE Stock for Now Sea Limited's strong first-quarter performance, marked by solid revenue growth, a return to profitability and robust segment expansion, is encouraging. However, intensifying competition is creating headwinds. SE currently carries Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sea Limited Sponsored ADR (SE): Free Stock Analysis Report HubSpot, Inc. (HUBS): Free Stock Analysis Report Paylocity Holding Corporation (PCTY): Free Stock Analysis Report Atlassian Corporation PLC (TEAM): Free Stock Analysis Report
