Q3 Fiscal 2024

Investor Presentation

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This presentation is for informational purposes only and is not an offer to sell securities or a solicitation of an offer to buy any securities, and may not be relied upon in connection with the purchase or sale of any security.

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In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures for the periods presented provided in the Current Reports on Form 8-K filed with the SEC on May 2, 2024, August 3, 2023, August 4, 2022, August 5, 2021 and August 6, 2020.

This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data.

2

Core Addressable Market (TAM)

We remain squarely focused on increasing our limited penetration of a large, and growing, total addressable market

ed

TAM of

$

1

8

6 b

z

i

l

i

l

l

i

a

o

e

n

R

Current average

Over

client size of

1.3 million

140+

businesses

employees

36,200 clients

in the 10-5,000 segment of the market

as of June 30, 2023

~50%+ Realized PEPY

Less than 3% penetrated into addressable market

73 million employees

in the 10-5,000

segment of the market

Source: U.S. Census Bureau

4

Client Size

Competitive Landscape

Enterprise Market (10,000+ Employees)

5,000 Employees

Workday

Limited overlap in target market. Enterprise solutions focused on companies with several thousand employees and up - do not see them often competitively

Ultimate Kronos Group / Dayforce

Enterprise solution focusing primarily on >1,000 employee companies - seen in deals at the higher-end of our target market

Paycom

Average client size is larger than ours, generally seen at the middle/higher-end of our target market

Paylocity differentiates with a payroll and HCM platform built for the modern workforce + best- in-class client support

Average

Mid-Market

(51-1,000 Employees)

SMB Market

(1-50

Employees)

in-house

~3,000 regional

providers

solutions

Paycor

Average client size is smaller than

ours, generally seen at the

Core Market

middle/lower-end of our target

market

ADP / PAYX

Biggest competitors - compete

throughout our target market

Regionals

Smaller to mid-part of our market

In-House

Primarily lower end of the market

Focused on taking share in our target market of more than 1.3 million businesses

5

The Most Modern HCM Platform

6

Providing HR the tools for the modern workforce

Surveys

On Demand Pay

Learning

Community & Video

Employee Home

Feeling heard & valued

Create engagement with opportunities for feedback & recognition

Flexibility & wellbeing

Empower employees to manage their shifts & pay schedule without HR overhead

Connection across the org

Foster transparency and a sense of belonging with open communication

Mobile & on-demand

Everything employees need at their fingertips on any device

7

Competitive Landscape

Where Our Clients Come From

Combination of ADP/Paychex represents our largest source of new clients

Why we win

Industry-leading product suite combined with strong focus on client service resulting in 92%+ revenue retention

In-house solutions

(did not use a traditional 3rd party provider)

Local / regional payroll providers

All other competitors and new business formation

8

Go-To-Market Strategy

We hire experienced sales professionals

  • Most have prior HCM platform, HR technology or B2B sales experience
  • All sales are direct through our salesforce; no resellers / indirect selling
  • Our reps are focused on deals with 10-5,000 employees with our largest opportunities supported by our most experienced teams

820

18%

reps in fiscal 2024

From 694 reps in

fiscal 2023

All major U.S. geographies covered, but

room to add reps in every state

Our client base is well diversified across all industry verticals and geographies

9

Strong Referral Channel

Channel Value Proposition

Paylocity is the most complete platform for the modern workforce which helps our channel partners reach employees in new ways

We do not compete with our channel partners - We do not sell insurance or benefits; other major payroll / HCM competitors compete with brokers and financial advisors for insurance business and assets

Flexible platform with hundreds of available Integrations and open APIs for insurance, 401k and other providers. We continue to invest in integrations to add value for the broker community

Partner Portal allows our partners to differentiate Their services and help drive change at their clients by providing unique data insights

of our new client revenue comes

25%+ from referrals from channels

10

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Disclaimer

Paylocity Holding Corp. published this content on 02 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 May 2024 20:59:12 UTC.