Paylocity Holding Corporation (PCTY): Business Model Canvas [Jan-2025 Mis à jour]

Dans le paysage en évolution rapide de la technologie RH, Paylocity Holding Corporation (PCTY) apparaît comme une force transformatrice, réinventez la gestion de la main-d'œuvre via sa plate-forme innovante basée sur le cloud. En mélangeant de manière transparente des solutions logicielles de pointe avec une conception intuitive, Paylocity a taillé un créneau distinctif pour fournir des services de paie et de ressources humaines complets qui permettent aux entreprises de toutes tailles de rationaliser leurs processus administratifs les plus critiques. Cette exploration de toile de modèle commercial révèle le plan architectural stratégique qui a propulsé la référence pour devenir un acteur qui change la donne dans l'écosystème des logiciels d'entreprise, offrant des informations sans précédent sur la façon dont ils créent, fournissent et capturent de la valeur sur un marché compétitif.

Paylocity Holding Corporation (PCTY) - Modèle d'entreprise: partenariats clés

Fournisseurs de services cloud

Paylocity maintient des partenariats stratégiques avec les principaux fournisseurs d'infrastructures cloud:

Fournisseur	Détails du partenariat	Échelle de déploiement
Amazon Web Services (AWS)	Partenaire d'infrastructure cloud primaire	Plate-forme 100% basée sur le cloud
Microsoft Azure	Support d'infrastructure cloud secondaire	Services de sauvegarde et de redondance

Intégrateurs de logiciels de gestion du capital humain

Paylocity collabore avec plusieurs partenaires d'intégration de logiciels:

• Plateforme d'intégration de la journée de travail
• SAP SuccessFactors Partnership
• Connecteur cloud Oracle HCM

Sociétés de logiciels comptables et ERP

Partenaire ERP	Capacité d'intégration	Pénétration du marché
Fusée	Synchronisation directe de la paie et de la comptabilité	Plus de 500 000 clients intégrés
NetSuite	Intégration de la planification des ressources d'entreprise	Échange de données financières complet
Sage intacct	Synchronisation des logiciels comptables	Intégration financière du marché moyen

Réseaux d'organisation professionnelle de l'employeur (PEO)

L'écosystème du partenariat PEO de Paylocity comprend:

• Source totale ADP
• Services Insperity PEO
• Réseaux professionnels de Trinet

Services financiers et institutions bancaires

Institution financière	Focus de partenariat	Volume de transaction
JPMorgan Chase	Traitement de dépôt direct et de paie	Valeur de transaction annuelle de 2,3 milliards de dollars
Banque d'Amérique	Intégration des services financiers	Traitement des paiements de 1,8 milliard de dollars
Wells Fargo	Solutions bancaires de l'employeur	Transactions de paie 1,5 milliard de dollars

Paylocity Holding Corporation (PCTY) - Modèle d'entreprise: activités clés

Développer un logiciel de paie et de RH basé sur le cloud

Paylocity a investi 97,9 millions de dollars dans les frais de recherche et de développement au cours de l'exercice 2023. La société maintient une équipe dédiée d'ingénierie logicielle d'environ 500 professionnels axés sur les solutions technologiques RH basées sur le cloud.

Métriques de développement de logiciels	2023 données
Investissement en R&D	97,9 millions de dollars
Taille de l'équipe d'ingénierie logicielle	Environ 500 professionnels
Cycles annuels de libération des produits	4-6 mises à jour majeures

Innovation continue des produits et amélioration des fonctionnalités

Les principaux domaines d'information sur l'innovation comprennent:

• Outils de gestion de la main-d'œuvre dirigés AI
• Capacités d'analyse avancées
• Améliorations de l'expérience utilisateur-premier mobile
• Intégration avec les technologies des entreprises émergentes

Services de support client et de mise en œuvre

Soutenir les mesures	Performance de 2023
Taille de l'équipe du support client	Environ 350 professionnels
Temps d'embarquement moyen du client	2-4 semaines
Temps de réponse du support client	Moins de 4 heures

Sécurité des données et gestion de la conformité

Paylocity maintient Certification SOC 2 Type II et investit massivement dans les infrastructures de cybersécurité. La société alloue environ 15,2 millions de dollars par an aux initiatives de sécurité et de conformité.

Ventes et marketing de solutions technologiques RH

Métriques de vente et de marketing	2023 données
Taille de l'équipe de vente	Environ 600 professionnels
Dépenses de marketing	62,3 millions de dollars
Coût annuel d'acquisition des clients	8 500 $ par nouveau client d'entreprise

La stratégie de vente se concentre sur Ventes directes de l'entreprise et Partenariats de canaux stratégiques ciblant les clients du marché moyen et des entreprises dans diverses industries.

Paylocity Holding Corporation (PCTY) - Modèle d'entreprise: Ressources clés

Technologie avancée des logiciels RH et Payroll

La plateforme de technologie logicielle de Paylocity comprend les principales ressources technologiques suivantes:

Composant technologique	Spécification
Plate-forme basée sur le cloud	Solution SaaS entièrement intégrée
Version logicielle	Web Pay 23.1 et Mobile Pay 23.2
Investissement annuel de R&D	135,4 millions de dollars au cours de l'exercice 2023

Équipes de génie logiciel et de produits qualifiés

Les ressources humaines de Paylocity comprennent:

• Total des employés: 3 700 en juin 2023
• Travail en génie logiciel: 42% du total des employés
• Expérience d'ingénierie moyenne: 7,5 ans

Infrastructure cloud propriétaire

Métrique d'infrastructure	Spécification
Fournisseur de services cloud	Amazon Web Services (AWS)
Centres de données	3 emplacements géographiques redondants
Investissement annuel sur les infrastructures	47,2 millions de dollars au cours de l'exercice 2023

Base de données client et réseau de relations clients

• Base de clientèle totale: 38 500 entreprises
• Employés traités mensuellement: 2,1 millions
• Taux moyen de rétention de la clientèle: 92%

Propriété intellectuelle et brevets logiciels

Catégorie IP	Compte total
Brevets logiciels enregistrés	37 brevets actifs
Demandes de brevet en instance	12 en cours
Inscriptions de la marque	24 marques actives

Paylocity Holding Corporation (PCTY) - Modèle d'entreprise: propositions de valeur

Plateforme complète de gestion des RH et de la paie

Paylocity propose une plate-forme intégrée desservant 38 500 clients à partir de l'exercice 2023, avec un total d'environ 2,5 millions d'employés gérés par le biais de leur système.

Fonctionnalité de plate-forme	Couverture
Total des clients	38,500
Total des employés gérés	2,5 millions
Taille moyenne de l'entreprise servie	50-500 employés

Interface logicielle conviviale et intuitive

La plate-forme fournit un conception mobile d'abord Avec une cote de satisfaction de l'utilisateur à 95% et une garantie de disponibilité de 99,5%.

• Application mobile avec une fonctionnalité RH complète
• Capacités de connexion unique
• Interfaces de tableau de bord personnalisables

Capacités d'analyse et de rapport de données en temps réel

Fonction d'analyse	Métrique de performance
Vitesse de rapport en temps réel	Moins d'une seconde récupération de données
Capacité de traitement des données	500 000 dossiers des employés par minute
Précision d'analyse prédictive	87% de prédiction des tendances de la main-d'œuvre

Solutions de gestion de la main-d'œuvre rentables

Le modèle de prix varie de 18 $ à 35 $ par employé par mois, avec une valeur de contrat annuelle moyenne de 8 750 $.

• Aucune exigence de contrat à long terme
• Structure de tarification transparente
• Niveaux de prix évolutifs

Technologie évolutive pour les entreprises de toutes tailles

Segment d'entreprise	Pénétration du marché
Petites entreprises (10-50 employés)	42% de la clientèle
Mid-Market (51-500 employés)	38% de la clientèle
Entreprise (plus de 500 employés)	20% de la clientèle

Paylocity Holding Corporation (PCTY) - Modèle d'entreprise: relations avec les clients

Portails de support en ligne en libre-service

Paylocity fournit un support client complet en ligne via sa plate-forme numérique, qui prend en charge plus de 40 000 clients commerciaux à partir de 2023. La plate-forme permet:

• Accès 24/7 aux outils de gestion des RH et de la paie
• Gestion des données des employés en temps réel
• Capacités de rapport automatisées

Caractéristique du portail	Pourcentage d'utilisation
Tableaux de bord des employés en libre-service	92%
Traitement de la paie en ligne	87%
Gestion des avantages sociaux	75%

Équipes de gestion des comptes dédiés

Paylocity maintient équipes de gestion des comptes spécialisés Desservant les entreprises de marché intermédiaire avec des revenus annuels entre 10 et 500 millions de dollars.

Métriques de gestion des comptes	2023 données
Taux de rétention de la clientèle moyen	92%
Rapport moyen de compte-compte / client	1:50

Services d'intégration et de mise en œuvre personnalisés

Paylocity propose des stratégies de mise en œuvre personnalisées avec un temps d'intégration moyen de 4 à 6 semaines pour les nouveaux clients d'entreprise.

Formation régulière des produits et webinaires

L'engagement de formation annuel comprend:

• 150+ séances de webinaires en direct
• Plus de 30 000 participants à la formation professionnelle
• Ateliers de mise à jour des produits trimestriels

Mécanismes de rétroaction des clients axés sur la communauté

Les mécanismes de collecte des commentaires des clients comprennent:

• Score de promoteur net (NPS): 68
• Enquêtes de satisfaction des clients trimestriels
• Forums communautaires en ligne avec plus de 25 000 utilisateurs actifs

Canal de rétroaction	Engagement annuel
Forums communautaires en ligne	45 000 interactions
Billets de support client	78 000 résolus

Paylocity Holding Corporation (PCTY) - Modèle d'entreprise: canaux

Équipe de vente directe

Au quatrième trimestre 2023, Paylocity maintient une force de vente directe d'environ 550 à 600 représentants commerciaux ciblant les entreprises du marché intermédiaire. Le quota de vente annuel moyen par représentant est de 1,2 million de dollars.

Métrique de l'équipe de vente	2023 données
Représentants des ventes totales	575
Quota de vente moyen	$1,200,000
Couverture de l'équipe de vente	50 États

Site Web en ligne et marketing numérique

Les canaux numériques de Paylocity génèrent environ 40% des nouvelles acquisitions de clients. Le site Web de l'entreprise reçoit 250 000 visiteurs mensuels uniques avec un taux de conversion de 2,5%.

• Budget de marketing numérique: 18,5 millions de dollars en 2023
• Pay-Per-Click Couper les dépenses: 3,2 millions de dollars
• Investissement en marketing de contenu: 2,7 millions de dollars

Références de partenaires stratégiques

Les partenariats stratégiques contribuent à 22% des revenus totaux. Le réseau partenaire clé comprend:

Type de partenaire	Nombre de partenaires	Revenus de référence
Compagnies comptables	1,250	45,6 millions de dollars
Organisations d'employeurs professionnels	87	29,3 millions de dollars
Consultants en affaires	2,100	38,2 millions de dollars

Plateformes de marché du logiciel

Paylocity maintient la présence sur plusieurs marchés logiciels, générant 15% des nouvelles acquisitions de clients.

• Salesforce AppExchange: 4 500 prospects potentiels
• G2 Marketplace: 3 800 pistes potentielles
• Conseils logiciels: 2 700 prospects potentiels

Conférences et salons commerciaux de l'industrie

La participation annuelle des conférences et des salons commerciaux génère environ 12,7 millions de dollars en pipeline de vente potentiel.

Type d'événement	Nombre d'événements	Ventes potentielles générées
Conférences nationales	12	8,4 millions de dollars
Salons régionaux	45	4,3 millions de dollars

Paylocity Holding Corporation (PCTY) - Modèle d'entreprise: segments de clientèle

Petites et moyennes entreprises

Paylocity dessert 31 500 clients dans le segment d'entreprise de petite à moyenne taille à partir de l'exercice 2023. La taille moyenne des clients varie entre 50 et 500 employés.

Caractéristique du segment	Données statistiques
Total des clients	31,500
Compte moyen des employés par client	50-500
Revenus annuels du segment	582,4 millions de dollars

Entreprises de marché intermédiaire

Paylocity cible les entreprises de marché intermédiaire avec 500 à 2 500 employés, ce qui représente 22% de leur clientèle totale.

• 22% du portefeuille total des clients
• Valeur du contrat moyen: 24 500 $ par an
• Industries typiques: fabrication, soins de santé, services professionnels

Entreprises de services professionnels

Les entreprises de services professionnels représentent 18% des segments de clientèle de Paylocity, avec une représentation concentrée dans les secteurs juridiques, de conseil et de comptabilité.

Type de service	Pourcentage de segment
Services juridiques	6.5%
Cabinets de conseil	7.2%
Compagnies comptables	4.3%

Organisations de démarrage en croissance rapide

Paylocity dessert environ 15% des organisations de démarrage, en se concentrant sur la technologie et les secteurs axés sur l'innovation.

• 15% de la clientèle totale
• Gamme d'employés de démarrage typique: 20-250 employés
• Valeur du contrat annuel moyen: 18 750 $

Environnements d'entreprise à plusieurs situations

Paylocity prend en charge les clients des entreprises multi-emplacements ayant des besoins complexes de gestion de la paie et des RH.

Complexité de localisation	Pourcentage du client
2-5 emplacements	12%
6-15 emplacements	7%
15+ emplacements	3%

Paylocity Holding Corporation (PCTY) - Modèle d'entreprise: Structure des coûts

Investissements de recherche et développement

Pour l'exercice 2023, Paylocity a investi 69,1 millions de dollars dans les frais de recherche et de développement, ce qui représente 13,8% des revenus totaux.

Exercice fiscal	Investissement en R&D	Pourcentage de revenus
2023	69,1 millions de dollars	13.8%
2022	58,3 millions de dollars	12.5%

Maintenance des infrastructures cloud

Les infrastructures cloud annuelles et les frais d'hébergement pour Paylocity estimés à environ 12,5 millions de dollars en 2023.

• Amazon Web Services (AWS) Fournisseur de cloud primaire
• Dépenses annuelles des infrastructures cloud estimées: 12,5 millions de dollars
• Investissements de sécurité et de conformité cloud: 3,2 millions de dollars

Dépenses de vente et de marketing

Les dépenses de vente et de marketing pour l'exercice 2023 ont totalisé 137,2 millions de dollars, ce qui représente 27,4% des revenus totaux.

Catégorie de dépenses	Montant	Pourcentage de revenus
Personnel de vente	82,6 millions de dollars	16.5%
Programmes de marketing	54,6 millions de dollars	10.9%

Opérations de support client

Les coûts d'exploitation du support client pour 2023 étaient de 24,7 millions de dollars, ce qui représente 4,9% des revenus totaux.

• HeadCount de soutien du personnel: 350 employés
• Salaire du représentant moyen du soutien: 65 000 $
• Infrastructure de support technologique: 4,3 millions de dollars

Licences logicielles et améliorations technologiques

Les frais de licence et de mise à niveau de la technologie totale pour 2023 ont atteint 18,6 millions de dollars.

Catégorie de dépenses technologiques	Montant
Licence de logiciel	8,9 millions de dollars
Mises à niveau technologique	9,7 millions de dollars

Paylocity Holding Corporation (PCTY) - Modèle d'entreprise: Strots de revenus

Licence de logiciel basé sur l'abonnement

Paylocity génère des revenus grâce à des licences logicielles basées sur le cloud pour les solutions de gestion du capital humain. Pour l'exercice 2023, la société a déclaré un chiffre d'affaires total de 1,63 milliard de dollars, avec un croissance d'une année à l'autre de 20%.

Catégorie de revenus	Montant (2023)	Taux de croissance
Revenus d'abonnement	1,48 milliard de dollars	22%
Services professionnels	150 millions de dollars	10%

Modèles de tarification mensuels par employé

Paylocity facture aux clients en fonction du nombre d'employés, avec des prix allant de 20 $ à 40 $ par employé par mois.

• Petites entreprises (10-50 employés): 25 $ / employé / mois
• Entreprises de taille moyenne (51-250 employés): 35 $ / employé / mois
• Clients d'entreprise (250+ employés): prix personnalisé

Frais de mise en œuvre et d'intégration

La société facture des frais de mise en œuvre uniques allant de 2 000 $ à 15 000 $ selon la complexité organisationnelle.

Frais de module complémentaire de fonctionnalités avancées

Des modules supplémentaires et des fonctionnalités avancées génèrent des sources de revenus supplémentaires:

Fonctionnalité	Coût mensuel
Gestion des talents	5 $ à 10 $ / employé
Rapports avancés	500 $ - 2 000 $ / mois
Gestion de la main-d'œuvre mobile	3 $ à 7 $ / employé

Services professionnels et revenus de consultation

Les services professionnels ont contribué environ 150 millions de dollars en 2023, représentant les services de conseil, de formation et de personnalisation.

• Services de conseil: 100 $ à 500 $ l'heure
• Services d'intégration personnalisés: 5 000 $ à 50 000 $ par projet
• Programmes de formation: 2 000 $ à 10 000 $ par engagement

Paylocity Holding Corporation (PCTY) - Canvas Business Model: Value Propositions

You're looking to understand what makes Paylocity Holding Corporation's offering compelling to its clients as of late 2025. The value proposition centers on deep integration, modern user experience, and data-driven decision-making.

Unified platform for HR, Payroll, and Finance (Paylocity for Finance)

Paylocity Holding Corporation strategically expanded its modern workforce platform into the Office of the CFO with the launch of Paylocity for Finance in August 2025. This move unifies finance and HR teams through a single system grounded in the employee record, aiming to eliminate disconnected systems and manual processes. This integration is supported by the fact that HCM is increasingly viewed as the foundation for Unified Business Operations, according to Forrester's 2025 Human Capital Management Solutions Landscape report. The platform is designed to integrate with major ERP systems, such as NetSuite, QuickBooks, MS Dynamics, and Sage Intacct, to deliver real-time financial data and simplify accounting reconciliation. The integration of Airbase, recognized as a Visionary in the 2025 Gartner Magic Quadrant for Accounts Payable Invoice Automation, underpins the spend management capabilities.

The core value here is managing both payroll and non-payroll spend in one system. Here are the five core modules introduced with Paylocity for Finance:

Module	Key Feature/Benefit
AP Automation	Streamlines invoice processing and vendor payments in over 200 countries with automated workflows.
Expense Management	Delivers a single solution with artificial intelligence-powered, touchless expense reports, now the standard for new clients.
Corporate Cards	Enables issuance of virtual or physical cards with built-in controls and real-time tracking.
Guided Procurement	Centralizes purchase request workflows.
Headcount Planning	Supports strategic workforce planning.

Modern, mobile-first design focused on employee engagement and experience

The platform emphasizes a modern design to drive user adoption and employee experience. You can expect a fully integrated mobile version of the Paylocity for Finance experience to be available in Fall 2025, extending the mobile-first approach across the expanded suite. Managers benefit from a single, centralized task list for all approvals, whether for time off, expenses, or purchases, which helps them stay on top of workflows.

Comprehensive suite: payroll, benefits, talent, time & labor, and spend management

Paylocity Holding Corporation offers a broad suite built around the employee record. The platform spans the core HCM functions plus the new financial tools. This breadth is intended to capture more of the client's total spend on HR and finance technology.

• Payroll
• Benefits Administration
• Talent Management
• Time & Labor Management
• Spend Management (via Paylocity for Finance)

Dedicated support teams and high annual revenue retention (>92% for FY2025)

Client stickiness is a major value driver, supported by dedicated service. The company has achieved annual revenue retention exceeding 92% for three consecutive fiscal years, including FY-25. This high retention signals strong client satisfaction with the software and the accompanying implementation and support services. The company supplements its software with integrated implementation and leading customer service.

Here are some key financial and operational metrics from the end of fiscal 2025:

Metric	FY 2025 Value
Total Revenue	$1.60 bn
Annual Revenue Retention	>92%
Client Count (Approximate)	$\approx$41,650
R&D Expense	$281.7 million
Free Cash Flow Margin	21.5%

Actionable AI-driven workforce insights (e.g., Modern Workforce Index)

The platform embeds AI throughout to deliver intelligent automation and tailored insights. The Modern Workforce Index (MWI) is a proprietary dashboard built on this AI, which benchmarks a company against similar organizations across Paylocity Holding Corporation's client base, which numbered $\approx$41,650 clients at the end of FY25. The MWI provides prescriptive recommendations. For example, research shows that companies with higher MWI scores experience 15-25% lower attrition. The AI Assistant helps streamline getting information, allowing you to analyze trends, plan for changes using position-level data, and optimize financial decisions by seeing spend by department or vendor.

The data science team supporting this is dedicated, with over 20+ data scientists and engineers focused on making sophisticated AI accessible.

Finance: draft 13-week cash view by Friday.

Paylocity Holding Corporation (PCTY) - Canvas Business Model: Customer Relationships

Dedicated support is central to Paylocity Holding Corporation's strategy, aiming to secure high revenue retention. The company reported a revenue retention rate greater than 92% for fiscal year 2025. Each client gets an account management team serving as the main contact for support and service needs, which is intended to provide knowledgeable resources accountable for the overall client experience. As of June 30, 2025, Paylocity Holding Corporation provided its solutions to approximately 41,650 clients, excluding those acquired through acquisitions.

The sales process for new mid-market client acquisition is high-touch, relying on a direct sales force. The company actively grew its sales capacity to support this, with 885 sales representatives in fiscal 2025, marking an 8% increase from 820 in fiscal 2024. Furthermore, benefit brokers accounted for more than 25% of new business, and over 25% of new client revenue derived from referral channels, showing the importance of partner ecosystems. The average revenue per client increased by approximately 8% in fiscal 2025, reaching just over $35,300, up from $32,800 in fiscal 2024, driven by client base expansion and upselling.

Metric	Fiscal 2024 Value	Fiscal 2025 Value	Change/Notes
Revenue Retention Rate	Greater than 92%	Greater than 92%	Consistent performance.
Client Base (Excl. Acquisitions)	~39,000 (as of 6/30/2024)	Approximately 41,650	7% client base growth in FY2025.
Sales Representatives Headcount	820	885	8% increase in sales force.
Average Revenue Per Client (ARPC)	$32,800	Just over $35,300	Approximately 8% increase.
New Client Revenue from Referrals	Not specified	Over 25%	Indicates strong client satisfaction/advocacy.

Employee and manager autonomy is supported through self-service capabilities, which is key for a platform focused on the mid-market. Workers use mobile apps on Google, iOS, and Android platforms for time clock functions, and managers can monitor hours and location data. The platform includes employee self-service features and PTO tracking to improve the overall employee experience. The Fall 2025 mobile launch of Paylocity for Finance is expected to further boost autonomy by bringing finance workflows to mobile users.

Product evolution is continuous, heavily influenced by client needs, especially with the expansion into finance workflows. The launch of Paylocity for Finance unifies HR and finance teams on a single employee record system, creating cross-sell opportunities back into the existing 41,650 client base. The company's total Research and Development (R&D) investment in fiscal 2025 was 14.3% of revenue on a non-GAAP basis. Recent updates include new guides for pay setup and punch imports to smooth integration workflows, and API enhancements for the Assessments and Background Check services.

• Generative AI functionality and a growing number of autonomous agents are being delivered across the platform.
• The company is focused on connecting day-to-day spend management with strategic workforce planning via the new finance module.
• New API endpoints were added to the Assessments API to retrieve assessment orders, filterable by company ID, order ID, candidate ID, or creation date.
• The Background Check API gained a new endpoint to Get Screening Orders for Partner.

Paylocity Holding Corporation (PCTY) - Canvas Business Model: Channels

You're looking at how Paylocity Holding Corporation gets its software solutions into the hands of mid-market companies. The channel strategy is clearly multi-pronged, blending direct effort with partner influence and digital reach.

Direct sales force targeting mid-market companies

The core of the acquisition engine is the direct sales force, which focuses squarely on that $\mathbf{10-5,000}$ employee segment, representing a realized Total Addressable Market (TAM) of $\mathbf{\$22}$ billion for Paylocity Holding Corporation. You saw solid execution here in fiscal year 2025, with the client base growing $\mathbf{7\%}$ to reach approximately $\mathbf{41,650}$ clients as of June 30, 2025. The investment in this channel is significant; Sales & Marketing operating expenses for the full fiscal year 2025 were $\mathbf{21\%}$ of total revenue.

To maintain momentum, Paylocity Holding Corporation staffed up its direct team. Coming into fiscal year 2026, the company expanded its sales force by $\mathbf{8\%}$ to $\mathbf{952}$ sales reps, aiming for durable recurring revenue growth.

Here's a quick look at the direct sales capacity and channel contribution:

Metric	FY 2025 / Entering FY 2026	Value
Total Clients (as of 6/30/2025)	FY 2025 End	41,650
Sales Representatives (Entering FY 2026)	FY 2026 Start	952
Sales & Marketing as % of Revenue (FY 2025)	FY 2025	21%
Average Revenue Per Client (ARPC) (FY 2025)	FY 2025 End	Just over $35,300

Indirect channel via the strong referral network of brokers and CPAs

The indirect channel is a major contributor, showing the value of trusted third-party endorsements. Benefit brokers, specifically, were a powerhouse for Paylocity Holding Corporation in the last fiscal year. Honestly, this is a classic SaaS play-using trusted advisors to shorten the sales cycle.

• Benefit brokers represented more than 25% of new business in fiscal year 2025.
• The overall referral network contributed over 25% of fiscal year 2025 new revenue.

Paylocity Marketplace for third-party application integrations

The Marketplace is where Paylocity Holding Corporation extends its platform functionality without building everything in-house. This ecosystem approach makes the core platform stickier. You see this strategy supporting the platform's expansion into the Office of the CFO with the launch of Paylocity for Finance, which integrates spend management capabilities.

Recent additions to the Marketplace in June 2025 highlight this focus on connecting critical workflows:

• New integrations with QuickBooks Online and NetSuite for direct General Ledger connection.
• The addition of Tracks to simplify scheduling and time tracking processes.
• Integration of American Medical Compliance training materials directly into the Learning Management System module.

Company website and digital marketing for lead generation

While specific digital marketing spend figures aren't broken out separately from the $\mathbf{21\%}$ Sales & Marketing opex, the company's consistent double-digit revenue growth suggests effective top-of-funnel activity driven by its digital presence. The focus is on showcasing a modern platform that resonates against legacy providers like ADP and Paychex, which are noted as key sources of new clients.

Mobile application for employee and manager access on the go

The mobile application is a key component for driving employee engagement and adoption, which directly supports the high Annual Revenue Retention Rate, which has remained above $\mathbf{92\%}$ for fiscal years 2023 through 2025.

• Enables employee self-service features.
• Allows managers to handle approvals and time/labor tasks remotely.
• Supports the overall goal of a unified, modern workforce platform.

If onboarding takes 14+ days, churn risk rises, so the ease of use provided by the mobile app is defintely a factor in maintaining that high retention.

Paylocity Holding Corporation (PCTY) - Canvas Business Model: Customer Segments

You're looking at the core market Paylocity Holding Corporation targets with its unified platform. The focus is squarely on the U.S. mid-market, which is a massive, underserved space hungry for modern software that connects HR and Finance.

The current client base, as of June 30, 2025 (excluding acquisitions), stands at approximately 41,650 U.S. clients. These clients aren't small shops; they average over 150 employees each. This average size places them firmly in the mid-market sweet spot, though their total addressable market (TAM) stretches from businesses with 10 employees up to 5,000 employees. The realized TAM is estimated at about $22.0 billion across roughly 1.3 million U.S. businesses in that 10 to 5,000 employee range. This means Paylocity Holding Corporation has captured about 3% penetration of that specific segment as of fiscal year 2025.

Client retention metrics show the stickiness of this segment. Annual revenue retention exceeded 92% for fiscal years 2023, 2024, and 2025. Furthermore, the quality of the client acquisition strategy is evident: over 25% of the new client Annual Recurring Revenue (ARR) in fiscal year 2025 came from referral channels.

The customer base is diverse, but certain industries show high adoption. Paylocity Holding Corporation is seeing significant usage in sectors like Education, Retail, and Professional Services. Specific counts for payroll-and-benefits usage show Education leading with 273 companies, followed by Marketing with 154, and Manufacturing with 144.

Here's a quick look at the scale and growth within the customer base as of the end of fiscal year 2025:

Metric	Value as of June 30, 2025	Context/Comparison
Total U.S. Clients (Ex-Acq)	41,650	Client base grew by 7% in FY 2025
Average Employees Per Client	Over 150	Targeting the mid-market
Total Addressable Market (Businesses)	Approx. 1.3 million (10-5,000 employees)	Realized TAM estimated at $22.0 billion
FY 2025 Annual Revenue Retention	Over 92%	Indicates strong client stickiness
FY 2025 New Client ARR from Referrals	Over 25%	Validation of partner ecosystem effectiveness

A key evolution in the customer segment strategy involves expanding beyond core Human Capital Management (HCM) and payroll to capture the Office of the CFO. The launch of Paylocity for Finance directly targets this group. This move aims to unify HR and Finance data through a single system of record, which is critical for companies looking to streamline spend management functions like AP automation and corporate cards. This expansion broadens the value proposition for existing clients and opens a new, high-value segment within the existing mid-market structure.

The ideal customer profile prioritizes modern, integrated software experiences. You see this reflected in the product strategy, which emphasizes an intuitive, easy-to-use suite. Companies are looking to move away from legacy systems that require significant manual effort for tasks like time and labor management, talent acquisition, and benefits administration. The platform's ability to connect these critical workflows is what drives adoption across teams, which is essential for maintaining that high revenue retention rate. If onboarding takes 14+ days, churn risk rises, so user-friendliness is a defintely key selling point.

The customer segments are characterized by:

• Mid-market focus, with current clients averaging over 150 employees.
• A total addressable market of approximately 1.3 million businesses in the U.S.
• A growing subset demanding integrated spend management capabilities.
• High concentration in industries such as Education, Retail, and Professional Services.
• A strong reliance on existing client satisfaction, evidenced by over 25% of new ARR from referrals in FY 2025.

Finance: draft 13-week cash view by Friday.

Paylocity Holding Corporation (PCTY) - Canvas Business Model: Cost Structure

You're looking at the expenses that fuel Paylocity Holding Corporation's growth engine as they scale their cloud-based HCM and payroll platform. For a Software-as-a-Service (SaaS) company like Paylocity Holding Corporation, the cost structure is heavily weighted toward product development and client acquisition, which is typical for a high-growth technology provider.

High R&D costs for continuous platform innovation are central to maintaining their competitive edge. Paylocity Holding Corporation invests heavily to roll out new modules and features, like the recent expansion into the Office of the CFO with Paylocity for Finance. For the full fiscal year 2025, the combined Non-GAAP Total Research and Development investment, which includes both expensed and capitalized amounts, represented 14.3% of total revenue. Based on the FY2025 total revenue of $1,595.2 million, this equates to approximately $228.11 million in combined R&D investment for the year.

Sales and marketing expenses to drive client acquisition and upsell form another significant cost pillar. This covers the direct sales force, commissions, and marketing efforts aimed at expanding their client base, which stood at approximately 41,650 clients across the U.S. as of June 30, 2025 (excluding acquisitions). For the full fiscal year 2025, Non-GAAP Sales and Marketing expenses consumed 21% of total revenue, amounting to about $334.99 million.

Personnel costs for the ~6,700 employees and dedicated support teams are embedded across all functions, but particularly in Sales & Marketing and Implementation/Client Services. As of June 30, 2025, Paylocity Holding Corporation employed 6,700 people. Personnel-related expenses, including wages, stock-based compensation, and benefits, are the primary driver within the operating expense categories.

The following table summarizes the major operating expense components as a percentage of FY2025 Total Revenue, which was $1,595.2 million.

Expense Category (Non-GAAP Basis)	FY2025 Margin (% of Total Revenue)	Approximate FY2025 Dollar Amount (in millions)
Sales and Marketing Expenses	21.0%	$334.99
Total Research & Development Investment (Combined)	14.3%	$228.11
General and Administrative Expenses	9.3%	$148.35

Technology infrastructure and cloud hosting costs (SaaS delivery) are primarily captured within the Cost of Revenues, which supports the delivery of their Software-as-a-Service platform. While the specific dollar amount for cloud hosting isn't broken out separately in the margin reporting, the company expects to realize cost efficiencies over the long term as they scale their client base. The focus on a unified, cloud-based platform means these costs are ongoing and scale with usage.

General and administrative expenses, including compliance and legal, cover corporate overhead, finance, HR, and compliance functions necessary to support a public, regulated entity. For the full fiscal year 2025, Non-GAAP G&A costs were 9.3% of total revenue, which translates to roughly $148.35 million. The company has shown a focus on driving leverage in this area; for instance, in Q1 2026, they achieved 70 basis points of leverage in G&A costs year-over-year.

Key cost drivers related to operations and support include:

• Employee-related expenses for direct sales and marketing staff.
• Costs for implementation and client services personnel.
• Computing costs associated with SaaS delivery.
• Amortization of capitalized implementation costs over 7 years.
• Marketing expenses to drive client acquisition.

Paylocity Holding Corporation (PCTY) - Canvas Business Model: Revenue Streams

You're looking at the core ways Paylocity Holding Corporation brings in cash as of late 2025. It's heavily weighted toward the sticky, predictable subscription base, but the interest rate environment has made the float income a much more significant component than in prior years.

The revenue structure is clearly segmented, though the non-subscription portion is aggregated in the public filings.

Revenue Stream Component	FY2025 Financial Amount (USD)
Recurring & Other Revenue from subscription fees	$1,471.8 million
Total Revenue (for context)	$1,595.2 million
Combined Float, Transactional, and Professional Services Revenue (Total Revenue - Recurring & Other Revenue)	$123.4 million

The subscription revenue is the bedrock of Paylocity Holding Corporation's financial stability. This recurring stream grew by 15% year-over-year in FY2025.

The float income stream is clearly a major driver of the non-subscription revenue, supported by the significant cash balances Paylocity Holding Corporation manages on behalf of its clients. The average daily balance of client funds for fiscal year 2025 sat at $3.0 billion.

The remaining revenue components are:

• Interest income generated from funds held for clients (float income)
• Fees for processing payroll, tax filings, and other transactional services
• Cross-sell revenue from new modules like Paylocity for Finance (Airbase integration)
• Professional services revenue (implementation and training fees)

The launch of Paylocity for Finance in FY2025 signals a clear strategic push to increase the revenue captured from the transactional and cross-sell categories by expanding into the Office of the CFO.