Paylocity Holding Corporation (PCTY): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No cenário em rápida evolução da tecnologia de RH, a Paylocity Holding Corporation (PCTY) surge como uma força transformadora, reimaginando o gerenciamento da força de trabalho por meio de sua inovadora plataforma baseada em nuvem. Ao misturar perfeitamente soluções de software de ponta com design intuitivo, a Paylocity criou um nicho distinto na prestação de serviços abrangentes de folha de pagamento e recursos humanos que capacitam negócios de todos os tamanhos para otimizar seus processos administrativos mais críticos. Esse modelo de negócios Exploration revela o projeto arquitetônico estratégico que impulsionou a Paylocity a se tornar um jogador que muda o jogo no ecossistema de software corporativo, oferecendo informações sem precedentes sobre como eles criam, entregam e capturam valor em um mercado competitivo.

Paylocity Holding Corporation (PCTY) - Modelo de negócios: Parcerias -chave

Provedores de serviços em nuvem

A Paylocity mantém parcerias estratégicas com os principais provedores de infraestrutura em nuvem:

Provedor	Detalhes da parceria	Escala de implantação
Amazon Web Services (AWS)	Parceiro de infraestrutura em nuvem primária	Plataforma 100% baseada em nuvem
Microsoft Azure	Suporte secundário à infraestrutura em nuvem	Serviços de backup e redundância

Integradores de software de gerenciamento de capital humano

O Paylocity colabora com vários parceiros de integração de software:

• Plataforma de integração do dia de trabalho
• Parceria da SAP SuccessFactors
• Oracle HCM Cloud Connector

Empresas de software de contabilidade e ERP

Parceiro ERP	Capacidade de integração	Penetração de mercado
QuickBooks	Folha de pagamento direta e sincronização contábil	Mais de 500.000 clientes integrados
Netsuite	Integração de planejamento de recursos da empresa	Troca de dados financeiros abrangente
Sage Intacct	Sincronização de software de contabilidade	Integração financeira do mercado intermediário

Redes de Organização Profissional de Empregadores (PEO)

O ecossistema de parceria PEO da Paylocity inclui:

• Fonte total do ADP
• Serviços de PEO de insperidade
• Redes profissionais da TRINET

Serviços financeiros e instituições bancárias

Instituição financeira	Foco em parceria	Volume de transação
JPMorgan Chase	Depósito direto e processamento de folha de pagamento	Valor anual de transação anual de US $ 2,3 bilhões
Bank of America	Integração de serviços financeiros	Processamento de pagamento de US $ 1,8 bilhão
Wells Fargo	Soluções bancárias do empregador	Transações de folha de pagamento de US $ 1,5 bilhão

Paylocity Holding Corporation (PCTY) - Modelo de negócios: Atividades -chave

Desenvolvimento de folha de pagamento baseado em nuvem e software de RH

A Paylocity investiu US $ 97,9 milhões em despesas de pesquisa e desenvolvimento no ano fiscal de 2023. A empresa mantém uma equipe de engenharia de software dedicada de aproximadamente 500 profissionais focados em soluções de tecnologia de RH baseadas em nuvem.

Métricas de desenvolvimento de software	2023 dados
Investimento em P&D	US $ 97,9 milhões
Tamanho da equipe de engenharia de software	Aproximadamente 500 profissionais
Ciclos anuais de liberação de produtos	4-6 Grandes atualizações

Inovação contínua de produtos e aprimoramento de recursos

As principais áreas de foco da inovação incluem:

• Ferramentas de gerenciamento da força de trabalho orientadas pela IA
• Recursos de análise avançada
• Melhorias de experiência do usuário móvel primeiro
• Integração com tecnologias corporativas emergentes

Serviços de suporte e implementação do cliente

Métricas de suporte	2023 desempenho
Tamanho da equipe de suporte ao cliente	Aproximadamente 350 profissionais
Tempo médio de integração do cliente	2-4 semanas
Tempo de resposta de suporte ao cliente	Menos de 4 horas

Segurança de dados e gerenciamento de conformidade

O Paylocity mantém Certificação SoC 2 Tipo II e investe fortemente em infraestrutura de segurança cibernética. A empresa aloca aproximadamente US $ 15,2 milhões anualmente para iniciativas de segurança e conformidade.

Vendas e marketing de soluções de tecnologia de RH

Métricas de vendas e marketing	2023 dados
Tamanho da equipe de vendas	Aproximadamente 600 profissionais
Gasto de marketing	US $ 62,3 milhões
Custo anual de aquisição de clientes	US $ 8.500 por novo cliente corporativo

A estratégia de vendas se concentra em Vendas diretas da empresa e Parcerias de canal estratégico direcionando clientes de mercado intermediário e corporativo em vários setores.

Paylocity Holding Corporation (PCTY) - Modelo de negócios: Recursos -chave

Tecnologia avançada de RH e software de folha de pagamento

A plataforma de tecnologia de software da Paylocity inclui os seguintes recursos tecnológicos principais:

Componente de tecnologia	Especificação
Plataforma baseada em nuvem	Solução SaaS totalmente integrada
Versão de software	Web Pay 23.1 e Mobile Pay 23.2
Investimento anual de P&D	US $ 135,4 milhões no ano fiscal de 2023

Equipes de engenharia de software qualificadas e desenvolvimento de produtos

Os recursos humanos da Paylocity incluem:

• Total de funcionários: 3.700 em junho de 2023
• Força de trabalho de engenharia de software: 42% do total de funcionários
• Experiência média de engenharia: 7,5 anos

Infraestrutura baseada em nuvem proprietária

Métrica de infraestrutura	Especificação
Provedor de serviços em nuvem	Amazon Web Services (AWS)
Data centers	3 locais geográficos redundantes
Investimento anual de infraestrutura	US $ 47,2 milhões no ano fiscal de 2023

Extenso banco de dados de clientes e rede de relacionamento

• Base total de clientes: 38.500 empresas
• Funcionários processados ​​mensalmente: 2,1 milhões
• Taxa média de retenção de clientes: 92%

Propriedade intelectual e patentes de software

Categoria IP	Contagem total
Patentes de software registradas	37 patentes ativas
Aplicações de patentes pendentes	12 em processo
Registros de marca registrada	24 marcas comerciais ativas

Paylocity Holding Corporation (PCTY) - Modelo de negócios: proposições de valor

Plataforma abrangente de gerenciamento de RH e folha de pagamento

A Paylocity oferece uma plataforma integrada que atende a 38.500 clientes a partir do ano fiscal de 2023, com um total de aproximadamente 2,5 milhões de funcionários gerenciados por meio de seu sistema.

Recurso da plataforma	Cobertura
Total de clientes	38,500
Total de funcionários gerenciados	2,5 milhões
Tamanho médio da empresa servido	50-500 funcionários

Interface de software amigável e intuitiva

A plataforma fornece um Design de primeiro celular Com 95% de classificação de satisfação do usuário e garantia de tempo de atividade de 99,5%.

• Aplicativo móvel com funcionalidade completa de RH
• Recursos de logon único
• Interfaces de painel personalizáveis

Recursos de análise de dados em tempo real e relatórios

Recurso de análise	Métrica de desempenho
Velocidade de relatório em tempo real	Recuperação de dados menos de 1 segundo
Capacidade de processamento de dados	500.000 registros de funcionários por minuto
Precisão da análise preditiva	87% de previsão da tendência da força de trabalho

Soluções de gerenciamento de força de trabalho econômicas

O modelo de preço varia de US $ 18 a US $ 35 por funcionário por mês, com um valor médio anual do contrato de US $ 8.750.

• Não há requisitos de contrato de longo prazo
• Estrutura de preços transparentes
• Camadas de preços escaláveis

Tecnologia escalável para empresas de todos os tamanhos

Segmento de negócios	Penetração de mercado
Pequenas empresas (10-50 funcionários)	42% da base de clientes
Mid-Market (51-500 funcionários)	38% da base de clientes
Enterprise (mais de 500 funcionários)	20% da base de clientes

Paylocity Holding Corporation (PCTY) - Modelo de Negócios: Relacionamentos do Cliente

Portais de suporte on-line de autoatendimento

A Paylocity fornece suporte abrangente ao cliente on -line por meio de sua plataforma digital, que suporta mais de 40.000 clientes comerciais a partir de 2023. A plataforma permite:

• Acesso 24/7 às ferramentas de gerenciamento de RH e folha de pagamento
• Gerenciamento de dados de funcionários em tempo real
• Recursos de relatórios automatizados

Recurso do portal	Porcentagem de uso
Baixos de funcionários de autoatendimento	92%
Processamento de folha de pagamento on -line	87%
Gerenciamento de benefícios	75%

Equipes de gerenciamento de contas dedicadas

O Paylocity mantém Equipes de gerenciamento de contas especializadas Servindo empresas de médio porte com receita anual entre US $ 10 milhões e US $ 500 milhões.

Métricas de gerenciamento de contas	2023 dados
Taxa média de retenção de clientes	92%
Gerente médio de contas para relação ao cliente	1:50

Serviços personalizados de integração e implementação

A Paylocity oferece estratégias de implementação personalizadas com um tempo médio de integração de 4-6 semanas para novos clientes corporativos.

Treinamento regular de produtos e seminários on -line

O engajamento anual do treinamento inclui:

• 150+ sessões de on -line ao vivo
• Mais de 30.000 participantes de treinamento profissional
• Workshops trimestrais de atualização de produtos

Mecanismos de feedback do cliente orientados à comunidade

Os mecanismos de coleta de feedback do cliente incluem:

• Pontuação do promotor líquido (NPS): 68
• Pesquisas trimestrais de satisfação do cliente
• Fóruns comunitários online com mais de 25.000 usuários ativos

Canal de feedback	Engajamento anual
Fóruns da comunidade online	45.000 interações
Tickets de suporte ao cliente	78.000 resolvidos

Paylocity Holding Corporation (PCTY) - Modelo de Negócios: Canais

Equipe de vendas diretas

A partir do quarto trimestre de 2023, a Paylocity mantém uma força de vendas direta de aproximadamente 550 a 600 representantes de vendas direcionados às empresas de mercado intermediário. A cota de vendas médias por representante é de US $ 1,2 milhão.

Métrica da equipe de vendas	2023 dados
Total de representantes de vendas	575
Cota de vendas médias	$1,200,000
Cobertura da equipe de vendas	50 estados

Site online e marketing digital

Os canais digitais da Paylocity geram aproximadamente 40% das novas aquisições de clientes. O site da empresa recebe 250.000 visitantes mensais únicos com uma taxa de conversão de 2,5%.

• Orçamento de marketing digital: US $ 18,5 milhões em 2023
• Gastes de publicidade pagos por clique: US $ 3,2 milhões
• Investimento de marketing de conteúdo: US $ 2,7 milhões

Referências de parceiros estratégicos

As parcerias estratégicas contribuem com 22% da receita total. A rede de parceiros -chave inclui:

Tipo de parceiro	Número de parceiros	Receita de referência
Empresas de contabilidade	1,250	US $ 45,6 milhões
Organizações profissionais de empregadores	87	US $ 29,3 milhões
Consultores de negócios	2,100	US $ 38,2 milhões

Plataformas de mercado de software

A Paylocity mantém a presença em vários mercados de software, gerando 15% das novas aquisições de clientes.

• Salesforce AppExchange: 4.500 leads potenciais
• G2 Marketplace: 3.800 leads potenciais
• Conselho de software: 2.700 leads potenciais

Conferências e feiras do setor

A participação anual da Conferência e da Feira de Comércio gera aproximadamente US $ 12,7 milhões em potencial pipeline de vendas.

Tipo de evento	Número de eventos	Vendas potenciais geradas
Conferências Nacionais	12	US $ 8,4 milhões
Feiras regionais	45	US $ 4,3 milhões

Paylocity Holding Corporation (PCTY) - Modelo de negócios: segmentos de clientes

Pequenas e médias empresas

A Paylocity atende 31.500 clientes no segmento de negócios de pequeno e médio porte a partir do ano fiscal de 2023. O tamanho médio do cliente varia entre 50 e 500 funcionários.

Característica do segmento	Dados estatísticos
Total de clientes	31,500
Contagem média de funcionários por cliente	50-500
Receita anual do segmento	US $ 582,4 milhões

Empresas do mercado intermediário

A Paylocity tem como alvo as empresas no meio do mercado com 500-2.500 funcionários, representando 22% de sua base total de clientes.

• 22% do portfólio total de clientes
• Valor médio do contrato: US $ 24.500 anualmente
• Indústrias típicas: fabricação, saúde, serviços profissionais

Empresas de serviços profissionais

As empresas de serviços profissionais constituem 18% dos segmentos de clientes da Paylocity, com representação concentrada nos setores legais, de consultoria e contabilidade.

Tipo de serviço	Porcentagem de segmento
Serviços Jurídicos	6.5%
Empresas de consultoria	7.2%
Empresas de contabilidade	4.3%

Organizações de startups em rápido crescimento

A Paylocity atende a aproximadamente 15% das organizações de startups, com foco em setores de tecnologia e inovação.

• 15% da base total de clientes
• Faixa típica de funcionários de startups: 20-250 funcionários
• Valor médio anual do contrato: US $ 18.750

Ambientes corporativos de várias localizações

A Paylocity suporta clientes corporativos de várias localizações com necessidades complexas de folha de pagamento e gerenciamento de RH.

Complexidade de localização	Porcentagem do cliente
2-5 locais	12%
6-15 Locais	7%
15+ locais	3%

Paylocity Holding Corporation (PCTY) - Modelo de negócios: estrutura de custos

Investimentos de pesquisa e desenvolvimento

Para o ano fiscal de 2023, a Paylocity investiu US $ 69,1 milhões em despesas de pesquisa e desenvolvimento, representando 13,8% da receita total.

Ano fiscal	Investimento em P&D	Porcentagem de receita
2023	US $ 69,1 milhões	13.8%
2022	US $ 58,3 milhões	12.5%

Manutenção da infraestrutura em nuvem

Os custos anuais de infraestrutura em nuvem e hospedagem para pagamento estimado em aproximadamente US $ 12,5 milhões em 2023.

• Amazon Web Services (AWS) Provedor de nuvem primário
• Gastos anuais estimados em infraestrutura em nuvem: US $ 12,5 milhões
• Investimentos de segurança e conformidade em nuvem: US $ 3,2 milhões

Despesas de vendas e marketing

As despesas de vendas e marketing para o ano fiscal de 2023 totalizaram US $ 137,2 milhões, representando 27,4% da receita total.

Categoria de despesa	Quantia	Porcentagem de receita
Pessoal de vendas	US $ 82,6 milhões	16.5%
Programas de marketing	US $ 54,6 milhões	10.9%

Operações de suporte ao cliente

Os custos operacionais de suporte ao cliente para 2023 foram de US $ 24,7 milhões, representando 4,9% da receita total.

• Apoio à equipe de suporte: 350 funcionários
• Salário representativo de suporte médio: US $ 65.000
• Infraestrutura de suporte de tecnologia: US $ 4,3 milhões

Licenciamento de software e atualizações de tecnologia

O licenciamento total de tecnologia e as despesas de atualização de 2023 atingiram US $ 18,6 milhões.

Categoria de despesa de tecnologia	Quantia
Licenciamento de software	US $ 8,9 milhões
Atualizações de tecnologia	US $ 9,7 milhões

Paylocity Holding Corporation (PCTY) - Modelo de negócios: fluxos de receita

Licenciamento de software baseado em assinatura

O Paylocity gera receita por meio de licenciamento de software baseado em nuvem para soluções de gerenciamento de capital humano. Para o ano fiscal de 2023, a empresa registrou receita total de US $ 1,63 bilhão, com um crescimento ano a ano de 20%.

Categoria de receita	Valor (2023)	Taxa de crescimento
Receita de assinatura	US $ 1,48 bilhão	22%
Serviços profissionais	US $ 150 milhões	10%

Modelos de preços mensais por funcionários

A Paylocity cobra clientes com base no número de funcionários, com preços que variam de US $ 20 a US $ 40 por funcionário por mês.

• Pequenas empresas (10-50 funcionários): US $ 25/funcionário/mês
• Empresas de médio porte (51-250 funcionários): US $ 35/funcionário/mês
• Clientes corporativos (mais de 250 funcionários): preços personalizados

Implementação e integração de taxas

A empresa cobra taxas únicas de implementação que variam de US $ 2.000 a US $ 15.000, dependendo da complexidade organizacional.

Cobranças de complementos avançadas de recursos

Módulos adicionais e recursos avançados geram fluxos de receita suplementares:

Recurso	Custo mensal
Gerenciamento de talentos	$ 5- $ 10/funcionário
Relatórios avançados	$ 500- $ 2.000/mês
Gerenciamento de força de trabalho móvel	$ 3- $ 7/funcionário

Serviços profissionais e receita de consultoria

Os serviços profissionais contribuíram com aproximadamente US $ 150 milhões em 2023, representando serviços de consultoria, treinamento e personalização.

• Serviços de consultoria: US $ 100- $ 500 por hora
• Serviços de integração personalizada: US $ 5.000 a US $ 50.000 por projeto
• Programas de treinamento: US $ 2.000 a US $ 10.000 por engajamento

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.