Paylocity Holdng (PCTY)

Gross profit margin

		Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019
Gross profit (ttm)	US$ in thousands	960,786	932,126	890,971	854,941	807,559	747,365	673,654	615,938	565,649	522,497	480,792	448,363	416,329	392,642	387,480	381,643	379,319	374,884	351,126	333,310
Revenue (ttm)	US$ in thousands	1,402,515	1,353,681	1,292,257	1,238,904	1,174,598	1,095,092	1,001,205	924,234	852,651	791,155	731,238	681,530	635,627	598,765	584,358	570,403	561,329	551,113	519,019	493,849
Gross profit margin		68.50%	68.86%	68.95%	69.01%	68.75%	68.25%	67.28%	66.64%	66.34%	66.04%	65.75%	65.79%	65.50%	65.58%	66.31%	66.91%	67.58%	68.02%	67.65%	67.49%

June 30, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $960,786K ÷ $1,402,515K
= 68.50%

Paylocity Holding's gross profit margin has shown a generally positive trend over the past few quarters, with a slight fluctuation within a relatively narrow range. The company's gross profit margin ranged from 65.58% to 69.01% over the past two years, indicating consistent profitability in its core operations.

The company has achieved a gross profit margin above 65% in each of the reported periods, which suggests that Paylocity is effectively managing its direct costs related to producing its software solutions and services. The increasing trend in the gross profit margin from 65.75% in March 2022 to 69.01% in September 2023 indicates improvements in cost efficiency and pricing strategies.

Investors and analysts typically view a high and stable gross profit margin as a positive indicator of a company's ability to generate profits from its primary business activities. Paylocity's ability to maintain a gross profit margin above 65% consistently reflects its strong competitive position and effective cost management practices.

Overall, the company's gross profit margin performance demonstrates solid operational efficiency and financial health, positioning Paylocity well for sustainable growth in its industry.