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Paylocity Announces Fourth Quarter and full Fiscal Year 2023 Financial Results

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  • Q4 2023 Recurring & Other Revenue of $282.0 million, up 24% year-over-year
  • Q4 2023 Total Revenue of $308.5 million, up 35% year-over-year
  • FY 2023 Recurring & Other Revenue of $1,098.0 million, up 30% year-over-year
  • FY 2023 Total Revenue of $1,174.6 million, up 38% year-over-year

SCHAUMBURG, Ill., Aug. 03, 2023 (GLOBE NEWSWIRE) — Paylocity Holding Corporation (Nasdaq: PCTY), a leading provider of cloud-based HCM and payroll software solutions, today announced financial results for the fourth quarter and full fiscal year 2023, which ended June 30, 2023.

“Recurring & other revenue grew 30% in fiscal 23 as we continue to provide the most modern software in the industry. Our sustained investment in product development allows us to continue to expand our product suite, evidenced by the recent announcement of several new premium offerings and feature enhancements including Advanced Scheduling, Learning Management, and Market Pay. We’re also proud to see our commitment to ongoing product innovation recognized in the marketplace with Paylocity recently being named as a Leader in NelsonHall’s 2023 Next-Generation HCM Technology NEAT report for both the Small / Medium and Mid / Large market segments,” said Steve Beauchamp, Co-Chief Executive Officer of Paylocity.

Key Recent Achievements

  • FY 2023 Recurring & Other Revenue of $1,098.0 million, up 30% year-over-year.
  • FY 2023 Total Revenue of $1,174.6 million, up 38% year-over-year.
  • FY 2023 GAAP net income increased 55% to $140.8 million from $90.8 million in FY 2022 and $2.49 per diluted share from $1.61 in FY 2022.
  • FY 2023 Adjusted EBITDA, a non-GAAP measure, increased 58% to $375.2 million from $237.8 million in FY 2022, or 31.9% of total revenue compared to 27.9% in FY 2022.
  • FY 2023 Net cash provided by operating activities of $282.7 million.
  • FY 2023 Free Cash Flow, a non-GAAP measure, of $215.8 million or 18.4% of total revenue.
  • Ending FY 2023 cash and cash equivalents balance of $288.8 million.
  • Updated financial targets given sustained revenue growth, increasing profitability and scale.
  Long-Term Financial Targets (1)(2)
  Previous Target   Updated Target
Total revenue growth 20% +   20% +
Adjusted gross profit 70 – 75%   75 – 80%
Non-GAAP total research and development 10 – 15%   10 – 15%
Non-GAAP sales and marketing 20 – 25%   20 – 25%
Non-GAAP general and administrative 10 – 15%   5 – 10%
Adjusted EBITDA 30 – 35%   35 – 40%
Free Cash Flow 15 – 20%   20 – 25%
       

(1) Financial targets except revenue growth based on percentage of total revenue.
(2) We are unable to reconcile forward-looking non-GAAP long-term financial targets to their directly comparable GAAP financial measures because the information which is needed to complete the reconciliations is unavailable at this time without unreasonable effort.

Fourth Quarter Fiscal 2023 Financial Highlights

Revenue:

  • Total revenue was $308.5 million, an increase of 35% from the fourth quarter of fiscal year 2022.
  • Recurring & other revenue was $282.0 million, an increase of 24% from the fourth quarter of fiscal year 2022.

Operating Income:

  • GAAP operating income was $49.4 million and Non-GAAP operating income was $84.0 million in the fourth quarter of fiscal year 2023.

Net Income:

  • GAAP net income was $37.3 million or $0.66 per share in the fourth quarter of fiscal year 2023 based on 56.7 million diluted weighted average common shares outstanding.

Adjusted EBITDA:

  • Adjusted EBITDA, a non-GAAP measure, was $100.6 million in the fourth quarter of fiscal year 2023.

Fiscal Year 2023 Financial Highlights

Revenue:

  • Total revenue was $1,174.6 million, an increase of 38% from fiscal year 2022.
  • Recurring & other revenue was $1,098.0 million, representing 93% of total revenue and an increase of 30% from fiscal year 2022 recurring & other revenue.

Operating Income:

  • GAAP operating income was $155.0 million and non-GAAP operating income was $320.9 million in fiscal year 2023.

Net Income:

  • GAAP net income was $140.8 million or $2.49 per share for fiscal year 2023, based on 56.6 million diluted weighted average common shares outstanding.

Adjusted EBITDA:

  • Adjusted EBITDA, a non-GAAP measure, was $375.2 million for fiscal year 2023.

Balance Sheet and Cash Flow:

  • Cash and cash equivalents totaled $288.8 million at the end of fiscal year 2023.
  • Net cash provided by operating activities for the fiscal year 2023 was $282.7 million compared to $155.1 million for fiscal year 2022.
  • Free cash flow, a non-GAAP measure, was $215.8 million or 18.4% of total revenue for fiscal year 2023.

A reconciliation of GAAP to non-GAAP financial measures has been provided in this press release, including the accompanying tables. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.”

Business Outlook

Based on information available as of August 3, 2023, Paylocity is issuing guidance for the first quarter and full fiscal year 2024 as indicated below.

First Quarter 2024:

  • Total revenue is expected to be in the range of $314.1 million to $318.1 million, which represents approximately 25% growth over fiscal year 2023 first quarter total revenue.
  • Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $89.5 million to $92.5 million.

Fiscal Year 2024:

  • Total revenue is expected to be in the range of $1.405 billion to $1.410 billion, which represents approximately 20% growth over fiscal year 2023 total revenue.
  • Adjusted EBITDA, a non-GAAP measure, is expected to be in the range of $464.0 million to $468.0 million.

We are unable to reconcile forward-looking non-GAAP financial measures included in our guidance to their directly comparable GAAP financial measures because the information which is needed to complete the reconciliations is unavailable at this time without unreasonable effort.

Conference Call Details

Paylocity will host a conference call to discuss its fourth quarter and full fiscal year 2023 results at 4:30 p.m. Central Time today (5:30 Eastern Time). A live audio webcast of the conference call, together with detailed financial information, can be accessed through https://investors.paylocity.com/events-and-presentations where you will be provided with dial in details. A replay of the call will be available and archived via webcast at https://investors.paylocity.com/.

About Paylocity

Paylocity is a leading provider of cloud-based HCM and payroll software solutions headquartered in Schaumburg, IL. Founded in 1997 and publicly traded since 2014, Paylocity offers an intuitive, easy-to-use product suite that helps businesses tackle today’s challenges while moving them toward the promise of tomorrow. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help people achieve their best through automation, data-driven insights, and engagement. For more information, visit www.paylocity.com.

Non-GAAP Financial Measures
The company uses certain non-GAAP financial measures in this release, including Adjusted EBITDA, Adjusted EBITDA margin, adjusted gross profit, adjusted gross profit margin, non-GAAP operating income, non-GAAP net income, non-GAAP net income per share, non-GAAP sales and marketing and non-GAAP sales and marketing margin, non-GAAP total research and development and non-GAAP total research and development margin, non-GAAP general and administrative and non-GAAP general and administrative margin, free cash flow and free cash flow margin. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flow that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. We define Adjusted EBITDA as net income (loss) before interest expense, income tax expense (benefit), and depreciation and amortization expense, adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described later in this release. We calculate Adjusted EBITDA margin as adjusted EBITDA as described in the preceding sentence divided by total revenues. Adjusted gross profit is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and amortization of capitalized internal-use software costs and certain acquired intangibles. Adjusted gross profit margin is calculated as adjusted gross profit as described in the preceding sentence divided by total revenues. Non-GAAP operating income is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described later in this release. Non-GAAP sales and marketing expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described later in this release. Non-GAAP sales and marketing margin is calculated by dividing non-GAAP sales and marketing by total revenues. Non-GAAP general and administrative expense is adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of certain acquired intangibles and other items as described later in this release. Non-GAAP general and administrative margin is calculated by dividing non-GAAP general and administrative margin by total revenues. Non-GAAP net income and non-GAAP net income per share are adjusted to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, the amortization of acquired intangibles and other items as described later in this release, including the income tax effect on these items. Non-GAAP total research and development is adjusted for capitalized internal-use software costs paid and to eliminate stock-based compensation expense and employer payroll taxes related to stock releases and option exercises and other items as described later in this release. Non-GAAP total research and development margin is calculated by dividing non-GAAP total research and development by total revenues. Free cash flow is defined as net cash provided by operating activities less capitalized internal-use software costs, purchase of property and equipment and lease allowances used for tenant improvements. Free cash flow margin is calculated by dividing free cash flow as defined in the preceding sentence divided by total revenues. Please note that other companies may define their non-GAAP financial measures differently than we do. Management presents certain non-GAAP financial measures in this release because it considers them to be important supplemental measures of performance. Management uses these non-GAAP financial measures for planning purposes, including analysis of the company’s performance against prior periods, the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management believes that these non-GAAP financial measures provide additional insight for analysts and investors in evaluating the company’s financial and operational performance. Management also intends to provide these non-GAAP financial measures as part of the company’s future earnings discussions and, therefore, the inclusion of the non-GAAP financial measures should provide consistency in the company’s financial reporting. Non-GAAP financial measures have limitations as an analytical tool. Investors are encouraged to review the reconciliation of the non-GAAP measures to their most directly comparable GAAP measures provided in this release.

Safe Harbor/Forward Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included herein regarding Paylocity’s future operations, ability to scale its business, future financial position and performance, future revenues, projected costs, prospects, plans and objectives of management are forward-looking statements. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “will,” “would,” “seek” and similar expressions (or the negative of these terms) are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, among other things, statements about management’s estimates regarding future revenues and financial performance, long-term financial targets and other statements about management’s beliefs, intentions or goals. Paylocity may not actually achieve the expectations disclosed in the forward-looking statements, and you should not place undue reliance on Paylocity’s forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from the expectations disclosed in the forward-looking statements, including, but not limited to the general economic conditions in regions in which Paylocity does business, changes in interest rates, business disruptions, reductions in employment and an increase in business failures that have occurred or may occur in the future; Paylocity’s ability to leverage AI Assist and other forms of artificial intelligence and machine learning in its technology, which may be constrained by current and future laws, regulations, interpretive positions or standards governing new and evolving technologies and ethical considerations that could restrict or impose burdensome and costly requirements on its ability to continue to leverage data in innovative ways; Paylocity’s ability to retain existing clients and to attract new clients to enter into subscriptions for its services; the challenges associated with a growing company’s ability to effectively service clients in a dynamic and competitive market; challenges associated with expanding and evolving a sales organization to effectively address new geographies and products and services; challenges related to cybersecurity threats and evolving cybersecurity regulations; Paylocity’s reliance on and ability to expand its referral network of third parties; Paylocity’s reliance on third party payroll partners in foreign jurisdictions in its Blue Marble business; difficulties associated with accurately forecasting revenue and appropriately planning expenses; challenges with managing growth effectively; risks related to regulatory, legislative and judicial uncertainty in Paylocity’s markets; Paylocity’s ability to protect and defend its intellectual property; the risk that Paylocity’s security measures are compromised or a threat actor gains unauthorized access to customer data; unexpected events in the market for Paylocity’s solutions; changes in the competitive environment in Paylocity’s industry and the markets in which it operates; adverse changes in general economic or market conditions; changes in the employment rates of Paylocity’s clients and the resultant impact on revenue; the possibility that Paylocity may be adversely affected by other economic, business, and/or competitive factors; and other risks and potential factors that could affect Paylocity’s business and financial results identified in Paylocity’s filings with the Securities and Exchange Commission (the “SEC”), including its 10-K filed with the SEC on August 5, 2022. Additional information will also be set forth in Paylocity’s future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that Paylocity makes with the SEC. These forward-looking statements represent Paylocity’s expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Paylocity disclaims any obligations to update or alter these forward-looking statements in the future, whether as a result of new information, future events or otherwise.

PAYLOCITY HOLDING CORPORATION
Consolidated Balance Sheets
(in thousands, except per share data)
 
  June 30,
  2022   2023
Assets      
Current assets:      
Cash and cash equivalents $ 139,756     $ 288,767  
Accounts receivable, net   15,754       25,085  
Deferred contract costs   59,501       78,109  
Prepaid expenses and other   28,896       35,061  
Total current assets before funds held for clients   243,907       427,022  
Funds held for clients   3,987,776       2,621,415  
Total current assets   4,231,683       3,048,437  
Capitalized internal-use software, net   61,985       86,127  
Property and equipment, net   62,839       64,069  
Operating lease right-of-use assets   49,210       44,067  
Intangible assets, net   45,475       34,527  
Goodwill   101,949       102,054  
Long-term deferred contract costs   229,067       294,222  
Long‑term prepaid expenses and other   7,746       6,331  
Deferred income tax assets   19,060       15,846  
Total assets $ 4,809,014     $ 3,695,680  
       
Liabilities and Stockholders’ Equity      
Current liabilities:      
Accounts payable $ 8,374     $ 6,153  
Accrued expenses   124,384       143,287  
Total current liabilities before client fund obligations   132,758       149,440  
Client fund obligations   3,987,776       2,625,355  
Total current liabilities   4,120,534       2,774,795  
Long-term operating lease liabilities   69,119       62,471  
Other long-term liabilities   3,681       3,731  
Deferred income tax liabilities   2,217       11,820  
Total liabilities $ 4,195,551     $ 2,852,817  
Stockholders’ equity:      
Preferred stock, $0.001 par value, 5,000 authorized, no shares issued and outstanding at June 30, 2022 and June 30, 2023 $     $  
Common stock, $0.001 par value, 155,000 shares authorized at June 30, 2022 and June 30, 2023; 55,190 shares issued and outstanding at June 30, 2021 and 55,912 shares issued and outstanding at June 30, 2023   55       56  
Additional paid-in capital   289,843       380,632  
Retained earnings   325,868       466,690  
Accumulated other comprehensive loss   (2,303 )     (4,515 )
Total stockholders’ equity $ 613,463     $ 842,863  
   Total liabilities and stockholders’ equity $ 4,809,014     $ 3,695,680  
               
PAYLOCITY HOLDING CORPORATION
Consolidated Statements of Operations and Comprehensive Income
(in thousands, except per share data)
 
  Three Months Ended
June 30,
  Year Ended
June 30,
  2022   2023     2022     2023
Revenues:                
Recurring and other revenue $ 226,867     $ 282,026     $ 847,694     $ 1,098,036  
Interest income on funds held for clients   2,080       26,427       4,957       76,562  
Total revenues   228,947       308,453       852,651       1,174,598  
Cost of revenues   77,394       96,706       287,002       367,039  
Gross profit   151,553       211,747       565,649       807,559  
Operating expenses:              
Sales and marketing   59,599       75,895       214,455       296,716  
Research and development   28,884       40,549       102,908       163,994  
General and administrative   44,244       45,951       163,692       191,823  
Total operating expenses   132,727       162,395       481,055       652,533  
Operating income   18,826       49,352       84,594       155,026  
Other income (expense)   (197 )     2,617       (997 )     3,588  
Income before income taxes   18,629       51,969       83,597       158,614  
Income tax expense (benefit)   3,483       14,715       (7,180 )     17,792  
Net income $ 15,146     $ 37,254     $ 90,777     $ 140,822  
Other comprehensive loss, net of tax   (741 )     (2,275 )     (2,369 )     (2,212 )
Comprehensive income $ 14,405     $ 34,979     $ 88,408     $ 138,610  
               
Net income per share:              
Basic $ 0.27     $ 0.67     $ 1.65     $ 2.53  
Diluted $ 0.27     $ 0.66     $ 1.61     $ 2.49  
               
Weighted-average shares used in computing net income per share:              
Basic   55,157       55,864       55,036       55,706  
Diluted   56,432       56,665       56,445       56,596  
                               

Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises for each of the three and twelve months ended June 30 are included in the above line items:

  Three Months Ended
June 30,
  Year Ended
June 30,
  2022   2023   2022   2023
Cost of revenues $ 2,778   $ 3,750   $ 12,610   $ 18,446
Sales and marketing   5,947     7,967     22,929     38,376
Research and development   4,814     8,020     19,945     38,719
General and administrative   12,704     12,276     45,625     58,964
Total stock-based compensation expense and employer payroll taxes related to stock releases and option exercises $ 26,243   $ 32,013   $ 101,109   $ 154,505
                       
PAYLOCITY HOLDING CORPORATION
Consolidated Statements of Cash Flows
(in thousands)
 
  Year Ended June 30,
  2021   2022   2023
Cash flows from operating activities:          
Net income $ 70,819     $ 90,777     $ 140,822  
Adjustments to reconcile net income to net cash provided by operating activities          
Stock-based compensation expense   63,052       96,202       147,300  
Depreciation and amortization expense   42,972       50,218       60,866  
Deferred income tax expense (benefit)   (13,642 )     (7,180 )     13,540  
Provision for credit losses   316       311       1,245  
Net amortization of premiums (accretion of discounts) on available-for-sale securities   347       381       (5,412 )
Amortization of debt issuance costs   171       185       286  
Other   632       318       1,396  
Changes in operating assets and liabilities:          
Accounts receivable   (1,654 )     (7,605 )     (9,407 )
Deferred contract costs   (56,850 )     (73,263 )     (80,781 )
Prepaid expenses and other   (4,004 )     (14,767 )     (3,994 )
Accounts payable   2,394       2,553       (1,554 )
Accrued expenses and other   20,297       16,923       18,416  
Net cash provided by operating activities   124,850       155,053       282,723  
Cash flows from investing activities:          
Purchases of available-for-sale securities and other         (433,962 )     (598,895 )
Proceeds from sales and maturities of available-for-sale securities   101,467       116,848       446,751  
Capitalized internal-use software costs   (28,594 )     (34,515 )     (45,004 )
Purchases of property and equipment   (9,461 )     (18,069 )     (21,910 )
Acquisitions of businesses, net of cash acquired   (14,992 )     (107,576 )      
Other investing activities         (2,500 )     (1,104 )
Net cash provided by (used in) investing activities   48,420       (479,774 )     (220,162 )
Cash flows from financing activities:          
Net change in client fund obligations   432,373       2,228,038       (1,362,421 )
Borrowings under credit facility         50,000        
Repayment of credit facility   (100,000 )     (50,000 )      
Proceeds from exercise of stock options   146              
Proceeds from employee stock purchase plan   12,214       14,103       16,916  
Taxes paid related to net share settlement of equity awards   (64,191 )     (69,761 )     (88,312 )
Payment of debt issuance costs   (64 )     (87 )     (885 )
Net cash provided by (used in) financing activities   280,478       2,172,293       (1,434,702 )
Net change in cash, cash equivalents and funds held for clients’ cash and cash equivalents   453,748       1,847,572       (1,372,141 )
Cash, cash equivalents and funds held for clients’ cash and cash equivalents—beginning of year   1,492,133       1,945,881       3,793,453  
Cash, cash equivalents and funds held for clients’ cash and cash equivalents—end of year $ 1,945,881     $ 3,793,453     $ 2,421,312  
Supplemental Disclosure of Non-Cash Investing and Financing Activities          
Purchases of property and equipment and internal-use software, accrued but not paid $ 581     $ 2,052     $  
Liabilities assumed for acquisitions $ 281     $ 4,581     $ 117  
Supplemental Disclosure of Cash Flow Information          
Cash paid for interest $ 870     $ 311     $ 404  
Cash paid (refunds received) for income taxes $ (136 )   $ 11     $ 1,359  
Reconciliation of cash, cash equivalents and funds held for clients’ cash and cash equivalents to the Consolidated Balance Sheets          
Cash and cash equivalents $ 202,287     $ 139,756     $ 288,767  
Funds held for clients’ cash and cash equivalents   1,743,594       3,653,697       2,132,545  
Total cash, cash equivalents and funds held for clients’ cash and cash equivalents $ 1,945,881     $ 3,793,453     $ 2,421,312  
                       
Paylocity Holding Corporation
Reconciliation of GAAP to non-GAAP Financial Measures
(In thousands except per share data)
 
  Three Months Ended
June 30,
  Year Ended
June 30,
  2022   2023   2022   2023
Reconciliation from Gross profit to Adjusted gross profit:              
Gross profit $ 151,553   $ 211,747   $ 565,649   $ 807,559
Amortization of capitalized internal-use software costs   6,744     8,936     25,267     31,440
Amortization of certain acquired intangibles   1,853     1,853     1,853     7,414
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises   2,778     3,750     12,610     18,446
Other items (1)   27         121     19
Adjusted gross profit $ 162,955   $ 226,286   $ 605,500   $ 864,878
                       
  Three Months Ended
June 30,
  Year Ended
June 30,
  2022   2023   2022   2023
Reconciliation from Operating income to Non-GAAP Operating income:              
Operating income $ 18,826   $ 49,352   $ 84,594   $ 155,026
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises   26,243     32,013     101,109     154,505
Amortization of acquired intangibles   2,770     2,637     8,752     10,948
Other items (2)   561         2,170     446
Non-GAAP Operating income $ 48,400   $ 84,002   $ 196,625   $ 320,925
                       
  Three Months Ended
June 30,
  Year Ended
June 30,
  2022   2023   2022     2023
Reconciliation from Net income to Non-GAAP Net income:              
Net income $ 15,146   $ 37,254   $ 90,777     $ 140,822  
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises   26,243     32,013     101,109       154,505  
Amortization of acquired intangibles   2,770     2,637     8,752       10,948  
Other items (2)   561         2,378       446  
Income tax effect on adjustments (3)   662     2,896     (19,398 )     (15,003 )
Non-GAAP Net income $ 45,382   $ 74,800   $ 183,618     $ 291,718  
                           
  Three Months Ended
June 30,
  Year Ended
June 30,
  2022   2023   2022   2023
Calculation of Non-GAAP Net income per share:              
Non-GAAP Net income $ 45,382   $ 74,800   $ 183,618   $ 291,718
Diluted weighted-average number of common shares   56,432     56,665     56,445     56,596
Non-GAAP Net income per share $ 0.80   $ 1.32   $ 3.25   $ 5.15
                       
  Three Months Ended
June 30,
  Year Ended
June 30,
  2022   2023   2022     2023
Reconciliation from Net income to Adjusted EBITDA              
Net income $ 15,146   $ 37,254   $ 90,777     $ 140,822
Interest expense   112     188     498       752
Income tax expense (benefit)   3,483     14,715     (7,180 )     17,792
Depreciation and amortization expense   13,799     16,385     50,218       60,866
EBITDA   32,540     68,542     134,313       220,232
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises   26,243     32,013     101,109       154,505
Other items (2)   561         2,378       446
Adjusted EBITDA $ 59,344   $ 100,555   $ 237,800     $ 375,183
                         
  Three Months Ended
June 30,
  Year Ended
June 30,
  2022   2023   2022   2023
Reconciliation of Non-GAAP sales and marketing:              
Sales and marketing $ 59,599   $ 75,895   $ 214,455   $ 296,716
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises   5,947     7,967     22,929     38,376
Other items (1)   32         194     22
Non-GAAP sales and marketing $ 53,620   $ 67,928   $ 191,332   $ 258,318
                       
  Three Months Ended
June 30,
  Year Ended
June 30,
  2022   2023   2022   2023
Reconciliation of Non-GAAP total research and development:              
Research and development $ 28,884   $ 40,549   $ 102,908   $ 163,994
Capitalized internal-use software costs   8,230     14,278     34,515     45,004
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises   4,814     8,020     19,945     38,719
Other items (1)   204         890     399
Non-GAAP total research and development $ 32,096   $ 46,807   $ 116,588   $ 169,880
                       
  Three Months Ended
June 30,
  Year Ended
June 30,
  2022   2023   2022   2023
Reconciliation of Non-GAAP general and administrative:              
General and administrative $ 44,244   $ 45,951   $ 163,692   $ 191,823
Stock-based compensation expense and employer payroll taxes related to stock releases and option exercises   12,704     12,276     45,625     58,964
Amortization of certain acquired intangibles   917     784     6,899     3,534
Other items (2)   298         965     6
Non-GAAP general and administrative $ 30,325   $ 32,891   $ 110,203   $ 129,319
                       
  Year Ended
June 30,
  2022   2023
Reconciliation of Free Cash Flow:      
Net cash provided by operating activities $ 155,053     $ 282,723  
Capitalized internal-use software costs   (34,515 )     (45,004 )
Purchases of property and equipment   (18,069 )     (21,910 )
Free Cash Flow $ 102,469     $ 215,809  
               

(1) Represents acquisition-related costs.

(2) Represents acquisition and other nonrecurring transaction-related costs and lease exit activity.

(3) Includes the income tax effect on non-GAAP net income adjustments related to stock-based compensation expense and employer payroll taxes related to stock releases and option exercises, amortization of acquired intangibles and other items, which include acquisition and other nonrecurring transaction-related costs and lease exit activity.

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Artificial Intelligence

Hohem Shines at IFA and IBC Exhibitions with Innovative AI Tracking Stabilizers

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SHENZHEN, China, Sept. 30, 2023 /PRNewswire/ — Recently, Hohem, a trailblazer in the gimbal market, showcased its innovation at two renowned international exhibitions – the IFA exhibition in Berlin from September 3 to September 5, and the IBC exhibition in Amsterdam from September 15 to September 18. These exhibitions are significant platforms for industry players to present their latest innovations and connect with enthusiasts.

The IFA exhibition, a global hub for consumer electronics, saw Hohem presenting a range of sought-after smartphone gimbal and camera stabilizers, such as iSteady M6 and iSteady MT2. The magnetic AI tracker is much to the delight of photography enthusiasts. With this sensor, users can enjoy a smooth AI tracking experience without the need for an app or Bluetooth connection. By simply facing the AI sensor and making gestures, iSteady MT2 and iSteady M6 swiftly and accurately tracks the subject, capturing facial and body movements even in challenging scenarios.
At IFA, Hohem shared the stage with industry giants like DJI, Zhiyun, Huawei and Apple, underlining its position amidst renowned brands in the smart imaging arena. The booth design, characterized by a blend of deep black and vibrant orange, was a visual treat, adding a touch of sophistication and modernity.
Following IFA, Hohem participated in the IBC exhibition, a prestigious event in the broadcasting industry. The booth, mirroring the design theme from IFA, presented Hohem’s innovative applications of smart imaging technology in broadcasting. This event also featured industry stalwarts like Canon, Sony and Nikon, further enriching the discourse on broadcasting technology and imaging. Furthermore, the Hohem MIC-01 Wireless Microphone has received recognition and acknowledgment from industry competitors, establishing Hohem as a key player in the gimbal market.
In the coming days, Hohem will continue to uphold its brand mission of “Create a more straightforward way of recording memorable moments with tech” and introduce more user-friendly and efficient smart imaging devices. Hohem aspires to earn the trust and admiration of consumers globally, emerging as a go-to brand in the smart imaging landscape.
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Digital Twin Market size worth USD 133.7 Billion, Globally, by 2030 at 38.1% CAGR: Verified Market Research®

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The “Global Digital Twin Market Size By Type, By Technology, By Industry, By Geographic Scope And Forecast” report has been published by Verified Market Research®. The report provides an in-depth analysis of the global Digital Twin Market, including its growth prospects, market trends, and market challenges.
JERSEY CITY, N.J., Sept. 29, 2023 /PRNewswire/ — The Global Digital Twin Market is projected to grow at a CAGR of 38.1% from 2023 to 2030, according to a new report published by Verified Market Research®. The report reveals that the market was valued at USD 7.2 Billion in 2022 and is expected to reach USD 133.7 Billion by the end of the forecast period.

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Browse in-depth TOC on “Digital Twin Market”
202 – Pages
126 – Tables
37 – Figures
Global Digital Twin Market Sees Unprecedented Growth Amidst Pandemic Challenges
The global Digital Twin Market is experiencing remarkable growth, transforming industries and revolutionizing decision-making processes across the board. A Digital Twin, a virtual replication of physical entities or systems, is driving innovation and operational efficiency across healthcare, pharmaceuticals, automotive, transportation, and aerospace sectors.
Digital Twin Market Drivers and Industry Insights:
Amid the challenges posed by the COVID-19 pandemic, the healthcare and pharmaceutical sectors have embraced Digital Twin technology, leveraging its capabilities for drug experimentation, patient monitoring, and medication impact assessments. The energy & power sector is emerging as a significant driver of Digital Twin adoption, with the manufacturing industry optimizing operations through its integration.
Digital Twin Market Outlook and Future Prospects:
The global Digital Twin market’s outlook remains promising, driven by the imperative need for data-driven decision-making and enhanced operational efficiency. Through real-time data analysis and predictive modeling, Digital Twins enable organizations to anticipate and optimize the performance of products and processes throughout their lifecycle. The market’s growth is further propelled by ongoing advancements in technology, fostering a landscape of innovation and strategic collaborations.
North America stands at the forefront of the Digital Twin revolution, serving as a key innovation center and early adopter of Digital Twins and associated technologies. Major industry players, including General Electric (US), have significantly invested in the sector, underlining the region’s market leadership. Their contributions are shaping the industry’s future, driving research, and fostering advancements that will redefine how businesses operate in the digital age.
Digital Twin Market Key Players
The “Global Digital Twin Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are Swim AI, Robert Bosch, Oracle, SAP, Ansys, Siemens AG, Microsoft Corporation, PTC, IBM, and General Electric.
The Digital Twin market represents a pivotal shift in how industries approach decision-making and operational efficiency. As we navigate the challenges brought forth by the pandemic, Digital Twins offer a beacon of innovation, enabling organizations to thrive in an increasingly digital world
To get market data, market insights, financial statements and a comprehensive analysis of the Global Digital Twin Market, please Contact Verified Market Research®.
Based on the research, Verified Market Research® has segmented the global Digital Twin Market into Type, Technology, Industry, And Geography.
Digital Twin Market, by Typeo  System Digital Twin
o  Process Digital twin
o  Product Digital Twin
Digital Twin Market, by Technologyo  Big Data Analytics
o  5G
o  AR, VR, and MR
o  AI and ML
o  Blockchain
Digital Twin Market, by Industryo  Retail
o  Telecommunication
o  Agriculture
o  Healthcare
o  Automotive and Transportation
o  Others
Digital Twin Market, by Geographyo  North America
U.SCanadaMexicoo  Europe
GermanyFranceU.KRest of Europeo  Asia Pacific
ChinaJapanIndiaRest of Asia Pacifico  ROW
Middle East & AfricaLatin AmericaBrowse Related Reports:
Digital Intelligence Platform Market By Component (Analytics, Data Management), By Vertical (Retail And E-commerce, Travel And Hospitality), By Touchpoint (Web, Mobile, E-Mail), By Geography, And Forecast
Digital Twin In Finance Market By Offering Type (Platforms And Solutions, Services), By Application Type (BFSI, Transport And Other Logistics, Healthcare, Manufacturing), By Geography, And Forecast
Digital Twin Technology Market By End-User (Manufacturing Process Planning and Product Design), By Application (Automotive, Aviation, Chemical, Healthcare), By Geography, And Forecast
Digital Accessibility Software Market By Product (Color Contrast Checker Software, Website Accessibility Software), By Application (Large Enterprises, SME’s), By Geography, And Forecast
Best Business Process Automation Software revitalizing business operations
Visualize Digital Twin Market using Verified Market Intelligence:
Verified Market Intelligence is our BI Enabled Platform for narrative storytelling in this market. VMI offers in-depth forecasted trends and accurate Insights on over 20,000+ emerging & niche markets, helping you make critical revenue-impacting decisions for a brilliant future.
VMI provides a holistic overview and global competitive landscape with respect to Region, Country, Segment, and Key players of your market. Present your Market Report & findings with an inbuilt presentation feature saving over 70% of your time and resources for Investor, Sales & Marketing, R&D, and Product Development pitches. VMI enables data delivery In Excel and Interactive PDF formats with over 15+ Key Market Indicators for your market.
About Us
Verified Market Research® is a leading Global Research and Consulting firm servicing over 5000+ customers. Verified Market Research® provides advanced analytical research solutions while offering information-enriched research studies. We offer insight into strategic and growth analyses, Data necessary to achieve corporate goals and critical revenue decisions.
Our 250 Analysts and SMEs offer a high level of expertise in data collection and governance use industrial techniques to collect and analyze data on more than 15,000 high impact and niche markets. Our analysts are trained to combine modern data collection techniques, superior research methodology, expertise and years of collective experience to produce informative and accurate research.
We study 14+ categories from Semiconductors & Electronics, Chemicals, Advanced Materials, Aerospace & Defense, Energy & Power, Healthcare, Pharmaceuticals, Automotive & Transportation, Information & Communication Technology, Software & Services, Information Security, Mining, Minerals & Metals, Building & Construction, Agriculture industry and Medical Devices from over 100 countries.
Contact UsMr. Edwyne FernandesVerified Market Research®US: +1 (650)-781-4080US Toll Free: +1 (800)-782-1768Email: [email protected]: https://www.verifiedmarketresearch.com/
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Public Key Infrastructure (PKI) Market worth $13.8 billion by 2028 – Exclusive Report by MarketsandMarkets™

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PKI will continue to be used by organisations for secure digital communications, identity management, and data protection in an increasingly linked and digitised world because to its flexibility to adapt to new technologies and security issues
CHICAGO, Sept. 29, 2023 /PRNewswire/ — The global Public Key Infrastructure Market is estimated to be worth USD 5.5 billion in 2023 and is projected to reach USD 13.8 billion by 2028, at a CAGR of 20.2% during the forecast period, according to a new report by MarketsandMarkets™.

Browse in-depth TOC on “Public Key Infrastructure (PKI) Market”
358 – Tables 56 – Figures300 – Pages
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Scope of the Report
Report Metrics
Details
Market size available for years
2017-2028
Base year considered
2022
Forecast period
2023-2028
Forecast units
Value (USD) Million/Billion
Segments Covered
By offering, deployment mode, organization size, application, and vertical
Region covered
North America, Europe, Asia Pacific, Middle East and Africa, and Latin America
Companies covered
Thales (France), Entrust Datacard (US), DigiCert (US), ManageEngine (US), Microsoft (US), HID Global (US), Google (US), AWS (US), AppViewX (US), Venafi (US), Nexus (Sweden), Sectigo (US), Futurex (US), GlobalSign (US), WISeKey (Switzerland), Cygnacom Solutions (US), Keyfactor (US), SECARDEO GmbH (Germany), Blue Ridge Networks (US), Softlock (Egypt), SSL.com (US), LAWtrust (South Africa), SecureMetric (Malaysia), Stormshield (France), and Enigma Information Security Systems (US)
The PKI market is being propelled by a convergence of factors in today’s digitally connected world. The escalating volume and complexity of cyberattacks have made robust security a paramount concern for organizations, prompting increased demand for PKI’s encryption, authentication, and digital signature capabilities. Secondly, regulatory compliance requirements, such as GDPR and HIPAA, mandate secure data handling and encryption, compelling organizations to adopt PKI solutions. The rise of digital transformation initiatives, remote work, and the Internet of Things further fuel the need for PKI to safeguard digital interactions, protect sensitive data, and establish trust in online transactions. As the digital landscape continues to expand and evolve, PKI remains the linchpin for ensuring cybersecurity, making it a pivotal driver in the cybersecurity market.
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By offering, the services segment to register the highest growth rate during the forecast period
The services segment of the PKI market is poised to register the highest growth rate during the forecast period, underlining the critical role of expert services in enabling organizations to harness the full potential of PKI solutions. Implementing and managing PKI can be complex, involving intricate cryptographic processes and security considerations. As cybersecurity threats evolve, organizations recognize the need for specialized expertise in securing digital identities and data. PKI service providers offer invaluable support, consultation, and implementation services to ensure a seamless and secure PKI deployment. Their role extends to customizing PKI solutions to align with the unique infrastructure of each organization, integrating PKI seamlessly into existing systems, and providing managed PKI services to streamline certificate management. Furthermore, PKI service providers play a vital role in ensuring compliance with stringent regulatory standards and industry best practices. Their training and support services empower organizations to maximize the benefits of PKI while maintaining the highest levels of security.
Based on vertical, the healthcare segment is to grow at the highest CAGR during the forecast period
The healthcare sector is poised to experience the highest compound annual growth rate within the PKI market during the forecast period, signaling a significant shift towards robust security and digital trust solutions. Several key factors contribute to this remarkable growth trajectory. The healthcare sector deals with highly sensitive patient data, making data security and patient privacy paramount concerns. PKI’s encryption and authentication capabilities provide a robust framework for safeguarding electronic health records, ensuring the integrity of medical data, and enabling secure sharing of patient information among healthcare providers. The COVID-19 pandemic has accelerated the adoption of telemedicine and remote healthcare services. The need for secure and trusted digital identities and communications has surged as the healthcare industry increasingly relies on digital platforms for remote consultations, diagnosis, and patient monitoring. PKI plays a pivotal role in enabling secure telehealth services, ensuring that patient data remains confidential and unaltered during remote interactions.
North America to hold the largest market share during the forecast period.
North America holds the largest market share during the forecast period in the PKI market, underscoring the region’s strong emphasis on cybersecurity, digital innovation, and regulatory compliance. North America is home to many enterprises, financial institutions, healthcare organizations, and government agencies, all of which rely heavily on robust cybersecurity solutions like PKI to protect sensitive data and ensure secure online transactions. The region’s recognition of PKI as a fundamental element of cybersecurity strategy drives its substantial market share. The United States, in particular, has a highly developed cybersecurity ecosystem, with numerous cybersecurity companies, research institutions, and government initiatives focused on enhancing digital security. This environment fosters innovation and adoption of advanced PKI solutions to address emerging threats.
Top Key Companies in Public Key Infrastructure (PKI) Market:
The major players in the Public Key Infrastructure Market are Thales (France), Entrust Datacard (US), DigiCert (US), ManageEngine (US), Microsoft (US), HID Global (US), Google (US), AWS (US), AppViewX (US), Venafi (US), Nexus (Sweden), Sectigo (US), Futurex (US), GlobalSign (US), WISeKey (Switzerland), Cygnacom Solutions (US), Keyfactor (US), SECARDEO GmbH (Germany), Blue Ridge Networks (US), Softlock (Egypt), SSL.com (US), LAWtrust (South Africa), SecureMetric (Malaysia), Stormshield (France), and Enigma Information Security Systems (US).
Recent Developments
April 2023 – Thales adds new phishing-resistant hybrid authenticators to its Passwordless Authentication for Microsoft Azure Active Directory Customers offering.April 2023 – Entrust Introduces Zero Trust Ready Solutions for Multi-Cloud Key Compliance, Next-Generation HSM, and Passwordless AuthenticationJanuary 2023 – A comprehensive digital trust system that combines public key infrastructure (PKI), certificate management, and certificate authority (CA) services was introduced by DigiCert. A significant product launch is Trust Lifecycle Manager, which is currently accessible as a component of the DigiCert ONE platform.February 2022 – To increase public trust in the cloud, Thales announced the continuation of its cooperation with Google Cloud. Organizations can confidently use the Google Cloud Platform (GCP) if the connection is stronger. The technique known as ubiquitous data encryption, which combines Thales’ Cypher Trust Cloud Key Manager and Google Cloud’s Confidential Computing, is activated. Customers can create and manage the encryption keys for data sent to Google Confidential Cloud Computing using the Thales Cypher Trust Data Security Gateway.Inquire Before Buying @ https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=145372975
Public Key Infrastructure (PKI) Market Advantages:
Using cryptographic techniques to shield data from unauthorised access and manipulation, PKI offers a solid framework for protecting digital communications and transactions.Sensitive data is kept private and secure during transmission and storage because to PKI’s data encryption capabilities.Organisations are able to confirm the identity of users and devices before authorising access to sensitive resources thanks to PKI, which enables secure user and device authentication.Digital signatures can be created and verified with PKI, protecting the integrity and legitimacy of electronic documents and transactions.PKI offers non-repudiation, which makes it impossible for participants to claim they were not involved in a transaction because digital signatures serve as evidence of validity.Through techniques like S/MIME (encrypt/Multipurpose Internet Mail Extensions), PKI can encrypt email connections and protect the confidentiality and integrity of email information.Organisations can authorise access to systems and data based on certificate validation using PKI-based access controls, which provides an additional layer of protection.By issuing and managing digital certificates, PKI facilitates identity management by streamlining user access and account management.PKI offers a secure framework for data protection and identity verification, assisting organisations in adhering to legal and compliance standards.Report Objectives:
To define, describe, and forecast the Public Key Infrastructure Market based on segments based on offering, deployment mode, organization size, application, and vertical with regions covered.To forecast the size of the market segments with respect to five regions: North America, Europe, Asia Pacific (APAC), Middle East and Africa (MEA), and Latin America.To provide detailed information on the major factors (drivers, opportunities, threats, and challenges) influencing the growth of the Public Key Infrastructure Market.To analyze each submarket with respect to individual growth trends, prospects, and contributions to the global Public Key Infrastructure Market.To analyze opportunities in the market for stakeholders by identifying high-growth segments of the global Public Key Infrastructure Market.To profile the key market players, such as top and emerging vendors; provide a comparative analysis based on their business overviews, product offerings, and business strategies; and illustrate the market’s competitive landscape.To track and analyze competitive developments in the market, such as new product launches, product enhancements, partnerships, acquisitions, and agreements and collaborations.Browse Adjacent Market: Information Security Market Research Reports & Consulting
Browse Other Reports:
Zero-Trust Security Market – Global Forecast to 2028
AML Market – Global Forecast to 2028
Cloud Security Market – Global Forecast to 2028
Managed Security Services Market – Global Forecast to 2027
Emotion Detection and Recognition Market – Global Forecast to 2027
About MarketsandMarkets™
MarketsandMarkets™ has been recognized as one of America’s best management consulting firms by Forbes, as per their recent report.
MarketsandMarkets™ is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.
Earlier this year, we made a formal transformation into one of America’s best management consulting firms as per a survey conducted by Forbes.
The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
Built on the ‘GIVE Growth’ principle, we work with several Forbes Global 2000 B2B companies – helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore™ (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.
To find out more, visit www.MarketsandMarkets™.com or follow us on Twitter, LinkedIn and Facebook.
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