Revenue during the quarter surged 44.15 percent to $65.02 million from $45.11 million in the previous year period. Gross margin for the quarter expanded 116 basis points over the previous year period to 56.39 percent. Operating margin for the quarter stood at negative 3.86 percent as compared to a negative 7.58 percent for the previous year period.

Operating loss for the quarter was $2.51 million, compared with an operating loss of $3.42 million in the previous year period.

However, the adjusted operating income for the quarter stood at $4.04 million compared to $0.87 million in the prior year period. At the same time, adjusted operating margin improved 429 basis points in the quarter to 6.22 percent from 1.93 percent in the last year period.

"Fiscal 2017 is off to a nice start, with first quarter total revenue growth of 44%," said Steve Beauchamp, president and chief executive officer of Paylocity. "In October we saw record attendance at our 8th annual Client Conference, where we had the opportunity to interact with clients from across the country and announce several new product features. I was also pleased that Paylocity was once again named to the list of Top 100 Digital Companies in Chicago ranking number 13 on the list."

For the fiscal year 2017, Paylocity Holding Corporation expects revenue to be in the range of $296 million to $298 million. The company projects adjusted net income to be in the range of $20 million to $22 million. It company projects diluted earnings per share to be in the range of $0.36 to $0.40 on adjusted basis.

For the second-quarter 2017, Paylocity Holding Corporation expects revenue to be in the range of $66 million to $67 million. The company projects adjusted net income to be in the range of $0.50 million to $1.50 million.On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.01 to $0.03.

Operating cash flow drops significantly
Paylocity Holding Corporation has generated cash of $1.88 million from operating activities during the quarter, down 36.77 percent or $ 1.10 million, when compared with the last year period.

Cash flow from investing activities was $462.84 million for the quarter, up 933.28 percent or $418.04 million, when compared with the last year period.

The company has spent $473.22 million cash to carry out financing activities during the quarter as against cash outgo of $50.34 million in the last year period.

Cash and cash equivalents stood at $78 million as on Sep. 30, 2016, down 0.88 percent or $0.69 million from $78.69 million on Sep. 30, 2015.

Working capital decreases marginally
Paylocity Holding Corporation has witnessed a decline in the working capital over the last year. It stood at $65.14 million as at Sep. 30, 2016, down 1.79 percent or $1.19 million from $66.33 million on Sep. 30, 2015. Current ratio was at 1.08 as on Sep. 30, 2016, down from 1.12 on Sep. 30, 2015.

Days sales outstanding were almost stable at 2 days for the quarter, when compared with the last year period.

At the same time, days payable outstanding was almost stable at 7 days for the quarter, when compared with the previous year period.