Paylocity (PCTY) acquires Trace for workforce planning solution

salary city PCTY announced the official acquisition of Trace. Notably, Trace was recognized for its innovative workforce planning solutions that assist organizations in strategically managing their critical investments.

The Trace platform helps analyze and manage staffing plans, budget forecasts related to those plans, and approval of subsequent staffing changes.

Given the changing dynamics of the workforce, strategic management of headcount is becoming increasingly important. However, traditional staffing planning often relies on manual cycles within individual departments, lacks integration with critical business systems and process automation, and is prone to human error.

At the core of Paylocity’s advanced human capital management platform is a unified employee system of record designed to support the entire employee lifecycle, connecting critical HR data to a variety of business solutions and services.

The addition of Trace’s workforce planning capabilities to PCTY’s existing set of powerful integration and workflow tools is expected to enhance critical business processes, ultimately improving decision-making and accelerating execution.

PCTY, which currently carries a Zacks Rank #3 (Hold), is down 17.7% year to date, while the Zacks Computer & Technology industry has gained 45.5% due to past high-cost acquisitions.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Paylocity Holdings Price and Consensus

Paylocity Holding Corporation Price Consensus Chart | Paylocity Holding Corporation Quotes

Paylocity’s recent investment helps revenue growth

Paylocity takes the concept of a unified system very seriously. In a recent move, the company integrated technology from acquisition target Cloudsnap. This integration enables PCTY’s customers to consolidate systems to facilitate seamless automated data exchange. The focus on unified systems underscores the company’s commitment to streamlining processes and increasing efficiency for its customers.

To enhance overall workplace vitality, Paylocity launched innovative features earlier this year. Notably, the company launched recognition and rewards and employee voice tools designed to help employers foster a positive culture, increase engagement and improve recruitment and retention efforts.

In addition, PCTY has launched updated mobile applications, enhanced its generative artificial intelligence and learning management systems, and launched premium products that provide market compensation data. These initiatives are expected to help revenue growth in the coming quarters.

The Zacks Consensus Estimate for PCTY’s fiscal 2024 revenues is pegged at $1.41 billion, representing an annual gain of 19.71%. The Zacks Consensus EPS estimate is for $5.91, representing year-over-year growth of 14.76%.

Paylocity faces stiff competition automatic data processing ADP, monday.com MNDY and working days working days.

ADP Workforce Now stands out as a comprehensive HR software suite designed to meet the needs of small, medium and large companies. Its platform is built on a unified database, ensuring easy access to critical information at any given time. The software offers a variety of tailor-made package options to meet the needs of different industries and seamlessly connects with existing tools, partners or pre-integrated applications in the ADP Marketplace.

Known for its versatility, Monday.com offers a variety of features designed to effectively meet the diverse needs of HR teams. It offers a range of templates, such as Feedback Tracker and Applicant Tracker, while also giving users the flexibility to customize their workflows. Its free plan is particularly beneficial for startups and small teams looking to launch HR software quickly. For larger organizations, the Enterprise plan ensures access to advanced features and scalability that are critical to effectively managing a large enterprise.

Workday is a comprehensive, cloud-based software designed to simplify financial and HR management within an organization. It has a smart data core that seamlessly connects financial and employee data to provide valuable insights and flexibility for informed decision-making. Workday is an ideal solution for businesses looking for a powerful and comprehensive tool to effectively manage complex HR processes.

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