Investor

Presentation

Q1 FY2022

Safe Harbor StatementThis presentation is for informational purposes only and is not an offer to sell securities or a solicitation of an offer to buy any securities, andmay not be relied upon in connection with the purchase or sale of any security.

This presentation is proprietary and is intended solely for the information of the persons to whom it is presented. It may not be retained, reproduced or distributed, in whole or in part, by any means (including electronic) without the prior written consent of Paylocity Corporation.

This presentation contains forward-looking statements. All statements other than statements of historical fact contained in this presentation are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only current predictions and are subject to known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from those anticipated by the forward-looking statements. These forward-looking statements are subject to a number of risks, including those described under the heading “Risk Factors” in our periodic reports we have filed with the Securities and Exchange Commission (the “SEC”). Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, we are under no duty to update or revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this presentation.

In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP.

This presentation contains statistical data that we obtained from industry publications and reports generated by third parties. Although we believe that the publications and reports are reliable, we have not independently verified this statistical data.

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Our BusinessWe are a leading provider of cloud-basedHR and payroll software solutions

28,750 100+ employeesClients Average client size

4,150 Schaumburg, ILEmployees Headquarters

Best places to workConsistently awarded

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(FYE June 30, $mm)

20%YoY growth

13%YoY growth

34%YoY growth

◼ Total Revenue

$468$561

$637

$818

FY19 FY20 FY21 FY22Guidance

$136$182

Q1 FY21 Q1 FY22

26%YoY growth

29%YoY growth

Client Stats and CoreAddressable Market (TAM)

Only 2% penetrated into addressable market

Current average

client size of

100+employees

28,750 clients

as of June 30, 2021

Over

1.3 million

businessesin the 10–1,000 segment of the market

$420 PEPY

Over

55 million

employeesin the 10-1,000

segment of the market

4Source: U.S. Census Bureau

Competitive LandscapeWorkday/Ceridian – No overlap in target market. Enterprise solutions focused on companies with several thousand employees and up – do not see them competitively

Ultimate Kronos Group – Enterprise solution focusing primarily on >1,000 employee companies – see them in some deals at the higher-end of our target market

Paycom – Average client size is larger than ours, see them in certain deals, but generally at the middle/higher-end of ourtarget market

ADP/PAYX – Biggest competitors – compete throughout our target market

Regionals – Smaller to mid-part of our market

In-House – Primarily lower end of the market

PCTY differentiates on

product and service – with

payroll and HCM platform

built for the modern

workforce + best in class

client support

Focused on taking

share in our target

market of 1.3

million businesses

Enterprise

Market

(5,000+

Employees)

1,000

Employees

Mid-Market

(51-500

Employees)

SMB Market

(1-50

Employees)

Core Market

AV

ERA

GE

CLI

ENT

SIZE

in-house solutions

~3,000 regional providers

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Competitive Landscape –Where Our Clients Come From

Combination of ADP/Paychex represents our largest source of new clients

Why we win – Industryleading product suite(technology) combinedwith strong focus onclient service (92%+revenue retention)

In-house solutions (did not use a traditional 3rd party provider)

Local/regional payroll providers

All other competitors and new business formation

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Go-To-Market Strategy

We hire experienced sales professionals

• Many have prior payroll / HCM experience; also hire experienced B2B sales professionals

• All sales are direct through our salesforce; no resellers / indirect selling

All major U.S. geographies covered, but room to add reps in every state

18%From 498 reps in fiscal 2021

588 reps in fiscal 2022

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Strong Referral Channel

Channel Value Proposition

PCTY is a best in class payroll and HCM partner with a platform built for the modern workforce

We do not compete with our channel partners – we do not sell insurance or benefits; other major payroll/HCM competitors compete with brokers / financial advisors for insurance business and assets

Integrations – we have an extensive data integration system with over 400 insurance / 401k providers – we continue to invest in this space; differentiator versus competitors – value add for broker community

Partner Portal – Allows our partners to differentiate their services and help drive change at their clients by providing unique data insights

25%+ of our new client

revenue comes from referrals from channels (Benefit brokers, 401k advisors, workers compensation brokers)

Recently broadened partner channel to include CPAs and software companies.

These are warm leads, all sales are direct through our reps

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Unified Suite of Payroll, HCM, & Modern Workforce Solutions

Employee System of Record

Payroll• SaaS based payroll• Tax filing, direct deposit• Integration with 3rd

parties• On-Demand Pay

Core HR

• Single system for Payroll & HR

• Self service portal• HR compliance &

record keeping• Document Library

Talent

• Recruiting• On-boarding• Performance

management• Learning management

Modern Workforce

• Community• Premium Video• Rewards &

recognition• Surveys

Workforce Management

• Time & labor online tracking

• Manage employee schedules

Benefits

• Benefit enrollment& updates

• Advanced reporting• TPA Solutions

Automation Engagement Insights

$420 PEPY

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Consumer Oriented ExperiencesMobile and Social

Community

Impressions

Journals

SurveysLearning

Premium Video

On-Demand Pay

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Sustained R&D Investment Drives ProductExpansion and Revenue Growth

Over

100%increase in product suite since 2014

Consistently investing in R&D – both dollars and as a % of revenue

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$39

$49

$65

$80

$94

FY17 FY18 FY19 FY20 FY21

$285 PEPYR&D = 13% of revenue

$320 PEPYR&D = 13% of revenue

$360 PEPYR&D = 14% of revenue

$400 PEPYR&D = 14% of revenue

$420 PEPYR&D = 15% of revenue

R&

D In

vest

men

t ($

m)

$363

$448

$546

$632

$372

$468

$561

$637

FY18 FY19 FY20 FY21

FinancialsRevenue$ millions

Note - FY18 revenue represents pro forma non-GAAP revenue under ASC 606;FY18 revenue growth vs. FY17 is on a GAAP basis

Squarely focused on 20%+ revenue growth while demonstrating leverage in our business model

Revenue Growth 20%+

Adjusted Gross Margin 70-75%

Total R&D Investment 10-15%

Sales/Marketing 20-25%

General & Administrative 10-15%

Adjusted EBITDA 30-35%

Free Cash Flow 15-20%

Current Long Term Financial Targets

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26%YoY growth

20%YoY growth

◼ Recurring and Other Revenue ◼ Total Revenue

13%YoY growth

20% CAGR

Financials (Cont.)

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Free Cash Flow$ millions

Adjusted EBITDA$ millions

21% CAGR 28% CAGR

$49

$76$70

$86

FY18 FY19 FY20 FY21

12.9%Margin

16.3%Margin

12.5%Margin

13.6%Margin

$81

$134

$160$170

FY18 FY19 FY20 FY21

21.5%Margin

28.7%Margin

28.5%Margin

26.7%Margin

Strong Balance Sheet - $70M Cash & Invested Corporate Cash as of 9/30/21

Corporate Social ResponsibilityIn addition to our strong culture and the world-class service, Paylocity is committed to being a leader in social and environmental responsibility, and corporate governance

Helping our employees make a difference at work and within the community.

Our core values lead us to be a force of good at work and in the community.

PCTY Mobilization in FY21750+ volunteers1,050+ volunteer hours

Signature Partners

We believe people matter most and that differences of experience and perspective make us stronger together.

DE&I InitiativesDiversity Leadership CouncilUnconscious Bias TrainingAnnual Disclosure of Diversity Metrics

For more information on our ongoing efforts, visit our Corporate Social Responsibility page on our website.

PCTY Employee Resources Groups (ERGs)

PCTY in the Community PCTY Diversity, Equity, & Inclusion

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Governance at PCTYOur Board of Directors and Executive team are committed to promoting transparency and adhering to the highest ethical values.

Visit our website to learn more.

Information SecurityWe view the protection of our client’s data as a top priority.

Visit our website to learn more.

Visit our website to learn more.

Visit our website to learn more.

Visit our website to learn more.

Positioned for Long-Term Growth• Grow client base

• Expand product offerings

• HCM for the modern workforce

• Most Modern Platform

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