Paycom Software (PAYC) 4 May 222022 Q1 Earnings call transcript

Good afternoon. Thank you for attending today’s Paycom Software First Quarter 2022 Quarterly Results. My name is Tania, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions-and-answers at the end. [Operator Instructions] I would now like to pass the conference over to our host, James Samford, head of Investor Relations with Paycom. ahead. go Please

plans, welcome call. And are first XXXX our quarter historical Thank meaning statements date expected Securities the call. of to These made statements conference future to this related Litigation Certain including within that and on only earnings facts, outlook XXXX. Private represent of you. conference those of Paycom’s objectives this not our performance Act as statements are forward-looking forward-looking the Reform of the call

statements forward-looking results risks any to Form on believe most on because this statements our actual we While uncertainties. on and XX-K. subject reasonable, are made discussed our in recent expectations filings may the annual These call are risks and and materially, with report differ uncertainties including our the are based current SEC,

to as A will our financial should Officer. that not these and and information, a purposes. it financial to consider to Richison, over to information. and date market applicable Chad? planning forward-looking factors statement review measures website we non-GAAP non-GAAP forward-looking release net Paycom’s our results refer on call Executive President investors.paycom.com. after Also schedule of relying made the speaks income, expenses. is I except adjusted otherwise, any and including and is adjusted during to gross today and versus on turn profit, Any the when non-GAAP undertake in the for adjusted close available such result non-GAAP adjusted we We the and statements, issued only gross now required law. as Chad margin the on of expressly do Chief at is press showing and use included certain will performance GAAP as disclaim assess whether forward-looking update made obligation events or new which today’s refer future certain You of these call, our measures, EBITDA, or alter by we reconciliation

the I'll Thanks, James, expect a joining on Then quarter. the minutes everyone today. and performance drive to highlights opportunities forward. I on going I'll our thank call focus you to spend of strong few the that

Craig and guidance, take our our questions. we'll will that, Following and review financials then

quarter XX% in and approximately million was seasonal came Our better well year-over-year from new $XXX XXXX and in the and from of modestly to expectations, revenue strong strong ahead very of adjustments. revenue of business first recurring revenue forms, filings sales growth thanks

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future it of even to to making is the to our Beti continue compelling. clients, payroll. deliver more innovate value will even Beti We more

Our to market. strong very perform delivering marketing leads continues brand across and plan target our demo well, recognition

digital leveraging the the having and wrong a their recently of jobs. retarget With tools employees assets. for our new highlighting HCM given also are Paycom, with their efforts success lot We launched right tools We have employees been campaign at a how our have ad fingertips.

efforts usage marketing rapid of small both a at large having we're Our and target growth. great is key new clients, component clients success attracting employee our and which revenue

pleased to just with to On strategy. are markets further see I'm go-to-market sales and the front, the top we I our making energized our we Club with is everyone are our meeting President's how reps penetrate aligned and it was in returned execution sales fantastic the progress from with Florida in. and

sales Just with reps sales a sales sales done Faurot in $X year. sold we over in few outstanding years reps leading well. in celebrating Today, exceeding collaboration the job are Holly million year. has the ago, who the a very organization we $X working organization an million aligning is and a celebrated marketing

in Marketing are and awards to we awards and right the team and our department received that Sales women in Best of employers list best department for both mid-size awards. fact, best to workplaces. have more achieve expectations. I recently am we ever In Best than received addition companies growth for and Forbes top the culture place organizations These confident

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our we term our a strategy, over are differentiated that, quarter. their and Craig to work this our With call of growth. for for Craig? our and I'll Our our clients fuelling to performance thank I people the the long turn to delivering exceptional review employees guidance. hard and want are financials value

Chad. Thanks

financial Before everyone I to the to full will our and and comments I would quarter related that review on first our quarter like basis. a outlook second year non-GAAP certain for be remind XXXX, measures my

recurring with strong better-than-expected starts XX% period. very year filings annual First quarter and growth and excellent of total XXXX adjustments revenues the results In revenue comparable forms, from $XXX.X modestly over prior we representing had strong growth were million of revenue. QX,

our compared was growth adjusted success quarter total XX%. million range of target XX.X% attracting revenues and $XX.X profit XX.X% strong to to for driven we for of first total to revenues the continues of first XX.X% the XXXX representing revenue $XXX new solutions the year gross margin quarter XX% full-year XX% of adjusted gross an recurring XX% period. achieve focused quarter comparable prior revenues gross Adjusted to million quarter by prior or in adjusted sales of Our revenues, was in marketing and expense employee from representing strong the margin remain wins. revenue easy-to-use for on Within period. first $XXX.X the and the of for in growing be was million the demand business Total for and year

cost, first investment first investment key us $XX.X see deep be and of we continue Innovation and advertising including pipeline revenues. we $XX in We R&D XXXX continue EBITDA have of total quarter million the to revenues. projects expense to was to continues XXXX. $XX.X the are of revenues and the $XXX.X total strong to aggressively from XX.X% pursuing. in to portion throughout million of invest our in year in for year million area of return $XXX prior advertising or total quarter in was prior the or of compared plan on marketing period. XXXX million capitalized Adjusted X.X% XX.X% the spend that to compared a total were first R&D quarter the a million or of in Adjusted Adjusted

XX diluted in year per Our a GAAP quarter the income $X.XX million prior was approximately or for period versus diluted share based per the on or quarter million first per $XXX.X share XXXX a for million year $X.XX or per share the a net diluted income or Non-GAAP the $X.XX first million was prior $XX.X $X.XX of million in period. net diluted shares. $XX.X share $XX.X

a we effective anticipate XXXX, GAAP and to approximately tax full-year on XX% basis. non-GAAP rate For be income our

of XXXX. daily was the billion balance approximately $XXX million sheet, and The quarter total Turning $X.X million. $XX held we on the balance to first of behalf with cash in the of quarter funds approximately cash clients in of debt equivalents average of ended

the Now guidance. we now on first range results or billion in let growth quarter to strong expect me trends of We our the turn very guidance. raising are the range. we to billion midpoint are year-over-year at the $X.XXX seeing, the demand revenue full-year of Based XX% $X.XXX strong XXXX and

we range margin reported EBITDA in to midpoint the XX% that year. of adjusted to million of last expect representing at the $XXX margin, Rule We of growth $XXX the adjusted EBITDA revenue now range. exceed and expect of we adjusted EBITDA the million Combined XX

of of rate the XXXX, For prior $XXX in over $XXX approximately million the of total we of million to quarter at range. the comparable growth the range a XX% expect period midpoint revenues second representing the

demand We of and of raise EBITDA in roughly adjusted are the margin guidance our TAM range the market The for and of $XXX million market results have EBITDA the $XXX at expanding adjusted million we our confidence the our share solutions the expect XX% the we from range. the share of that the today. clearly for in representing quarter of strength second an our X% reflect our to in success midpoint having

a and of well success we model, model, the investments robust sheet, the sales for high are line we very revenue EBITDA are strong to open margin. that margin deliver will We rapid our year making revenue another and we adjusted questions. have of a positioned balance with and recurring With growth Operator? the

Barclays. first line [Operator Lenschow is question the Raimo with instructions] The from of

You line is open.

you're your hear done to what might from Thank especially one historically. an on like customer customers nervousness different momentum Thank guidance Obviously inside you around amazing I I from if look congrats like there's what's in also comments strong interesting about like market. how momentum the guidance. customers, small very large the kind around looks a wanted the stronger what than then over and to quote segments look that guidance Doesn't But wanted spill That's driving maybe in seeing it, like but you've I and what QX any strong Chad. at that the you. to more skills, talk me. situation little European US. you about of bit a and

Yeah.

as domestic our here first, US. aware, you're focus in So is the here

on are businesses. We focused those

does internationally. Our that allow employees people to system store work

So, question from or do in self-service as far drive a as in our although, And it out something then we on can think that what's that do TAM hands, their employees' business, In impacts as to self-service the as revenue to mark having continuing deploying something long success us, well somewhat there. employees. employee in hearts the technology level, for are go Europe, on impact does I have going above our of and the them deploy lot as every more we on. a more X% next only you those but of may most what's businesses as most momentum, not new of the and I being going that look there what's over the able they to that's technology X,XXX the hands on driving think your to for deploy you're macro keeping business us from out

so we drive our And continue move that's forward. definitely momentum to as help

a then balance, quick Okay. immediate you the if one impacting rates affect? about up, does of are I potentially higher flow And that think and interest how quick follow how

improvement so, we had XX a Yeah, basis end the quarter. towards Raimo, of first

balances. into short We're obviously best that way term, at deploy investing in our numbers. still fairly but a looking takes layer while to So, to those the

we up, rates. increased go on see would time would would they then those impact over we as So, start -- to

The Samana next Samad question is with Jefferies. from

Your line is open.

Good my taking Hi. questions. evening. for Thanks

it offices. strong normal even new than very So if maybe you gave staffed first staffing of the I you stronger that those of of Chad was of the year for opened several informed have and how that top the been those kind know curious just, already rest guidance for XQ? the maybe I'm fully on company a

been tell the offices I Yeah. can are all you producing they of new open have already. and

going to office they're for state. of obviously takes each continue do to maturity, So we're It but the as an them two from them reach to produce. full revenue years maturing in generate

would year, will expect, some be to the revenue that the from this small. some that those we would we achieve expect contributions revenue growth offices, definitely of So, there although

think would those would as look I -- definitely a see into think you you year next I XXXX. from larger and contribution offices

we've raises? Great. any fed Craig, just or a baking further And just know scuttle follow-up just a on can funds happened, been already rate, are understand, only maybe what's but is guidance in I the the into us seen of guidance then as Raimo XX question. raise butter increases future potential you the you revised to not help

we kind where earning today. of today we guidance is on really the what Yeah, gave are we're

point that increase. XX first included that basis So

So, raises they're talking about additional this week. even

see to how layer So into of into those earnings. we -- kind our our have

congrats and quarter. Okay, great. with my strong Thanks questions for taking

Thank you.

Brad Reback Stifel. Mr. Thank from with next Samana. is you, question The

is line Your open.

sellers Thanks productivity last result? is as to were much. Great. your any over you have back changes? change Chad, I of any a but really face-to-face the few get seen years, interactions, very productivity know you

wouldn't I We're we're No, to face. them face say doing some back face to face. of to

we're definitely shift for client still us. as close face I in again. today, through But they way face and benefit virtually, we are clients our number the impact the do still ratios hard face say quarter. be meetings definitely we that that of and well efficiency wouldn't a our fully we've walking we're of or meeting would where we're we opportunities we pre-pandemic. process that being say as me did here overwhelming has the to to and do going substantial way as that. back doing it I to the the positive live clients and as doing were still a majority more that made quarter for of for We're But believe are So face that I both held believe than sit to last this we that

it And over years, From impact environment. overall type reflect inflationary about Great. talked then does and I on market that to increases more ADP have switching think customer last current what XX week, aggressive price was gears, last the demand? the of your the

know it, that's inflation really we that increased. of regardless And the increasing in there's in opportunity. that you that matter subset we Well, value base. very Brad, adjustment then if to really client, are else. very don't our we impacted how inflation X% at as time. It did small At around create pricing XXXX. our and of client a And first it that, as we that, through there's look for able ROI at or pricing were don't anything that we sense share If adjustments for the pricing us an we we that We would that else. have and at that it doesn't the anything share a make only time, ROI I in to ROI we for mentioned look we adjustments increase or our do clients, opportunity really if generated

us could the pricing on as another one on so do be for clients as what our are based company extent that return our adjustments how that. sure far not us achieving. increased that to an But, investment we impact on do, might over So, would

great. Thanks That's much. very

you. Thank

Thank of you, Mark Baird. is question Marcon Mr. line Reback. the The next with from

line is Your open.

the about early of and among had of client can little then, sort congratulations and in on you've clients? afternoon retention and terms the good uplift excellent Wondering, and bit what those Beti in what's talk of change of a satisfaction reads you far so been you've that terms and seen the results. level engagement trends the Hey, conversions revenue

for and quotes rolling quotes July, clients, -- it ongoing all quotes from of new our well part a doing that in Beti a given we had started in all those all all for out July Beti, Yeah, was strategy. so

what bit so we work after conversion approach the I'm set a helping does better already making reason new way and a to a but conversion little up Beti different saying client the little approach And in that, we're is lot to current in other, in way the Beti. so payroll necessarily or is at into order Beti and in client payroll. conversion mode their data those mode deploying, would sets the a it there the difference they're a for and have client there's one also of getting how go a them And a way with conversions client that by They're a bit a not the have they to bit client. a current feed that mean than through work new I would make

a answer retention, case, stay use in of question more use, the happier they the product And a to they the our from products the businesses are. absolutely, that that in so and your they more longer

there. a So out Beti getting we're success lot having of

Chad, are do and the Beti clients you a you on revenue get lift that converting to if so…

to us. we new provides what Beti fee larger Beti fee. being sell revenue would've Beti Beti but so we current to yes. XX a sell a incremental modules, do, been past a nominal client, a we client yeah, It's would a it of uplift opportunity pricing We do revenue prior includes It's that one I included. said, the an it's their to Beti in time than be as if for or Beti each get and

to opposed year? you expectations, income, to doesn't of client the and incremental And built in And the operating balance investing base to flow benefit as question then rate relates so into the in what's extent Beti through would through terms the float that expectations currently to it? line what that let of terms it have your among conversions as of the the

that, opportunity disciplined in what in growth so and very we're we we always were invest, always also the do to Well, our is latter invest do. first looking to we're trying but taking to first,

question looking is The whole I've far expectations first our into Beti time. been we're as as about for into built forecast our bringing as to what in. about do. forecast, was Beti the built as, the aggressive been It's our far hopes very

clients, of or yet, that that aren't well employees, with clients can their on and yet aren't it, the happy quarter lot the clients I'm our benefits Beti there XX,XXX as of over as experiencing Although that there ROI a a well deliver. out are

about situations we And on expectations I doing. on I that so my gonna for say know don't in focused will that's we're that that. speed we're do But what rarely hit, what like for it either is is clients or have and that beginning signed XX,XXX converted really we started already product own that July. out up we're quotes in this a talking their putting

So it's moved Beti's hard ACA in for moving me our fast of product that's with as what find the to as like product exception another XXXX.

you, Thank Terrific. Chad.

Marcon. The is question Mr. Needham. you, with next [Operator Thank MacDonald Ryan instructions] from

is line open. Your

Thanks dealing of great quarter. at to being competitor cycles and my of hack on a for congrats take call, sales a the Chad, Paycom, discussion with competitor there process quarter higher that taking the those the bit last mentioned Obviously you December. in issue market, a of a longer question through. was on end

five now, Just there? post of some and Thanks. competitively if how have able you're feeling months to curious, that, wins sort obviously competitive successfully been you've

pull We've your always competitive definitely. out of have, that, don't have a it's had not we the yeah, Well, we strategy. but thorn wins,

paid. that all technologies manually, so through of down implement and Ours do to could we that full and having having and/or is a these system different clients their as get definitely were employees it going through go their strategy

most say a and changes. exactly now, an driving would are didn't. thorn for of forward move and That pull that's and of they out that palm businesses out, hurting not smart overall right them it. necessarily that where how how size we moment, a can but you're or thorn business not about becomes the of of now Some pretty all in strategic I strategy And size, that businesses that

time in that's overnight and all And they're EBITDA to understanding them to going the would've do especially us buying the businesses that we're is happen been it how that us what it's these from for converted because, would've is to clients that to so say not with them. and odd that value all retain because unnatural adjusted to bring things without we really margin order them revenue important for and generate created, the in at

the you're just of teams at Thanks, of about thoughts inside inbound up, seeing as teams sales follow the Thanks. down of expand remainder what incremental Excellent. the of capacity year. then curious lead in those sort feeling any just a of of your number flow and market the sort investment And of currently, through terms to for you're how teams

the expand of to would What's advertising demand our the meet with driving is We up teams the spend. number demand.

heavily because advertising it's spend to in working. continue We

advertising to of So handle handles represents want as continue drive leads have to those staffed which about make to revenue. able our market group, be The under we obviously efforts marketing X% group would that than and more leads. our sure we XX small employees to

volume, into when talking be we're shifts you're how what focus from that much advertising strategy we definitely the it add to away would and about and and to but what that enough that So, demand the so is and capture future, our generating trying here. resources able from many marketing lead sell that we're not to our grow to service

color. the Congrats for Thanks again.

question Mizuho. Mr. is next you, MacDonald. Thank from Siti Panigrahi The with

Your open. line is

follow-up, from filing better. my that for clarification said question. tax taking one revenue and models just and Thanks you then this Chad,

it now So to the is pre-pandemic level?

No.

further thinking, in you DDX Beti, terms Okay. product are how what's so heard as then of are market? of about you're innovation, moving in features terms in And we to thinking about product differentiate adding up now you when more innovation,

on. we that pipeline we of continue have well, work Yeah, a deep products to

what of You'll see to they're as do that very throughout have, everything been rolled the year. as success released continue have we block and drive has out. with current it a the continue because we we've next as It's building products we to important

building a next. everything's So what's block for

to over announce where, roll in we so a and already for clients one the different put in usage. developing it continue we're you years XX,XXX two all important so and get and been clients July and three, version XXX to which products listened version quotes get hear leads that's to version and quickly always them as it, these products out on on roll our products it's calls a of to you're product out all have and I've So and calls put then I'll this at they and competitors us and clients later and that you to through will never done, shift to version two, quarter on four, year. very good we're and have continuing enhance other products to greater and have out we usage this them, done

That's great. Thank you.

The line next from question Bergin you. with Thank is the of Cowen. Bryan

is line Your open.

Good Thank afternoon. guys. Hi you.

one employment you client base. of and where on pays First employment control estimate on now pre-pandemic to the do comment here client's quarter, during just relative levels? those you the Can client kind stands progressed base for your how

-- pandemic impacts I a stable. impact I on I due say That's now. business, not quickly. quite the which trends the that Quarter quarter, that been see say, not massive outside they're other the we on the for of to us need, growth stable to can't wouldn't to big had than client that of unemployment, in if that some happened that it's big did very us employment and the time our believe stable main employment say thing they're they've have nature we exception that fact with of

several quarters? can growth salesforce, then that on you How the the last salesforce has about salesforce and retention? And your the trended here talk just over Okay.

moving we've do is Holly retention, little sales in better. retention year, little our had would that a I little a know more also higher those we've the move a even better to say. Faurot groups. executive position that's got position reps Actually took but just last sales into executive better maybe they unchanged over in Substantially retention we quicker, with and And that quicker. that have as rep and because more sell rep we they

but rep do retention remains you as say what I than some, past. of as has it's the I hitting is a -- products, know improved they've there's just and we because you these through well, a it's always goals done the to sales do aggressive what but been, but that with sure would faster lot in higher challenge sales retention than executive for sell lot a go through so go And have to people that even

Okay. sense. Thanks. Makes

you, Thank from next Research. of with is the Zukin Bergin. The Mr. line Alex Wolfe question

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Hey guys, my taking thanks for question.

So maybe Chad, your exposure. I is raises of terms just recession one I question the you've questions the get is given of one, largest think Raimo's around one beats, lot of and you've QX, this resiliency of how had, recession probably think or think business had in about the to largest of a first we the first in kind to

company been long many one difficult -- You've given experiencing. seems your different a this customers a that you've of the run for through cycles. time economic are And environment little this hiring most

comment in macro your, quick incremental up. what's maybe just So on like, issues and your a these driving level of follow some of confidence the of face

does couple a deploying way one right and to is thing that you do you're with more they more of markets, things. labor to it less technology tight less is One do have think I with everyone. have the Well, do for

move everybody that app. business but forklift, the a pipe a use everybody in you're drives around, does the If not

able system, gets you're entire impact our people as to and to some difficult company more hire So, extent, it well. office the back with really to

And able so we're make to impact. that

those within forces times, where get it make you from think In efficiency business you business perspective, you tougher, that creates through and through don't we little good automation for and wrong I run that and helpful. So to when it's automate this, to like changes that's a that think times more markets efficient people. forces always it see a your I good that become and It's time any bit going necessarily in in. what's come

having we're as we not massive provided move this we're that again So, in it really shape shifts. believe good throughout year. unemployment I

And as maybe of tech payroll. and you then capabilities kind for that's normalizing bigger hybrid your picture look as of we concept global question, environment native market, just the native you acquired a or move some work, move if an doing How up have into start have Perfect. of hiring at of companies you as even that offer in think plan today, term on that that about, global do is for functionality that move a basis, you as as natively? longer the technology partnered various think you I market, important what's geographies type and particularly how but competitors to up

would Well, you're urgent. everything of things everything for a provide able time certain and, place there's to others has and and even, its and not some time everything's is its place ahead but important, I everything customer has that say

got US in would heading and say a your I even better putting be we've So go ambitious to Germany. said, that and international that in the that being head we time with international than right way lot fit us. and our say some that that we're have takes preclude legged believe that. we and environment, of for octopus that the system develop make what everything for we we're all review employees and because using continue All you're third strong things our into does to don't that have in one momentum the employees industry honestly would we to win a that your time sense and that expats and its can no otherwise. for payroll place clients even party party. for eight a from using with third I I they largest and and use those continue on Again, even system other using

good work again. Perfect. Well, keep doing

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you've biggest expected. holding about rates Some of are than better your up wins, your retention talked of that competitors sources

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focused remain we So on that.

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it. asset off flow. paying has company's a on throwing good Got and you tested then business allocation thought out capital dividend? model been much consistently Have that And given you're cash now the to

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Great. of question strong Thanks my to echo the my for and start year on congrats taking year. the

here? first then that specific success, and or driving stronger how the any to and execution versus employee product sales on what's seeing XK Just, that probably much maybe attributed verticals you're success seeing is are and of level, you're geos improvements there the

continues that labor there's markets really that you. everything it's think some becomes a these a regulation, with what in laws, it tight to not, and or a tight more, market more what's having is, level. Again, labor city, or even have at even whether out, to necessity I you're come new whether driving without, do all state you're or

businesses can much. so so, only do And

and and easier saves, employee's technology. them So for I lot becomes remains. lot of think to becoming to more more in thing decrease at that's and end do they or the use lot anytime a good think of least an That you're expect and and to something liability time a so back -- eliminates I exposure the that are important eliminates able of also employees a put much hands, the can

larger larger and so be lot a we're almost Employees to job that to tools that. to right seeing considered data technology Our to latest and going in the more work. and think their the They about to is tech that talks are a do are that I the level allows more at of them scenario manage campaign for have expect tool and businesses certain wrong a their right and tool.

a to That's look just with helpful just and up, might from quick follow Justin CEO changing that anything employ? the terms in change Justin of Got to structure or strategy it. Josh, in

very implementation No, actually great yesterday. has -- ahead He of been closely Holly. John running four had side he's for or ran with works job. focused that John to been very He's that been talked on implement I years Justin our usage. a done doing.

I I of just normally give year. that and year this say it's we end I'll have did you. only this want one And that time or about a because different know at the I'll we've retention on. We point, of -- end at this the to forward one only look giving question continue what -- number had the I to

But will make comment an improved. the So this every either it's I year's period our gonna to with one not a equal time, same when quarter. last basis or said, that current I'm that you on that ongoing compared with share with re number

while Holly time. closely can working a us Justin's here did say and very rest great and prepared this was he has I job the John and all well entire been is again, with of So

So, what table. he brings to the we're very about excited to

my for Thanks doing questions.

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today you on Thanks I on since questions. is have ACA, just to afternoon. quarter to to how you're it because second back this Maybe taking fastest do quarter? have go backlog long Good relative for given conversion your asked selling a to second you when visibility said go because comments that better Yeah. And my giving guidance the module a typical your live. from takes Beti, signing this average circle big

No, wouldn't with IPO in visibility, million We've I guiding say been we've since have million. great, have XXXX but had in range great better $X always we we visibility. $XXX we a but

data in commissions Beti as our and how into end make way the different to take of based in them. sets is data Paycom the commissions employees they're they're and doing and beginning it's would them time be had So we and fed new just on end we and on you there answer visibility. we've in that their system there a they're through they're ready period on see loaded what depends question and toward what kind to if how it conversion clients how a might on they're Where That's that might a fee client impact long But the to When always that completely client's what client. you move impact that in. to to current converting bag part one process of commissions have a that things a over a fed as your already fed the Beti. calculate in be into that point, again, they would and paid. in on toward that's nominal of feeding time In us because and it's are exist that the them, to system, be have conversion have the the to from be with are is than regards those are going at doesn't outside but client it a many that great would for motivated of to matters conversion, on It that such conversion mixed Betty fed it conversion done currently would doesn't be others, what's on with that prepare some a necessarily conversion. go, but take long a they're walk

employees they Of it course, and do from now, set it forget once work let's, system and the there. the

Great. very much. Thank you

next you. Kevin McVeigh from Suisse. is The Thank question with Credit

open. line Your is

any that Just us on could the much. helpful? would if that? And around that that just up improvement thoughts what's you so of I wonder adoption? understand just Is kind be module driving increased follow retention, Great. help Thanks

Sure.

been product equal years for it direct our continue usage out the So person and more clients on middle that's and driving driving to and skip and usage. has really what's what what's that I was it last to been getting four of more said or of return retention actually then than, greater with on three, as a either interface the the employees database product and the the investment have the

clients that the that on in organic that kind above it. versus that out is quantify the clients much existing moving then or is Got how new you're winning marketplace able X,XXX to mark? clients success up And primarily upmarket, of client is like you're is existing

I'm current what X,XXX we've than as success about clients that I'm go sure we clients we've clients. XXX group well I'm a onboarding new that about talking larger talking that's up and some I'm continue but X,XXX, talking have employees When gone as to much Well, market. some X,XXX employees from to the had had above not about.

the we've Of it more of that further because just up market. continuing got now. course we've in have field we've always people and in had even more success gone We're and to more

you. Thank

you, is with Thank The from next Mr. McVeigh. Arvind Piper question Sandler. Ramnani

open. is line Your

competitive Hi, thanks question. wanted ask to my about for just environment. I taking the

certainly You've an engine. innovation been

ones come years innovation of companies, You of sort cloud at is be seeing with direct kind you of back and more whether couple have the you any essentially some night? larger of private had a of even up your now competitors, change followers the or players fast the of Are sort that's or the it up Beti. or keeping of

that that, night, and ever anybody Well, first is on say not I beat that at I to being but, now will know keeping something is don't everybody me up us is. enough. the internet don't I is know enough,

innovation. investment, model the own look we have something. You expectation database competitors, implement as be going to our and for I strong all making I wants in for on drive employees the established data and measures, have I you competitions direct no new their to been believe think do We've are. just direct the somebody an way up employees employee have competition work. with catch into long drives there'd to better should innovative think into future, market. to payroll and and to competitors continue strong a be but exchange, model if the competitive didn't there changes throughout that's out return industry, stronger that to ways the up the they we way really think we data what exchange always come any the I through gonna think have have I that us I work, less doing We our to I do do reason innovate believe a to If very think a that

with whatever the to go multiple with eight is octopus work which to else. use expected employees I and passwords, call systems happen to I multiple no emails to see to I do to I And think employees is so everything change starting a what work? go And up and they what you're think legged like expect that's shifting, cobbled to that's head, really think now, when together use

I manage the of want change how to think to systems. expectation they side types an those to of employee have work to there's on starting much actually do

we're I making believe forefront those so the at changes. And of

we're success through a we've competitor I out as we're sources that. what gone putting of Yeah. of would think more proof same. I only a do the of doing? Can And lot expect

can anybody think I anything. do

You've had period year a shuttles build two space over people of time.

the the can leading. and I it So expectation. ones And have you've Yeah. to this things do leading you year, good But a of in lot my I how do those have earlier all believe I do got to that we're calls ones said and happen. we're someone really seeing do we're already for things be think, to you this? up with intentful year this we're set and that I'd know like

So a right now. lot of success

for Thanks that. Perfect.

questions There are You, this no Mr. additional waiting Ramnani. at time.

for pass So I any offer Chad closing over Richison to will remarks.

Operator, JPMorgan you In you month, continued Cohen, for of making right. support I this want may your be Needham reiterate Thank we the to conferences at joining Stifel for for would Jefferies, to conferences. everyone the meetings I meetings thank another we'll disconnect. June, my hosting and hosting quarter. like to the us at employees our and This All will today Baird be on call. thanks Paycom. outstanding

Thank for your you participation.

disconnect may your You lines. now