Paycom Software (PAYC) 2 May 232023 Q1 Earnings call transcript

Good afternoon. Thank you for attending the Paycom Software First Quarter 2023 Quarterly Results Conference Call. My name is Matt and I will be the moderator for today's call. All lines have been muted during the presentation portion of the call for an opportunity for questions and answers at the end. [Operator Instructions].

to Head conference of like host, to now Samford, James Investor would pass over the our I Relations. James, please go ahead.

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

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

You only obligation on whether future should otherwise, forward-looking do result consider or forward-looking except law. such a and and any made, and Any statement not our as forward-looking factors alter by information, required of applicable update as on of relying we undertake as events expressly these when refer new it is to disclaim made to or the speaks information. statements, which date

at today, non-GAAP close will purposes. release market and Also we and to margin results included press measures is performance gross the A that our financial available schedule measures, We during certain on non-GAAP versus the after net in certain financial to and reconciliation website is our gross assess adjusted for we showing today's investors.paycom.com. adjusted these planning GAAP issued the of profit, including use income, call, non-GAAP refer review adjusted adjusted EBITDA, expenses. and non-GAAP

Chief I Officer. will Chad? Executive and Richison, over President turn Chad now to Paycom's call the

of a plans of the And progress the then results everyone with highlights very made remainder with on initiatives. the from today. thank discuss strong the pleased you joining first year. we've and our in some delivered for James. quarter I'll to variety start call the We our first quarter I'm Thanks, I'll of

Following discuss our then dividend get questions. that, guidance take With we Craig and our started. policy, let's that, review financials will and our new will

first year-over-year approximately strong strong growth very from recurring quarter came clients. Our $XXX million revenue up XXXX of with in new XX% revenue

in solid EBITDA First XX% adjusted margin quarter positioned also initial up With at guidance, XX. adjusted well are basis our year-over-year. an XXXX EBITDA Rule points strong million of came of $XXX to roughly representing updated exceed for a XX full-year we outlook our very

front, the is a Self to client automated continues to product be strong payroll. additions. HCM and with accelerating. differentiator continuing be payroll BETI now And payroll industry processes the processes key can efficient BETI, in to perfect to On Employee transformation Service market The deliver more drive with Payroll

engage with do Using by the usage as Paycom their With key are way Employee that. HCM completed clients employees clients, BETI, own being changing payroll. XX% DDX, coming employees to measured the is for are database interactions employees a of our we new by differentiator of the solutions. and exactly

BETI. for Our are the about Meeting more Annual of returned I and our in conversations product with tone usage our just the salespeople. be excited I go-to-market around working. and from strategy couldn't product And President's top enthusiasm especially employee Club our

target growth rapid payroll having single needs Large market HCM of We upper range. simplifying their increasing organizations solution. benefit are at at with market database tremendously our the success end and our from with continued

with HCM, clients. our however, the TAM of TAM our we've value which strengthens beginning our the largest that has X% increased global proposition laid today, platform now have Global groundwork our We for with further

we and sum go-to-market strategy. product differentiated To highly up, with a well are executing

stockholder are initiation for another return pleased market program. foundation for to addressable of continue the quarterly I'd lay commitment like record the and we year. employees thank to with to helping opportunities enhance our the long-term breaking expand Our to dividend our

that guidance. turn With call I'll review a and Craig? financials the over for of our to Craig

review outlook this results XXXX, will our for my XX.X% for our quarter certain prior-year and to to financial and period. related million revenue everyone full-year delivered quarter second first I compared with of strong We very the like up remind non-GAAP a comments to XXXX I Before on be $XXX.X that measures would results basis. the quarter

million or of quarter total $XXX.X first Adjusted per in the the XXXX, shares. the was to or quarter of share, to million, compared diluted the first total or EBITDA GAAP revenues, XX.X% period XX quarter was Our XXXX prior-year XX.X% based revenues. first net of compared million up $X.XX for $XXX.X of in approximately income $XXX.X on XX.X% million

Non-GAAP net $XXX.X of quarter million, per diluted $X.XX first the income period. XX.X% for XXXX up prior-year or share the from was

was driven prior-year demand, strong new revenues, XXXX, revenue of growing comparable quarter the growth wins and Our period. of the revenues from was product $XXX.X total revenue representing for total million for by quarter, new recurring business XX.X% XX.X% Within the first adoption. and

and first XX.X% for quarter XXXX of the revenues. was marketing sales of Adjusted expense or $XX.X million

the the in total aggressively in was XXXX, demo Adjusted or to the X.X% first quarter $XX.X to Adjusted first R&D quarter compared marketing been drive model. investing reflecting the products. sales leads period, R&D of expense $XX.X new strong costs, in outside was our million $XX.X million of of have that portion We continued complement in revenues. million XXXX prior-year capitalized including total in investment

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

of daily behalf of of the in up $X.X representing XXXX, we sheet, of year-over-year. approximately the balance XX.X%. $XXX.X of from in was clients equivalents and million the $XX million. Cash balance cash to of operations $XXX and strong cash billion total ended sheet very including first first an increase held debt quarter, a million funds with on the was balance quarter average XX% approximately The quarter Turning

Now to let guidance. me turn

expect revenue or and the we XXXX, billion $X.XXX billion fiscal For the of range of $X.XXX our the at growth XX% to year-over-year are in raising approximately range. outlook now midpoint

to range EBITDA We expect million, adjusted an margin of EBITDA the range. $XXX representing million at of the in adjusted XX% $XXX midpoint approximately of the

results With of positioned to these strong Rule are exceed the XX. outlook, and well we

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

quarter million, approximately the the We for an midpoint $XXX of expect $XXX to of of EBITDA million first XX% adjusted in range. EBITDA representing adjusted margin the the range at

X, strategy. rapidly to in than initiate program highly generate operating a project in EBITDA revenues, a in growing mid-May. $XXX Board Finally, all into after million Paycom we flow, our greater cash On we're of Directors In strong company, continue and dividend over approved adjusted billion to which XXXX, the we of expect of May profitable Paycom that expanding quarterly XX capital years allocation would grow. $X.X

long-term dividend our and We confidence still believe $X.X and have the billion the Paycom of in total aggressively growth return resources returned pursue position a growth strength model. opportunities. and value to of of the stockholders sheet we is our buybacks opportunity, and Today's XXXX, the in to still balance Since place. a million to in have $XXX stockholders of necessary to authorization unique we our announcement dividend form nearly our the of policy profitability a stock business a reflects buyback resilience through

to rate mid-June an to competitive a share dividend and in start, per dividend financial are organic cash position per quarterly in great we in to flows. XXXX share to profit continue market, and intend revenue addressable a attractive at strong of high long a runway off strong a We growth, we margins $X.XX large rapid to Board and first deliver a pay attractive annual have a approval. of $XX.X with payable subject is

With for questions, that, line we will open operator? the

you. [Operator Instructions]. Thank

The Raimo first the question Barclays. from line with is Lenschow of

line now Your open. is

and dividend on Congrats me. you. questions Two introduction. for strong a of quick number Thank quarter

global can First, how like you here? have strategy that international? trying do understand help helping you follow-up? this bit help of understand become Chad, what then sea existing us that one like whole Is bit a a this a have you're a like the subsidiaries? Just change to and little customers Is more I like there in initiative, little or on extent like what's global the us

right have and it Sure, little they'll use other bit that so who can our work use for domestic in they oftentimes, countries, clients Raimo, so they software, currently several they system employees third-party with a payroll. and store now, the we internationally, then a and rigged

the in minus XX So this longer. the Paycom languages. system XXX is in have to our for payroll us any that'll countries And HCM have Because work Global now does product HCM Global everything, they current clients, side. don't do

send everyone is putting we're working at even and at be HR old the payroll opportunities, for any and to And way. fact into the else going But so, looked looked old potential processing. integration data does And we've and departments development with way, acquisitions. the third-parties, it we've not

So as BETI and be her out. the develop packing for us, globe, we'll we is around going bags, it

Yes, yes, okay, perfect.

now does kind countries? give is company with you become want optionality with to better? Okay. other of more that them them a domestic for work Or to more in global But just and major mean operations it this U.S. clients

require the focused step. BETI the we're Yes, have to us And absolutely. which countries different is We'll operations other product in certain HCM to company, countries. be it And done. into that, global moving side that's heavily in order the to first getting in will languages process a this countries do bringing and our those the in to now order on

of The Thank Samad question. question you line from for your Jefferies. is the with Samana next

Your line is open. now

quarter. open and really you good before. afternoon, on acquisitions, Chad, questions. stay I'm which said congrats whole good Hi, But word the I a of the then had to list

forward ask something broader too? is it? you something real M&A, is -- potential strategy be the to how to the just be going an the is limited going something of to I'm capital of use side part something cash other global announcement, or in the would that as allocation to to historically company's here time done, is is and mentioning in explore for on that So it going take Or maybe it maybe you'd just M&A you pivot dividend of which and areas between

don't to develop that things grow Well, been and and it's develop way process I mean, our never, internally way. that I to say but want

payroll the internationally, at out was multiple long-term at no so more to And options that. review comment earlier my looked shortcut the did were for day, we of the side end we success. as there's building But early

already have to other able the countries a and up on of Beti as so, be to going we're getting we're with end the us brung And how And to what set well. our well the things to all at know day, software. develop dance in in way we

have to to but Samad, So direct I in a your on and if answer still dividend with place. was say to that, be a would no, do we more buyback question, going did mean, billion I we have $X.X I

campaigns. numbers for see. And I Great. then good be digital more the side aware a there know, always, acceleration pull maybe I normally as just and than else marketing going to follow-up just there impressive Craig, should maybe that pretty about dollars margin or addition, forward need XQ how were a headcount you on the the curious, anything jumped or from beyond any quick was XQ marketing forward? just you sales bit And just mentioned maybe that sales, marketing? we we Was think maybe in to

and kind would of QX was QX XXXX But about we down. pretty talked that kind from last think to normal I campaigns of it's just of just QX of XXXX. spin I normal, yes, say slightly marketing I mean, No, what

those of this into pushed Some quarter.

Thank from you next question. Reback is line with Brad of The for question Stifel. the your

Your line is open. now

you verticals? you a do country? the on optimism? perspective unique GEOs Great. or Thanks Anything market, Chad, you're specifically have very pause that the Down [ph], economy seeing pretty market, across much. up gives

we I I think way. which no, us work. labor I people a a for on work little mean, just hire, do back bit home the market the wouldn't I ago, looking you're -- was if a to little it's would mean, bit Yes, look year say as easier at tighter say I would I more came from either from hiring, to at touted in the

there I tech some the think more side, talent companies have be more shed doing as top that, those and especially jobs. seem we of to very on attracting well

we're do seeing adding really I've on base within our clients focused as anything our to I definitely, call which proxy own sales is as a person, focusing of somewhat think clients. as economist. X% into not our definitely really have own kind on to look an being happens people, so, into then softening client future, out TAM client of as ourselves. look own from From to right the the don't hiring on our any accelerators I and well, much mean, It's, now but negative numbers base. the several with seeing I'm But to what I in for future tried for much of we're we a can

a technical the bit definitely little to talent side. especially easier seeing it's are We on hire,

Yes, client based I our base. mean, geographically say base, on diversified we industry. and very would both client have and a Brad, on And that's I

hearing So of some not out to overly things the that, those. you're there exposed we're

great. very Thanks That's much.

Thank you.

Thank you with the from Baird. question. is of The Marcon your for next question Mark line

Your line now is open.

extending the seeing bit the huge on Chad, the sales pipeline logos during income, the terms little basis? the base? afternoon, increases the we give in us on ended James, you go from positive. initiation if float and good Craig season, into for thinking Could think new upsells, forward how And out regards what and and the about the then which really strip revenue, is the congratulations With to what to Hey, quarter. of up a also up results, you employment existing a of of within on relative and you're you recurring a to strong selling ended in first seeing dividend, relative sense a like, I

would not the it's us, of in call the maybe employees for period decreases, that's up, impact to XX-month Yes, from mean to on us the that be employee back can't it don't it's a month that. the with going significant exception and then or had all some and/or six where other, what that a went then, fluctuations that adds, I COVID, say to -- since existing base about new really this I'm mean, had logo way increases have I employment down gains time, you leaving but going at on we an meaningful one really impact stabilization, I or

us we if anything don't them. I add over well. that's this added to for clients So in been Beti it's X,XXX really to have And new first quarter. logos, would going to know Craig

revenue. agree logo recurring I what's mean, driving with And the primarily No, I that's wins. Chad. it's new would

are for really you Great. see in regions of more you you in how And came out pickups And just And the traction? to what of do What real order this of to terms much have seeing productivity? force were club. some qualify club? sales to terms in are people starting

we place Club very Yes, that which had initial at Hawaii, it prior. in years President's our Club the was same that we XX had President's

I a year our to able actually the the about This continue sell mean, $X over we've to accelerate they continue numbers So one that club, the than sales sales talk sold can that that top in sales any from first rep million. past. we reps and now rep sell, have again, amount I was had more to and rookie

rookie we When selling city. we great now rep a been a have IPO that have for And would that.

continue develop up, more we a the to product, produces product, as we've And value. so more go so put -- we've to had continued it the into numbers

So for then, out back a we're at was in-person. these costs field, and to very to getting I that's than what think also it of of it landing getting it companies big present used too, we're the I it are for And leads face better And at because in get us out because face, a little that better we big back differentiator more think part we're make. to well decisions closing, marketing, we and have strong a course, to.

at year. that year, some I to already our another reps next what rep record close would last top are very expect to finished got we've broken as be

So numbers get that's is achieved always to as continuing we've which sales our stronger. performance how in,

question Schwartz Thank your Brian you with is question. for Oppenheimer. the The next from line of

line is open. now Your

and the in markets? capabilities multi-national that a strategy more targeting to afternoon, extend quarter. an Yes, solution? is the be I of capability nice, that I'll How hi, the Chad, of could of the a this the And the I future ask we in you to about think you international diluted new customers? to impact should see And strategy there terms business? fine if one year thanks other you, to for the the question Or reach on and you is, taking just overall margin, solution This wanted that wanted opportunity saw for this the then my announced ask can questions. along or accretive your to ask HCM is to real business. I global congratulate start it behind the solution whether

it's I willingness of can type own same. systems or employees I mean one whether people with there's about single I mean, And have I talk is, first the you. and multiple think fact on doing are the what like the The a database their they integrate is question, to employee, mean, payroll.

us to HCM global oftentimes it's for mean, that way issue system, the first so international And decisions about see scalability us groundwork market. really you'll I the an for with going never there's the been way and been laying up all market. in is up the the really buying of step

Well, product any a employees have they for they high system these in tolerance days, stage a use. of that don't complexity

missing, think thing to the I missing the have would to largest one going I product very say things. think to be thing there got companies be don't able longer. very very does complex I And been so work might we've that And simplified that one world. in much go a we And that with were we're

That said, work still I does mean, our well. system

having clients lot clients a have more. employees success have, definitely have up we a are of that lot market, that we're of and We XX,XXX

work system it willing our for use other much like around even to they We to have so that countries. clients were

to be other side, to have out Beti the on in HCM throughout this countries that Now, and we do planning they year. roll don't would

you. Thank

also the should wouldn't what current Yes, I order, mean, accretive our front, clients out call profile would similar same fairly that be on a margin it to we the it follow be are be doing. of very similar. I it costs terms relates the to this should but mean, it overall as just obviously, we'll some building have out, some in of R&D margins,

you. Thank

Thank you with for Reilly The Needham. question. from your of line is the next question Joshua

is Your line open. now

for there. taking my questions. Thanks Hi,

to when of payroll top presence? international an basis, the Beti native by build that a mean solutions international building with that does used you're sit is Beti on Or product to you you plan international global payroll here, going countries? on from On customers solutions the existing say

building out each Beti be would country. We in

are we that. to Okay, the would out better building say Beti be way

you so Okay, are these countries? a building some of payroll in native international

Correct.

it. Got

Okay. you've have that past, QX? And And accurate more then confidence spend think demand more spend in you your you're QX? said sequentially that than QX I demand. increased advertising that Is increasing seeing the in that from implies around

continue a demand. see Oftentimes I dollars to QX that mean elections, QX, others, what We bit and saw against advertise we depending on how running. little stronger cost. you sometimes demand strong Oftentimes, the competing strong be too. can can ads you many depending on ad than the in are

And to squeeze the to more lead there making but from method holidays, you we we're weekly. monitor our the how And work And we generation some have generate in so, advertising leads. didn't we sometimes moves it. the juice constantly spend monitor do

Thanks it. Got guys.

question. question is your The with for next line from the of Siti you Panigrahi Mizuho. Thank

line open. Your now is

any of in commit to pressure investment hearing under now, cautious businesses macro in of this kind in my small this kind terms keep Chad, Thanks you. for of right Thank we environment, environment. taking question. they're

customer So color are helpful? from be what Any hearing your would wondering, you base?

now landing would and is, now. of not focused say logos. lot hearing mean, part growth wouldn't I again, any had very we're I I Yes, new going than a COVID that past, right say business, we're we're having, mean, the I a period. the not clients in of exception from losses what we're different we seen of out seeing with that time the on

might to our about that derived from revenues then less top focused, fastest So where And derived our its And that, larger our continuing I range, the than probably growing companies we're XX than grow really of segment. of only have can't at companies we're it employees. XX% from call out again, X% it's much. of have end just obviously. be

something end. be saying And not call that on that we so, I'm It's we our things just down could have. It's couldn't the market. happening, from that not data out

this kind heard in other high. anything That's super for you a Craig. any compared X.X client also, pretty I this slowdown. that years, which we income of billion growth, was on float to color that's income contribution and I X% of phone year-over-year interest If terms should, helpful, Is think your there any And follow-up caused said, quarter? anything almost balance, that

that question, the days take the client, Craig income, can from but to the larger I'll let first perspective, less slope the on interest balance I hold you handle a the money.

clears So clients. quickly with that money very large

hold you to if month a quarter. which or what, for So business, you're might handling a small a on that

handling You're for on XX large hours. client, you're to that holding a about

there's clients. daily amounts, So out second Craig clearing larger quickly but handle larger a average bit, so little balance there part. with it's the it of -- your Then impacts I'll because you're the let

banks on the the then it's out last raises we have say the XX% mean, full longer-term. Fed don't income little on call Fed that's a part realizing I our And funds, around the I we're that bit the funds of you quarter those give of are some because And rate. amount client we in, investments layered would Yes, rates. interest as

we've quarter, I kind of said any. that's really wouldn't update what last that So

Great. Thank quarter. Great you.

Thank you.

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

open. now is line Your

for Levine on tonight. Jared Bryan actually It's

then a changes there In to employees, and revenue clients terms clients based XX Were plus XQ retention with of how on under notable those XQ with did 'XX. retention, compared employees? any XX

than said so was on have to and end XX%, BETI year than quarter-to-quarter, I last at year here BETI. our last Paycom the Yes, retention that provide BETI, rate the related nots have and of have the we was we retention of call, that each better fluctuates at anybody kind had

use a ROI to the more strong, that's right clients way as available maximum remain larger product our as a percentage, expect even the to I -- achieve to increase them. and retention the So as increase

in not quarter. from to for lower past quarter said for the also yes of oftentimes our starts especially it retention, But off I've for the first first of typically, any of regardless of competitors, typically, the to throughout quarter, year companies increase but because will, clients we've would in call the and if quarter, the fourth in to out nothing less leave very you say year, that, continues clients comparing use the last But the usually stable. BETI larger that been I'm just better. this do retentions first first especially I And

then your Got XQ, weight what this my there's margin then expense line expectation And it. looking And specifically follow-up, year? margin that is fiscal on adjusted gross for item? what adjusted gross we're within at operating that

gross to Yes, add typically, XX% guide a adjusted XX%, gets too I and very been the be stable hiring. margin. mean, the last it I we high, few mean it's I we over may didn't to behind bit mean years, if on little

that fluctuates trends the based that's new on hiring that have can those we ready bringing capture trained because those business and them handling it would some ahead and that we're of creep revenue hire be the clients. to our growth. it so individuals to how way what And they on to up the usually up are, cause and bringing on, are were And

Great, thank you.

Celino of KeyBanc. question. with is The your from next for you line Jason Thank the question

open. now is Your line

been it it thanks in Hey, for working on for yet, maybe the weeks some HCM why now? you two for Chad, that first, questions. the just taking you've you developed Global years. ago, wait just press Since mentioned release can product why doesn't had the a for of until those or guys on about my move you talk not timing BETI few include countries

to do it first we I HCM demand client have question, clients to going first have in first. you're have very have with but right in our right are now as things for that system we is have other or mentioned Raimo's countries Well, now. have that employees storing We're Sure. they to going to Global a

in And somewhat system. rig the

you time first. BETI, to it's first you off. it's time and to demand we things for you connected, And have have paid have right you I have management, have to HCM. to with attendance, now payroll mean, So only, not expense have have have have everything's like

products there have only, following we're to the with wouldn't that out these have you kind payroll international the we're other just was quite for I that think think an using how they're to clients. it so think we developing to win. now produces I expect and that BETI, BETI, and developing it for I our to ROI competition looked to work, unimpressive internationally strategy I at So internationally, say we mean And BETI used and honestly, BETI going the within of that's what I system process clients does are us

right So demand that would itself but in we're say product for now. it's the doing beginning what have of foundation I also we for

know how of have already, that's there is any are to yes, some many you And Okay, but fair. your customers or mentioned have of onto your systems way offices? international your customers kind employees of how [indiscernible]

larger cases. larger It's our our many clients would be it those in clients, of

there, not base the just of opportunities out for time, mean there the this revenue I size course, to going give companies a specific we over out increase look will our that's but when you of that then at So prospect number, And them. prospect.

Thanks lot. great. Okay, a

Thank you.

Arvind question. next for The your line question Piper Thank from is you Ramnani the of Sandler. with

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Hi, have from thanks rates any players? players. or you win some you legacy the some seen historically ask change benefit question. sort just you are legacy see competitive of the sort wanted kind from the for the churn of And about to I of that taking kind dynamics and my of of of seeing

to think dramatically. when of we've even BETI old hard better go we've were bunch I at our I at standpoint think some force. and very all we it, teach dog our market from changes took started of mean somewhat I value July we call in we how wouldn't lot it actually was a much Yes, first anybody gotten When tricks, selling I sales. in particular, made it our And sales to XXXX, And we we're stronger. of XXXX, was new selling a with released it, proposition getting virtual started it learning, we BETI,

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you and lot impact get AI. Paycom within sort world, a perspective even of a Do think certainly pressure kind company? to yet specifically, and the susceptible ChatGPT? not either of your there's is Terrific, conversation or space. change of ChatGPT relevant Do sort with your from of some to your you just space space to kind of the or HCM to of but kind technology And this that's to to think wanted expected it's

relevant. No, be I it'll definitely think

that client use for the use may things it there that things. that never are direct You client, for, see. use it than back better areas end for are can use There AI can to end for you you that you are are multiple There can it things, can others. front a

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very thank Terrific, you much.

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our taking questions, for guys. Thanks Great.

was been that able layoffs. mentioned of hiring the was tech But also some the as people or coming of up to developer on kind The like to first from tech have being R&D maybe sales and way more up maybe larger that whether been talent on one is it sounded well. you've the you the the Chad, hoover side. of I additional able maybe curious along pick some

than have what people because oftentimes out look outside well that R&D, do for Yes, education I We two our that writing with years take and people always requirements careers, I you. we what less position. typically for a changing technology that's have experience mean, have experience. -- hire we sales called code have you, salespeople, specific we've with that do We side

jobs. time it get a And say what sales a salesperson is a bit that so, a because you you was if or mean, I there side would had to hire But down that's were that on us look for slowed say necessarily a for little yet to has you decision, getting to two they offers, I had, I while. make changed more XX quite bit. the were a interviewing you difficult wouldn't today, week

So hire I we interview were take process you're you more to time, able than bit very salespeople. a to say time little to in during the would able what compressed were do when

I'd sales we're technology, we're seeing say because seeing on called some I just I the changed it. out We're that's But side. just it.

Right.

Okay. All of rollout. great. right. That's One just payroll quick BETI on the follow-up, Cool. like mechanics the

going at to to So time you're a a work? there, XXX with the is going for a that you is, like, BETI rollout XXX we're different releases roll how press mechanically, out countries just one block see block all here, that like Global But in countries HCM? country do

There's about represent XX% XX XX of opportunity. to well countries about over that the

at you build expect rolling but ourselves. would I I over time, things look it, be out those mean us yes, as first So, we to

continue to to expect them so is are XX And out. to there going that countries I XX be would roll us first. to But

All right. Thank okay. Yes, you. Great.

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or flow or it some EPS be the on other Would then you like cash of how about forward? percent just do And seemed it. Got GAAP free dividends, think going metric? as it

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fit would future. look the $XX in as as at we that but and adjust it then we So, see that

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want the thank to today. joining I everyone call for

to a to continue and great in put great XXXX. efforts off start Paycom position, in we're a employees Our

team. So thank Paycom the you to

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