Paycom Software (PAYC) 1 May 242024 Q1 Earnings call transcript

Good afternoon. My name is Terry, and I will be your conference operator today. At this time, I would like to welcome everyone to Paycom's First Quarter 2024 Financial Results Conference Call. [Operator Instructions]

I will now turn the call over to James Samford, Head of Investor Relations.

begin. now may You

welcome of earnings XXXX. and the call first quarter to you, conference Paycom's for Thank

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

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

to factors on should when and information. You these relying consider forward-looking such refer

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

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

and President. over to call Richison, Chad? turn Co-CEO Paycom's now the I'll Chad

trends I'll highlights it our joining the quarter, everyone then and then from kick client Chris off and few turn with James, Thanks, call recent awards. thank questions. will and to financials review to discuss Craig before I'll our our and guidance to the taking a over call you today.

users allowing cost their their time redundant to centers value in HR around and product work, day eliminating vision to recoup Our to eliminating add valuable organizations.

simplifies which and client they differentiator integration their problems. own is another In Paycom, costs, addition employees solution. input before data key directly and fixing HCM reduces payroll, the do their experience errors validate employees database, become our to Paycom into our With single that

quarters last solution On and in in the released solution more automation in than tremendous key our focus Beti, highlighted first achievement X quarter by we clients. our automation, our opportunities to XXXX: continue call, service. enhancements X areas initiatives combined. ROI Led world-class for client generate previous product the We

and and over take implementing process that the solution, logic AI are us XX activities recent more X process new A complete told With to prior days our Beti, leveraging across adding nonrevenue-generating they client payroll. value Beti, only minutes. it for to decisioning clients. We eliminating in our mundane would

savings and also automated or better decisioning This With decisioning, activities. managers both scheduling. GONE, the efficiencies deny our time-off employees. time-off approve, leverages and focus experience across time value-added product workforce delivers is employees to and We've automatically allowing on by logic for a country time-off management requests for warehouse to

front, achievement marketplace. ROI client our with more businesses and resonating client with Beti the and in ROI On results is in increased more success the

more are Our ROI, receive road value. focused even to clients map we industry-leading drive already accelerating product and on our

their company Now client much users. base and runs across employees tell when payroll, is shared with I know regularly Beti, their of own this do smoother clients their the Beti sentiment us that

is clients done, and payroll us right. We our the are are telling we're way changing

their might close respective they seeing the help and stand between be any gaps ROI service they On available front, today. to world-class are we live total clients where and where they meeting identify

incredible their want I with our strengthening employees relationships front. efforts is on It service to this and value and are achievement, thank We for client working. our

Our own offering go-to-market doing with and our significant the the Paycom. benefits nature your of continues strategy payroll to differentiated of emphasize

more our getting leads, for are seeing Beti, thanks We to solid and we solution. are demand

to we that sell new new incentive business. sell recent over entry celebrated other first our trip, in $X our that annual complex value proposition unique that require We rep annual the sales million to rep recognized manual million the in from $X in sales believe It activities. ago us and disparate long sales business. first the our separates offerings At integrations we wasn't market

a to make as released the native and are announce United our we international payroll Mexico global developed product year and companies already Paycom XXXX, international we we XXXX than since In solution in our Kingdom. the to as native we seeing are announced Ireland. payroll in pleased our to Today, build in presence we international announced have when global journey, the an look are U.S.-based continue HCM provider. of that less Canada, meaningful and front, We a early achieved and progress launching on the on we with we momentum launch

all I'm on strategy see is our international the early, paying that still to While pleased work off.

and a thanks proof process for to and our win In client our international payroll This international offering. HCM fact, represents sports with we another multiple in multicountry will Beti organization, payroll recently this point countries, strategy. large won

to still on a for focused addressable is highly market. be to Paycom, an growth, the we total U.S. only want of have X% sure our that estimated remain as win great note While I this we

are seeing. up, initiatives, I'm we with we making on strategic forward progress sum I on To and our look the are building momentum to pleased the

over call the turn me let to Chris. that, With

Chad. Thanks,

together relations our closely more with data. of to continues client employees interact directly drive Usage and their system clients. work our increase very value to for as service to group Our continue

base score DDX across average XX% Our above is to rise continues and our today. client

strategy model. bolster technology and service key innovative world-class ROI our Our are of drivers and achievement our client satisfaction

pleased strength In with fact, awards very relationship the receive clients. to we were our highlight several that of our

continue businesses Group. receive recognition industry. further drive a also for our award as recognized our service stronger. see while winner our the base. positive one We organization who Service awards get by an XXXX America of standards highlights our impact the with to It's ability the our showcases to Business Customer by to year. were trustworthy are are in our dedicated hard clients we relationships of recently, client making redefining were in on for companies pleased focus third most client named These This even their service that gratifying Excellence clients. testament in achievement our across to from work consecutive and ROI model. Most Intelligence This to I'm Newsweek Award the

second grateful to Gallup the and Workplace global culture. we're recognized leaders among for workplace the consecutive earned year, Award Exceptional we be Finally, in

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

Thanks, Chris.

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

First prior up was total and comparable Within year $XXX quarter period. for revenue period. revenue over year the million quarter growing comparable total the XX% of first XXXX, was revenues recurring XX% $XXX of from representing million revenues, prior quarter the XX% the of for

adjusted with a onetime of Included $XXX million results related benefit income the of award. EBITDA and diluted GAAP strong based our stock is $X.XX per the on $XXX approximately the or XXXX of in GAAP of million, shares. CEO in noncash net delivered share net We first forfeiture compensation income million quarter XXXX XX performance to

Non-GAAP was for $XXX per diluted net the share. first income quarter $X.XX million,, or

XX.X% expected, better EBITDA due quarter margin than of $XXX primarily nearly of and was revenue higher adjusted million First the discipline for quarter. and expense represented a to

quarter, per mid-June. in And XXXX. March approximately We During under share buyback approved payable authorization dividend in XX, paid cash as first still the week, $XX have $X.XXX over Board we million of million the earlier of quarterly next $XXX our remaining dividends. our this

XXXX, first compared $XX the total was million the X% of in of quarter the $XX quarter XXXX including were costs, first to period. portion, expense million R&D in $XX year of R&D million total prior Adjusted the capitalized revenues. Adjusted in or

in automation, areas and of our We continue international. AI invest future to in long-term growth

of Our the quarter. of for performance was award a CEO the reflecting XX% XXXX basis, XXXX tax forfeiture the the on during the rate first benefit quarter GAAP of

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

Quarterly related to fluctuations vesting in due the are our generally timing effective compensation rates tax tax effects. stock of and

million compensation to expense XXXX, the $XX approximately quarter. be remainder For per expect we stock-based of

$X.X billion funds with XXXX, behalf Turning million ended cash and the We of average up quarter to daily of first the of a cash year-over-year. no balance The debt. very balance balance the on first approximately $XXX equivalents X% including was sheet. clients held sheet, and quarter of in strong

front, into service expenditure fifth our placed capital City is in quarter. second building Oklahoma be the substantially the and in will On complete

While continue we estimate to be of percentage in a expect total CapEx percent XXXX, revenues in also XXXX. as XX% decline to to approximately beginning we that

turn me guidance. let Now to

approximately the guidance we billion, billion XX% XXXX, at revenue with growth are midpoint fiscal $X.XXX and For to or range in year-over-year revenue be $X.XXX maintaining the our to ranges range. of EBITDA adjusted expected the of

on range. see in be $XXX of the representing the XX% We to to strategic responses beginning approximately at place the year margin of the of we adjusted expect and put our with EBITDA in range the the million to of an are adjusted at positive EBITDA $XXX million, from midpoint year initiatives. plan full remain track beginning We

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

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

building We continue on our momentum. executing to on and plan focus our efforts

an proposition foundation differentiated We to build solid have product, a and upon. industry-leading a value

will With for questions. the open Operator? that, line we

line the [Operator Instructions] Your Raimo from comes first of Lenschow of question Barclays.

quick you Chris. you, Two for for One and of two the or Chad questions.

Just -- that about, compare all, the -- be it relate you? you first hiring, it like in kind little to see If to kind the you can you're specific. cetera? or frame what's the market of you you demand, what think less a does of to with end talking bit from what's there? headwinds of in are how it does strategic new Maybe can going them versus going et you what in what frame then compare about initiatives doing terms -- also the on And in of on how market more

is for you? Or helping Craig. follow-up how this see might model? or speak my year? into you rate the less it kind Can you does from then of the benefits cuts And benefits extra that question to Is play

Sure.

take I'll So first one, Raimo. the

you to as value have clients called the or ROI And they're strategic achieving to strategy with sure that client do it, so our and our the making them software. of throughout working live that's full available they the really the initiatives year usage value appropriate of through achievement we're that meeting where

And call so in we really reported, that. we've been we when call actually, on to we're that focused that did focused going October be that. out We on XX, did out

these to to to able be All up in utilizing of efforts the client already our full that's again, base. achieve say we've out in those drive continue for initiatives going improvements have help that many they're And because really implemented. additional of to set we are products do clients value to retention, and can correctly I'm current clients once regards that in to them product

From perspective, what as there. the our we on have a move And as focused unchanged those focus year been client throughout as initiatives. our base is far sales new we're

cuts, day we there on many how thought. Raimo, originally as it like And the but may to Sure. seems might I every less than mean, there that changes rate be be, had obviously,

you at you is rates. we're that X towards higher of you're extend the of if those a to trading try off those -- taking And funds. some But cuts when of end some thing looking the X is that do that. do one that, benefit or do of year. the rate we duration Effectively, So the also you're

of kind funds. strategically we're So those what looking that's with at

comes Jefferies. from question Samana next Samad from Your

This Samad. is for Mason Marion on

So and of you elaborate looking guidance, you you're at in assumptions -- seeing on that perspective your what and for from your the those a new have bookings can how guidance? kind churn

Samad. like exactly sound You

POB assumption. the is can you -- question that trying can maybe -- So churn, say bookings again? you to I'm new What

XQ new your of just you're back better a for what assumptions around to the to I'm from what trying churn maybe the year in understand bookings think perspective, you factoring perspective? from and half a

our that we impact seeing set we are but through to that's are how we're initiatives mean that that. Retention is value Yes, and of we out achievement have at perspective, from working. year, of new end about call feel working bookings stability. the improvement I a something on that, client in our good all the an

of Your next question comes from Baird. Mark Marcon

Chad, seeing I was of a sales performance just in little bit variance, the of you about terms if what across talk wondering could offices. various terms in you're

that But we've little mention that got hand, deceleration on that quota million, growth over revenue the strong. and you've did to You a $X a carrier so regards very had with obviously bit seems other achieved of the one rate.

I'm about obviously just when have the what so market? are made There is have in your difficult And regards sales you wondering perspective that. How they with get I'm some much sales? been And to out more new what seeing investors some been changes mid-market. in is asking it to wondering, talk there, that saturation leaders, you your and the to

Yes.

And our XX going there couple XX, best of And people. and have geography. managers for I to would that are a been Tulsa We've so city offices for I years, the guess, regardless mean, a XXX,XXX I city say, was in best first, #X, it's of of I years. think

to best best have your manager. is office So going your

all mid-market. perspective, -- had the time. no, players I a the saturation We're of no market. same saturation period as very long a there's that's such in thing competitive From for mean in the you've

addressable us. have of market available We about the X% to total

and And wouldn't from an appropriate perspective. a say appropriate appropriate from management, leadership. It so no, it's I training saturation comes

that better year, year and the we to at this bad, X gone months from first first say this just at not product. say to if months out call of are better year last as and and how And months the look gotten of we were we've we the accelerated better sales perspective. that can better a getting that's bookings And through that having move are you we've X the it's X versus

a doing Is to typically there commissions? you the talk And Beti? that That's new little a bit with sales you're stand do the great. about within are How what have have group the Beti base? upsells? structuring the And can internal where with still clients regards existing does penetration you that mandate to you client

Yes.

as clients change value move they system from positive no that is from Selling forward. the CRR significant a what focus we groups been been making and as the they've already there's with value achieving they've for what today, that. additional we sure they're strategy. purchased done So them them. using are impacts that, client job products, before the Again, are They've the good far have us There's doing. meeting no with the but full seeing of where their making change impacts receiving

from line comes Oppenheimer. the question of next Schwartz Brian Your of

of of about to offices second Brian half sales this around for This XXXX? do is sales is of number My like And Camden Levy carrying How or early question the the in sitting any capacity guys sales you feel Schwartz. capacity. plans there year increase the quota are the business? in

additionally, in you provide how the pipeline commentary but qualitatively building? momentum, just then had anything is I regarding guys that's know the about guys pipeline XXXX? about any how stability, you just mentioned can there building And other is thinking

Yes.

first So capacity. around sales

we office to successful, a with salespeople we sales them managers. an as who territory and be because, open would capacity perspective. months last are numbers, sales new lot opening would X say, be say exactly them know, ready from a to that offices more improved, be would to additional or too manager current It you take have to a the we Our that's backfill X when then up gotten over relocate I up again, early

-- And upon additional we are quick quick able up are open doing to we so able backfill how how offices is to really we're and dependent how that bench there.

are all pipeline. success levels. And we've focus are so of had now on top that's key XXXX. performing that a building we've is for sure Commentary have very those going to we XX also teams have that out, and at that making throughout but strong. us it's sales continued And right Pipelines

of of Reilly line comes Needham. question Joshua next from Your the

us correlated be that your the year factors job how the leading there? give you for maybe expectations year? switching revenue remind sense us Can versus that revenue is any into preemployment considering trending the to how to we stream relative services a And is other should

have are bring is as well on Our that. would saying to not going if a unemployment client increased obviously. say They're that then trends. -- that clients I if they're saying did set hire increased seeing services new stable, the you would work I just to we're if this, -- they're current way categorize they the I'm would turnover, do those, of somewhat -- be They've going background company for especially new you up stable. to then have checks, been I mean reflection have Yes, as I'm the a

during we're happening to product. that call have don't it's so additional to bit the times was out a have than don't clients more there we to any an you period in We significant would out maybe others employees is of what leaving going see what call been and to like any that than time that more a COVID, past. today. anything But Again, seeing from little in of

implies a a Can growth expecting. sense were the in confidence in reaccelerating second Got a it. gives little the than maybe us a half? follow-up. growth what visibility you half revenue quick of And just revenue previously or then to we just what more The you guidance second reacceleration give that of

Yes.

loaded. front-end So a fourth talked really we last and about initiatives of that we had were the quarter and lot November

some the is would half more reacceleration a then year. in once really front-end and we expect through see going we back that's those, guide, we of the the QX those into were we saw would get loaded of what so And even

next comes the of Your line question from Enders Steve of Citi.

little maybe maybe a has guess like bit a here. staying seems months couple would or with sales better dig improved in performance of little guess, maybe I environments I have guess And months. Great. to the more. little Okay. the at guide a first I rate better It couple expected than bit of of least guide into bit past a higher,

some shoots assumptions? is been I kind like of think change So that? maybe through the guess, guide of green versus me of kind has the why impact in help maybe any there Or that would maintained

our we gave included mean, given I for guidance we've for mean, going this it first had -- Yes. we guidance we XXXX, about do. I -- were I to mean the time, what talked

think I XX it was last October year. of

designed And were for so up included time the organic us guidance our XXXX. many that to at initiatives set that

And disciplines so with we've been those lines. sticking time and

the And the of loaded at the it work as back-end mean, well this groups that and would client be as that many year the the we've even both achievement said, CRRs I because are performing. strategies other value of beginning

we're are ROI the them the that. achieve focused to largest as maintaining so help we've the impact so make base going And greatest been client what on into And we we go we on go to on focused believe any forward. quarter, can

to even they're even them, before utilizing many we've it. get product sure to make sell in strategies the clients implemented a build We product make a And said several additional before sure that and before able client and times we to cases, another achieve them even in ROI to I've use actually easier will product it and many sell to it. we lot we a them. utilize though are value client it's to build them that want full sold an we've

they as initiatives these for but up delayed are that well. have those revenue some so things us, for set certain us And opportunities

focus client of the that that so us to bring on we journey. been And every so the meet living for to continue where through and they're can help them important really that's Paycom rest

I Okay. ask That's guess, to just one here, it helpful. to Maybe slip in another differently. maybe

maybe they than versus days the we some are guess ago, underlying like XX today think how I today Just assumptions different if were about of guide the before?

not. changed. not They're They're

of of Your McVeigh UBS. from comes question next the line Kevin

it you if know I call. Great. don't the on said

stock quarter? did, you did you I in the back How If buy missed much it.

call amount, a it call. $X like didn't on think out We was It Yes. the small I million.

$X million.

great. that balance the margins year? seems Okay, about or better just possible, of overperformed. Was over you being certain function if not we to And And that, a the then maybe expense folks management? able think the how hire really wanted of to like should it

to I for would efficiencies. the model EBITDA say I the yes, look the year EBITDA I continue expense right management mean given full quarter. better now, margins. adjusted XX% we've guidance. adjusted like we're mean throughout We'll for

still at efficiencies. so And additional looking and best-in-class

question of comes Zukin the of from next Wolfe Research. Your Alex line

It's Ryan Krieger on for Alex.

So again. to just margins first one, touch on

talked this bit previously about of incremental investment potential room of kind little for leaving a You year.

curious that give were be of priorities So for? And how earmarked investment are on performing quick now? the a seeing the can the cohorts customer on I'm could are then that you just just update down-market you cohorts, what us and top that, attrition kind upmarket quarter optionality last

Yes.

we cost the So to we've area side, quarter. R&D of the announced aggressively mean, on spend as this the I Ireland obviously, continued launch in

one that's on marketing then sales that heavily and be continuing we're that side And the pull marketing. or can the sales would levers spend of the So -- the some to obviously, on. you one area

the quarter our that rate. the got that represents on small attrition -- in out I other had impact customer which we out updating -- retention, today and don't the call business did say, group, that, overall again, XXXX retention when any We're last we our the a standpoint, X.X% reported retention calling from into we And rate to really not business of than revenue-ish. small

traditional just of don't but about see I'm would that know our talking that portion business And of necessarily the ways impacts -- anything small the have again, business, would and you the I changed with small attrition. So they're revenue.

Siti line Panigrahi of Mizuho. from comes the question next Your of

What heavily on? maybe can them? I it like It's you're guys we Phil hear ask, are to that more some you key the into about to several wanted features enhancements. And are working for Siti. just on when sounds investing product

Yes.

out what and/or perspective, important, very continue it's we've mean, roll quarter, I did done market. we that's on and disclose an We really don't success people in GONE I year. of around things several this out product rolling developing to put lot automation From That's got fourth throughout that. the out and we're having we've in wins. believe we're But and we actually So automation. a until what

I mean system, mean, any to think implement I do mean it's office if data and they because they the it's a XXXX. inputs the run to stoplight And wants would company that buy a money crazy. payroll department whereby or every do payroll, I care throwing liability. company that, to might as out don't well their imports about drive to window and the

to something, what's do the me, how automation. and way value. actually mean important. That's all going achieve to same you I That's consistency it's

And out over I did and there. put quarters accelerating quarter call than out on so call we product. what that did more from combined, in just that's we're the product this doing we're X the we had previous

impact. I in be to really because you're time we've technology today and make of the been And exciting forefront to able that, we're an it. accelerating utilize an is believe product to it So at

from comes Levine Cowen. TD Jared next of of Your line question the

we My the annual to revenue recorded form first growth filings XQ? the revenue sequential in think question, about from XQ headwind how should

any there wouldn't be QX. There headwinds into

QX... in Not the

is versus that sequential Oh, sequential drop. that don't I year, drop, I know have... if Sequential I that, they last drop -- don't mean, know

[indiscernible].

Yes.

And there. factored could with in outlook. line forms we're we'll the our comment into drop, then it's we far expectations. probably And as Obviously, filings, as on see as sequential

our percent for to called percent the the that time added is quarter X, thing really was anything we same form. going to But the it lower We ACA of we've the and revenue last the substantially in products would and filing. it's and service services. the forms year-end out added X have forms over that over your of represent lower I added have, that be we additional because to But filings would it additional Yes. years XXXX, been time, haven't that mean types. one

exact that, services XXXX. since But other the been than same it's

dropped, revenue the products because it's that additional for less, us can charging larger and a other in percentage percentage back. of down the now represented over services quarter or first it going percentage revenue so a way during And of because time, but we're that has And larger that for go then represent just fees, quarter. the not

my considering something towards or in And follow-up, PEPM-based any why the future? cannot that anticipate as considered reason for And this pricing payroll? Okay. then you you've you shift is

We looking in know to that. don't competitive pricing that listening call, that's regard now. that's we're on know looking is sales deal. to situations. win say have to the we're they this in win and initiatives All to right every mode organization every I our to specific comment And I We're deal.

And includes so that that that. into all the go would initiatives

So with just stop that. would I

Jason Your KeyBanc Markets. comes question Capital of next from the line of Celino

weakness you're there? verticals in Jason for I any strength Great. And environment. particular seeing This on Meehan seeing you're quickly Zane markets? specific any to or is wanted Celino. ask about or competitive the changes end maybe Any notable

them to what's do been when it it's being market. there. I ours the always. say leverage health time care and said most out always really this, and their to like I've else differentiating competitive employee financial And I utilize impacts No. ROI, any about individually been been I've to that the there's the happening hours there's it ones it's base automation strategies about I the And asked think that situation that I and in able and competitive because mean wouldn't change insurance they're most. to check everything comes which been competitive. and their

been every them that that. able think we We've could been extent, around into on toward made I leaning that To some shift move shift. that. that And to as that. better. that we've client we've We've So to our that messaging leverage been as course corrected have made work we with

even back-end a at that's many they work get and hire why I the correct can go-to-market of do are us. From this mean calling then though, to people how companies clients, point and perspective they all.

product new And client since deployed have then deploying brought we've success lot it announced well. goes been of it Every on, more have with that that do GONE. and and so trusting products People as we the had are companies that more, suite the around Beti XXXX, And July Beti. more a well both of best and we've client more as as they've of as process. now

I And has mean just requests the approved are U.S., already on a taken them been of been is PTO paid. after that in the all managing of It's the over XX% amount PTO of spend and XX% in company PTO paid. incredible. managers already time

to leaves. XX So managing aren't it when you someone pay it. people out And require states

so clients And ROI we display that important currently our that's able meet and everywhere, at to sales be that one I'm saying there's just throughout our where category, to and but available is it's calls. them what they're

We've that sales re-enhance as better programs to strategies go-to-market -- training our well continued and our generation. as and gotten as better lead we've at training

question the of comes from Deutsche Bank. of next Bhavin Shah line Your

two for me. And

first just go-to-market Amy talk Head the should Walker changes as of Sales we [ just just, the you quarter. the any Can expect The can years? that you one, ]? the to the beginning quarters And over elaborate at maybe coming Chad, of the about promotion strategy on of or season

all late over long promoted -- Yes. that. our of mean to I strategy. go-to-market Amy in We she changed not sales Amy run then and running took November, over got outside was sales

which say of strategies, to And of strategies, shift, wouldn't started the enhancing, represents majority our sales. sales I say. in the group, our would shifting would go-to-market say our outside regards so we I overwhelming I go-to-market enhancing all especially

impact dramatic week week a that that. with had continue And to she's on so we after group. And improve

even that less help you And guys that runs Craig, -- some success it. your through revenue the to maybe headwinds other or paper talked about whether due revenue? Beti can kind are some strategic today I then clients you it's quantify mean, that for let's initiatives of just from the control impacting measures seeing you Got payroll of of are

I client. mean the about that's making some what eliminating clients for less better for because Beti. for And the end, In for Beti situation that's more mean efficient a really client. that. a some mean was process client, of is it of we I the I better talked those in runs better of the

first And most of year. back see of starting start going going impact. a we're So year, those won't the of of those through to that to we we to to those. are are run large the as the out And towards -- would that call then lot half -- this half an of see we

we're as to how utilization with in clients of Beti. our well of current a to that lot And regards corresponds working

final today of question comes Jester from Daniel Our BMO.

like Great. some couple easiest least workflows? the Maybe of there of when sort to automation for your the times. is innovation and product? come in today, where up there's you ROI where customer of I to revisit you the a look that at Is guess R&D sense the automation and theme kind additional the any offer base in of came in

AI, turn It and It automate items appropriate configuration. change There some ability are we client you management takes can of because prove because go takes it that were before. a that full when is again they've you multiple that different our it to of places done giving in some really what over product level and before. out. than you so to many have trust have control client's mind steps a takes are It to up

can are you And out. with that certain so clients ways prove work and that there help

all working time our that. now opportunities right the the model we're everywhere. And I we've And I focused everywhere. been that. accelerate answer innovation. it's oyster in world's it. to it's question, to product we've and on that, your over leader been in working the always believe product to having and we've an so I've doing same been been perspective. regards mean continue in And exciting development new in from to that especially And we a what's in have now

joined before X sort as the know Okay. of Ireland to share more can this you what you're amount you I Or is that a that And think opportunity? I you've but bit But of can I us that now. earlier, thus about has see gone you've far gotten? the us more of globalization is little of global? able to you'll any threshold there been late. then help brand-new, about certain apologize on of you be need think context Paycom, uptake Is with some sort a if Great. in quantify that there countries payroll sort I up the way penetration a came And from perspective

Sure.

And so separating two things.

native from I developments payroll the want our First, would done. we've HCM separate global product that to

globally HCM are So from are the a product. on HR system, clients utilizing that product running but global our have using value HCM getting our through the side that by product perspective, global not through international system we that they're payroll side HCM of our

that, Mexico, maybe. that put of Ireland. U.K. countries utilizing to Canada, native the Beti of now, clients and want have and July last we Canada, regards I the I out in have say, that the believe year we've to in Now are you payroll also

say And first couple didn't And a out you tell would start one that well months, easiest. ones very completed can I I hard done. there's so the there, with X more. that of we've We inside of And still XX the that. was we've

largest countries, -- areas of look to our are available over We have the represent believe of look us. And XX opportunity as are if then at look you to we we the believe developing number whole, a able XX-or-so that XX% around of I where clients from U.S.-based at kind internationally, the employees. it's actually it we really

we've so focus those. on And continued to

closing Thank of I remarks. call. back Chad today's concludes to Mr. for will question-and-answer the call Richison turn you. portion the This now

thank All set right. anniversary to and acknowledge as our and us traded innovation today. contributed decade success celebrate for do our all of call up I publicly to have and Well, joining growth. XXth next who employees a company. I thank to for want the our want you

to in many in forward be soon. XX June Conference months, the the New Needham Conference attending York May presenting engaging at and Over next XX, X. Baird May Newport New on Jefferies we'll with the again the you of of on We York Conference on look couple in

end all. Thank Operator, you may call. you the

Thank concludes today's conference you. call. This

disconnect. now may You