Paycom Software (PAYC) 31 Jul 242024 Q2 Earnings call transcript

Good afternoon, and thank you for attending the Paycom Software Second Quarter 2024 Quarterly Results Conference Call. My name is Cameron, and I will be your moderator for today. [Operator Instructions]

I would now like to pass the conference over to your host, James Samford, Head of Investor Relations.

You may proceed.

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

are any materially and are believe we statements on reasonable, because forward-looking differ results may uncertainties. on expectations call While current statements this actual risks the and based the to made subject

in These filings XX-K. risks and uncertainties are recent on the discussed most including Form annual report our our SEC, with

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

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

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

client-focused year, we and to our I'll who my on on I'll progress automation pleased joining deepening are client world-class everyone our turn making it questions. This our guidance XXXX thank innovation. client remain resonating are achievement review comments initiatives, through Thanks, clients, our we then as solidifying you to capabilities we on very they James, on will and with initiatives taking progress our across the making today. before focus are financials service Craig, our the over these ROI call base. to providing product focused and I'm and

result As metrics Score usage our and positively. are initiatives, our Promoter and up client trending a Net of our

pleased the achievements I'm on with our front. very product that, Beyond

lead automation. We industry the to continue in

consistently confirm this clients Our view.

eclipse development with automation. greater solutions rapidly even processes XXXX We continue to to even solution made as transform to move our enabled end we the functionality enhancements our automation at full we The us towards of faster. our

through redundant Year-to-date, our implemented rates HR and than work we employee usage. for payroll doubled productivity development automation and that clients functionality more and eliminates have our

the better our industry are experience. fundamentally differentiated We results rapidly eclipsing value by employee in ultimately which a for delivering a clients, proposition

We to industry. automate are the focused continuing in most automated the on solution

directly our Two checks millions processed ROI solution. delivering examples automation industry measurable are Every month, are of employees Beti Beti, this of through clients' using GONE. in and our by unique truly

increased with continues solve to process and days decisioning. that as and Beti merely we to complex X to took And roughly functionality going connections is years. own recently their half, example from existing for to client a been Beti. a who adopted has an payroll, Since their us add we prospective hours Beti are before do One more payroll evolve inquiries the team bar that company This raise employees allowing their reduced is they seeing X,XXX-employee with from by clients. X Beti. inbound

for decisioning automatically use everyone unless logic organization deny recognized solution, a transforming as to the an for award a first and highly warehouse decisions employee leverages disparate within complex, automated winner It time-off process. fully was time-off GONE, approve, traditionally GONE. you solutions recently Globee industry's are or time-off requests. the connects Time-off hassle

and have to decision immediate and driving requests. scheduling payroll benefits to verify productivity increased time and visibility. significantly The increased costs. liabilities resource no back down improved liability. get operations C-suite confidence HR employees and in GONE decisions, reducing from and GONE, and And gain management, reduces longer after-the-fact to managers Thanks related managers track and

a managers time-off unique client manager and ensure The rules differently. client appropriate of each stores store their each per control have over coverage. in GONE enabled where XXX requests retail We to built with control was

eliminated across need these to follow-ups. payroll, decisions businesses has requests payroll up for excited time-off direct Now automated stated, the GONE very is of payroll client managers hours and globe. for longer team no Since all Beti action the time. to GONE to implementing level. over about and time-off on next prepping I'm Their streamline nonproductive request, take bringing when GONE, the manager ability this the need they've to X,XXX the its

fatigue Through helping organizations. HR across decision C-suite better and to entire our the employees. to retention in are turn all we the engagement from solution from creates eliminate and This clients for employee managers organization, automation,

in the technology. today's meeting once of to are want expectation don't experienced We employees. Paycom, And they've backwards go they

both are returning and they deployed. and buyers furthering are our and are as win, we that the the disparate solutions fact, automation in At more of user end the we the lacking day, and will more competitor product is seeing clients product In missing had advantage. antiquated employees best

our clients. ROI, leverage approach solution our automation deliver functionality continue to value to continue wide We stronger and within even for areas variety our a toward across organization. believe will of AI AI We full

in the geographies Ireland for make Mexico, meaningful On U.K. available employees in we now last Beti the continue months. in we is progress and the front, to Canada, rolled the international XX that out

continue domestic our payroll. employees, foreign our We in win our product to international and and with clients HCM investments to thanks new native global

we are the side, On seeing strong momentum. sales

sold are last more than did the we've earlier Our than we and deals winning reps year. same outside units more significantly before, time XXXX in ever sales new

across the company of enthusiasm our added the And our the reps year. heading half Just excited across this our XX month, we reps, sales placing division we the energized. is of sales sales into in week sales the in I'm had top last week, largest class history. new country. field about Sales back

with XXXX on deliver focus progress with up, our are in client are initiatives. and its stockholders. will the long-term strategy value we value The achievement with our our pleased which making we and our Paycom designed to strategic deliver turn and to are making investments employees, and value clients their To I'm to sum product in

turn that, to With me it Craig. Craig? let over

Chad. Thanks,

Before say I at future review year here our about second quarter full my quarter XXXX our few results the and third to for words plans I'd Paycom. and like outlook XXXX, a

ago has I and dollars thank from a been revenues. of journey. want dreams, company to billion the I as my $X years and of It this privilege me one few all to has of for company partner shepherding bringing nearly in million joined a approaching Chad this had the incredible XX surpassed a career in that revenue in

to X And for time and announcing role. I a to to next grandfather, my As months. is an sometime prepare expect I'm for in plan to XX with retire the new CFO chapter, as it my after role next advisory from me remain my in that, Paycom

everyone With non-GAAP into my be results measures certain by financial to related reminding that, dig comments that let's a basis. QX will on

end comparable for million the representing and X% period. XXXX, total was of our million recurring Second quarter Within comparable prior range revenues year for total came quarter the $XXX prior revenue X% of in at revenue from revenues, of period. XX% of over was year second up the the the and $XXX quarter top growing

was share the on income was per the quarter in net shares. XX.X Non-GAAP $XX approximately or based second $XX million for per diluted million GAAP or quarter share. million diluted $X.XX net income $X.XX

to margin due better discipline expense quarter adjusted quarter. or than the expected, million primarily XX.X% Second EBITDA was $XXX of nearly in

in period. value our $XX costs, We total XXXX total areas the expansion continue to Adjusted including $XX for million R&D of the expense $XX in client. second portion, to invest aggressively automation, were and capitalized R&D proposition the quarter in of revenues. year compared prior XXXX international million quarter the the of in second XX% of Adjusted AI, or was million

We the automation continue most automated the in on competition. platform which the to from rest industry, should are us more of the distance building

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

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

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

shares of During $XXX July, authorization price X total quarter $X.X last second slower approximately growth our dropped valuation approximately into of million. approximately year. took week, We X.X margin April November low XX of million Earlier stock X July repurchased been we that outstanding. that X advantage and another below last representing to and lower of repurchased opportunistically has of between for million and shares July since XXX,XXX to increased we peers. X% of the repurchase Nearly shares, it the X-year our stock for period. Since buyback the extended and of this have billion year,

if to continue buyers relative when in will of We we be opportunistic and dislocations valuation stock to our peers. see our

cash of $X.XXX quarter And the paid quarterly earlier second $XX our of dividend million week, in in this per payable the Board over dividends. XXXX, approved During we next mid-September. share

let to me turn guidance. Now

of that growth on plan We remain XX% and the strategic initiatives EBITDA the adjusted several beginning we execute to year. this margin on continue at guided achieve to to XX% and

For year-over-year $X.XXX range our the now billion range more to guidance at into we that fiscal approximately revenue the of growth revenue narrowing be the XXXX, expected we of with XX% visibility midpoint year, remainder in of have the are or range. $X.XX billion the to

$XXX We at range to the are XX% to of adjusted EBITDA of expected range. midpoint an our the million EBITDA representing approximately raising margin $XXX adjusted million,

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

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

balance flow significant free We have sheet, a cash strong and strong liquidity.

will automation competitive position client the and strengthen user invest and We our in areas ROI will continue through experience. that to our bolster

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

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

sales the installed own base in how is turning employee inbound. prepared well, your I a all Like thinking just increased guess a base? Craig, -- few installed Beti. I'm you its little is quarters. Beti of has whole still a industry the for the but can talked now business around talk the it's the that question And bit benefit into also have for And you your perception we My about that about Chad, base. the like in remarks, tool as about best and understanding

Sure.

state necessarily that client utilize did the everyone, And able Beti. And by and X who a Raimo, the reduce to coming get use talk they're for so with they a Paycom on by coming it -- question that's have clients call. implemented been it. does I I payroll clients They and went But on new us on new didn't actually days with payroll mean They everybody have X,XXX in, their to were way, follow-up. a employees. happening about to years. to working from they're mere X in and Beti, the what's to why call coming half. they've been department He hours.

it's as this about more far today. call work meet then no we we are maximize talk our we've ROI as clients the we client had within most year as have with sales how change. what so coming unit And on, in value client are than past. them And to achievement strategy where the help today to the continue where base, clients they I new on they our been did

sales staff go-to-market our is as good our so And in well. really doing

from allowed If this economy, like you added And that me. on that the like number. think side, You Perfect. on Okay. reps a you hiring do quarter, that squeeze in And I'm -- your progress? if think one and especially cadence that talked how a base will think about about seeing sales? record you the congrats now like may I How you about the installed what do I sales you're in? follow-up, about think were

Yes.

So by just and we're the we in number better we've been X in it, teams is then or that what with have mean fully probably having manager X staffed all in years. what sales I of the each. sales that staffed, staff on than And

and techniques staffing prior years even And took industry. a took in we're had sell differentiated again, our a sales the them Vickroy out us Amy over from be able strong on to XX since with April, and more and where in in go sales to that has been the so we're time, and for really position there perspective, over a side She tactics that. and as got sell to position us sales -- in

Samana next The is Samad of from Jefferies. question the with line

news. becoming Craig, a on congrats new grandfather. Exciting

Thank you, Samad.

narrow So I Is that maybe I'll did guidance one new business outlook, that a better what either than change new assumptions? forward, Just it think expected. understand you of change you. range? bit the CRR especially narrowing changed? the you But you change a And about to with just it assumptions you Is experience? for mechanics of start to what little the a retention? in bookings, in or considering are going help in what XQ Or came us get the of tweaking as

the had a some had And high range I and timing as Yes. magnitude into those depending on of initiatives we some initiatives. opportunities. year, the of the range plan came our assumptions and wide of mean, mean I

of during now and that narrow range. we it's visibility and we're the more going that it some to was year progressed, have timing, So

maybe, maybe while, Understood. important Or hiring follow of? kind if in in on that a then increasing Raimo's the a just as of we indicator, in understand about pretty you seems help question especially seeing what about either update think development. that And and hiring like this did that this opening in what Chad, and Just talking a we that? terms the of maybe is anticipation you're I Should opportunity gotten behind really about office an up suggests, capacity. haven't your hiring a sales on leading market, the you're hiring disclosures and because signal us could

Yes. mean organization. always say best would felt had sales I I I've that like we've the

wanted part very having that. And we're We to sales to unit get focused of we on the it. opportunity with sales on on Right being to skills to for and to growth us the and be were product's what it really allow right focused up accomplish I very fully this think us. We best hard does again, now, staffed it's offices able open when year. development. focused

sold one quarter, previous in units Amy just over had XX% than point the quarter sold we that data what Second year. second more took we That's April.

helps that's with with, people to helping. really So And being more that. staffed that going sell. The more the staffed you're you're

the a And part sales so we're and having staffing now is a of crew, right lot that. of with big success

Mark line of question Marcon Next is from the with Baird.

my add in terms grandpa. congrats, Let a That's me of huge Craig. being

you. Thank

service the then how to the wanted year? some And little service the through I follow-up. going about trying like investments up And making, we the terms of investments ask are a of the ramped I've little and How as sounds and NPS as about in specifically, result. think -- scores should the up Chad. course R&D R&D? cost further pace over So got a the of well of bit a as to of about to investments. investments, you're that's unfold the margins both bit well I'm that a behind at going gross Can you talk as think you've the looking It as

the of that gross margins, take the margin headcount. like this is brought you quarter, thing One I'll our fifth at we Mark, mentioned, gross building question. part corporate online. But on

And the so to that and the on increase on and depreciation, equipment furniture in building. we an building the both fixtures related saw and

income additional the that depreciation, gross other in which So lines margin was part statement. get of depreciation of the also

operations, kind from hiring. I'll that. mean, And I of to perspective mean hiring a on add I we're in

of So only business. hiring again, the for have we're we And market. We're X% open there.

differentiated R&D focused I which expense. course, We're product. lot in heavily, we're heavily and jumped know the that out quarter, of leads focused second there service, that's on on up in our methods. We're product, on a but We a to that, focused have of sales our our putting because product.

releases. month call, the much As we in on a And this I month also January said for out as past good than product was product put twice did we've January. release

And our all so is from, derived from our value we clients. products sell I our mean were our product.

And important very that on always focusing so just we're it's that.

in ambitious product We our very well. have to as regard goals

of we're line. and mindful spend, but mindful our -- bottom also quality a we're that of so having strong generates revenue And

going when that's so spend. this and And budget go we're through to all included we for what

then of that sold -- from sounds a of opposed mean, And an the reason XX% in year-to-date, how acceleration so growth Great. salespeople. revenue it like part the anticipate sales increase new to additional to with terms I incremental far we with would QX? regards the QX is to that is for units why in as relative wondering in seeing baked Just hoping

Sure.

quarter Year-to-date, growth over. thing. taken unit over unit let has quarter. prior Amy XX% for second was correct point the growth. just in So me the the I making is one about since XX% we're second

Now largest I month always far largest the one will say quarter your third revenue first July quarter. quarter any of starts, are a quarter, which starts, the so for is of

revenue Our from July XX% starts are up perspective. a

so about these to And best And with to we're to start we starting. the one again, get data get model. best We we with point where with training. start -- And from it's that sales are product. get best the the service start

And our plan into continuation of so in it's next year. work us, for a XXXX

Joshua is Reilly question line the next with Needham. The from of

should your wanted revenue payment the impact there's guidance. of -- of -- extra the lower we just is if about high run activity the been coming out but other end I Just end impact with new model? understand think for Has with to the expectations? the that better runs of understand the high the slightly payroll better any line wanted from the customer in the to guidance lower. to How the

the client correctly. someone gained far even uses as run those current that of the of payroll XXXX, at still and product our we additional exist I as when Yes, opportunities efficiencies say factors would end today all discussed

factors going we to those of able in and all have on head then so as levers exist, with of confidence mitigating organization, we course, what's And the the our we factors gives year a confidence well again, both have many this end and that and gas into our we're sales continue with product organization, pull lot us as And our as what also service to XXXX. but of on.

then there what modules And been have update over pace utilize Any already customers seen Got last it. of discussed faster was have getting you been modules the utilization we've already better that last sold at to sold than customers. -- to terms the a of that in maybe year? getting quarter,

so are to focus going strategy, something, that. And our and we're yes, It's clients year all Scores. Net commitments model going time where those impacting on positive, and we And we're any achieve that from been on We've meeting does which some helping our have that off not results value ROI. be the client service are it's to they focused them include achievement impacting a to Promoter of. backing

The Steven Citi. next line of Enders question from is with the

Great. kind the I maybe couple questioning. guess on of just lines last of of pulling

is trending? expecting on what back-to-base kind coming are of that implying sounds back were back-to-base like motion new -- of growth how feeling kind about that's motion I what just units the on and solid of And board, kind the you before? guess Just for the versus what of outlook you do how how you

of important that look and working ROI are helps where Yes. opinions of of lot the way I and product I very There's for sure it. to we're releasing haven't of history lot make focused things still they're very a on in and and meet get value on really us the on product, get a each with right clients they're utilizing utilizing you full mean we're product client developing And Paycom, to My the to it's also throughout that. that mean that. changed. at we've it's it that sold of also out it. very that the important

working to the And them game a us doing that clients purchase for be so we're that needed the sure from in able part help level of ROI that their making we've ROI. But to make satisfaction. with changed modules drive help sure little our it's we abandoned have can to like new not achieving bit are them that clients

here. us hasn't And really and what so that what changed we're far we're focused for throughout as as doing on XXXX

I there the so Okay. on last is That's a an maybe of And then far penetration disclosure? kind helpful. adoption versus Beti from guess or -- update

I more Yes, have And and client it they're we're starting that usage go than continues each month. past. we're mean with -- adding greater we more again, to up clients. starts, Beti the every in

-- and go are using so it using it have And that it, to up. continues been those and

that's to usage to forward. And continues so use, easy good with technology move

to have it because not have that that we still of the this the what course, client initiatives. just their may not doesn't fit with them at or a time you do percent specifically may Of point benefit offer be base have receiving or right it our full for it's

where so are clients And those them they live. meeting

went I regards And on payroll sometimes Again, merely half, days payroll talked in their on system they the call of about they reduced do finally said labor and come cost hours. on. to working that company X It to yes. working a X,XXX-employee from by the

available their that's out clients everyone there. what focused servicing then on. right And clients we'll we're again, that's line, But they and time ours. now And with where move not today, on forward can that new to we're So for to to comes clients. which ROI, them we we have new the offer so in, that receive that Beti to through want available only they coming it are when prospects is value full achieve

of UBS. line with next McVeigh Kevin the question is The from

[Audio Gap]

[Audio Gap]

that count from perspective.

So same as mean -- is of Beti's year today. at first the the the well. Beti was what we're and not it it furthering than I product

to continuing all so our with And automation. we're solution advance of

around just to there's obviously, approach the Great. way the last think year been -- so. And that variability over relative or some, then there is with to any about buyback, extended

progression the as moving Just pace buyback. any of to of forward thoughts

-- X. during amount large mentioned I the of XXX,XXX just on we significant we since back mean, I and back a mean QX bought in July shares. We amount call, bought as a actually

-- was approach the were buyback. expire. other one to to And opportunistic about an we the really So

$X.X So this billion. that X in place years, for one another put we

question with The next of line from Siti is the Mizuho. Panigrahi

on for is This Phil Siti.

you the Beti to Are Canada, there in countries? Mexico, plans other U.K. guys added You Beti add to mentioned Ireland and

Yes.

As we them law, that expect employment develop countries, certain have go but as we these their be countries to so own -- absolutely, that would happening. certain into develop and factors as we

from The Jason of is Markets. KeyBanc line next Celino with the question Capital

Great. This Jason on is Zane Meehan for Celino.

Just one for me.

On to margin in guide, moving the bps. by the nice uptick see EBITDA XX up that

to wanted half year. more Just and where that you what's -- driving the the be next ask in getting efficient might increase second or in of the

Yes. flowing of I trying no it top mean second entire really just we for the across full mean raising to and beat I we're and do organization that was on kind pull some. then quarter of the and year look look efficiencies. it really levers there's through the that, to to really

that So pulling really for. we're nothing leverage any

is question Research. the with of next Alex from line The Wolfe Zukin

This is Ryan on for Alex Zukin.

Just the one question CRR on teams.

still see when into on system quarter? So towards Beti Are back commissions lean motions? kind cross-sell are are update Or of upsell back more shift focused conversions focus? can they they were focused to teams And the provide base structuring upsell, cross-sell extent that on in to the and still the the conversions, where to of them you could you an the Beti CRR the we usage? the just starting

year. client as means same I a But to not not I'm go isn't process is say competitive into that's a that what CRR, will a was reasons, Yes. which last going different CRR's in exactly each they client situation, into today territory, and CRR's get mean, every the I they you than is entire their the what to I if for will. with it same work approach mean

has I'm through depends working value client not I'm with it if And the working with or strategy the client really that gone achievement fully if client so yet that on has. the

we -- that's that say achieving that have not sell there are are clients that just can't so go additional and with opportunities methods ensure certain each that don't they just additional we opportunity revenue client. today It's to to before through they that them. provide And

So wouldn't a -- I any dramatic year. we've this change and had say quarter other from that's

Bhavin from is Bank. of Deutsche question next Shah The the line with

-- for Just first Craig.

bringing terms we about? online any range you to in planned Any the of revenue of the XX% builds of in should CapEx near future during mentioned And -- quarter. Just the right still keep for to those fifth building in thinking that the think year. changes that the mind? are Is

we finished more the that a just I year. last of We've got throughout the building. projects couple end the Yes. mentioned

as talked of the to XX%, somewhere for we that still in we XX% percent kind what So the earlier, thought that. year, thinking be would probably

we As on year, projects have plan. don't at look we any really large the next

we well the the even on of digits we mentioned revenue. CapEx that potentially expect last percent we're which So conversion, And be that flow free as call bodes also a focused would year to single next cash really for on.

about you what you is to perspective financial a perspective? That are can for an employment Paycom with broadly? business and partnership just from makes on elaborate verification this a bring sense. year now Paycom How Can that maybe appears service. also just And more maybe then quickly following thinking opportunities up. partnering this It partnership guys

I standpoint, focus Paycom, that. want we can clients with most that to at think look line that's in would opportunities, I think, something data-type -- standpoint and better them what regards I so it. any are have in if necessarily to from mean think a not helps that mean provide say we And we that wouldn't much necessarily strategic are from things on. nature I not of with that differentiated things our I fall experience my there's from in and

The line with is Jester from the BMO. next of question Daniel

drive the things about should Are automation? focus be -- going Yes. -- already Great. your more you've Chad, help increase on out and you're on the automation, when there thoughts any Maybe, of modules specific map to we you expecting that here? product customers? sort outcome think for sort the road the about you of high-level Sort level be direction reengineering on to of embarking to of put that

Sure.

system And not whether on innovation not of we our where regardless had. automate. solve that we guess we or That's and focus current to we want so or that's start to something what whether that's of problems or new I in

we are what so start solving. problem And we with

so at the it's you're when across And looking automation, entire suite.

We include those But module the the the start a with process, it for to you're as But clients opportunity our then problems. the revenue revenue thing, automating and for We that. will solving at and with see right and problems ROI you're if each is additional you're discover for don't doing develop opportunity. opportunities. able of there end your start

opportunities. we get problems And sometimes, we in to through revenue additional solve those share

available then to Beti clients? just have And now. is employees it any that abroad? Or X sold Okay. you Have on U.S.-centric locally the is geographies international domiciled still where clients

client asking a may that fallen you're to employees your we've off. answer Now if was. question. U.S. in employees? X has have that assume domestic that You country X I question? just I'm the with it going Is they're and sold

the Canada, doesn't was had released. surprised base our or have first I would U.S. talent. in a sure, one have would if point U.K. we connection. clients that Canada, of a I the For or I Ireland believe at expect we the But client be we've would have this that just that. have just That in Mexico some

Roberge Jake William next from line with of question Blair. The is the

geos start in I'm on global the longer it been Just and wanted to long demand for for like Canada how front. new you're on seeing meaningfully. up for follow more has bit to ramping takes market payroll front curious that that just geos what the a

Canada separate the country. was time native Yes. actually very first XX any ever for payroll U.S. were I We in years. a we developed mean -- having

company countries, And so of were learned some some more of lot U.K. for then we able lot learned items. do transferable, in a And the those the a we and And in we Mexico were of the a of Canada. them -- developments to lot lot a

learned we've it's lot process. Also, by mean we going strengthened much this payroll. through HCM so our And product. global just a very I native not

a very continue automate have to We global HCM we well. as product strong that

value all together make so And ties of a to proposition. strong that

much gotten still that cannibalization Okay. those Or base given we've we comps? we that That's then a less And that the pronounced that of do heading officially lap year? be this could will think Is helpful. about payroll will into of kind when next through smaller it when revenue something tougher as bigger headwind a be actually year? those be reruns,

again, I us or impacting you're year were have talking about impact the that us of the same factors at today factors end about fast how the are we when talked you. Yes. that mean what the that

have is then also right about our mitigating when as factors the most that how industry happens in way. going the efficient factor into about that client what fast But well. We there, you're you're utilize talking and utilize the really to product talking it base

that be expectation And good usage, cannibalized but we've I we And in quantified think from differentiation. opportunity of so could also back of that kind it's the get the areas. other

again, know, that's able I all is deploy, us to we're client helping through say as So value they're think to do the of well. that that will be we don't that that to there I but to help client mitigating thing. achieve achieve type when there's factors value --

The Levine is line TD next question of from with Cowen. Jared the

guidance rest annual year here? discuss including you any the can rate what of float embedding surrounding or for duration the of there Fed quarter revenue, flow And the updated assumptions? of was extending during the planned terms In revenue,

mean we're year. talking half cuts back about I of in as definitely rate duration Yes. the at the the looking extending we're some

looking full that rate more kind you're at some start of And those as So at point. in year, to this of you start factor to then as we that extend the seem basically cuts lower because potential rate get layer going on on that. in you're that a short-term it's you rate basically than amount and of you're to cut money, be duration, could taking the certain

definitely So we're that. yes, looking at

Okay.

in the terms performance, of in sales how inside can terms those you're of employee but then clients top it, the you specifically XX just the that's not acceleration? in And how sales discuss currently considering doing notable right motion now. given logo with So new

Yes. going above. I XX mean our that up the our overall acceleration percentage. approximately represents below less logo been XX and X% or mid-market group, of to revenue, is hasn't the and going a as The be

FT with Partners. question the Zachary is next The of Gunn from line

you're on to been from, whether terms of takeaways from Just come ask context any of seeing or in regional? wins. it's a those competitive new the or wins there side. just I mix competitive client change Has perspective any in-house there where wanted

we is who XXth very industry been year. mean years. we're really in Arguably, This I XX a from with. competitive guys for specifically No. the our new we've compete

we're in against the And so out to and market. when it's continue usual there the with suspects we that compete

at to no to Richison the for are pass over this closing back like There time. Chad questions further waiting would I conference remarks.

All a the right. personally he's and for career. example amazing I our set Craig, Paycom want thank joining thank my to and friend, his for brilliant everyone to for call I today. to colleague dedication want

eclipse industry across working for want Our our board. I employees our thank of hard employees automation. effort all toward to their plans the are with to strategically the

forward seeing -- Technology Bank Thank Global quarter, York you operator, City York call. you in Dana the conferences investors August New this Bank New September. including in in several disconnect the Conference in -- Point to the And Technology or look We at Conference and the Citi may Deutsche all. in Deutsche Technology

concludes Paycom your Conference enjoy the Quarter and Second for Results Call. participation, XXXX your Quarterly That day. the Thank you. Thank of Software you rest