Paylocity Holding (PCTY) 2 Nov 232024 Q1 Earnings call transcript

Good day, and welcome to the Paylocity Holding Corporation First Quarter 2024 Fiscal Year Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker, Mr. Ryan Glenn, Chief Financial Officer. The floor is yours.

to fiscal results September 'XX, welcome first for XX, and of quarter which afternoon, Paylocity's call earnings the XXXX. Good ended on on Steve Glenn, call Co-CEOs Ryan Chief Officer joining I'm Financial of Paylocity. today and Beauchamp me are Toby Williams, and the

the be call after tab. will days for next closed. we be release will in on press replay XX under Relations the available discussing Today, A the our announced webcast results our issued market this Investor website of the

must These Before today's important including subject other we from which that beginning, caution session, results differ remarks, to uncertainties, numerous the statements or you forward-looking question-and-answer could implied the statements. contain to results these cause factors, and made statements during risks forward-looking actual statements. are by

on in information to based forward-looking are can Also, and to uncertainties projected are results cause risks actual these those the statements the from present and that statements. materially solely differ subject

Exchange the please information, We refer additional and to other undertake and contained do For the update filings not disclosures. statements. any to with risk forward-looking herein duty factors Securities Commission any our for

that Also, of measures of during detailing we believe call, refer Commission. are certain Exchange and the non-GAAP measure We under measures. Investor more and today's Relations the schedule to in our representative filed the internally how on financial paylocity.com is we will business, at the press currently Securities course reconciliation non-GAAP these a there available located tab results website release, which our is with and

needed effort. comparable the without forward-looking the unable at reconciliation we financial that any GAAP information, to measure measure unreasonable is a directly are time unavailable note financial Please complete this because non-GAAP which is reconcile to to

and the will Conference the on New I upcoming Toby San in December XX. regard attend November York the in in the Toby XX, attend Davidson will schedule November XX XX, Raymond events. in conference Needham Steve X, you'd Stifel Conference and Tech UBS Conference if November to In on I the New us attend Conference in the will attend X know attend Virtual these James York in D.A. November Needham on Summit Chicago at on with will on on me our X will Scottsdale to any and Conference like the on January time Barclays December let Please Conference New of York Francisco schedule,

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

Thank you call. fiscal you, first Ryan, us quarter for earnings and on of 'XX all thanks our to joining

growth XX% Our over revenue value other solid QX million industry results revenue of continued the marketplace. differentiated most software of XX% or as $XXX.X was modern proposition resonate total of a providing continues into and with the year. Recurring the fiscal 'XX, to in last growth in

and to birthdays employee innovation revolutionizing X rewards product growth recognition ongoing Our way and fueled and of as their our platform, Rewards the engage through by releases, by to peer and anniversaries, commitment feedback across customizing Recognition is & programs. driving with & to manager be both throughout every retention the improve personalized the clients Employee help Paylocity announcement Voice. automating employees and work of new and Embedded designed Recognition moment Rewards by organizations highlighted continues recent achievement

on statistically Similarly, and larger clients help validated our to much analyze a scale and feedback Employee AI driver our aggregate, a employee greater and of talent with combines proprietary employee retention. existing upon functionality ultimately, Voice act survey engagement improve at engagement model and

in to XXX, now modern opportunity of these suite sits remain develop as Following in XXX ability the the PEPY solutions, most release product at our our confident target we continue to achieve and of industry. our the we

for categories in the to was User XXth named in Excellence Bridge in Reports and recently Paylocity System continues an Report. Group and One, Hall across Across XX GX safe Experience Categories as overall X HCM bank's parties leader Top quarter be the Satisfaction Award recognized Vendor HR Annual innovation consecutive XX multiple product segments. Our Quarterly by Brandon third the Vendor

I like provide pass the on to would further call Toby to quarter. the color to now

Thanks, our IT inaugural Steve. Client had teams organizations employees, product operations earn teams client through in credits we to helping In representing to innovative XX for award, course And philosophy. are leaders date. our map of partnering of you Elevate shim HR won of thousand future dozens influence held X use and honoring with our to days. clients and the service across to business annual help October, best over several Elevate exemplified HR, opportunity our Elevate attendees forward-thinking thank we Elevate, Conference, create our where our business the the through technology. solving conference by a finance, that that we've hosted road and as to the partners co-creator addition was sessions big This had dynamic At challenges

to is market for that compensation have talent leveraging including opportunity that with also we connect their remain competitive of make XXX Elevate, decisions utilizing data-driven solutions, firm the that at the are employees to while fair existing and engineering recruitment they clients new in over While employees. also maintaining ensure with new compensation pay our an several employee around

are working to Voice, of which on clients' functions continues are in the office, HR from and Rewards our or Employee also go. announced whether interact our to to launch & how the addition next-generation they the with redefine mobile able employees regardless In home key app, of we Recognition

growing solid demand desktop momentum in increasing more to on reliant usage. mobile workforce and pleased we're and be to the across team with our season. sales into reflected This Today's distributed is solutions devices heading than before, modern mobile in continues ever market, and target employee-driven our we selling demand for versus continue see

recently of for our new named of than similarly we more Employers The our in as were be which channel, Fortune's of referral to recognized We're externally with list Paylocity of QX. again strong once Women. happy consistency XX% the business to delivered culture continues Best

to our X,XXX for of I strong 'XX. comments, employees than more all to Steve's a start thank fiscal would Echoing like

fiscal results detail in and review would call provide the I Ryan financial to now updated 'XX like to pass guidance. the to

the Toby. revenue revenues from Thanks, XX% increase first same XX%, of other last an with the quarter up was year. Total million, recurring period $XXX.X and for

QX costs XX.X% we gross XX.X% profit year, of focus points in QX as on adjusted representing was to versus levels. for operational continue leverage service last Our XXX industry-leading scaling basis our while maintaining of

R&D quarter overall significant research investment We year-over-year expense combine development both dollar to basis, investments on continue making and in to we we a R&D, total 'XX workforce. what the R&D On is modern we as and in important our focused understand capitalize. the investments it investment to of make the throughout out our in to what compared 'XX remain when to continue to of the XX% first needs and platform serve we and fiscal Paylocity build increased in incremental by fiscal

consistently annual in quarter go-to-market activities, on in a a year, remain XX.X% to investments sales we and first our the of last marketing of regard in quarter, XX.X% On making of In this and fiscal non-GAAP basis. revenue the growth. continued expenses on G&A focused costs focused basis, an area same incremental and leveraging we the period on expenses were in on XX% remain the basis, non-GAAP versus to 'XX were G&A in first revenue business our drive

the end million was our million our by range represented leverage EBITDA results. $XXX.X Our XX% top or versus and first basis the GAAP margin quarter of for nearly 'XX. guidance points and QX covering of adjusted XXX fiscal of exceeded $XX.X Briefly

income was million, operating QX, profit million. gross $XX.X was income $XX.X $XXX.X was For and net million

average with cash QX. debt balance In approximately client regard to quarter funds our the regard billion outstanding. and funds and the interest ended of was $XXX and $X.X cash balance million to income, of equivalents sheet, we client-held in In daily no

yield We billion basis are daily of average with to $X.X a will of estimating $X.X basis an in be an XXX the are points. be $X.X On daily billion points. with average balance full will approximately average estimating approximately year approximately billion we XXX billion QX approximately balance the basis, $X.X average yield to annual

quarter solid, employees remains the environment providing new demand our to QX, platform the on for the year. the growth year-over-year expectations a and headwind in came While for below business fiscal

full to guidance and provide I'd 'XX. our financial Finally, for QX like fiscal

'XX the $XXX expected of total the $XXX.X approximately revenue or 'XX $XXX.X million XX% adjusted of be fiscal expected total million revenue is and range to million growth million. is second EBITDA range fiscal $XXX quarter be of in to to the quarter For second over in to

$X.XXX or which of is basis 'XX, in And range expected growth billion of approximately 'XX represents be over $X.XXX to fiscal of over adjusted $XXX points EBITDA $XXX XXX for fiscal million billion the fiscal range leverage revenue the to in expected to year total to 'XX. and is million, approximately be XX%

we momentum the and results of our teams and the QX our with across pleased time are we we as sales conclusion, enter In our busiest have year. operations

for are now we Operator, questions. ready

of the [Operator Instructions] Needham Our line & Co. Scott from first Berg question will come with

I first initial and to expecting is quarter I the Are question count your comments much guidance, preexisting on seat there. the follow count to for the Ryan's customers around both relative expectations in up for your seats year? below and expectation? here expectations, guess, that guess How be, forecasting you

Ryan. it's Scott,

in we not saw a what of there So August September, QX. talked did as and quarter softness little about, in assume think the I we a was decline we in bit had which,

think on fiscal revenue at bit that looked factored full the weighed in light year. in we for maintaining the we bit And little So a obviously versus QX. I That expectations. a recurring as guidance

that amount balance put the the a did factor quarter, on said, it, headwind in, and the fiscal probably a certainly dollar as I year. we didn't in over full of So but

some pockets a to Knowing have one weakness base, of that driving target that or overall in employment are numbers be you or of thing might out kind segment the there. I customer reasonably the think customer you of weakness particular vertical any there are certainly able pretty Because but healthy, are there? large

nothing vertical a or Yes, from highlight I'd geographic perspective. that

up levels workforce year-over-year. the think a touch are I

still of what far little other sequentially, similar some the as to as So had call year-over-year, but bit. seen a players you down out

quarter But buying a your what how any cadence the I in notable on kind years? your couple Or customers a existing And all years. the is have know there follow-up question Helpful. of of had are year? we last similar cross-sell to seen modules? new you for you've about cadence of last then how strong perspective change it. couple is emphasis in pretty the should Got last from think

say at Yes, no change noticeable all. I would

back the sales our team investments is the client a years We have last over accelerated can of the inside products At time, SKUs well. we've added map several road selling you -- and we've accelerated and new product see lot customers. as or to existing that same

and those QX. base, the performance . were being pleased team And that customer we with in so are well the received within really of

James. Raymond That Brian will line from come with the of Peterson

to thinking terms in back you to understand wanted about the we're mix are maybe just course implementation on year. focus enterprise second in I because and there Is of year implies kind anything it backlog of seeing linearity quarter of employment. year. seems drives kind But want half the revenue over of the recurring into or the know full that? just parts guidance some So for moving an the linearity I about the or the like of that thinking the how acceleration guys

half Yes, out think you workforce in probably August half some last say at levels growth comps of year revenue recurring X in we quarters first harder this that the year of as fiscal call, Brian, first did I we we first and back earnings obviously when the softness the normalization quarter. had of of that incrementally the and year in on the look the saw the called the

relative sales all Not to into we So account. anything call took Steve, macro to the you environment, that out else want anything or there? I think but I'd add

No.

you in year feel really good little pretty execution a think year. of starts where This from of was the kind terms January. we're we is from exception softness, expected time of for is positioned. the what down demand levels, sequentially a of because quarter. months really first our the It's the middle as environment obviously. a a biggest of just This the much with lot get time the a with us But and bit we I obviously important perspective, month-over-month the of the about of in quarter, Ryan of the activity couple described pretty in seeing

but And so us, with there's to of start we front off in lot the got good feel a we execution of

nature. this mix of has to week. focus kind Great. And maybe be in I don't previously, a lot sizing PPEY sort just But but this Obviously, that or as follow-up. transactional understanding up on tied big a on space know a it's broken streams this that think I a that in of are you of revenue that more just kind onetime dynamic the come impact? been your have out any any guys help not may week. the revenue

I context question. Yes. the understand know. the of I

you ago, up think I being the per was it many payroll was go fee-based, industry very very transactionally So highly was and that if basis. a back ends That billed years common. on payroll-centric, and

modernize suite move ago, really provider our we to made transition PEPM basis. we cloud-first the many, years on As many be and in charge a to

so regardless many on month pay a they per And employee basis. customer payrolls amount of a the how runs, per same us

customer of that the to per a That your But don't know exactly And that providers see It's perspective, from based so in have much per for going month. longer to think, necessarily around period is I pretty model. something that any experience from been be. better we variance of some is what a it's bill revenue off time. was employee common a

I the half than note And is other our payroll-based thing revenue of would today. less is

And it's for billing a so bundled our customers. situation

impact. no So

And will Stifel. come of the Brad from line Reback that with

Great.

where the things sense on on platform Any in on October? a the was employees that couple So of comment.

just the on factored have but go-forward I at like, provide say obviously into guidance color a we what the looks of would that end you more would the basis. we that quarter

give have quarter and factor were better have So the us. but look we at behind we the to early kind able when into color and first look the at guidance, quarter we'll of that October an you

how get Steve, see way And you. we to guide, if now, sort latter just we seeing us the things point impacts economy, that the sense that there, so, you can the on if size of you're understand you any give just worse? on Okay. as assumed directional up can trends you've Any right it seen

Yes.

think maintain I we for were guidance mean, We year. our obviously quarter. had to beat I the So a able the in

got this think biggest is first we of month, was early months, terms a from We've just employees the fourth perspective, a look the needle full kind essentially sizing just on look and the a of there's we'll sales X and quarter, the our year, guidance I an in at So first get the the good still not impact that factored in and to quarter that able at in we've of in mover gets and January. the platform. the into maintain the happen year, be started about next pretty we and of our feel for that that year, it. of Knowing business, the this lot

think -- that we a We we've same and quarter lot at just there's a So got businesses if you of within I look is, implement traditionally, sell execution. about think first the lot quarter. way of

a the softness just so a on quarter first the a And of take it's fiscal I seeing of on think amount and of small in platform just combination approach employees year. we normal

with line will TD Cowen. the Bergin of that come Bryan And from

tonight. Bryan for on Levine Jared actually It's

provide us fiscal the In 'XX? headcount growth you headcount on intentions that typically terms of when sales for most And do sales an remind year? can then sales of headcount, your FY can during hiring update the you you

sales fiscal class in And really season see I with said that really think, coming across sales I mean, that. happy Jared, of for before, all think it's Toby. the during of with the timeframe. the happy we're comes talent Yes, staffed, hiring throughout headcount think into up that the of came that year. I in year, we've but XX%. the we've fully we team really as I came We hiring in into And sales as level year the the most hire headcount this said before, spring team, you

Steve season. mean, as the said, we're in right selling And I

I And happy came this team happy performance think we through selling a of sit the into came really we staffing from where QX, so the with we through as and on year and with season. QX perspective

clients win how enterprise in XX And rates then X,XXX-plus prior us that the those you are of like to that employees, years? terms past fall update months? enterprise of your compare mix How can the And Great. in segment, segment? in that let's of call do there the terms

Yes.

So happening when we They We of were years, over these became seen reps the up have, kind opportunities. experienced some -- on just focused traction of we're naturally in more but always several they focused larger most available, our on market. the some of last market have we definitely those market. increased

and They a to I last have think anything perspective would have really force largest at kind we've of from you. that I years. I as to us. win broker first from core the is, of the wouldn't of first If tell I focus out being call the in sales referrals most. called were the quarter, quarter, the probably our strength where pretty our over which been strong look which market we the interesting, for part it, X is and team perspective, definitely rate

So that positive. was definite a

the of Baird. That will with come Mark from Marcon line

first With right regards pipeline, sales up year terms what hesitant year in in you And ago is of during more ended sales? the describe describe to now Steve or to conversions? in to close you cadence clients way relatively manner? the quarter terms ago? a pipeline can looks in Are sales a compared that able being seeing can how Toby, any to of sales Or the a similar you also, acting

Yes.

that the in say I I kind say wouldn't the we front that's think margin. of little as would where only make sales hear are hearing out. selling bit uniform. But might for that execution Mark. little I the major, longer taken us. spots the really the from Lots And in a throes at nothing call a at it's of say be pipeline you would of that I I So season. nicely decisions. would margins the really we're sales maybe is in force bit of building mean to people

up in that all any there players clients? that different? new of are competitors seeing at that's you're that change terms out Or Any who are you're going same for are Any the Anything private competing like against? there?

same companies we're I of absolutely the size That whether of think changed. usual a any more front, environment. or competitive a it's It's changed definitely any There's been not really or hasn't That in from scale. private a competitive handful terms only them has suspects. less. very in seeing of always

especially about new the in, good we we've it so and with to product made feel last year. of able So that differentiation did been release, point products becomes investments like big we've competitive just all the position a that we're really that and the of

One moment line for will Barclays. of our next come Raimo the with question. That from Lenschow

McMeans I ask of about for Sheldon to is This on wanted coming Raimo. out interest Elevate.

thousand the did How reiterated the pipeline about talked at event. You year-over-year year level exiting that provide . several look clients a comfort And that? pipeline around and of does the guidance? full that

sure. Yes,

mean, I for call-out great Elevate. So

in existing felt I level an attendees as date. perspective the of client focus think to remarks, the attendance I really of then on good the with to differentiation gives and us that, from the best we about our We said opportunity level it about there. the client our engagement, had that I Elevate and base. talk both was client our level And product think prepared product and of our of thousands

that about how around an Elevate, I momentum said, is think, have executing certainly feel coming So part from that think part event. good go-to-market out has good we Steve I feel overall, we the of just and of of overall about think, I QX, perspective. that, we're And is pretty as really the

solid out very think coming I overall, of So it. feel

looks bit you those until may. little for around down you And you do do continue are rates thinking follow-up, the quarter-over-quarter. and as I reiterated still you about between higher to X.X%, longer, levels? to picked if go duration as a of expect quick extending may with yield -- staying be guidance a Excellent. X.X% It up And rates like that

yield yield. XXX for think, a details I in it, basis fair gave range guided average prepared remarks a we call think tight And of in yield Yes. a amount from between and points we daily perspective the balance I relative mean, of and fairly XXX year. I to

in health we the of that So if yield of We're be changes we I the And there. the as at We're see looking think guidance we'll duration . year, we client deeper go at funds I range. think portion accordingly invested. we'll that certainly into do looking have update curve.

our will of for And line that from Markets. moment question. come One KeyBanc Jason Capital the Celino next with

with the If It's kind offerings guess going current a PEPY we've in seen nice modules. go that I've how And X to increase. the quarter giving is should this accelerate of row this got XXX PEPY to where about the you here? the see think up new forward? new what's second This trajectory correct. I to ability we

Sure.

couple go years a back a in obviously ago, tailwind of that I terms R&D. see little We some think you interest made investments we've bit if you of had in increases. incremental can of revenue

that some investments. some We new And So with added made you're of the off come recent a labor of we whole market fruits product think X SKUs. kicked folks. platform new to I bunch seeing We projects.

you, good the I pipeline a tell about really product would from feel we perspective.

of ideas our get those a probably heard lot have say we really that we ideas many we a times co-creator. me of lots customers, customers think as can that You and that help have have we

and And And see side, the we're that at it. extra perspective think to pipeline of right and able do so you're the the quarter, the a of time, I normalizing it of investment, a pretty from probably that's bit kind benefit that, the from those strong. investments about is a R&D flip in of on to same the is think just while kind way you seeing product period

that in industry. sure that funding scale and experience the us reacting the level products modern the making new balance we're of still in investments being feedback, investing really in making we're most allows really their can investment sorts terms feel of we to and platform at now and size so stay to I But all like platform the client

on it beat. expansion change then focusing fair EBITDA in Is be year Excellent. margin philosophy? guidance Any more think you this And prior to Great. versus nice might years? really

Yes.

performance really and quarter the happy year much think the we in as to did. as I the raise that with the ability

think I guiding range it, XX about to or adjusted call so. we're XX% of an EBITDA --

short basis XXX about just our updated So of points target.

out feel far or areas progress. good really So of onetime about I focus. as that additional as call Nothing that would I

I think larger, really while a . continue business we're it's to the time drive future. in function as that scale the growth at drive to gets the investing same to able

question. One from Research. moment for next line that the will And come Wolfe our of Alex Zukin with

I there levels, anecdotally or guess workforce maybe there about lives. you that talk verticals sales taking Anything can either cycles just saw particular were those around any levels anecdotal helpful. from longer workforce commentary that you go would weaker seeing be or around

I about being a the talk being say, want kind we bit as would again, levels that just change in a to Yes. sure make than of little workforce we I that small expected. less

a looked board. just of factors just a across terms to from figure much a We geography at The impact. or the pretty vertical other in was definitely order a this an not reality market. was it's of magnitude, So huge is trying this pocket out from perspective

actually up. at As month-over-month Ryan just in to it quarter. down was it was the not amount. X expected a of a -- months it year-over-year And the on mentioned, X then It if up it basis, on basis, the same we you was up look be

that had the behavior factored bunch in, client be very into sign means a think whole would that is of of that we a And but so that of small kind blip environment By still no a but the definitely guidance. different we're than in a quarter. there we've relatively we impact, something

think that been question long-term guess this particularly I And still the conservative that That's about those it just year? moderating do at targets? extent And full you've guys the really for commenting and assume -- you actually have Or you full the employment in it that still a gave helpful. slight guidance, the to from fair Analyst even year super levels. that difference -- just to for bit employment the we terms feel taken a but into asked, more Is the feel you of targets Day, the full as year levels know has the I been about of maybe on good little in account?

terms mean October. balance I recession different quarter. We We have That into some certainly one in not factored the just the took that of in. about that the the the year. we what employment saw or was -- early still No. up. the versus in of momentum. obviously, all rich we've of good of guidance And the our focused business. some We year in a product long-term a and maintaining the execution forecasted what took for we're pipeline feel taking environment It's we fact We got into biggest factored kind on, into we've Yes. of guided. look those first lot drivers and objectives,

come from with Jester our that the BMO Daniel Capital question. next Markets. line And of will for moment One

do steps continue if the to to you XXXX, the kind on business to start strategy, see you Maybe Philosophically, weaken any? calendar Great. are as do same. we go what of if to into your alter economy going

our in typically history off fall gradual very the don't gone quickly. cycles in recurring cliff in impact Well, through a a things past. revenue model. It These I think a many we've is

give So us. us front the make it does to of terms ability seeing in kind adjustments we're what of in of

have fair the to variable really the say. And first a we assigned cost that's would thing amount of volume. I So do is that that

actually a what so that's kind We've in markets of we're down And selling any down to relatively in past seeing. us had if for lot history in of our success it's adjust market, easy well. as

important proposition offering that they value gain is And platform. That from customers does that proposition so market. efficiency more the value using tight modern a part in we're of become a pretty

definitely And into you lean so that.

ever which the the I we even certainly were was went COVID think biggest able seen sell you to economically. you've through back into that, And drop fact if and that

type I yes, to industry affect we've resilient that market us wouldn't So but fluctuation. our investments and it us, I in make the made of doesn't product think fairly say think our I

but yet, in of then new I or Great. relative XX terms it, on behavior, so? levels seeing of you at modules any don't terms And are call in past, start taking demand the in buyer new the think touched this change to months you've

average have product. I time. XXXX. would a of part time And increases growth customer the you in that IPO revenue per back tell for to of It was $XXX obviously significantly at has the a our equation been core we added long

attach So we've we pretty momentum. the rates we've client that happy sell great pipeline. call the rich a been into The the to continue earlier called already in I base. and ability we've products with, got had out used product with back new that for

And to big of so adopt we that new product. be and and a see more to is part equation, these continuing customers the continues

One Adam for our of with question. next come line And from Bank of will Bergere America. moment the that

So to on areas target? are to functionality a still round or product some out R&D. PPEY looking get that you're quick What one to $XXX

Yes.

to person we a for continue our I record the is have like competitive number valuable to for to think think to about be we're have and to that reasons, extend I automate internal to a you announce never processes able tell to we What close would data an product opportunities launching I that of that very I until bringing market. employee's customers.

into fit really those core HR kind right organization. of of a Some

where of that those of valuable. become that to start extend can outside Some data

to to very our and much pricing allow We one our able product advantage be of out to little functionality also like new equation. add functionality, to take a SKUs able it us of that which was and capabilities Scheduling have customers more allows get of Plus, opportunity be richer bit that to deeper

functionality making innovating don't it's in of actually so deeper we And think competitors better. and our kind on our just really top of a see of go I combination where places

And customer feedback. sometimes reacting then it's to lastly,

I launch to of us wouldn't great is example feedback SKU think a maybe imagine driving Rewards we client or Recognition & X a years that X ago.

so X of it's And things that innovation. all drive those the

helpful. just past for remind this you headcount brought And follow-up. the then ramp you've sales what very the new Can That's QX? is time in a us

hire again, hired time I in is season, don't the we ramp main we every team in year. Yes. year throughout significant continue I mean have I would the course spring that that say of change of terms any sort the think which, of hiring we part the would single although that to the of reps seen the sales of timeframe, have

good up think, had been I the same fiscal good I about year attract. think Steve able I -- increase And few sales we to of talent headcount in into and talent of the heart the a mentioned perspective think selling And that and about we've had minutes we said years. in I think a of a really from ago, with perspective, feel level That's as as of momentum level course XX%. a of season. few feel as I sit how feel think heart about new I selling really from here And level we generally minute the mean we I the last QX we we've the in came where pretty staffing ago, we're sit season. good the we And are the

Simmons Robert of from will for come our One line And that the next Davidson. with D.A. question. moment

is below XX% to do the what So be there? has you think that And likely get to out the When put there. can going growth you've return most your you catalyst target level? to you guidance

perspective. And of the there's on comparables even is goal on a from first obviously target there. some to our the some year some we've XX% that we focus feel post-COVID And getting got. on lot of a noise of in these the focused But of half Well, been in that long-term certainly to continue ways, numbers.

we're the overall for if quarters. but last the guidance couple I little lot number, on think the of at lower you a lower, bit the a at right not implied look year,

I I right, well. always think thing would not guidance, as other actuals is that's say the

close feel a kind we number. pretty perspective, and we're you we're -- guidance the to going on place, in factor of already, that like from all if darn that so to focused And stay we're target

Got it. customer and so you far have from about the announcements at had And talk the feedback had reaction then can you Elevate? you

think really was but days far, good mean, had, Elevate so relates products, said reaction most so think been far Rewards Voice overall I product strong a I of couple I & Yes. overall. launch But and we've as strong. reaction of Recognition those I at obviously, in Employee ago, to -- announcements the that product about. things the talking really quarters the great, like Steve And with overall, terms early minutes of introduction we've had recently, a reaction of some the as of it think we new Steve has few

they we've point And I we've -- on, value Steve's feedback from to delivered I collaborated those think are I that those continue gotten to indicating that products with to them have of think a minute now them. mean, ago, and be we clients products

I think And has so reaction days, been I it's so really strong mean, far. while early the

next the line moment will question. with Tillman for Terry that Truist. of And our come One from

all. question, follow-up, first you Maybe my fortunately or did have and either unfortunately I for a

you Steve, about the now well. business is, first you The said algorithm rest mean you've we really question got growth it the team and think and on execute talk got to the I -- field, of I the year. close as

would how revenue know mix in get totally those in I'm curious you see year on right revenue last follow-up. potential this average coming had is, changes versus that. customer and you mixes? units then a I year? I But what do any of with the discernible So between now, new per And growth look you what Do new think

Sure.

Okay.

think recurring a off I we this, So I think based new you know quote salespeople not our of Terry, number revenue, but specific -- units. on necessarily

average the with units, driving slightly -- per my over the we've need. seen just to and go upmarket I reaction number, want that want we years think get role. I is had product, and be force to the And the play sales what you've couple revenue that. It of able think with to were obviously, bigger component to the success last as smaller a customers to more of customer we a success

specific in they're And and leaned year, going whether base. selling early more you coming be too we've product we're customers sometimes to out shift. this the fair with year back selling that mix into to it's do to selling they're honest sometimes a I a tell of We this able amount have more and see to to means you totally be a little client more product. bit But think

that we're out. going slight to initiative, a be So if that but tell the of let lean probably you based lean, would I the year were to play off

cetera, is maybe easier a that newer the Understood. of XX% done like But than target, have Totally. quicker have testing that said the that not Or terms products that of when you all a get of just simple learning? in out just question, all products? be you these from And lot attach learnings is been done, maybe bring but et add-on plus products rates just of that kind follow-up prior somehow because PEPY. newer this there kind these to and to with you the products can have drive from add-on and learnings able that it

Yes.

these mean maybe can dollars $X products I PEPM to up PEPM. -- that So talking be are several obviously you're

And so see typically as coming of you customers new add movement board. look those, a first with to amount fair you on

starts. So it force. you talked we products new are launch about sales January to X the just for available The

for products already those as we're speak. we X sign-ups tracking So

a been consistent with up fairly ends being would rate has pretty what time. that that normal so products say And over various I is ramp-up

a see opportunity that. don't to I move So big

years, the And sell really has gotten have scaled the and the base. performance strong. back better has to team We though, team client as been that of we that over

of still And products frankly, and to improve having that better whether like the things opportunity think to product that's actually to more so utilization, free And want. headcount talking trials I customers and us just for our continue designing description there's and customers. drive

will that over put I continues improve think when to all be to time. that gradually we an So the sales back the you client together, base opportunity

our Walravens that Securities. for of come question. will moment with next from JMP And line One the Pat

keep But Where of all from the vendors expense that away start market at process? end in and point, said you at that share we would taking How some cloud always the we you've to are to other. legacy each players. come from the for along that? Steve, far shrinking is big the enough an are

Pat. business our still bit the think, there's little It's good I on the Yes. expanded question, X end We've a target and market. obviously I in market end. that on a million upper target mean, low targeted

there. It big still out of that our in grown they are remain me XXXX. market a the since and those has feels of lot consistent, many opportunity. a meeting fairly the like sales tells and IPO activity single every that there's still people levels how which week, look I So at force opportunity

in. a so of I the equation part on of of history customer innovation per of we have we've top that really average something that And that, had success think that, and confidence great is can product adding revenue

beyond billion be year. of business. $X able I does this -- continue We'll to and get a We're So to it opportunity ton much there's $X.X little grow still forecasted us focused then for a to about very think billion what this to take grow on that. be to

So still large feels like a opportunity.

call over no showing any in for like further time. I the closing this the I'm remarks. questions to to you. turn management Thank queue back at would

Toby's sentiments to good usual, the as to you from all a interest employees our Have . start all to for for thank fiscal effort Well, and want a your day. year. our Thanks all just echo Paylocity in of the good I of prepared to remarks.

This participating. concludes for today's program. Thank you all

disconnect. You now may