Paylocity Holding Corporation

Good afternoon, everyone. Thank you for standing by, and welcome to Paylocity Q3 FY 2022 Earnings Conference Call. I would now like to hand the conference over to Mr. Ryan Glenn, Chief Financial Officer.

Good afternoon, and welcome to Paylocity's Earnings Results Call for the third quarter of Fiscal 22, which ended on March 31, 2022. I'm Ryan Glenn, Chief Financial Officer, and joining me on the call today are Steve Beauchamp and Toby Williams, co-CEOs of Paylocity. Today, we will be discussing the results announced in our press release issued after the market closed. A webcast replay of this call will be available for the next 45 days on our website under the Investor Relations tab. Before beginning, we must caution you that today's remarks, including statements made during the question and answer session, contain forward-looking statements. These statements are subject to numerous important factors, risks, and uncertainties which could cause actual results to differ from the results implied by these or other forward-looking statements. Also, these statements are based solely on the present information and are subject to risks and uncertainties that can cause actual results to differ materially from those projected in the forward-looking statements. For additional information, please refer to our filings with the Securities and Exchange Commission for the risk factors contained therein and other disclosures. We do not undertake any duty to update any forward-looking statements. Also, during the course of today's call, we will refer to certain non-GAAP financial measures. We believe that non-GAAP measures are more representative of how we internally measure the business, and there is a reconciliation schedule detailing these results currently available in our press release, which is located on our website at Paylocity.com under the Investor Relations tab and filed with the Securities and Exchange Commission. Please note that we are unable to reconcile any forward-looking non-GAAP financial measure to the directly comparable GAAP financial measure, because the information which is needed to complete a reconciliation is unavailable at this time without unreasonable effort. In regard to our upcoming conference schedule, Toby and I will attend the JPMorgan Global Tech Conference in Boston on May 25th. I will attend the Jefferies Software Conference in San Francisco on June 2nd. Toby and I will attend the Stiefel Cross-Sector Insight Conference in Boston on June 7th, and the Baird Global Consumer Tech and Services Conference in New York on June 8th. And Steve will attend the William Blair Growth Stock Conference in Chicago, also on June 8th. Please let me know if you'd like to schedule time with us at any of these events. With that, let me turn the call over to Steve.

Thanks, Ryan, and thanks to all of you for joining us on our third quarter fiscal 22 earnings call. The momentum from our record-setting selling season continued throughout the third quarter with strong sales execution across our target market. Q3 revenue growth was 32.2%, marking our third straight quarter with more than 30% revenue growth as our differentiated value proposition of providing the most modern software in the industry continues to resonate in the marketplace. In particular, our products focused on the modern workforce are resonating with clients and prospects as they navigate how to best connect, communicate, and collaborate with their employees in an increasingly digital world. The momentum from this digital transformation is reflected in improving attach rates across our suite of modern workforce solutions, including community, which has seen usage among our client base increase significantly since its initial launch two years ago, culminating in one million monthly active users in January. Moreover, the number of discussion groups and public peer recognition through the use of impression has increased every month, while employer announcements, posts, and reactions have increased by nearly 60% over the last 12 months. This level of increased usage by our clients demonstrates communities' ability to help companies more readily engage and connect with their dispersed workforces. To that end, in April, we announced the release of Community+, which introduces new functionality including one-to-one and one-to-many chat functionality, the ability to create, edit, and share files, and the automated addition of employees to team groups as they join the company. We believe the addition of these new premium features will drive even greater utilization of community and increase modern workforce index scores, which have been shown to improve employee sentiment, productivity, and profitability. The launch of Community Plus will increase our PEPY from $420 to $440. Our commitment to product development also continues to be recognized in the market, with Paylocity once again being ranked among the G2 Best Software Products and Best HR Products lists for the third consecutive year. Additionally, Paylocity was named an overall leader for all 12 HRIS categories in the G2 Spring 2022 Grid Report, as well as being recognized as a leader across our target market. I would now like to pass the call to Toby to provide further color on the quarter.