Paylocity Holding Corporation

Good day and welcome to Paylocities Holdings Corporation first quarter 2023 fiscal year results conference call. At this time all participants are in a listen only mode. After the speaker presentation there will be a question and answer session. To ask a question during the session you will need to press star 1 1 on your telephone. You will then hear an automated message advising that your hand is raised. 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. Please go ahead, sir.

Good afternoon, and welcome to Paylocity's earnings results call for the first quarter of fiscal 23, which ended on September 30, 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, Steve and I will be attending the Needham Virtual SAS Conference on November 17th. And Toby and I will be attending the Credit Suisse Technology Conference in Scottsdale on November 29th and the Needham Growth Conference in New York on January 11th. Please let me know if you'd like to schedule time with us at any of these events. With that, let me pass the call over to Steve.

Thank you, Ryan, and thanks to all of you for joining us on our first quarter fiscal 23 earnings call. Our strong sales momentum continued into fiscal 23 with recurring revenue growth of 35.7%. as our differentiated value proposition of providing the most modern software in the industry continues to resonate in the marketplace. Total revenue was 253.3 million, or 39.4% growth over Q1 of last year, and exceeded the top end of our guidance by 12 million. In September, we held our annual Elevate Client Conference, where we hosted a record 4,000 clients, prospects, and partners for more than 100 virtual and in-person sessions over the course of two days. The prevailing topic throughout the conference was the need to leverage software tools to connect employees, processes, and data more efficiently across an organization. The theme of connected HR has become increasingly important for companies as it remains difficult to find, attract, train, and retain top talent in a tight labor market. At Elevate, we highlighted several new product enhancements across our suite that are specifically focused on driving a more modern connected HR experience at both the employee and company level. For employees, new tools within community, such as the ability to create announcements through a mobile device, add multiple attachments, and schedule postings in advance, will ensure clients are able to engage with their employees wherever and whenever they want. Within Premium Video, our new video hub offers a centralized location for managing, reviewing, editing, and sharing engaging content, both company-wide and within a specific team. Lastly, our newly released My Insights feature allows clients to create, edit, and save multiple dashboards, each dedicated to drilling down into a specific data set or use case. At Elevate, we had the opportunity to connect with clients that are leveraging many of these solutions to drive a more tightly connected HR experience, including a financial services client with 300 employees who is saving over $200,000 from operational improvements informed by our data insight tool, and a manufacturing client with over 1,000 employees that is driving a 70% reduction in employee turnover through a combination of community, surveys, and impressions. The strong momentum across our business continues to be recognized by third parties, as Paylocity was recently named an overall leader for all 12 HRIS product categories in the G2 Fall 2022 Grid Report. This marks the 16th consecutive quarter where Paylocity has achieved the leader ranking and includes recognition across all segments. A big thank you to our employees, clients, and partners for helping create the best Elevate conference we've had to date, and we can't wait to see everyone back again next year. I would now like to pass the call to Toby to provide further color on the quarter.