Paylocity Holding Corporation

Good day, and welcome to the Paylocity Holding Corporation third quarter 2023 fiscal year results 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. To withdraw your question, press star 1-1 again. 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 third quarter of fiscal 23, which ended on March 31, 2023. 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 regards to our upcoming conference schedule, Toby will be attending the Cowen Annual Technology, Media, and Telecom Conference in New York on June 1st. I will be attending the Jeffrey Software Conference in Los Angeles, also on June 1st. And Toby and I will be attending the Stiefel Cross-Sector Insight Conference in Boston on June 6th, and the Baird Global Consumer Technology and Services Conference in New York on June 7th. And Steve will be attending the William Blair Growth Conference in Chicago, also on June 7th. 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 23 earnings call. Our overall momentum continued in third quarter with solid execution across our target market. Q3 revenue growth was 38.2% as our differentiated value proposition of providing the most modern software in the industry continues to resonate in the marketplace. We continue to build on our unique value proposition of providing the most modern software in the industry with the recent release of AI Assist, the HCM industry's first integration of generative AI. Leveraging an integration with OpenAI, the developer of ChatGPT, AI Assist is designed to help our clients more easily and effectively communicate and engage with their employees. Included as a new feature within community, AI Assist allows users to draft ready to send communications and announcements with a simple prompt tailor messages to specific audiences, or even translate announcements into other languages to reach multilingual employees. AI Assist represents the next step in Paylocity's broader investment in AI and machine learning, building upon other AI-based platform capabilities, such as our modern workforce index, retention risk dashboards, time and labor forecasts, and tone and sentiment analysis in performance reviews. Our commitment to product development also continues to be recognized in the market, with Paylocity recently placing number one overall in G2's Best HR Products list and ranking inside of G2's top 25 global software companies. Additionally, Paylocity was named an overall leader in all 12 human capital management product categories in G2's Spring 2023 Grid Report and won a 2023 Most Loved Award by TrustRadius. Similarly, the strong culture at Paylocity continues to be recognized externally as we've received Forbes 2023 Best Employers for Diversity Award for the second consecutive year. I would now like to pass the call to Toby to provide further color on the quarter.