Paylocity Holding Corporation

Good day and welcome to the Paylocity Holding Corporation first quarter 2024 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 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. The floor is yours.

Good afternoon, and welcome to Paylocity's earnings results call for the first quarter of fiscal 24, which ended on September 30, 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 in 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 at the Securities and Stains 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 palasi.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 will attend the Stiefel Conference in Chicago on November 9th Steve will attend the Needham Virtual Conference on November 16th. I will attend the D.A. Davidson Tech Summit in New York on November 16th and the UBS Conference in Scottsdale on November 28th. Toby will attend the Raymond James Conference in New York on December 5th, and I will attend the Barclays Conference in San Francisco on December 7th and the Needham Conference in New York on January 18th. 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.

Thank you, Ryan, and thanks to all of you for joining us on our first quarter fiscal 24 earnings call. Our solid results continued into fiscal 24 with total revenue growth of 25% as a differentiated value proposition of providing the most modern software in the industry continues to resonate in the marketplace. Recurring and other revenue was 291.7 million or 19% growth over Q1 of last year. Our growth continues to be fueled by our ongoing commitment to driving innovation and revolutionizing the way organizations engage with their employees, as highlighted by the recent announcement of two new product releases, Rewards and Recognition and Employee Voice. Embedded throughout the Paylocity platform, Rewards and Recognition is designed to help clients improve employee retention by automating and customizing both peer and manager feedback across work anniversaries, birthdays, and every moment of achievement through personalized recognition and rewards programs. Similarly, employee voice combines AI with our proprietary statistically validated engagement model to improve upon our existing survey functionality and help clients aggregate, analyze, and ask on employee feedback at a much larger scale, and ultimately, the driver of greater employee engagement and talent retention. Following the release of the solutions, our PEPY opportunity now sits at 550, and we remain confident in our ability to achieve our target of 600 as we continue to develop the most modern product suite in the industry. Our innovation continues to be recognized by third parties, as Paylocity was recently named an overall leader in 10 product categories in the G2 quarterly grid reports for the 20th consecutive quarter across multiple segments, won the Brandon Hall Group HCM Excellence Award, and ranked as top five vendor across 14 user experience and vendor satisfaction categories in SAPIEN's annual HR system report. I would now like to pass the call to Toby to provide further color on the quarter.