Paycor HCM, Inc.

Thank you for standing by. This is the conference operator. Welcome to the PACOR HCM first quarter 2022 earnings conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Brian Deneau with ICR. Please go ahead, sir.

Good afternoon, and welcome to the earnings conference call for PayCore HCM for the first quarter of fiscal year 2022, which ended on September 30th. On the call with me today are Raul Villar, PayCore's Chief Executive Officer, and Adam Ante, PayCore's Chief Financial Officer. Our financial results can be found on our press release issued today, which is available on the investor relations section of our website. Today's call is being recorded and a replay will be available on our website following the conclusion of the call. Statements made in this call include forward-looking statements related to our financial results, products, customer demand, operations, the impact of COVID-19 on our business, and other matters. These statements are subject to risks, uncertainties, and assumptions and are based on management's current expectations as of today may not be updated in the future. Therefore, these statements should not be relied upon as representing our views of any subsequent date. We also refer to certain non-GAAP financial measures and key business metrics to provide additional information to investors. Definition of non-GAAP measures and key business metrics and direct installation of non-GAAP to GAAP measures is provided in our press release on our website. With that, let me turn the call over to Ray Wolf.

Thank you, Brian, and thanks to all of you for joining us to discuss PACOR's fiscal first quarter results. We are off to a great start in fiscal 22, with both revenue and profitability exceeding our guidance for the quarter. Our success in Q1 is further evidence that our strategy is proving effective and that we're establishing PACOR as a leading SaaS-based provider of human capital management solutions for small and medium businesses. We believe this is a multi-billion dollar market that is still in the early stages of shifting to the cloud, which positions Paycor to accelerate revenue growth and increase profitability over time. Paycor is built to empower the leaders of small and medium businesses to build winning teams by attracting, developing, engaging, and retaining employees. As we have all seen from recent headlines, the war for talent is a pressing challenge for small and medium businesses. We believe our success demonstrates that our focus on leaders and their teams is resonating in the market. We delivered strong results for the first quarter of fiscal year 22, with total revenue of $92.7 million, up 17% year over year, and adjusted operating income of $3.4 million. We also exceeded our internal expectations for bookings in Q1. This is continued validation of our differentiated value proposition, solid execution against our growth levers, and that the efforts that Chuck Muller, our Chief Revenue Officer, undertook in fiscal 21 to level up and expand our sales organization are yielding results. With these strong results, we are once again raising our guidance, which Adam will discuss in more detail shortly. We had broad-based success in the quarter with significant progress made across each of our key growth initiatives. First, our increased focus on Tier 1 markets is paying off. We continue to significantly grow our bookings in Tier 1 markets. One of our biggest strategic focus areas is aggressively expanding our sales organization. We had a strong hiring performance in Q1, exceeding our internal targets, and we are specifically pleased with our staffing results in Tier 1 markets. As we have discussed previously, Hiring in these dense markets like Los Angeles, San Francisco, and New York provides Paycor a great opportunity to expand its sales coverage and accelerate bookings. Second, we continue to experience strong performance from the broker channel. Bookings through the broker channel exceeded expectations for the quarter and continue to deliver outsized results. We now have five national partnerships that are contributing to our success in this channel. Our decision to proactively engage the broker community and empower them to choose the right benefits administration solution for their customers while leveraging our platform for the insights, tools, and competitive advantage that increases client satisfaction and retention is working. Third, Our vertical focus is resonating in the market. We have developed purpose-built offerings that focus specifically on three key verticals that represent a significant portion of the SMB market, healthcare, manufacturing, and food and beverage. By understanding the specific needs of companies in these markets, we have built tailored solutions that help solve the most pressing human capital issues facing customers. These are small and medium businesses with limited technical capacity. The fact that our products are built for their needs out of the box is compelling and a key driver of wins. We had a strong quarter in all three of our target markets. Lastly, we continue to expand our product offering and drive greater adoption of our bundles. A core part of our growth strategy is to expand our HCM platform by adding new solutions and increase the total per employee per month or PEPM available. During the first quarter, we increased our full product suite to $39 PEPM per month from $35 PEPM per month. We have aggressively expanded our product portfolio over the past couple of years, and we are seeing very positive results. In particular, we are seeing great adoption of our Talent Management Bundle, which provides leaders with the tools they need to identify, attract, hire, and onboard the best people for their teams, and then develop, coach, train, recognize, and engage them. Talent is top of mind for every SMB today, and as a result, is driving a significant increase in attach rates for both new and existing customers. We announced several new product features in Q1 that highlight our ability to quickly introduce new capabilities that add value for our customers. First, we bolstered our COVID-related offerings to help our customers navigate impending compliance changes and to promote workplace safety with the launch of our immunization tracker and facial recognition time clocks. The immunization tracker allows business leaders to manage and track immunization and testing status of their employees. Workers can upload proof of vaccination or a negative COVID test directly to the system, and HR leaders can run a report to see immunization status across the organization. This new feature will assist businesses with employment policies and position Paycor as the first HCM cloud provider to offer an immunization tracker that is fully integrated into their platform. In addition, our time product now offers a facial recognition time clock promoting a touchless employee experience. We also launched On Demand Pay, an earned wage access solution that provides HR leaders with more flexible pay options for their employees. On Demand Pay allows employees to access earned wages before their payday directly from our mobile app where they can also view their current wages and compensation history. On-demand pay is an exciting evolution in pay that enables employees to control their own financial health and provides leaders with another benefit to attract and retain talent, a benefit that resonates well in our core verticals. We are also extremely proud to be recently named a Top Workplace 2021 for diversity, equity, and inclusion practices. This coveted list celebrates companies with a welcoming and inclusive culture across all levels of the organization. Our commitment to DE&I is also reflected in the success of our associate-focused programs, such as our employee resource groups and development opportunities through the Black Leadership Academy, which we conduct in partnership with McKinsey. To reinforce this commitment, I signed the CEO Action Pledge for Diversity and Inclusion, the largest CEO-driven business commitment to advance diversity and inclusion in the workplace. Before I turn it over to Adam, I just want to reiterate how excited I am by our performance. We are executing our detailed growth plan and setting the stage for PayCourse Future. We believe we have all the elements in place to be a winner in the ATM market. With that, let me turn the call over to Adam to talk about our financial results in more detail. Adam?