Paycor HCM, Inc.

Greetings and welcome to the PayCore fourth quarter and full year earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Rachel White, Vice President of Investor Relations.

Good afternoon and welcome to PACOR's earnings call for the fourth quarter of fiscal year 2022, which ended on June 30th. On the call with me today are Raul Villar, Jr., PACOR's chief executive officer, and Adam Ante, PACOR's chief financial officer. Our financial results can be found in 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 and may not be updated in the future. Therefore, these statements should not be relied upon as representing our views as of any subsequent date. We will also refer to certain non-GAAP financial measures and key business metrics to provide additional information to investors. Definitions of non-GAAP measures and key business metrics and a reconciliation of non-GAAP to GAAP measures is provided in our press release on our website. With that, I'll turn the call over to Raul.

Thank you, Rachel, and thank you all for joining us to discuss PAYCOR's fiscal fourth quarter and full year results. Revenue growth continued accelerating. culminating with 26% growth for the quarter, our highest in recent record, and 22% growth for the year. We exceeded the top end of our revenue and profitability guidance by 7% and over 100%, respectively. In our first year as a public company, we have consistently demonstrated revenue growth acceleration and following two years of significant investments in our client experience started expanding margins year over year in Q4. I would like to thank our employees for their dedication and contribution to our performance. Our fantastic results are not possible without them. Our differentiated value proposition, built for leaders and configured by industry, continues to resonate in the market. This quarter we introduced a new tagline, Empowering Leaders, that reinforces our commitment to empower frontline leaders to be more effective so they can deliver enhanced business results for their organizations. To further enhance our unique industry configuration, we launched nearly 20 industry-specific product features and over 20 industry integrations this year. Our go-to-market execution has been excellent as we continue to make significant progress expanding our sales coverage, winning with broker referrals, and growing PEPO. The competitive dynamics have remained consistent and demand remains strong, resulting in robust bookings growth of 24% year-over-year. Over 80% of our new business stems from legacy providers, including in-house, regional service bureaus, and legacy providers' ADP and paychecks. Our win rates are at record levels, which is a result of the strong demand for our open, modern cloud platform focused on leaders and configured by industry. In a competitive labor market, we increased sales headcount 23%. We have established sellers in all Tier 1 markets today and will continue expanding coverage in these markets for the foreseeable future. To further leverage our strong sales and marketing flywheel and promote PayCorp's brand on an unprecedented national scale, we secured exclusive naming rights for Cincinnati Bengals Stadium for the next 16 years. Given the powerful viewership of the NFL, Pacor Stadium will reach the largest audiences in America. The sponsorship includes signage, hospitality and events, a community giving initiative, and other multimedia assets. We have been headquartered in Cincinnati for over 30 years and a longstanding partner of the Bengals. As longtime fans, this is a proud moment for our employees and our community. Finally, we continue to expand our modern ATM suite and have increased PEPM $3 or 8% this year to $42. In the last year, we released over 1,200 features powered by the inclusion of more than 500 customer ideas into our solution, demonstrating our commitment to delivering a world-class client experience. Leveraging powerful APIs, PayCore's modern, extensible platform enables rapid development and partner integrations. The developer portal has been highly utilized since its launch in February, with partner integrations growing by 26% in FY22. Moreover, we grew the total number of API endpoints available in our system by 57% year over year. This investment is paying off in greater connectivity and integration for our customers, with total API usage growing 148% since February. Looking ahead to FY23, we will maintain our focus on winning share in the SMB space, delivering sustainable 20-plus percent revenue growth, and expanding margins. We intend to do so through a relentless focus on execution, further penetration in Tier 1 markets, and continued PEPM expansion. We are pleased with our HCM suite's competitive positioning and are now focused on leapfrogging innovation. With that, I'll turn the call over to Adam to discuss our financial results and guidance.