Paycor HCM, Inc.

Hello and welcome to the PayCore second quarter 2023 earnings call. If anyone should require operator assistance, please press star zero on your telephone keypad. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It's now my pleasure to turn the call over to VP of Investor Relations, Rachel White. Rachel, please go ahead.

Good afternoon and welcome to PayCorp's earnings call for the second quarter of fiscal year 2023, which ended on December 31st. On the call with me today are Raul Villar, Jr., PayCorp's Chief Executive Officer, and Adam Ante, PayCorp'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, 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 also will 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 PACOR's fiscal second quarter results. PACOR's modern, open platform with differentiated tools for leaders and industries continues to resonate with clients and win in the market. Revenue grew 29% this quarter, driven by record bookings and ongoing PEPM expansion. Adjusted operating income margin increased by over 300 basis points year over year, and we believe there is significant opportunity to drive further expansion as we scale. Based on these robust results and our optimistic outlook for the remainder of the year, we are once again raising our guidance which Adam will discuss in more detail. Our go-to-market motion continues to deliver excellent results as we strategically expand sales coverage in Tier 1 markets, leverage influential broker relationships, and continue to grow our average deal size. We are ahead of schedule with sales hiring and already achieved a low end of our 20-plus percent seller headcount growth target for the year. We like our sales staffing level and will continue to evaluate additional hiring in the second half. We offer the only modern cloud platform empowering frontline leaders to be more effective by providing the insights and tools required to source, attract, develop, and retain their employees. This quarter, we introduced the Core Leadership Dashboard, that provides actionable information to help transform managers into effective frontline leaders. The Core Leadership Dashboard surfaces real-time employee insights and evaluates leadership effectiveness by gathering feedback on how well they coach, optimize, and engage their team. Armed with these insights, companies will understand leader effectiveness and be able to tailor ongoing leadership development. Given the continued tightness in the labor market, our client's top priority remains finding and retaining talent. This quarter, we closed the Telenia acquisition and began beta testing PayCore Smart Sourcing, which leverages AI to simplify and streamline the sourcing efforts of frontline leaders to find skilled and diverse talent. Interest among our client base has been robust, and early feedback is extremely positive. With the addition of PayCore Smart Sourcing, our full suite of solutions is $44 PEPM, and is the most comprehensive H-team offering available in the SMB market. Our platform's modern architecture enables rapid integration of point solutions, such as Telenia, that provide deeper functionality than traditional suite providers. With nearly 90 different public API endpoints available to power integrations, PACOR offers the most modern interoperability solution with a broad array of partners for our clients. We are incredibly proud PACOR was distinguished as a top workplace USA by Energage for the third year in a row. Energage's Top Workplaces program has a 15-year history of surveying over 20 million employees to help build and brand top workplaces. Results are based on 15 cultural drivers that are proven to predict high performance against industry benchmarks. This award underscores our commitment to exemplify the cultural best practices that impact associate engagement and business performance. Let me close by reiterating how confident we are about PACOR's outlook. The labor market remains tight as non-farm payrolls continue to increase, job openings are at elevated levels, and workforce participation remains low. Modest changes in unemployment or job openings are unlikely to materially impact our business as most of our revenue growth is derived from new business and the market is still in the early stages of adopting modern cloud-based HCM solutions. Furthermore, HCM is highly defensible as our value proposition is mission critical to attracting, paying, and retaining great talent, while also driving a compelling return on investment for our clients. Lastly, I would like to thank all PayCore associates for their efforts through this calendar year-end, especially our implementation, support, and success teams, who during our busiest time of year provided an amazing year-end experience for our clients. With that, I'll turn the call over to Adam to discuss our financial results and guidance.