Paycor HCM, Inc.

Ladies and gentlemen, thank you for standing by. And welcome to PACOR's third quarter fiscal year 2023 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. Please note this conference is being recorded. I would now like to turn the call over to Rachel White, Vice President of Investor Relations.

Good afternoon and welcome to PayCore's earnings call for the third quarter of fiscal year 2023, which ended on March 31st. On the call with me today are Raul Villar, Jr., PayCore's Chief Executive Officer, and Adam Ante, PayCore'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, 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 third quarter results. As employee engagement nationwide dropped to the lowest level in nearly a decade, we are seeing robust demand for our modern and differentiated HCM suite that enables leaders to more effectively coach, optimize, and retain their people. With these essential talent tools, our customers are improving the core strength of their critical frontline leaders and increasing their employee retention by 10%. Revenue grew 32% this quarter as we continue to make great progress expanding our sales coverage and increasing PEPM. This also marks the fourth consecutive quarter of margin expansion, delivering over 400 basis points of improvement year over year, while investing in capabilities that further differentiate PayCore in the market. PayCore's strong results are evidence of consistent execution across the enterprise. We continue to expand our go-to-market capabilities. Seller headcount growth remains on track for 20%. Win rates remain high, average deal size continues to expand, and we are pleased to report another record third quarter for bookings. These efforts are underpinned by investments in brand awareness, lead generation, and broker relationships that drive sales opportunities. We are thrilled with the acquisition of VIRB, a people development platform incorporating behavioral science and proprietary microlearning content to create best-in-class workplace training. The acquisition will enhance PayCorp's mission of empowering leaders by providing them with learning tools to develop their associates with personalized development pathways. Like our other recent acquisitions, we plan to fully integrate FERB's innovative technology into our HCM suite and increase PEPM leveraging our broad distribution channel. We expect the integrated offering to be available as part of our talent management bundle in the first half of fiscal year 24. Within our talent management bundle, we recently completed the integration of our new AI-driven recruiting technology, PayCore Smart Sourcing. We continue to see strong demand for this solution with more than 600 customers scheduled for activation. Building on PACOR's initial artificial intelligence innovation, PACOR smart sourcing, and predictive resignation, we introduced our existing natural language processing and sentiment analysis engines into performance reviews to provide frontline leaders real-time feedback on the language they're using in evaluations to foster more humanized, engaging work culture. We will continue to leverage AI in our platform, to efficiently empower leaders like using generative AI to aid the recruiting process by generating job descriptions, along with several other exciting innovations on our product roadmap. Furthermore, we continue to lead the industry with the most extensive network of partners, deep two-way integrations, and API connectivity points to meet our clients' unique business needs. In the last year, we added over 100 partners to our ecosystem to expand our reach and provide new capabilities and value for our customers. Lastly, we are proud that PayCore was recognized for its modern and differentiated platform with six Titan Business Intelligence Awards for our best-in-class talent management solution, PayCore Smart Sourcing, and insightful analytics that help frontline leaders optimized business decisions. I would like to thank the entire PACOR team for these amazing results. With that, I'll turn the call over to Adam to discuss our financial results and guidance.