Paycor HCM, Inc.

Ladies and gentlemen, thank you for standing by and welcome to PACOR's fourth quarter and 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. As a reminder, 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 PACOR's earnings call for the fourth quarter and fiscal year 2023, which ended on June 30th. On the call with me today are Raul Villar, Jr., PACOR's Chief Executive Officer, and Adam Yancey, 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, 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 fourth quarter and full year results. Revenue grew 26% for the quarter and 29% for the year, driven by solid execution against our strategic growth levers, namely expanding our sales coverage and increasing PEPM. We're also expanding margins as we scale and delivered nearly 400 basis points of improvement year over year while investing in capabilities that further differentiate Paycor in the market. I would like to take this opportunity to thank each of our associates for their role in contributing to these outstanding results. Demand remains strong for our modern, innovative ATM solution that empowers leaders to unlock the potential of their people in business performance. Using our unrivaled talent tools, frontline leaders are improving employee engagement, which is increasing employee retention by 10% and helping drive better business outcomes. Our team has consistently executed against our go-to-market strategy. We expanded our sales force by 22% to approximately 560 sales associates. Most of our in-market sales hires have been in tier one cities, increasing our tier one sales coverage in the largest 15 cities in America from 28% to 36%. Sales coverage refers to the optimal number of prospects per seller. and we could effectively still double or even triple the number of sellers we have today. Brokers remained an integral part of our go-to-market motion and influenced over 40% of our field bookings this year. We continue to strategically shift up market where clients tend to purchase a more complete solution. And as a result, average deal size continued to expand nicely this year. Our pipeline and win rates remain strong, And we are proud to announce a record Q4 bookings performance, which was our highest quarter on record. All these factors contributed to robust bookings growth of 23% year over year. We continue to expand our modern ACM suite by launching differentiated technology that powers people and performance. In the last year, Liz Peplum increased $3 or 7%, it now stands at $48, which equates to a peppy of $576. This month, we introduced Engage, which is a single platform to elevate how leaders communicate with and motivate their team. The new solution empowers leaders to share company news, communicate with teams, and recognize employees across both mobile and web applications. Further strengthening our suite of artificial intelligence solutions, we also launched an AI-enabled job description generator. This offering strengthens our suite of artificial intelligence solutions, which includes pay core smart sourcing and predictive resignation. By merely providing a job title and required experience, the integrated solution will create compelling job descriptions empowering leaders to attract and hire top talent faster than ever before. The robust development of our interoperability engine is a key differentiator of our modern HCM platform. 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 130 marketplace partners and nearly doubled the number of API endpoints available in our system. For fiscal 24, we are going to continue to focus on execution. For us, that means continuing to increase sales coverage to capture share in the SMB space and expand PEPM with innovative solutions that empower frontline leaders. Successful execution of this strategy will position us well to achieve our target of 20% plus sustainable revenue growth while expanding margins with greater free cash flow generation this year. With that, I'll turn the call over to Adam to discuss our financial results and guidance.