Paycor HCM, Inc.

Ladies and gentlemen, thank you for standing by and welcome to PACOR's first quarter fiscal year 2024 earnings goal. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star and zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Rachel White, Vice President of Investor Relations. Please go ahead.

Good afternoon and welcome to PayCore's earnings call for the first quarter of fiscal year 2024, which ended on September 30th. 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 are 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 first quarter results. We had a strong start to the year with revenue growth of 21% this quarter. We drove margin expansion of nearly 200 basis points year over year, while continuing to invest in differentiating our platform, which increases the value of our HCM suite to our customers and expands our future peplum opportunity. The demand environment remains solid for our innovative HCM suite that empowers leaders to unlock the potential of their people and business performance. As we shift up market, clients tend to purchase a more complete solution, and average deal size and attached rates continue to expand nicely. Our deal pipeline is up year over year, and win rates remain strong. Our team is making significant progress on our two strategic growth initiatives, expanding sales coverage and increasing the amount we charge per employee per month, or PEPO. We are on track to deliver on our full-year sales headcount growth target of approximately 20%, and sales productivity is progressing in line with our expectations. This quarter, we announced a new go-to-market channel, leveraging our industry-leading interoperability engine. PayCore has a substantial opportunity to partner with technology firms, such as vertical-focused SaaS solutions. Our existing software partners offer our embedded HCM solution nested within their platform for a seamless client experience. Legacy in-house solutions are ripe for disruption as the HCM requirements continue to increase in complexity and demand for more than just the payroll solution. We are the only HCM provider with an embedded mid-market offering, and we have a growing pipeline of interested partners. The larger embedded HCM partnerships we mentioned last call will increasingly contribute to our revenue growth in the second half of fiscal 2024 and be accretive to margins in fiscal 25. This quarter, we enhanced our modern award-winning HCM suite with valuable new functionality that powers people and performance. Our list pepum of $51 increased $9 or 21% year-on-year, which equates to a peppy of $612. Further strengthening our suite of artificial intelligence solutions, we recently released a new generative AI analytics digital assistant powered by Visitor. The new offering empowers leaders to quickly and easily consume people-focused analytics in a conversational chat interface. We are helping leaders save time and resources by seamlessly providing them with the answers they need to effectively power their teams. We continue to see excellent adoption of the talent solution we launched in fiscal 2021 with revenues up 40% year over year. We're also proud that Nucleus Research recently recognized our talent acquisition suite as a market leader. I'm also incredibly pleased with the promotion of Brett Meagher, the Chief Customer Experience Officer, where she will lead our next generation of service, leveraging data and technology to best serve our customers. In this new role, Brett will unify PayCore's implementation and service and loyalty organizations, further enhancing the company's relentless focus on creating an irresistible customer experience. Lastly, I am proud PayCorp received several Culture Excellence Awards by top workplaces. This is the third consecutive year we have been recognized for promoting DE&I practices, and the first time we were acknowledged for employee appreciation, employee well-being, and professional development. As a human capital management company, we know firsthand how important leaders and culture are in driving employee engagement and business performance. With that, I'll turn the call over to Adam to discuss our financial results and guidance.