Paycor HCM, Inc.

please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce you to your host, Rachel White, Vice President of Investor Relations. Thank you, Rachel. You may begin.

Good afternoon and welcome to PACOR's earnings call for the fourth quarter and fiscal year 2024, 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 site. Today's call is being reported 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 fourth quarter and full year results. Our unique value proposition of empowering leaders to drive people and business performance continues to win in the market and help drive revenue growth of 18% for the quarter. For the fiscal year, our team executed against our strategic growth initiatives. increasing the average number of employees on our platform by 9% and expanding the amount we earn per employee per month, or PEPM, by 6%, resulting in 19% revenue growth. We delivered significant adjusted operating income and free cash flow margin expansion this fiscal year while strategically investing in our platform and customer experience. Demand remains healthy as most employers are struggling with antiquated and incomplete HCM tools. Top of funnel metrics, including leads and first-time sales appointments, increased significantly year over year, and our win rates remained elevated as our value proposition resonates in the market. We continue to focus marketing investments and sales hiring on in the 50 largest cities in America, where we see the most opportunity. Our sales team grew 9% this year to 600 sales professionals, which increased our sales coverage in the 50 largest US cities from 52% to 55%. Average tenure, which drives seller productivity, increased 20% among our field sellers. A core component of our go-to-market strategy is developing and maintaining partnerships with key centers of influence. Benefit brokers help us identify employers that are dissatisfied with their legacy HCM tools and influence nearly half of our field bookings this year. Our mid-market product, client experience, and sales investments over the last few years continued to pay off as our average customer size and average deal size expanded for the third consecutive year. Since the IPO, the average size of our new mid-market customers increased 30%, helping to grow our average deal size by 55%. We are efficiently extending our distribution via the indirect embedded channel we announced earlier this fiscal year. Our strategic partners enhance their revenue per client and customer retention by offering a modern embedded HCM solution to their clients and prospects. In this past quarter, we continued converting our third partner's portfolio and the three new partners we announced last quarter began selling. We also signed several new partners this quarter, tripling our indirect partners over the last year. Our team also continued expanding our award-winning HCM platform with valuable new capabilities for our customers. Our product investment remains focused on deepening our core platform, further enriching our talent solution and enhancing the connectivity of our platform. This year, we released technology that empowers leaders such as pay benchmarking, pay core paths, and labor forecasting, and increased the value of our suite by $8 to $53. Within our core platform, we recently launched a new compensation management solution that streamlines budgeting and pay cycles and adds another $2 to our suite. Our collaborative tools foster alignment across teams, helping leaders ensure equitable and competitive compensation within budget while driving employee engagement. Revenue from our robust talent suite increased nearly 40% again this fiscal year. validating our unique value proposition of empowering leaders to coach, optimize, and retain top talent to drive business results. Using our unrivaled talent tools, frontline leaders are improving employee engagement, which is increasing employee retention by 10% and helping drive better business outcomes. We also significantly advanced our interoperability strategy this year. According to Finch, half of HR professionals leverage seven or more employment systems, and most of these applications are not integrated, leading to errors and inefficiencies. API use on our platform increased approximately 300% this fiscal year, demonstrating growing demand to extend HCM software to other business applications. We provide customers unrivaled flexibility to seamlessly connect their data and systems, enabling leaders to automate time-consuming, error-prone manual tasks. We have 300-plus pre-built integrations in our marketplace and made it easier to create custom integrations by increasing the number of API endpoints and our developer portal by more than 40% this fiscal year. The innovative developments we've made in our HCM platform continue to garner industry recognition. In May, PACOR won five Titan Business Awards spanning HR, analytics, workforce management, and talent. These tools empower leaders to connect and automate their back office. freeing them up to focus on what matters, building winning teams and driving business results. As we entered fiscal 25, we reflected on our strategy execution progress since the IPO. Over the last three years, we have grown revenue by over 85%, increased and adjusted operating income by over 130%, and generated nearly $50 million more in free cash flow, while expanding our sales capacity by greater than 60% and advancing our industry-leading HCM platform, growing our list pepum by more than 50%. We have made tremendous progress, and the opportunity before us is significant. On our path to $1 billion in revenue, we remain confident in our ability to deliver attractive growth while accelerating margin expansion. We believe there is a long runway to drive durable growth given the size of our market opportunity and the ongoing success we have had displacing legacy solutions, which represents 75% of our bookings. Our go-to-market motion has strong momentum as we are staffed to deliver our fiscal 25 targets and encouraged by how sales tenure and retention are trending. We have significant room to drive leverage as we scale, and our top priorities are to drive sales efficiency and accelerate cash conversion. As such, we are introducing a new long-term adjusted free cash flow margin target of greater than 20%. We will do that while continuing to invest in our strategic growth initiatives, namely adding employees through sales expansion and increasing PEPM through product innovation. This progress wouldn't have been made possible without the efforts of our dedicated associates. I'd like to thank the team for their hard work and support in delivering these strong results. Now I'll turn the call over to Adam to discuss our financial results and guidance.