Paycom Software, Inc.

Good day and thank you for standing by. Welcome to the Paycom Software 3rd Quarter 2021 Quarterly Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star zero. I would now like to hand the conference over to Mr. James Samford, Head of Investor Relations. Please go ahead.

Thank you, and welcome to PACOM's third quarter 2021 earnings conference call. Certain statements made on this call that are not historical facts, including those related to our future plans, objectives, and expected performance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent our outlook only as of the date of this conference call. While we believe any forward-looking statements made on this call are reasonable, actual results may differ materially because the statements are based on our current expectations and subject to risks and uncertainties. These risks and uncertainties are discussed in our filings with the SEC, including our most recent annual report on Form 10-K, and our most recent quarterly report on Form 10-Q. You should refer to and consider these factors when relying on such forward-looking information. Any forward-looking statement made speaks only as of the date on which it is made, and we do not undertake and expressly disclaim any obligation to update or alter our forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law. Also during today's call, we will refer to certain non-GAAP financial measures, including adjusted EBITDA, non-GAAP net income, adjusted gross profit, adjusted gross margin, and certain adjusted expenses. We use these non-GAAP financial measures to review and assess our performance and for planning purposes. A reconciliation schedule showing GAAP versus non-GAAP results is included in the press release that we issued after the close of the market today and is available on our website at investors.paycom.com. I'll now turn the call over to Chad Richardson, PACOM's President and Chief Executive Officer. Chad?

Thanks, James, and thank you to everyone joining our call today. I will spend a few minutes on the highlights of our third quarter 2021 results and our progress on key initiatives. Following that, Craig will review our financials and our guidance, and then we will take questions. We delivered very strong third quarter 2021 results with revenue of $256 million, representing robust year-over-year revenue growth of 30.4%, which was above the top end of our guidance range. We continue to see strong demand for our products across our target market, and we are having great success attracting new clients. We have reinvested and will continue to reinvest revenue upside into the business while still delivering attractive adjusted EBITDA margins. With these strong results, we are once again raising our full-year guidance, which Craig will discuss in more detail. Our innovative solutions continue to gain popularity, and we are being recognized by industry organizations for their impact on the human capital management industry. In September, PACOM was once again awarded the 2021 Top HR Product Honor at the HR Technology Conference for our newest innovation, Betty. This marks the third consecutive year for PACOM to receive such honors, which included the Direct Data Exchange in 2019, Manager on the Go in 2020, and now Betty in 2021. It is precisely the combination of these three industry firsts coupled with our comprehensive single database that is transforming the human capital management industry and turning employee usage and easy-to-use solutions into key buying criteria for clients. VETI is a self-service payroll technology that allows employees to do their own payroll, and we are having great success in the market. As a reminder, with VETI, employees submit their own time work and make their own benefit selections, schedule deductions, manage tax statuses, remit expenses, request time off, and do all the things that an employee does to calculate a check. VETI does the rest and works with the employee to ensure a perfect payroll for them prior to the payroll. Employees doing their own payroll is the only way payroll should be done. I am very pleased with the market response to Betty, and I continue to expect all clients to eventually deploy Betty. Our advertising and marketing efforts continue to deliver strong demo leads that are fueling our revenue growth, and we will intend to continue to spend aggressively in the coming quarters to further expand our market share in the large and expanding HCM TAMP. Our advertising strategy is working, and we are deliberately reinvesting revenue upside into advertising, marketing, and product innovation. You've heard me say consistently that we are willing to trade a point of margin for a point of growth, but we are unwilling to trade a point of margin for a point of nothing. And that philosophy has served us well over the years, and you can see it in our results. On the sales front, we are seeing success with both smaller and larger companies. I'm particularly pleased with the traction we are having in our recently expanded target market range of companies with up to 10,000 employees, where our messaging around ease of use and the employee self-service is resonating. Finally, it's great to see all the Paycom faces back in the office, even if behind masks. We have successfully transitioned nearly all employees back to our offices around the country, and it is great to see we are getting our office culture back. While we accomplished extraordinary things working remotely, I believe we're even better together. Many of our new hires are experiencing for the first time the daily buzz and enthusiasm that makes Paycom a unique place to work. While our sales teams are still selling virtually, we are already seeing the benefits of everyone being safely back in the office, sharing best practices, and collaborating more closely. In summary, Q3 was a very strong quarter driven by record new client revenue. The investments we've made throughout 2020 and to date in 2021 have made PACOM more differentiated than ever, and we are seeing the benefits across the sales, service, and product organizations. As a reminder, we have approximately 5% market share of a growing TAM and a long runway ahead of us. I want to thank all of our hardworking and dedicated employees for their grit and commitment to success. With that, I'll turn the call over to Craig for a review of our financials and guidance. Craig.