Paycom Software, Inc.

Good afternoon. Thank you for attending today's Paycom Software First Quarter 2022 Quarterly Results. My name is Tania, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 on your telephone keypad. I would now like to pass the conference over to our host, James Sanford, Head of Investor Relations with Paycom. Please go ahead.

Thank you, and welcome to PACOM's first quarter 2022 earnings conference call. Certain statements made on this call that are not historical fact, 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. 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 will now turn the call over to Chad Richardson, Paycom's President and Chief Executive Officer. Chad?

Thanks, James, and thank you to everyone joining our call today. I'll spend a few minutes on the highlights of the quarter, then I'll focus on the opportunities that I expect to drive strong performance going forward. Following that, Craig will review our financials and our guidance, and then we'll take questions. Our 2022 first quarter revenue of approximately $354 million came in very strong, up 30% year over year, and was well ahead of expectations thanks to strong growth in recurring revenue from new business sales and modestly better revenue from seasonal forms, filings, and adjustments. This quarter has set us up really well to deliver strong financial performance for the remainder of the year, and we are raising our full year guidance as a result. With our new full year outlook for revenue growth and adjusted EBITDA margin, I now believe we can exceed the rule of 65. Employee usage continues to trend higher as more companies embrace our self-service solutions and push ownership of the data out to the employee. Increasing employee usage is a key component of the ROI that our clients realize, and we believe our employee usage strategy is a competitive advantage and a driver of our very strong growth. Already, well over a quarter of our clients have implemented and are in the process of implementing BETI, our most advanced employee usage payroll experience to date. In less than a year, over 10,000 of our clients have embraced Betty as the right way to do payroll. Betty is fundamentally a better way to run all payroll processes to the benefit of the employer and employee. We will continue to innovate Betty to deliver even more value to our clients, making it even more compelling. Betty is the future of payroll. Our marketing plan continues to perform very well. delivering strong demo leads and brand recognition across our target market. We are also having a lot of success with our retargeting efforts and leveraging our digital assets. We recently launched a new ad campaign highlighting how employees have been given the wrong tools for their jobs. With Paycom, employees have the right HCM tools at their fingertips. Our marketing efforts target employee usage at both large and small clients, and we're having great success attracting new clients which is a key component of our rapid revenue growth. On the sales front, I'm pleased with the execution and progress we are making to further penetrate the markets we are in. I just returned from our President's Club meeting in Florida with our top sales reps, and it was fantastic to see how everyone is energized and aligned with our go-to-market strategy. Just a few years ago, we celebrated leading sales reps who sold over one million in a year. Today, we are celebrating sales reps exceeding $2 million in sales in a year. Polly Furrow has done an outstanding job aligning the sales organization and the collaboration with the marketing organization is working very well. In fact, both organizations recently received best marketing department and best sales department awards. These awards are in addition to the awards we received for best companies for women and Forbes list of best midsize employers and top workplaces. I'm more confident than ever that we have the right team and culture in place to achieve our growth expectations. As a reminder, we only have approximately 5% of a very large and growing TAM and a long runway for rapid growth for many years to come. Also, I want to say thank you to John Evans who was with Paycom for eight years and was our COO for four of those years as he took over for Stacey Pezzle. John did a great job for this company. Like anyone who does a great job for Paycom, their DNA exists in the company long after they're gone. We're always excited to turn over the department to the next generation of leadership, such as Justin Long, and we know he'll take this group to the next level, as has been proven every time we make strategic moves like this. To sum up, we kicked off the year with a great first quarter and are entering the second quarter with very strong momentum. Our differentiated strategy, our people, and the value we are delivering to our clients are fueling our long-term growth. I want to thank our employees for their hard work and exceptional performance this quarter. With that, I'll turn the call over to Craig for a review of our financials and guidance. Craig?