Paycom Software, Inc.

Thank you for attending today's PACOM Software Second Quarter 2022 Quarterly Results Conference Call. My name is Bethany, 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. Please go ahead.

Thank you, and welcome to PACOM's second quarter 2022 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 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. We had another very strong quarter. I'll spend a few minutes on the highlights and then turn it over to Craig to review our financials and our guidance, and then we'll take questions. Our second quarter 2022 revenue of approximately $317 million came in very strong, up 31% year over year, with continued strength in recurring revenue from new business sales. We continue to see strong demand for self-service payroll and automation of human capital management as more companies and their employees embrace innovative solutions like Betty. We have been leading the employee usage initiative for years and our efforts are paying off. When data interactions on our platform are performed by employees, our clients realize the ROI that self-service promises. At the core of our employee usage strategy is Betty, which we believe is how businesses and their employees win in payroll. If any business is doing the employee's payroll for them, That business is doing both itself and its employees a disservice. The only way a company wins at payroll is by having the employees do it themselves. It makes no sense in the year 2022 for any company to continue to transfer data inefficiently through multiple systems or manual archaic processes. Betty's the future of payroll and already over 13,000 clients or nearly 40% of our client base have embraced Betty. That's great progress, but as I've said, I expect all clients will eventually deploy Betty in order to finally experience the correct way to do payroll. We are reinforcing this message through our marketing efforts. Our recently launched new ad campaign calls on businesses and their employees to eliminate unnecessary activities and the early feedback has been very positive. Overall, our marketing plan continues to deliver strong demo leads and brand recognition across our target market range. In particular, we continue to see strong leads from larger clients, which is driving average revenue per client higher and an important contributor to our strong growth. On the sales front, our 54 outside sales team continue to perform well, driving deeper penetration and market share gains into our target geographies. While we estimate we have roughly half of the country covered geographically, we only have approximately 5% of a very large and growing TAM. We have a long runway for rapid growth for many years to come. To sum up, we finished the first half of 2022 with very strong financial results. With our expectation for the second half of the year, 2022 has become a year of growth acceleration and margin expansion. Our differentiated product strategy focused on employee usage and self-service payroll is resonating with prospects, and we are onboarding new clients at a very strong pace. I want to thank our employees for making this quarter another milestone growth quarter. With that, I'll turn the call over to Craig for review of our financials and guidance. Craig.