Paycom Software, Inc.

Good afternoon. Thank you for attending today's PACOM Software Third Quarter 2022 Quarterly Results. My name is Hannah, 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 third 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 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. And now I'll 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 delivered another very strong quarter with a focus on high-quality revenue growth that produces world-class margins. 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 third quarter 2022 revenue of approximately $334 million came in very strong, up 30% year over year with rapid recurring revenue growth driven by new business sales. Demand for self-service solutions that enable employees to interact directly with their data continues to be strong and feedback on self-service payroll remains very positive. At the center of our automation strategy is Betty, which is how businesses and their employees win in payroll. Betty is the future of payroll, and already nearly half of our clients have embraced self-service payroll. Our go-to-market strategy includes 54 outside sales teams that focus on penetrating their respective territories, and we augment their sales efforts with marketing and advertising that drive lead volumes, brand awareness, and a call to action. Our efforts are producing strong demo leads, and our new brand campaign is driving strong recognition across our target market range. We are also seeing a surge in organic lead referrals coming directly from employees. As more employees experience Betty and Paycom's comprehensive employee self-service solutions, many are seeking to bring us into the current workplace. Just like in the consumer world, Employees don't want to go backwards in technology, and with Paycom, employees get the best HCM user experience and the most control over their data interactions. Employee users are becoming Paycom advocates, and when they get promoted in their current position or move on to a new organization, they are becoming strong influencers. We have a long runway to go, and our multifaceted go-to-market strategy should help deliver rapid new business growth for many years to come. To sum up, we are delivering high quality profitable revenue growth. Based on our strong financial results to date and expectations for the remainder of the year, achievement of our full year guidance for 30% revenue growth and 41% adjusted EBITDA margin puts us back into the pre-pandemic rule of 70. Our differentiated product strategy focused on employee experience and self-service payroll is producing outstanding fundamentals with accelerating revenue growth in 2022, expanding adjusted EBITDA margins and strong cash flows. I want to thank our employees for their focus and commitment to Paycom with that. I'll turn the call over to Craig for a review of our financials and guidance. Craig. Thanks, Chad.