Paycom Software, Inc.

Good afternoon. My name is Terry and I will be your conference operator today. At this time, I would like to welcome everyone to Paycom's first quarter 2024 financial results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. Thank you. I will now turn the call over to James Sanford, Head of Investor Relations. You may now begin.

Thank you and welcome to PACOM's earnings conference call for the first quarter of 2024. 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, 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 I'll turn the call over to Chad Richardson, Paycom's co-CEO and president. Chad?

Thanks James, and thank you to everyone joining our call today. I'll kick off the call with a few highlights from the quarter, and then I'll turn it over to Chris to discuss client trends and recent awards. Craig will then review our financials and our guidance before taking questions. Our product vision centers around eliminating redundant HR work, eliminating cost, and allowing users to recoup valuable time in their day to add value to the organizations. In addition to our single database, which simplifies the client experience and reduces integration costs, another key PACOM differentiator is that employees input and validate their data directly into our HCM solution. With PACOM, employees do their own payroll, fixing errors before they become problems. On our last call, we highlighted three key focus areas in 2024, solution automation, client ROI achievement, and world-class service. Led by Betty, our solution automation initiatives continue to generate tremendous opportunities for our clients. We released more product enhancements in the first quarter than in the previous two quarters combined. We are leveraging AI and decisioning logic across our solution, adding more value and eliminating mundane non-revenue generating activities for our clients. A recent new client told us that prior to implementing Betty, it would take over two days to process payroll. With Betty, they complete the process in only 90 minutes. We've also automated time off decisioning, allowing managers across the country to focus on value added activities. With GON, our time off product leverages decision logic to automatically approve, deny, or warehouse time off requests by employees. This is a better experience for employees and delivers both time savings and efficiencies for workforce management and scheduling. On the client ROI achievement front, our success with Betty results in increased client ROI and is resonating with more and more businesses in the marketplace. Our clients already receive industry-leading ROI, and we are focused on accelerating our product roadmap to drive even more value. Now with Betty, clients regularly tell us that their company runs much smoother when their employees do their own payroll. And I know this sentiment is shared across the client base of Betty users. We are changing the way payroll is done and our clients are telling us we're right. On the world-class service front, we are meeting clients where they live to help identify and close any gaps they might be seeing between their respective total available ROI and where they stand today. We are strengthening our client relationships with service and value achievement, and I want to thank our employees for their incredible efforts on this front. It is working. Our go-to-market strategy continues to emphasize the differentiated nature of our offering and the significant benefits of doing your own payroll with Paycom. We are getting more leads thanks to Betty, and we are seeing solid demand for our solutions. At our recent sales incentive trip, we recognized our first sales rep to sell over $4 million in annual new business. It wasn't that long ago that we celebrated the first sales rep to sell $1 million in annual new business. We believe our unique value proposition separates us from the other disparate offerings in the market that require complex integrations and manual entry activities. We continue to make meaningful progress on the international front as we build on the momentum we achieved in 2023 and early 2024 when we released our global HCM product and announced the launch of Native Payroll in Canada, Mexico, and the United Kingdom. Today, we are pleased to announce that we have developed and are launching our Native Payroll solution in Ireland. In less than a year since we announced our international journey, We are already seeing US-based companies with an international presence look to Paycom as a global provider. While still early, I'm pleased to see that all the work on our international strategy is paying off. In fact, we recently won a large international sports organization thanks to our multi-country payroll and HCM offering. This client will process payroll with Betty in multiple countries. And this win represents another proof point for our international strategy. While this is a great win for PACOM, I want to be sure to note that we remain highly focused on our U.S. growth as we still have only an estimated 5% of the total addressable market. To sum up, I'm pleased with the progress we are making on our strategic initiatives, and I look forward to building on the momentum we are seeing. With that, let me turn the call over to Chris.