Paycom Software, Inc.

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

Thank you, and welcome to PACOM's earnings conference call for the third 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. I will now turn the call over to Chad Richardson, Paycom's CEO and President. Chad?

Thanks, James, and thank you to everyone joining our call today. I'd like to discuss how Paycom's automation continues to transform our industry Then I'll review some recent client wins and industry recognition before turning it over to Craig, who will review our financials and guidance before taking questions. We are investing in our highly differentiated automation platform that is delivering ROI for our clients. 20 years ago, user buyers bought the Paycom system because they wanted to do more for themselves. And today, people buy Paycom because they wanted to do more for them without the need for day-to-day involvement in the software. We already have the most automated system in the industry, and we are rapidly moving toward full solution automation, driving even more ROI for our clients. Our award-winning solution, Gone, is just one example of how Paycom simplifies tasks through automation. Gone was recently named a top HR product by HR Executive Magazine, and for good reason. Gone is the industry's first fully automated time-off solution that decisions all time-off requests. Before GON, nearly all time off decisions were unmanaged. A recent Forrester study found that GON can generate an ROI of up to 800%. By automating time off decisions, individual managers save nearly a week of unproductive hours annually. In addition, the study found that on average, companies using GON save nearly five weeks of unproductive time in the areas of HR, finance, and accounting every year. Without GON, 10% of an organization's labor costs go substantially unmanaged, resulting in increased costs from overpayments, errors in scheduling, staffing shortages, and operational disruption. One example of a client utilizing GON is an auto dealership with nearly 500 employees spread across multiple locations. GON saved this client approximately 200 hours of unproductive time per week. While ensuring a consistent time off request process and apology management across the organization. With Gone, this client reports having reduced decision fatigue among managers and team leaders. Not only is Gone automating mundane tasks, it is also having a positive impact on employees. Betty continues to be a differentiator and clients using it are experiencing its benefits. We recently onboarded a 1,000 employee hospital organization with over 20 locations. Utilizing Betty, this bilingual workforce has already reduced their payroll processing by 85%. This organization also appreciates that their managers benefit greatly from Manager on the Go, which consolidated their managerial task into a single app, streamlining approvals, PAF management, applicant tracking, and more. This client currently boasts a 99.7% DDX score, reflecting the user-friendly power of Paycom software for their organization. Our development teams have been focused on automating tasks across the platform that are easily adopted by our client base. Because of this focus, both this quarter and throughout the year, we've launched more products and enhancements than any time in our company's history. There are several examples of automation we recently launched that are having a big impact on HR and recruiting departments. One such automation is our position management enhancement that automates reporting structure and hierarchy changes needed to individual employee changes such as promotions and transfers or large-scale organizational changes such as an acquisition or restructure another example of automation is how we enhanced our recruiting module the advances in our recruiting product have dramatically increased the application completion rates and significantly reduced time to fill what was already a very fast time to apply process has now been reduced by 50 percent internally We developed and deployed an AI agent for our service team. This technology utilizes our own knowledge-based semantic search model and enables us to provide service to help our clients more quickly and consistently than ever before. The AI agent continually improves over time and it's having an impact on helping our clients achieve even more value out of their relationship with Paycom. By utilizing our own AI agent, we were able to connect our clients to the right solution faster. improving our immediate response rates by 25% without any additional human interaction. As a result of our continued focus on solution automation, ROI achievement, world-class service, we also increased our net promoter score 24 points year over year. On the sales side, we are seeing continued momentum, particularly with our outside sales reps. System automation matters more to business than ever before, and our sales force is delivering on the market's needs. which is driving our goals. We still have less than 5% of the addressable market. We remain focused on executing strategies that will produce extremely high ROI and automation for our clients while continuing to differentiate our solution to automation. Finally, I'm pleased that Paycom was recognized as one of the best employers for tech workers by Forbes and one of the world's best companies overall by Time Magazine. These testaments showcase our culture and the impact our technology is having on workforces all over the globe. We are executing on our 2024 plan, and I'm very pleased with the progress. Our success in 2024 will set the foundation for future growth. With that, let me turn it over to Craig. Craig?