Paycom Software, Inc.

Good afternoon. My name is Lauren and I'll be your conference operator today. At this time, I would like to welcome everyone to Paycom's first quarter 2025 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 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 start made by the number two. Thank you. I will now turn the call over to James Samford, Head of Investor Relations. You may begin.

Thank you. Welcome to PACOM's earnings conference call for the first quarter of 2025. 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 statement, whether as a result of new information, future events, or otherwise, except as required by applicable law. Also during today's call, we 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'll 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'll focus my comments on some of our achievements in the first quarter and the progress we've made executing on our 2025 plans. I'll then turn it over to Bob for a review of our first quarter results and an update of our full year guidance. We will then take questions. With that, let's get started. We are executing very well and delivering strong ROI for our clients as they are experiencing the benefits of our full solution automation strategy. Recent product enhancements and client focused initiatives are driving positive trends across our client usage metrics, and our net promoter score increased another 16 points year over year. We have the most automated solution in the industry, and our clients routinely attest to this. Our award-winning solution, GON, is a perfect example of how Paycom simplifies tasks through automation and AI. GON is the industry's first fully automated time-off solution that decisions all time-off requests based on customizable guidelines set by the companies Time off rules. Before GON, 10% of an organization's labor cost went substantially unmanaged, creating scheduling errors, increased costs from overpayments, staffing shortages, and employee uncertainty over pending time off requests. According to a Forrester study, GON's automation delivers an ROI of up to 800% for clients. GON continues to receive recognition. Most recently, Fast Company Magazine named Paycom one of the world's most innovative companies for a second time. This honor specifically recognized GON and is a testament to how Paycom is shaping our industry by setting new standards for automation across the globe. Another example of automation that is changing our industry is Betty. Our award-winning payroll solution continues to be a major selling point for organizations looking to reduce the labor needed to process payroll. by up to 90% and also cut the time spent correcting payroll errors by up to 85%. Betty allows clients to focus resources on profit driving initiatives as it eliminates human involvement in non-revenue generating tasks like post payroll adjustments, check reversals, voids, ledger corrections, and more. Thanks to Betty and the importance of perfect payrolls, We're also successfully getting former clients back onto the Paycom platform. We recently brought back a 500 employee healthcare company who quickly realized the pain they brought on themselves by switching to another provider. With this other provider, this client lost the transparency and ability to fix errors before they became problems. In fact, their employees were some of the biggest advocates and encouraged this client to return to Paycom because they missed having control over the accuracy of their pay. Once employees experience Betty, they don't want to go backwards in technology. The client returned to us within nine months and went from processing payroll in four days with their previous vendor to four hours with Betty. Sales continues to break records, including the first quarter where we saw a meaningful increase in book sales. We also saw an increase in the number of units sold for the quarter as compared to the same period last year. One of the new clients we onboarded was a 2,500 employee restaurant group who wanted a single, easy to use software solution. Working across nearly 80 locations, this group is now utilizing Betty and the rest of the Paycom suite to automate tasks that were previously performed across numerous systems, which created data inconsistencies. More and more businesses like this one are abandoning disparate decision-making processes for more consistent, scalable, and automated solutions. Organizationally, Paycom was named one of America's best large employers by Forbes, and Newsweek ranked us as one of the most trustworthy companies in America for a fourth consecutive year. Both are testaments to the strategy and execution of our organization. I'd like to thank our employees for their hard work and dedication that they demonstrate every day. We have a strong balance sheet with high margin organic growth. We are building on strong momentum, and I'm very pleased with how this is setting us up for even stronger results through the rest of 2025 and beyond. With that, let me turn it over to Bob.