PAYC - Earnings call transcript Q2 2019

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Operator

Good afternoon, and welcome to the Paycom Software Second Quarter 2019 Quarterly Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to James Samford, Head of Investor Relations. ahead. go Please

James Samford

regarding good of XXXX and this welcome Paycom's Act statements including to call expected XXXX. objectives Thank are of Private performance, Conference afternoon, Securities Call. Quarter forward-looking those facts, historical Earnings are the during future Certain Second plans, that and meaning you, within not and our the statements conference Reform made Litigation

of statements the only date represent conference this forward-looking These as call. our of outlook

make statements the uncertainties. forward-looking are presentation way on any in believe or could because this risks reasonable, made materially our we statements results actual and While subject to and are have based current differ expectations are

risks and XX-K. on These with Form discussed including filings annual our the Exchange report uncertainties Securities and our are in Commission, most recent

to and when date You undertake do future information. as information, only and such forward-looking may factors statements, new law. forward-looking made, forward-looking the and a as except events or disclaim of obligation consider whether result otherwise, is on we by these Any of applicable it or required to relying statements update speak any as alter not our expressly which should on refer

investors.paycom.com. versus non-GAAP today, issued our included performance our to course at including is and gross margin to after will A market call, today's non-GAAP financial review adjusted of and reconciliation expenses. assess results income, close available certain certain and non-GAAP measures, Also, which we the for GAAP measures planning the on profit, showing that these the the adjusted during financial net of non-GAAP press schedule gross EBITDA, refer adjusted website adjusted in use is release we purposes. We

and Officer. over turn Paycom's Richison, Chief the now Chad to I'll Executive Chad? call President

Chad Richison

Human will on you and remarks reviewing their taking perspective James, to software have I'll the today. and discussing you highlights, our begin Exchange before financials and on strong are the I'll workplace. our joining redefining by groundbreaking my employees usage call employee with Capital Data finish another Craig in quarter by HCM some provide review how Management Direct questions. business everyone initiatives and with relationship your outlooks, us or and our additional some thank Thanks,

results remain came adds of comparable XX.X% positioned excellent robust full for The to growth QX the new approximately representing second business strong, year and in $XXX thanks prior well quarter year. period. revenue was we million, versus another

adjusted Our of a $XX.X EBITDA XX% million represented margin.

our the his and With results momentum, in which guidance discuss year, Craig remarks. these raising full will detail are for in more we

the can and investments their ROI satisfaction. job faster and Employee With the of of embracing benefit employee HCM ever. better Paycom, increased the higher from clients industry productivity measure is future and our our engagement, and on their estimated transformation technology usage employees they are than digital HCM

Our as strong early stages. well driving employee all for released early into we changes employees, but the growth, all data in transformation input HCM believe our sales our our as investments software highly by Last enhancement other that usage Data DDX to clients, we data database differentiated typically Exchange made client offering duplicative and changes directly digital Direct the or representatives. reports of all still this by a are is quarter,

Paycom the employee as as of pace financial data eliminating or digital fast slow the go usage traction, clients their want. our gains contract can input. duplicative choose they As and Clients benefits these as of transformation

at we ago. embrace However, transformation a are pace the clients faster than today seeing year a

HR industry, professionals our DDX, appropriate let usage like alone no one knew in look employee what measure. or how the Before to

and it. can embracing they they are Now

Turning to our sales initiatives.

employ online. sales we group. to are buying becoming our of such will change This industry, strategy our traditional companies teams, sales with also innovating non-traditional teams habits sales to as increasingly continuing buying innovate continue and inside across more to combination sales In as offering, our a means comfortable addition we product the

outside lead of to our embracing most We initiative model that and this We one efforts. growth this our brought found existing sales successful clients our non-traditional sales buying complement because inside recently sales prospective online. are managers our sales we will believe sales have aid and initiative,

We sales also recently new in opened a New office Orleans.

productivity. we our the coming is mass to our of existing expand their While I that sales sheer driver sales want emphasize, force continue the of growth sales to footprint, from and largest our increased

technology the and talent new our on development products to side, to On add focus outstanding enhancements. teams to we software continue

pleased We are with experiencing a lot and product very the I'm line. success, of

clients. Ask released of and recently line direct technology. self ask representatives of our company to receive timely convenience their communication tool to gives through all all we questions newest Paycom work of service fact, In This the answers, Here of employees a related

for I'm call employees phone email, such ensures many that foot to traffic. through increase resource one excited up about companies benefits, the needs all the their follow or employees eliminating addressed, and communication gain online actions are and as added taken are

employees business has with ask to, usage appropriate which Now them client initiatives. employee the expertise. further relevant been need This exactly enhances who strengthens and the clients any question, functionality to to to experience to routed don't questions empowers representative the this employee-employer ask latest know most innovation as the

the our transformation positions value employees to Paycom the To us digital HCM their and is of which leading and the well clients believe throughout year to beyond. conclude, deliver industry, we

to call updated our and that, With Craig? over I'll of financials Craig guidance, turn a for review the

Craig Boelte

comments everyone be discuss second for quarter quarter certain results that to a non-GAAP would on review our I full I and for Before as XXXX, basis. outlook my measures to year XXXX, third the will well related as our financial like remind

pleased we XX.X% of growth revenues over second million, with prior mentioned, with were $XXX.X total quarter representing of period. Chad our results, As year the

continues growth business by revenue Our driven to be new wins. primarily

was total XX.X% XXXX, million of quarter for of prior for XX% $XXX comparable year Within total from recurring the second and the revenues, period. revenue representing revenues quarter growing the

quarter second million, for of $XXX.X representing was an margin profit gross gross the adjusted adjusted Total XX.X%.

of be our will of to that margin expense quarter of XXXX. quarter quarter XXXX, sales as were Adjusted Total XXXX range second for second XX% the to full compared $XX.X in million $XX the to we within administrative of for was the For XX%. second million million, the as adjusted a marketing XXXX. expenses and year adjusted in compared gross the quarter million $XX.X anticipate $XX.X

quarter million was in in XXXX. million million $XX.X Adjusted XXXX, XXXX, compared period. the Adjusted in total second R&D expense of of second XX% million was quarter quarter of second of $XX.X million of second year $XX.X $XX.X R&D to revenues. X.X% the in were quarter or capitalized adjusted or portion, revenues to including XXXX, in Total the the prior $XX.X EBITDA total of compared the the costs

XX Our million period. income net or was or versus GAAP diluted $X.XX prior on diluted million in quarter at for per $X.XX the the share based million shares on year $XX.X share shares based approximately $XX.X million second per XX approximately

for Our XX.X% was X.X% the quarter effective the June rate second ended, for tax six months income XXXX. and XX,

the effective our to to full XX% For tax roughly expect XX%. income we year, be rate

$X.XX shares quarter of or the year anticipate on $XX.X was million period. XX For or share the million will million of stock-based Non-GAAP to second diluted in shares compensation based we be approximately anticipate XXXX. We outstanding million shares third per diluted non-cash the for XX $X third quarter, XXXX diluted quarter expense the per to fully income million. versus be $XX.X net million $X.XX $X share approximately prior approximately in

balance cash ended equivalents total the of million to cash $XX.X and the of Turning we and sheet, quarter debt $XX.X million. with

held quarter of headquarters. the As funds $X.X our average second at a this debt corporate of XXXX. a The daily of financing reminder, clients, of represents on in balance was approximately expansion-related construction behalf billion

me guidance. let to turn Now

For comparable of million the midpoint XX% $XXX prior the year rate period XXXX, total approximately quarter at of million, range the the expect to a the third representing revenues over growth of of we range. in $XXX

approximately third at adjusted an expect the in to EBITDA adjusted margin million $XX representing We the of $XX for EBITDA of range. the range of midpoint quarter XX% the million,

fiscal we year-over-year midpoint $XXX or range a revenue at approximately increasing million the to For growth $XXX range. are XX% to XXXX, of our the million of guidance

a midpoint of our adjusted million EBITDA of the are also $XXX at XXXX guidance of adjusted representing $XXX to million, to margin range XX% approximately year increasing the an range. We EBITDA full

for open line that, questions. we will Operator? With the

Operator

the Our Barclays. Please comes ahead. Raimo go with question now first Lenschow We begin from Instructions] will [Operator session. question-and-answer

Raimo Lenschow

me do historically you because sales expand first to you that's been of you how try lower market, like get Thank Inside has slightly Can another the of direct sales great how all, do move a segmentation? on do you Chad, for of a in quarter. going do big a you. strong is congrats to -- from you, toward like kind how client more like my very strategy. little how plan that's and model? the the the step new obviously Hey, bit you had for sales, around question is inside big

Chad Richison

appreciate I question. the so Yes,

if a this online. strategy, shift in in selling So is success, been we've having

and fact the we anyway, a to does accretive. situation. and had allude these augmenting inside so easier have did that model, that us be organization are have it should and clients an and sales to smaller just or call prospects it's sell But either You volume potentially sales increased that this replacing the here, lead sales, continue inside both small in we've efforts that not our outside sales inside traditional

expand haven't we outside footprint The to to plans and sales our continue have changed.

up open mentioned, Orleans. As an I New we did just in office

makes up volume sense, in product, in lead a we to open sales So we new our innovating in it but also to addition also are inside continue as innovating our coming strategy increased when well. staggered through approach, sales. And having offices we're

shift but areas. -- I And we're in, expanding so -- strategy, I both a call wouldn't in this wouldn't in

Raimo Lenschow

Perfect. follow going Could to Thank be interesting. you. it. I'm

Operator

go Samana next Samad with from comes The ahead. Please Jefferies. question

Howard Ma

Hi. for question. on have Thanks Howard Samad. I one for one This and taking Ma the for Chad, for Craig. is

customers, Chad, for showing to fully this approach you any seeing self-service larger of I'm resistance HR. cases employee are that are curious, to So

guess looking I or guys to implies more could could And be any and in leverage to it verticals are due self X,XXX to XQ. be XX,XXX industry tremendous if just barriers? likely I that to another organizational So guidance on EBITDA, are complexities the service? but revenue are want I'm or -- you Craig. it side, thus, for -- see to to to be -- that more they are is, marketing -- whether I the there regulatory industry sales into -- of and at complexities switch are it that have and there flip -- or if think asking going organizational back due then way employees, fewer And could they

that And true? true, so, are And drivers? Thank then, you. what is is if that the

Chad Richison

Yes.

can't I could not might direct have embrace reason another of So specific good the I'll that any relationship prospect with regardless to the I'm or a the of size, database. relationship question, mean, But one prospect wouldn't having out with single database. of a I strategy employees the want think a I first sure take employees a why reason, for their direct

believe I build so end with areas that even what can to fact, has their seeing with been trying you're of experience those of technology the the and enterprise market some onto now that's have multiple back In lay over level employees actually interfaces companies data. too

And so, is whether this prospect, of client you're large and whether or industry, large I prospect, a a experiencing today. our smaller the that think, future future we're a you're

above enterprise value we're And to the that that. of continue others. seeing upper actually receive would end And our all do that type even at the level so I we of would type same that, sell range expect clients and the

to question. And so the in generations for drive actually areas. continues those Craig results our guidance answer let lead I'll us

Craig Boelte

line of marketing, terms and would some in in kind expect half. but also us well, back the of We sales G&A in the as see EBITDA in in the leverage half. back Yes, the adjusted the to

Howard Ma

may, -- And the updated be can Craig. sales and in long-term I I it, could Have marketing? targets just over if guidance, Okay. What below of operating I think, mean, a XX% few guys you years? we follow-up, see that next margin or sales long-term dip perhaps over the

Craig Boelte

given guidance adjusted not on We long-term EBITDA. any have

Howard Ma

you. Thank great. Okay,

Operator

from with JP Morgan. Mark comes go question next Your Please Murphy ahead.

Pinjalim Bora

do guys. feel productivity I sales could that And quarter this behalf year, Chad, Hi. need it you the one last office in you Mark. the how than first office was Pinjalim I of the about context, last you tracking, offices? talk the on balance is me. of How have office half the is gains opened Congrats questions maybe from think This mature existing four Two offices year. for openings, of on about the mean, year? versus for in between you productivity said

Chad Richison

important. offices, I'd are very open Yes, say you well, without first need gains, productivity don't up to productivity gains any

of lot are each. XX we're I've the reps we opened up that, at offices, they -- so those now to are continue we've full, once averaging about And past, offices a said drive eight this in and

for that's in the quite And XXX us, now. there out that's U.S. reps, a so and bit right

there's we the when bit at already TAM, we And so quite already. look have a there covered,

yes, to that's also we available when us, going so, well. And want now times, makes expand continue are at but capture we to to us everything to sense it as to

it's for in And I so again, people bit and to shift. I this are a little signal more say a necessarily didn't and strategy, wouldn't buy online. depending willingness a say to that habits shift some buying seeing on situation change a But we it's

does look they're the future but be to little they're as potentially different. want our right think similar I it the we're goes, sales by buy probably I looking think strategy. innovating as are reasons mean? far years that. as now, and how same right we're as now, into think XX what that And now also that earlier, why innovating the way, to be we I've be And said product, to going bit why a at they our that buying don't they will we people can from buy, I as actually, buying

We're We continue do what expanding say doing we're footprint. want focus I We that. to that not now. on New open office, just an up changing, to Orleans. did

So that. with anyway, just I leave would it

Second the part of question.

Pinjalim Bora

would how know retention Yes, that. upsells? helpful? on including year just dollar that about number a And this to few times. don't retention up this that quarterly, well, about investors any net gross so I've question is far, revenue the be gotten is qualitative disclose something comment should How think trending follow directionally, but I you retention plus number

Chad Richison

increase was our we've mean the we and a over since retention year at I time first it's of saw a same. a so measured, Last the measured that very well, about in XXXX, an trailing Yes, same we've years. period and seven XX,

beginning this retention we're that going year. you're year. increase to the that the your the to losses then -- and improves obviously, looking largest so year, throughout And throughout typically have Retention in something improves

why for so their to and to on for we're to increase been focus a satisfaction drives the as year retention that that's generating stay is they're what and well but we ROI And it's off the focus really our updated ROI able them consistent, software that of once using that how client and as employees.

middle of retention types we'll us And we're the report so for end of at those the year that and and things year. in the drive number of this

Operator

question next comes ahead. Brad from Reback Please The Stifel. go with

Brad Reback

much. very on a can thanks the Great, you price update us was quarter received? the bit how Chad, in increase

Chad Richison

Sure.

share for would -- future opportunity we're creating our our the moving to on this in to our a that spend. we as the as this, greater any pricing we're ROI sense going would that only make don't R&D for last say we of quarter. strategy with discuss said to and our I've we drive clients, the And have modest I the made we communicate price past, it value not mention So want competitors. will forward, But pricing in increase

enhancement. really about to clients added amount Ultimately, a their clients as response value are of to decide our the positive the and feel going believe Fee product into that to I ROI our We've good as are drive functionality. the for No and employees well clients, having our I

Brad Reback

much. very thanks Great,

Chad Richison

All right. Thank you.

Operator

ahead. with The Brent next Markets. Please Bracelin question comes KeyBanc go from Capital

Brent Bracelin

portion momentum exchange new product? the base. talk base for can I Chad, out embrace what of Thank embraced now fast is tool product to product customer tight about this customer as existing far. base data seems market, of Chad is to early, increase how just but is kind kind employee for follow-up there improving employee you. so for is One one retention. trying gaining the can this a like you the quarter, only the know the direct just Craig. experience customer of a it this It's XX% then of And gauge be given labor just here and industry adopting by product X%,

Thanks. so Given is it differentiated?

Chad Richison

Yes.

five our clients the or out months. So through the more has answer been for DDX of click have the and four DDX XX% currently is short times

employee ROI for got clients our ago. the employee usage XX% to started we're and at high we the usage look client all the in through. click We've already about So shift years drive we the incremental three for Currently to in aggregate on them, of if XXs.

clients plus say on DDX. having are that clients But this, they're I will and B user as DDX does using it even that And it, in a to transformation to we they're tells progressing. per and improve it XX how we're department digital see show focused high how using mean want it they're the that us that they isn't now But down scores and completing per the break their HCM. I us on are

Brent Bracelin

four helpful of it. or kind there additional obviously, Any attach follow-up and and the would different what growth acceleration driven five And of here Thanks. the Very quarters. -- last be growth super billings drove productivity by that and being gains, growth sales flat that's kind helpful? on higher locations the against for How Got of backdrop accelerated office increase. this a revenue then the was acceleration of rates color modules much for price quarter or growth as billings of just Craig here,

Craig Boelte

revenue is mean, I in script, the new the mentioned majority as we client the of acceleration. wins

bringing XX have clients. out XX of new our We are on offices that are -- there

majority of revenue And that acceleration. so that's represent going to the

Brent Bracelin

it. Thank you. Got

Operator

from go comes Mark Please question next The Baird. ahead. Marcon with

Mark Marcon

afternoon. Good

has of terms the the seen you range, terms acceleration my talk revenue a wondering little pipeline large there we're Thanks. about and what I've employee initiative the was if then X,XXX is, X,XXX been I that got congratulations. client me receptivity that what growth? a in in Let to bit looks add seeing could what the of like, And the the how incremental just follow-up. we've to

Chad Richison

Yes.

selling X,XXX a to seeing above quite for we're even now and above that. And so said long range okay, X,XXX we're in now time employee had it come and before up we been moving clients the actually formalized we

interested as stronger. So because may I ago, And also to been would we we in more more interested proposition to as just continues is six it get people say because those, are now, that stronger, value have at-bats, who of but then have have get reps. more we not years continuing getting more it value proposition the are in our

Mark Marcon

rates acceleration terms new the the always I versus the bit of adjusting per can additional then to a acceleration? additional have growth, with charge? the relative Okay. And pricing also primary for would an attach second then of seasonality more you the impacting be the terms in little and about incremental regards be, what but prior pace Here course talk that revenue been Ask and extent in modules kind control the to of And of quarters and know logos to contributor, is module

Chad Richison

you, talking sell new encompass and about does Okay. the far mean pricing about Well, think that adds. first I'll growth talked tell what logo you revenue up you're as I as I and really

Mark Marcon

It's really twisted the past.

Chad Richison

they I and past I up client that percentage sell is year. new I very at as wins of with wouldn't exception ACA the are our percentage past, know much that say the the the mean, in changed been all, it's consistent have in our

all current at of because sales once. sheer that an came we of kind on upside year, to up have in exception clients Internal where the that the just did of With mass

heavy to overweighted the With consistent side. very logo have been percentages that, and our very the exception new toward always

app, within Here will include fee even those Here, that product people stack, DDX As like of do that Ask products the so Ask our one no and is functionality use for the correctly. our like the we

helps the Ask embrace even more. employees so Here technology And

subject as ask benefits can the expertise lot a the online for both well representative. have to resource as their are and by it's where communication company inquiries of has the Here online an is Ask answered by the question each client employee as up that organization and of set each client they

just believe strengthens business. and the we so, the And drives further usage this for employee ROI

question that -- and for to we separately answer your charging Ask so Here. aren't And

Mark Marcon

Perfect. Congrats again.

Chad Richison

Thank you.

Operator

with Schwartz Oppenheimer. Brian from ahead. go comes question Please next The

Brian Schwartz

my one. hi, this taking Yes, question, for I have just question thanks afternoon.

been I talked think, I customer Chad, sales know acquisition hasn't a and well. we've it's working story past. the new business in the clearly before that's really strategy, it been

past back going get the have We within maybe installed install base about and tapping base. to talked to about penetration full in the the increase usage

new can penetration those I that's geared force. I that's if into back you software investments question customer know penetration. company it continue leverage acquisition. on maybe opportunity an don't any full like want Thanks. further sales you in sounds was within install over think do you I and of see is the base The expansion to there time, the But the inside toward base know ask the the that maybe and to if look Clearly,

Chad Richison

of me strategy Sure. all, the mentioning was allows bit little inside the clarity a Well, I more that around and question, put appreciate sales to first efforts earlier.

a You are are correct. inside handled not sales to wins, for are relocated how was that's to clients. to leads up-sales the to sales, manager Those up-sales not for When able we current that's new build talking completely business be business new they current inside about I clients.

And had do to they focus now done We clients. have up-sales and relations and also client current to on reps have group us really both. that groups upside usage that help some time, a or for of continue have and

important in we're before As use past, the clients it's correctly, additional I've the we've selling them that said them sold products that products.

companies that. that, wouldn't so, ever our going them ever we them need. to this now had and then I what on back later really And things they come just say some sell that sell we're and focused opinion

level, some achievement focused ROI they the have been making additional it, an need, but right sure We've what that always through to sell clients the when earn they the to you need have at in products.

need. selling state wanted we're inside everybody, grand that, we someday, products It's ignored have they all plan I the not but that just -- sales. so And not and to back start really to going some come

on do today We and usage. focused that we're

is XXX,XXX said a At had I B. had far, looked earlier right. month, changes score I to by this for those were or when changes about Well so all on high I at XXs, the XXX,XXX by said DDX Paycom, XXX something our was DDX, XXX, made in about We XXX,XXX, of it Thursday employees. not HR. made XX.X%, In fact, we've

So we a have XX.X% DDX score.

wouldn't just XX% we the the had because you're sure would if that I B, So changes HR score, that looking of mean DDX amount changes type would that at probably an to score, had closer HR be of made. that XX,XXX we if of have have made.

And so that's about why, for it results, there why us The it and get watching to clients aggregate, that's is they're understand -- helping that's easier it's seeing important also out. it we're our buying. what what's an people makes and everyone we're it brought drive -- and DDX excited really

as a to If the DDX, change. of time, explained for at are it into what -- doing, it some is we're what it someone client understand, all things, seeing can bolting to on get because it do looking you what over this their as these that, okay, is I looking I we you're they're everything think to industry be of and going the look ROI investors, and understand is difficult you're at makes easier buying even kind habits to buying

Operator

from question ahead. next of go Shankar comes Bank Subramanian Please The with America.

Shankar Subramanian

couple years, qualitatively in of about -- of your talk accelerated much the a spent on have half done kind in one terms of how terms you you're and your of my marketing you've marketing Can on I in benefit thinking the taking spend? maybe of results. Hi, first good half last second the and comment and you've about marketing then thanks seen couple questions, on for your just of results? in have And I seen spend. that you congrats how question the know results.

Chad Richison

Yes.

the use ad assets. we So, national those continue year, did campaign. actually we Last to

have having we an current to. those do actually that. to do product that our guidance. end use are how assets, had repurchase that, all we the rights year of we strong baked marketing as the of We've to And into done different well showing success in this continue initiatives through both to We with is use and quarter, way. as industry, a Some

Shankar Subramanian

have And from got notably churn on it, that you three months. Is over Got ultimate Any be change of going helpful? with color it. any seen kind a the that particularly perspective, past forward. competitive would

Chad Richison

not, have is as who for its usual suspects I there. us as, out far

Operator

Please with The go from next question comes ahead. Ryan Needham. MacDonald

Unidentified Analyst

was guys. be on driving are Ryan. today, This what I is just into wondering the Hey helping increase some application color on employee maybe just for would Josh the that greatest in helpful? modules platform around usage

Chad Richison

the It's on have as product what greatest lot in if the about as you of their depend swap, for schedules when far talking going have you're Sure. the with usage somewhat to and employees client them, to usage drives you system. hourly a going

be areas of usage. If you in as a not have might you you're salaried employees, going have to much attendance time and other

meets going we're them needs And obviously. to so somewhat all that the client-specific, their to time, at deliver really it's

of is they of And to are are they have, one then industry employees more it, decentralized, they how in in, on area. really how many people their using going type depend they're what are

made a usage. the XXX% because their database require other We of with in versus difference about level different doesn't a usage that like types total looks have client, XXX% client employee that so, that a only different is might talking have retrieval, same be base, data to a the employee made of you're but And changes going usage for client, in input XX,XXX, month basis. per they a XXX,XXX that

Unidentified Analyst

employee customers your getting other every with one the employees deal just seat above. and they looking How larger X,XXX Or is there at on question. then When And great. initial for are typically front? expansion much room Okay, with customers? these

Chad Richison

as per of the they the beginning. would are add their can users let's a say wanted basis, employee as platform. we we expansion, far many to or users, it users, as from many don't they department this, employees as even want on as have want, Well, us, you master for number charge on they seat after users all mean I can users they additional users, for add -- they have as

Ryan MacDonald

you're customers company signing typically larger your for in every the But employee up initially?

Chad Richison

have to any every for we totals. employee, we any have because do we for Well, organization, the the signing up are to all payroll, sized input

balance set up our terminated system. in We so to employees have even are

balances work through had that and client. that anybody So we with the

And it that you might information data practice keep terminated for an respond want that certain on on -- not their that have employees, have to actually so a access be they to gather themselves. terminated HCM technology can for employees, best turned so, issues would you might to that and have do you

side, employee we're an from So to going all. set up

Operator

Please Kootman ahead. Fitzgerald. with comes The Cantor Drew next go question from

Drew Kootman

Hi guys, quarter. good

Just group, you into any sold guys those larger wanted I the are client to just but already ask know and seeing what on, from have you you guys move that to changes needs. businesses as

to as up move You tactic your all, change that have group? at you sales

Chad Richison

same. -- employee though, our would company. sales say group. the no we're that I not employee and that is same There tactics. a employee for is this, difference in to company the because what's I of an will move have as what What size -- It's and but no, the set give the how employee XX,XXX a changing they're XXX works the for past, you employee difference was you going up, are works and an the In that type of is company users of view of company size complexity important, the and up the is you, some difference. they're still how

at meeting thing, a same type going An X,XXX employee to a the employee be using company. that and employee XXX employee company at of is

salespeople I everything to to their as employee way you're leads employee, see they as XX,XXX employees, company far else. as them an same you're a might And impact and companies so department those far user, see the as employee an mean and XXX going a have as as when making

And the value for making evening everyone, for understand easier that's it what's more think people which out so I to is proposition.

in and times, of brochure our three I out mean next trying bought people industry to often the conversion. off of the years you're figure you have over what then

backwards go with from you're systems another and And into employees file what for and -- so leave upfront, you one lot know you're ranking multiple a getting in really of and don't technology. company with having the just we're aiming company go want to and really it that this, seeing work leads

Drew Kootman

the higher on just And quick guys follow-up then were strong one any the what led adjusted expecting? specialty that EBITDA, on you color number to really guidance versus

Craig Boelte

line, beat primarily, revenue the similar. mean, EBITDA very the flow I to adjusted you through saw

So to bottom really through it able line. -- lot to flow revenue was the was the beat of

Operator

session. question-and-answer conference the like Chad over This turn to any to Richison concludes back I for our would closing remarks.

Chad Richison

well, to I want joining right, the All everyone call thank us today. on for

meetings we'll road on the the meeting on Leadership and at KeyBanc in I'll Canaccord Oppenheimer the and Boston presenting on hosting investor at XXth at conferences conferences, in will both Craig Technology James be Growth Forum Xth. be and the Xth Vail; Next following Technology and and August with investors be month, August August

with of We your look soon. meeting you operator. continued Thanks, and appreciate forward, Paycom, many in interest

You may disconnect.

Operator

The presentation. for today's is attending Thank conference now you concluded.

now You may disconnect.

Paycom Software (PAYC) 30 Jul 192019 Q2 Earnings call transcript