PCTY - Earnings call transcript Q4 2019 | Paylocity Holding Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to Paylocity Holding Corporation Fourth Quarter 2019 Fiscal Year Results Conference Call. At this time, all participants are in a listen-only mode. Later there will be a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to Ryan Glenn, Vice President of FP&A and Investor Relations. begin. may you Sir,

Ryan Glenn

FP&A welcome CEO and earnings ended fiscal I'm CFO today President XX, and me Paylocity. and the the of Paylocity on on call and fourth XXXX. call of Vice Glenn, quarter year Steve Ryan Investor to afternoon, Relations, results joining Beauchamp, Paylocity's is for June and of Good XXXX, Williams, which Toby

replay market website of days in will call our results press closed. be A after issued on Investor we available webcast Today, be tab. announced the this XX will for under discussing release next Relations the the the our

factors, beginning, we could cause and results made forward-looking statements session, other uncertainties, to Before including actual contain results the statements. differ or caution important must statements. these These today's subject implied risks remarks, the forward-looking are by question-and-answer that which during statements from you numerous to

the risks actual and differ forward-looking are these information projected in are solely statements. cause can present that the to on subject results from uncertainties those Also, based materially statements to and

statements. duty and update please We For Securities with do the other risk Commission undertake therein for our the not any filings information, refer factors forward-looking disclosures. to any contained additional Exchange and to

is release, Securities Investor reconciliation on currently Relations schedule press the filed in business, website which Also and the non-GAAP and during refer we there with Commission. more are of believe and we that located a at detailing measures measure to call, is financial will the course results under today's certain non-GAAP tab We these our our Exchange how measures. representative paylocity.com internally the of available

time financial measure complete reconcile the information to is because measure this is to without financial to comparable Please note directly unreasonable effort. that we unable reconciliation at needed any which unavailable the GAAP a forward-looking are non-GAAP

to Tech schedule know the October In regards like be I at us this if let X. time Please me conference Las HR our schedule, upcoming on and in you'd event. Conference attending Toby will to with Vegas

With over me call turn that, let the to Steve.

Steve Beauchamp

all guidance our year joining growth another fiscal XXXX We our the were total was new year-end exceeded marking revenue of quarter and this quarter and you, with of and for was Thank fourth XX.X%. which you quarter to growth with recurring growth consistency in of QX fiscal on our by of pleased quarter fourth strong our the revenue driven fiscal the Total very revenue tenth XXs. sales. XX.X% mid us revenue of thanks for growth We total XXXX earnings straight with completed call. Ryan, and

$XX.X EBITDA the the by fourth Adjusted million. guidance was for quarter midpoint of million which $X.X exceeded our

Adjusted ability goals. XX XXXX, investments increase XXXX make we were our fiscal profitability drive of revenue. sales margin making our towards was work for XXXX growth marketing progress we an and also pleased towards our in target from basis revised fiscal EBITDA our of XX% to points Research For and initial of to both as while XX% fiscal XX.X%, guidance Development with to adjusted and EBITDA

new adding at XXXX, increase clients clients our an year fiscal the We more record last finishing to new of client. Our products to XX,XXX each of to to by fiscal a year, end in XX%. continues and formula number driven compared clients with platform fiscal XX,XXX of growth be selling on-boarded the

continue segment management. clients products this recruiting such clients from We continue to and in taking XX of to performance see with unit we as and a HCM broader array see under on-boarding, employees strength coming

and service healthy offerings. momentum core also and product have market our of upper seen strength in of our the end which the We demonstrates portfolio

to primarily to new products $XX,XXX client clients. revenue recurring by We selling also by average HCM per X% more $XX,XXX from increased

base. growing our to efforts our client our expand HCM back We gradually sell to also into continue portfolio

by pleased are rates. the we Overall, attach

throughout realizing suite. target to market our comprehensive our value client product as are the We see in continue

be to in HR commitment on satisfaction multiple category ranking With reports. Overall on marketplace. management mid overall during six market the GX mid high one administration. market product Crowd and including Paylocity to recognized benefit fiscal suite, in HR development market payroll, number and market XXXX continues and mid mid placing Our core Grid reports

We XX% capitalize. and investment by consider in in fiscal over you we increased our Research expense XXXX Development and when what

product am industry suite Continued LMS we which platform Management of investment I us extend pleased to modules our and available in is to to released Development development which release functionality January new of year. new our positions released and our Through the we team, to adding currently the clients. TPA our announce now of products. Learning leading this Solutions strength and our or in Research introducing have two System by existing all

focuses drive pieces to on levels our LMS allows which in learning size Our higher deliver engagement. to curriculum small micro clients byte of

create and from clients. share feedback very Early Our that custom has with organization expertise the already product learning our in also over our by democratizes their record, launched every so been encouraging can with co-workers. XX,XXX employee clients courses

our earned our am compliance to With excited mobile announce of is via also a have platform. XXX,XXX pay normal been the addition learning access of can earlier feature which clients' portion our courses their for to employees this available nearly clients. content, portfolio now wages on-demand I In addition to all our of all than launched Paylocity app. times pay through cycle our easily

software having modern and including much easy pay On-demand to is Our commitment how example to great our feedback of another appeal how early is provide have employees it adapters workforce. appreciate their provided this the option. use innovative that to

are achieve release $XXX and allows $XXX setting PEPY. PEPY of target now our new to LMS we us at target our The of

and that to that to there are and believe our help this us value new additional features prospects. modules, achieve functionalities continue client will We will and deliver incremental goal

channel and to continued new the sales training force and programs same adding productivity. while in also in marketing reps invest our have We investing sales to by at drive time initiatives

for XXX fiscal sales to the fiscal entering XXXX successful the in which to a fiscal with year prior positions year, reps sales We efforts XXX to us staffed fully this last with force reps our in emerging these XXXX sales expanded include pleased not to sales am XXXX. the I have were start by team fiscal from fiscal XX% very market sales does year. Consistent teams. strong count rep our report

channel In than teams the addition force, our exceptional clients. focused XX,XXX with investing business of we our growth our in our continue to on which of fiscal in referrals. the our invest remain delivering our new sales continue to we in XXXX, channel Throughout deliver and more to XX% operation pleased initiative to plus consistency broker service also

time initiatives new robust clients help advantage the same implementing a platform. While payroll take HCM of number at and to our of

retention deliver again XXXX. This combination and technology of for fiscal us of to XX% than greater allowed service once revenue

in Our relationship focus Paylocity indices has and where user implementation setup, report ranks quality led time been categories service of companies on recognized client implementation GX also the ease of on adaption. Grid which XXXX in Summer multiple and Crowd support,

and I’m well our of which our announce completed teams that modern for all out the that employee features have of as we as are corporate include former Chicago-land Schaumburg working to also move out training headquarters cross-functionally. a collaboration of now to employees in number pleased space of our for centric work ample headquarters and

highest recognized to won the this awards are and places an being best XX, have a to past number Place Fast by We work to of Best year A A selling Cranes of very Work elite for Glassdoor Brightest Chicago's cloud the also and culture rated Chicago, to in Best including sell to winner list. proud fiscal Work Power Built and Best by Companies, Magazine. list honor as Ventures for by companies of XXXX one Paylocity's best on Battery companies Place

to more than dedicated efforts X,XXX country Finally, I past for employees across the year. this highly the would all our like fiscal thank

Let call to financial Toby results me now in detail. the turn to our discuss over more

Toby Williams

which was XX.X% straight for And increase revenue the year a XX.X% fiscal mid million $XXX.X quarter last $XXX.X XXs. up the revenue in was from mentioned, with Total Total quarter fiscal Steve. fourth growth for Steve QX revenue million period the the marked tenth same our as the prior total year. from Thanks, in year. is

For and increased fees last portion with the XX.X% to of XX.X% client invest funds result up revenue fourth funds. from year quarter we the and rates a XX.X% on a of average up recurring interest balance increases, total income recurring as was our interest continue up primarily client same period because

For the client recurring our on interest revenue total year, was XX.X% income up XXX.X%. funds up and was

it fourth gross scale quarter the was XX.X% and the was adjusted growth business consistent focus continue also driving year revenue fiscal we on as model. in to XX.X% For our while for profit our

in quarter. compared On dollar in we ago fiscal increased quarter were Full-year is fiscal both capitalize. investment important and total the Development We continue Research Development and XXXX Research what by XX.X% to to compared expense basis and a of we Development the make year XXXX. XX.X% what R&D total in revenue investments revenue were investments non-GAAP to investment and understand of Development in combined fourth XX.X% Research combine in in our investments total XX.X% a XX.X% compared and Research in fiscal to to it basis, significant when and On our XXXX. overall to

XX% revenue period year. and of XX.X% G&A On On and quarter as to revenue in G&A in we marketing revenue to basis G&A Full-year in last basis compared a in pleased fiscal for year. XX% are a long our to non-GAAP revenue the fiscal quarter of range the term as non-GAAP XXXX. of expenses same the of of revenue XX.X% were of XXXX fiscal entered were of XX.X% XX.X% revenue sales were compared and costs fourth target XX.X% the XX% to have in fourth costs

we Our million for by quarter $X.X the XX.X% adjusted the of as of million. revenue guidance was our or midpoint EBITDA $XX.X exceeded

continue to progress Our our target of EBITDA the million year revenue. or of make for $XXX adjusted and adjusted XX.X% pleased XX% to of XX% total to we was EBITDA were revenue towards

headquarters completed be with on in quarter move, not in the and land In to depreciation costs move corporate Steve we old and lease the employees have mentioned, Chicago in headquarters. that As our will fourth our certain to facility we our exit connection quarter related used new Schaumburg. equipment property of accelerated the the our certain in taken remaining

lease fourth the and costs move. As information. closed with release adjusted the includes today a of and press add exit Please GAAP to the XXXX for associated and in full the quarter reconciliation in back the property table non-GAAP refer equipment $X.X after non-cash issued more of million EBITDA included the market result to fiscal

Briefly covering our GAAP results.

was and For invested million was on and completed the as or $XX basis compared the $X.X gross operating end ended net $XX.X XX.X% year a income million to of of cash million $XX.X of net $XX.X full million, equivalents cash repurchase share income the $XX.X million was the profit balance profit we and was corporate the was $XX.X of increase million, in impact the $XXX.X regard year, cash, million we year million. operating income quarter which as with of income sheet, $XXX.X million gross and last XXXX. was includes fiscal QX to an $XXX.X million In of

defined XXXX, for million tenant improvements cash operating less a internal Free and revenue million cash revenue basis of versus XXXX of purchase capitalized lease of XX.X% or costs, property point in activities was from improvement. we or fiscal $XX.X flow XX.X% which used equipment software or and for as XXX fiscal $XX.X used XX% allowances

our continue I'm to range flow profitability. of to XX% our flow cash while focus entered pleased have we free growing we revenue target of announce XX% also on increasing cash and free as business to

our I our guidance, to financial would in presentation change a outline XXXX. to fiscal financial like I beginning Before review statement

part revenue grown HCM of as for As has of our smaller revenue. a mix and was our X% a XXXX the our total implementation piece has and larger has of Suite portfolio, revenue business overall fiscal become become total

meaningful revenue less As breakout our to business. and recurring such, implementation of the fees has become

and revenue fees beginning of the will implementation of will on fiscal other quarter our the cost of recurring into consolidate item of line with XXXX, single revenue revenue first and Consistent implementation simplify presentation, and our other with and into cost Therefore, income other recurring revenues presentation combined revenues a single revenue and cost and will and be a of recurring revenue. line-item. we statement revenue

income We historically. on clients will, we as break have however, interest out for held continue funds to

fiscal full Finally, I'd XXXX. quarter provide first our like for guidance the year to and financial

$XXX.X over in of quarter XX% be million XXXX. be in EBITDA For total $XXX.X of million XXXX $XX.X XXXX, is XX% be and fiscal million And $XXX.X expected to in expected range be $XXX.X the expected growth range to of to is EBITDA for million million. million over range million. $XXX.X the And to total the to to fiscal to first the full the $XX.X XXXX or million expected fiscal revenue in or of approximately revenue $XXX.X range year to QX the to growth is adjusted of is fiscal XX% adjusted

In and adjusted the fourth very flow with are and our performance growth XX.X%. full total of cash summary, year quarter revenue margin we XX.X% of XXXX with free fiscal pleased EBITDA during and XX.X% margin

Operator, questions. we're you. now for ready Thank

Operator

comes Our Thank question Needham. first from you. [Operator Instructions] Berg Scott with

open. Your line is

Scott Berg

Steve on Congrats great taking and and the Toby. quarter for questions thanks here. Hi my

maybe target or that Steve, I'd So micro the target, reach But we the heavy a with to popular certainly more how other start learning new things PEPY there think I analytics should looking today? that’s today. today. the you that as product you're at $XXX in aspect are off like because the LMS discussed maybe you like next XXX in

Steve Beauchamp

Scott. Sure Yes.

are and customers pretty good start gotten actually product the in we having excited we've yes, pleased about feedback LMS is our really sales their the with our bag. with we've gotten that So that product force the and in

think at we each and of think a all as and talent we HR really PEPY. the I that would having time towards benefits, opportunities management look able product categories, may product of labor, pull be from drive that we I to perspective core $XXX think

what our on don't differentiation demanded But, like additional terms actively that create will into in will of think both that working to we module be. and we might So modules we by specifics be customers. get next are

Scott Berg

you’ve XX% range? the getting revenue your end a you're target. that you XX% you today, prior to going now busting that about of a a at that mind mentioned, we to question for How Toby, that or target can flow goal frame XX% your Got have think top you it, or that time leverage you maybe XX% or a in Now at even that cash free attained least then to and helpful should maybe you're but forward in that or the range see better? do model

Toby Williams

Yes.

was step one think I getting range. the into

pretty XXXX. feel course XX% about we we good just from of progress under think in just the to I the the made XX% over going fiscal

So good we the a pointed as feel talked I think we pretty range a step but out, it still good between you about as of year, I and that how today ahead think top in have where we are was up big about we've probably the bid I same us got would EBITDA. of this think

in we but we've cash think, leverage. in drive continue of to drive will I to we're to continue including plenty margin to still think I free flow range and maybe be increments, got happy the runway smaller

good XXXX. feel progress the about fiscal So in

Scott Berg

for Do in Very to for segment little one than Steve. to strategic expectations months the your seems helpful. The ago? in invest you nine to quick going start one expectations. maybe segment be your relative in I'm slide you better quickly more six to success bit a that

Steve Beauchamp

Yes.

market. if small you when a compare still they in to roughly it to off market about think you emerging little good is a we're X,XXX our and a our got overall you business clients to thousand than be more maybe emerging that. couple I might of in bit remember start think revenue, I think a relatively

So revenue. only couple that's a in million

I stage still year, not see in still It's the an early unit but material. investment. the So it's strength that this think growth you

think a step we about of fashion but overtime, than gradual some rather sort investment of level the increase will We it in up.

Scott Berg

Great, thanks guys.

Operator

our Terry Thank with from question next you Tillman SunTrust. comes

line Your is open.

Unidentified Analyst

Nick Terry. for actually is this Yes, on

a idea product monetization ask over like just things evolved wanted ton ramp So just time see And or has you years, good an for a the give years? what of to add-on for to changed XX% second, of the a you could rate has attach I as you. XX% or stepping we how newer back adoption then, guess Thank just like great? these modules adoption be over so if that'd

Steve Beauchamp

Sure.

get small We customers, feedback and our out We'll first what get philosophy We'll think new try build product for. to I of interact all, customers. looking a a subset to brand we a been, lot. customers it our that off has feedback. based with of in they're module terms of

we're garner launch will the to them just we'll and like feedback the we then to We iterate ready that it force with LMS. did point to sales from

I base. products the think able like to we perspective, would client investment say of to certainly across We that to justify get kind believe XX% investment to R&D of terms a the we XX% in of kind have from to product need to longer-term a our of getting to penetration that's be launch. minimum range

the of year has so categories and talent I years, most were last great another product category one it's And to that the management place going anything over the if fastest is and I be highlight probably to couple talent even we've LMS to growing the or also our last think addition I our think added portfolio. been

Unidentified Analyst

you. thank Great,

Operator

you. Thank

next question Our James. comes with Raymond Peterson from Brian

is line Your open.

Brian Peterson

guys my the Hi echo on solid and quarter. I’ll congratulations

So you've markets. a Steve, that customer help been with typically stands where today? Any emerging that's XXX employees about I'm a we've had of the curious, success figure average. lot for I think seen on the obviously

Steve Beauchamp

Yes.

So we're and our think the filings we in number similar that's XXX about I gave greater I I still exact think range. a in consistent. we very think talk than don't

are that our an are in emerging down demand more and customers with we we success core customers there market are I force kind sales we to a possibility team. us of some with emerging market product there's smaller seeing have adding bit. might think as available that definitely come and They both and little our

worth updating. that think hasn't you to see just currently bit, down little come have enough continue we a if might So that I changed success it but

Brian Peterson

using management you am have base, customers if actually they for using customer And a look your it. sense are many are the don't perspective? then guys. and Got any anything that maybe really curious on just what Thanks real if how they across technology from actually today I learning offering, maybe

Steve Beauchamp

Yes. Sure.

people in I we our I converting, System were target think that to customers would our the really be large and feature we System. that way of clearly the to most Learning ease the to that share appeals but really say organization have market use product across way from trying of say an and we so of rate speaking exception were to videos Learning be build is This the are But far going both to target an we functionality of of have to terms be easy for do some customer first your our and in and have Management generally would customers that of our Management answer largely market. brought first your going LMS going the to implementation I first their on question, to think majority we most the customers.

Operator

Thank you.

comes with Samad Our from next Jeffries. question Samana

Your line is open.

Samad Samana

firm how overtime think just a of should as it per question. going and month I actually and we on-demand Hi, us of bit pay how good think and for Paylocity opportunity making on I you something for the I if moving understand play thanks questions. curious you help funds if see pay of afternoon is a follow-up about the on-demand my adaption you, companies payroll maybe works Steve, Maybe economics have color those been talking that have a just that and software for taking you first about. of little as type could several or on money of am well?

Steve Beauchamp

Sure.

we pay ACH able do that a So our to we the so draw money and paying of move of say employees our which part on is, pay allows to leveraging on-demand capabilities fact lot is they value be what already I customers key of would for and from have do that the are leveraging earned obviously to that already and their basis able proposition relatively are employees a kind our can efficiently. we earlier we be to

I going perspective. think left an ourselves we open on-demand is industry from how to go the to

that offer really a modern revenue today benefit but to that appeals and PEPM, a worker drive it's as we one call to really So it's and it's driver who the big differentiate going the are something helps entering it that we wouldn't work to think that's employers out and is going force. us meaningful a

it us it's today is if So opportunity more an think of. something take monetize about a overtime, to there for advantage we certainly as can it differentiator and

Samad Samana

maybe a you. Great and question Toby then, for

given should As be I they I down the well. think the this given is little revenue come where start curious are I balance should or context income they treasuries that in revenue your such so think bit of to going XXXX, probably growing like maybe and we about are. am of we about actual it's interest fiscal trend think the have think about dramatically rates interest and to margin a growth just high far as just how year for growing how since customer that

Toby Williams

Yes.

So, those the think I are points. right

you if to balance average see the I and think have and in fiscal year 'XX. that look you rate last daily growth historically client would closer at over I to trend probably increases the expectation with that's think

then our And I I well a from characterize environment and the another I think in you've the XX. and fiscal recent rate are one of the many us of move think rate the contemplating seen course perspective, rate we've probably think

how we a thought perspective. I 'XX that's the guidance fiscal about from think

Samad Samana

quarter. questions, and Thanks my guys, Great. for great taking

Toby Williams

Thanks.

Operator

comes with Our Baird. Mark next from Marcon question

open. is line Your

Mark Marcon

congratulations. my add me Let

in buildout, Just of but think quickly thinking business from wondering, about about you that the terms salesforce it? of how metrics would merging about evaluate you philosophically how should expand perspective sector are not to teams or you're know should this that that I much some we with management the regards a really how small talking the

Steve Beauchamp

Sure.

annual recurring I many it to So, our metrics revolves salesforce team around drive organization. up sales that core we series for revenue years the can built really at of look over the think that certainly all we new and a

opportunity. the would when at no different so, emerging that And be look we market

be that more manage well. at bring acquisition so And a a it's little space folks as and would customer. something We efficiently. a very average profitable and equation definitely are client career that the revenue can it's we be think there generally cost cost less of per we units that on, Obviously, involved bit there's earlier look those their in

the are what like; looking at what the to new that those to able revenue. is quarters be cost internally; recurring we're But drive look that things does those

As investing our which to market emerging early also to we're we're part be to be are important as the that. in presence opportunity in still as digital which you is that well going another process, channels an mentioned, drive of way able

really So, there's the think and factors we're early albeit multiple salesforce with so the purely than stage. far an I at results happy

Mark Marcon

great. reception you rates to with That's and it go terms like usage? then, back the kind that take been of And to the piloted what the of with in on-demand payroll, what's clients up the

Steve Beauchamp

Yes.

So, we're now. just launching that

our where So, turnover that involved they of that with have early well where might have where What may that is feedback that one seen we workforce we large garner they adopters hourly number people got would end a is and bit seasonality be resonate they or in series from. may of little a needs that really say workers I younger a up. maybe have where of customers that the on spectrum we've the come of particularly

can part also easy from received valuable that super customers. as feedback that in to our it's that really pay a earned and they of while we've gotten feedback Once really is the We've use. being just access

earned. how the you've you've what real We app, literally you logon much actually actually of value capabilities. time You your is what mobile earned calculation calculate see to with

some maximum that. of up to sort withdraw can amount And of then you

feedback And point so, we've probably the biggest of heard. the that is simplicity

Mark Marcon

you. thank great, That's

Operator

Thank you.

with Nandan from question Partners. comes Our Guggenheim Amladi next

Your open. line is

Nandan Amladi

Hi. Thanks my for taking question.

LMS making your customers to you sourcing the what for platform system, build, talked don’t their that for learning build content So, available the content. your content on strategy own micro know about I and is building also you

be other types about how from for might build people source able that living? to content who you But content of

Steve Beauchamp

question. good Yes,

I So, towards think three-pronged we content. have approach

need. we to So, to all be maybe compliance first of customers core able much we that want content our know are pretty the build to going

we've So, harassment I the certain about that's talked past and mandated. think stage where sexual training in

as LMS use in and going part platform deploy imbedded build, going That our our content we're can to to customers of the we're that platform.

be the can second our content of that think do short strategy part video allowing organization. videos learning then able micro shared I to use is be of the to capabilities to kind these training across the customers

of We content really and a client the and strategy content our then, ourselves we've to through distribute then LMS. the the upload be And purchase use share enjoyed that being then seamlessly part knowledge benefit purchased is third our able the able lot and organization. to can capability across our of

So, we options customers. the give choice for three of all our

Nandan Amladi

Thank you.

Operator

Thank Instructions] Corey next question comes Our from First you. Analysis. [Operator with Greendale

is open. Your line

Corey Greendale

Hey, good year! the to have So, related I good congratulations afternoon. think on And question market. a the I emerging

client look ACA per I best in you think was growth even your than If your better in at years the the revenue growth and client growth benefit fiscal year. spanning client 'XX, in multiple

dynamics but into you emerging responsible for both But has those market can was your revenue thought the just dig per client growth lower than of that? it been. I have would was

Steve Beauchamp

idea and mix. just in in of size Sure. got per customers; growth more Yes, client XX the key so the segment lower that it's growth driver getting clients I higher the think why of under really you our really percentage is average revenue of

because that for our and demand more segment salesforce clients tells seen in we've products. happening that’s does Now, core our

added top we've this emerging market that's success. then some And investment, that on also of had

so, And newest were products, several that simply release driving rates it's a years really our as so that of really we're we certainly the products seeing our penetration still mix the as ago both result lift. with we're well happy shift, that

success it's the client growth. that's XX under in you the driving marketplace that are absolutely higher But that correct

Corey Greendale

client? see revenue to per say fair you you succeed growth 'XX in similar clients And than assuming split fiscal a in a in much higher

Steve Beauchamp

that investments growth if continue be and think emerging be be market that successful market basis under than XX we to higher correct. I would would a on the client go-forward to the growth in that continue grow ARPU

Corey Greendale

Thanks, Great. very much.

Operator

you. Thank

with Adam Stifel. Borg next comes Our from question

is open. Your line

Adam Borg

and Great the thanks question. taking for

the that XX% years, think helped for are the help in broker range channel, or of you're that's fiscal greater steps about delivered Just kind there ensure as to any processes recent we thanks. taking 'XX

Steve Beauchamp

go-to our so our business We than broker to growing the from so once strategy. part meaningfully brokers. pretty it to Yes, grow XX% we more deliver continues of as salesforce market literally of and we be were again revenue channel XX%. Sure. new important by Last the salesforce we're happy year, an take the

brokers our So, with brokers be well network. to new we both deep the to relationship able to add need as existing in

And of that no number as able getting the in off be to I have that. we're to initiatives our so, do we feedback think the from based changes a would brokers, strategy. big incremental of those

proposition think able a value in our our think to will part so we forward. a we're strategy going resonates but good We market do And position well that really broker key of channel. to at go-to that remain be

Adam Borg

Great. as and obviously talked to buying down cycle, about and of or And there. any experience there about your continue the some you discernable to good add-on behavior emerging either channel a down had in experience follow-up, change in Is just maybe some a talked adoption good of success products? the you build good sales

around thanks. or anything But that the even sales more broader, just find cycles

Steve Beauchamp

Yes.

on our end helped our of some markets customers. the target for So, I certainly focusing has optimize of think us the smaller experiences

around kind certainly than smaller so, the of ability weeks have we customer we perfect And fiscal processes And that. to a used last and some year have to rather days. onboard

experience sure able that service also to We've the them deliver that look for well. we've made also they're been as

require think small it in last that learned lastly, tweaks So, little some ongoing as investment that implementation process. I service of presence a for our digital channels well process and And also call does as bit online then I'll we more year market. to kind

things that's that very level ton the down is that a over of gradual that just idea we to a go I There we emerging market back is both think can time segment be of we greater will over opportunity and at And think leverage so businesses in a why for Paylocity. interesting time. expansion just a

Adam Borg

again. Great, thanks

Operator

Thank you.

Our next question with comes from Shankar of Bank America. Subramaniam

line is Your open.

Shankar Subramaniam

Hi, thanks taking for question. the

are come customers Can Just you of peers. from, the opportunities get are needs have more getting on wins is and the the Greenfield said is just or market, that either that who it emerging you more the from already Greenfield? other legacy you we of characterize

Steve Beauchamp

in I think that them. but how probably we peer we'll develops of the emerging method so I we're see outsources time that traditional would market in this are early, say the terms still displacing primary see over

You in bit that segment. business do a as activity have imagine more might little you

But so the The in it's emerging things market channels certainly maybe we than it's different, prevalent midmarket. you channels different from not significantly bit like little get our wouldn’t than customers from. CPA different I see where the that are outside significantly business, of say more midmarket a being new

Shankar Subramaniam

think about on it. contribution contribution benefit it fiscal what the much And the BeneFLEX 'XX? in you in how then, and should Got is 'XX the how fiscal we should side, we from could is

Toby Williams

Sure.

we time past that you that. And if some TPA the BeneFLEX product lot out spring, position of spring in top needed I build a acquired decision fact that we we the And really last this to buying but called So, in happened where the be we would prior. remember fall. then of over not one think own those a

selling season. kind hit So, of we're this so really we fall our products trying that can ramp to

and meaningful So, we year impact wouldn’t characterize did having BeneFLEX a not last that. change fiscal I is

think from our We going the we've bit that product actually it's volume ramp-up the we're with TPA in I more users space market, a got to fall. experience our be available into little our going this great got out. new and in product ready, to played so able

Shankar Subramaniam

guys. Got it. Thank you,

Operator

Thank like for to over back you. time. I’ll to call remarks. closing this no turn further And at Steve the showing I'm Beauchamp questions

Steve Beauchamp

take their night! able last a for also Great. great over some for time of interest on to take than Well, moment this to to I'd all like our and XXXX Everyone to have just time, year. a the but be brief more dedication energy, all fiscal thank employees your you thank call

Operator

everyone conference. wonderful a this and gentlemen, joining for today's concludes have and day. Thanks Ladies

Paylocity Holding (PCTY) 8 Aug 192019 Q4 Earnings call transcript