PYCR - Earnings call 2 2024 | Paycor HCM, Inc.

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

Operator

Ladies and gentlemen, thank you for standing by, and welcome to Paycor's Second Quarter Fiscal Year 2024 Earnings Call. [Operator Instructions] I would now like to turn the call over to Rachel White, Vice President of Investor Relations. Please go ahead.

Rachel White

Good afternoon, and welcome to Paycor's earnings call for the Second Quarter of Fiscal Year 2024, which ended on December 31.

On the call with me today are Raul Villar, Jr., Paycor's Chief Executive Officer; and Adam Ante, Paycor's Chief Financial Officer.

be available our section on website. can today, release of results is which the financial found press in issued our Our Investor Relations

call to call. Statements will on this a website Today's forward-looking the results, made recorded, statements products, include on related following the available financial our replay of conclusion call being is our be and may statements based customer demand, of not and risks, are on uncertainties future. current to updated today operations and be and are other the in and subject matters. as management's These expectations assumptions

be Therefore, should upon statements views these our as any not relied date. as subsequent representing of

and refer We reconciliation GAAP to are to will business Definitions of metrics provided financial provide measures press release in to also metrics measures website. investors. and and key on a certain non-GAAP measures our of non-GAAP information additional non-GAAP our to business key

that, the With turn I'll over to Raul. call

Raul Villar

for second while strong and demand to revenue XXX innovative Thank to you our us year-over-year. Margins year, over discuss you, basis another sales in invest HCM had continue joining in HTM We expanded points fiscal is all the Paycor's quarter of suite. results. XX% prior thank and we healthy. growth Rachel, expansion with quarter

is significantly pipeline and rates our win strong. deal Our up year-over-year, remain

rates We and more a holistic higher the enterprise higher excel employees continue SMB deal tend to driving average to purchase solution attach upmarket, end customers higher of of and especially sizes. among are who with thousands and

PEPM. per employee of Our amount charge expanding on month and results growth or our the two primary drivers: increasing demonstrate consistent employees the number our our execution against we per platform

XX% sales through our sales coverage sales and on We First, our track largest metropolitan year the to increase approximately we strategically efforts. platform direct a of U.S. combination direct expanding this to indirect are on in employees remain areas. grow force fiscal the

from are active sales and the As brokers influenced. by coverage, we broker bookings our XX% of field the number we broker over referring We XX% in increased of were also the our our prior increasing expand quarter coverage. year,

experiencing great platform August. solution. are our their we go-to-market software solution HCM experience. HCM within a We with client in our engine, industry-leading seamless announced enable channel embed interoperability for traction partners embedded Leveraging our to indirect also The we

new QX, and existing we interested In had of among our pipeline partners robust sales expanded partners.

to enhance increase quarter, Second, our second the tools equates $XX, that winning month, customers continue PEPM empower frontline we expand future with year-over-year. to capabilities leaders potential to our PEPM of our their new and lift value introduced suite people to that lower growth was unlock This In and opportunity. data-driven we HCM powerful XX% performance. the analytical the which two our business

on to based Pay strategies benchmarking data. compensation enables optimize industry and leaders decisions standards and market pay

staffing based which We customers customer traffic. optimal also trailblazers. branded within help schedules forecasting HR on plan revenue, Paycorp to These management drivers for will demand hall labor on modules their businesses received X expansion. to volume recently future such or foot contribute our PEPM innovative as technology key awards technology workforce launched sales

our more today. the list we vital suite, for Under managers best the oversee These on and in since the joining evaluate effective customers thrilled based that a increased won of driving his HCM advance helping am trigger Bergstrom PEPM an already transform ago core educate year it areas the in leaders, customers efficacy company's across we has than are been we While and in shaping making Since I will identified. on Paycorp reinforce their market gold fiscal enables groups. paths technology and to how our leadership, of HCM XXXX, leadership leader into coaching and our growth to Ryan online suite now into XX% were acknowledged impact XXXX, the their leaders. is framework The product in leadership tools development to framework tools. best launched practices growth

greater Combining for our clients. and these to like platform and our would rapid enable their power to people functions performance I teams and product and will its strengthen also unwavering engineering our expansion. seamlessly synergies acknowledge capabilities dedication enabling building for award-winning our to

customer strategically and add customer assist we We scale. customer consistent, incorporate experience our continue AI high-quality ensure agent to we to experiences our value and AI And elevate technology, within empowers to customers advocates suite, organization our improve experience deployed our inquiries to resolve faster as HCM which efficiency.

success like it our execution, to the for would their year. during efficient customers. experience teams best of our Paycorp Year-over-year, time I all contributions thank we and our most and busiest for service improved making implementation, especially associates, year-end truly

over call guidance. financial the turn I'll that, results Adam to our to discuss With and

Adam Ante

grew percentage filings. Thanks, X third discuss results, acceleration and year-over-year. another driven an of form by and Raul. with our then I'll share our in success total continued for quarter outlook second Paycor of XX% million, quarter points quarter year-over-year, revenue year. year revenues fiscal of strong the increase XX% an of Recurring market sequentially delivered strong $XXX

our and organic market charge growth, by per which employee month. per to the amount on to number Employees grew the from new has logos continued labor growth and expanding a prior lesser employees is primarily over slow. we As Raul mentioned, year XX% of fueled extent, our the platform

more across We employees customers. million have approximately than X.X XX,XXX now

by employees contributed point HCM quarter, up the gained this X of product to points and As highlighting we We of among of quarter, growth our more thousands our with we In employees. multiple employee investments. sequentially. up than which embedded success capabilities growth XX%, with move outsized market X X,XXX we and are XXX customers grew our with the product expand to service continue solution, customers momentum experiencing

our The embedded of is customers average our size customer channel within average more than size double today.

will momentum, increased margins the to X% 'XX more by be begin encouraged ramp and larger deals more partnerships to over to than Effective the PEPM time. in as for we're While growth revenue year-over-year accretive quarter. contribute meaningfully embedded early our these fiscal to the $XX

bundle increased expansion product effective by deals, and adoption. cross-sales growth by HCM suite, our a of driven been of pricing embedded PEPM higher combination has X%, powered effective initiatives Excluding PEPM

more forward expect growth customers their and as HCM discounts, PEPM partners deal moving embedded with moderate onboard larger stronger higher volume by margins. offset and average contributions be enterprise sizes which will we We

million levels experience. growth, prior XX%, driving a expense addition differentiate we've expanded gross Comparable as we margins depreciation or top and for steady to and was years, customers. or our suite to of with elevating than higher R&D basis to million the expansion or the basis targets. year, profit $XX valuable In a our sales invested excluding XX% line consistently in HCM margin, to points force on marketing year to gross we to Adjusted amortization, prior scale of improved while client revenue, Sales business. revenue $XX our similar achieve ago capabilities XX% XXX

improvement cash was debt. than free We G&A from generated the no XX.X% Adjusted XX% last up an mark are product basis We strategic scale gaining million make of of margins we as XXX economies this innovation. X% million revenue, year, expense sales and of while we ended $XX million our continue with We XXX expand in quarter. points $XX points of of or increased flow and year. adjusted or cash from force investments grow. quarter in to with million $XX to deliver to last basis $XX XX.X%, of G&A more income operating

growth in modern solutions. guidance combination our look labor among tight remains backlog healthy and ahead, assumes demand employee be we for continues market growth existing flat As HCM The our fiscal steady market labor customers confidence Embedded for of HCM of The provides rest half. to Enterprise and the organic our deals of second the year.

the and of or quarter, $XX $XX growth adjusted of operating of income between For between total million $XXX at and and range we XX% high million the third the end revenues million. expect $XXX million

For of growth anticipate million $XXX revenues the million. year, full operating XX% income to the we of and or top million of at adjusted $XXX expect range, end million $XXX the we to $XXX

funds an interest XXX the just income $XX approximately $X.X on quarter, we $XX on rate to year. of $XX in full Based current client million rates, range income for effective of This of generated the billion, expect of we million average points. basis under million interest

and for HCM. systems. majority an still of vast legacy about It's optimistic expansion of we're opportunity continual runway ROI the as is for HCM our by which for our growth remain U.S. paid delivering any compelling to being business, capability are clients increased We the opportunity in our over switch. has to fiscal essential suite, XXXX. Adding employees since sustainable of There's plenty XX%

significant the With scale positioned the and margin business is We there leverage. that, to strong questions. believe are improve Operator? demonstrating call long profitability open well believe expansion over drive for and opportunity revenue the growth we to further as deliver are term. we'll We we

Operator

line of the first Instructions] JPMorgan. question Murphy [Operator from comes Our Mark with

Mark Murphy

double-click HCM nice wanted Congrats to solution. I on try embedded a consistent to the performance. on

been mentioned in the bookings as twice, maybe or it you've for sight next the I recall Do of this into or refining start generating larger think of You it and once some partners the any you into I you last that line have product the you take year? might maybe early live announcement later year get go-to-market. summer, part

Adam Ante

for a been new beat have of expectations with deals early. I the really now well just they're and booking pipeline the pretty existing mean strong partners, Absolutely. has right deals Mark, Yes. that as strong we number our as

success. of We're future the to business. still excited about the really it's pipeline and relative building how course, really partnerships But we've is Of relatively already. on small, some clients existing rest the both seen but the

Raul Villar

lumpy, what of would the lot -- is partnerships would takes I right? Yes. to signing get that is the It just those I Mark, through. a add time -- what

to pipeline closed really built we've XX we're will from to hoping so that days. And next the start pipeline over deals nice up a that go

Mark Murphy

see. I

this, margin margin on going be of Okay. at And the Once that double level? or margin accretive? that to gross think to neutral kind slightly just going we that check it's gets

Adam Ante

low gross think margin about house, costs. lower it's we opportunity the here. to I the like I are the I that's you're and income, of little bit bring adjusted mean favorability multiples on. income. overall I margin the side the a mean Yes. the operating Between to adjusted mean, and really sales just more marketing operating gross terms the see excited driven cost but in on going of margin by Over primarily really the sales clients

might with see on, still costs far. more they're And depending client, And some thus implementation the the actually we've associated experienced on of that. that's portfolio size what if the you bringing

associated margin into bit because it's is when costs significantly 'XX, for new ongoing portfolios more upfront little cost lower there's over, the we So a about talk sales really with the bringing those expansion business. but

Mark Murphy

more type into I'm ground which kind from that algorithm or code efficiencies alter seeing your drive cover enough is more are sensing those to Okay. noticed products -- that AI thing. even provide years? I the I'm of you And of initiatives hiring be expansion one you're either uplift Are significant support of or the great you mentioned you allow per strategically or several hear. final if growth kind might that the noticeable any more wondering helping just or one. business, developer, . just write person you or incorporating of to that next margin per the to change in plans some are if wondering to

Raul Villar

Yes.

we a is both I grow, think think the better from ultimately, our are to do we're great. as still perspective. areas. technology we'll helping that that want more able we priority And we'll think future our early priority, efficient. forward, in I to but then the it's The it But we -- to And the innings, be leveraging deliver those ultimately, us is we experience of very start more we're continue think -- #X it's to sure we guidance sight, line user And move in is as experience. become into user model I to and efficiently. to all think make in #X

Operator

Our of from the with comes Sachs. next Borges question Gabriela line Goldman

Gabriela Borges

data of and could I on I and sales revenue benchmark productivity little sales we tenured other bit the about next we on you want think topic you thinking go growth any you're delta how hiring, years? that your a couple the XX% algorithm about mentioned as sales plans quarter the churn. consistently force, how where think comment stay overall you're that term. have Maybe of you're that reps recurring versus over specifically, ramp within seeing longer force should thinking can this about to growth the XX% pretty how improving this between And

Raul Villar

And optimal such big as productivity to tenure. Raul. we've marketplace X Gabriel, number believe Yes. in the and opportunity Tier reps, us hire. for also Tier with is X previously, it's an We in just a XX% their in X talked that see we and their increases Tier about

more that's is continue tenure excited to we're grow marketing we're seeing so average efficiency. which on drive grow we tenure, believe will average our focused what our year-over-year. and And sales long-term which productivity, that And we're to will drive

Gabriela Borges

you makes as the hiring on SMB the the interesting healthy. Would then the market the mid-market. environment bit demand is I That above the love and within comparing Great. and maybe in you specific I color mentioned a And share enterprise. know observations know broadly trends sense. the lower follow-up, some versus that? within ecosystem of Any little commentary contrast a made vertical end past, and the slightly mid-market and labor of to more any in between

Raul Villar

Yes.

top enterprise and demand the three strong we've our seen of low all demand. really funnel in the I mid-market of The segments. of seen think end the SMB, market, we've

has changed exciting. So that's there. Nothing

when unique trends professional food seen and I an new like seen, services. break strength in manufacturing. you We've modest seeing from it perspective, some bookings say, real think I year-over-year performance beverage down what in we're we've industry in and would

So the across newspapers. that been nthree overall, in that we But you has perspective, all mirrors would kind some serve. segments it of of read from what strong demand

Operator

next with comes the Our Shah line from question Bank. Bhavin of Deutsche

Bhavin Shah

more looking a like deceleration might you in little tougher But of off, Great. more seems back we to bit comp the just the at that seems broadly, numbers? in little the that, terms insight? in here. are just forms. continue think conservative there's the the quarter just be XQ half for dive there's payroll of of to at kind how as embedded of about you provide take year. more kind performed maybe guide. a of Starting It Can Can embedded raise It the with guidance just with like you assumptions a relative into looking the a bit in that

Adam Ante

really rate, level Yes, is and generally going changing and that here. more any we're right, yes, sort we or drive grow try do plus not and so of philosophy The QX. to conservatism that employee are filings see filing in form that ERC. at be to changes rate growth lower a of consistent less minus seeing We keep to to any pricing expect growth, because of slightly a the may forms going related happening,

little QX we overperformance QX. the came to down of that just going of the part which to also slightly form at filings. is is the portion total dynamic of that so full course, the Of into form related slow QX, filings in guide look And is year, beat then a had a into bit that from of as you

the performance. think just we And makes some -- year just see upside sense for full going so aren't the to of to that which we given we

in in So just filings, rate QX growth a form with slower are slightly outsized which the QX.

Bhavin Shah

Super helpful here.

what's efforts to additional Just broker just hear referring here? bit quick kind the within your to little yourselves? And kind of of adoption are that great It's the of traction. brokers a the into driving clients active dive you one follow-up. Can increased

Raul Villar

Yes.

our on the I think just team really direct best focused targets. we've sales

drive And on X really we so national we're have focusing opportunities. that partnerships to

we it how As network. into our sales us to expand gives opportunity people are many the headcount, an expand broker obviously, reaching

the have And brokers on and us so works. about focus value our target the benefit love it's in to most that They the just proposition continuing market. platform, I the think clients

Operator

the line Terrell of Securities. Our next question from comes Truist with Tillman

Terrell Tillman

but of evolving do be bit Raul, or on would and counts is different you Solid if terms those much follow-up. transactions? of part might had then of did then a this recurring just And I need little mean, not that early the requirements for a you at we're a question And X,XXX-plus kind the deals? one say it quarter. go-to-market looking of question. execution of XQ I have of in like product here question second employee kind revenue the in I mean first terms question follow-up in an business? hopefully, X-parter, almost a signing a for see bigger that part XQ Adam. even first is, actually I even year for I will maybe of and

Raul Villar

Yes.

the us enterprise On clients product pulling the -- the the enterprise. into are side,

enterprise So those attractive functionality side, space, feature really lots is the platform on to customers. hunts in the of which the talent

so us And that's there. taking what's

on have our accounts. are also focused enterprise We reps reps, really the most experienced

So we've perspective slightly we from segmented the that sales sure have are force skill those accounts. to the that right make on that calling level

Terrell Tillman

relates in performance for year maybe assumptions? delta of of kind changed I looking prior And then assumption? guess It in form Got question, kind any terms of anything your Or revenue over the follow-up, the Adam. at internal guide full notably XQ. Okay. full it. a the the year Has to filing and just recurring

Adam Ante

where changed. And performance getting No, Yes. Terrel. we we prepped I the bit nothing's of we there's operational had it's -- -- a that really goes W-Xs mean, into see shipped. some and that the just getting of overperformance overperformance end able little at those were the effective there be to more And QX. towards helped bit in a here door. the out we December

the different. on continued full about good year overall. to we and And both fact, in year continued raise we be nothing would and expect guide recurring any for So the feel on that's the see the full the -- why that

Operator

question Company. line Needham from Scott of with Berg the Our comes next &

Scott Berg

A couple everyone. nice of Hi, quarter. Really results me. questions this Congrats. for

Let's start the channel. on broker

contribution about XX very bookings broker I those the there? think the to you there. from does pace moderate think a like said Or going continue? should contributions it Do seems from that channel forward? in How XX% Because you expect were quarter number. of a we your high

Raul Villar

really remained it's moderate, would strong. continued think we've but I to it think slightly Scott,

being our mid-XXs continue probably innings. early scale we as as is high to that the we'll we we're where be still think we XXs, bookings. I in But outlook, said, X-year think think about

tons broker there's space of white in We're opportunity. the

we're And So just this getting better gotten of our kind execution has started. year. significantly

a for and team the we're so have us done programs these job, really that we phenomenal proud has And results. the driving of

Scott Berg

is Helpful. you from with the installed give a to maybe last it. any appetites you some that perspective, around lot sell. And like selling then way Can additional years, the progress customers your or existing certainly several back over their what buying a commentary to You kind your look the staying base up gives route. changes sales But XX% PEPM modules? Got follow-up base? mentioned to existing of on the on for more selling,

Raul Villar

been We're workforce to modules continuing mean, improve -- Obviously, attach No. We consistent. rate a has I attach also subtly it's rate. sold. significant talent significant management,

so continues we team bundle at And good, also point both feel we're bigger the to the sale ball but of delivering really hit that of cross-selling out our park. a

continuing to make technology offer. work so latest that we to the our with clients optimizing they're And sure

we really a been and still it's So of lot successful, that in channel. have opportunity

Operator

next line Brad Our the comes Reback from question Stifel. with of

Brad Reback

in obviously, sales should Well, about about up, much. get teens your And fiscal very this How those to year converging to we 'XX, What so you're happen basis? up think we'll X-point increased to head a count all you going say, high to grow Thanks Great. entering me? two there's delta. XXXX, was fiscal a XX%. go-forward or about those needs on

Raul Villar

And tenure it's right us focus as to Yes. direction. driving in moving months in grown productivity. tenure, It's and worked which grow tender sales growing has really drives continue person about we the continuing that really on That year-over-year, the to is the which organization. our

would what head these count see year-over-year, we're call, large, we classes, anniversary So improved productivity. going as to we

about to And from to year us X them really so year year X X. it's driving

Operator

of from James. Brian comes question Peterson next line the with Our Raymond

may Brian, your be muted. line

Brian Peterson

button. the by bamboozled I'm Sorry, new

about Sorry guys. that,

embedded one So on just channel. for the me

concentrated lies those of to think love little over couple opportunity of customers? Is time? of diverse already. the then of that as to bit a some an Or maybe a I'd about fairly within expand the and understand platform it kind of is you more So X% there's with partners

Adam Ante

I partners active partners us with just really a of have right on It's now. Yes. the still Brian, number early our it's that of yes, with in couple of terms we mean platform.

lot of really sign enterprise a generating customers they're do course, few a end there's few. a expansion. a to an more still of themselves perspective. from that for and that partners middle new we partners, market They yes, that really so to growth the But customers. a partners And going continue customer lot are we're we strong sort look us. like There's the are, have as only just see today, concentration not there's And

Brian Peterson

And Adam, maybe follow-up. a

So how and about expand we channel. do the land think in that

with get launched time? get customers Or of one across in kind base? gradually is implemented something fully you customer that folds did when the that over those of So it

Raul Villar

to the new partners unique. The of ones is that sell agreement really cross-selling they that go-forward were go-forward customer today so Every the a of we've then over. bases we been had Yes. a basis basis to on And converting existing pleased -- have and on sell they're ability existing base. outside with new our

expectations. of kind that's exceeded so And our

Operator

Our question from with comes next the Jared line TD Levine of Cowen.

Unknown Analyst

is This Jared. out again [indiscernible] Zack for

pace in on a And Any decision-making what client so, functionality in change and what or rate? modules sales? any the prospective further, change you demand. question If on new attach think prior First rates change relative to of attach in client quarters?

Raul Villar

Yes.

entire as As the deal on time far there's no change. base, cycle frame,

but sample you in size. we're However, a by there's down on year-over-year, I the size, enterprise subtle smaller space. it if elongation a mean break

but in far And -- modules as SMB tick mid-market the go, continue ultimately, our the So no changes to core or space. overall we up. same, slightly as base,

So ticking attachment down. board. they're not the better They're slightly we're across -- seeing actually

Unknown Analyst

How any on was versus gross retention. based compare consistent follow-up employer on underlying uncontrollable if controllable the a on it do changes And based segment it. year-on-year? churn? retention or Januarys revenue there And size Got Were

Adam Ante

is been the I our consistent is guidance I'd month month especially it's retention broadly, for as but gross January, on with both about well. that line the a haven't year mean and Yes. say in in And us, for starts has full big like we losses. course, been specific of we're month expectations results, shared how retention thinking

way one broadly. retention So the other on no changes significant or

Unknown Analyst

of line Blair. Matt Pfau the with from comes William question next Our

Matthew Pfau

cadence takes them ask helpful you the when takes It if convert build us to on pipeline. that it be then it partners them embedded long to wanted help could just a understand one would to and long signed, HCM. how for how for of Just pipeline

the using from HCM then a see start So pipeline when converting we how ones and currently before functionality. contribution you the material partners partners currently are originally growth the that are did to to And in that embedded long signed? they that start the the

Raul Villar

Yes. is some different. to that sense existing be client In Every deal slightly that the have need converted. bases

may that upfront take so go-to-market motion. sell quicker on a work little others longer And that's the looking are a implementation and side. then to And new

So partner. it depends really type on of the

And new we're looking to a then the from on so expand up expand existing the they're have to once contributions penetration I think and perspective, basis. our and of they monthly and partner continue running, to base partners, partners continue

no the is sales success So it's of -- normal short. different than a cycle industry. to It's rep speed relatively in the mid-market the

Operator

comes line the BTIG. Matt Our with VanVliet next of question from

Matthew VanVliet

embedded channel. the one I on more guess

you channel do Is that kind it's Just that that attach more the Is what know average? drastically in is curious, sort then overall different seeing? products something embedded but or how of are is trending? maybe more maybe specifically needed maybe early, rate there common you less I see that common. it of multiple of And than

products per the So number I'm is customer. just on how of curious

Raul Villar

that is the was services. it it, entered is people management on. some we also we When payroll of Matt, was want primarily other workforce And what we and and really, found which were -- Yes. what focused

anticipated we than started a the venture. broader we when suite actually it's So

conversation, So are on other is clients our services reporting, are end but -- payroll doesn't lot analytics, our a talent, any well. isn't driver just definitely workforce client. sell. client the that the way focused after ancillary as management, we the the different that the end of than of many end a wanting the they're go purchasing It's Because really different to client clients

Matthew VanVliet

targeting? further out for little looking And that XX markets particular roughly around the trying you that top go-to-market a looking growth the the whether there. the it then any you're more to team, XX% count head of breadth are top Okay. kind on focus heavy when helpful. Very reach you're it's Is you're -- and at

need markets? curious Just those a across more capacity have you key where for

Raul Villar

market a Tier we've the hires about Yes. I U.S. opportunity the is go into in and much the so market, America. X which in mean way the past every today. it X largest allocated way XX% years is The about in largest we almost can the available. in to few we next our we combination reps against XX% Tier think that executing sales resources still. XX And over cities the into add the are of that balance America. kind formula which cities as define Tier we're that the of go and And then X, There's

Operator

Enders comes Our question from Steve next the line Citi. of with

Unknown Analyst

is for on George This Steve.

and where any sourcing noise there's I'm in competitive incremental think, with you're the your I some in some been bookings from? first, of landscape peers that's caused the payroll space. just shifts if wondering

Raul Villar

there take And changes that see don't quarter But category. Most material compete everyone do category. -- we category. the around. know a And X these we quarter, in take we'll was happen. of to on against a any you everyone in any didn't I the to going the share decisions that noise really continue In or bounce that. from in

to every we'll changes. that's so go our see power performance. And go That's is And time. with. end tools we At we payroll delivering forward the really really complicated as on that perfect what a on and can we're not for they that people value focused so and their propositions if market the delivering day, leaders of what

stack. We modern a category. tech in most deliver have the the PEPM We

so going one. And we're after all competitors. focused not any on We're

Unknown Analyst

follow-up then Embedded. on And That a Great. just sense. makes

and an talk be you smooth there's of commonalities just kind talked bespoke to onboarding the of that of you've of you future and the think product? so partners about you've how partners for speed process to if of somewhat onboarding deals kind wondering that far, any flywheel I from there's I'm the can the ramping if about bit leverage process, learnings each tend but these the are had up of a can kind

Raul Villar

I that And of think software we're framework partner different, workforce implementation while type it playbooks starting into time. an management a mean needs type cross-selling get building the vertical I ERP? solution? Yes, for partner and make lot partners. a understand of over all bucketed more a of it they what effective solution? what Is slightly make do it every is Is have more partners. sure. efficient and type help of to Is the different the things, to Those by kind we're to they is

Operator

of line Our Daniel next the comes question from with Markets. Jester BMO Capital

Unknown Analyst

Jester. ] Dan on [ for This baster is Kyle

new was On benchmarking you charging these growth modules? two Are wondering could how any forecasting, then And Are you if and my second thinking progress. if you're as further dig new you for XQ other about them? launches, the relative you the here. conditions two I color saw provide modules? quarter, just shift then to a the a booking maybe bit the during could deeper opportunity into question, And

Raul Villar

Yes.

So the effective with capabilities And with really I will so analytics their combination compensation each for data a strategies they two insights leaders and a believe be strategies they're new taking products. and the PEPM. scheduling providing can our add it's incremental new of for products employees. PEPM $X of each more frontline

our it help strategy fits with in our And trying to we're right and customers. so line where

of our from Our fourth all quarter that that or across page consistent jumped consistent, and we second anything perspective. didn't the quarter bookings calendar off have segments

expected. we so it's kind And of what

Operator

Thank you.

from comes with of Marcon next line Mark question Our the Baird.

Mark Marcon

managing about upmarket making that? a could them more. the enterprise about market? Or the I'm target little extent bit to within you how terms of wondering And are to stay pulled? be thinking sales in force regards you that accounts, are you sure what far And how you with talked the they Wondering

Raul Villar

a as you clients with as mean, define by we analyst, themselves of out can their savvy use. find needs I define kind ourselves long-time while know, size, don't HCM like platform Yes. to they what

So it's needs we really we sell look a thousands. at. into that the analysis And

and are way. depends for what with are have presented on what -- that needs and so reps that it the clients looking client enterprise We XX,XXX is the over we client ones our Obviously, focused the the accounts. tenured employees really on most it

that we can sure they their platform, the meet Paycorp So the needs. make all they help the understand power, and customers

So here. it's in we're obviously early the innings

market or we continued opportunity. our over continue up meet reps our to quarters, we've able get and the the of But power X educate be last on the segment And pulled to platform. reps based to to the X

Mark Marcon

the the you you more keeping and a terms sales about increasing sales in training force the effectiveness And That's Can mentioned them? bit of just to great. selecting regards force. your little with tenure talk of

Raul Villar

by say I #X mean what our months' increased Yes. And that's so priority. I is person XX% year-over-year. would worth the over we've

reps And successful. them and And positive onboarding for us. the we're so focused that's on making activating and really really

. see do an could we year-over-year. productivity And kind -- continue so better better. drive to progress. We want there. that's process. We And of do will I good to we're if progress, this And clearly to ongoing think making continue but it

Operator

There further I'd at the like are time. comments. closing to no questions over this for to floor Raul back turn Villar

Raul Villar

our remain We Francisco. for strategy us remains with Have again connecting evening. plenty Technology healthy San everyone. and Conference this you to several the in events, great at look capture to Securities sustainable including focused executing Thank runway night, share. Demand a on for Yes. JMP we you upcoming forward joining growth, market with of

Operator

teleconference. This today's concludes

may participation. You disconnect lines time. this Thank your for you your at

Paycor HCM (PYCR) 7 Feb 242024 Q2 Earnings call transcript