Paycom Software Inc (PAYC) 2023 Q1 法說會逐字稿

Good afternoon. Thank you for attending the Paycom Software First Quarter 2023 Quarterly Results Call. My name is Matt, and I'll be the moderator for today's call. (Operator Instructions)

下午好。感謝您參加 Paycom Software 2023 年第一季度季度業績電話會議。我叫馬特，我將擔任今天電話會議的主持人。 （操作員說明）

I would now like to pass the conference over to our host, James Samford, Head of Investor Relations. James, please go ahead.

我現在想將會議轉交給我們的主持人，投資者關係主管 James Samford。詹姆斯，請繼續。

Thank you, and welcome to Paycom's earnings conference call for the first quarter 2023. Certain statements made on this call that are not historical facts, including those related to our future plans, objectives and expected performance, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent our outlook only as of the date of this conference call.

謝謝，歡迎參加 Paycom 2023 年第一季度的收益電話會議。本次電話會議上做出的某些非歷史事實的陳述，包括與我們未來計劃、目標和預期業績相關的陳述，屬於前瞻性陳述1995 年私人證券訴訟改革法案。這些前瞻性陳述僅代表我們截至本次電話會議之日的展望。

While we believe any forward-looking statements made on this call are reasonable, actual results may differ materially because the statements are based on our current expectations and subject to risks and uncertainties. These risks and uncertainties are discussed in our filings with the SEC, including our most recent annual report on Form 10-K.

雖然我們認為在此次電話會議上做出的任何前瞻性陳述都是合理的，但實際結果可能存在重大差異，因為這些陳述是基於我們目前的預期，並受到風險和不確定性的影響。我們在提交給美國證券交易委員會的文件中討論了這些風險和不確定性，包括我們最近的 10-K 表格年度報告。

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

在依賴此類前瞻性信息時，您應該參考並考慮這些因素。所做的任何前瞻性陳述僅在作出之日有效，我們不承擔並明確否認任何更新或更改我們的前瞻性陳述的義務，無論是由於新信息、未來事件或其他原因，除非適用法律要求。

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

同樣在今天的電話會議中，我們將提及某些非 GAAP 財務指標，包括調整後的 EBITDA、非 GAAP 淨收入、調整後的毛利、調整後的毛利率和某些調整後的費用。我們使用這些非 GAAP 財務措施來審查和評估我們的業績並用於規劃目的。顯示 GAAP 與非 GAAP 結果的對賬時間表包含在我們今天收盤後發布的新聞稿中，可在我們的網站 investors.paycom.com 上查閱。

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

我現在將把電話轉給 Paycom 的總裁兼首席執行官 Chad Richison。乍得？

Thanks, James, and thank you to everyone joining our call today. We delivered strong results in the first quarter, and I'm very pleased with the progress we've made on a variety of initiatives. I'll start with highlights from the first quarter. Then I'll discuss some of our plans for the remainder of the year. Following that, Craig will review our financials and our guidance and discuss our new dividend policy. Then we will take questions. With that, let's get started.

謝謝 James，也感謝今天加入我們電話會議的所有人。我們在第一季度取得了強勁的業績，我對我們在各種舉措上取得的進展感到非常高興。我將從第一季度的亮點開始。然後我將討論今年剩餘時間的一些計劃。之後，克雷格將審查我們的財務狀況和指導方針，並討論我們的新股息政策。然後我們將進行提問。有了這個，讓我們開始吧。

Our 2023 first quarter revenue of approximately $452 million came in very strong, up 28% year-over-year, with strong recurring revenue growth from new clients. First quarter adjusted EBITDA also came in very strong at $221 million, representing an adjusted EBITDA margin of roughly 49%, up 70 basis points year-over-year. With our updated full year 2023 guidance, we are well positioned to exceed our initial outlook for a solid Rule of 65.

我們 2023 年第一季度的收入約為 4.52 億美元，非常強勁，同比增長 28%，來自新客戶的經常性收入增長強勁。第一季度調整後的 EBITDA 也非常強勁，達到 2.21 億美元，調整後的 EBITDA 利潤率約為 49%，同比增長 70 個基點。憑藉我們更新的 2023 年全年指南，我們完全有能力超越我們最初對 65 條可靠規則的展望。

On the product front, Beti continues to be a key differentiator in the market, with employee self-service payroll continuing to drive strong client additions. The industry transformation to more efficient HCM and payroll processes is accelerating. And now with Beti, payroll processes can be automated to deliver perfect payroll. Using Beti, employees do their own payroll. Employee usage is a key differentiator, and new clients are coming to Paycom for exactly that. With 95% of database interactions being completed by the employees of our clients as measured by the DDX, we are changing the way employees engage with HCM solutions.

在產品方面，Beti 繼續成為市場上的關鍵差異化因素，員工自助服務薪資繼續推動強勁的客戶增長。行業正在加速向更高效的 HCM 和薪資流程轉型。現在有了 Beti，薪資流程可以自動化以提供完美的薪資。使用 Beti，員工可以自己支付工資。員工使用情況是一個關鍵的差異化因素，新客戶正是為此而來到 Paycom。根據 DDX 衡量，95% 的數據庫交互由我們客戶的員工完成，我們正在改變員工使用 HCM 解決方案的方式。

Our product and go-to-market strategy are working. I just returned from our annual President's Club meeting with our top salespeople, and I couldn't be more excited about the tone of the conversations and enthusiasm for our product, especially around employee usage in Beti.

我們的產品和上市策略正在發揮作用。我剛從我們與頂級銷售人員舉行的年度總裁俱樂部會議回來，我對談話的基調和對我們產品的熱情感到無比興奮，尤其是在 Beti 的員工使用方面。

We are having increasing success at market with continued rapid growth at the upper end of our target market range. Large organizations benefit tremendously from simplifying their HCM and payroll needs with our single database solution.

我們在目標市場範圍的高端持續快速增長，在市場上取得了越來越大的成功。通過我們的單一數據庫解決方案簡化 HCM 和薪資需求，大型組織受益匪淺。

We have 5% of the TAM today. However, our TAM has increased now that we've laid the groundwork for a global platform, beginning with global HCM, which further strengthens our value proposition with our largest clients.

我們今天有 5% 的 TAM。然而，我們的 TAM 已經增加，因為我們已經為全球平台奠定了基礎，從全球 HCM 開始，這進一步加強了我們對最大客戶的價值主張。

To sum up, we are executing well with a highly differentiated product and go-to-market strategy. Our addressable market opportunities continue to expand, and we are pleased to enhance our long-term commitment to stockholder return with the initiation of the quarterly dividend program.

總而言之，我們在高度差異化的產品和上市戰略方面表現良好。我們可尋址的市場機會繼續擴大，我們很高興通過啟動季度股息計劃來加強我們對股東回報的長期承諾。

I'd like to thank our employees for helping lay the foundation for another record-breaking year.

我要感謝我們的員工幫助為又一個破紀錄的年度奠定了基礎。

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

有了這個，我會把電話轉給克雷格，讓他審查我們的財務和指導。克雷格？

Before I review our first quarter results for 2023 and our outlook for the second quarter and full year 2023, I would like to remind everyone that my comments related to certain financial measures will be on a non-GAAP basis.

在我回顧我們 2023 年第一季度的業績以及我們對第二季度和 2023 年全年的展望之前，我想提醒大家，我對某些財務指標的評論將基於非公認會計原則。

We delivered very strong results this quarter with revenue of $451.6 million, up 27.8% compared to the prior year period. Our GAAP net income for the first quarter was $119.3 million or $2.06 per diluted share, up 29.8% compared to the prior year period based on approximately 58 million shares. Adjusted EBITDA was $220.5 million in the first quarter of 2023 or 48.8% of total revenues compared to $170.1 million in the first quarter of 2022 or 48.1% of total revenues. Non-GAAP net income for the first quarter of 2023 was $142.7 million or $2.46 per diluted share, up 28.9% from the prior year period.

本季度我們取得了非常強勁的業績，收入為 4.516 億美元，比去年同期增長 27.8%。我們第一季度的 GAAP 淨收入為 1.193 億美元或每股攤薄收益 2.06 美元，比去年同期增長 29.8%，基於約 5800 萬股。 2023 年第一季度調整後的 EBITDA 為 2.205 億美元，佔總收入的 48.8%，而 2022 年第一季度為 1.701 億美元，佔總收入的 48.1%。 2023 年第一季度的非 GAAP 淨收入為 1.427 億美元或每股攤薄收益 2.46 美元，比去年同期增長 28.9%。

Our revenue growth was driven by strong demand, new business wins and new product adoption. Within total revenues, recurring revenue was $444.4 million for the first quarter of 2023, representing 98.4% of total revenues for the quarter and growing 27.6% from the comparable prior year period. Adjusted sales and marketing expense for the first quarter of 2023 was $98.1 million or 21.7% of revenues. We have been aggressively investing in marketing to drive strong demo leads that complement our outside sales model.

我們的收入增長受到強勁需求、新業務贏得和新產品採用的推動。在總收入中，2023 年第一季度的經常性收入為 4.444 億美元，佔該季度總收入的 98.4%，比去年同期增長 27.6%。 2023 年第一季度調整後的銷售和營銷費用為 9810 萬美元，佔收入的 21.7%。我們一直在積極投資營銷，以推動強大的演示線索，以補充我們的外部銷售模式。

Adjusted R&D expense was $37.4 million in the first quarter of 2023 or 8.3% of total revenues. Adjusted total R&D costs, including the capitalized portion, were $55.2 million in the first quarter of 2023 compared to $42.9 million in the prior year period, reflecting continued investment in new products.

2023 年第一季度調整後的研發費用為 3740 萬美元，佔總收入的 8.3%。 2023 年第一季度，包括資本化部分在內的調整後研發總成本為 5520 萬美元，而去年同期為 4290 萬美元，反映了對新產品的持續投資。

For Q2 and full year 2023, we anticipate our effective income tax rate to be approximately 28% on a GAAP basis and approximately 26.5% on a non-GAAP basis.

對於第二季度和 2023 年全年，我們預計我們的有效所得稅率在 GAAP 基礎上約為 28%，在非 GAAP 基礎上約為 26.5%。

Turning to the balance sheet. We ended the quarter with a very strong balance sheet, including cash and cash equivalents of $506 million and total debt of $29 million. Cash from operations was $146.1 million in the first quarter, representing an increase of 24.6%. The average daily balance of funds held on behalf of clients was approximately $2.4 billion in the first quarter of 2023, up approximately 10% year-over-year.

轉向資產負債表。本季度結束時，我們的資產負債表非常強勁，包括 5.06 億美元的現金和現金等價物以及 2900 萬美元的總債務。第一季度來自運營的現金為 1.461 億美元，增長 24.6%。 2023 年第一季度，代表客戶持有的資金日均餘額約為 24 億美元，同比增長約 10%。

Now let me turn to guidance. For fiscal 2023, we are raising our outlook and now expect revenue in the range of $1.713 billion to $1.715 billion or approximately 25% year-over-year growth at the midpoint of the range. We expect adjusted EBITDA in the range of $717 million to $719 million, representing an adjusted EBITDA margin of approximately 42% at the midpoint of the range. With these strong results and outlook, we are well positioned to exceed the Rule of 65.

現在讓我轉向指導。對於 2023 財年，我們提高了預期，現在預計收入在 17.13 億美元至 17.15 億美元之間，或者在該範圍的中點同比增長約 25%。我們預計調整後的 EBITDA 將在 7.17 億美元至 7.19 億美元之間，相當於該範圍中點的調整後 EBITDA 利潤率約為 42%。憑藉這些強勁的業績和前景，我們有能力超越 65 規則。

For the second quarter of 2023, we expect total revenues in the range of $397 million to $399 million, representing a growth rate over the comparable prior year period of approximately 26% at the midpoint of the range. We expect adjusted EBITDA for the first quarter in the range of $152 million to $154 million, representing an adjusted EBITDA margin of approximately 38% at the midpoint of the range.

對於 2023 年第二季度，我們預計總收入在 3.97 億美元至 3.99 億美元之間，與去年同期相比，在該範圍的中點處增長率約為 26%。我們預計第一季度調整後的 EBITDA 將在 1.52 億美元至 1.54 億美元之間，調整後的 EBITDA 利潤率在該範圍的中點約為 38%。

Finally, after 25 years of rapidly growing Paycom into a highly profitable company, we're expanding our capital allocation strategy. On May 1, the Board of Directors approved a quarterly dividend program that we expect to initiate in mid-May. In 2023, we project Paycom will generate greater than $1.7 billion in revenues, over $700 million in adjusted EBITDA and strong operating cash flow, all of which continue to grow. We believe Paycom is in a unique position to return value to stockholders in the form of a dividend and still have the necessary resources to aggressively pursue growth opportunities.

最後，經過 25 年的快速發展，Paycom 成為一家高盈利公司，我們正在擴大我們的資本配置戰略。 5 月 1 日，董事會批准了我們預計將於 5 月中旬啟動的季度股息計劃。到 2023 年，我們預計 Paycom 將產生超過 17 億美元的收入、超過 7 億美元的調整後 EBITDA 和強勁的運營現金流，所有這些都將繼續增長。我們相信 Paycom 處於獨特的地位，可以以股息的形式向股東回報價值，並且仍然擁有必要的資源來積極尋求增長機會。

Since 2016, we returned a total of nearly $600 million to stockholders through stock buybacks, and we have a $1.1 billion buyback authorization still in place. Today's dividend policy announcement reflects our confidence and the resilience of our long-term growth opportunity, the strength of our balance sheet and the profitability of our business model. We intend to pay a dividend at an annual rate of $1.50 per share with a first quarterly dividend of $0.375 per share payable in mid-June, subject to Board approval.

自 2016 年以來，我們通過股票回購向股東返還了總計近 6 億美元，我們仍有 11 億美元的回購授權。今天的股息政策公告反映了我們對長期增長機會的信心和彈性、我們資產負債表的實力以及我們商業模式的盈利能力。我們打算以每股 1.50 美元的年利率支付股息，並在 6 月中旬支付每股 0.375 美元的第一季度股息，但須經董事會批准。

2023 is off to a great start. We are in a strong financial and strong competitive position in a large and attractive addressable market. And we have a long runway to continue to deliver rapid organic revenue growth, high profit margins and attractive cash flows.

2023 年是一個良好的開端。我們在一個龐大而有吸引力的潛在市場中處於強大的財務和強大的競爭地位。我們還有很長的路要繼續實現快速的有機收入增長、高利潤率和有吸引力的現金流。

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

有了這個，我們將打開問題熱線。操作員？

(Operator Instructions) The first question is from the line of Raimo Lenschow with Barclays.

（操作員說明）第一個問題來自巴克萊銀行的 Raimo Lenschow。

Congrats on another strong quarter and the dividend introduction. Two quick questions from me. First, on the global initiative, Chad, can you help us understand a little bit, like, how global or, like, what's the extent of what you're trying to do here? Is this, like, helping existing customers that have subsidiaries? Is this, like, a whole sea change in strategy that you become like more international? Just help us understand a little bit there. And then I have one follow-up.

祝賀又一個強勁的季度和股息的引入。我有兩個簡短的問題。首先，關於全球倡議，乍得，你能幫助我們了解一點，比如，全球性程度如何，或者，你在這裡嘗試做的事情的範圍是什麼？這是在幫助擁有子公司的現有客戶嗎？這是否是戰略的徹底改變，讓您變得更加國際化？只是幫助我們在那裡了解一點。然後我有一個跟進。

Sure. So right now, Raimo, we have several clients who currently use our domestic software, and they use it internationally. They rig the system a little bit so that they can store employees in other countries. And then oftentimes, they'll work with a third party for payroll. So our current clients, they don't have to do this any longer because the Paycom system now does have global HCM product that will work in 180 countries and 15 languages. And global HCM for us is everything minus the payroll side.

當然。所以現在，Raimo，我們有幾個客戶目前使用我們的國內軟件，他們在國際上使用它。他們對系統進行了一些調整，以便他們可以在其他國家/地區存儲員工。然後通常，他們會與第三方合作支付工資。所以我們現在的客戶，他們不必再這樣做了，因為 Paycom 系統現在確實有全球 HCM 產品，可以在 180 個國家和 15 種語言中使用。對我們來說，全球 HCM 就是減去工資方面的一切。

And so we've looked at integration opportunities. We've looked at working with third parties and even potential acquisitions. But the fact is the -- everyone else does it the old way, and payroll and HR departments send data for processing. And we're not going to be putting any development into the old way. So for us, Beti is packing her bags and will be going around the globe as we develop it out.

因此，我們研究了整合機會。我們考慮過與第三方合作，甚至是潛在的收購。但事實是——其他人都以舊方式處理，薪資和人力資源部門發送數據進行處理。而且我們不會以舊方式進行任何開發。因此，對於我們來說，Beti 正在收拾行李，並在我們開發它的過程中環遊全球。

Yes, yes. Okay. Perfect. Okay. But does it mean that you want to become now a global company with operations in other major countries? Or is this just more for U.S. domestic clients to give them more optionality and just kind of work with them better?

是的是的。好的。完美的。好的。但這是否意味著您現在想成為一家在其他主要國家開展業務的全球性公司？或者這只是為了讓美國國內客戶有更多的選擇權，更好地與他們合作？

Yes, absolutely, we'll be a global company. This is the first step, and that's moving our product into the different languages and getting the HCM side done. And now we're heavily focused on bringing Beti to the other countries, which it will require us to have operations in certain countries in order to do that, in order to process in those countries.

是的，當然，我們將成為一家全球性公司。這是第一步，將我們的產品轉移到不同的語言中並完成 HCM 方面的工作。現在我們非常專注於將 Beti 帶到其他國家，這將要求我們在某些國家/地區開展業務才能做到這一點，以便在這些國家/地區進行處理。

The next question is from the line of Samad Samana with Jefferies.

下一個問題來自 Jefferies 的 Samad Samana。

Congrats on the good quarter. Chad, I had a whole list of questions, but then you said the word open to acquisitions, which I haven't really ever heard you say before. So I'm going to pivot in real time here and ask you between the dividend announcement, you mentioning potential for M&A, which is something Paycom hasn't historically done. Is M&A something that is just maybe going to be something part of the broader capital allocation strategy of how to use the company's cash going forward? Or -- and is that just limited to maybe the global side of it? Or is it -- would it be something you'd explore in other areas, too?

恭喜這個好季度。查德，我有一大堆問題，但後來你說了對收購開放這個詞，我以前從未聽過你說過這個詞。因此，我將在這裡實時轉向，並在股息公告之間問你，你提到併購的潛力，這是 Paycom 歷史上沒有做過的事情。併購是否可能成為更廣泛的資本配置戰略的一部分，即如何使用公司的現金？或者——這是否僅限於它的全球方面？或者它是——你也會在其他領域探索的東西嗎？

Well, I mean I don't want to say never, but it's been our process to develop internally and develop things that way and grow that way. And so my comment earlier was more as we looked at building out the payroll side internationally. We did review multiple options for that. But at the end of the day -- there's no shortcut to long-term success. And so at the end of the day, we're going to dance with what brung us, and we know how to develop software, and we're already well on our way in getting things set up to be able to have Beti in all the other countries as well.

好吧，我的意思是我不想說永遠，但我們一直在內部發展，以這種方式發展事物並以這種方式成長。因此，我之前的評論更多是因為我們著眼於在國際範圍內建立工資單方面。我們確實審查了多個選項。但歸根結底——要取得長期成功沒有捷徑可走。所以在一天結束的時候，我們將與我們一起共舞，我們知道如何開發軟件，我們已經在準備好一切，以便能夠擁有 Beti其他國家也是如此。

So an answer to your question, I would say more no, Samad, I mean, if -- it's going to have to be direct with that, but we did the dividend, and we still have a $1.1 billion buyback in place.

所以回答你的問題，我會說更多不，薩馬德，我的意思是，如果 - 它必須是直接的，但我們分紅了，我們仍然有 11 億美元的回購。

Great. And then maybe just a quick follow-up for Craig. Just the numbers on the margin side were impressive as always. The sales and marketing dollars jumped a pretty good bit from 4Q to 1Q more than you normally see. I was just curious, I know you mentioned marketing campaigns. Was there any acceleration or pull forward maybe in sales headcount additions or anything else that we need to maybe be aware there beyond just digital marketing? And how should we think about that maybe going forward?

偉大的。然後可能只是克雷格的快速跟進。只是利潤方面的數字一如既往地令人印象深刻。銷售和營銷費用從第 4 季度到第 1 季度的增長比您通常看到的要多得多。我只是好奇，我知道你提到了營銷活動。除了數字營銷之外，是否有任何加速或推動銷售人員增加或我們可能需要注意的其他事情？我們應該如何考慮未來的發展？

No. I would just say it's pretty normal. I think last Q1 was slightly down. But yes, I mean, just kind of normal marketing spend and campaigns that we talked about kind of from Q4 of 2022 to Q1 of 2023, some of those pushed into this quarter.

不，我只想說這很正常。我認為上一季度略有下降。但是，是的，我的意思是，我們討論的是從 2022 年第四季度到 2023 年第一季度的正常營銷支出和活動，其中一些被推遲到本季度。

The next question is from the line of Brad Reback with Stifel.

下一個問題來自 Stifel 的 Brad Reback。

Chad, you have a pretty unique perspective on the economy across the country, down market, upmarket geos, verticals. Anything you're seeing specifically that gives you pause or optimism?

乍得，你對全國經濟、低端市場、高端市場、垂直市場都有非常獨特的看法。您看到的任何特別讓您停頓或樂觀的事情？

Yes. I mean, no, I wouldn't say either way. I mean I do think it's a little bit easier to hire. I would look -- if you're looking at from a year ago, I would say the labor market was a little bit tighter for us on hiring just as more people touted the work-from-home in which we came back to work. I think that especially on the tech side, we seem to be doing very well, attracting top talent there as more and more companies have shed some of those jobs.

是的。我的意思是，不，我不會說任何一種方式。我的意思是我確實認為招聘更容易一些。我會看——如果你看的是一年前的情況，我會說勞動力市場對我們來說在招聘方面有點緊張，就像越來越多的人吹捧我們回來工作的在家工作一樣。我認為，尤其是在技術方面，我們似乎做得很好，隨著越來越多的公司裁員，吸引了頂尖人才。

From our own client base, we're definitely focused on adding clients. Don't really have anything to call out on seeing any negative softening within our own client base. I've tried to do as much as I can to kind of look into the future with 5% of the TAM and several accelerators for ourselves. I'm focusing on being a salesperson right now than an economist. But definitely, we're really not seeing much in our own numbers as we look into the future. But from hiring people, which, I mean, I think is somewhat of a proxy to what happens as well for our clients, we are definitely seeing it. It's a little bit easier to hire, especially on the technical talent side.

從我們自己的客戶群來看，我們絕對專注於增加客戶。在我們自己的客戶群中看到任何負面的軟化，真的沒有什麼可呼籲的。我已經盡力用 5% 的 TAM 和幾個加速器來展望未來。我現在專注於成為一名銷售人員，而不是一名經濟學家。但可以肯定的是，當我們展望未來時，我們在自己的數字中確實看不到太多。但是從招聘人員來看，我的意思是，我認為這在某種程度上代表了我們的客戶所發生的事情，我們肯定會看到它。招聘起來要容易一些，尤其是在技術人才方面。

Yes, Brad, I would say on our client base, I mean, we have a very diversified client base, and that's both geographically and based on industries. So some of the things you're hearing out there, we're not overly exposed to those.

是的，布拉德，我想在我們的客戶群上說，我的意思是，我們有一個非常多元化的客戶群，這在地理上和行業上都是如此。所以你在那裡聽到的一些事情，我們並沒有過度接觸這些。

The next question is from the line of Mark Marcon with Baird.

下一個問題來自 Mark Marcon 與 Baird 的對話。

Congratulations on the really strong results and also the initiation of the dividend, which I think is a huge positive. With regards to what you ended up seeing during the selling season and then extending into the first quarter, could you give us a little bit of a sense for -- on the recurring revenue, if we strip out the float income, what you ended up seeing in terms of, like, sales from new logos relative to upsells, relative to increases in employment within the existing base and how you're thinking about the pipeline on a go-forward basis?

祝賀真正強勁的業績以及紅利的開始，我認為這是一個巨大的積極因素。關於您在銷售旺季以及隨後延續到第一季度的最終結果，您能否讓我們了解一下經常性收入，如果我們剔除浮動收入，您最終會得到什麼從新徽標的銷售額與追加銷售的關係，與現有基地內就業人數增加的關係，以及您如何考慮未來的渠道來看？

Yes. I mean for us on that, it's all really about new logo adds. I mean increases in employment from existing base or decreases, I can't say that, that's had a meaningful impact on us one way or the other with the exception of the -- what I'm going to call maybe a 6-month to 12-month period in COVID where it went down and then back up, you had some significant fluctuations then. But since stabilization, it's not going to be employee gains, and/or at this time, we don't really have the employee -- employees leaving that would impact that.

是的。我的意思是，對我們而言，這一切都與添加新徽標有關。我的意思是在現有基礎上增加或減少就業，我不能這麼說，這對我們產生了一種或另一種有意義的影響，除了 - 我可能稱之為 6 個月到在 COVID 的 12 個月期間，它先是下降，然後又回升，然後出現了一些顯著的波動。但自從穩定以來，這不會是員工收益，和/或此時，我們真的沒有員工——員工離開會影響到這一點。

So for us, it's new logos. We added over 3,000 clients to Beti in this first quarter, and that's been going really well. I don't know if Craig would have anything to add to that.

所以對我們來說，這是新的標誌。今年第一季度，我們為 Beti 增加了 3,000 多個客戶，而且進展非常順利。我不知道 Craig 是否有什麼要補充的。

No, I would agree with Chad. I mean it's primarily new logo wins, and that's what's driving the recurring revenue.

不，我同意乍得的意見。我的意思是，這主要是贏得了新徽標，這就是推動經常性收入的原因。

Great. And you just came out of club. What are you seeing just in terms of sales force productivity? And how much more were that people have to do in order to qualify for club? And what regions are you really starting to see some real pickups in terms of traction?

偉大的。而你剛從俱樂部出來。您如何看待銷售人員的生產力？為了獲得俱樂部資格，人們還需要做多少事情？在牽引力方面，您真正開始在哪些地區看到一些真正的回升？

Yes. We had the President's Club in Hawaii, which was the very same place that we had it at our initial President's Club 15 years prior. So I was able to actually talk about the numbers from that first club and now. And we've continued to accelerate the amount that any one sales rep can sell. Our top sales reps continue to sell more than they have in the past. This year, again, I mean, we had a rookie sales rep that sold over $2 million. When we IPO, that would have been great for a city. And now we have a rookie rep selling that.

是的。我們在夏威夷擁有總統俱樂部，這與 15 年前我們在最初的總統俱樂部擁有的地方完全相同。所以我能夠真正談論第一家具樂部和現在的數據。我們繼續加快任何一位銷售代表可以銷售的數量。我們的頂級銷售代表繼續銷售比過去更多的產品。今年，我的意思是，我們有一位新秀銷售代表，銷售額超過 200 萬美元。當我們首次公開募股時，那對一個城市來說會很棒。現在我們有一個新手銷售代表。

And so the numbers continue to go up as we've had -- we've continued to develop product. We put more into the product. So it produces more value. So of course, it costs a little more than what it used to. And then we're getting better at marketing and landing leads that -- we're also getting better at closing because we have a very strong differentiator. And we're back out in the field. I think that was a big part of it, too, for us to get back out face-to-face because these are big decisions for companies to make. And I think we present well in person.

因此，數字繼續像我們一樣上升——我們繼續開發產品。我們在產品中投入更多。所以它產生了更多的價值。所以當然，它的成本比以前多一點。然後我們在營銷和登陸方面做得更好——我們在關閉方面也做得更好，因為我們有一個非常強大的差異化因素。我們又回到了現場。我認為這也是其中很重要的一部分，因為我們要面對面地回來，因為這些是公司要做出的重大決定。而且我認為我們親自展示得很好。

I would expect another record to be broke next year as we've already got some reps that are very close to what our top rep finished at last year. So that's -- and which is always how we've achieved our numbers as sales performance continuing to get stronger.

我預計明年會打破另一個記錄，因為我們已經有一些非常接近我們頂級代表去年完成的代表。這就是 - 隨著銷售業績持續走強，我們一直是如何實現我們的數字的。

The next question is from the line of Brian Schwartz with Oppenheimer.

下一個問題來自 Brian Schwartz 和 Oppenheimer。

I'll congratulate a real nice fine start to the year for the business. Chad, I wanted to ask you -- I saw that you announced a global HCM solution and capability this quarter. I just wanted to ask you on the strategy behind that. Is the strategy more to extend the reach and capabilities of your multinational customers? Or is there an opportunity that you see in the future of targeting international markets?

我要祝賀今年的業務開局非常好。乍得，我想問你——我看到你在本季度宣布了全球 HCM 解決方案和功能。我只是想問你這背後的策略。該戰略是否更多地是為了擴大跨國客戶的影響範圍和能力？還是您認為未來有機會瞄準國際市場？

And then if I could ask one other question along this new solution. How should we think about the solution in terms of the impact to the margin, whether it can be accretive or dilutive to the overall business?

然後我是否可以根據這個新解決方案提出另一個問題。我們應該如何考慮對利潤率的影響的解決方案，它是否可以增加或稀釋整體業務？

I mean on the first question, I mean, I think people can talk about whether it's a single database or willingness to integrate with multiple systems and what have you. The fact is, is there's one type of employee. I mean the employees are the same, and they like doing their own payroll. And so for us, international and laying the groundwork with global HCM is the first step to going all the way upmarket. I mean there's never really been an issue for us and scalability of the system. It's really been about the buying decisions that you'll oftentimes see way upmarket.

我的意思是關於第一個問題，我的意思是，我認為人們可以談論它是單一數據庫還是願意與多個系統集成，以及你有什麼。事實上，只有一種類型的員工。我的意思是員工都是一樣的，他們喜歡自己做工資單。因此，對我們而言，國際化並為全球 HCM 奠定基礎是邁向高端市場的第一步。我的意思是，對於我們和系統的可擴展性來說，從來沒有真正的問題。這真的是關於你經常會看到高端市場的購買決定。

Well, employees these days, they have a high tolerance for a system complexity in any stage of product that they use. And so I think we've got a very simplified product. It does very complex things. And I would say there might have been one thing that we were missing to be able to go work with the largest companies in the world. And I don't think we're going to be missing that one thing very much longer.

嗯，現在的員工，他們對他們使用的產品的任何階段的系統複雜性都有很高的容忍度。所以我認為我們有一個非常簡化的產品。它做非常複雜的事情。我想說的是，我們可能缺少一件事，無法與世界上最大的公司合作。而且我認為我們不會再錯過那件事了。

That said, I mean, our system still does work well. We have a lot of clients that have -- definitely, we're having success upmarket. We have a lot of clients that are 10,000 employees and more. We have clients that even like our system so much, they were willing to work around it to use it for other countries. Now they don't have to do that on the HCM side, and we would be planning to roll out Beti in other countries throughout this year.

也就是說，我的意思是，我們的系統仍然運行良好。我們有很多客戶——當然，我們在高端市場取得了成功。我們有很多擁有 10,000 名員工甚至更多的客戶。我們的客戶甚至非常喜歡我們的系統，他們願意圍繞它工作以將其用於其他國家。現在他們不必在 HCM 方面這樣做，我們計劃今年全年在其他國家/地區推出 Beti。

And I would say on the margin front, I mean, we wouldn't call out that it would be accretive -- it should be -- follow the same profile fairly similar to what our current clients are doing. I mean, obviously, we'll have some R&D costs as it relates to building some of this out. But in terms of just the overall margins, it should be very similar.

我會說在保證金方面，我的意思是，我們不會說它會增加——它應該是——遵循與我們當前客戶正在做的非常相似的相同配置文件。我的意思是，很明顯，我們會有一些研發成本，因為它涉及到構建其中的一些。但就整體利潤率而言，應該非常相似。

The next question is from the line of Joshua Reilly with Needham.

下一個問題來自 Joshua Reilly 與 Needham 的對話。

On the international product here, when you say you're building Beti on a global basis, does that mean that you plan to build native payroll solutions in some international countries? Or is Beti going to sit on top of the existing payroll solutions used by customers with an international presence?

關於這裡的國際產品，當你說你在全球範圍內構建 Beti 時，這是否意味著你計劃在一些國際國家構建本地薪資解決方案？或者 Beti 是否會在國際客戶使用的現有薪資解決方案之上？

We would be building Beti out in each country. We are building Beti out would be the better way to say that.

我們將在每個國家/地區建立 Beti。我們正在建設 Beti 是更好的說法。

Okay. So you are building a native payroll in some of these international countries?

好的。因此，您正在其中一些國際國家/地區建立本地工資單？

Correct.

正確的。

Got it. Okay. And then have you increased your advertising spend sequentially from Q4? And I think in the past, you've said that increasing that spend implies more confidence around demand. Is that accurate that you're seeing more demand in Q1 than Q4?

知道了。好的。然後您是否從第四季度開始連續增加了廣告支出？我想在過去，你說過增加支出意味著對需求更有信心。您看到第一季度的需求多於第四季度是否準確？

We continue to see strong demand. We saw the strong demand in Q4, too. Oftentimes, Q4, sometimes you can advertise a little bit stronger than others depending on elections, depending on how many ads are running. Oftentimes, you can be competing against that and what to ad dollars cost. And so sometimes the juice ain't worth the squeeze there. Also, you have some holidays. But we do monitor our advertising spend weekly, and we monitor the lead generation from it. And we're constantly making moves and method to how we generate more leads.

我們繼續看到強勁的需求。我們也看到了第四季度的強勁需求。通常情況下，第四季度，有時你可以根據選舉，根據投放的廣告數量，做比其他人更強的廣告。通常，您可以與廣告費用以及廣告費用進行競爭。所以有時果汁不值得擠在那裡。另外，你有一些假期。但我們確實每週監控我們的廣告支出，並監控由此產生的潛在客戶。我們不斷地採取行動和方法來產生更多的潛在客戶。

The next question is from the line of Siti Panigrahi with Mizuho.

下一個問題來自 Siti Panigrahi 與 Mizuho 的對話。

Chad, in this macro environment, we keep hearing small businesses kind of under pressure right now. They're cautious in terms of commit to any kind of investment in this environment. So wondering what are you hearing from your customer base. Any color would be helpful.

乍得，在這種宏觀環境下，我們一直聽到小企業現在承受著壓力。他們對在這種環境下進行任何類型的投資持謹慎態度。所以想知道您從客戶群那裡聽到了什麼。任何顏色都會有幫助。

Yes. I mean we're not hearing a lot right now. I mean now I would say a part of that is we're very focused on growth and landing new logos. I wouldn't say that we're having -- we're not seeing losses from clients going out of business any different than what we had seen in the past, again, with the exception of the COVID time period. So I really can't call out much, and it might just be where we're focused. Again, only about 5% of our revenue is derived from companies that have less than 50 employees, and 95% of it is derived from companies that have larger than that, obviously. And then we're continuing to grow at the top end of our range. It's probably our fastest-growing segment.

是的。我的意思是我們現在聽的不多。我的意思是現在我要說的一部分是我們非常專注於增長和登陸新標識。我不會說我們有 - 我們沒有看到客戶倒閉造成的損失與我們過去看到的有任何不同，除了 COVID 時間段之外。所以我真的不能說太多，這可能只是我們關注的地方。同樣，我們只有大約 5% 的收入來自員工人數少於 50 人的公司，而其中 95% 顯然來自員工人數超過 50 人的公司。然後我們將繼續在我們的產品系列的高端發展。這可能是我們增長最快的部分。

And so I'm not saying things couldn't be happening downmarket. It's just from the data that we have. It's not something that we could call out on our end.

所以我並不是說低端市場不會發生這種情況。這只是來自我們擁有的數據。這不是我們可以呼喚的事情。

That's super helpful. And a follow-up for Craig. If I heard your client fund balance, I think $2.4 billion, is it? That's almost kind of 9% on a year-over-year growth compared to other years, which was pretty high. Was there anything that we should -- anything that caused the slowdown? And also, any color in terms of interest income, any float income contribution this quarter?

這非常有幫助。克雷格的後續行動。如果我聽說你的客戶資金餘額，我認為是 24 億美元，是嗎？與其他年份相比，這幾乎是 9% 的同比增長，這是相當高的。有什麼我們應該做的——是什麼導致了經濟放緩？此外，本季度的利息收入、浮動收入貢獻有何不同？

I can take the first question, and I'll let Craig handle the interest income. But from a float balance perspective, the larger the client, the less days you hold on to that money. So that money clears very quickly with large clients. So -- which if you're handling a small business, you might hold on to that for a month or a quarter. You're handling a large client, you're holding on to that for about 24 hours. So there's larger amounts, but it impacts your average steady balance a little bit because it's clearing out of there so quickly with the larger clients. Then I'll let Craig handle the second part.

我可以回答第一個問題，我會讓克雷格處理利息收入。但從浮動餘額的角度來看，客戶越大，你持有這筆錢的天數就越少。因此，大客戶的錢很快就結清了。所以——如果你經營的是一家小企業，你可能會堅持一個月或一個季度。你正在處理一個大客戶，你要堅持大約 24 小時。所以有更大的數額，但它會稍微影響你的平均穩定餘額，因為它正在與更大的客戶一起快速清算。然後我會讓 Craig 處理第二部分。

Yes. I would say on the interest income on our client funds, we called out last quarter, we're realizing around 80% of the Fed funds rate. And that -- part of that is because it's layered in. We have some investments that are a little bit longer term. And I mean the banks don't give you the full amount as the Fed raises those rates. So that's kind of what we've said last quarter, and we really wouldn't update that any.

是的。關於我們客戶資金的利息收入，我們在上個季度呼籲，我們實現了聯邦基金利率的 80% 左右。那 - 部分原因是因為它是分層的。我們有一些長期投資。我的意思是，隨著美聯儲提高這些利率，銀行不會給你全部金額。所以這就是我們上個季度所說的話，我們真的不會更新任何內容。

Great quarter.

偉大的季度。

Thank you.

謝謝。

The next question is from the line of Bryan Bergin with TD Cowen.

下一個問題來自 Bryan Bergin 和 TD Cowen。

It's actually Jared Levine on for Bryan tonight. In terms of retention, how did 1Q revenue retention compared to 1Q '22? Were there any notable changes based on clients with under 50 employees and then those clients with 50-plus employees?

今晚實際上是 Jared Levine 替 Bryan 上場。在留存率方面，與 22 年第一季度相比，第一季度的收入留存率如何？基於員工人數低於 50 人的客戶和員工人數超過 50 人的客戶，是否有任何顯著變化？

Yes. So we provide retention at the end of each year. It fluctuates quarter-to-quarter. I kind of said on the last call, we have the have and have-nots here at Paycom, and that was related to Beti. Our Beti retention rate last year was better than 99% of anybody that had Beti. So I expect our retention to remain strong and even increases -- increase a larger percentage as more clients use the product the right way to achieve the maximum ROI that's available to them.

是的。所以我們在每年年底提供保留。它每季度波動一次。我在最後一次電話會議上說過，我們在 Paycom 有和沒有人，這與 Beti 有關。我們去年的 Beti 保留率高於 99% 的擁有 Beti 的人。因此，我預計我們的保留率將保持強勁甚至增加——隨著更多客戶以正確的方式使用產品以實現他們可以獲得的最大投資回報率，我們的保留率將增加更大的百分比。

But yes, for retention, I've also said in the past, typically, regardless of -- I'm not comparing it from last first quarter to this first quarter, but typically, for -- especially for larger clients of any of our competitors, retentions oftentimes starts off lower the first of the year and continues to increase throughout the year because less clients usually leave in the fourth quarter, if you will. But nothing to call out special in the first quarter. I would just say we've been very stable, and the companies that use Beti do better.

但是，是的，對於保留，我過去也說過，通常，不管 - 我不是將它從上一季度與第一季度進行比較，但通常 - 特別是對於我們任何一個的大客戶競爭對手，保留率通常在第一年開始時較低，並在全年繼續增加，因為如果您願意的話，通常在第四季度離開的客戶較少。但在第一季度沒有什麼特別的。我只想說我們一直非常穩定，使用 Beti 的公司做得更好。

And then as my follow-up, what is your adjusted gross margin expectation for this fiscal year? And then more specifically, looking at 1Q, what weighed on that adjusted gross margin within that operating expense line item?

然後作為我的後續行動，您對本財年的調整後毛利率預期是多少？然後更具體地說，看看第一季度，是什麼影響了該運營費用項目中調整後的毛利率？

Yes. I mean we didn't guide to the adjusted gross margin. I mean it's been very stable over the last few years in that 85% to 86%. I mean, typically, if it gets too high, it's -- we may be a little bit behind on hiring. And so that's usually what would cause it to creep up some. And it fluctuates based on how our hiring trends are because those are the individuals that are bringing on -- handling the new business that we're bringing on. And we have to hire them ahead of the revenue growth. And that way, they can be trained up and ready to capture those clients.

是的。我的意思是我們沒有指導調整後的毛利率。我的意思是，在過去幾年裡，它一直非常穩定，保持在 85% 到 86% 之間。我的意思是，通常情況下，如果它變得太高，那是——我們在招聘方面可能會有點落後。因此，這通常會導致它爬升一些。它會根據我們的招聘趨勢而波動，因為這些人正在帶來 - 處理我們帶來的新業務。我們必須在收入增長之前僱用他們。這樣，他們就可以接受培訓並準備好吸引這些客戶。

The next question is from the line of Jason Celino with KeyBanc.

下一個問題來自 KeyBanc 的 Jason Celino。

Chad, in the press release for global HCM a few weeks ago, you mentioned that you've been working on the product for 2 years. Since it doesn't include Beti yet, why not just wait until you had developed it for some of those countries first? Or maybe can you just talk about the timing on why move now?

Chad，在幾週前的全球 HCM 新聞稿中，您提到您已經在該產品上工作了 2 年。既然它還不包括貝蒂，為什麼不等到你先為其中一些國家開發了它呢？或者，也許你能談談為什麼現在搬家的時機？

Sure. Well, you're going to have to do first things first. So we're going to have it. But as I mentioned with Raimo's very first question, we have a demand for global HCM right now as we have clients that are storing client -- or employees that they have in other countries in our system right now and somewhat rig in the system. So we have demand right now for HCM. And you have to have first things first. I mean with Beti, everything is connected. It's not like it's payroll only. You have to have time and attendance. You have to have expense management. You have to have paid time off. So you have to have these other products within the system to work Beti.

當然。好吧，你必須先做第一件事。所以我們要擁有它。但正如我在 Raimo 的第一個問題中提到的那樣，我們現在對全球 HCM 有需求，因為我們有客戶正在存儲客戶 - 或者他們現在在我們系統中的其他國家/地區擁有的員工，並且在系統中有些鑽機。所以我們現在對 HCM 有需求。而且您必須先做第一件事。我的意思是對於 Beti，一切都是相連的。這不僅僅是工資單。你必須有時間和出勤率。你必須有費用管理。你必須有帶薪休假。所以你必須讓系統中的這些其他產品才能運行 Beti。

I wouldn't say that we're developing just payroll only. We're developing Beti, the Beti process internationally. We looked at kind of us to following what the competition does out there with international. And I mean, quite honestly, I think it was unimpressive from ROI strategy that it produces for clients.

我不會說我們只開發工資單。我們正在開發國際 Beti，即 Beti 流程。我們看著我們關注國際比賽的情況。我的意思是，老實說，我認為它為客戶制定的 ROI 策略並沒有給人留下深刻印象。

And our clients now are used to using Beti. And so I think they're going to expect that internationally, and I think that's how we win. So I would say it's the beginning foundation for what we're doing, but also we have demand for that product in and of itself right now.

我們的客戶現在已經習慣使用 Beti。所以我認為他們會在國際上期待這一點，我認為這就是我們獲勝的方式。所以我想說這是我們正在做的事情的開始基礎，但我們現在也對該產品本身有需求。

Okay. Yes, that's fair. And you have mentioned some of your customers are kind of jerry-rigging onto your system already. But how -- is there any way to know how many of your customers have international employees or offices?

好的。是的，這很公平。你提到你的一些客戶已經在你的系統上偷工減料了。但是如何——有什麼方法可以知道您的客戶中有多少擁有國際員工或辦公室？

It's our larger clients. It would be our larger clients in many of those cases. So I'm not going to give out a specific number, but I mean the revenue opportunities there for them. And then, of course, when you look at our just prospect base that's out there, over time, this will increase the size of companies that we prospect.

這是我們的大客戶。在許多情況下，這將是我們的大客戶。所以我不會給出具體數字，但我的意思是他們那裡的收入機會。然後，當然，當您查看我們現有的潛在客戶群時，隨著時間的推移，這將增加我們所潛在客戶的規模。

The next question is from the line of Arvind Ramnani with Piper Sandler.

下一個問題來自 Arvind Ramnani 和 Piper Sandler。

I just wanted to ask about some of the churn -- kind of benefit you see from churn from legacy players. And are you seeing any kind of change in sort of the competitive dynamics or sort of the win rates that you've historically seen from some of the legacy players?

我只是想問一些關於流失的問題——你從傳統玩家的流失中看到的那種好處。您是否看到了您從歷史上從一些傳統玩家那裡看到的競爭動態或獲勝率的任何變化？

Yes. I mean I wouldn't call out anybody in particular. We're getting much stronger. When we released Beti in 2021, I think it was July of 2021 when we very first even started selling it, we've gotten a lot better at our value proposition and how we actually go to market with it. I think it took some learning. It was somewhat hard to teach old dog new tricks from our standpoint of our sales force. And when we started selling Beti, we were all virtual sales, and we've made a bunch of changes dramatically.

是的。我的意思是我不會特別點名任何人。我們變得更強大了。當我們在 2021 年發布 Beti 時，我認為是在 2021 年 7 月，我們甚至第一次開始銷售它，我們在我們的價值主張以及我們實際如何將它推向市場方面已經做得更好了。我認為這需要一些學習。從我們銷售人員的角度來看，教老狗新技巧有點困難。當我們開始銷售 Beti 時，我們都是虛擬銷售，並且我們做出了一系列巨大的改變。

And so I definitely think having a stronger value proposition as we've had with Beti as well as us being face-to-face is helping our close ratio out there, and I would say it would be competitor-agnostic. When we have a strategic buyer that takes the time to really try to achieve the return on investment that implementing any one of these products would promise to produce, we do very well.

因此，我絕對認為擁有更強大的價值主張，就像我們與 Beti 所擁有的一樣，以及我們面對面的交流，這有助於我們在那裡保持緊密的比例，我想說這將與競爭對手無關。當我們有一個戰略買家花時間真正嘗試實現實施這些產品中的任何一種都有望產生的投資回報時，我們就做得很好。

Perfect. And certainly, within the technology world, there's a lot of conversation with ChatGPT and AI and just wanted to sort of get your perspective either sort of expected impact to Paycom specifically, but even to the HCM space. Do you think this is a space that's kind of susceptible to change or kind of some pressure from ChatGPT? Or do you think it's not yet kind of relevant to your space or to your company?

完美的。當然，在技術界，有很多與 ChatGPT 和 AI 的對話，只是想了解一下你的觀點，無論是對 Paycom 的預期影響，還是對 HCM 領域的影響。您是否認為這是一個容易發生變化或來自 ChatGPT 的某種壓力的空間？還是您認為它與您的空間或公司還不相關？

No, I definitely think it'll be relevant. You can use AI for multiple things. There are areas that you can use it for that are better than others. And they're front-end things you can use it for direct to the client. There are back-end things that you can use it for that a client may never see. And so when you're talking about AI, it has many uses, some of which is front end and some back end. And I don't want to talk specifically about what exactly we're using it for already internally and what our opportunities would be into the future. But in answer to your question, yes, I do think that over time, AI is going to be a thing in our industry.

不，我絕對認為它是相關的。您可以將 AI 用於多種用途。您可以在某些領域使用它比其他領域更好。它們是前端的東西，您可以將其直接用於客戶。您可以使用它來做一些客戶可能永遠看不到的後端事情。所以當你談論人工智能時，它有很多用途，其中一些是前端，一些是後端。我不想具體談論我們已經在內部使用它做什麼，以及我們未來的機會是什麼。但在回答你的問題時，是的，我確實認為隨著時間的推移，人工智能將成為我們行業的一部分。

The next question is from the line of Jackson Ader with SVB.

下一個問題來自 SVB 的 Jackson Ader。

The first one is on -- Chad, you mentioned hiring and maybe being able to kind of hoover up some of the tech talent that have been coming from some of the larger maybe tech layoffs, but it sounded like that was more on the developer or the R&D side. I was curious whether you've also been able to maybe pick up additional salespeople along the way as well.

第一個是——乍得，你提到了招聘，也許能夠從一些更大規模的技術裁員中吸納一些技術人才，但聽起來這更多的是在開發人員或研發方面。我很好奇你們是否也能夠在此過程中招募更多的銷售人員。

Yes. I mean, well, I called out R&D because that's a side that we oftentimes hire people that have experience with technology, writing code and what have you. Our salespeople, we've always -- we typically look for people with less than 2 years outside sales experience. We do take changing careers, what have you. We do have specific education requirements for that position. And so I wouldn't necessarily say it was difficult for us to hire jobs. But what has changed on the sales side is you get a little bit more time to look there for a while. I mean if you had a salesperson that you had -- that you were interviewing, you had a week or 2 to make a decision because they were getting 12 offers. I would say today, that's slowed down quite a bit. So I would say you're able to take a little bit more time than what you were able to do when we were a very compressed in time during the interview process to hire salespeople. I'd say that's changed some on the sell side.

是的。我的意思是，好吧，我之所以提到研發，是因為這是我們經常僱用具有技術經驗、編寫代碼和您擁有的經驗的人的一面。我們的銷售人員，我們一直 - 我們通常尋找具有不到 2 年外部銷售經驗的人。我們確實需要改變職業，你有什麼。我們確實對該職位有特定的教育要求。所以我不一定會說我們很難找到工作。但是在銷售方面發生的變化是你有更多的時間去那裡看一會兒。我的意思是，如果你有一個銷售人員——你正在面試，你有一到兩週的時間做出決定，因為他們收到了 12 個報價。我今天會說，這已經放慢了很多。所以我想說，當我們在招聘銷售人員的面試過程中時間非常緊迫時，你可以花更多的時間。我想說這在賣方方面發生了一些變化。

But I just -- I called out technology because we're just -- we're seeing it. We're seeing it.

但我只是——我提到了技術，因為我們只是——我們正在看到它。我們看到了。

Right. Okay. All right. Cool. That's great. One quick follow-up. Just -- like on the mechanics of the Beti payroll rollout, so you're in 180 countries with global HCM, but like do you roll out Beti one country at a time? Are we going to see like 180 press releases for all the different countries? Is it a block here, a block there? Just mechanically, how is that rollout going to work?

正確的。好的。好的。涼爽的。那太棒了。一個快速跟進。就像 Beti 工資單推出的機制一樣，你在 180 個國家/地區擁有全球 HCM，但是你一次只在一個國家/地區推出 Beti 嗎？我們是否會看到針對所有不同國家/地區的 180 份新聞稿？這裡是一個街區，那裡是一個街區嗎？就機械而言，該部署將如何運作？

There's about 16 to 20 countries that represent about over 80% of the opportunity. So I would expect us to be rolling those out first as you look at it. But yes, I mean, over time, we build things ourselves. And so I would expect us to continue to roll them out, but there's 16 to 20 countries that are going to be first.

大約有 16 到 20 個國家/地區代表了大約 80% 以上的機會。因此，我希望我們在您查看時首先推出這些內容。但是，是的，我的意思是，隨著時間的推移，我們自己建造東西。因此，我希望我們會繼續推出它們，但首先會有 16 到 20 個國家/地區。

The next question is from the line of Alex Zukin with Wolfe Research.

下一個問題來自 Alex Zukin 與 Wolfe Research 的合作。

Most of my questions have been asked. But I guess maybe on the topic of just pipeline and sales expansion efficiency, I guess how do you think about office openings, territory expansion through the rest of the year, maybe sales hiring moving into the back half of this year to get ready for next year? Is there any kind of commentary around that, particularly as it would relate or compared to last year? And then just a quick follow-up.

我的大部分問題都被問到了。但我想也許只是關於管道和銷售擴張效率的話題，我想你如何看待今年剩餘時間的辦公室開設、領土擴張，也許銷售招聘會在今年下半年開始，為下一年做準備年？對此是否有任何評論，特別是與去年相關或與去年相比？然後只是快速跟進。

Yes. So that opening up offices continues to be a big part of our strategy. We've continued to open up offices I think a year ago, was it last year, maybe about 15 months ago, let's call it, 14 or so. We opened up 5 offices from December through February, and those offices are maturing very well and continue to mature. And we'll continue to open up offices.

是的。因此，開設辦事處仍然是我們戰略的重要組成部分。我認為一年前我們繼續開設辦事處，是去年，也許大約 15 個月前，我們稱它為 14 個月左右。從 12 月到 2 月，我們開設了 5 個辦事處，這些辦事處都非常成熟，而且還在繼續成熟。我們將繼續開設辦事處。

For us, our bottleneck on being able to open up offices is capacity of our management group being ready to do that. We have to both backfill for managers that may not be accomplishing their goals as well as we have to expand. And over the course of 25 years, I think we've done that pretty well. But it is a -- it's a part of our growth strategy, and we'll continue to open up offices when we're able.

對我們來說，我們能夠開設辦事處的瓶頸是我們的管理團隊準備這樣做的能力。我們既要回填那些可能無法實現目標的經理，又要擴大規模。在 25 年的時間裡，我認為我們做得很好。但它是——這是我們增長戰略的一部分，我們將在有能力的時候繼續開設辦事處。

Perfect. And then I guess maybe just a quick financial question. Free cash flow was previously really strong here in Q1, I think quite a bit stronger than we were modeling. What's the right way to think about that progression as we head through the year? And in general, as you're seeing Beti adoption specifically get better, I think last quarter, you mentioned it was almost 50% penetration for Beti. Where does -- what's the target for this year? And how much is that -- how much more efficient is an incremental Beti sale than traditional one?

完美的。然後我想也許只是一個快速的財務問題。之前第一季度的自由現金流非常強勁，我認為比我們建模的要強很多。在我們度過這一年的過程中，思考這一進展的正確方法是什麼？總的來說，當你看到 Beti 的採用率特別提高時，我認為上個季度，你提到 Beti 的滲透率接近 50%。今年的目標在哪裡？那是多少——增量 Beti 銷售比傳統銷售效率高多少？

Yes, I'll take the free cash flow question. I mean first quarter was strong. As we look out through the rest of the year, we've called out kind of what our CapEx is going to be. We're wrapping up our building in Oklahoma City, a large building here. So CapEx will be a little bit more back-end loaded in terms of how it flows throughout this year. So that will -- that's kind of the way I would look at the free cash flow for the year. And then on the Beti penetration?

是的，我會回答自由現金流問題。我的意思是第一季度表現強勁。當我們展望今年餘下的時間時，我們已經提出了我們的資本支出將會是什麼。我們正在收尾我們在俄克拉荷馬城的大樓，這是一座很大的大樓。因此，就今年全年的流動方式而言，資本支出將承擔更多的後端負載。所以這將 - 這就是我看待今年自由現金流的方式。然後在 Beti 滲透？

Yes, I can take that. So I think the question was how much more efficient is an incremental Beti sale. I mean Beti is a very nominal sale to a current client from that perspective. I mean it's not an expensive item and drives a significant amount of ROI. What I would say on new clients that come in with Beti because they all have to, I would say the biggest margin impacts for them than us. I've always said it costs you the same whether you use the system correctly or not, charge is the same. So you may as well try to get the most value out of the system by using it the right way. So when someone uses Beti, it returns a significant -- there's a significant return on investment to the client.

是的，我可以接受。所以我認為問題是增加 Beti 銷售的效率有多高。我的意思是，從這個角度來看，Beti 對當前客戶來說是一個非常名義上的銷售。我的意思是它不是一件昂貴的物品，並且可以帶來可觀的投資回報率。我想對 Beti 帶來的新客戶說些什麼，因為他們都必須這樣做，我想說的是，對他們的利潤率影響最大，而不是我們。我一直說不管你用對不對，用的都是一樣的，收費是一樣的。因此，您不妨嘗試以正確的方式使用系統，以從中獲得最大價值。因此，當有人使用 Beti 時，它會給客戶帶來可觀的投資回報。

For us, you might see some positive margin impact by those clients that use Beti have less paper cuts caused to themselves. And therefore, on the margin, they require less service for us to be able to provide them and less services around what I would call more of our low-margin activities, which is going to be amending -- amended returns and other issues that could come out by having payroll done wrong.

對我們來說，您可能會看到那些使用 Beti 的客戶對利潤率產生了積極的影響，他們減少了對自己造成的剪紙。因此，在邊際上，他們需要更少的服務讓我們能夠為他們提供服務，並且圍繞我稱之為更多我們的低利潤活動的服務更少，這將被修改——修改後的回報和其他可能的問題通過錯誤的工資單出來。

The next question is from the line of Bhavin Shah with Deutsche Bank.

下一個問題來自德意志銀行的 Bhavin Shah。

Just a couple for Craig. Craig, if I just look at your 1Q sequential growth and 4Q recurring revenue, it looks like it trended a little bit lower versus the prior 1Qs. I know the decline in mix of tax forms revenue has an impact to you, but any other commentary on linearity of go-lives or even growth within the tax forms? And how that's trending?

克雷格只是一對。克雷格，如果我只看你的第一季度連續增長和第四季度經常性收入，它看起來比之前的第一季度略低。我知道稅收形式收入組合的下降對你有影響，但還有其他關於稅收形式上線甚至增長的線性評論嗎？趨勢如何？

I would say we've called out the tax forms. I mean, obviously, they don't grow at quite the same rate as the rest of our revenue, but they become a smaller portion of our overall revenue. So I would say that, that's kind of what we've seen on those tax forms filings. They don't have the same growth rate as the rest of our revenue.

我會說我們已經調出了稅表。我的意思是，很明顯，它們的增長速度與我們其他收入的增長速度並不完全相同，但它們在我們總收入中所佔的比例較小。所以我想說的是，這就是我們在那些稅表申請中看到的。它們的增長率與我們其他收入的增長率不同。

Yes. I said a little bit differently since 1998 when we started the company, we've only added one product to our year-end services, and that was ACA. That's it in 25 years. Meanwhile, our monthly recurring revenue products, we've continued to add products that we charge on a monthly recurring basis for them. And so monthly recurring, it's just growing at a rate much more so than our annual recurring. And over time, the annual recurring amount represents a smaller amount of a client's bill because of that.

是的。自 1998 年我們成立公司以來，我說的有點不同，我們只在年終服務中添加了一種產品，那就是 ACA。 25年後就是這樣。同時，我們的每月經常性收入產品，我們繼續添加我們按月經常性收費的產品。所以每月經常性，它只是以比我們每年經常性的速度更快的速度增長。隨著時間的推移，每年的經常性金額代表了客戶賬單中較小的金額。

Got it. Helpful. Just one follow-up on float revenue and just your philosophy on reinvesting some of the upside here. Can you just remind us of your philosophy and if anything has changed at all given some of the announcements on kind of your global initiatives?

知道了。有幫助。只是關於浮動收入的後續行動，以及你對這裡的一些上行空間進行再投資的理念。您能否提醒我們您的理念，以及是否有任何改變，因為您已經宣布了一些關於您的全球計劃的公告？

Yes. No, I mean we still invest in a pretty short-term investments, very safe. We're looking at CDs, commercial paper, treasury notes and then some overnight. So we're still very safe on our investments in fairly short term. And then as we do globally, we'll look at those opportunities as well.

是的。不，我的意思是我們仍然投資於相當短期的投資，非常安全。我們正在研究 CD、商業票據、國庫券，然後是一夜之間。因此，在相當短的時間內，我們的投資仍然非常安全。然後就像我們在全球範圍內所做的那樣，我們也會關注這些機會。

The next question is from the line of Daniel Jester with BMO Capital.

下一個問題來自 BMO Capital 的 Daniel Jester。

Maybe I want to tackle global HCM in a different way. If I think about the -- some new products you've launched in the last couple of years, Beti, DDX, like, that goes into theoretically, the entire customer base. For Beti, I think we saw the impact on your business, like, relatively quickly. I'm just trying to size up, like, on global HCM, it's not going to go into all of your customers. And so is it -- so is your large customer opportunity so big that it actually can move the needle this year? Or is global HCM something we're just thinking about from, like, a multiyear perspective laying the groundwork and it's not going to look like Beti affecting the numbers this year? It's a long question, but hopefully I got all my points across.

也許我想以不同的方式處理全球 HCM。如果我考慮 - 你在過去幾年推出的一些新產品，Beti，DDX，從理論上講，它進入了整個客戶群。對於 Beti，我認為我們相對較快地看到了對您的業務的影響。我只是想在全球 HCM 上進行評估，它不會涉及您的所有客戶。它也是如此——你的大客戶機會是否如此之大，以至於它實際上可以在今年有所作為？還是全球 HCM 是我們正在考慮的事情，例如，從多年的角度奠定基礎，它看起來不會像 Beti 那樣影響今年的數字？這是一個很長的問題，但希望我能理解我的所有觀點。

Yes. I mean we just came out with global HCM. I do think it'll be somewhat accretive to our numbers this year, more so in subsequent years. And it's a significant system. I think it'll allow us to continue to go further up. Even just the global HCM side increases our TAM by about 50%. So I mean it's available there. And then as we continue to add the payroll to it, I just think that puts us on a different playing field for us to continue to go upmarket as well as serve those clients of ours that currently have international presence and might not be using our system the way they're going to be using it into the future.

是的。我的意思是我們剛剛推出了全球 HCM。我確實認為它會在某種程度上增加我們今年的數字，在隨後的幾年中更是如此。這是一個重要的系統。我認為這會讓我們繼續走得更遠。即使只是全球 HCM 方面，我們的 TAM 也增加了約 50%。所以我的意思是它在那裡可用。然後，隨著我們繼續增加工資單，我只是認為這讓我們處於一個不同的競爭環境，讓我們繼續走向高端市場，並為我們目前擁有國際業務但可能不使用我們系統的客戶提供服務他們將來使用它的方式。

Okay. And then as a follow-up, maybe just on the dividend and the buyback and capital allocation. You haven't really been utilizing that buyback authorization in the last few quarters. So I'm wondering maybe just refresh us on your thinking about doing the dividend when you haven't been using other levers that you already have had in place.

好的。然後作為後續行動，可能只是關於股息、回購和資本配置。在過去的幾個季度裡，你並沒有真正利用回購授權。所以我想知道，當你沒有使用你已經擁有的其他槓桿時，也許只是讓我們重新思考你對分紅的想法。

Well, I would -- for one thing, we did buy back over $100 million last year. So we've been -- maybe not the last couple of quarters, but for sure, last year, we continue to do buybacks and -- over $100 million. Over time, we've bought back $600 million and 4.7 million shares. So I would expect that it'll be a balance between buybacks and dividends as we kind of look to the future.

好吧，我會——一方面，我們去年確實回購了超過 1 億美元。所以我們一直——也許不是最近幾個季度，但可以肯定的是，去年，我們繼續進行回購——超過 1 億美元。隨著時間的推移，我們已經回購了 6 億美元和 470 萬股股票。因此，當我們展望未來時，我預計這將是回購和股息之間的平衡。

The next question is from the line of Kevin McVeigh with Credit Suisse.

下一個問題來自瑞士信貸的 Kevin McVeigh。

Congrats on the terrific results. I think I know the answer, but the source of the upside and then the race be it kind of the quarter as well, that was new logo primarily? Just wanted to understand where that's at relative to expectations initially.

祝賀你取得了驚人的成績。我想我知道答案，但上漲的來源以及本季度的比賽，主要是新標誌？只是想了解最初相對於預期的位置。

Yes new logos drive our growth. And so I'm not going to say -- you see when interest rates go up, we talked about how we're achieving roughly 80% of that as it moves. So obviously, that impacts us positively as well. But for us, what's always driven our revenue has been new logo adds.

是的，新徽標推動了我們的發展。所以我不會說——你看當利率上升時，我們談到了我們如何在利率上升時實現大約 80% 的目標。很明顯，這也對我們產生了積極影響。但對我們來說，始終推動我們收入增長的是添加新徽標。

And then as you think about kind of the move internationally and upmarket, does that impact the implementation strategy at all in terms of -- I know upfront, you try to be very opportunistic around modules, things like that. Is that the same strategy as you kind of scale the client base?

然後當你考慮國際和高端市場的某種移動時，這是否會影響實施策略——我預先知道，你試圖在模塊周圍非常機會主義，諸如此類。這與您擴大客戶群的策略是否相同？

Yes. I mean it's -- well, our implementation strategy as you continue to add other countries, yes, I mean, it is going to change implementation to some extent. Now that will -- a lot of that will be determined by the origination of the client. Where is the client? Are they in Nebraska? Are they in Mexico? Are they in the U.K.? Where is the client? You have different time zones and everything else where sometimes people are awake sometimes they're not. So definitely, it changes your implementation strategy as you go global.

是的。我的意思是 - 好吧，我們的實施戰略，因為你繼續增加其他國家，是的，我的意思是，它會在某種程度上改變實施。現在，這將 - 其中很多將由客戶的起源決定。客戶在哪裡？他們在內布拉斯加州嗎？他們在墨西哥嗎？他們在英國嗎？客戶在哪裡？你有不同的時區和其他一切，有時人們醒著，有時他們不醒。因此，毫無疑問，它會在您走向全球時改變您的實施策略。

I don't know that many of our methods will change as much as it would be modifying them to meet the needs of the country that we are in.

我不知道我們的許多方法是否會像修改它們以滿足我們所在國家的需要那樣改變。

The last question comes from the line of Robert Simmons with D.A. Davidson.

最後一個問題來自 Robert Simmons with D.A.戴維森。

I was wondering, do you have customers sort of now using global HCM? And if so, what's been the early feedback?

我想知道，你們現在有客戶在使用全球 HCM 嗎？如果是這樣，早期的反饋是什麼？

We have some companies that are starting to pilot it, and I think there's a couple. And a lot of global HCM is developed with current client feedback from that perspective, just seeing what they're trying to accomplish, what they're using and then just making a decision that we had just to take our current systems and be able to put them to where they could be used in 180 countries and in 15 languages. And so -- but we would expect more and more clients throughout this year to use the global HCM piece of Paycom.

我們有一些公司開始試用它，我認為有幾家。許多全球 HCM 都是根據當前客戶的反饋從這個角度開發的，只是看看他們想要完成什麼，他們正在使用什麼，然後做出我們必須採用當前系統並能夠將它們放在可以在 180 個國家/地區以 15 種語言使用的地方。所以——但我們預計今年會有越來越多的客戶使用 Paycom 的全球 HCM 產品。

Got it. And then on the dividend, how are you thinking about adjusting that going forward? Would it be as a percent of GAAP EPS or free cash flow or some other metric?

知道了。然後關於股息，您如何考慮調整未來的股息？它會作為 GAAP 每股收益或自由現金流或其他指標的百分比嗎？

No. I mean right now, it's -- we're looking at it as a fixed amount, $1.50, over the next year at $0.375 a quarter. I mean right now, it's basically a 50 to -- about a 50%, 0.5% dividend yield based on our current share price. So we would look at it as $1.50 and then adjust it as we see fit in the future.

不，我的意思是現在，我們將其視為固定金額，1.50 美元，明年每季度 0.375 美元。我的意思是，現在，根據我們目前的股價，它基本上是 50 到 - 大約 50%，0.5% 的股息收益率。因此，我們會將其視為 1.50 美元，然後根據我們認為合適的方式對其進行調整。

There are no additional questions waiting at this time. So I'll pass the conference back to Chad Richison for closing remarks.

目前沒有其他問題等待您回答。因此，我會將會議傳回給查德·里奇森 (Chad Richison) 作閉幕詞。

All right. I want to thank everyone for joining the call today. Our employees' efforts continue to put Paycom in a great position, and we're off to a great start in 2023. So thank you to the Paycom team.

好的。我要感謝大家今天加入電話會議。我們員工的努力繼續使 Paycom 處於有利地位，我們在 2023 年有了一個良好的開端。感謝 Paycom 團隊。

Over the next quarter, we'll be hosting meetings at 5 conferences, beginning with the Needham Tech and Media Conference and the MoffettNathanson Technology Media and Telecom Conference, both of which will be held in New York. Following that, we'll be attending the JPMorgan TMT Conference in Boston and the Jefferies Software Conference in Newport Beach. We'll also be presenting at the Baird Global Consumer Technology and Services Conference in New York in early June. We look forward to catching up with many of you soon.

在下個季度，我們將舉辦 5 場會議，首先是 Needham 技術和媒體會議以及 MoffettNathanson 技術媒體和電信會議，這兩個會議都將在紐約舉行。之後，我們將參加在波士頓舉行的 JPMorgan TMT 會議和在紐波特比奇舉行的 Jefferies 軟件會議。我們還將出席 6 月初在紐約舉行的 Baird 全球消費者技術和服務大會。我們期待很快趕上你們中的許多人。

And operator, you may disconnect. Thank you.

接線員，您可以斷開連接。謝謝。

That concludes the conference call. Thank you for your participation. You may now disconnect your lines.

電話會議到此結束。感謝您的參與。您現在可以斷開線路。