Paylocity Holding Corp (PCTY) 2023 Q2 法說會逐字稿

Hello, and thank you for standing by. Welcome to Paylocity Holding Corporation Second Quarter 2023 Fiscal Year Results.

你好，謝謝你的支持。歡迎來到 Paylocity Holding Corporation 2023 財年第二季度業績。

(Operator Instructions)

（操作員說明）

I would now like to hand the conference over to your speaker, Ryan Glenn. You may begin, sir.

我現在想將會議交給您的發言人 Ryan Glenn。你可以開始了，先生。

Good afternoon, and welcome to Paylocity's earnings results call for the second quarter of fiscal '23, which ended on December 31, 2022. I'm Ryan Glenn, Chief Financial Officer. And joining me on the call today are Steve Beauchamp and Toby Williams, co-CEOs of Paylocity.

下午好，歡迎來到 Paylocity 截至 2022 年 12 月 31 日的 23 財年第二季度財報電話會議。我是首席財務官 Ryan Glenn。今天和我一起參加電話會議的還有 Steve Beauchamp 和 Toby Williams，他們是 Paylocity 的聯席首席執行官。

Today, we will be discussing the results announced in our press release issued after the market closed. A webcast replay of this call will be available for the next 45 days on our website under the Investor Relations tab. Before beginning, we must caution you that today's remarks, including statements made during the question-and-answer session, contain forward-looking statements. These statements are subject to numerous important factors, risks and uncertainties, which could cause actual results to differ from the results implied by these or other forward-looking statements.

今天，我們將討論收市後發布的新聞稿中公佈的結果。在接下來的 45 天內，將在我們網站的“投資者關係”選項卡下提供此次電話會議的網絡直播重播。在開始之前，我們必須提醒您，今天的評論，包括在問答環節中所做的陳述，都包含前瞻性陳述。這些陳述受許多重要因素、風險和不確定性的影響，這些因素、風險和不確定性可能導致實際結果與這些或其他前瞻性陳述所暗示的結果不同。

Also, these statements are based solely on the present information and are subject to risks and uncertainties that can cause actual results to differ materially from those projected in the forward-looking statements. For additional information, please refer to our filings with the Securities and Exchange Commission for the risk factors contained therein and other disclosures. We do not undertake any duty to update any forward-looking statements. Also, during the course of today's call, we will refer to certain non-GAAP financial measures. We believe that non-GAAP measures are more representative of how we internally measure the business, and there is a reconciliation schedule detailing these results currently available in our press release, which is located on our website at paylocity.com under the Investor Relations tab and filed with the Securities and Exchange Commission.

此外，這些陳述僅基於現有信息，並受到可能導致實際結果與前瞻性陳述中預測的結果存在重大差異的風險和不確定性的影響。有關其他信息，請參閱我們向美國證券交易委員會提交的文件，了解其中包含的風險因素和其他披露。我們不承擔更新任何前瞻性陳述的義務。此外，在今天的電話會議中，我們將參考某些非 GAAP 財務指標。我們認為，非 GAAP 指標更能代表我們內部衡量業務的方式，我們的新聞稿中目前提供了詳細說明這些結果的對賬時間表，該新聞稿位於我們網站 paylocity.com 的“投資者關係”選項卡下，以及向證券交易委員會備案。

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

請注意，我們無法將任何前瞻性非 GAAP 財務指標與直接可比的 GAAP 財務指標進行核對，因為目前如果不付出不合理的努力就無法獲得完成核對所需的信息。

In regard to our upcoming conference schedule, I will be attending the Stifel Executive Summit in Florida on March 6 and the Raymond James Institutional Investor Conference in Orlando on March 7 and Toby will be attending the JMP Tech Conference in San Francisco also on March 7. Please let me know if you'd like to schedule time with us at any of these events.

關於我們即將舉行的會議日程，我將參加 3 月 6 日在佛羅里達州舉行的 Stifel 高管峰會和 3 月 7 日在奧蘭多舉行的 Raymond James 機構投資者會議，Toby 也將參加 3 月 7 日在舊金山舉行的 JMP 技術會議。如果您想與我們一起參加這些活動，請告訴我。

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

有了這個，讓我把電話轉給史蒂夫。

Thank you, Ryan, and thanks to all of you for joining us on our second quarter fiscal '23 earnings call. Our differentiated value proposition of providing the most modern software in the industry, coupled with continued strong execution, resulted in excellent Q2 results and increased full year guidance. Total revenue was $273 million or 39.3% growth over Q2 of last year and exceeded the top end of our guidance by $12 million. Our continued strong sales momentum is the result of ongoing investments in product innovation, including leveraging last year's acquisition of Cloudsnap, a flexible low-code solution for integrating disparate business applications. We have fully integrated Cloudsnap into the Paylocity suite and are leveraging this technology to provide the most modern software in the industry to accelerate the role of new integrations and use cases to better serve our clients and their employees.

謝謝你，Ryan，也感謝大家參加我們第二季度的 23 財年財報電話會議。我們提供業內最現代軟件的差異化價值主張，加上持續強勁的執行力，帶來了出色的第二季度業績並增加了全年指導。總收入為 2.73 億美元，比去年第二季度增長 39.3%，超出我們指導的上限 1200 萬美元。我們持續強勁的銷售勢頭是對產品創新持續投資的結果，包括利用去年收購的 Cloudsnap，這是一種用於集成不同業務應用程序的靈活的低代碼解決方案。我們已將 Cloudsnap 完全集成到 Paylocity 套件中，並利用這項技術提供業內最現代的軟件，以加速新集成和用例的作用，從而更好地為我們的客戶及其員工服務。

To date, we developed nearly 2 dozen next-gen integrations across ERP, point-of-sale, time and labor and expense-related software that allow our clients to experience better data consistency by sharing employee benefits, financial and other key data elements more readily across their HR and other critical business systems. In addition, Cloudsnap's low-code integration capabilities has accelerated the extensibility of the Paylocity platform, helping to drive differentiation and incremental value to clients by positioning employee data and the Paylocity platform at the center of their application ecosystem. We continue to see strong attach rates in our modern workforce solutions as clients realize the value in creating a unique employee experience and engaging culture for remote, hybrid and in-office teams.

迄今為止，我們開發了近 2 打跨 ERP、銷售點、時間和人工以及費用相關軟件的下一代集成，讓我們的客戶通過共享員工福利、財務和其他關鍵數據元素來體驗更好的數據一致性。跨他們的 HR 和其他關鍵業務系統。此外，Cloudsnap 的低代碼集成能力加速了 Paylocity 平台的可擴展性，通過將員工數據和 Paylocity 平台置於其應用程序生態系統的中心，幫助推動差異化和為客戶增加價值。隨著客戶意識到為遠程、混合和辦公室團隊創造獨特的員工體驗和參與文化的價值，我們繼續在我們的現代勞動力解決方案中看到很高的附加率。

Community and premium video whose new features centered on creating and sharing files, automating team groups and centralizing video management have allowed our clients and their employees to use our application in ways that stretch beyond traditional HCM functionality. This dynamic is reflected in our utilization metrics, where community monthly active users post and announcements continue to demonstrate strong growth on a year-over-year basis.

社區和高級視頻的新功能以創建和共享文件、自動化團隊組和集中視頻管理為中心，使我們的客戶及其員工能夠以超越傳統 HCM 功能的方式使用我們的應用程序。這種動態反映在我們的利用率指標中，其中社區每月活躍用戶發布和公告繼續顯示同比強勁增長。

Similarly, the number of videos created and played within our premium video offering continue to grow faster than the overall business as clients look to increasingly connect and engage with their employees through mediums that are more engaging than traditional e-mail.

同樣，在我們的優質視頻產品中創建和播放的視頻數量繼續以高於整體業務的速度增長，因為客戶希望通過比傳統電子郵件更具吸引力的媒體越來越多地與員工聯繫和互動。

Our continued success in the market and commitment to product innovation continues to be recognized by third parties as Paylocity was recently named an overall leader in all 12 HRIS product categories in G2's Winter 2023 Grid report, including the #1 overall leader in several categories, such as core HR, HR management systems, performance management and learning management. Similarly, the strong culture at Paylocity continues to be recognized externally as we receive the 2023 Built-in Best Places to Work award.

我們在市場上的持續成功和對產品創新的承諾繼續得到第三方的認可，因為 Paylocity 最近在 G2 的 Winter 2023 Grid 報告中被評為所有 12 個 HRIS 產品類別的總體領導者，包括多個類別的第一名，例如作為核心人力資源，人力資源管理系統，績效管理和學習管理。同樣，Paylocity 的強大文化繼續得到外部認可，因為我們獲得了 2023 年內置最佳工作場所獎。

I would now like to pass the call to Toby to provide further color on the quarter.

我現在想將電話轉給托比，以提供有關該季度的更多信息。

Thanks, Steve. Our focus on driving higher employee engagement, collaboration and connection once again contributed to strong results in Q2 as these underlying tenets of our modern workforce solutions have continued to drive increasing utilization of these products as we exit the pandemic. This dynamic was evident in Q2 across a wide range of clients, including an auto dealer with 1,200 employees across 22 locations that has seen employee survey participation increased to more than 70% since the rollout of Paylocity surveys, which directly led to updates in their fringe benefit policies and higher employee engagement.

謝謝，史蒂夫。我們專注於推動更高的員工敬業度、協作和聯繫，再次為第二季度的強勁業績做出了貢獻，因為我們現代勞動力解決方案的這些基本原則在我們退出大流行病後繼續推動這些產品的利用率提高。這種動態在第二季度在廣泛的客戶中很明顯，包括一家在 22 個地點擁有 1,200 名員工的汽車經銷商，自從推出 Paylocity 調查以來，員工調查參與率增加到 70% 以上，這直接導致了他們的邊緣更新福利政策和更高的員工敬業度。

Similarly, an outdoor furniture manufacturer with over 1,800 employees has seen over 90% of its employees engage with the Paylocity mobile app to communicate, collaborate and recognize their peers. Combined with the ongoing investments we are making across our broader product suite, this commitment to innovating and building the most modern software platform in the industry contributed to strong sales execution in Q2 and helped set us up for a strong second half of fiscal '23.

同樣，一家擁有 1,800 多名員工的戶外家具製造商發現其 90% 以上的員工使用 Paylocity 移動應用程序進行交流、協作和認識他們的同事。結合我們在更廣泛的產品套件中進行的持續投資，這種對創新和構建業內最現代軟件平台的承諾促成了第二季度的強勁銷售執行，並幫助我們為 23 財年下半年的強勁表現做好了準備。

Consistent with the prior quarter, interest income on client funds continues to rise as a result of sustained interest rate increases from the Federal Reserve. Given the large market opportunity in front of us, we continue reinvesting a portion of this upside back into key areas of the business to help drive future growth. In addition to continuing our investments in digital marketing and our channel initiatives, which once again, delivered more than 25% of our new business in Q2, we will continue to incrementally invest across our product suite to further innovate and deliver the most modern software platform in the industry. This is also a very busy time of year for our operations teams as they work closely with clients on year-end processing of payrolls, W-2s, 1095s and annual tax form filings to federal, state and local agencies and the implementation of new clients.

與上一季度一致，由於美聯儲持續加息，客戶資金的利息收入繼續上升。鑑於擺在我們面前的巨大市場機會，我們將繼續將部分上漲空間重新投資到業務的關鍵領域，以幫助推動未來的增長。除了繼續對數字營銷和渠道計劃進行投資（在第二季度再次交付了超過 25% 的新業務）之外，我們還將繼續對我們的產品套件進行增量投資，以進一步創新並提供最現代化的軟件平台在行業中。對於我們的運營團隊來說，這也是一年中非常忙碌的時期，因為他們與客戶密切合作，在年底處理工資單、W-2、1095 以及向聯邦、州和地方機構提交年度稅表，以及實施新客戶.

I want to thank all of our employees for their hard work and dedication to our clients during this very, very busy time of year. I'd now like to pass the call to Ryan to review the financial results in detail and provide updated fiscal '23 guidance.

我要感謝我們所有的員工，感謝他們在一年中這個非常、非常忙碌的時候為我們的客戶所做的辛勤工作和奉獻。我現在想把電話轉給瑞安，讓他詳細審查財務結果並提供更新的 23 財年指南。

Thanks, Toby.

謝謝，托比。

Total revenue for the second quarter was $273 million, an increase of 39.3% with recurring and other revenues up 31.4% from the same period last year and $14 million ahead of our guidance midpoint. Our adjusted gross profit was 72.4% for Q2 versus 68.7% in Q2 of last fiscal, representing 370 basis points of leverage as we continue to focus on scaling our operational costs, while maintaining industry-leading service levels. We continue to make significant investments in research and development and to understand our overall investment in R&D it is important to combine both what we expense and what we capitalize.

第二季度總收入為 2.73 億美元，增長 39.3%，經常性和其他收入比去年同期增長 31.4%，比我們的指導中點高出 1400 萬美元。我們調整後的第二季度毛利潤為 72.4%，而上一財年第二季度為 68.7%，代表 370 個基點的槓桿率，因為我們繼續專注於降低運營成本，同時保持行業領先的服務水平。我們繼續在研發方面進行大量投資，要了解我們在研發方面的整體投資，將我們的支出和資本化結合起來很重要。

On a dollar basis, our year-over-year investment in total R&D increased by 38.4% when compared to the second quarter of fiscal '22 and we remain focused on making incremental investments in R&D throughout fiscal '23 as we continue to build out the Paylocity platform to serve the needs of the modern workforce.

按美元計算，與 22 財年第二季度相比，我們對研發總投資的同比增長了 38.4%，並且隨著我們繼續構建Paylocity 平台可滿足現代勞動力的需求。

In regards to our go-to-market activities, on a non-GAAP basis, sales and marketing expenses were 23.7% of revenue in the second quarter, and we remain focused on making incremental investments in this area of the business in fiscal '23 to drive continued growth. On a non-GAAP basis, G&A costs were 11.3% of revenue in the second quarter versus 13.3% in the same period last year, and we remain focused on consistently leveraging our G&A expenses on an annual basis.

關於我們的上市活動，在非 GAAP 基礎上，第二季度銷售和營銷費用佔收入的 23.7%，我們仍然專注於在 23 財年對該業務領域進行增量投資以推動持續增長。在非 GAAP 基礎上，第二季度 G&A 成本佔收入的 11.3%，而去年同期為 13.3%，我們仍然專注於始終如一地利用年度 G&A 費用。

Our adjusted EBITDA for the second quarter was $77.4 million or 28.3% margin and exceeded the top end of our guidance by $10.9 million and represented 450 basis points of leverage versus Q2 of fiscal '22. We continue to be pleased by our ability to drive increased profitability through leverage and adjusted gross margin, adjusted EBITDA and free cash flow while also maintaining strong revenue growth.

我們第二季度調整後的 EBITDA 為 7740 萬美元或 28.3% 的利潤率，比我們指導的上限高出 1090 萬美元，與 22 財年第二季度相比槓桿率高出 450 個基點。我們繼續感到高興的是，我們有能力通過槓桿和調整後的毛利率、調整後的 EBITDA 和自由現金流來提高盈利能力，同時保持強勁的收入增長。

Briefly covering our GAAP results. For Q2, gross profit was $182.9 million, operating income was $18.2 million and net income was $15.6 million. In regards to the balance sheet, we ended the quarter with cash and cash equivalents of $120.1 million and no debt outstanding. In regard to client-held funds and interest income, our average daily balance of client funds was $2.3 billion in Q2. We are estimating the average daily balance will be approximately $2.7 billion in Q3 with an average annual yield of approximately 320 basis points.

簡要介紹我們的 GAAP 結果。第二季度，毛利潤為 1.829 億美元，營業收入為 1820 萬美元，淨收入為 1560 萬美元。在資產負債表方面，本季度末我們的現金和現金等價物為 1.201 億美元，沒有未償債務。在客戶持有的資金和利息收入方面，我們在第二季度的平均每日客戶資金餘額為 23 億美元。我們估計第三季度的平均每日餘額約為 27 億美元，平均年收益率約為 320 個基點。

On a full year basis, we are estimating the average daily balance will be $2.4 billion with an average yield of approximately 280 basis points. Additionally, please note that our guidance includes the impact of this week's 25 basis point interest rate increase and also assumes an increase of up to 25 basis points in March. In regards to client workforce levels, the number of client employees on the platform was flat in October, November, December and January on a sequential basis in each month, and as a reminder, was up only modestly on a sequential basis in Q1.

在全年基礎上，我們估計平均每日餘額為 24 億美元，平均收益率約為 280 個基點。此外，請注意，我們的指引包括本週加息 25 個基點的影響，並假設 3 月份加息最多 25 個基點。在客戶勞動力水平方面，平台上的客戶員工人數在 10 月、11 月、12 月和 1 月環比持平，提醒一下，第一季度環比僅略有上升。

Our guidance assumes client workforce levels to be flat for the remainder of the fiscal year. Finally, I'd like to provide our financial guidance for Q3 and full fiscal '23, which assumes no further changes in client workforce levels in the back half of this fiscal year. For the third quarter of fiscal '23, total revenue is expected to be in the range of $330.5 million to $334.5 million or approximately 35% growth over third quarter fiscal '22 total revenue. And adjusted EBITDA is expected to be in the range of $121.5 million to $124.5 million. And for fiscal year '23, total revenue is expected to be in the range of $1.156 billion to $1.161 billion or approximately 36% growth over fiscal '22, and adjusted EBITDA is expected to be in the range of $358.5 million to $362.5 million, which represents 320 basis points of leverage over fiscal '22.

我們的指導假設客戶勞動力水平在本財年剩餘時間內持平。最後，我想提供我們對第三季度和整個 23 財年的財務指導，假設本財年下半年客戶勞動力水平沒有進一步變化。對於 23 財年第三季度，總收入預計在 3.305 億美元至 3.345 億美元之間，比 22 財年第三季度總收入增長約 35%。調整後的 EBITDA 預計在 1.215 億美元至 1.245 億美元之間。對於 23 財年，總收入預計在 11.56 億美元至 11.61 億美元之間，比 22 財年增長約 36%，調整後的 EBITDA 預計在 3.585 億美元至 3.625 億美元之間，這代表 22 財年槓桿的 320 個基點。

In conclusion, we are pleased with our Q2 results and the strong momentum we have carried in the back half of fiscal '23. With our fiscal '23 guidance of approximately 36% revenue growth at the midpoint and adjusted EBITDA margins of 31%, we are firmly above the Rule of 60 in fiscal '23. We remain committed to continuing our history of driving profitable revenue growth while also increasing adjusted gross margin, adjusted EBITDA and free cash flow on an annual basis.

總之，我們對我們第二季度的業績以及我們在 23 財年後半段所保持的強勁勢頭感到滿意。憑藉我們在 23 財年中點收入增長約 36% 的指導和調整後 EBITDA 利潤率為 31%，我們在 23 財年堅定地高於 60 條規則。我們仍然致力於延續我們推動盈利收入增長的歷史，同時每年增加調整後的毛利率、調整後的 EBITDA 和自由現金流。

Operator, we are now ready for questions.

接線員，我們現在準備好提問了。

(Operator Instructions)

（操作員說明）

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

我們的第一個問題來自 Needham & Company 的 Scott Berg。

I've got two here. We're seeing a little bit of weakness from some other SMB companies or software vendors focused on market a little bit. Any color in terms of what you're seeing around customer adds in the last quarter, maybe relative to your expectations year-to-date?

我這裡有兩個。我們看到其他一些專注於市場的 SMB 公司或軟件供應商有些疲軟。在上個季度，您在客戶周圍看到的任何顏色都增加了，可能與您年初至今的預期有關？

Yes. Sure, Scott. So we had a really good first half of the year overall. And I think even Toby mentioned talking about some of the sales momentum that we've had in our busy selling season and that allowed us to significantly raise the year. I think we have an advantage being in the HCM business, payroll is something that every single company has to do. For us, it all starts with payroll and using the data from doing payroll to be able to connect to the rest of the suite and obviously sell a much broader solution today. And so we've had continued success in terms of adding new units, and we've also had success in terms of selling more product and also even more success upmarket as we kind of called out over the last couple of calls.

是的。當然，斯科特。因此，我們上半年整體表現非常好。而且我認為甚至 Toby 都提到了談論我們在繁忙的銷售季節所擁有的一些銷售勢頭，這使我們能夠顯著提高這一年。我認為我們在 HCM 業務中有優勢，工資單是每家公司都必須做的事情。對我們來說，這一切都始於工資單，並使用工資單中的數據能夠連接到套件的其餘部分，顯然今天可以銷售更廣泛的解決方案。因此，我們在增加新單位方面取得了持續的成功，而且我們在銷售更多產品方面也取得了成功，並且在過去的幾個電話中我們有點呼籲在高端市場取得更大的成功。

Got it. Helpful. And then from a follow-up question, I know Ryan had mentioned that your R&D expense is up roughly 38% year-over-year. That's faster than your revenue growth right now. And I've called out many times, so I think your product innovation is driving your -- at least what I think there's some preseason win rate improvements over the last 2 years for the company. But how should we think about R&D investments going forward? Do you continue to step on the accelerator in a similar manner as you have been recently? Or is that an opportunity to maybe gain some financial leverage over because you're starting to, I don't know, hit as much product as you need to say.

知道了。有幫助。然後從後續問題中，我知道 Ryan 提到過你們的研發費用同比增長了大約 38%。這比您現在的收入增長速度更快。我已經喊了很多次，所以我認為你的產品創新正在推動你——至少我認為在過去兩年中公司的季前賽勝率有所提高。但是我們應該如何考慮未來的研發投資呢？你是否繼續以與最近類似的方式踩油門？或者這是一個可能獲得一些財務槓桿的機會，因為你開始，我不知道，擊中你需要說的盡可能多的產品。

Yes. I think, Scott, our point has always been a combination of adding new units, landing those customers and then expanding the number of products that we've got. I think we have been fairly consistent being close to our revenue growth in terms of our investments in product and technology. We never viewed that as a big leverage point, we look for leverage elsewhere. We see big opportunity to add more modern capabilities to the suite additional products and revenue opportunities to the suite. And though we certainly have not signaled any intention to be looking for leverage there, we think there's a fair amount of natural leverage in the business model in many other places as we scale. So I think the same approach as we've taken historically.

是的。我認為，斯科特，我們的觀點一直是增加新單位、吸引這些客戶，然後擴大我們現有產品的數量。我認為我們在產品和技術投資方面一直相當一致地接近我們的收入增長。我們從未將其視為一個重要的槓桿點，我們在其他地方尋找槓桿。我們看到了為套件添加更多現代功能的巨大機會，為套件增加了額外的產品和收入機會。儘管我們當然沒有表示有意在那裡尋找槓桿，但我們認為，隨著我們規模的擴大，許多其他地方的商業模式中存在相當多的自然槓桿。所以我認為與我們歷史上採用的方法相同。

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

我們的下一個問題來自 Brad Reback 與 Stifel 的對話。

Steve, as you talked about sort of customers using the product in new use cases, is there an opportunity for new ways to monetize going forward beyond just per employee per month?

史蒂夫，當你談到在新用例中使用該產品的客戶時，是否有機會通過新的方式從每位員工每月獲利？

Yes. I think that's a great question, Brad. We called out the Cloudsnap acquisition, the ability for us to integrate in our marketplace. We really view the data that we have about people to be really valuable to our customers, both from an automation perspective. But as we integrate with their broader suite of software that they're using to run their business, there certainly could be additional monetization opportunities. We are seeing that a little bit in the marketplace. We're at very early stages of continuing to expand the number of providers and leveraging the data that we have. So I don't think that -- all of our revenue has to be PPM, I think most of our revenue will continue to be PPM. But there's some opportunity for us to be able to leverage marketplace to potentially drive some referral revenue back to Paylocity as well.

是的。我認為這是一個很好的問題，布拉德。我們呼籲收購 Cloudsnap，這是我們整合市場的能力。從自動化的角度來看，我們確實認為我們擁有的關於人的數據對我們的客戶非常有價值。但是，當我們與他們用於運營業務的更廣泛的軟件套件集成時，肯定會有更多的貨幣化機會。我們在市場上看到了一點點。我們正處於繼續擴大供應商數量和利用我們擁有的數據的早期階段。所以我不認為 - 我們所有的收入都必須是 PPM，我認為我們的大部分收入將繼續是 PPM。但我們有機會利用市場將一些推薦收入也帶回 Paylocity。

That's great. And then one quick follow-up. I know it's still really early in sort of the adoption curve across a lot of these newer products. But do you have any appreciable data yet on higher retention rates for customers that are consuming more of these nontraditional HCM products?

那太棒了。然後是快速跟進。我知道很多這些新產品的採用曲線還處於早期階段。但是，對於消費更多這些非傳統 HCM 產品的客戶，您是否有任何關於更高保留率的可觀數據？

Yes. I would say that higher utilization, both in terms of the number of products that they use and then how much frequency their employees are logging in does translate to higher retention. It is a small difference. Quite frankly, there's a lot that goes into retention, right? The service elements are really important as well. But overall, we have historically segmented the customers based on utilization and number of products, and we've seen the customers who take advantage of the broader suite staying with us a little bit longer.

是的。我會說，更高的利用率，無論是他們使用的產品數量還是員工登錄的頻率，都意味著更高的保留率。這是一個很小的區別。坦率地說，保留有很多內容，對嗎？服務元素也非常重要。但總的來說，我們歷來根據產品的利用率和數量對客戶進行細分，並且我們已經看到利用更廣泛套件的客戶與我們在一起的時間更長一些。

Our next question comes from the line of Bryan Bergin with Cowen.

我們的下一個問題來自 Bryan Bergin 和 Cowen 的對話。

This is actually Jared Levine on for Bryan. In terms of the demand environment, was there any change in 2Q or through January in terms of the pace of prospective client decision-making.

這實際上是 Jared Levine 對 Bryan 的看法。就需求環境而言，第二季度或整個一月份的潛在客戶決策速度是否有任何變化。

Yes. I can start with that, see if anyone else wants to add color. I think we were really happy with our sales results for the first half of the year and into our very busy January selling season. That's obviously what allowed us to be able to raise the year and so both top-of-funnel activity in the larger end of the market, our core marketplace and even down market has been pretty strong. We definitely are seeing the modern suite, the newer capabilities, the video product, community, survey, LMS, all really resonating even in a post-COVID environment where -- our clients are dealing with hybrid workforces. They're dealing with the demand more flexibility. Gen Z continues to grow in the marketplace. And so we would certainly credit to the combination of service and differentiated product as to our success that we've had so far.

是的。我可以從那開始，看看是否還有其他人想要添加顏色。我認為我們對今年上半年的銷售業績以及進入非常繁忙的 1 月銷售旺季感到非常滿意。這顯然是讓我們能夠提高這一年的原因，因此較大端市場、我們的核心市場甚至下游市場的漏斗頂部活動都非常強勁。我們肯定看到了現代套件、更新的功能、視頻產品、社區、調查、LMS，即使在後 COVID 環境中，所有這些都真正引起了共鳴——我們的客戶正在處理混合勞動力。他們正在處理更靈活的需求。 Z 世代在市場上繼續成長。因此，到目前為止，我們的成功當然要歸功於服務和差異化產品的結合。

Okay. Great. And then in terms of your client conversations, has the ROI and the payback period of your offerings increasingly become a focus with prospective client conversations? And how do you generally view the typical payback period with the average client?

好的。偉大的。然後就您的客戶對話而言，您的產品的投資回報率和投資回收期是否越來越成為潛在客戶對話的焦點？您通常如何看待普通客戶的典型投資回收期？

Yes. I think -- so maybe a couple of different points on this. I mean, there's no doubt that with the type of product, the type of software that we're offering in the market, there is an appreciable ROI that comes from both modernization and automating what would otherwise be manual tasks for folks.

是的。我想 - 所以可能有幾個不同的觀點。我的意思是，毫無疑問，對於我們在市場上提供的產品類型和軟件類型，現代化和自動化都帶來了可觀的投資回報率，否則人們將需要手動完成這些任務。

I think though, the core of the value prop that we're really focused on from a client or from a prospect pitch standpoint is really around the breadth of the platform, focusing on the fact that we do have the most modern platform in the industry and talking to people about what we can deliver from a value proposition standpoint that is certainly with the core of payroll, certainly with the core of the HCM suite, but really getting into all the things that we're offering that really go beyond the traditional HCM suite, whether that's things like community or what we're doing with the modern workforce index as we continue to expand the product set with things like Community Plus, what we're doing with video surveys and LMS really getting towards engaging with employees and giving clients the ability to engage with their employees in a more modern and differentiated way.

不過我認為，從客戶或潛在客戶的角度來看，我們真正關注的價值支柱的核心實際上是圍繞平台的廣度，關注我們確實擁有業內最現代的平台這一事實並與人們談論我們可以從價值主張的角度提供什麼，這當然是薪資的核心，當然是 HCM 套件的核心，但真正深入到我們提供的所有真正超越傳統的東西HCM 套件，無論是像社區這樣的東西，還是我們在用現代勞動力指數做的事情，因為我們繼續通過 Community Plus 等東西擴展產品集，我們在視頻調查和 LMS 方面所做的事情真正與員工互動，使客戶能夠以更現代和差異化的方式與員工互動。

So I think that's really the core beyond an ROI conversation of how we're having those types of client or prospect conversations in the market.

因此，我認為這確實是我們如何在市場上進行這些類型的客戶或潛在客戶對話的 ROI 對話之外的核心。

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

我們的下一個問題來自 Terry Tillman 與 Truist 的對話。

I have a question and then a follow-up. And dangerously I guess my creative juices are flowing. You all tell the idea of a modern platform and clearly, payroll, core HR and then talent management, you've got a lot of those capabilities, you keep adding more R&D. But what I'm curious about is I've been hearing software companies talked for a number of quarters now about this aspirational [glove] vendor consolidation, and that will benefit their business. So whether it's a premium video community, surveys, LMS or just talent management bundles, I'm not suggesting you're going to shift from trying to go after new logos, but is there an incremental opportunity to almost have kind of a tactical selling effort back to the base to really drive kind of a vendor consolidation playbook?

我有一個問題，然後跟進。危險的是，我猜想我的創造力正在湧動。你們都談到了現代平台的想法，很明顯，薪資、核心人力資源和人才管理，你們擁有很多這些能力，你們不斷增加研發。但我很好奇的是，我已經聽到軟件公司在幾個季度內談論這種雄心勃勃的 [手套] 供應商整合，這將有利於他們的業務。因此，無論是優質視頻社區、調查、LMS 還是只是人才管理捆綁包，我並不是建議您從嘗試追求新徽標轉變，但是否有增量機會幾乎可以進行某種戰術銷售努力回到基地以真正推動某種供應商整合劇本？

Terry. Yes, so I mean, I think the main part of our motion from a go-to-market perspective has certainly been in terms of landing new units. No doubt about that. And I think what we're seeing as we do that is new clients onto the platform have tended to take a broader part of the suite, which we feel good about. I think though -- to your question, we have also had a distinct motion going back into the customer base as we've expanded the product set going from $200 for the full product set at the time of the IPO to where we sit over $400 today -- $440.

特里。是的，所以我的意思是，我認為從進入市場的角度來看，我們動議的主要部分肯定是在登陸新單位方面。毫無疑問。而且我認為我們在做的時候看到的是平台上的新客戶傾向於使用套件的更廣泛部分，我們對此感到滿意。不過我認為——對於你的問題，我們也有一個明確的動議回到客戶群，因為我們已經擴大了產品集，從 IPO 時整個產品集的 200 美元增加到 400 美元以上今天——440 美元。

I mean we have an opportunity to sell product back into the customer base, and we do have a dedicated team that does that. So I think what you've seen from us is, over the course of the last 3-4 years primarily set up and I think invest more in that back-to-base motion. And I think we've seen a reasonable amount of success with that.

我的意思是我們有機會把產品賣回客戶群，而且我們有專門的團隊來做這件事。所以我認為你從我們這裡看到的是，在過去 3-4 年的過程中，主要是建立起來的，我認為在回到基地的議案上投入更多。我認為我們已經看到了相當大的成功。

Okay. It sounds like that's still going to be secondary, maybe more opportunistic, but maybe a future call option.

好的。聽起來這仍然是次要的，也許更具機會主義色彩，但也許是未來的看漲期權。

Well, I think just given the relatively low sort of share of a relatively large market that we have, I think we have put the bulk of our go-to-market motion in terms of landing new logos and new units. And I think that just reflects the size of the opportunity that's out there in front of us.

好吧，我認為鑑於我們擁有的相對較大的市場份額相對較低，我認為我們已經將大部分進入市場的動議放在登陸新標識和新單位方面。我認為這只是反映了擺在我們面前的機會的大小。

Yes. Yes. Sounds good. And I guess the follow-up question is up on the upmarket. I always like hearing examples of the auto dealership and then the furniture manufacturer. As you continue to iterate on your platform and you have more capabilities, whether it's 1,000 employees plus or -- do you feel like you could keep getting pulled higher up in the market? Or could you share a little bit strategically how you think about that kind of upmarket opportunity over the next 2 to 3 years?

是的。是的。聽起來不錯。我想後續問題是在高檔市場上。我總是喜歡聽汽車經銷商的例子，然後是家具製造商的例子。隨著您繼續在您的平台上進行迭代並且您擁有更多功能，無論是 1,000 名員工還是 - 您是否覺得您可以在市場上不斷提升？或者您能否從戰略上分享一下您如何看待未來 2 到 3 年的這種高端市場機會？

Yes, sure. It's a good question. We've always focused on as we build new products, we build the capabilities that we think our average sized customer, a little more than 100 employees, would really need. And then what happens is as we get more customers, we see more demand from our customers and we really kind of live in product and technology on the idea of customer or cocreator. And so they request features and we continue to enhance the product and keep teams in an agile fashion, constantly building on top of that product and the product gets richer in terms of the feature set. And that starts to appeal to larger customers. And so what you've seen over time is as our talent modules have matured, as we've added some of these newer modern capabilities, we are starting to see differentiation even upmarket where they are starting to think about how do they engage employees and going beyond automation. We don't think that, that goes to the moon, quite frankly.

是的，當然。這是個好問題。在開發新產品時，我們一直專注於構建我們認為我們的平均規模客戶（略多於 100 名員工）真正需要的能力。然後發生的事情是，隨著我們獲得更多的客戶，我們看到客戶的更多需求，我們真的在某種程度上根據客戶或共同創造者的想法生活在產品和技術中。因此，他們要求功能，我們繼續增強產品並以敏捷的方式保持團隊，不斷在該產品之上構建，並且產品在功能集方面變得更加豐富。這開始吸引更大的客戶。所以隨著時間的推移，你看到的是我們的人才模塊已經成熟，隨著我們添加了一些更新的現代功能，我們開始看到差異化，甚至是高端市場，他們開始考慮如何吸引員工和超越自動化。坦率地說，我們不認為那會去月球。

We've just increased the target market about a year ago or so, and we're having success in that marketplace. So it's possible that, that stretches a little bit over time, but I would be more focused on what Toby just said, which is we've got a really big opportunity in the market that we're in, very low market share. And so we plan on focusing on capturing as many customers in our existing target market as possible.

大約一年前，我們剛剛增加了目標市場，並且我們在該市場取得了成功。因此，隨著時間的推移，這可能會有所延長，但我會更關注托比剛才所說的，即我們在我們所處的市場上有一個非常大的機會，市場份額非常低。因此，我們計劃專注於在現有目標市場中吸引盡可能多的客戶。

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

我們的下一個問題來自 Mark Marcon 與 Baird 的對話。

Congratulations on a strong quarter. Steve, Toby, you talked a little bit about Cloudsnap just in terms of prepared remarks and in the press release. Can you add a little bit more dimensionality with regards to how that's helping in terms of getting new clients? What are you seeing from a sales productivity perspective? And what are some of the integrations that are the most common that you're seeing that you weren't able to do before that you can do now and that's really adding to the sales momentum.

祝賀一個強勁的季度。史蒂夫、托比，你們只是在準備好的評論和新聞稿中談到了一些關於 Cloudsnap 的事情。關於這對獲得新客戶有何幫助，您能否添加更多維度？從銷售效率的角度來看，您有何看法？您看到的一些最常見的集成是什麼，您以前無法做到現在可以做到，這確實增加了銷售勢頭。

Sure, sure. So Mark, we've had kind of a marketplace where our clients can connect disparate applications to the employee data that we have. And certainly, we can do that in a real-time fashion from an API perspective. And we do that with some of our larger providers that get asked more frequently. On the flip side, you've also got customers who may have vertical market applications or whose applications may not be quite ready for real-time API capabilities. And then it takes a while to build those integrations, and we've got a team with technical services team who's been doing this for years. Cloudsnap really enables that team to operate so much faster using the low-code capabilities that they bring to the table. And so we can configure integrations so much faster, and they also become much more scalable on a go-forward basis using that technology. And so for us, it really opens up the landscape of number of providers that we can integrate with and it also gives us increased speed to market for those integration and longer-term scalability.

一定一定。所以馬克，我們有一個市場，我們的客戶可以將不同的應用程序連接到我們擁有的員工數據。當然，我們可以從 API 的角度實時做到這一點。我們與一些更經常被問到的更大的供應商一起這樣做。另一方面，您也有一些客戶，他們可能擁有垂直市場應用程序，或者他們的應用程序可能還沒有為實時 API 功能做好準備。然後需要一段時間來構建這些集成，我們有一個技術服務團隊多年來一直在做這件事。 Cloudsnap 確實使該團隊能夠使用他們帶來的低代碼功能更快地運行。因此，我們可以更快地配置集成，並且在使用該技術的基礎上，它們也變得更具可擴展性。因此，對我們來說，它確實打開了我們可以與之集成的供應商數量的格局，它也讓我們加快了這些集成和長期可擴展性的上市速度。

Great. And does that help you more in the upmarket or the mid-market? Or how would you describe that?

偉大的。這對您在高端市場還是中端市場更有幫助？或者你會如何描述？

All the way across. Certainly, upmarket clients are definitely demanding integration into their disparate system. But even if you've got 35 employees, you'd love that connection into your accounting system as well. And so the scalability portion really helps downmarket in terms of us to be able to scale that to a broader set of customers. Upmarket, we may find vertical market applications that don't necessarily have horizontal penetration across all of our markets. Using Cloudsnap, we can get those vertical market application, ERP integrations up relatively quickly as well. So I think it's really helpful across the entire target market.

一路過關斬將。當然，高端客戶肯定要求集成到他們不同的系統中。但即使您有 35 名員工，您也會喜歡這種與您的會計系統的連接。因此，可擴展性部分確實有助於我們的低端市場能夠將其擴展到更廣泛的客戶群。高端市場，我們可能會發現垂直市場應用程序不一定在我們所有市場中都有橫向滲透。使用 Cloudsnap，我們可以相對快速地獲得那些垂直市場應用程序、ERP 集成。所以我認為這對整個目標市場真的很有幫助。

And so are the ERP integrations the most common that you're seeing now? Or what would be the most common?

那麼 ERP 集成是您現在看到的最常見的嗎？或者最常見的是什麼？

Yes. So I think broadly speaking, ERP applications would be one of the most common areas and certainly, the accounting portion of that is a key integration. But if you think about it, employee data ends up being kind of at the center of many workflows and processes at an organization, so we know when people are hired. They are knowing the term, they are knowing the supervisory changes. We know a lot of information about the employees that, from a workflow perspective, you can power into other applications and create even more automation for clients. So although we're seeing a fair amount of demand in ERP, point-of-sale systems is another great example, vertical market applications, another great example. And so we're seeing a fair amount of demand, and we're excited about being able to fill that demand with Cloudsnap capabilities.

是的。所以我認為從廣義上講，ERP 應用程序將是最常見的領域之一，當然，其中的會計部分是一個關鍵的集成。但如果你仔細想想，員工數據最終會成為組織中許多工作流程和流程的中心，所以我們知道何時僱用人員。他們知道這個詞，他們知道監管變化。我們知道很多關於員工的信息，從工作流的角度來看，您可以為其他應用程序提供動力，並為客戶創造更多的自動化。因此，儘管我們在 ERP 中看到了相當多的需求，但銷售點系統是另一個很好的例子，垂直市場應用程序也是一個很好的例子。因此，我們看到了相當多的需求，我們很高興能夠使用 Cloudsnap 功能來滿足這一需求。

Okay. Great. And then my follow-up is, just on the float, the effective yields, you didn't give the effective yield for the second quarter. I'm assuming it's somewhere around 290 basis points. Is that right? And can you remind us what it was during the first quarter in terms of the sequential increase. And you did give us the float expectation the third quarter. I'm just wondering to what extent that seems a little on the conservative side.

好的。偉大的。然後我的後續行動是，就浮動而言，有效收益率，你沒有給出第二季度的有效收益率。我假設它在 290 個基點左右。是對的嗎？你能提醒我們第一季度的環比增長情況嗎？你確實給了我們第三季度的浮動預期。我只是想知道這在多大程度上看起來有點保守。

Sure, Mark. I can take that one. So first quarter average daily balance was about $2.1 billion, and the annual yield was 1.5% or 150 basis points. Second quarter, you had it right, about 290 basis points of yield. So you saw that big stepup following the September and November Fed rate increases. Third quarter, as we outlined in the prepared remarks, about $2.7 billion planned held fund balance average there, 320 basis points of annual yield and I think if you do the math in the fourth quarter, we're expecting about $2.6 billion of client funds in the fourth quarter with about 3.4% to 3.5% annual yield.

當然，馬克。我可以拿那個。因此，第一季度平均每日餘額約為 21 億美元，年收益率為 1.5% 或 150 個基點。第二季度，你做對了，收益率約為 290 個基點。所以你看到了美聯儲在 9 月和 11 月加息之後的大幅上漲。第三季度，正如我們在準備好的評論中所概述的那樣，那里平均計劃持有的基金餘額約為 27 億美元，年收益率為 320 個基點，我認為如果你在第四季度進行計算，我們預計客戶資金約為 26 億美元第四季度的年收益率約為 3.4% 至 3.5%。

Our next question comes from the line of Samad Samana with Jefferies.

我們的下一個問題來自 Samad Samana 與 Jefferies 的對話。

Maybe first one, just around the numbers themselves. If I think about the F 3Q guidance, it kind of gives us an early peek into F 4Q and I know the world is changing right underneath our feet at all times, but it implies kind of a low 20s recurring revenue growth rate. You guys have been growing well above that. And we're big fans and there's a lot of momentum behind the business. I'm just kind of thinking, should we expect growth to -- is that conservative because of macro? Or is that just the comps get tougher? Or is that just -- how should we think about that, especially in the context of where the business momentum has been and where it was prior to COVID?

也許是第一個，就在數字本身周圍。如果我考慮 F 3Q 指南，它有點讓我們提前了解 F 4Q，我知道世界一直在我們腳下發生變化，但這意味著 20 多歲的低經常性收入增長率。你們的成長遠不止於此。我們是忠實粉絲，業務背後有很大的動力。我只是在想，我們是否應該期望增長——是因為宏觀因素而保守嗎？或者只是比賽變得更難了？或者這只是 - 我們應該如何考慮這一點，特別是在業務勢頭一直在哪里以及 COVID 之前的情況下？

So I guess the way I would think about this is if you go back to the fiscal year prior to COVID, we were in that sort of mid-20s-ish performance range from a recurring revenue growth perspective. And at that point in time, we were guiding in the low 20s. And I don't think our guidance philosophy has changed from then until now. And what we had talked about at that point in time was continuing to operate the business and drive the business and invest in the business to be able to come out the other side of everything that was pandemic related with similar growth profile. And I think that's what we've talked about over the course of the last handful of quarters is as you start to get clear of some of the noise in the comps which we thought would be the back half of this fiscal year and in particular Q4, you would start to see more normalized growth rates that probably start to look a lot like they did pre-COVID, certainly in a much bigger business. But -- and I think that's what we're starting to see.

所以我想我的想法是，如果你回到 COVID 之前的財政年度，從經常性收入增長的角度來看，我們處於那種 20 年代中期的業績範圍。在那個時候，我們的指導時間是 20 多歲。而且我認為我們的指導理念從那時到現在都沒有改變。我們當時談論的是繼續經營業務、推動業務和投資業務，以便能夠擺脫與大流行相關的具有類似增長狀況的一切事物的另一面。而且我認為這就是我們在過去幾個季度中討論的內容，因為您開始清楚我們認為將在本財年後半段，特別是第四季度的公司中的一些噪音，你會開始看到更正常化的增長率，這些增長率可能開始看起來很像他們在 COVID 之前所做的，當然是在更大的企業中。但是——我認為這就是我們開始看到的。

I mean if you sort of unpack some of the dynamics there, Ryan called out that we are seeing really flat performance from employees on the platform perspective. We have continued -- so that has been a tailwind starting to comp some of those increases and so that starts to flatten out. I think you also -- from a demand perspective, Steve made some of these comments, we have continued to see a reasonably strong demand environment. The sales execution has been good, which we feel good about. I don't think you're seeing any -- I don't think we're any -- displaying any particular conservatism as it relates to the macro.

我的意思是，如果你在那裡解開一些動態，Ryan 大聲說，從平台的角度來看，我們看到員工的表現非常平淡。我們一直在繼續——所以這一直是順風，開始抵消其中的一些增長，因此開始趨於平緩。我想你也 - 從需求的角度來看，史蒂夫發表了其中一些評論，我們繼續看到相當強勁的需求環境。銷售執行情況良好，我們對此感覺良好。我認為你沒有看到任何——我認為我們沒有——表現出任何與宏觀相關的特定保守主義。

We're certainly aware of the macro concerns. But from a performance perspective, have continued to see a strong demand environment. I think you're just starting to see us normalizing in Q4 back to pre-pandemic level of growth rates as we get through some of the noise that was in the comps, which is pretty consistent with how we've talked about things over the last handful of quarters.

我們當然知道宏觀問題。但從業績的角度來看，仍然看到強勁的需求環境。我認為你剛剛開始看到我們在第四季度正常化回到大流行前的增長率水平，因為我們克服了比較中的一些噪音，這與我們過去談論事情的方式非常一致最後幾個季度。

Great. And then maybe a follow-up for you, Steve. As I just think about the company's evolution and some of the questions you've gotten before this. Are you getting both a -- obviously, your primary advocates turn out to be the HR department, but are you getting more in different buyers inside of the organization. Is that giving you access to maybe more dollars or budget that may not have been previously thought of going through that department or if that they're able to allocate to you? How should we think about that?

偉大的。然後也許是你的後續行動，史蒂夫。因為我只是在考慮公司的發展以及您在此之前收到的一些問題。你是否得到了 - 顯然，你的主要擁護者原來是人力資源部門，但你在組織內部的不同買家中得到了更多。這是否可以讓您獲得以前可能沒有考慮過該部門的更多美元或預算，或者他們是否能夠分配給您？我們應該如何考慮？

It's an interesting question. I think the buyers for the most part, have stayed very much the same, meaning it's typically your Head of HR and also your CFO as part of that decision-making process. Historically, we would involve CEOs at times, but it would probably be more from an approval perspective. I would tell you that we've had better CEO conversations when we start talking about how you engage with employees, how you drive retention, how you're driving productivity in employees with things like LMS, how you're gathering feedback and making changes based off that feedback?

這是一個有趣的問題。我認為買家在很大程度上保持不變，這意味著通常是您的人力資源主管和您的首席財務官作為決策過程的一部分。從歷史上看，我們有時會讓 CEO 參與進來，但可能更多是從批准的角度來看。我會告訴你，當我們開始談論你如何與員工互動、你如何提高保留率、你如何通過 LMS 等東西提高員工的生產力、你如何收集反饋和做出改變時，我們就進行了更好的 CEO 對話基於反饋？

So this engagement concept really does appeal to a CEO. You think people are the most important asset of any company. And so the ability to onboard new employees to drive productivity to make sure that retention is high, to attract talent, I think we definitely -- although the HR and CFO buyer are still the key buyers, I think we've extended the value proposition such that we've got more conversations and access to the actual CEO.

因此，這種參與概念確實對 CEO 很有吸引力。您認為人是任何公司最重要的資產。因此，讓新員工入職以提高生產力以確保高保留率、吸引人才的能力，我認為我們肯定——儘管人力資源和首席財務官買家仍然是主要買家，但我認為我們已經擴展了價值主張這樣我們就有了更多的對話和接觸實際 CEO 的機會。

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

我們的下一個問題來自 Brian Peterson 和 Raymond James 的台詞。

This is Alex Sklar for Brian. I know the current quarter is normally a big hiring quarter. Just want to see if there's any change at the margin to your hiring plans relative to what you had laid out the last couple of quarters.

這是 Brian 的 Alex Sklar。我知道當前季度通常是一個大的招聘季度。只是想看看您的招聘計劃相對於過去幾個季度的計劃是否有任何變化。

Yes. I would say it's a little bit different by department. But if you think of sales, it's really post year-end. So as we start to hit the spring timeframe. So this month in February and March that things really ramp up and we start to put our planning process for next fiscal year and start ramping up sales headcount. So we're fairly early in that, we sometimes get off to a little bit of a head start when we can, and we always do that opportunistically, but the hiring season is really ahead of us. I think really good success from a product and technology perspective, great retention in that group.

是的。我會說這因部門而異。但如果你想到銷售，那真的是在年底之後。因此，當我們開始進入春季時間表時。所以在二月和三月的這個月，事情真的開始好轉了，我們開始為下一個財政年度製定計劃，並開始增加銷售人員。所以我們在這方面還很早，有時我們會在可能的情況下搶先一步，而且我們總是機會主義地這樣做，但招聘季節真的提前了。我認為從產品和技術的角度來看確實取得了巨大的成功，在該團隊中的保留率很高。

You can see we've had pretty good year-over-year increase in investments there. We're excited about the pipeline to that organization. And we went into the year-end, really fully staffed just from an operations perspective because it's a really important time here to be there for our customers and to be able to deliver the service that they need. So overall, we feel really good about the staffing levels and the employee value proposition that we're selling in the market, a growth company in the software space that's not looking to reduce expenses, but looking to develop talent and promote people and continue to grow really resonate. So we've been really happy with our ability to attract and retain talent.

你可以看到我們在那裡的投資同比增長相當不錯。我們對通往該組織的管道感到興奮。我們進入了年底，從運營的角度來看，員工真的很充足，因為這是一個非常重要的時刻，可以為我們的客戶提供服務，並能夠提供他們需要的服務。所以總的來說，我們對我們在市場上銷售的人員配置水平和員工價值主張感到非常滿意，這是一家軟件領域的成長型公司，它不希望減少開支，而是希望培養人才和提拔人才，並繼續真正引起共鳴。因此，我們對吸引和留住人才的能力感到非常滿意。

And I also want to follow up on Terry's market question earlier. So I'm curious, can you help frame kind of the percentage of your pipeline? I don't know, either in terms of MRR or if you have a different preferred metric, but that's coming from those upmarket opportunities now versus a year ago?

我也想跟進特里早些時候的市場問題。所以我很好奇，你能幫助確定管道的百分比嗎？我不知道，無論是 MRR 方面還是您是否有不同的首選指標，但這是來自現在與一年前相比的那些高端市場機會？

Annual recurring revenue, we don't necessarily break that apart by any specific segment. But if you think of our historically our (technical difficulty) kind of 30, 40 employees to 500 employees, that's where we still get the majority of our new recurring revenue. The larger end of the market certainly is growing really nicely. We've called that out really over the last several quarters that continues to be success. And we continue to get traction down market as customers are starting to look for those new capabilities. So think about the majority of our revenue still coming from the core market that we focused on, really seem to beginning.

年度經常性收入，我們不一定將其按任何特定部分分開。但如果你想想我們歷史上的（技術困難）30、40 名員工到 500 名員工，那是我們仍然獲得大部分新經常性收入的地方。更大的市場肯定增長得非常好。在過去的幾個季度中，我們已經真正提出了這一點，並繼續取得成功。隨著客戶開始尋找這些新功能，我們繼續吸引市場。所以想想我們的大部分收入仍然來自我們關注的核心市場，這似乎真的開始了。

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

我們的下一個問題來自 Matt Pfau 和 William Blair 的台詞。

Okay. Great. Just one. I wanted to ask on the employee growth within your customer base and the comments that, that was flat and expected to be flat. Anything to read into that in terms of the health of your customer base? Or is this just sort of a more return to what you would see in a normal labor environment?

好的。偉大的。只有一個。我想問問你們客戶群中的員工增長情況，以及那些持平並且預計會持平的評論。就客戶群的健康狀況而言，有什麼可以解讀的嗎？還是這只是您在正常分娩環境中看到的更多回歸？

Sure, Matt. I can take that one. I think if you think about the guidance philosophy we've had all the way back to the start of the pandemic, Obviously, there's been a lot of uncertainty over that period of time. And I think the approach that we've taken is we've guided to what's in front of us, and we've done that here again this quarter. As I outlined in the prepared remarks, workforce levels have effectively been flat since August and up modestly in July, and that's our expectation for the balance of the fiscal year. To the extent things get a little bit tighter, we see some expansion in the other way. I think that's sort of the movement within the guidance range.

當然，馬特。我可以拿那個。我認為，如果你考慮一下我們從大流行開始以來一直採用的指導理念，顯然，那段時間存在很多不確定性。而且我認為我們採取的方法是我們已經引導到我們面前的東西，並且我們在本季度再次這樣做了。正如我在準備好的發言中概述的那樣，勞動力水平自 8 月以來一直持平，7 月略有上升，這是我們對本財政年度餘額的預期。在某種程度上，事情變得更加緊張，我們看到了另一種方式的擴張。我認為這是指導範圍內的運動。

But sitting here today, coming off of a really strong selling season and a great January, I think we feel good about where the overall revenue guidance sits and obviously watching the macro closely but have not seen any impact within the client base. And likewise, from a sales perspective, continue to feel really good about the demand environment.

但今天坐在這裡，經歷了一個非常強勁的銷售季節和一個偉大的 1 月，我認為我們對整體收入指導的位置感覺良好，顯然密切關注宏觀，但沒有看到對客戶群產生任何影響。同樣，從銷售的角度來看，繼續對需求環境感覺良好。

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

我們的下一個問題來自 BMO 的 Daniel Jester。

My guess is that at this point, Blue Marble is probably pretty well integrated into the platform. You've got Cloudsnap now out there. I guess it frees up potentially some bandwidth internally for inorganic growth opportunities. So Steve, Toby, would love to kind of hear how you're thinking about inorganic in the year ahead.

我的猜測是，在這一點上，Blue Marble 可能已經很好地集成到平台中了。您現在已經有了 Cloudsnap。我想它可能會在內部為無機增長機會釋放一些帶寬。所以史蒂夫，托比，很想听聽你們對來年無機物的看法。

Dan, yes, I mean, I think just in terms of those two, I think the press release that we put out certainly feel really good about what we're doing with Cloudsnap. Steve made some comments earlier just around what the capabilities that, that's giving us from an integration platform perspective. And so really happy with how that's worked out and the value that's been able to add still in the process. I think Steve made the comments on the last quarter call that we're still in the process of fully integrating the Blue Marble capabilities into the platform. And I think that's typical of how we would sort of approach any acquisition that we do, the processes that we bring something in and we'll then spend the time which could take anywhere between 12 and 24 months to fully bake capabilities into our platform in a seamless way from a user experience perspective, from a data flow perspective. And so the teams are still working on that and feel good about the progress so far.

Dan，是的，我的意思是，我認為就這兩者而言，我認為我們發布的新聞稿對我們使用 Cloudsnap 所做的事情肯定感覺非常好。 Steve 早些時候就從集成平台的角度為我們提供的功能發表了一些評論。對結果如何以及能夠在此過程中增加的價值感到非常滿意。我認為史蒂夫在上個季度的電話會議上發表了評論，我們仍在將 Blue Marble 功能完全集成到平台中。我認為這是典型的我們處理任何收購的方式，我們引入一些東西的過程，然後我們將花費 12 到 24 個月的時間將功能完全融入我們的平台從用戶體驗的角度，從數據流的角度來看，這是一種無縫的方式。因此，團隊仍在為此努力，並對迄今為止的進展感到滿意。

Certainly, we continue to have the overall bandwidth to look at acquisitions that might be interesting. I think our point of view historically remains the case today. We would prefer to always develop the next capability that we want to push out from a product perspective. But I think we've also taken advantage of, in certain instances, the ability to accelerate things that might be really strategic to us, that it might be on the product road map by way of what's largely been, I would characterize as smaller product-oriented or technology-oriented tuck-in acquisitions. And I think that strategy and that viewpoint remains the case.

當然，我們繼續擁有整體帶寬來研究可能有趣的收購。我認為我們的觀點從歷史上看在今天仍然如此。我們更願意始終從產品的角度開發我們想要推出的下一個功能。但我認為，在某些情況下，我們還利用了加速可能對我們真正具有戰略意義的事情的能力，它可能通過主要是產品路線圖的方式出現在產品路線圖上，我將其描述為較小的產品面向或技術導向的收購。我認為這種策略和觀點仍然如此。

Got you. That's helpful. And then -- maybe just a quick one on the integration. What percent of your customers actually have an integration today connected through Paylocity? Just wondering to kind of see what the overall penetration and how that could actually look over time.

明白了這很有幫助。然後——也許只是關於集成的快速討論。今天，您的客戶中有多少實際上通過 Paylocity 進行了集成？只是想看看整體滲透率是多少，以及隨著時間的推移實際情況如何。

Yes. I don't know that off the top of my head, quite frankly. A lot of our customers have integrations for a wide variety of things. So 401(k) integration, as an example, Benefits integration would be another point of integration. And then you get into all this stuff, I mentioned prior ERPs and so on and so forth. So I think there's an opportunity to expand the number of integrations to the way I think about it. I would imagine we would have to see a future where every client has at least 1 integration. And over time, we want to actually drive the number of integrations so that they can really leverage the people data that we have. And in a real time, workflow capability. They know when something changes about that person, that will then enable one of their processes to create automation and create an opportunity to have higher levels of engagement. And so our viewpoint is clients, we want to integrate with all of the systems that they use to run their business that leverage people data. That's the goal and objective.

是的。坦率地說，我不知道這一點。我們的許多客戶都集成了各種各樣的東西。因此，401(k) 整合，例如，福利整合將是另一個整合點。然後你進入所有這些東西，我提到了之前的 ERP 等等。所以我認為有機會按照我的想法擴展集成的數量。我想我們必須看到每個客戶至少有 1 個集成的未來。隨著時間的推移，我們希望真正推動集成的數量，以便他們能夠真正利用我們擁有的人員數據。以及實時的工作流能力。他們知道那個人甚麼時候發生了變化，這將使他們的流程之一能夠實現自動化並創造機會來提高參與度。因此，我們的觀點是客戶，我們希望與他們用來運行利用人員數據的業務的所有系統集成。這就是目標。

Our next question comes from the line of Arvind Ramnani with Piper Sandler.

我們的下一個問題來自 Arvind Ramnani 和 Piper Sandler 的台詞。

Good set of results. My first question is really about this kind of investments you all have made over the past few years on making your HCM solution more employee-centric and driving engagement. You're certainly collecting a lot of data. Are you all able to sort of feedback some of the data to your clients? Are they seeing value in it. And down the road, do you expect that may drive some revenue growth in the longer term?

良好的結果集。我的第一個問題實際上是關於你們在過去幾年中為使 HCM 解決方案更加以員工為中心和推動參與而進行的這種投資。您肯定會收集大量數據。你們都可以把一些數據反饋給你們的客戶嗎？他們看到其中的價值了嗎？在未來，您是否預計這會在長期內推動收入增長？

Yes, it's a great question. We've been investing for several years now kind of in machine learning, artificial intelligence capabilities. You see that surfaced in our product already in a few different places, and we do see many more opportunities as well. So one is our modern workforce index, where we look across our clients, and we score customers based off how engaged they are in our platform.

是的，這是一個很好的問題。多年來，我們一直在投資機器學習和人工智能能力。你看到我們的產品已經在幾個不同的地方出現了，我們也確實看到了更多的機會。因此，一個是我們的現代勞動力指數，我們在其中審視我們的客戶，並根據客戶在我們平台上的參與程度對他們進行評分。

And we know the higher the score, the more employee retention they have. And we do that even by vertical markets. So we compare hospitality to other hospitality. And then as they start to use more of the product, they see their score's going up, so the recommendation engine behind that starts to give them ideas on how they can get more value out of the product.

我們知道分數越高，他們的員工保留率就越高。我們甚至通過垂直市場來做到這一點。因此，我們將款待與其他款待進行比較。然後當他們開始使用更多的產品時，他們看到他們的分數在上升，因此背後的推薦引擎開始為他們提供關於如何從產品中獲得更多價值的想法。

We also will give surface recommendations even to employees around people that they might want to connect with, that they might want to communicate, that they might want to follow a community that's certainly another place. And then lastly, I would just say our dashboards and insights is another place that we try to surface that. But as technology continues to advance, we see this being another opportunity to modernize our suite in pretty much every single module, leveraging newer technologies and artificial intelligence and machine learning.

我們甚至會向周圍的員工提供表面建議，他們可能想與之聯繫，他們可能想交流，他們可能想關註一個肯定是另一個地方的社區。最後，我只想說我們的儀表板和見解是我們試圖展示的另一個地方。但隨著技術的不斷進步，我們認為這是另一個機會，可以利用更新的技術、人工智能和機器學習，在幾乎每個模塊中對我們的套件進行現代化改造。

Perfect. And does this like sort of help your win rates at this stage? And do you think it could drive like revenue growth? Like are you able to charge for this at a later point.

完美的。這對您現階段的勝率有幫助嗎？你認為它能推動收入增長嗎？就像您以後可以為此收費一樣。

It's a good question. I think today, it's largely driving win rates and it's creating differentiation in the marketplace. And I think, as Toby mentioned earlier, when you've got such a huge TAM in front of you and a big market opportunity, that's really important to have differentiation. I think that capability can be a component of new offerings that we have. I'm not sure we see at least in the immediate future that we would charge for a separate SKU on some of these capabilities. But as we launch new products, being able to incorporate things like recommendation engine, leveraging all the data that we have across the organization, get our clients to see best practices and implement new more modern capabilities. That's where we see the more immediate opportunity than maybe a separate monetizable products.

這是個好問題。我認為今天，它在很大程度上推動了贏率，並在市場上創造了差異化。而且我認為，正如托比之前提到的，當你面前有如此巨大的 TAM 和巨大的市場機會時，差異化真的很重要。我認為這種能力可以成為我們擁有的新產品的組成部分。我不確定我們是否會至少在不久的將來看到我們會針對其中一些功能對單獨的 SKU 收費。但隨著我們推出新產品，能夠整合推薦引擎等東西，利用我們在整個組織中擁有的所有數據，讓我們的客戶看到最佳實踐並實施新的更現代的功能。這就是我們看到比單獨的可貨幣化產品更直接的機會的地方。

Yes, having followed Paylocity for several years now. I know even in 2018, '19, when you introduce community, it was free and then I appreciate your patience on trying to monetize first introduced brain adoption that monetize, I think that's a good approach. Just a couple of quick other questions. One is on this kind of employment levels, I mean, are you able to quantify how much of your growth comes from basically increased employment at existing clients?

是的，已經關注 Paylocity 好幾年了。我知道即使在 2018 年、19 年，當你引入社區時，它是免費的，然後我感謝你耐心地嘗試將首先引入的大腦採用貨幣化貨幣化，我認為這是一個很好的方法。只是幾個快速的其他問題。一個是關於這種就業水平，我的意思是，你能量化你的增長有多少來自現有客戶的基本增加的就業嗎？

I know in the past you have kind of outlined rate increases offset any sort of employment pressures. But are you able to quantify like over the last couple of years, how much of your growth has come from employee expansion at existing clients?

我知道過去你有某種概述的加息可以抵消任何形式的就業壓力。但是，您能否像過去幾年一樣量化，您的增長有多少來自現有客戶的員工擴張？

Sure, Arvind. I can take that one. I think if you think about in a normalized environment with a growing GDP, you may get a point, maybe 2 in a normal period with client workforce levels. Obviously, over the last 3 years or so, you've seen significant movements both ways. I think if you anchor back to the pandemic, we talked about up to a double-digit impact on recurring revenue in fiscal '20 that bled over into fiscal '21. And then again, I think if you look at where we were from a spring of '21 all the way towards the summer of 2022, we saw nearly every single month sequential improvements. And as we talked about each of those quarters, that has been a reasonable tailwind and you've seen outsized recurring and total revenue growth over that period of time.

當然，阿文德。我可以拿那個。我認為，如果您考慮在 GDP 增長的正常化環境中，您可能會得到一個點，在客戶勞動力水平正常的時期可能是 2 個點。顯然，在過去 3 年左右的時間裡，你看到了雙向的重大變動。我認為，如果你回到大流行病，我們談到了對 20 財年經常性收入的高達兩位數的影響，這些影響一直延續到 21 財年。再一次，我想如果你看看我們從 21 年春天到 2022 年夏天的情況，我們幾乎每個月都會看到連續的改進。當我們談到這些季度中的每一個時，這是一個合理的順風，你已經看到在那段時間裡經常性和總收入的超額增長。

To Toby's point earlier, as you think about the back half of the fiscal year, year-over-year, there's still a little bit of a tailwind here in the third quarter. As you get to the fourth quarter, I think we've really fully anniversaried all of the client workforce levels improvements that we've seen over the last handful of years. And you get back to that kind of low 20s or so recurring revenue growth. And as we sit here and think about fiscal '24, continue to have a lot of confidence around go-to-market motion and our ability to continue to drive 20% plus as we get back to that more normalized employment environment.

對於托比早些時候的觀點，當你考慮本財年的後半段時，與去年同期相比，第三季度這裡仍有一點順風。當你進入第四季度時，我認為我們已經真正完全紀念了我們在過去幾年中看到的所有客戶勞動力水平的提高。你又回到了那種低 20 多歲左右的經常性收入增長。當我們坐在這裡思考 24 財年時，繼續對進入市場的行動充滿信心，以及隨著我們回到更加正常的就業環境，我們有能力繼續推動 20% 以上的增長。

Our next question comes from the line of Alex Zukin with Wolfe Research.

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

Thanks for taking the question. A lot of them have been asked, but I guess one of the constant questions we get from investors, and I'm sure you get too is you look at the headlines, you look at commentary, particularly about white collar recession or employment levels at some point starting to kind of tick in the other direction from the record strength we've had here.

感謝您提出問題。他們中的很多人都被問到了，但我想我們從投資者那裡得到的一個不變的問題是，我相信你也會看到頭條新聞，你看評論，特別是關於白領衰退或就業水平的問題從我們這裡的創紀錄強度來看，有些點開始朝著另一個方向發展。

Samad kind of asked this question about your Q4 numbers, around conservatism. It sounds like you're not seeing any change in employment levels in your customers, you're not even really seeing any change in sales cycle times in your customer base for new logos.

薩馬德問了這個關於你的第四季度數字的問題，圍繞保守主義。聽起來您沒有看到客戶的就業水平有任何變化，您甚至沒有真正看到客戶群中新徽標的銷售週期時間有任何變化。

I guess, how -- is there a reason that you guys have been able to decipher as to why that is or when you would be anticipating seeing that impact from the macro economy? Or is there just a level of resiliency either from a share market perspective or type of client perspective that you serve that gives you that resiliency on the recurring revenue line. And maybe it's also just the mix of SMB versus larger customers that you're serving in your business. But would love to get some -- just further clarity on that.

我想，你們有沒有理由能夠破譯為什麼會這樣，或者你們預計什麼時候會看到宏觀經濟的影響？或者從股票市場的角度或您所服務的客戶類型的角度來看，是否存在一定程度的彈性，使您在經常性收入線上具有這種彈性。也許它也只是您在業務中服務的 SMB 與大型客戶的組合。但很想得到一些——只是進一步澄清這一點。

Sure. So obviously, been in this industry, really my whole career, I've seen the different cycles. But the interesting part, I think, to me about this cycle is you still have relatively low unemployment levels. And certainly, the headline news, there are people reducing their workforces, but there are still a number of jobs out there, and we're still in a growth environment. There's been a lot of lumpiness post COVID. The other thing I would say is hybrid work, people moving from 1 industry to the next, there's a lot of resilience in terms of being able to move from 1 job to the next, being able to work from home anywhere in the country.

當然。很明顯，在這個行業，真的是我的整個職業生涯中，我看到了不同的周期。但我認為，對我來說，關於這個週期的有趣部分是你的失業率仍然相對較低。當然，頭條新聞是，有人在裁員，但仍有許多工作崗位，我們仍處於增長環境中。 COVID 後出現了很多腫塊。我要說的另一件事是混合工作，人們從一個行業轉到另一個行業，在能夠從一份工作轉到下一份工作方面有很大的彈性，能夠在國內任何地方工作。

And so I think the labor force can react relatively quickly as we've seen these maybe shifts in demand, as you said, from white-collar jobs. And overall, when I look at the longer-term history is GDP is growing a little bit, employment usually trails at a little bit from a percentage basis. If it's declining a little bit, it's also going to decline trailing GDP. And sometimes unemployment numbers can take a couple of months before you see it all the way through. But if you think of all those headlines, we've been flat for several months in terms of employment levels. And that, frankly, makes sense to me based on what I've seen historically.

因此，我認為勞動力可以相對迅速地做出反應，因為我們已經看到這些需求可能發生變化，正如您所說，來自白領工作。總的來說，當我回顧長期歷史時，GDP 略有增長，就業率通常略微落後於百分比。如果它稍微下降一點，它也會隨著 GDP 的下降而下降。有時失業數字可能需要幾個月的時間才能完全看到。但如果你想想所有這些頭條新聞，我們的就業水平已經連續幾個月持平。坦率地說，根據我的歷史所見，這對我來說很有意義。

Now that doesn't mean that, that's certainly going to continue. We have forecasted kind of a flat environment to prepare our guidance for the rest of the year. But I think there's a fair amount of resilience in this type of employment environment where people can move from one job to the next relatively quickly because of the rise of remote work.

現在這並不意味著，這肯定會繼續下去。我們已經預測了一種平坦的環境，以準備今年剩餘時間的指導。但我認為在這種類型的就業環境中存在相當大的彈性，由於遠程工作的興起，人們可以相對較快地從一份工作轉到另一份工作。

That's actually a really unique and great explanation. It's super simple and super interesting that the labor mobility, effectively if one of your clients loses somebody, they'll pop right up at one of your other clients. I guess 1 other question I have is, as I look at the OpEx umbrella, it does look like for the first kind of -- this quarter specifically, your growth in sales and marketing is meaningfully ahead of the recurring revenue growth on a year-over-year basis, which I guess, to some extent, makes sense because it's aligned with your total revenue growth.

這實際上是一個非常獨特和偉大的解釋。勞動力流動非常簡單也非常有趣，如果你的一個客戶失去了某個人，他們就會立即出現在你的另一個客戶身上。我想我還有一個問題是，當我查看 OpEx 保護傘時，它看起來確實是第一種——特別是本季度，你的銷售和營銷增長明顯領先於一年的經常性收入增長——超過一年的基礎，我想，在某種程度上，這是有道理的，因為它與你的總收入增長一致。

What do we -- when you think about your ability to kind of almost not overinvest, but invest ahead at a level that maybe you haven't been able to invest in the last couple of years, what are you -- if we think about reaping the rewards of that kind of front-loaded sales and marketing investment that you're able to make in the first half of this year, is it -- do you anticipate it kind of driving greater growth durability, greater growth rate when -- particularly when we start anniversary-ing some of those tougher comps.

我們怎麼辦 - 當你想到你的能力幾乎不會過度投資，而是在過去幾年你可能無法投資的水平上提前投資時，你是什麼 - 如果我們考慮收穫今年上半年你能夠進行的那種前期銷售和營銷投資的回報，是嗎 - 你是否預計它會推動更大的增長持久性，更高的增長率 -特別是當我們開始對一些更難的組合進行週年紀念時。

Yes. I mean I think what you've heard us say over -- pretty consistently over the last handful of quarters is we felt very good about the demand environment. We continue to. We felt really good about the growth opportunity in front of us based on having relatively low share of a very large market. I think what the message has been is, we would continue to invest in -- certainly in sales and marketing, in sales headcount and in marketing and in channels, a lot of that being in the form of digital marketing, support for our channel initiatives, which continue to drive 25% plus of new business to us.

是的。我的意思是，我認為你聽到我們所說的——在過去的幾個季度裡，我們一直對需求環境感到非常滿意。我們繼續。基於在一個非常大的市場中佔有相對較低的份額，我們對擺在我們面前的增長機會感到非常高興。我認為傳達的信息是，我們將繼續投資——當然是在銷售和營銷、銷售人員數量、營銷和渠道方面，其中很多以數字營銷的形式出現，支持我們的渠道計劃, 這繼續為我們帶來 25% 以上的新業務。

And I think what you're seeing in the first half of this year is the continued progress and the continued sort of motion against that strategy. And I think we came into this fiscal year feeling really good about our staffing levels from a sales headcount perspective, and I think our strategy on an ongoing basis has been to continue to add talent in those areas where we can, given that from an overall business perspective, sales and marketing is certainly along with product, one of the big growth-driving areas of the business. And so I think you've just seen us continue to incrementally invest there in the first half of the year, pretty consistent with how we've described it historically.

我認為你在今年上半年看到的是持續的進展和反對該戰略的持續動議。而且我認為從銷售人員的角度來看，我們進入本財年時對我們的人員配置水平感覺非常好，而且我認為我們的持續戰略是繼續在我們可以的領域增加人才，因為從整體來看從業務角度來看，銷售和營銷肯定與產品一起成為業務增長的主要驅動領域之一。所以我認為你剛剛看到我們在今年上半年繼續在那裡進行增量投資，這與我們歷史上描述的方式非常一致。

And Alex, I'd just add there, if you think about our financial playbook, so to speak, is -- and we've talked about this over several years, we've talked about consistently investing where we can in what Toby just referenced. Sales and marketing to drive continued revenue growth or R&D, which you also see this fiscal year. And offsetting that, you're seeing the scale and leverage across the areas that we focused on historically and continue to do so. So really strong gross margin leverage this quarter, year-to-date, really strong G&A leverage this quarter and year-to-date. And I think if you add all that together, it allows us to drive in this quarter, over 400 basis points of leverage from an adjusted EBITDA perspective while investing incrementally, both in sales and marketing and R&D. So I feel really good about that combination in addition to the strong revenue growth we're driving.

亞歷克斯，我想補充一點，如果你考慮一下我們的財務手冊，可以這麼說，我們已經討論了好幾年，我們一直在討論在力所能及的地方持續投資於托比剛剛做的事情參考。銷售和營銷以推動持續的收入增長或研發，您也會在本財年看到這一點。並且抵消了這一點，你看到了我們過去關注並繼續關注的領域的規模和影響力。本季度，年初至今，毛利率非常強勁，本季度和年初至今，G＆A 槓桿非常強勁。而且我認為，如果將所有這些加在一起，它使我們能夠在本季度從調整後的 EBITDA 角度推動超過 400 個基點的槓桿作用，同時在銷售和營銷以及研發方面進行增量投資。因此，除了我們正在推動的強勁收入增長之外，我對這種組合感覺非常好。

Our next question comes from the line of Siti P with Mizuho Group.

我們的下一個問題來自瑞穗集團的 Siti P。

So you talked about this flat employee growth within your platform. So when you look at the incremental recurring revenue, what percentage of that incremental revenue come from new customer versus cross-selling new products like increasing PEPM within your installed base?

所以你談到了你平台內的這種持平的員工增長。因此，當您查看增量經常性收入時，新客戶與交叉銷售新產品（例如增加安裝基礎中的 PEPM）相比，增量收入中的百分比是多少？

The vast majority of what you see from a revenue growth perspective is attributable to new logo acquisition. So it's the result of selling new clients. We do -- as we've talked about, see certainly the opportunity to sell back into the customer base, that is, on a relative basis, still a smaller part of our overall revenue, still a smaller part of new sales and that continues to be the case through the first half of the year and certainly in this quarter. It's important to us. We certainly continue to invest in it. And the more that we have introduced new products over time, certainly the bigger that opportunity has gotten, and we've pursued it for sure but still the harder the go-to-market motion, the bigger part of it is new logo acquisition.

從收入增長的角度來看，您看到的絕大多數情況都歸因於新徽標的收購。所以這是銷售新客戶的結果。我們確實 - 正如我們所討論的那樣，肯定會看到向客戶群回售的機會，也就是說，相對而言，仍然占我們總收入的一小部分，仍然是新銷售額的一小部分，而且這種情況仍在繼續整個上半年都是如此，當然在本季度也是如此。這對我們很重要。我們當然會繼續投資它。隨著時間的推移，我們推出的新產品越多，機會當然就越大，我們肯定會追求它，但進入市場的行動仍然越困難，其中更大的一部分是新標誌的收購。

Great. And then a follow-up to earlier questions in terms of employee -- client employment growth. You have exposure to multiple vertical industry, including tech and financial services, some of this white collar industries. So what's your mix? Like what's your exposure to tech and white collar industry?

偉大的。然後跟進之前關於員工的問題——客戶就業增長。你接觸過多個垂直行業，包括科技和金融服務，其中一些是白領行業。那麼你的組合是什麼？比如你對科技和白領行業有什麼了解？

Yes, Siti, I think as you think about our 30,000-plus clients, no client representing nearly anywhere close to 1% of revenue. And to your point, I think the breadth of our clients across various industries and geographies is pretty significant. There's nothing particular I'd call out as far as being over or under indexed to tech or any other particular sector. I think our average client having 100-plus employees, that composition would look pretty similar to the SMB space across the U.S. There's nothing that I'd call out that is of particular note.

是的，Siti，我認為當你想到我們的 30,000 多個客戶時，幾乎沒有客戶代表接近收入的 1%。就你的觀點而言，我認為我們客戶在各個行業和地區的廣度非常重要。就科技或任何其他特定行業的指數超過或低於指數而言，我沒有什麼特別要說的。我認為我們的普通客戶擁有 100 多名員工，這種構成看起來與美國各地的 SMB 空間非常相似。沒有什麼特別值得一提的。

Our next question comes from the line of Robert Simmons with D.A. Davidson.

我們的下一個問題來自 Robert Simmons with D.A.戴維森。

I was wondering if you talk about client retention. How has that held up so far this year? And what have you built into your fiscal year guidance?

我想知道你是否談論客戶保留。今年到目前為止情況如何？您在財政年度指南中加入了什麼？

Yes. So far, our retention rates have continued to be strong. I mean we have talked over the last few quarters consistent with other sort of data points in the industry about us seeing the highest retention rate really that we've seen over the last handful of years, that continues to be the case. And I think overall, I would say January is the busiest time in the industry. It's the busiest time for us as a company, and I think we're really happy with how we came through January from an overall operations and an overall service perspective. And I think the high level of client service that we've provided through the course of a pretty difficult time for our clients during the pandemic has been a huge factor in us differentiating on service and being able to serve our clients effectively when they needed it. And I think that's been a key contributor to us still being able to see record-high retention rates from a last 5-year period perspective.

是的。到目前為止，我們的保留率一直保持強勁。我的意思是，我們在過去幾個季度中討論過與行業中其他類型的數據點一致的情況，即我們看到了過去幾年中我們真正看到的最高保留率，這種情況仍然存在。而且我認為總體而言，我會說一月份是該行業最繁忙的時期。這是我們公司最忙碌的時期，我認為我們對從整體運營和整體服務角度來看一月份的表現非常滿意。而且我認為我們在大流行期間為客戶提供的相當困難的時期內提供的高水平客戶服務是我們區分服務並能夠在他們需要時有效地為客戶提供服務的一個重要因素.而且我認為這是我們仍然能夠從過去 5 年的角度來看創紀錄的高保留率的關鍵因素。

Our next question comes from the line of Jason Celino with KeyBanc.

我們的下一個問題來自 Jason Celino 與 KeyBanc 的對話。

If I were to kind of summarize things, it sounds like the demand environment is still pretty strong. You're executing really well. I know you guide to kind of what's in front of you. But when we think about visibility how would you say your visibility is today and how it's changed versus maybe pre-COVID?

如果我要總結一下，聽起來需求環境仍然很強勁。你執行得很好。我知道你會引導你看到你面前的東西。但是，當我們考慮可見性時，您會怎麼說您今天的可見性以及它與 COVID 之前相比有何變化？

I'm not sure.

我不知道。

Sorry, Toby, I jumped ahead of you there. Let me start. I would just start by saying from a visibility perspective, our model being recurring revenue and the fact that a big part of our revenue is retaining the existing customers. And then you overlay new customers and new recurring revenue as the year goes along. So think about it as we go along in that year, we get greater visibility to only 2 quarters left. Obviously, January being a huge part of our selling season. At this stage, we have better visibility than we certainly did last quarter and significant visibility because we know what our retention rates are and we've got pretty decent look into the pipeline of new business. And so it's just one of the benefits, I think, of this business model that we've got. I don't think, though, like at the size and scale that we're at now, versus maybe 3 or 4 years ago pre-COVID, there's a different level of visibility. I think it's just more inherent in the business model and where we're driving the revenue from.

抱歉，托比，我搶在你前面了。讓我開始吧。我只想從可見性的角度開始說，我們的模式是經常性收入，而且我們收入的很大一部分是在留住現有客戶。然後隨著時間的流逝，您會覆蓋新客戶和新的經常性收入。因此，隨著我們在那一年的進行，請考慮一下，我們對僅剩 2 個季度的可見度更高。顯然，一月份是我們銷售季節的重要組成部分。在這個階段，我們比上個季度有更好的知名度和顯著的知名度，因為我們知道我們的保留率是多少，並且我們對新業務的管道有相當不錯的了解。因此，我認為這只是我們擁有的這種商業模式的好處之一。不過，我不認為，就我們現在的規模和規模而言，與 3 或 4 年前 COVID 之前的情況相比，可見性水平有所不同。我認為這在商業模式和我們推動收入的地方更為固有。

Ladies and gentlemen, that concludes our Q&A session. I would now like to turn the call back to Steve for closing remarks.

女士們，先生們，我們的問答環節到此結束。我現在想把電話轉回給史蒂夫，讓他發表結束語。

Yes. I just want to take a quick moment to thank everyone at Paylocity for all their hard work and effort over a very busy year-end. And of course, thank all of you for your interest in Paylocity. Everyone, have a great evening.

是的。我只想花點時間感謝 Paylocity 的每個人，感謝他們在非常忙碌的年終期間所做的所有辛勤工作和努力。當然，感謝大家對 Paylocity 的關注。大家晚上好。

Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

女士們，先生們，今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。