Paylocity Holding Corp (PCTY) 2024 Q2 法說會逐字稿

Hello, and thank you for standing by. Welcome to Paylocity Holdings Corporation Second Quarter 2024 Fiscal Year Results Conference Call. (Operator Instructions) I would now like to hand the conference over to Ryan Glenn. Sir, you may begin.

您好，感謝您的支持。歡迎參加 Paylocity Holdings Corporation 2024 財年第二季業績電話會議。 （操作員指示）我現在想將會議交給 Ryan Glenn。先生，您可以開始了。

Good afternoon, and welcome to Paylocity's earnings results call for the second quarter of fiscal '24, which ended on December 31, 2023. 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 公佈的 24 財年第二季（截至 2023 年 12 月 31 日）的獲利結果。我是財務長 Ryan Glenn。今天參加電話會議的還有 Paylocity 聯合執行長 Steve Beauchamp 和 Toby Williams。

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.

今天，我們將討論收市後發布的新聞稿中公佈的結果。未來 45 天內，我們將在我們網站的「投資者關係」標籤下提供本次電話會議的網路直播重播。

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. 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.

在開始之前，我們必須提醒您，今天的言論，包括問答環節中的陳述，都包含前瞻性陳述。這些陳述受到許多重要因素、風險和不確定性的影響，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。此外，這些陳述僅基於當前訊息，並受到風險和不確定性的影響，可能導致實際結果與前瞻性陳述中預測的結果有重大差異。如需了解更多信息，請參閱我們向美國證券交易委員會提交的文件，以了解其中包含的風險因素和其他披露資訊。我們不承擔更新任何前瞻性陳述的責任。

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，在今天的電話會議中，我們將提及某些非公認會計準則財務指標。我們認為，非GAAP 衡量標準更能代表我們內部衡量業務的方式，目前我們的新聞稿中有詳細說明這些結果的核對錶，該新聞稿位於我們網站paylocity.com 的「投資者關係」標籤下，並已歸檔與證券交易委員會。

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 財務指標與可直接比較的 GAAP 財務指標進行核對，因為如果不付出不合理的努力，目前無法獲得完成核對所需的資訊。

In regards to our upcoming conference schedule, I will be attending the Wolfe Conference in New York on February 27. And Toby and I will be attending the Stifel Executive Summit in Florida in early March and the Raymond James Institutional Investors Conference in Orlando on March 6. 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2 月27 日在紐約舉行的沃爾夫會議。托比和我將參加3 月初在佛羅裡達州舉行的Stifel 高管峰會和3 月6 日在奧蘭多舉行的雷蒙德詹姆斯機構投資者會議. 如果您想安排時間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.

接下來，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 '24 earnings call. Our solid results continued in Q2 of fiscal '24, with total revenue growth of 20% as our differentiated value proposition of providing the most modern software in the industry continues to resonate in the marketplace. Recurring and other revenue was $298.4 million or 16% growth over Q2 of last year.

謝謝 Ryan，也謝謝大家參加我們的 24 財年第二季財報電話會議。我們在 24 財年第二季繼續取得穩健的業績，總收入成長了 20%，因為我們提供業界最現代軟體的差異化價值主張繼續在市場上引起共鳴。經常性及其他收入為 2.984 億美元，比去年第二季成長 16%。

We continue to receive positive client feedback on our modern product suite, including newer products such as Advanced Scheduling, Learning Management, Rewards and Recognition and Employee Voice. Specifically, a client in the automotive industry with over 1,000 employees highlighted how the ability to create custom recognition awards that are shareable via the mobile app is positively impacting employee sentiment by making it easier for employees to celebrate one another in new ways.

我們繼續收到客戶對我們的現代產品套件的正面回饋，包括高級日程安排、學習管理、獎勵和認可以及員工之聲等新產品。具體來說，一位擁有 1,000 多名員工的汽車行業客戶強調，創建可透過行動應用程式共享的自訂表彰獎勵的能力如何透過讓員工更輕鬆地以新方式相互慶祝來積極影響員工情緒。

Similarly, a retail client with 900 employees has created over 200 custom trainings with our Learning Management module to better connect employees to the company's vision, mission and core values. Additionally, we continue to invest and build upon our AI leadership in the HCM industry with the launch of AI-driven personalized learning plans, optimized workforce schedules and embedded generative AI recommendation within Rewards and Recognition, Employee Voice and Community.

同樣，一家擁有 900 名員工的零售客戶使用我們的學習管理模組創建了 200 多項客製化培訓，以更好地將員工與公司的願景、使命和核心價值聯繫起來。此外，我們繼續投資並鞏固我們在 HCM 行業的人工智慧領導地位，推出人工智慧驅動的個人化學習計畫、優化的員工時間表以及在獎勵和認可、員工聲音和社群中嵌入生成式人工智慧推薦。

Building upon the generative AI-driven announcement and job description released in Community and Recruiting last calendar year, these new features help to further improve business efficiency, communication and the end user experience for our clients. While we're pleased with our Q2 results, the macro environment has become increasingly challenging over the last few months as employment levels on the platform once again moderated versus our expectations and presented an incremental headwind to results in the quarter and to fiscal '24 guidance.

基於去年社群和招募中發布的生成式人工智慧驅動公告和職位描述，這些新功能有助於進一步提高客戶的業務效率、溝通和最終用戶體驗。雖然我們對第二季的業績感到滿意，但過去幾個月宏觀環境變得越來越具有挑戰性，因為平台上的就業水平再次低於我們的預期，並對本季度的業績和24 財年的指導帶來了增量阻力。

Despite the macro challenges, we continue to invest in our product suite and this commitment to product innovation continues to be recognized by third parties as Paylocity was recently awarded a Bronze Brandon Hall Group Excellence and Technology Award in the Best Advance in Employee Engagement Technology category and named as overall leader in 10 HCM product categories in G2's Winter 2023 Grid Reports, marking the 21st consecutive quarter in which Paylocity achieved leader ranking.

儘管面臨宏觀挑戰，我們仍繼續投資於我們的產品套件，這種對產品創新的承諾繼續得到第三方的認可，因為Paylocity 最近榮獲員工敬業度技術類別最佳進步銅牌布蘭登霍爾集團卓越技術獎項在 G2 2023 年冬季網格報告中，Paylocity 被評為 10 個 HCM 產品類別的整體領導者，這標誌著 Paylocity 連續 21 個季度獲得領導者排名。

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，以提供有關本季度的更多資訊。

Thanks, Steve. This is a very busy time of year for all of our teams across the business 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 on the implementation of new clients. I want to thank all of our employees for their hard work and dedication to our clients during this very busy year-end season.

謝謝，史蒂夫。對於我們整個業務部門的所有團隊來說，這是一年中非常繁忙的時期，因為他們與客戶密切合作，年終處理工資單、W-2、1095 和向聯邦州和地方機構提交的年度稅表文件，並實施新客戶。我要感謝我們所有的員工在這個非常繁忙的年終季節的辛勤工作和對客戶的奉獻。

Building on Steve's comments around product innovation, in early December, we announced the acquisition of Trace, which enables organizations to manage head count plans, forecast head count budgets and approve head count changes. When combined with the valuable employee record data in our platform, we believe Trace's head count planning capabilities will help our clients improve decision-making and drive faster execution. From a financial perspective, Trace will not materially contribute to revenue or impact our overall margin profile in fiscal '24.

根據 Steve 關於產品創新的評論，我們在 12 月初宣布收購 Trace，該公司使組織能夠管理人員數量計劃、預測人員數量預算並批准人員數量變更。當與我們平台中有價值的員工記錄資料相結合時，我們相信 Trace 的人員統計規劃功能將幫助我們的客戶改善決策並推動更快的執行。從財務角度來看，Trace 不會對我們 24 財年的營收做出重大貢獻，也不會影響我們的整體獲利狀況。

With respect to our go-to-market efforts, we've realized significant success in the upper end of our target market over the last several fiscal years, and we have invested to grow the size of that team. To date, in fiscal '24, we've seen sales cycles of upmarket take longer, and it has taken longer for our new reps to ramp up, which has pressured productivity and new sales volumes in January and has weighed on fiscal '24 growth. That said, we remain confident in our sales team and go-to-market motion, and we are pleased by our top of funnel activity the growth of the upmarket pipeline and our ability to drive product differentiation of market.

在我們進入市場的努力方面，我們在過去的幾個財年中在目標市場的高端取得了巨大的成功，並且我們已經投資擴大了團隊的規模。到目前為止，在24 財年，我們看到高端市場的銷售週期需要更長的時間，而且我們的新銷售代表也需要更長的時間才能提升，這對1 月份的生產力和新銷量造成壓力，並影響了24 財年的成長。也就是說，我們對我們的銷售團隊和進入市場的行動仍然充滿信心，我們對我們的漏斗頂部活動、高端產品線的成長以及我們推動市場產品差異化的能力感到高興。

We will be focusing the rest of this year and going into next year on driving a higher level of go-to-market productivity and driving execution upmarket. We have remained focused on our referral channels and have been pleased with the consistency of our referrals, which once again delivered more than 25% of our new business in Q2.

我們將在今年剩餘時間和明年重點關注提高進入市場的生產力並推動高端市場的執行。我們仍然專注於我們的推薦管道，並對我們推薦的一致性感到滿意，這再次為我們第二季的新業務帶來了超過 25% 的份額。

We have also continued to drive leverage across the business as we grow and scale with focus on both EBITDA and free cash flow leverage this quarter and this fiscal year. The strong culture at Paylocity continues to be recognized externally as we recently were named to Newsweek's America's Greatest Workplaces for Diversity in 2024 and Built Ins list of the 100 Best Large Companies to Work For in Chicago for 2023.

隨著我們的發展和規模擴大，我們也繼續提高整個業務的槓桿率，本季和本財年將重點放在 EBITDA 和自由現金流槓桿率。 Paylocity 的強大文化繼續得到外部認可，我們最近被《新聞周刊》評為 2024 年美國最偉大的多元化工作場所，併入選“Built Ins”2023 年芝加哥 100 家最佳工作大型公司名單。

I would now like to pass the call to Ryan to review the financial results in detail and provide updated fiscal '24 guidance.

我現在想轉達 Ryan 的電話，要求其詳細審查財務業績並提供更新的 24 財年指導。

Thanks, Toby. Total revenue for the second quarter was $326.4 million, an increase of 20%, with recurring and other revenues up 16% from the same period last year and above the midpoint of our guidance. Our adjusted gross profit was 72.7% for Q2 as we continue to focus on scaling our operational costs while maintaining industry-leading service levels. We continue to invest in research and development and to understand our overall investment in R&D is important to both combine what we expense and what we capitalize. On a dollar basis, our year-over-year investment in total R&D increased by 27% when compared to the second quarter of fiscal '23 and as we continue to build out the Paylocity platform to serve the needs of the modern workforce.

謝謝，托比。第二季總營收為 3.264 億美元，成長 20%，經常性收入和其他收入比去年同期成長 16%，高於我們指引的中點。我們第二季的調整後毛利為 72.7%，因為我們持續專注於擴大營運成本，同時維持業界領先的服務水準。我們繼續投資於研發，並了解我們在研發方面的整體投資對於結合我們的支出和資本化非常重要。以美元計算，與 2023 財年第二季相比，我們的總研發投資年增了 27%，我們繼續建立 Paylocity 平台來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 21.3% of revenue in the second quarter versus 23.7% in the second quarter of last year. On a non-GAAP basis, G&A costs were 9.1% of revenue in the second quarter versus 11.3% in the same period last year, and we remain focused on consistently leveraging our G&A expenses on an annual basis. Our adjusted EBITDA for the second quarter was $112.6 million or 34.5% margin and exceeded the top end of our guidance by $9.6 million and represented 620 basis points of leverage versus Q2 of fiscal '23. 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.

關於我們的上市活動。以非公認會計原則計算，第二季銷售和行銷費用佔收入的 21.3%，而去年第二季為 23.7%。以非 GAAP 計算，第二季的 G&A 成本佔營收的 9.1%，而去年同期為 11.3%，我們仍致力於持續利用我們的年度 G&A 費用。我們第二季調整後的 EBITDA 為 1.126 億美元，利潤率為 34.5%，超出我們指導上限 960 萬美元，與 23 財年第二季相比，槓桿率高出 620 個基點。我們仍然對我們能夠透過槓桿和調整後的毛利率、調整後的 EBITDA 和自由現金流來推動獲利能力的提高感到滿意，同時保持強勁的收入成長。

Briefly covering our GAAP results. For Q2, gross profit was $219 million. Operating income was $49.7 million and net income was $38.1 million. In regard to the balance sheet, we ended the quarter with cash and cash equivalents of $366.9 million and no debt outstanding. In regard to client-held funds and interest income, our average daily balance of client funds was $2.4 billion in Q2. We are estimating the average daily balance will be approximately $2.9 billion in Q3 with an average annual yield of approximately 450 basis points.

簡要介紹我們的 GAAP 結果。第二季毛利為 2.19 億美元。營業收入為 4,970 萬美元，淨利為 3,810 萬美元。在資產負債表方面，本季末我們的現金和現金等價物為 3.669 億美元，沒有未償債務。從客戶持有資金和利息收入來看，第二季我們的客戶資金日均餘額為24億美元。我們預計第三季日均餘額約為 29 億美元，年均收益率約為 450 個基點。

On a full year basis, we are estimating the average daily balance will be approximately $2.5 billion to $2.6 billion with an average yield of approximately 445 to 450 basis points. Please note, our guidance includes the impact of a contemplated 25 basis point decline in the Fed funds rate in May.

以全年為基礎，我們預計日均餘額約為 25 億至 26 億美元，平均收益率約為 445 至 450 個基點。請注意，我們的指引包括 5 月份聯邦基金利率預期下降 25 個基點的影響。

In regard to client workforce levels, year-over-year employees on the platform growth came in below our expectations in Q2 resulting in an incremental headwind to the quarter and fiscal year. Given recent macroeconomic trends, our updated guidance for the back half of fiscal '24 includes further moderation in client workforce levels through the remainder of the fiscal year.

就客戶員工水準而言，第二季平台員工的年成長率低於我們的預期，導致本季和財年面臨增量阻力。鑑於最近的宏觀經濟趨勢，我們對 24 財年後半段的最新指導包括在本財年剩餘時間內進一步調整客戶勞動力水準。

Finally, I'd like to provide our financial guidance for Q3 and full fiscal '24. For the third quarter of fiscal '24, total revenue is expected to be in the range of $395 million to $399 million or approximately 17% growth over third quarter fiscal '23 total revenue. And adjusted EBITDA is expected to be in the range of $153.5 million to $156.5 million. And for fiscal year '24, total revenue is expected to be in the range of $1.384 billion to $1.389 billion or approximately 18% growth over fiscal '23. And adjusted EBITDA is expected to be in the range of $474 million to $478 million, which represents 240 basis points of leverage over fiscal '23.

最後，我想提供我們第三季和整個 24 財年的財務指導。 24財年第三季的總營收預計將在3.95億美元至3.99億美元之間，比23財年第三季的總營收成長約17%。調整後的 EBITDA 預計在 1.535 億美元至 1.565 億美元之間。 24 財年的總營收預計將在 13.84 億美元至 13.89 億美元之間，比 23 財年成長約 18%。調整後的 EBITDA 預計將在 4.74 億美元至 4.78 億美元之間，相當於 23 財年的槓桿率達到 240 個基點。

Operator, we are now ready for questions.

接線員，我們現在準備好提問了。

(Operator Instructions) Our first question comes from the line of Scott Berg with Needham.

（操作員說明）我們的第一個問題來自 Scott Berg 和 Needham 的對話。

This is Josh on for Scott. Just starting off here, what are you seeing in terms of unit growth or any potential churn with customers at the low end of the market? One of your public competitors noted an elevated level of churn with customers under 50 employees. Are you seeing anything there? Or is it really simply just a matter of customers across the board regardless of size, lowering their employment levels across all customer segments?

這是喬許替補斯科特。從這裡開始，您對低端市場的單位成長或潛在客戶流失有何看法？您的一位公開競爭對手指出，員工人數少於 50 人的客戶流動率較高。你在那裡看到什麼了嗎？或者這真的只是一個全面的客戶問題，無論規模大小，都會降低所有客戶群的就業水準？

Yes. I think the impact that we're seeing is our current customers are not necessarily getting the growth of employees on the platform that you would typically see in this type of economic environment. And so we certainly factored that in, in terms of what we've seen already this year and then assumed that was going to continue to be the case for the back half of the year. So that's the headwind that I think Ryan referred to in the script.

是的。我認為我們看到的影響是我們目前的客戶不一定能在這種經濟環境中通常看到的平台上獲得員工的成長。因此，根據我們今年已經看到的情況，我們當然考慮到了這一點，然後假設今年下半年情況將繼續如此。我認為這就是瑞安在劇本中提到的逆風。

You typically see customers under 50 employees, they naturally turn over at a higher rate just because there's more out-of-business losses. That trend is probably something that's always been the case in our industry. And so if you were growing that segment more and you were losing more there, that probably just is the nature of the business under 50 market. I don't think we've seen anything in that space that would be any different than before. And I think an economy that's growing and fairly consistent in terms of employment levels, nothing to call out in that space.

您通常會看到員工數量在 50 人以下的客戶，他們的流失率自然會更高，因為營業外損失更多。這種趨勢可能是我們行業一直存在的情況。因此，如果你在該細分市場上成長得更多，但在那裡卻虧損得更多，這可能是 50 歲以下市場的業務本質。我認為我們在那個空間中沒有看到任何與以前不同的東西。我認為經濟正在成長且就業水準相當穩定，在這個領域沒有什麼值得稱讚的。

Got it. And then just a follow-up. Are you seeing -- is there going to be any year-over-year headwinds related to forms revenue in the March quarter in terms of number of employees that were active on the platform on a year-over-year basis?

知道了。然後只是後續行動。您是否發現，就平台上活躍員工數量而言，三月季度的表格收入是否會出現年比逆風？

Sure. So I think we obviously -- where we are in the quarter, have a good idea of where form revenue is trending for Q3. So we've taken that into account as we've guided for Q3 and for fiscal '24.

當然。因此，我認為我們顯然 - 我們在本季度所處的位置，對第三季度的收入趨勢有很好的了解。因此，我們在第三季和 24 財年的指導中已考慮到這一點。

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

我們的下一個問題來自 Brad Reback 和 Stifel 的對話。

Toby, can you spend a couple of minutes reviewing some of your commentary on the sales force, the close rates, up market. How much of that you feel is economic versus execution?

托比，您能花幾分鐘回顧一下您對銷售人員、成交價格、高端市場的一些評論嗎？您認為經濟與執行的關係有多少？

Yes, sure. Thanks, Brad. Yes, I think if you go back over probably the last, call it, 18 months to 2 years, we've talked about getting a traction upmarket and we've talked about having incremental success there from a sales perspective. And I think that's been the case. And I think we've also invested more across the business and in go-to-market to support the growth that we've seen there. And as we've called out -- I think, last quarter we called out that we were seeing slightly slower sales cycles, I think we saw the same thing this quarter. And I think that was the reason why we put it in the script.

是的，當然。謝謝，布拉德。是的，我想如果你回顧過去，或者說，18 個月到 2 年，我們已經討論過如何吸引高端市場，並且我們已經討論過從銷售角度取得漸進的成功。我認為情況就是如此。我認為我們還在整個業務和進入市場方面進行了更多投資，以支持我們在那裡看到的成長。正如我們所指出的，我認為上個季度我們指出銷售週期略有放緩，我認為本季我們也看到了相同的情況。我認為這就是我們將其放入劇本的原因。

I think it's hard to take a part with any precision, what part of that because I know others in the space have talked about this, too, and you've on and off heard it in the broader software category in terms of upmarket sales cycles being longer. It's hard to take a part how much of that is attributable to the macro. I don't think the macro helps. But I think -- part of it is, I think -- as we've sort of gotten further and further into the upmarket, I think we certainly have an opportunity to execute better. And I think that will be a focus as we look at the rest of this fiscal year to be able to drive productivity and I think that will carry into next fiscal, too.

我認為很難準確地參與其中，因為我知道該領域的其他人也談論過這一點，並且您在更廣泛的軟體類別中的高端銷售週期方面時斷時續地聽到它更長。很難判斷其中有多少是宏觀因素造成的。我認為宏沒有幫助。但我認為——我認為部分原因是——隨著我們越來越深入高端市場，我認為我們當然有機會更好地執行。我認為，當我們著眼於本財年剩餘時間以提高生產力時，這將是一個焦點，我認為這也將延續到下一個財年。

I think the only thing I would add to that, Brad, is one of the things that we are seeing is a pretty nice build in the pipeline upmarket. We didn't see all that come through in January and obviously had to factor that into the guidance. But we definitely see a fair amount of activity there. And so that certainly allows us to remain optimistic about the success in the market in terms of the clients that we're selling, the response we're getting from prospects in the market and the opportunity going forward.

布拉德，我認為我唯一要補充的是，我們所看到的事情之一是在高端市場中的一個非常好的構建。我們沒有看到一月份發生的所有事情，顯然必須將其納入指導中。但我們確實看到那裡有相當多的活動。因此，這無疑讓我們對我們所銷售的客戶、我們從市場前景中得到的反應以及未來的機會在市場上取得的成功保持樂觀。

And can you just remind us what upmarket means for you? Is that north of 500 north of 1,000?

您能提醒我們高端市場對您意味著什麼嗎？是 500 以內還是 1,000 以內嗎？

Yes. I would say it's north of 500 employees would be how we define that kind of internally, yes.

是的。我想說的是，我們內部對這種員工的定義是“超過 500 名員工”，是的。

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

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

Maybe the first one, as you -- maybe to piggyback on Brad's question about the upmarket, does it make you think that you need a different type of either sales reps? Or, I guess, can you help us understand maybe what has made it more difficult for them to be able to rep? And do you need to hire different types of reps there than you've historically done in the core sales organization? Maybe walk us through that.

也許第一個，就像你一樣——也許是藉用布拉德關於高端市場的問題，這是否讓你認為你需要不同類型的銷售代表？或者，我想，您能否幫助我們了解是什麼讓他們更難獲得代表資格？您是否需要在核心銷售組織中聘用不同類型的代表？也許可以帶我們經歷一下。

Yes, I think it's a good question. So we've been ramping the number of reps in that space, as Toby just mentioned, faster than the rest of our sales force over the last, call it, 2 to 3 years. We've called out the fact that success in that market has been a tailwind for us over the last couple of fiscal years. Early on in that cycle, you get a lot of promotions from within. It's very common to be able to do that. As you start to ramp to bigger numbers, you're certainly bringing more people in from the outside. So I think part of this is figuring out how long does it take someone to ramp from the outside versus internal.

是的，我認為這是一個很好的問題。因此，正如托比剛才提到的，我們在過去的 2 到 3 年裡一直在增加該領域的銷售代表數量，速度比我們其他銷售人員的速度要快。我們指出，在過去的幾個財年中，該市場的成功一直是我們的順風車。在這個週期的早期，你會從內部獲得很多晉升。能夠做到這一點是很常見的。當你開始擴大規模時，你肯定會從外部引進更多的人。所以我認為其中一部分是弄清楚一個人從外部與內部的提升需要多長時間。

And then, I think, secondly, when you start to get higher volume of deals in that space, trying to understand what those sales cycles look like and the decision-making cycle, so there certainly is a little bit of learning at scale that's going on here. But I would reiterate the fact that we've had a lot of success. It's been a tailwind for us over the last couple of years, a little bumpier here on the first half of this year, but the pipeline looks pretty rich and strong. And we think we know what we have to do to continue to get success in that market going forward.

然後，我認為，其次，當你開始在該領域獲得更多交易量時，試圖了解這些銷售週期是什麼樣的以及決策週期，因此肯定需要進行一些大規模的學習在這裡。但我要重申，我們已經取得了巨大的成功。在過去的幾年裡，這對我們來說是一股順風，今年上半年有點坎坷，但管道看起來相當豐富和強大。我們認為我們知道我們必須做什麼才能繼續在該市場取得成功。

Great. And maybe just a follow-up for Ryan because as I think about the guidance, how much of it was maybe the sluggishness that you've seen upmarket versus the trend in employment in the base coming in differently than expectations? And because as I think about the exit rate and what that implies, is that kind of a fair way to think about the growth rate going forward, at least for the short term?

偉大的。也許只是瑞安的後續行動，因為當我考慮指導時，其中有多少可能是你所看到的高端市場的低迷與基地就業趨勢與預期的不同？因為當我考慮退出率及其意義時，這是考慮未來成長率的公平方式嗎，至少在短期內？

Yes. I think when you think about the revised guidance for this fiscal year, I think it's absolutely a combination of what Steve and Toby have referenced relative to sales execution. So that's certainly part of it. And I think an equal part of it has been some of the challenges we've seen from the macro standpoint, both year-to-date as well as the fact that we factored in some further moderation in the back half of the year. So I think both of those contributed fairly equally to the revised guidance.

是的。我認為，當您考慮本財年修訂後的指導時，我認為這絕對是史蒂夫和托比提到的與銷售執行相關的內容的組合。所以這肯定是其中的一部分。我認為，同樣重要的部分是我們從宏觀角度看到的一些挑戰，包括今年迄今以及我們在今年下半年考慮到的一些進一步放緩的事實。因此，我認為這兩者對修訂後的指導意見的貢獻相當相同。

Relative to what that implies for Q4, obviously, as I referenced, we have some further moderation in employment levels. That puts you in the sort of 13% or so range for exit of Q4, and I think we'll see how the back half of the year goes before we guide more specifically into '25.

正如我所提到的，相對於第四季度的含義，顯然我們的就業水平進一步放緩。這使您在第四季度退出時處於 13% 左右的範圍內，我認為在我們更具體地指導 25 年之前，我們將看看今年下半年的情況。

Our next question comes from the line of Pat Walravens with JMP Securities.

我們的下一個問題來自 JMP 證券的 Pat Walravens。

Great. Steve and Toby, I'm wondering how deeply do you analyze the trend of the employees that are on the system? I mean do you break it out internally for yourself by industry? Did you break it out by geo and you break it out by segment? And -- because UKG started disclosing that and they're private, so they can do it, right? But I assume you guys have that level of detail, too. And I'm just wondering, so where was the weakness?

偉大的。史蒂夫和托比，我想知道你們對系統中員工的趨勢分析有多深入？我的意思是，你自己在內部以行業劃分嗎？您是否按地理位置和細分市場進行了細分？而且 - 因為 UKG 開始披露這一點，而且他們是私人的，所以他們可以做到，對吧？但我想你們也有這種程度的細節。我只是想知道，弱點在哪裡？

So we do all of those things, and we look at it in a variety of different ways. I would tell you that not -- there wasn't a big spike in a specific geo or a specific vertical market. I think your higher hourly employee segments when you think of vertical markets, we saw a little bit higher decline in those segments if you think of vertical markets. Geos, there really wasn't much, I'll call out at all. And so it was generally kind of across the board just a little bit of weakness. But when you add that up across all the customers that we have and you factor that in, it starts to have an impact, especially when it's happened month after month this fiscal year.

所以我們做了所有這些事情，並以各種不同的方式看待它。我想告訴你的是，特定地區或特定垂直市場並沒有大幅成長。我認為，當你考慮垂直市場時，你的小時工細分市場會更高，如果你考慮垂直市場，我們會看到這些細分市場的下降幅度更大一些。 Geos，真的沒什麼，我會大聲喊出來。所以整體來說，這只是一點點弱點。但是，當你將我們擁有的所有客戶加起來並將其考慮在內時，它就會開始產生影響，尤其是當這種情況在本財年逐月發生時。

And so this is a tough follow-up, I know, but -- so this is 2 quarters in a row, you think it happens again?

我知道，這是一個艱難的後續行動，但是──這是連續兩個季度，你認為這種情況會再次發生嗎？

We factored into our guidance that the trend that we've seen in the last 2 quarters would continue through the back half of the year.

我們在指引中考慮到，過去兩季的趨勢將持續到今年下半年。

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

我們的下一個問題來自 Truist Securities 的 Terry Tillman。

I have a question and a follow-up. Just kind of building on the last couple of questions. I think you guys are articulating that there might be some macro stuff here, but also execution stuff. Can you share a little bit more how you're thinking about with a couple of quarters left, what you can do on the execution side, whether it's org or leadership changes?

我有一個問題和後續行動。只是以最後幾個問題為基礎。我認為你們正在闡明這裡可能有一些宏觀的東西，但也有執行的東西。您能否更多地分享您在剩下幾個季度的時間裡的想法，您可以在執行方面做些什麼，無論是組織還是領導層的變化？

And then the second question, maybe if I could just go ahead and ask is, and I can repeat it if you all forget is, have you all maybe over-indexed on the upmarket activity? Because there is lots of smaller employers under 500 employees. Is there any way -- I know it's easier said than done, a bit of a pivot to that market? Or is that market just less (inaudible).

然後第二個問題，也許我可以繼續問，如果你們都忘記了，我可以重複一遍，你們是否都對高端市場活動過度索引了？因為有很多員工人數不到 500 人的小型雇主。有沒有什麼辦法──我知道說來容易做來難，稍微轉向那個市場？或者這個市場只是更少（聽不清楚）。

So I think what I would say is I don't think we need any major structural changes. I think we've got the team in place. When we look at what we've got from a pipeline perspective and we look at all of our internal metrics, we feel pretty confident that the ability to execute sits in front of us, big market, great product in terms of receptivity. And so we feel pretty good about that.

所以我想我想說的是我認為我們不需要任何重大的結構性改變。我認為我們的團隊已經就位。當我們從管道的角度來看我們所獲得的東西以及我們所有的內部指標時，我們非常有信心，執行能力就在我們面前，大市場，就接受性而言是偉大的產品。所以我們對此感覺很好。

We have grown pretty fast to your second question, in upmarket. Maybe hindsight's 20/20 is hard to say. That's been a great tailwind for us over the last 2 or 3 fiscal years. So hard to actually say that wasn't successful. Did it create some bumps in the road? Maybe early on in this fiscal year, yes. But the product is being received really well in the marketplace. The pipeline is really, really strong. We've got a great group of people that we feel like have been productive and will continue to be productive, and we've got to focus on execution in terms of what's in front of us.

對於你的第二個問題，我們在高端市場的發展速度相當快。也許事後看來，20/20 很難說。在過去的兩三個財年裡，這對我們來說是一個巨大的推動力。很難說這是不成功的。它是否在道路上造成了一些顛簸？也許在本財年初期，是的。但該產品在市場上的反應非常好。管道真的非常非常強大。我們有一群優秀的人，我們認為他們一直富有成效，並將繼續富有成效，我們必須專注於執行我們面前的事情。

Got it. But, Steve, just a real quick kind of follow-up because one thing you did note is the pipeline. I mean, if these deals are closing, that they just stay in the pipeline. I'm just curious, do these folks though at some point just kind of slowdown or just cut it off and then you have to kind of get in the new sales cycle with them into next year? Or could some of these larger deals actually play out in the next couple of quarters? I'm just trying to understand how some of these larger deals could potentially play out because this is a newer business for you. So maybe you don't have pattern recognition.

知道了。但是，史蒂夫，這只是一種真正快速的跟進，因為你確實注意到的一件事是管道。我的意思是，如果這些交易即將完成，它們只會留在管道中。我只是很好奇，這些人是否在某些時候只是放緩或直接停止，然後你必須與他們一起進入明年的新銷售週期？或者，其中一些較大的交易是否會在接下來的幾個季度內真正發揮作用？我只是想了解其中一些較大的交易可能會如何進行，因為這對您來說是一項較新的業務。所以也許你沒有模式辨識能力。

Sure.

當然。

No, it's a fair question. I think we've been in this space for a while, but really more of the last 3 fiscal years kind of in earnings where we've been expanding more significantly. And as I mentioned earlier, we've ramped the reps up more significantly over probably the last 2 years with more hires from outside of the industry. So we do continue to learn. I think you see many people in this space talk about elongated sales cycles. So I think there's a macro element to that. That's certainly the feedback that we hear from our reps, which is just taking a little bit longer to get the decisions.

不，這是一個公平的問題。我認為我們進入這個領域已經有一段時間了，但實際上在過去的三個財年中，我們的獲利成長更為顯著。正如我之前提到的，在過去的兩年裡，我們從行業外部聘用了更多員工，從而更顯著地提高了代表人數。所以我們確實要繼續學習。我想你會看到這個領域的很多人都在談論延長銷售週期。所以我認為這有一個宏觀因素。這當然是我們從代表處聽到的回饋，只是需要更長的時間才能做出決定。

We look at both top of funnel pipeline as well as late-stage pipeline, and we see pretty strong activity all the way through. So that gives us confidence that we've got an opportunity to be able to push some of those deals through on the back half of the year and have a better back half than we did on the front half upmarket.

我們同時關注漏斗管道的頂部和後期管道，我們發現自始至終都有相當強勁的活動。因此，這讓我們有信心，我們有機會在今年下半年推動其中一些交易，並擁有比上半年更好的高端市場。

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

我們的下一個問題來自布萊恩彼得森和雷蒙詹姆斯的對話。

Two quick ones for me. So given what you're seeing in terms of the sales cycles and the productivity ramping, does that change your plan on sales hiring, at least for fiscal year '24 and how we're thinking about fiscal year '25?

對我來說兩個快點。那麼，考慮到您在銷售週期和生產力提升方面所看到的情況，這是否會改變您的銷售招聘計劃（至少在 24 財年）以及我們對 25 財年的看法？

Yes. So I think -- we got this question last quarter in terms of how we think about adding per segment. And I think the last couple of times we would say it's much more even. So we're not adding more in the upper end of the market relative to our core marketplace. And so we've already kind of made that shift. I think there's an opportunity for us to be able to -- we're focused on an absolute new ARR number versus a specific number of reps. And if we have an opportunity to press on productivity to be able to get there, we always go there first. That's always kind of our thought process.

是的。所以我認為，我們在上個季度收到了這個問題，即我們如何考慮添加每個細分市場。我認為過去幾次我們會說它更加均勻。因此，相對於我們的核心市場，我們不會在高端市場增加更多的產品。所以我們已經做出了這種轉變。我認為我們有機會能夠——我們專注於絕對新的 ARR 數字與特定的代表次數。如果我們有機會提高生產力以實現這一目標，我們總是會先實現這一目標。這始終是我們的思考過程。

So we won't make that decision until we go into the next fiscal year. But I would say we feel pretty good about the staffing level that we've got right now. We feel good about the initiatives that we have to drive productivity, and we'll give you more color as we kind of go into next fiscal year.

因此，直到進入下一個財政年度我們才會做出決定。但我想說，我們對目前的人員配置水準感覺非常好。我們對提高生產力的舉措感到滿意，並且在進入下一財年時我​​們將為您提供更多資訊。

Understood. And Ryan, I'm sorry if I missed this, but any help on how to think about interest rate implications in the updated guidance?

明白了。 Ryan，如果我錯過了這一點，我很抱歉，但是對於如何考慮更新後的指導中的利率影響有什麼幫助嗎？

Sure. So in the prepared remarks, I went through and gave you average daily balance and yield assumptions. I think we did bake in a contemplated 25 basis point Fed funds cut in May. The impact of that the fiscal year, obviously very -- in the middle of the fourth quarter. So muted impact, but it's probably about $1 million or so impact to Q4, and that's factored in the guidance.

當然。因此，在準備好的發言中，我詳細介紹了平均每日餘額和收益率假設。我認為我們確實在 5 月考慮了聯邦基金降息 25 個基點的計劃。該財年的影響顯然非常明顯——在第四季中期。影響很小，但對第四季度的影響可能約為 100 萬美元左右，這已在指導中考慮在內。

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

我們的下一個問題來自馬克·馬爾孔和貝爾德的對話。

Guys, just want to follow up. The same kind of line of questioning as some of the others, but maybe a slightly different way with regards to the employment trends that you're seeing. Thanks for narrowing it down to the hourly employees in some of the clients. The last couple of quarters, we were talking about employment trends kind of being flat year-over-year. Are you actually seeing them decline on a year-over-year basis now?

夥計們，只想跟進。與其他一些人的提問方式相同，但對於您所看到的就業趨勢而言，方式可能略有不同。感謝您將範圍縮小到某些客戶的時薪。過去幾個季度，我們談論的就業趨勢與去年同期相比持平。現在您真的看到它們逐年下降嗎？

We're not seeing them decline yet year-over-year. They're still actually up a touch in the first half of the year, but we're certainly seeing softness on a sequential basis. So when we think about what we saw in the first quarter and called that out last quarter and what we've seen in October through December, we are seeing some of that sequential flatness. So they still are up in the first half. But, I think, if this trend continues, they will certainly turn negative in the back half of the fiscal year on a year-over-year basis.

我們還沒有看到它們同比下降。實際上，今年上半年它們仍然有所上升，但我們肯定會看到連續的疲軟。因此，當我們思考第一季的情況、上季的情況以及 10 月到 12 月的情況時，我們會看到一些連續的平坦現象。所以上半場他們仍然領先。但是，我認為，如果這種趨勢持續下去，本財年後半段的表現肯定會比去年同期轉為負值。

And that's what you're expecting?

這就是你所期待的？

That is what we have factored into guidance, yes, based on the fact that we've now seen several months of the sequential trend down.

是的，這就是我們在指導中考慮的因素，基於我們現在已經看到連續幾個月的下降趨勢的事實。

Okay. And then with regards to the elongated sales cycles. Obviously, that always occurs when there's macro challenges. And if employment is trending down, then that would imply that. But I'm wondering, are there any other factors aside from the macro and also maybe some sales execution? In other words, if you talk to your more experienced sales folks and if some of them are not performing as well as they previously had, are you hearing any feedback with regards to, hey, maybe the level of urgency to modernize the solution isn't quite what it was, say, 3, 4, 5 years ago because there's a greater percentage of clients that have moved to more modern solutions and most of the large legacy players have become better and have improved their solution? In other words, is switching to Paylocity as compelling as it used to be?

好的。然後是關於延長的銷售週期。顯然，當存在宏觀挑戰時，這種情況總是會發生。如果就業呈下降趨勢，那就意味著這一點。但我想知道，除了宏觀因素以及銷售執行之外，還有其他因素嗎？換句話說，如果您與更有經驗的銷售人員交談，並且其中一些人的表現不如以前，您是否會聽到任何關於“嘿，解決方案現代化的緊迫程度”的反饋？與3、4、5年前的情況不一樣嗎？因為有更大比例的客戶已經轉向更現代的解決方案，並且大多數大型傳統參與者已經變得更好並改進了他們的解決方案？換句話說，轉向 Paylocity 是否像以前一樣有吸引力？

Yes. So I have not heard that. We've had a lot of conversations with our teams internally and many of our top reps. It more comes down to more decision-makers involved, more stage gate processes that they've got to be able to do to get things across the finish line, a little bit of delay in that decision-making process. That's the kind of stuff that comes up. We haven't necessarily seen maybe a different competitive environment that's caused that. It just -- it seems to be on the elongated sales cycle comment more driven by the prospects.

是的。所以我沒有聽過。我們與我們的內部團隊和許多高級代表進行了很多對話。這更取決於更多的決策者參與，他們必須能夠完成更多的階段性流程才能完成任務，決策過程中有一點延遲。這就是出現的事情。我們不一定會看到導致這種情況的不同競爭環境。只是——似乎更多的是由前景驅動的關於延長銷售週期的評論。

Okay. Great. And then are you seeing any change in behavior in terms of just the number of either upsells in terms of modules or for new logos, number of modules that they want to take on?

好的。偉大的。然後，您是否看到行為發生任何變化，無論是模組的追加銷售數量還是新徽標，他們想要採用的模組數量？

Mark, no, I don't think we've seen any change in that. I mean, I think we've been fairly steady in terms of take rates for new logos. And I think probably just to add on to that, we've added a significant amount of product over the course of the last year or so. And I think we've been overall fairly happy, not just with the differentiation that's helped us continue, but with the attach rates that we've seen in some of the newer products, almost all of which are in early stage yet still, but I think we've been pleased with what we've seen so far.

馬克，不，我認為我們沒有看到任何變化。我的意思是，我認為我們在新商標的採用率方面一直相當穩定。我想也許只是為了補充這一點，我們在過去一年左右的時間裡增加了大量的產品。我認為我們總體上相當滿意，不僅因為差異化幫助我們繼續前進，而且因為我們在一些較新產品中看到的附加率，幾乎所有這些產品仍處於早期階段，但是我認為我們對迄今為止所看到的情況感到滿意。

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

我們的下一個問題來自 Jared Levine 和 TD Cowen 的對話。

How did this January's revenue retention compared year-on-year, even though it's consistent, were there any underlying changes based on employer size segment or controllable versus uncontrollable churn?

今年 1 月的營收保留與去年同期相比如何，儘管保持一致，但是否存在基於雇主規模細分或可控與不可控流失的根本變化？

Yes. So I think we really kind of give more of an update at the end of the year from a retention perspective. It was not something that we called out in the script I think we see fairly consistent performance there. We did call out historically, everybody was kind of seeing record high retention after -- right after COVID. People definitely didn't seem to be moving quite as much. And we've certainly seen that return back to the pre-COVID levels, but I don't think there's any specific call out from a retention perspective.

是的。所以我認為，從保留的角度來看，我們確實會在年底提供更多更新。這不是我們在劇本中提到的，我認為我們在那裡看到了相當一致的表現。我們確實從歷史上看，在新冠疫情之後，每個人都看到了創紀錄的高留存率。人們看起來確實沒有那麼頻繁地移動。我們當然已經看到這種情況回到了新冠疫情前的水平，但我認為從保留的角度來看沒有任何具體的要求。

Got it. And then how would you anticipate the price you charge for payroll software to change over the medium term, if at all? Does the increasing access to payroll offerings through solutions such as embedded payroll represent a threat to pricing power?

知道了。那麼，您如何預期薪資軟體的收費價格會在中期內發生變化（如果有的話）？透過嵌入式薪資等解決方案增加對薪資資產品的存取是否對定價能力構成威脅？

I don't think we've seen that competitively in the market really at all, particularly in the market that we serve. And you start to get to a slightly larger client size in the very micro small market, you might see more activity of that there. That's probably not a place we play in as much. So no, that -- we don't see that as necessarily a factor.

我認為我們在市場上根本沒有看到這種競爭，特別是在我們服務的市場上。你開始在非常小的市場中獲得稍大的客戶規模，你可能會在那裡看到更多的活動。那可能不是我們常玩的地方。所以不，我們認為這不一定是因素。

Our next question comes from the line of Raimo Lenschow with Barclays.

我們的下一個問題來自巴克萊銀行的 Raimo Lenschow。

I had 2 questions. You've changed your full year guidance on the revenue side a little bit, but EBITDA stayed the same. Can you talk a little bit about the action you are taking there to protect the profitability there? And then I have one follow-up.

我有兩個問題。您對收入方面的全年指引進行了一些更改，但 EBITDA 保持不變。您能否談談您為保護獲利能力而採取的行動？然後我有一個後續行動。

Sure. I think -- so I certainly feel good about where we've driven profitability so far this fiscal year. So in second quarter, over 600 basis points of leverage on adjusted EBITDA 470 basis points if you strip out the impact of interest income. So we have a number of programs across the business from an efficiency and scalability perspective, reducing manual processes and making sure that we're really prioritizing spend and continue to be pleased with the output of those programs.

當然。我認為，所以我當然對本財年迄今為止我們推動獲利能力的情況感到滿意。因此，如果剔除利息收入的影響，第二季的槓桿率將超過 600 個基點，調整後的 EBITDA 為 470 個基點。因此，從效率和可擴展性的角度來看，我們在整個企業範圍內製定了許多計劃，減少了手動流程，並確保我們真正優先考慮支出並繼續對這些計劃的輸出感到滿意。

And I think that has allowed us in a maybe more challenging year from a revenue standpoint to be able to maintain really strong profitability, in fact, as you take up margin for the fiscal year. So really happy. I think it just demonstrates the scalability and profitability of the business, and we've seen that both in adjusted EBITDA as well as in free cash flow.

我認為，從收入的角度來看，這使我們能夠在可能更具挑戰性的一年中保持真正強勁的盈利能力，事實上，當你佔用本財年的利潤時。真的很高興。我認為這只是展示了業務的可擴展性和盈利能力，我們在調整後的 EBITDA 和自由現金流中都看到了這一點。

Okay. Perfect. And the follow-up was on -- you kind of mentioned in the script and in the prepared remarks, your leading position on the AI side. Like how does that play out? And how do you see the maturity of that solution? And how does it play out in sales cycles already? Is that already a differentiator? Where are clients in terms of the understanding?

好的。完美的。後續行動是——你在劇本和準備好的發言中提到了你在人工智慧方面的領先地位。效果如何？您如何看待該解決方案的成熟度？它在銷售週期中的表現如何？這已經是差異化因素了嗎？客戶的理解在哪裡？

Yes, it's a good question. I think we're still very much in the early innings. And I think customers are also themselves trying to figure out how, in an HCM platform, AI can provide them benefit. And so we've been often first to market with many of the AI capabilities and we're definitely seeing clients use it. And you get tying into the LLMs and having writing assistance in job descriptions and community. You have a much better option for personalization across the platform, easier to create recommendations based off your historical data set.

是的，這是一個好問題。我認為我們仍處於早期階段。我認為客戶自己也在試圖弄清楚，在 HCM 平台中，人工智慧如何為他們帶來好處。因此，我們經常率先將許多人工智慧功能推向市場，而且我們肯定會看到客戶使用它。您還可以進入法學碩士並獲得職位描述和社區方面的寫作幫助。您可以在整個平台上進行更好的個人化選擇，更輕鬆地根據歷史資料集建立推薦。

Think about that like schedule recommendations that we've launched. And we've got a long list of ideas that we can enhance customer value in terms of adding AI across the platform. So that continues to be our approach versus any type of separate monetization by SKU. I also think there's a big opportunity to really enhance the client experience. Clients do call and e-mail and we interact with them a ton. There's a lot of different questions and answers. And so that's an area that we continue to invest in as well as being able to provide much better, more personalized responses to our customers over time. And so I think we've got opportunities in both categories.

想想我們推出的日程建議。我們有一長串的想法，可以透過在整個平台上添加人工智慧來提高客戶價值。因此，與任何類型的按 SKU 單獨貨幣化相比，這仍然是我們的方法。我還認為這是一個真正增強客戶體驗的巨大機會。客戶確實會打電話和發送電子郵件，我們會與他們進行大量互動。有很多不同的問題和答案。因此，這是我們繼續投資的一個領域，隨著時間的推移，我們能夠為客戶提供更好、更個人化的回應。所以我認為我們在這兩方面都有機會。

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

我們的下一個問題來自西蒂和瑞穗的關係。

I want to ask about your Q3 guidance. If I look at your Q2 recurring and other revenue on a seasonality basis, like, it only grew 2% sequentially versus last year, it was like 4.5%. But the way you are guiding for Q3, 22%, which is like same as last year. So did you see any kind of deals or go live that got pushed to Q3? Or are you seeing any kind of revenue contribution maybe from Trace? Or -- basically, I want to understand your confidence level with this guidance for Q3?

我想問一下你們第三季的指導。如果我以季節性查看你們第二季的經常性收入和其他收入，例如，與去年相比，它只連續成長了 2%，大約是 4.5%。但你對第三季的指導方式是 22%，與去年相同。那麼您是否看到任何類型的交易或上線被推遲到第三季？或者您看到 Trace 可能帶來任何形式的收入貢獻？或者——基本上，我想了解您對第三季指導的信心程度？

Yes, nothing that I'd call out as far as onetime or any material movements in deals. I think, Toby, went through in his prepared remarks some of the challenges relative to January starts that we saw upmarket. We would have taken that into account. And obviously, being on February 8, we've got a good sense of January starts and form revenue as well, so we're able to take all that into account as we guided into Q3. So feel good about that guidance, but nothing I would call out as far as onetime in nature or specific movements within the months or quarters that would have impacted that.

是的，就一次性或交易中的任何重大變動而言，我不會指出任何事情。我認為，托比在他準備好的演講中闡述了我們在高端市場看到的與一月份開工相關的一些挑戰。我們會考慮到這一點。顯然，在 2 月 8 日，我們對 1 月份的開局和收入情況有了很好的了解，因此我們能夠在進入第三季時考慮到所有這些。因此，我對這一指導感到滿意，但我不會指出任何會影響這一指導的一次性性質或幾個月或季度內的具體變動。

And the Trace, what kind of revenue contribution you expect from Trace acquisition?

那麼Trace，您預期收購Trace 會帶來什麼樣的營收貢獻？

Immaterial to the year, so it has no impact on guidance.

與年份無關，因此對指導沒有影響。

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

我們的下一個問題來自花旗銀行的史蒂夫恩德斯 (Steve Enders)。

Maybe just to start, maybe following up on the kind of seasonality dynamics for 3Q and into 4Q, still kind of assumes another 3 or 4 points down on recurring and overall growth line. So maybe can you just give a little bit more detail on maybe what's different in the assumptions for 4Q versus 3Q and kind of the delta in the growth rates between the 2 quarters?

也許只是開始，也許跟進第三季和第四季的季節性動態，仍然假設經常性和整體成長線再下降 3 或 4 個百分點。那麼，您能否提供更多細節，說明第四季與第三季的假設有何不同，以及兩季之間成長率的增量？

Sure. I think probably the 2 factors I'd call out would be obviously January starts, which we've referenced in the prepared remarks and in the Q&A here. So that probably had some headwinds in it relative to upmarket. So that as a factor in the third quarter but certainly into the fourth. And the other factor would be the macro impact.

當然。我認為我要指出的兩個因素顯然是一月份的開始，我們在準備好的評論和問答中都提到了這一點。因此，相對於高端市場來說，這可能存在一些阻力。因此，這是第三季的一個因素，但肯定會進入第四季。另一個因素是宏觀影響。

So we've referenced, we did see now really 2 quarters of weakness sequentially, and we assumed further moderation in the back half. So that has an impact in Q3. But as you get to the fourth quarter, that would have all the impact we've seen year-to-date as well as the additional moderation that we factored in. So I think it's really those 2 items that would account for that sequential slowdown in revenue growth you're referencing.

因此，我們已經提到，我們現在確實看到了連續兩個季度的疲軟，我們假設下半年會進一步放緩。這對第三季有影響。但當你進入第四季度時，這將產生我們今年迄今看到的所有影響以及我們考慮到的額外放緩。所以我認為這確實是這兩個因素導致了連續放緩您提到的收入增長。

Okay. All right. That's helpful. And then maybe just on the conservatism that you have kind of baked into the guide like any change in how you're thinking about the level of conservatism that's now being kind of assumed here?

好的。好的。這很有幫助。然後，也許只是關於您在指南中融入的保守主義，就像您對現在在這裡假設的保守主義水平的看法發生了任何變化？

Yes. I don't think there's a change in any guidance philosophy. I think it's a matter of how long do you see a trend, and then do you have to account for it. So I think last quarter, we kind of assumed employment stayed flat and that you wouldn't see any continued sequential decline. We've seen that now for 2 quarters. So we think it's prudent for us to be able to take that trend into consideration.

是的。我認為任何指導理念都沒有改變。我認為問題在於你能看到一種趨勢多久，然後你是否必須考慮它。因此，我認為上個季度，我們假設就業率保持不變，並且不會看到任何持續的環比下降。我們已經看到這種情況已經兩個季度了。因此，我們認為考慮到這一趨勢對我們來說是謹慎的。

You also -- Ryan just said, he took into account potentially a rate cut, and that's obviously included as well. And so we're also in the back half of the year, so you're only talking 2 quarters left. So I don't think there's anything different in approach, but we felt like we should at least take into account all the things that we have seen so far and that seem at least reasonably possible into the guidance.

你也 - 瑞安剛才說，他考慮了可能的降息，這顯然也包括在內。所以我們也正處於今年下半年，所以你說的只剩下兩個季度了。因此，我認為方法上沒有什麼不同，但我們覺得我們至少應該考慮到迄今為止我們所看到的所有事情，而這些事情至少在指南中似乎是合理可能的。

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

我們的下一個問題來自 Wolfe Research 的 Alex Zukin。

So maybe again kind of similar line of questioning. It's a multiparter. The first being just, if I think about the amount kind of taken out of the guide for this year, I think it's about $20 million on the recurring revenue line. Just dimensionalize like, is half of that employment levels and half of that kind of either later starts or less starts. And then as we're kind of -- maybe a few quarters removed from the long-term guide of 20%, given the exit rate of 12% to 13% in Q4, is this something that's temporal and there might be kind of a year [air] gap until we get back to that 20% long-term target? Or are we talking more a quarter or 2?

所以也許又是類似的提問。這是一個多人參與的過程。第一個是，如果我考慮今年從指南中扣除的金額，我認為經常性收入約為 2000 萬美元。只是維度化，即就業水準的一半和較晚開始或較少開始的就業水準的一半。然後，考慮到第四季度 12% 至 13% 的退出率，我們可能會從 20% 的長期指導中刪除幾個季度，這是否是暫時的，可能會出現某種情況直到我們回到20% 的在長期目標之前，還有一年[空氣] 差距嗎？或者我們談論更多季度或兩個季度？

Sure. I can hit the first question, Alex. I think roughly the impact from macro and the sales headwinds, roughly the same impact to the revised guidance. I wouldn't weigh one or the other. They both certainly weighed on the guidance, particularly in the back half of the year. Relative to your second question on longer term, I'll let Steve handle that.

當然。我可以回答第一個問題，亞歷克斯。我認為宏觀和銷售逆風的影響大致相同，對修訂後的指導的影響大致相同。我不會衡量其中之一。他們當然都對指導意見產生了影響，特別是在今年下半年。關於你的第二個問題，從長遠來看，我會讓史蒂夫來處理這個問題。

Yes, I think the way we think about long-term model is over an extended period of time, and it's something that -- we've made a couple of updates since we've gone public. We'll consider that as we go into the turn of the year and see if there's any changes that we want to make. We made some changes going into this fiscal year. We're still focused on growth as a priority. We still think there's a lot of levers that we can pull to be able to grow the business, huge TAM, products getting great adoption, pipeline is pretty rich and full. So at this point in time, no changes and same priority growth first and continued focus at the same time on margin expansion. And that's kind of been our formula for success in the past.

是的，我認為我們對長期模型的思考方式是在很長一段時間內進行的，自從我們上市以來，我們已經做了一些更新。當我們進入新年時，我們會考慮這一點，看看我們是否想要做出任何改變。我們在本財年做出了一些改變。我們仍然將成長視為首要任務。我們仍然認為，我們可以利用很多槓桿來發展業務，巨大的 TAM，產品被廣泛採用，管道相當豐富和完整。因此，目前沒有任何變化，同樣優先考慮成長，同時繼續關注利潤率擴張。這就是我們過去的成功秘訣。

Got it. And maybe just a quick follow-up. If I think about kind of everything you've referenced from on the sales go-to-market side, the execution side, what gives you kind of incremental confidence that there's also not kind of increased competitive pressure, maybe increased market saturation, that it's not those things that it really is kind of a temporal fix around both the macro, current environment as well as the longer time to ramp for sales people?

知道了。也許只是快速跟進。如果我考慮一下您在銷售進入市場方面、執行方面所提到的一切，是什麼讓您越來越有信心，也沒有增加競爭壓力，也許增加市場飽和度，這是難道這實際上是圍繞著宏觀、當前環境以及銷售人員更長的時間進行的臨時修復嗎？

Yes, I think there are several factors there. So I think, number one, it's the conversations that you have with your sales force, especially the folks that have been here around a long time and the confidence level that they have in the product and service that we're offering. And then number two, I think it's the data that we get into. And when we're looking at the pipeline, we're looking at this in detail by deal, looking at what those close ratios look like.

是的，我認為有幾個因素。所以我認為，第一，是你與銷售人員的對話，尤其是那些已經在這裡待了很長時間的人，以及他們對我們提供的產品和服務的信心水平。第二，我認為這是我們所獲得的數據。當我們查看管道時，我們會按交易詳細查看這一點，看看這些接近的比率是什麼樣的。

And so if the pipeline wasn't necessarily building and we weren't seeing these elongated sales cycles, I probably would have a different answer to that question, but that's very evident in the data that we're looking at. And so that provides us more optimism. And then I think lastly, it's the conversations that we have with current customers, and we're seeing how the product is resonating in the upper end of the space, and we're certainly having success.

因此，如果管道不一定在建設，並且我們沒有看到這些延長的銷售週期，我可能會對這個問題有不同的答案，但這在我們正在查看的數據中非常明顯。這讓我們更加樂觀。我認為最後，這是我們與現有客戶的對話，我們看到產品如何在高端領域產生共鳴，我們肯定取得了成功。

And so I think it's when you put those 3 things together, we think we have an opportunity to execute better on the back half of the year. And we have a big opportunity from a TAM perspective, and that includes the success we've had over the last several years in upmarket.

所以我認為當你把這三件事放在一起時，我們認為我們有機會在今年下半年執行得更好。從 TAM 的角度來看，我們擁有巨大的機會，其中包括我們過去幾年在高端市場的成功。

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

我們的下一個問題來自 KeyBanc Capital Markets 的 Jason Celino。

Really sorry to beat a dead horse here, but the moderation you're baking in on the employment levels in the second half, is there a way to think about the magnitude and the linearity of it?

真的很抱歉在這裡打敗了一個死馬，但是下半年你對就業水平的調整，有沒有辦法考慮它的幅度和線性？

Yes. I think we hit the magnitude question earlier. And I think the way to think about that is relative to the revised guidance. Half of that impact is macro, roughly speaking, and half of it would be some of the sales headwinds. I think the way that we assume that layered in over the balance of the year is, we've seen a very small but consistent decline over the last 5 months, and we assume that similar level of decline in further moderation happens each month into Q3 and Q4. There wasn't a particular month or quarter that we had concentration. It was assumed that continued moderation happens over the course of the back half of the year.

是的。我認為我們更早觸及了規模問題。我認為思考這個問題的方式與修訂後的指南有關。粗略地說，一半的影響是宏觀的，一半是一些銷售阻力。我認為，我們假設在今年剩餘時間內分層的方式是，我們在過去5 個月中看到了非常小但持續的下降，並且我們假設進入第三季度的每個月都會出現類似程度的進一步放緩的下降和 Q4。沒有一個特定的月份或季度是我們集中註意力的。據推測，今年下半年將持續的放緩。

All right. And then maybe on the Trace acquisition, can you talk about how that fits in or complements to the broader portfolio? And then with the near-term environment where you're seeing some pressure on workforce levels, how does head count budgeting and forecasting kind of fit in, in terms of priority?

好的。然後，關於 Trace 的收購，您能談談它如何適應或補充更廣泛的投資組合嗎？然後，在近期環境中，您會看到勞動力水準面臨一些壓力，就優先順序而言，人員編制預算和預測如何適應？

Yes. So I think it's certainly been a little bit tighter economy and when we talk to our customers, and they're certainly trying to be able to manage their cost as well as the growth that they might see in their business. And so one of the challenges that our customers tell us about is, people are one of the largest costs that they have. And when somebody then leaves the organization, are you going to replace them? Are you going to replace them right away? Or are you going to replace it in a different position? How do you then improve requisitions for new positions? All those concepts in a tighter economy become even more important parts of the conversation.

是的。因此，我認為經濟確實有點緊縮，當我們與客戶交談時，他們肯定試圖能夠管理其成本以及他們可能在業務中看到的成長。因此，我們的客戶告訴我們的挑戰之一是，人員是他們最大的成本之一。當有人離開組織時，你會替換他們嗎？您要立即更換它們嗎？還是你打算把它換到不同的位置？那麼您如何改進新職位的申請？在經濟趨緊的情況下，所有這些概念都成為對話中更重要的部分。

And we have all the data about the people in our platform already. And so when you can layer in workflows and approvals for that activity to happen, you can layer forecasting capabilities on rules and routing that becomes really attractive in terms of driving both cost efficiency for our customers as well as just purely efficiency in terms of getting those actions done where the data already exists today.

我們已經擁有我們平台上人員的所有數據。因此，當您可以為該活動的發生分層工作流程和審批時，您可以在規則和路由上分層預測功能，​​這在提高客戶的成本效率以及獲得這些結果方面的純粹效率方面變得非常有吸引力。在資料已存在的情況下執行的操作。

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

我們的下一個問題來自 BMO 資本市場的 Dan Jester。

Great. So I appreciate all the clarity on the slowdown in the upper end of your market. I think just to be explicit, if you look at your core customer that has 100 or 200 employees, which I think is close to the average size of the folks you have on the platform, have you seen a change in the velocity of new bookings there or sales cycles?

偉大的。因此，我很欣賞你們對高端市場放緩的清晰認知。我想明確地說，如果你看看擁有 100 或 200 名員工的核心客戶（我認為這接近平台上員工的平均規模），你是否看到新預訂速度的變化還是有銷售週期？

Yes. I think Toby called out the fact that we've had continued broker referrals that are really strong. That's obviously ends up being a big driver in the core end of the market. That's not something that we kind of called out. We feel good about the momentum that we have there. Still a big market, still relatively underpenetrated. I think the point we're trying to make is, we've grown relatively quickly in upmarket, a lot of new people in that category, some macro impact that we're kind of feeling in there. You add that into what we saw from an overall macro perspective, and that's really the bigger factor worth calling out on the sales side.

是的。我認為托比指出了這樣一個事實，即我們不斷獲得非常強大的經紀人推薦。顯然，這最終將成為核心市場的一大推動力。這不是我們所呼籲的。我們對我們在那裡的勢頭感到滿意。仍然是一個很大的市場，但滲透率仍然相對較低。我認為我們想要表達的一點是，我們在高端市場的成長相對較快，該類別中有很多新人，我們感受到了一些宏觀影響。您將其添加到我們從整體宏觀角度看到的情況中，這確實是銷售方面值得關注的更大因素。

Okay. Great. And then maybe just get a refresh take on how you're viewing your capital allocation strategy. It looks like you're going to end this fiscal year with kind of north of [$400 million] on the balance sheet. Most of your acquisitions have been more tuck-in in nature. How are you thinking about organic versus inorganic? And is there opportunities to maybe deploy capital in other ways going forward?

好的。偉大的。然後也許只是重新審視您如何看待您的資本配置策略。看起來您將在本財年結束時資產負債表上的資產達到[4億美元]以上。您的大部分收購本質上都是隱藏式的。您如何看待有機與無機？未來是否有機會以其他方式部署資本？

Yes. I'd probably give you a fairly consistent answer on that, Dan. I think we ended the quarter with [$400 million] or so on balance sheet, and that will certainly grow as we go through the back half of the fiscal year. You're right, I mean I think we've been pleased with the acquisitions that we've done and being able to use those as drivers for strategy and growing the portfolio. I think that continues to be of interest to us. And I think as we get through the back half of this fiscal year, we'll continue to look at other ways to allocate capital as we go through the year. But I don't -- no massive change in our mentality around that.

是的。丹，我可能會給你一個相當一致的答案。我認為本季末我們的資產負債表上有大約[4億美元]，隨著我們進入本財年後半段，這一數字肯定會增長。你是對的，我的意思是我認為我們對我們所做的收購感到滿意，並且能夠將這些收購視為策略和發展投資組合的驅動力。我認為我們仍然對此感興趣。我認為，當我們度過本財年的後半段時，我們將繼續尋找其他方式來分配資本。但我不認為——我們的心態並沒有發生巨大的變化。

Okay. And just a quick one then on Trace. Is that going to be a separate stand-alone SKU? Or is that going to be embedded into another product?

好的。然後在 Trace 上快速介紹一下。這將是一個單獨的獨立 SKU 嗎？或者它將被嵌入到另一個產品中？

Yes. We haven't really made any big announcements in terms of what the product strategy is. But what I would tell you based off of our prior acquisitions is we really try to take the time to build it into our platform such that from a user perspective, you would have no idea whether we built it ourselves or we acquired it and then use that team that we acquired to build it into our platform. So we're doing that work right now, and we're figuring that out. I definitely think there's a fair amount of value in the product. So if you can save customers' both time and drive more efficient process and ultimately save them people dollars, then that certainly becomes a monetizable option. So that would certainly be the lean sitting here right now.

是的。關於產品策略，我們還沒有真正發布任何重大公告。但根據我們先前的收購，我想告訴您的是，我們確實嘗試花時間將其構建到我們的平台中，這樣從用戶的角度來看，您將不知道是我們自己構建的還是我們收購了它然後使用我們收購的團隊將其建置到我們的平台中。所以我們現在正在做這項工作，我們正在解決這個問題。我絕對認為該產品具有相當大的價值。因此，如果您可以節省客戶的時間並推動更有效率的流程並最終為他們節省資金，那麼這肯定會成為一個可獲利的選擇。所以這肯定是現在坐在這裡的精益。

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

我們的下一個問題來自 BTIG 的 Matthew VanVliet。

Curious on how the referral network performed. Any trends there that you're seeing that maybe deviate from what some of the direct business looks like?

好奇推薦網路的表現如何。您看到的任何趨勢可能與某些直接業務的情況有所不同？

Yes. I mean I think just a quick refresher. I mean, those -- that's the referral deals that we end up selling directly, but I think no major change in terms of the production there, called it out in the scripts, 25% plus of new business continuing to come from the referral channels, primarily benefits brokers and financial advisers and the like. And I think that's been a really successful channel for us over time and year in and year out has also been fairly consistent and fairly consistent throughout the course of this fiscal year-to-date. So continue to see a lot of strength there and continues to be a producing channel for us.

是的。我的意思是我想快速回顧一下。我的意思是，那些——這就是我們最終直接銷售的推薦交易，但我認為在製作方面沒有重大變化，在劇本中指出，25% 以上的新業務繼續來自推薦渠道，主要有利於經紀人和財務顧問等。我認為，隨著時間的推移，這對我們來說是一個非常成功的管道，而且在本財年迄今為止的整個過程中，年復一年也相當一致。因此，我們會繼續看到那裡的強大實力，並繼續成為我們的生產管道。

Great. And then as you look at some of those upmarket deals that sales cycles are elongating to a certain extent, do you -- anything you'd peg there? Are they evaluating more vendors? Is it a little more competitive there? Or is the ask trying to get multiple products in the door, creating any additional friction and then maybe just trying to get your foot in with payroll and go from there? Curious on how you're analyzing sort of the trends there.

偉大的。然後，當你看到一些銷售週期在某種程度上延長的高端交易時，你會認為有什麼嗎？他們正在評估更多供應商嗎？那裡競爭比較激烈一點嗎？或者，這個要求是否試圖讓多種產品進入市場，造成任何額外的摩擦，然後可能只是試圖讓你涉足工資單並從那裡開始？很好奇你是如何分析那裡的趨勢的。

Yes. I don't think any of those things have necessarily been the case. I think you can go back to a couple of the comments that Steve made. I think we've continued to see the pipeline build. I think we've continued to get access. I think what we've seen is, you have -- you might have more decision-makers, you might have more gates in the process, more reviewers in terms of the actual purchasing.

是的。我認為這些事情不一定是這樣的。我想你可以回顧一下史蒂夫發表的一些評論。我認為我們繼續看到管道的建設。我認為我們繼續獲得訪問權限。我認為我們所看到的是，你可能有更多的決策者，在這個過程中你可能有更多的關卡，在實際購買方面可能有更多的審查者。

And so I think those have more been the dynamics than challenges gaining access or challenges around how much product gets added into a deal or something like that. I think we've seen product take rates remain fairly consistent throughout all sort of areas of the market. And like I said earlier, I think we've also seen. We've also been happy with the attach rates that we've seen with some of the newer products. So I think that's what we've seen so far.

因此，我認為這些更多的是動態，而不是獲得准入的挑戰或圍繞交易中添加多少產品或類似問題的挑戰。我認為我們已經看到市場各個領域的產品採用率保持相當一致。正如我之前所說，我想我們也已經看到了。我們對一些新產品的附加率也很滿意。所以我認為這就是我們迄今為止所看到的。

Our next question comes from the line of Adam Bergere with Bank of America.

我們的下一個問題來自 Adam Bergere 與美國銀行的對話。

Just given the macro is obviously out of your control, where are some of these growth levers that you mentioned that you think you can pull in the next 6 to 12 months, so to say?

鑑於宏觀經濟顯然超出了您的控制範圍，您提到的您認為在未來 6 到 12 個月內可以拉動的成長槓桿在哪裡？

Yes. So I think there's a lot of the growth levers that we have been pulling for the last several years continue to be an opportunity for us. So we've had a pretty robust new product introduction cycle. Toby mentioned, we're pretty happy with the initial take rates there. So attaching those new customers and selling those back to customers become an opportunity. Obviously, rolling into Trace and getting that product out in the market will be a future opportunity. So we're excited about what we got from a product perspective.

是的。因此，我認為過去幾年我們一直在推動的許多成長槓桿對我們來說仍然是一個機會。因此，我們有一個相當強勁的新產品推出週期。托比提到，我們對那裡的初始採用率非常滿意。因此，吸引這些新客戶並將其回售給客戶就成為了一個機會。顯然，進入 Trace 並將該產品推向市場將是未來的機會。因此，我們對從產品角度獲得的成果感到興奮。

And then, I think, overall, we've got pretty significant presence both in our core market as well as upmarket. And we're getting good receptivity of those products and the enhancements that we're making to the product. So we're really leading with the most modern platform in the industry and we feel good about that. It's really up to us to be able to continue to execute. Broker channel remains really strong. We're executing really well there.

然後，我認為，總體而言，我們在核心市場和高端市場都擁有相當重要的影響力。我們對這些產品以及我們對產品所做的改進的接受度很高。因此，我們確實憑藉業內最現代化的平台處於領先地位，對此我們感覺很好。能否繼續執行確實取決於我們。經紀商管道仍然非常強大。我們在那裡執行得非常好。

So there's certainly a lot of positives. We obviously focus on this call on areas that we have opportunity to make improvements in, and we're committed to make those improvements. And our turnover rates have been really, really low. So we've got the team to be able to do it, and we've got a strong pipeline, and that's what we're going to focus on.

所以肯定有很多正面的一面。顯然，我們重點關注的是我們有機會改進的領域，並且我們致力於做出這些改進。我們的人員流動率非常非常低。因此，我們擁有能夠做到這一點的團隊，並且我們擁有強大的管道，這就是我們要關注的重點。

And, I guess, following up, is this fair to say you'll lean in a little bit more into upsell? Or is that focused unchanged?

而且，我想，接下來，可以公平地說您會更傾向於追加銷售嗎？或者說重點沒有改變？

We have been leaning in gradually more to upsell. Over the last few years, we've called out the fact that our internal sales force that's selling back to the customers has grown at a much faster rate than any of our other sales forces. And that is -- that team has done really well this year. It's been certainly a standout for us, and so we'll continue to do that on a go-forward basis.

我們逐漸傾向於追加銷售。在過去的幾年裡，我們指出了這樣一個事實：我們向客戶進行回售的內部銷售隊伍的成長速度比我們任何其他銷售隊伍都要快得多。那就是——該團隊今年表現得非常好。這對我們來說無疑是一個突出的表現，因此我們將繼續前進。

Ladies and gentlemen, at this time, I would like to turn the call back over to management for closing remarks.

女士們、先生們，此時此刻，我想將電話轉回給管理階層，讓其致閉幕詞。

Well, thank you very much for all of your interest in Paylocity. And I just want to echo one of Toby's sentiments from the prepared remarks, thanking all of our employees for their efforts over a very busy year-end. Have a great evening, everyone.

好的，非常感謝您對 Paylocity 的關注。我只想呼應托比在準備好的演講中的一個觀點，感謝我們所有員工在非常忙碌的年底所做的努力。祝大家有個愉快的夜晚。

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。您現在可以斷開連線。