Paylocity Holding Corp (PCTY) 2024 Q4 法說會逐字稿

Hello, and thank you for standing by.

您好，感謝您的支持。

Welcome to Paylocity Holding Corporation fourth-quarter 2024 fiscal year results.

歡迎閱讀 Paylocity Holding Corporation 2024 財年第四季業績。

(Operator Instructions)

（操作員說明）

I would now like to turn the call over to Ryan Glenn.

我現在想把電話轉給瑞安格倫。

Sir, you may begin.

先生，您可以開始了。

Good afternoon, and welcome to Paylocity's earnings results call for the fourth quarter of fiscal year '24, which ended on June 30, 2024.

下午好，歡迎來到 Paylocity 公佈的截至 2024 年 6 月 30 日的「24 財年第四季」收益報告。

I'm Ryan Glenn, Chief Financial Officer.

我是瑞安·格倫，首席財務官。

And joining me on the call today are Steve Beauchamp and Toby Williams, co-CEOs of Paylocity.

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.

今天，我們將討論收市後發布的新聞稿中公佈的結果。

A webcast replay of this call will be available for the next 45 days on our website under the Investor Relations tab.

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.

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。

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.

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。

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.

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。

For additional information, please refer to our filings with the Securities and Exchange Commission for the risk factors contained therein and other disclosures.

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。

We do not undertake any duty to update any forward-looking statements.

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.

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。

We believe that non-GAAP measures are more representative of how we internally measure the business.

我們認為，非公認會計準則衡量標準更能代表我們內部衡量業務的方式。

And there's 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.

我們的新聞稿中目前提供了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，並向美國證券交易委員會提交。

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 regard to our upcoming conference schedule, Toby will be attending the Stifel Tech Executive Summit in Deer Valley on August 27.

關於我們即將舉行的會議日程，Toby 將於 8 月 27 日參加在鹿谷舉行的 Stifel Tech Executive Summit。

And I will be attending the Citi Global Tech Conference in New York on September 4 and HR Tech in Las Vegas in late September.

我將參加 9 月 4 日在紐約舉行的花旗全球科技會議和 9 月底在拉斯維加斯舉行的人力資源科技會議。

Please let me know if you'd like to schedule time with us at any of these events.

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 fourth-quarter and fiscal '24 earnings call.

謝謝 Ryan，也謝謝大家參加我們的第四季和 24 財年財報電話會議。

Our differentiated value proposition of providing the most modern software in the industry continues to resonate in the marketplace and help drive recurring revenue growth of 15% and total revenue growth of 16% in Q4.

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，並幫助推動第四季度經常性收入成長 15% 和總收入成長 16%。

For fiscal '24, recurring revenue grew 17% over fiscal '23, and total revenue grew 19% and finished at $1.4 billion.

24 財年的經常性收入比 23 財年成長了 17%，總營收成長了 19%，最終達到 14 億美元。

Our solid results were once again driven by both adding new clients and employees and increasing average revenue per client.

我們的穩健業績再次得益於新客戶和員工的增加以及每位客戶平均收入的增加。

We ended fiscal '24 with 39,050 clients compared to 36,200 at the end of last fiscal year, an increase of 8%.

截至 24 財年末，我們的客戶數量為 39,050 名，而上一財年末的客戶數量為 36,200 名，成長了 8%。

Additionally, our average number of employees per client increased to over 150, given our continued upmarket success.

此外，鑑於我們在高端市場的持續成功，我們每位客戶的平均員工人數增加到 150 名以上。

Average recurring revenue per client was nearly $33,000 in fiscal '24 compared to just over $30,000 in fiscal '23, an increase of approximately 8% as a result of increasing product attach rates across our client base.

24 財年每位客戶的平均經常性收入接近 33,000 美元，而 23 財年略高於 30,000 美元，由於我們客戶群的產品附加率提高，增長了約 8%。

We continue to attach more product at the time of sale and have realized increased success selling back into existing clients as our products, focused on the modern workforce, resonate across our entire client base, with learning management, recognition and rewards, and employee voice seeing particular success.

我們繼續在銷售時附加更多產品，並透過學習管理、認可和獎勵以及員工心聲看到，我們的產品在回銷給現有客戶方面取得了更大的成功，專注於現代勞動力，在我們整個客戶群中產生共鳴特別的成功。

Our sustained investment in product development allows us to continue to expand our product suite, evidenced by the release of several new premium offerings and feature enhancements in fiscal '24, including recognition and rewards, employee voice, advanced scheduling, market pay, AI-driven personalized learning plans, and our next-gen mobile app.

我們對產品開發的持續投資使我們能夠繼續擴展我們的產品套件，24 財年發布的多項新的優質產品和功能增強就證明了這一點，包括認可和獎勵、員工聲音、高級調度、市場薪酬、人工智慧驅動個人化學習計畫和我們的下一代行動應用程式。

We are pleased with the early traction of these new product offerings, highlighted by more than 30,000 market job searches within market pay, over 500,000 AI-assisted platform interactions, and our mobile app ranking as one of the highest in the software industry, with the majority of employee interactions on the platform now occurring via mobile.

我們對這些新產品的早期吸引力感到高興，突出表現在市場薪酬範圍內超過 30,000 次市場求職、超過 500,000 次人工智能輔助平台交互，以及我們的移動應用程序排名為軟體行業最高之一，該平台上的大多數員工互動現在都是透過行動裝置進行的。

Our commitment to product development continues to be recognized in the market with Paylocity recently being ranked as an overall leader for 10 product categories in G2's Summer 2024 Grid reports; listed as the Best Payroll and Software combo by Forbes Advisor; named as TrustRadius' Top Rated HR Management Software Platform for the second year in a row; and recognized in Gartner Peer Insights' 2024 Voice of the Customer for Cloud HCM Suites for 1,000-plus employee enterprises.

我們對產品開發的承諾繼續得到市場的認可，Paylocity 最近在 G2 的 2024 年夏季網格報告中被評為 10 個產品類別的整體領導者；被福布斯顧問評為最佳薪資和軟體組合；連續第二年被評為 TrustRadius 最受好評的人力資源管理軟體平台；並在 Gartner Peer Insights 的 2024 年雲端 HCM 套件客戶之聲中得到認可，該套件針對超過 1,000 名員工的企業。

I would now like to pass the call to Toby to provide further color on the quarter and fiscal '24.

我現在想將電話轉給托比，以提供有關本季和 24 財年的更多資訊。

Thanks, Steve.

謝謝，史蒂夫。

As Steve highlighted, in fiscal '24, we continued our investments in R&D to further grow our differentiated value proposition of providing the most modern software in the industry and increased our PEPY by more than 10%, with the introduction of new premium products and feature enhancements.

正如Steve 所強調的，在24 財年，我們繼續對研發進行投資，以進一步發展我們提供業界最現代化軟體的差異化價值主張，並透過推出新的優質產品和功能，使我們的PEPY 增加了10 % 以上增強功能。

And we're excited to continue this trend with the launch of headcount planning later in fiscal '25.

我們很高興能夠在 25 財年稍後推出員工人數規劃來延續這一趨勢。

In Q4 and fiscal '24, our differentiated position was reflected in solid sales execution.

在第四季和 24 財年，我們的差異化地位體現在穩健的銷售執行力上。

And we have continued investing in our go-to-market functions to carry this momentum into fiscal '25 across sales, marketing, and channels.

我們繼續投資我們的行銷職能，將這一勢頭帶入 25 財年的銷售、行銷和通路領域。

Coming into fiscal '25, we expanded our sales force by 8% to 885 sales reps and will be focused on continuing to drive productivity and efficiency across our teams.

進入 25 財年，我們的銷售團隊擴大了 8%，達到 885 名銷售代表，並將專注於繼續提高整個團隊的生產力和效率。

Consistent with prior years, we are pleased to be fully staffed to begin fiscal '25.

與往年一樣，我們很高興在 25 財年開始時人員配備齊全。

We continue to successfully attract the best talent in the industry, and we believe that we are well positioned for the fiscal year.

我們繼續成功吸引業內最優秀的人才，我們相信我們在本財年處於有利地位。

We have also continued to invest in our marketing and channel efforts to support our sales teams throughout fiscal '25, including the recent release of our new benefits decision support enhancement to help continue driving further differentiation and value to our clients and broker channel, which, once again, delivered 25%-plus of our new business in Q4 and fiscal '24.

我們也繼續投資於我們的行銷和通路工作，以在整個25 財年支持我們的銷售團隊，包括最近發布的新的福利決策支援增強功能，以幫助繼續推動我們的客戶和經紀商管道的進一步差異化和價值，其中，我們在第四季和 24 財年的新業務再次實現了 25% 以上的成長。

Revenue retention also remained strong at greater than 92%.

收入保留率也保持在 92% 以上的強勁水平。

And we remain committed to continuing to invest in our service and support teams to deliver world-class service to our clients.

我們仍然致力於繼續投資我們的服務和支援團隊，為我們的客戶提供世界一流的服務。

The strong culture at Paylocity continued to be recognized this fiscal year as we were recently named one of Forbes' Best Employers for Diversity for the third year in a row, received ATD's BEST for Employee Talent Development Award, and earned the Great Place to Work certification for the seventh consecutive year.

Paylocity 的強大文化在本財年繼續得到認可，我們最近連續第三年被評為福布斯多元化最佳雇主之一，獲得了 ATD 員工人才發展最佳獎，並獲得了最佳工作場所認證連續第七年。

Our strong culture, industry-leading software, and exceptional sales and operational execution would not be possible without the dedication and commitment of our over 6,000 employees.

如果沒有我們 6,000 多名員工的奉獻和承諾，我們強大的文化、業界領先的軟體以及卓越的銷售和營運執行力就不可能實現。

As we close out a very strong fiscal '24, I'd like to thank all of our people and teams for a fantastic year.

在我們結束了非常強勁的 24 財年之際，我要感謝我們所有的員工和團隊，讓我們度過了美好的一年。

I would now like to pass the call to Ryan to review the financial results in detail and provide fiscal '25 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 25 財年指導。

Thanks, Toby.

謝謝，托比。

Recurring revenue for the fourth quarter was $324.7 million, an increase of 15%, with total revenue up 16% from the same period last year.

第四季經常性營收為3.247億美元，成長15%，總營收較去年同期成長16%。

As Toby noted, our sales team had another solid quarter.

正如托比所指出的，我們的銷售團隊又度過了一個穩定的季度。

And we're pleased to come in $5.5 million above the top end of our revenue guidance, with the majority of our Q4 beat coming from recurring and other revenue.

我們很高興能比我們的收入指導上限高出 550 萬美元，第四季度的大部分收入來自經常性收入和其他收入。

Adjusted EBITDA for the fourth quarter was $120.2 million or 33.6% margin and exceeded the top end of our guidance by $13.1 million.

第四季調整後 EBITDA 為 1.202 億美元，利潤率為 33.6%，超出我們指導上限 1,310 萬美元。

For fiscal '24, adjusted EBITDA was $505.6 million or 36% margin and an increase of 35% on a dollar basis from fiscal '23, resulting in leverage of 410 basis points.

24 財年調整後的 EBITDA 為 5.056 億美元，利潤率為 36%，以美元計算比 23 財年增加了 35%，槓桿率為 410 個基點。

Excluding the impact of interest income on funds held for clients, adjusted EBITDA margin for fiscal '24 was 30%, reflecting operating leverage of 280 basis points versus fiscal '23.

排除利息收入對客戶持有資金的影響，24 財年調整後的 EBITDA 利潤率為 30%，反映出與 23 財年相比營運槓桿為 280 個基點。

Additionally, we continue to show strong progress on free cash flow, with fiscal '24 free cash flow margin of 21.8%, up 340 basis points and an increase of 42% on a dollar basis from fiscal '23.

此外，我們在自由現金流方面繼續取得強勁進展，24 財年自由現金流利潤率為 21.8%，比 23 財年上升了 340 個基點，以美元計算增長了 42%。

Excluding the impact of interest income on funds held for clients, we drove 170 basis points of operating free cash flow leverage in fiscal '24 to 14.4% margin.

排除利息收入對客戶持有資金的影響，我們將 24 財年的營運自由現金流槓桿提高了 170 個基點，利潤率達到 14.4%。

Given our increased profitability and limited remaining NOLs and credits, we expect to become a full cash taxpayer in fiscal '25, which will create a free cash flow margin headwind in fiscal '25.

鑑於我們獲利能力的提高以及有限的剩餘 NOL 和信貸，我們預計將在 25 財年成為全額現金納稅人，這將在 25 財年造成自由現金流利潤率的逆風。

But we remain confident in our ability to continue expanding free cash flow margin in the coming years.

但我們對未來幾年繼續擴大自由現金流利潤率的能力仍然充滿信心。

We continue to make significant investments in research and development.

我們繼續在研發方面進行大量投資。

And to understand our overall investment in R&D, it is important to combine both what we expense and what we capitalize.

要了解我們在研發方面的整體投資，重要的是要結合我們的支出和資本化。

On a combined non-GAAP basis, total R&D investments were 14.6% of revenue in the fourth quarter.

以非公認會計原則合併計算，第四季研發總投資佔營收的 14.6%。

And on a full-year basis, total R&D investments were 14.2% of revenue.

全年研發投入佔營收的14.2%。

On a dollar basis, our year-over-year investment in total R&D increased by 18% in fiscal '24 when compared to fiscal '23.

以美元計算，與 23 財年相比，24 財年我們的研發總投資年增了 18%。

We continue to believe our investments in R&D provide us with valuable product differentiation and the ability to drive future growth as we deliver the most modern platform in the industry.

我們仍然相信，我們在研發方面的投資為我們提供了寶貴的產品差異化和推動未來成長的能力，因為我們提供了業界最現代化的平台。

On a non-GAAP basis, sales and marketing expenses were 22.5% of revenue in the fourth quarter and 21.2% of revenue in fiscal '24.

以非公認會計準則計算，銷售和行銷費用佔第四季營收的 22.5%，佔 2024 財年營收的 21.2%。

On a non-GAAP basis, G&A costs were 9.6% of revenue in the fourth quarter versus 10.7% in the same period last year.

以非 GAAP 計算，第四季 G&A 成本佔營收的 9.6%，去年同期為 10.7%。

Full-year G&A costs were 9.3% of revenue as compared to 11% in fiscal '23, representing 170 basis points of leverage.

全年 G&A 成本佔營收的 9.3%，而 23 財年為 11%，相當於 170 個基點的槓桿。

And we remain focused on consistently leveraging G&A expenses on an annual basis.

我們仍專注於每年持續利用一般管理費用。

Briefly covering our GAAP results.

簡要介紹我們的 GAAP 結果。

For Q4, gross profit was $240.4 million, operating income was $62.9 million, and net income was $48.8 million.

第四季度，毛利為 2.404 億美元，營業收入為 6,290 萬美元，淨利為 4,880 萬美元。

For the full year, gross profit was $960.8 million, operating income was $260.1 million, and net income was $206.8 million.

全年毛利為 9.608 億美元，營業收入為 2.601 億美元，淨利為 2.068 億美元。

In regard to funds held for clients and interest income, our average daily balance of client funds was $2.8 billion in Q4 and $2.6 billion for fiscal '24.

關於為客戶持有的資金和利息收入，我們第四季的客戶資金日均餘額為 28 億美元，24 財年為 26 億美元。

We are estimating the average daily balance will be approximately $2.5 billion in Q1 of fiscal '25, with an average annual yield of approximately 450 basis points, representing approximately $28 million of interest income on client-held funds in Q1.

我們預計 25 財年第一季的日均餘額約為 25 億美元，平均年收益率約為 450 個基點，相當於第一季客戶持有資金的利息收入約為 2,800 萬美元。

On a full-year basis, we are estimating the average daily balance will be $2.75 billion in fiscal '25, with an average yield of approximately 390 basis points, representing approximately $107 million of interest income on funds held for clients.

就全年而言，我們預計 25 財年的日均餘額將為 27.5 億美元，平均收益率約為 390 個基點，相當於為客戶持有的資金帶來約 1.07 億美元的利息收入。

In regards to interest rates, our guidance assumes four 25-basis-point rate cuts during fiscal '25, with the cut assumed in September, November, March, and May reflected in guidance.

在利率方面，我們的指導假設在 25 財年期間有四次降息 25 個基點，其中 9 月、11 月、3 月和 5 月的降息假設反映在指引中。

Additionally, given the confidence we have in our business and our strong cash flows, we repurchased approximately 1.1 million shares of common stock at an average price of $142.82 per share for $150 million in aggregate repurchases during Q4.

此外，鑑於我們對業務的信心和強勁的現金流，我們以每股 142.82 美元的平均價格回購了約 110 萬股普通股，第四季度回購總額為 1.5 億美元。

As a reminder, we have $350 million remaining under our share repurchase program.

提醒一下，我們的股票回購計畫還剩 3.5 億美元。

We also closed Q4 with $401.8 million in cash and cash equivalents on our balance sheet.

在第四季末，我們的資產負債表上還有 4.018 億美元的現金和現金等價物。

In fiscal '24, we also drove 200 basis points of leverage in stock-based compensation expense.

在 24 財年，我們也將股票薪酬支出的槓桿率提高了 200 個基點。

And in fiscal '25, we expect to drive continued leverage in stock-based compensation towards our target of less than 10% of revenue and are committed to driving incremental leverage in stock-based comp annually going forward.

在 25 財年，我們預計將繼續推動股票薪酬槓桿率達到低於收入 10% 的目標，並致力於未來每年推動股票薪酬槓桿率的增量。

Finally, I'd like to provide our financial guidance for Q1 and full fiscal '25, which includes the impact of the four 25-basis-point interest rate cuts in fiscal '25, as mentioned earlier, and roughly flat workforce levels in fiscal '25 versus fiscal '24.

最後，我想提供我們對第一季度和整個 25 財年的財務指導，其中包括如前所述的 25 財年四次 25 個基點降息的影響，以及 25 財年勞動力水平大致持平的影響。 25 與財政'24。

For the first quarter of fiscal '25, recurring and other revenue is expected to be in the range of $325.5 million to $330.5 million or approximately 12.5% growth over first quarter of fiscal '24 recurring and other revenue.

25財年第一季的經常性和其他收入預計將在3.255億美元至3.305億美元之間，比24財年第一季的經常性和其他收入增長約12.5%。

And total revenue is expected to be in the range of $353.5 million to $358.5 million or approximately 12.1% growth over first-quarter fiscal '24 total revenue.

總營收預計將在 3.535 億美元至 3.585 億美元之間，比 2024 財年第一季總營收成長約 12.1%。

Adjusted EBITDA is expected to be in the range of $116.5 million to $120.5 million.

調整後 EBITDA 預計在 1.165 億美元至 1.205 億美元之間。

And adjusted EBITDA, excluding interest income on funds held for clients, is expected to be in the range of $88.5 million to $92.5 million, which represents approximately 60 basis points of leverage over Q1 of fiscal '24.

調整後的 EBITDA（不包括為客戶持有的資金的利息收入）預計將在 8,850 萬美元至 9,250 萬美元之間，這相當於 24 財年第一季的槓桿率約為 60 個基點。

And for fiscal year '25, recurring and other revenue is expected to be in the range of $1.405 billion to $1.420 billion or approximately 10.2% growth over fiscal '24 recurring and other revenue.

25 財年的經常性和其他收入預計將在 14.05 億美元至 14.20 億美元之間，比 24 財年的經常性和其他收入增長約 10.2%。

Total revenue is expected to be in the range of $1.512 billion to $1.527 billion or approximately 8.3% growth over fiscal '24.

總收入預計在 15.12 億美元至 15.27 億美元之間，比 24 財年增長約 8.3%。

Adjusted EBITDA is expected to be in the range of $533 million to $543 million.

調整後 EBITDA 預計在 5.33 億美元至 5.43 億美元之間。

Adjusted EBITDA, excluding interest income on funds held for clients, is expected to be in the range of $426 million to $436 million, which represents approximately 50 basis points of leverage over fiscal '24.

調整後的 EBITDA（不包括為客戶持有的資金的利息收入）預計將在 4.26 億美元至 4.36 億美元之間，相當於 24 財年的槓桿率約為 50 個基點。

Despite the macro headwinds we faced in '24, we're pleased to finish the year with 19% total revenue growth, 17% recurring revenue growth, and adjusted EBITDA margin of 36% and a Rule of 55 overall performance.

儘管我們在 24 年面臨宏觀阻力，但我們很高興以 19% 的總收入成長、17% 的經常性收入成長、36% 的調整後 EBITDA 利潤率和 55 的整體業績來結束這一年。

As we kick off fiscal '25, we remain confident in our differentiated value proposition, go-to-market strategy, operational strength, and product road map.

在我們開啟 25 財年之際，我們對我們的差異化價值主張、進入市場策略、營運實力和產品路線圖仍然充滿信心。

And we have a high level of confidence in our ability to continue driving durable revenue growth and increasing margins as we execute against our multiyear goal of achieving $2 billion in total revenue.

我們對繼續推動持久收入成長和提高利潤率的能力充滿信心，因為我們正在執行總收入 20 億美元的多年目標。

I would now like to turn the call over to Steve for final remarks.

我現在想將電話轉給史蒂夫，讓他發表最後的評論。

Thanks, Ryan.

謝謝，瑞安。

As announced in our earnings release, I'm excited to move into the role of Executive Chairman of the Board effective August 5.

正如我們在財報中所宣布的那樣，我很高興從 8 月 5 日起擔任董事會執行主席。

This is the natural evolution of the co-CEO model we put in place in March of 2022.

這是我們於 2022 年 3 月實施的聯合執行長模式的自然演變。

I have full confidence that under Toby's leadership as President and CEO of Paylocity, we'll continue its market-leading position.

我完全相信，在 Paylocity 總裁兼執行長 Toby 的領導下，我們將繼續保持其市場領先地位。

My role as Executive Chairman will allow me to continue to focus on product and corporate strategy, while working closely with Toby and the Paylocity leadership team to continue delivering the most modern platform in the industry.

身為執行主席，我將能夠繼續專注於產品和公司策略，同時與 Toby 和 Paylocity 領導團隊密切合作，繼續提供業界最現代化的平台。

As Executive Chairman, I will continue to dedicate my time and energy to Paylocity, including participating on all future earnings calls.

身為執行主席，我將繼續將時間和精力奉獻給 Paylocity，包括參加所有未來的財報電話會議。

Looking back, I'm very proud of everything we have accomplished, and I'm very excited about our future opportunities.

回顧過去，我對我們所取得的一切感到非常自豪，並對我們未來的機會感到非常興奮。

With that, we are ready for questions.

至此，我們準備好提問了。

(Operator Instructions) Brad Reback, Stifel.

（操作員說明）Brad Reback，Stifel。

Great.

偉大的。

Thanks very much.

非常感謝。

And Steve, it's been a great run, and I know that will continue.

史蒂夫，這是一次偉大的經歷，我知道這種情況會繼續下去。

Given your experience, Steve and Toby, in the market for as long as you've been in it, can you help frame up what's going on?

史蒂夫和托比，根據你們在市場上的經驗，你們能幫助我們了解正在發生的事情嗎？

Obviously, growth has meaningfully decelerated across the industry.

顯然，整個產業的成長明顯放緩。

Is this purely cyclical, or are there some secular issues at play here as well?

這純粹是週期性的，還是還有一些長期問題在起作用？

Thanks.

謝謝。

Sure.

當然。

I'll start, Brad.

我要開始了，布拉德。

I think you've got a few things going on.

我認為你有一些事情正在發生。

So I think, first of all, we remain pretty excited about the size of the opportunity.

所以我認為，首先，我們對這個機會的規模仍然感到非常興奮。

So we obviously have a small penetration rate in terms of the available TAM.

因此，就可用 TAM 而言，我們的滲透率顯然很小。

And so we still think there's a great opportunity to be able to grow.

因此，我們仍然認為有一個很好的發展機會。

You've got certainly some law of large numbers.

你肯定有一些大數定律。

And then growing at this size and scale, certainly, has been impactful.

當然，以這樣的規模和規模發展是有影響力的。

We've called out the most recent impact in terms of whether it was employees on the platform or some of the economic headwind we saw in the sales cycle.

我們已經指出了最近的影響，無論是平台上的員工還是我們在銷售週期中看到的一些經濟逆風。

We see certainly some impact from that.

我們當然看到了一些影響。

And so I think you get to a bit of a new normal where we still have an opportunity to be a growth company focused on that $2 billion target.

所以我認為你已經進入了一種新常態，我們仍然有機會成為一家專注於 20 億美元目標的成長型公司。

And at the same time, we've shifted our focus to driving profitability.

同時，我們已將重點轉向提高獲利能力。

And so we're balancing that equation.

所以我們正在平衡這個等式。

I think when you put all that together, we're still pretty excited about the story that we've got in front of us and the size of the opportunity.

我認為當你把所有這些放在一起時，我們仍然對我們面前的故事和機會的大小感到非常興奮。

That's great.

那太棒了。

Thanks very much.

非常感謝。

Samad Samana, Jefferies.

薩馬德·薩馬納，杰弗里斯。

Hi, this is Mason Marion, on for Samad.

大家好，我是梅森·馬里昂，代表薩馬德發言。

Thanks for taking our question.

感謝您提出我們的問題。

So congrats on the move, Steve.

恭喜你搬家，史蒂夫。

Can you talk about why you felt this is the right time to step back in the co-CEO role?

您能談談為什麼您認為現在是辭去聯席執行長職務的最佳時機嗎？

And glad to hear you will still be joining us on these calls in the future.

很高興聽到您將來仍會參加這些電話會議。

Yeah.

是的。

It feels pretty natural, I think, internally.

我認為，從內心來說，這感覺很自然。

Toby has been co-CEO now for over two years, and I have been gradually transitioning different functions to him.

托比擔任聯合執行長已有兩年多了，我一直在逐步將不同的職能轉移給他。

This past year, I have largely been focused on our product and technology organization.

在過去的一年裡，我主要專注於我們的產品和技術組織。

So that will obviously transition to him formally, and that team will report to Toby.

因此，這顯然將正式轉移給他，該團隊將向托比報告。

However, I will still be involved in the product initiatives, as I have before.

不過，我還是會像以前一樣參與產品計劃。

I'll be involved with our corporate strategy team as we kind of chart out our course over the next several years.

我將參與我們的企業策略團隊，制定未來幾年的發展方向。

So I think this is the stuff that I'm the best at, to be quite honest with you.

所以說實話，我認為這是我最擅長的事。

It gives me an opportunity to focus on that.

這讓我有機會專注於此。

And I think the second part is I've got a tremendous amount of confidence in both Toby and the team of executives that we have around so that I feel like I'm in a position to do that.

我認為第二部分是我對托比和我們周圍的高階主管團隊充滿信心，所以我覺得我有能力做到這一點。

Thank you.

謝謝。

Scott Berg, Needham & Company.

史考特‧伯格，李約瑟公司。

Hi, everyone.

大家好。

And Steve, good luck on the next step.

史蒂夫，祝下一步好運。

And Toby, I hope you have really big, broad shoulders.

托比，我希望你有又大又寬的肩膀。

You might need them.

你可能需要它們。

Couple of questions for me.

有幾個問題想問我。

Let's start off with the guidance for the year.

讓我們從今年的指導開始。

The guidance, at least, to me, imply subscription revenue growth of sub-10% exiting the year.

至少對我來說，該指引意味著今年訂閱收入將成長低於 10%。

How do we think about kind of breaking that down a little bit between ARPU growth and net new customer adds?

我們如何考慮在 ARPU 成長和新客戶淨增加之間稍微細分一下？

Your growth between accounts and customers pretty balanced last year, roughly 8% in each of those categories.

去年，您的帳戶和客戶之間的成長相當平衡，每個類別的成長率約為 8%。

But if we're going to be in the sub-10% category, how do we think about what that kind of blend looks like?

但如果我們要屬於低於 10% 的類別，我們如何考慮這種混合是什麼樣子的呢？

Hey, Scott.

嘿，斯科特。

I mean, I think you saw a pretty balanced performance this last year.

我的意思是，我認為去年你看到了相當平衡的表現。

And I think that came from the result of executing pretty well from a go-to-market perspective, driving, I think, a ton of new products to market over the course of the last, call it, 1.5 years or so and having success with those products, both in terms of attached to new deals and then being able to sell back into the customer base.

我認為這是從進入市場的角度來看執行得很好的結果，我認為，在過去的 1.5 年左右的時間裡，推動了大量新產品上市，並取得了成功對於這些產品，無論是附加到新交易還是能夠回銷給客戶群。

And I think, ultimately, then we also had strong execution from an operations perspective and providing service to our clients.

我認為，最終，從營運角度來看，我們也擁有強大的執行力，並為客戶提供服務。

So I think had a pretty balanced year.

所以我認為這是非常平衡的一年。

As you know, those numbers in the mix has pushed around in prior years a little bit.

如您所知，這些數字在前幾年有所變化。

And I think as we jump into fiscal '25, we're really pressing on all the same things, driving strong go-to-market execution, continuing to drive from a product execution and from an attach and penetration perspective, and then, ultimately, same thing from an ops standpoint, delivering world-class service to our clients.

我認為，當我們進入 25 財年時，我們確實在做同樣的事情，推動強大的市場執行力，繼續從產品執行以及附加和滲透的角度推動，然後，最終，從營運的角度來看也是如此，為我們的客戶提供世界一流的服務。

So yeah, I think it has changed.

所以是的，我認為它已經改變了。

The mix is different in every single year.

每年的組合都不同。

I think we're happy with the result from a balance perspective in fiscal '24.

我認為從平衡的角度來看，我們對 24 財年的結果感到滿意。

And I think as we jump into '25, it's continuing to drive on those three things and probably expect that to be -- you don't know exactly where it's going to land throughout the course of the year, but probably expect a relative level of balance in those different factors.

我認為，當我們進入 25 年時，它會繼續推動這三件事，並且可能預計會是這樣——你不知道它在這一年中到底會落在哪裡，但可能會期望一個相對水平這些不同因素的平衡。

Understood.

明白了。

Helpful.

有幫助。

And then, Toby, I think you noted that your sales capacity is up 8% year over year going in this year.

然後，托比，我想您已經注意到，今年您的銷售能力同比增長了 8%。

You're fully staffed for the busy selling season.

您已為繁忙的銷售季節配備了充足的人員。

But how do we think about your investments here going forward through the balance of your fiscal year here?

但我們如何看待你們在本財政年度剩餘時間的投資呢？

What have you contemplated for capacity growth into next spring?

您對明年春季的產能成長有何預期？

And then how flexible are those plans assuming that the macro might potentially change both one way or the other?

那麼，假設宏觀經濟可能以一種或另一種方式發生變化，這些計劃的靈活性有多大？

Yeah.

是的。

I think we've maintained a fair amount of flexibility as we go through the course of fiscal '25.

我認為我們在 25 財年期間保持了相當程度的靈活性。

And I think that's been -- that's certainly been our thinking and what we've said over the last couple of quarters.

我認為這肯定是我們的想法以及我們在過去幾個季度中所說的話。

And I think the recognition coming into '25 was that we want to be rightsized for the opportunity in front of us in terms of go-to-market capacity.

我認為進入 25 世紀的認識是，我們希望在進入市場的能力方面針對擺在我們面前的機會進行調整。

And as Steve said, I think we feel really good about the opportunity out there in the market.

正如史蒂夫所說，我認為我們對市場上的機會感到非常滿意。

Coming in with 8% year-over-year growth in reps, I think, allows us to press on the productivity levers as well as we've launched a lot of new products.

我認為，代表數量同比增長 8%，使我們能夠提高生產力，並推出了許多新產品。

We feel really good about the go-to-market motion.

我們對上市行動感到非常滿意。

And I think coming in fully staffed, with the ability to attract, I think, the best sales and go-to-market talent in the industry, I think we feel really good about how we're positioned coming into the year.

我認為，隨著人員配備齊全，有能力吸引業內最優秀的銷售和進入市場的人才，我認為我們對今年的定位感到非常滿意。

And if we get an uplift in terms of what the macro looks like, I think we have the flexibility that would allow us to even move that up from where we're starting and coming into the fiscal year.

如果我們在宏觀方面取得進展，我認為我們擁有靈活性，甚至可以讓我們將其從我們開始的位置提升到進入本財年。

Great.

偉大的。

Very helpful.

非常有幫助。

Thank you for taking my questions.

感謝您回答我的問題。

Mark Marcon, Baird.

馬克馬爾孔，貝爾德。

Hey, good afternoon, and thanks for taking my questions.

嘿，下午好，感謝您回答我的問題。

Steve, it has been a tremendous run, and glad that you're going to stay.

史蒂夫，這是一次巨大的努力，很高興你能留下來。

And Toby, congrats, in terms of taking on the sole role.

恭喜托比擔任唯一的角色。

I'm wondering, with regards to the comments on the back-to-base motion, can you tell us how big the internal sales group is in terms of that back-to-base motion?

我想知道，關於回基地動議的評論，您能否告訴我們，就回基地動議而言，內部銷售團隊有多大？

And how much -- when we take a look at the bookings over the course of this year, how much was from new logos versus upsells into the existing base?

當我們查看今年的預訂量時，有多少是來自新商標與現有基礎的追加銷售？

And how do you think that could trend?

您認為這種趨勢會如何？

Yeah.

是的。

I mean, maybe just start with a little bit of the history.

我的意思是，也許只是從一些歷史開始。

I think if you go back to -- our back-to-base motion really would have started in earnest coming off of ACA.

我想如果你回到——我們的回歸基地動議真的會從 ACA 中認真開始。

And that was coming out of, I think, 2016 general time frame-wise.

我認為，從 2016 年的整體時間範圍來看，這一點是顯而易見的。

And, yeah, I think that was really the start of that motion and being able to go after that opportunity for us.

是的，我認為這確實是該動議的開始，並且能夠為我們抓住這個機會。

I think we've continued to invest in that more so every single year.

我認為我們每年都會繼續在這方面進行更多投資。

And part of that is -- as we've grown the client base, part of that is we've also grown the product set that we have available to sell back into the base and deliver incremental value to our existing clients.

其中一部分是－隨著我們擴大客戶群，我們也擴大了可用於回售給客戶群並為現有客戶提供增量價值的產品集。

And I think that's been the direction of it over the last handful-plus of years.

我認為這就是過去幾年的發展方向。

And in most years, we've invested headcount growth in that.

在大多數年份裡，我們都在這方面投資了員工人數成長。

And that team has been higher than the overall -- coming off of a smaller base then and a bigger one now.

這支球隊的表現一直高於整體——當時的基數較小，而現在的基數更大。

But that's been the investment philosophy.

但這就是投資理念。

I think it's paid off really well for us, both in terms of being able to drive incremental product attachment, penetration, and incremental revenue growth.

我認為這對我們來說確實得到了很好的回報，無論是在能夠推動增量產品依附性、滲透率還是增量收入成長方面。

But it's still smaller on a relative basis to our focus on going after new logos and new business in the market.

但相對於我們在市場上追求新標誌和新業務的重點來說，它仍然較小。

And I think that's -- but as we come into '25 and even as we look forward, I think our philosophy around investing there would remain true and constant in terms of continuing to deploy dollars there.

我認為，但當我們進入 25 世紀，甚至在我們展望未來時，我認為我們圍繞在那裡投資的理念將在繼續在那裡部署美元方面保持真實和不變。

And ultimately, it's about being able to bring back solutions to our customers who might not have bought those products or those solutions at the outset of their partnership with us and being able to just keep providing more and more value to our client base.

最終，我們能夠為那些在與我們合作之初可能沒有購買這些產品或解決方案的客戶帶來解決方案，並能夠繼續為我們的客戶群提供越來越多的價值。

Can you say like how big it is in terms of the incremental bookings that you had this year relative to the total bookings and where that could ultimately go?

您能說一下今年的增量預訂量相對於總預訂量有多大嗎？

Yeah.

是的。

I don't think we've done that with any of our different teams.

我認為我們還沒有對任何不同的團隊做過這樣的事情。

But I guess, try to give you a pretty good directional view of how we've thought about the opportunity.

但我想，請嘗試讓您對我們如何看待這個機會有一個很好的方向性了解。

And I think from a strategy perspective and then into the execution, I think the real focus is on continuing to drive new unit growth, continuing to drive the employees on the platform, and also expanding the product set to be able to continue to take advantage of that opportunity as we look forward and again, ultimately, just being able to deliver incremental value year in and year out to our client base.

我認為從策略角度以及執行角度來看，我認為真正的重點是繼續推動新部門的成長，繼續推動平台上的員工，並擴大產品集，以便能夠繼續利用優勢我們期待並再次期待這個機會，最終能夠年復一年地為我們的客戶群提供增量價值。

Great.

偉大的。

And then can you just comment with regards to -- you mentioned success in terms of engagement tools.

然後您可以就您提到的參與工具方面的成功發表評論嗎？

LMS is getting good upsell.

LMS 的追加銷售情況良好。

On some of the upsells, obviously, some of them you're pioneering.

顯然，在某些加售方面，有些是您開創的。

And they didn't exist before, not broadly available.

而且它們之前並不存在，也沒有廣泛使用。

But things like LMS, which have been around, are you displacing other players?

但是像 LMS 這樣的東西已經存在了，你會取代其他玩家嗎？

Or some of your clients just basically saying, hey, this sounds like a great tool that we haven't used before.

或者您的一些客戶基本上只是說，嘿，這聽起來像是我們以前從未使用過的很棒的工具。

Yeah.

是的。

I think as we think about our new product strategy, you can kind of fit it into a couple of buckets.

我認為，當我們考慮我們的新產品策略時，您可以將其分為幾個類別。

So one ends up being kind of an innovation in the market where we're often first to market, and we're able to sell that as a new module.

因此，它最終成為市場上的一種創新，我們通常是第一個上市的，並且我們能夠將其作為新模組出售。

And then the second category probably refers to kind of LMS or even think about that as scheduling plus, where we have an existing offering.

第二類可能指的是一種 LMS，甚至可以將其視為調度附加，我們有現有的產品。

And we've enhanced it to a point where there's additional capabilities that we think we can monetize and bundle.

我們已經將其增強到具有我們認為可以貨幣化和捆綁的附加功能的程度。

And so LMS was a new bundle that we had with additional content that was available from a compliance perspective for customers that they saw value in.

因此，LMS 是一個新的捆綁包，我們提供了附加內容，從合規角度為客戶提供了他們認為有價值的附加內容。

So we have the opportunity there to sell that to new customers as they come on board, but we also have the opportunity to go back to customers.

因此，我們有機會在新客戶加入時將其出售給他們，但我們也有機會回饋客戶。

And so as we think about the product opportunity going forward, we look for both of those opportunities.

因此，當我們考慮未來的產品機會時，我們會尋找這兩個機會。

How do we add more value?

我們如何增加更多價值？

By taking our products to the next level and coming up with new bundles and packages that offer them value.

透過將我們的產品提升到一個新的水平，並推出為它們提供價值的新捆綁包和套餐。

And then how do we come up with new and innovative ideas that allow us to continue to be the most modern platform in the industry?

那麼我們該如何提出新的創新想法，讓我們能夠繼續成為業界最現代化的平台？

Great.

偉大的。

Thank you.

謝謝。

Brian Peterson, Raymond James.

布萊恩彼得森，雷蒙德詹姆斯。

Thank you, everyone.

謝謝大家。

And Steve, it's been a heck of a ride.

史蒂夫，這真是一段艱難的旅程。

I'm glad you're staying on.

我很高興你留下來。

And Toby, I'll echo a well-deserved congratulations.

還有托比，我將表示當之無愧的祝賀。

So we've seen growth rates moderate across the industry.

因此，我們看到整個行業的成長率放緩。

I appreciate there's still a big opportunity ahead as you look towards $2 billion in revenue.

我很高興您的收入預計將達到 20 億美元，前方仍有巨大機會。

But I'm curious if there's anything that's changed as you're thinking about your guidance strategy.

但我很好奇當你考慮你的指導策略時是否有任何改變。

No, I don't think there has been.

不，我認為沒有。

I mean, I think we've been pretty consistent in our guidance philosophy over the course of time.

我的意思是，我認為隨著時間的推移，我們的指導理念一直非常一致。

And I think we come into fiscal '25 with that same philosophy.

我認為我們以同樣的理念進入 25 財年。

And yeah, I think we try and call what we can see right in front of us at the beginning and evolve that as we go throughout the course of the year.

是的，我認為我們會嘗試稱呼我們一開始就可以看到的東西，並在這一年中不斷發展。

Yeah, Brian, I'd agree.

是的，布萊恩，我同意。

I think we, obviously, had a strong fourth quarter, particularly on the recurring revenue side, really happy with where the beat came in.

我認為，顯然，我們在第四季表現強勁，特別是在經常性收入方面，我們對這一節奏感到非常滿意。

Feel like we've got a lot of momentum headed into fiscal '25.

感覺我們在進入 25 財年時有很大的動力。

But I think, to Toby's point, as we start out any fiscal year, we certainly desire to get back to a beat and raise cadence.

但我認為，就托比的觀點而言，當我們開始任何財政年度時，我們當然希望回到正軌並提高節奏。

I think you see a higher revenue growth in the first quarter.

我認為第一季的營收成長會更高。

Was that -- closer to us and more visible and taking a sort of prudent and measured approach as we think about the balance of the fiscal year.

是不是——離我們更近、更明顯，並在我們考慮本財年的平衡時採取一種審慎和慎重的方法。

I think with some strong execution, we feel really good about this plan and certainly feel good about the momentum across both product and operations and sales as well.

我認為，透過強而有力的執行，我們對這個計劃感到非常滿意，當然也對產品、營運和銷售的勢頭感到滿意。

It's good to hear.

很高興聽到。

Maybe following up just on sales hiring.

也許只是跟進銷售招募。

I'm curious if anything has changed in terms of the types of reps that you may be looking to bring in.

我很好奇您可能希望引進的代表類型是否發生了變化。

And anything in terms of the type of people that are available in the current environment?

目前環境中可用的人員類型有哪些？

Thanks.

謝謝。

Yeah, sure.

是的，當然。

It's a good question.

這是一個好問題。

I think Toby made the call out as well that we've been pretty happy getting fully staffed.

我想托比也表示我們很高興能夠配備齊全的人員。

And I would say, we had very low turnover, certainly, when you think of the performing category this year.

我想說，當你想到今年的表演類別時，我們的營業額當然非常低。

So not only were we fully staffed, but we came in with a really strong team that we were able to retain going into the year.

因此，我們不僅人員配備齊全，而且還擁有一支非常強大的團隊，我們能夠保留到這一年。

I think that really speaks to the position that we have in the marketplace.

我認為這確實說明了我們在市場中的地位。

The reps often want to be able to sell the best product in the marketplace.

銷售代表通常希望能夠銷售市場上最好的產品。

And so we feel good about that.

所以我們對此感覺良好。

We continue to hire mostly with industry experience, so that would be another point I would make.

我們繼續僱用大部分具有行業經驗的人，所以這將是我要說的另一點。

We're able to bring on talent.

我們有能力引進人才。

Sometimes, it comes from a competitor.

有時，它來自競爭對手。

Sometimes, they've got prior experience in the industry.

有時，他們有該行業的先前經驗。

But we definitely feel like those folks can ramp faster.

但我們確實覺得這些人可以更快進步。

And so that is another element of our strategy in terms of building the sales force.

因此，這是我們建立銷售團隊策略的另一個要素。

And so all three of those elements were clicking going into this fiscal year.

因此，所有這三個要素在進入本財年時都表現出色。

Great.

偉大的。

Thank you.

謝謝。

Jared Levine, TD Cowen.

賈里德·萊文，TD·考恩。

Thank you.

謝謝。

Can you discuss how top-of-funnel activity and pace of prospective client decision making has trended since the last earnings call?

您能否討論一下自上次財報電話會議以來漏斗頂部的活動和潛在客戶決策的節奏趨勢如何？

So I think we highlighted on the last couple of earnings calls that we were definitely seeing good activity top of funnel.

因此，我認為我們在最近幾次財報電話會議上強調，我們肯定在漏斗頂部看到了良好的活動。

Think about that as first-time appointment opportunities.

將其視為首次約會的機會。

We were definitely seeing maybe a little bit longer decision cycles, particularly upmarket.

我們肯定會看到決策週期可能會更長一些，尤其是高端市場。

And we are certainly making some changes in that part of the sales force just to be able to drive efficiency.

當然，我們正在對這部分銷售人員進行一些改變，以提高效率。

So we feel like going into the start of this fiscal year, we've been able to continue to see strong top-of-funnel activity.

因此，我們認為進入本財年之初，我們能夠繼續看到強勁的漏斗頂部活動。

We've been able to drive, I think, a better sales process and a more efficient sales process.

我認為，我們已經能夠推動更好的銷售流程和更有效率的銷售流程。

The reality is those larger clients take longer to implement and start.

現實情況是，那些較大的客戶需要更長的時間來實施和啟動。

And so I think we called out last quarter that you start to see the success of that on the back half of that year.

因此，我認為我們在上個季度指出，您將在今年下半年開始看到它的成功。

You get a fair number of starts in January.

一月份你會得到相當多的啟動機會。

So we're off to a good start.

所以我們有了一個好的開始。

We feel good about the plan that we've got in front of us, and the activity levels are strong.

我們對眼前的計畫感覺良好，而且活動量也很高。

Okay.

好的。

Great.

偉大的。

And then in terms of the 4Q [ex-float healthy beat], can you discuss what drove that beat there?

然後就第四季[前浮動健康節拍]而言，您能討論一下是什麼推動了這一節拍嗎？

Sure.

當然。

I think it was, as you said, that beat really coming from recurring revenue.

我認為，正如您所說，這種節拍確實來自經常性收入。

I think sales activity was strong in the quarter.

我認為本季的銷售活動很強勁。

We felt really good about where retention ended from a fiscal-year perspective.

從財政年度的角度來看，我們對保留的結束情況感到非常滿意。

We probably saw some incremental positive trends from a workforce-level perspective.

從勞動力層面來看，我們可能看到了一些漸進的正面趨勢。

I wouldn't call that out as particularly material, but was incrementally better than expectations.

我不會說這是特別重要的，但它逐漸好於預期。

So I think it's really a combination of each of those items that drove a better fourth quarter than maybe it was initially expected.

因此，我認為這實際上是所有這些因素的結合，推動了第四季度的業績比最初預期的更好。

Just to clarify, were client employment levels flat quarter over quarter?

只是想澄清一下，客戶就業水準季度環比持平嗎？

Or was there still some sequential pressure?

或仍存在一些順序壓力？

We did not see the same sequential pressure that we saw earlier in the year, up a bit year over year sequentially.

我們沒有看到今年早些時候看到的同樣的連續壓力，逐年上升。

That really started to normalize.

這確實開始正常化。

Perfect.

完美的。

Thank you.

謝謝。

Terrell Tillman, Truist Securities.

特雷爾·蒂爾曼，Truist 證券公司。

Great.

偉大的。

Thanks for taking the questions.

感謝您提出問題。

Steve and Toby, congratulations to you both.

史蒂夫和托比，祝賀你們兩位。

Curious what kind of signals you all are seeing downmarket and in the more traditional mid-market?

好奇你們在低端市場和更傳統的中端市場看到了什麼樣的訊號？

And then I had one follow-up.

然後我進行了一項後續行動。

Thank you.

謝謝。

Yeah.

是的。

We've been pretty happy with the activity levels in kind of our core marketplace.

我們對核心市場的活動水準非常滿意。

So think about that as kind of under 500 employees.

因此，請考慮員工人數不到 500 人的情況。

That's where we have the bulk of our sales force, where we've been in a long time.

這就是我們擁有大部分銷售人員的地方，而且我們已經在那裡待了很長時間了。

We get a lot of our broker referrals coming in that marketplace.

我們在該市場上得到了很多經紀人的推薦。

And so kind of the similar comments, going in really well staffed.

類似的評論也很多，人員配備也非常齊全。

I feel really good about the staffing levels.

我對人員配備水準感覺非常好。

Ryan just called out, certainly, sales was one of the reasons we beat in fourth quarter; so coming into this year with a fair amount of momentum.

瑞安剛剛指出，當然，銷售是我們第四季表現出色的原因之一；因此，今年的發展勢頭相當強勁。

And the top-of-funnel comments would be the same.

漏斗頂部的評論也是一樣的。

We're seeing good top-of-funnel activity in the upmarket space as well as our core.

我們在高端市場以及我們的核心領域看到了良好的漏斗頂部活動。

Much appreciated.

非常感謝。

And then if rates move aggressively over the next couple of years, does that change your thinking around long-term margin targets?

那麼，如果未來幾年利率大幅波動，這是否會改變您對長期利潤目標的看法？

And if so, are those still achievable?

如果是這樣，這些目標還能實現嗎？

Yeah.

是的。

I think we obviously reset or increased our margin targets on this call last year and, as I referenced in my prepared remarks, have made significant progress, not only this year, but over the last few years, well into the profitability levels that we have today.

我認為，我們去年在這次電話會議上顯然重新設定或提高了我們的利潤率目標，正如我在準備好的發言中提到的那樣，我們不僅在今年，而且在過去幾年中都取得了重大進展，遠遠達到了我們所擁有的盈利水平今天。

So certainly, there's a potential headwind there.

當然，那裡存在潛在的阻力。

If you look at the guidance for '25, we have four rate cuts assumed, so pretty aggressive rate cut activity over the next 12 months.

如果你看一下 25 年的指引，我們假設有四次降息，因此未來 12 個月的降息活動相當積極。

I think the way that we would think about it is you're seeing us continue to drive leverage ex-float, right?

我認為我們思考這個問題的方式是你看到我們繼續推動槓桿前流通，對嗎？

We've called out what the guidance looks like outside of interest rates.

我們已經指出了利率之外的指導意見。

We're guiding to, call it, 50 to 60 basis points of leverage this fiscal year.

我們預計本財年的槓桿率將達到 50 至 60 個基點。

So obviously, that may be a headwind over time.

顯然，隨著時間的推移，這可能會成為一個阻力。

But I think from an operational standpoint, we expect to be able to continue to drive leverage, both within adjusted EBITDA as well as free cash flow.

但我認為從營運角度來看，我們預計能夠繼續提高槓桿率，無論是在調整後的 EBITDA 還是自由現金流範圍內。

Thank you.

謝謝。

Jacob Roberge, William Blair.

雅各·羅伯格，威廉·布萊爾。

Hi.

你好。

Thanks for taking the question.

感謝您提出問題。

Just on the guidance, has anything changed from a competitive environment perspective that's impacting the guide?

就指南而言，從競爭環境的角度來看，有什麼變化影響了指南嗎？

Or is this mainly just the macro-driven issues and the law of large numbers as you scale?

或者這主要只是宏觀驅動的問題和規模化的大數定律？

Yeah.

是的。

So I think it's probably more the latter.

所以我認為可能更多的是後者。

We're seeing the same competitors in the market.

我們在市場上看到了同樣的競爭對手。

It's always been a pretty competitive environment.

這一直是個競爭相當激烈的環境。

You're typically competing with two or three different other competitors as the customer is evaluating that.

當客戶評估時，您通常會與兩個或三個不同的其他競爭對手競爭。

That dynamic has not changed.

這種動態沒有改變。

Certainly, the law of large numbers, not just with us, is with the competitive set as well.

當然，大數法則不僅適用於我們，也適用於競爭群體。

So we've all gotten bigger.

所以我們都變得更大了。

And so that is definitely a factor.

所以這絕對是一個因素。

But when we look at the size of the opportunity relative to our size today, we still feel pretty comfortable that we can not only execute on the plan in front of us this fiscal year, but we can really set our sights on $2 billion and beyond.

但是，當我們考慮到機會的規模相對於我們今天的規模時，我們仍然感到非常放心，因為我們不僅可以執行本財年擺在我們面前的計劃，而且我們真的可以將目標定為20 億美元甚至更多。

Okay.

好的。

Helpful.

有幫助。

And then if you just had to parse out some of the growth drivers heading into next year, with -- between new logos coming from competitive displacements and then thinking new logos that are being driven from that partner channel motion, and then the last being the expansion motion back into the existing base, which do you feel kind of the most confident in heading into next year and which might maybe be a little bit more pressured in the near term?

然後，如果您必須解析進入明年的一些成長驅動因素，那麼，在來自競爭性替代的新徽標和來自合作夥伴頻道運動驅動的新徽標之間，最後一個是回到現有基地的擴張計劃，您認為哪一個對明年最有信心，哪一個在短期內可能會面臨更大的壓力？

Yeah.

是的。

I mean, I would say, overall, I think we feel good about our relative position coming into the fiscal year.

我的意思是，總的來說，我認為我們對進入本財年的相對地位感覺良好。

Most of your questions are really centered around go-to-market.

您的大多數問題實際上都圍繞著進入市場。

I think we feel good about our staffing levels.

我認為我們對我們的人員配置水平感覺良好。

We feel great about our level of talent across all the go-to-market teams, particularly the sales teams.

我們對所有市場推廣團隊（尤其是銷售團隊）的人才水準感到非常滿意。

Yeah, I think we feel Q4 and then fiscal '24, another year of driving 25%-plus of our new business coming through our referrals from our partners.

是的，我認為我們感覺第四季和 24 財年又是一年，我們透過合作夥伴的推薦推動了 25% 以上的新業務。

And I think have a high degree of confidence in our ability to continue to execute that play as we go through fiscal '25.

我認為，我們對在 25 財年繼續執行這項措施的能力充滿信心。

So I mean, I think we feel good about our starting point coming into the fiscal year.

所以我的意思是，我認為我們對進入本財年的起點感覺良好。

We think we have some momentum around go-to-market.

我們認為我們在進入市場方面有一些動力。

And I think that momentum and the confidence we have is fairly well balanced across each one of the areas that you asked about.

我認為我們所擁有的勢頭和信心在你所問的每個領域都相當平衡。

Yeah, I think the only thing I would add is -- and we've made this clear in the last couple of earnings calls -- we focused a fair amount of time.

是的，我想我唯一要補充的是——我們在過去幾次財報電話會議中已經明確表示了這一點——我們投入了相當多的時間。

We've grown that upmarket team pretty aggressively.

我們非常積極地發展了這個高端團隊。

We've had great success over the last several years.

過去幾年我們取得了巨大的成功。

It certainly was a little bit of a headwind into this year.

今年確實有點逆風。

But as we go into next year, we feel very well positioned with that team.

但當我們進入明年時，我們感覺與該團隊處於非常有利的位置。

That's the one that we called out before that we focused on, and that's the one that we spent more time and attention on.

這是我們之前提出的重點關注的問題，也是我們花費更多時間和注意力的問題。

And if I look back at where we are at the start of this fiscal year with that team versus last year, we are in a much better position.

如果我回顧一下我們在本財年開始時該團隊與去年相比的情況，我們的處境會好得多。

Very helpful.

非常有幫助。

Thanks for taking my questions.

感謝您回答我的問題。

Daniel Jester, BMO Capital Markets.

Daniel Jester，BMO 資本市場。

Great.

偉大的。

Thanks for taking my question.

感謝您提出我的問題。

Maybe one on sort of headcount planning that's coming up this year.

也許是今年即將推出的人員編制計畫。

As you think about a solution like that, it feels like it could be used in use cases beyond just in the HR suite.

當您考慮這樣的解決方案時，感覺它不僅可以用於人力資源套件，還可以用於其他用例。

And so as you start thinking about your road map and the opportunity to expand wallet share within your customers, how are you thinking about selling into potentially different persona in the organization, if at all?

因此，當您開始考慮路線圖以及擴大客戶錢包份額的機會時，您如何考慮向組織中潛在的不同角色進行銷售（如果有的話）？

Yeah.

是的。

It's a great question.

這是一個很好的問題。

I think one of the real values that we offer our customers is just the way we give them a platform to manage all their employee data.

我認為我們為客戶提供的真正價值之一就是我們為他們提供一個管理所有員工資料的平台。

And when you've got all the employees continually logging into the platform, logging on to our mobile app, and using the platform for things like workflows and approvals, it really does start to open up different opportunities.

當所有員工不斷登入平台、登入我們的行動應用程式並使用該平台進行工作流程和審批等操作時，它確實開始開闢不同的機會。

As we -- you think we've been first to market on so many different products.

正如我們——你認為我們是第一個推出如此多不同產品的公司。

You think of video as part of the platform, that probably wasn't something I would have imagined 10 years ago.

你認為影片是平台的一部分，這可能不是我 10 年前想像到的。

So we're really starting to look at how do we leverage that employee data that we have to be able to really help our clients offer more value.

因此，我們真正開始考慮如何利用我們必須能夠真正幫助我們的客戶提供更多價值的員工資料。

Headcount planning has a natural tie to HR.

員工人數規劃與人力資源有著天然的關聯。

As position gets replaced, where a new position gets added, there's approvals, there's workflows.

當職位被替換時，當新職位被加入時，就會有審批和工作流程。

You've got to then tie it into your recruiting platform; then it gets tied into onboarding.

然後你必須將其與你的招募平台連結起來；然後它就與入職連結在一起。

So we're going to continue to maybe push the boundaries of what might have been a traditional HCM by leveraging that data set.

因此，我們將透過利用該資料集繼續突破傳統 HCM 的界限。

And we're very excited.

我們非常興奮。

The CFOs, the persona that we'd be selling headcount planning to largely, they're very much involved in the sale already today.

財務官，我們計劃主要向其出售員工的角色，他們今天已經大量參與了銷售。

So I wouldn't call that out as a new persona.

所以我不會稱之為新角色。

They probably become more of the primary buyer than maybe the decision-maker today.

如今，他們可能更多地成為主要買家，而不是決策者。

But our teams are really used to dealing with that persona.

但我們的團隊確實習慣於處理這種角色。

They have a lot of interaction with the CFOs today.

他們今天與財務長有很多互動。

So that part is probably an easier part of the equation for us.

所以這部分對我們來說可能是等式中比較容易的部分。

Okay.

好的。

That's really helpful.

這真的很有幫助。

Thank you.

謝謝。

And then, Ryan, I think you mentioned about cash tax payments that we're going to see this year and a little bit of a headwind on operating cash flow.

然後，瑞安，我想你提到了今年我們將看到的現金稅支付以及營運現金流的一些阻力。

Did you sort of quantify what that could look like maybe relative to EBITDA margin?

您是否量化了相對於 EBITDA 利潤率的情況？

So not in the prepared remarks, Dan.

所以丹，不在準備好的發言中。

But I think the way to think about that is there's sort of a two-step process for us to becoming a full cash taxpayer.

但我認為思考這個問題的方法是，我們要成為一個完全的現金納稅人，需要分兩步驟。

And you saw it -- step one this year, and you look -- if you look on the cash flows at the supplemental disclosure, you see we paid roughly $50 million of cash taxes this year versus just a few million dollars a year prior.

你看到了——今年的第一步，你看——如果你看看補充披露中的現金流，你會發現我們今年支付了大約5000 萬美元的現金稅，而前一年僅為幾百萬美元。

So that is a headwind that we faced this year.

這是我們今年面臨的逆風。

Obviously, you saw significant increases in overall profitability, working capital improvement.

顯然，您看到整體獲利能力和營運資本改善顯著增加。

So we grew through that, and we continue to leverage free cash flow.

所以我們經歷了這一切，並繼續利用自由現金流。

Next year, we'll have a similar step-up.

明年，我們將進行類似的升級。

So you may be looking at $100 million on the round of cash paid for taxes.

因此，您可能會在這一輪現金繳稅中看到 1 億美元。

So that was the call-out.

這就是呼籲。

Next year, we would become a full cash taxpayer, continue to have a lot of confidence in our ability to drive free cash flow leverage going forward.

明年，我們將成為全額現金納稅人，我們對未來推動自由現金流槓桿的能力仍然充滿信心。

But that will be a headwind in this 12-month period that we'll be fighting through.

但這將成為我們將在這 12 個月期間克服的阻力。

Ex-float, we'd still expect to be able to drive at least flat free cash flow margins, but did want to call that out as we are entering sort of inflection point there on the cash tax side.

除流通股外，我們仍然預計能夠至少實現持平的自由現金流利潤率，但確實想指出這一點，因為我們正在進入現金稅方面的轉折點。

Great.

偉大的。

Thank you very much.

非常感謝。

Sure.

當然。

Pat Walravens, Citizens JMP.

Pat Walravens，公民 JMP。

Great.

偉大的。

Thank you, and congratulations, Steve and Toby on -- it seems like a well-planned transition.

謝謝你們，恭喜史蒂夫和托比——這似乎是一次精心計劃的過渡。

Are you guys seeing any sign that as your clients adopt more AI technologies, that's going to impact client levels?

你們是否看到任何跡象表明，隨著您的客戶採用更多人工智慧技術，這將影響客戶水平？

Yeah.

是的。

So we haven't seen that yet.

所以我們還沒有看到這一點。

And it's hard for us to know what's going to happen from a macro perspective in terms of AI driving efficiency in the overall workforce.

我們很難從宏觀角度知道人工智慧對整體勞動效率的推動會發生什麼。

As Ryan said, this last quarter, we actually saw things stabilized pretty well.

正如瑞安所說，上個季度，我們實際上看到情況相當穩定。

So workforce levels were better last quarter than -- a little better than what we would have expected and pretty stable on a sequential basis.

因此，上個季度的勞動力水準比我們預期的要好一點，並且環比相當穩定。

So no early signs that that is kind of happening in the workforce today.

因此，沒有任何早期跡象表明這種情況正在今天的勞動力中發生。

And yeah, I think one of the things you got to remember is just a significant part of that workforce that are in industries, that will take a much longer time to be impacted from an AI perspective.

是的，我認為你必須記住的一件事是行業勞動力的重要組成部分，從人工智慧的角度來看，這將需要更長的時間才能受到影響。

And I think lots of organizations might be hiring a little bit less, trying to drive efficiencies in this type of macro market.

我認為許多組織可能會減少招聘，試圖提高此類宏觀市場的效率。

That's been evidenced by workforce levels over the last 15 months.

過去 15 個月的勞動力水準證明了這一點。

But when we talk to our customers and we have interactions with them, we don't really hear AI as being the primary driver of that.

但當我們與客戶交談並與他們互動時，我們並沒有真正聽到人工智慧是其中的主要驅動力。

All right.

好的。

That's great.

那太棒了。

Just a quick follow-up.

只是快速跟進。

What are some examples of some of those industries?

其中一些行業有哪些例子？

Well, we're in every -- it's a great part about our business, nearly 40,000 clients.

嗯，我們的業務涉及近 40,000 個客戶，這是我們業務的重要組成部分。

We're in every industry.

我們涉足各個行業。

You can imagine restaurants, hospitality.

你可以想像餐廳、招待會。

And we really kind of line up.

我們真的有點排隊。

If you took like the Dun & Bradstreet distribution of businesses, our client base lines right up over top of that.

如果你像鄧白氏公司的業務分佈一樣，我們的客戶群就在上面。

So more than half of our client workforce is hourly, as an example, and that's the case kind of across America.

例如，我們超過一半的客戶員工都是小時工，整個美國都是這種情況。

So it really lines up to what you see every day.

所以它確實符合你每天看到的情況。

All right.

好的。

Great.

偉大的。

Thank you.

謝謝。

Raimo Lenschow, Barclays.

雷莫‧倫肖 (Raimo Lenshow)，巴克萊銀行。

Hey, thank you.

嘿，謝謝你。

Thanks for squeezing me in.

謝謝你把我擠進去。

A lot of the questions centered -- like the growth questions that you got centered around, like, okay, what's the growth outlook for you.

很多問題集中在——例如你所關注的成長問題，例如，好吧，你的成長前景是什麼。

But like I want to frame it slightly bigger.

但就像我想把它框得稍微大一點。

Do you think there has been a change -- or do you think there's a change in industry growth rate?

您認為發生了變化嗎？

How do you see industry growth rate?

您如何看待產業增速？

And how it's evolved the last years, and how you think about that going forward?

過去幾年它是如何演變的？

Well, I think if you look at -- earlier in our growth trajectory, we were certainly relatively small in terms of what the size of that opportunity.

嗯，我認為，如果你看看我們成長軌蹟的早期階段，我們的機會規模肯定相對較小。

So now you've obviously got us at $1.4 billion.

所以現在我們顯然已經拿到了 14 億美元的資金。

You've got Paycom a little larger than that; ADP, Paychex, UKG, all still grow.

Paycom 比這稍大； ADP、Paychex、UKG 都仍在成長。

And so yeah, I think there is some element of the law of large numbers.

所以，是的，我認為存在著大數定律的一些要素。

And it's always -- like I said, it's always been kind of a competitive environment.

正如我所說，這始終是一個充滿競爭的環境。

I think you've had a macro that's been kind of uncertain overlaid on top of that.

我認為你有一個覆蓋在其之上的不確定的巨集。

So we are not out there saying, hey, this is -- we think we can grow this business at 30% per year.

所以我們不會說，嘿，這是——我們認為我們的業務可以每年成長 30%。

We're talking about, can we continue to grow this business double digits on a recurring revenue basis?

我們正在討論的是，我們能否在經常性收入的基礎上繼續以兩位數的速度成長這項業務？

At the same time, can we drive profitability and margin?

同時，我們能否提高獲利能力和利潤率？

Because I think that's also a factor.

因為我認為這也是一個因素。

You're trying to balance the equation.

你正試圖平衡這個等式。

And so if you put all that together, we think we can have kind of a great business.

因此，如果把所有這些放在一起，我們認為我們可以擁有一項偉大的業務。

We outlined what those targets will look like last year.

我們去年概述了這些目標。

We've made great progress over this past year to be able to get there.

在過去的一年裡，我們已經取得了巨大進展，能夠實現這一目標。

And we feel good about our starting point and kind of focus on beating and raising from there if we can execute.

我們對自己的起點感覺很好，如果我們能夠執行的話，我們會專注於擊敗和加註。

Yeah.

是的。

Okay.

好的。

Perfect.

完美的。

Yeah, that's very clear.

是的，這很清楚。

Thank you very much for that.

非常感謝你。

And then, Ryan, one for you.

然後，瑞安，給你一個。

On capital allocation and in this context of the interest, well, maybe, like can you talk a little bit about how you think about like M&A, share repurchase, et cetera, from your perspective?

在資本配置和利益的背景下，嗯，也許，你能從你的角度談談你如何看待併購、股票回購等議題嗎？

Maybe remind us on where you're standing there.

也許提醒我們你站在哪裡。

Thank you.

謝謝。

Sure.

當然。

So as you remember, last quarter, we announced a $500 million share repurchase program.

如您所知，上個季度，我們宣布了一項 5 億美元的股票回購計畫。

We repurchased $150 million of stock this past quarter.

上個季度我們回購了價值 1.5 億美元的股票。

So we have $350 million remaining under that program.

因此，該計劃下我們還剩下 3.5 億美元。

There's no formal expiration date.

沒有正式的有效期限。

So that's something that will be available to us for the foreseeable future.

因此，在可預見的將來，我們將可以使用這項功能。

So that continues to be something that we will look at closely in fiscal '25.

因此，這仍然是我們將在 25 財年密切關注的事情。

I think for us, we have the ability to really drive a number of different priorities from a capital allocation standpoint.

我認為對我們來說，從資本配置的角度來看，我們有能力真正推動許多不同的優先事項。

So having done $150 million of repurchase in the fourth quarter, we still have $400 million of cash on balance sheet.

因此，在第四季度進行了 1.5 億美元的回購後，我們的資產負債表上仍有 4 億美元的現金。

We have access to a significant amount of cash within our credit facility, and we have increasing cash flow.

我們可以透過信貸額度獲得大量現金，並且現金流量不斷增加。

So we will continue to look at sort of all aspects of capital allocation.

因此，我們將繼續關注資本配置的各個方面。

Obviously, we've had a handful of acquisitions over the last few years.

顯然，我們在過去幾年中進行了一些收購。

We're certainly active looking; bar is high for us.

我們當然正在積極尋找；對我們來說門檻很高。

But we're looking at things that may be strategic as well.

但我們也在關注可能具有戰略意義的事情。

So I feel like we're in a great position, and sort of all things are on the table because of where we are from a financial standpoint.

所以我覺得我們處於一個很好的位置，而且從財務角度來看，所有事情都擺在桌面上。

Perfect.

完美的。

Thank you.

謝謝。

Siti Panigrahi, Mizuho.

西蒂·帕尼格拉希，瑞穗。

Thanks for taking my question.

感謝您提出我的問題。

I just want to dig into the recurring revenue per client growth.

我只想深入了解每個客戶成長的經常性收入。

If I see that, that's two years back growing 18% to 14% to 8% this year, I mean, FY '24.

如果我看到這一點，那是兩年前的事了，今年成長了 18% 到 14% 到 8%，我的意思是 24 財年。

So what are the factors influencing that?

那麼影響其的因素有哪些呢？

Are you seeing any kind of pricing pressure or less cross-selling, lower size -- customer size?

您是否看到任何形式的定價壓力或交叉銷售減少、規模縮小（客戶規模）？

What's driving that?

是什麼推動了這一點？

And how should we think about that revenue per client going forward?

我們該如何考慮未來每位客戶的收入？

Yeah.

是的。

I think, as we've called out, we have largely been focused on really landing new customers and selling them more product.

我認為，正如我們所說，我們主要專注於真正吸引新客戶並向他們出售更多產品。

And so when you've got 8% client growth and you're selling those customers more product, that is a big contributor to the average revenue per customer.

因此，當您的客戶成長了 8% 並且您向這些客戶銷售了更多產品時，這對每位客戶的平均收入做出了很大貢獻。

I think when you go back four years when it was higher, then we had much higher client growth.

我認為當你回到四年前，當它更高時，我們的客戶成長要高得多。

So that's one aspect.

這是一方面。

And then on top of that, we've called out the fact that we've been able to sell back to the client base pretty effectively.

除此之外，我們也指出了這樣一個事實：我們能夠非常有效地向客戶群進行回售。

And so you put that together, and that's what gives us the 8% average revenue per customer growth.

所以你把它們放在一起，這就是我們每個客戶平均收入成長 8% 的原因。

I think, Siti, the only thing I would add is, if you're going back a couple of years, which, I think, was embedded in your question, you have periods where you saw some pretty rapid expansion within the client base from an average number of employees as companies rehired post-COVID.

我想，西蒂，我唯一要補充的是，如果你回到幾年前，我認為這已經包含在你的問題中，你會看到客戶群從新冠疫情后公司重新僱用的平均員工人數。

So that likely showed up in that year-over-year growth in recurring revenue.

因此，這可能體現在經常性收入的同比增長中。

So you've got some elevated numbers in the fiscal '22 and '23 period that, probably, when you start to normalize it, would make those numbers look more consistent with what you would have seen last year.

因此，22 財年和 23 財年的數字有所上升，當您開始正常化時，這些數字可能會與去年的情況更加一致。

Okay.

好的。

That's fair.

這很公平。

Now looking at the client growth also, it assumes -- I think your guidance assumes that for the (inaudible) the client growth.

現在也看看客戶的成長，它假設—我認為你的指導假設（聽不清楚）客戶的成長。

So what sort of trends are you seeing among customers switching their payroll vendors?

那麼，您在更換薪資供應商的客戶中發現了哪些趨勢？

And what's really driving that?

真正的推動因素是什麼？

Because it's a displacement market.

因為這是一個位移市場。

So what is causing them not to switch or to switch in this kind of environment?

那麼是什麼原因導致他們在這種環境下不轉行或轉行呢？

Yeah.

是的。

I think you're trying to get at the same question of, what does the growth model look like on a go-forward basis for this business?

我認為您正在嘗試回答相同的問題，即該業務的未來成長模式是什麼樣的？

We're at $1.4 billion in revenue, and we feel like we can continue to grow this business on a recurring revenue basis, double digits.

我們的收入為 14 億美元，我們認為我們可以在經常性收入的基礎上繼續以兩位數的速度發展這項業務。

I think that's what we're talking about doing.

我想這就是我們正在談論的事情。

And at the same time, we can increase profitability.

同時，我們可以提高獲利能力。

The size of the opportunity is big enough.

機會的規模夠大。

As you mentioned, everybody has to get paid some way.

正如您所提到的，每個人都必須以某種方式獲得報酬。

So the payroll component of it is often displacement.

所以它的工資部分通常是位移。

We then try to add additional products beyond that.

然後我們嘗試添加其他產品。

And so we feel like we're approaching this with a growth priority, but a fairly balanced view on profitability going forward.

因此，我們覺得我們正在以成長為重點來解決這個問題，但對未來的獲利能力卻持相當平衡的看法。

And we think there's still a really big TAM for us to attack.

我們認為還有一個非常大的 TAM 需要我們攻擊。

Thank you.

謝謝。

Kevin McVeigh, UBS.

凱文麥克維，瑞銀集團。

Thank you so much.

太感謝了。

Following up on the '25 guidance, it looks like the recurring is outpacing the float, but it looks like the EBITDA is a little bit better.

根據 25 年的指導，經常性似乎超過了浮動，但 EBITDA 似乎要好一些。

And all things equal, we think float's a little bit higher margin.

在所有條件相同的情況下，我們認為浮存金的利潤率更高。

Anything to reconcile -- like, where is the leverage coming in?

有什麼需要調和的──比如，槓桿在哪裡？

Just given -- it looks like on a relative basis, again, core is outpacing the float a little bit.

剛剛給出的——看起來在相對基礎上，核心再次超過了浮動。

Just any puts and takes on how that flows to the EBITDA?

只是關於如何流入 EBITDA 的任何看跌期權和看跌期權嗎？

Sure.

當然。

So I think in the guidance, both in the prepared remarks as well as the earnings release, we provided a recurring revenue guide, a total revenue guide.

因此，我認為在指導中，無論是在準備好的演講中還是在收益發布中，我們都提供了經常性收入指南，即總收入指南。

So the delta there is going to be the interest income expectations.

所以增量就是利息收入預期。

And then we gave adjusted EBITDA as well as adjusted EBITDA ex-interest income on client-held funds.

然後我們給出了調整後的 EBITDA 以及調整後的 EBITDA 除客戶持有資金的利息收入。

So you're able to see all the puts and takes.

這樣您就可以看到所有的賣權和賣出選擇權。

So I think if you look at those pieces, we're guiding to about 50 basis points of adjusted EBITDA leverage ex-float.

因此，我認為，如果你看一下這些內容，我們將調整後的 EBITDA 槓桿率（除浮動利率）調整為大約 50 個基點。

When you include the impact of the four rate cuts assumed in the guide, you do see adjusted EBITDA margins going backwards a touch because of those four rate cuts embedded in the guide.

當您將指南中假設的四次降息的影響納入考慮時，您確實會看到調整後的 EBITDA 利潤率因指南中嵌入的這四次降息而略有回落。

Okay.

好的。

Thank you.

謝謝。

Jason Celino, Key.

傑森·塞利諾，關鍵。

Yeah.

是的。

Thanks for taking my question.

感謝您提出我的問題。

Maybe if we kind of go back to Siti's logic and reasoning, so if we think about the current environment, in any normal year, would you say that there's a finite number of customers who would be willing to evaluate switching payroll providers?

也許如果我們回到西蒂的邏輯和推理，那麼如果我們考慮當前的環境，在任何正常的年份，你會說願意評估更換薪資提供者的客戶數量是有限的嗎？

And then would you find that that number, that propensity of switch, has been reduced in this type of environment?

然後你會發現在這種環境中這個數字、那個轉換的傾向已經減少了嗎？

In a better environment, it would kind of increase?

如果環境好一點的話，會增加嗎？

Sure.

當然。

So we have just shy of 40,000 customers.

所以我們的客戶數量不到 40,000 名。

The market for us is over one million customers.

我們的市場有超過一百萬客戶。

And yeah, so in any given year, there's a fair number of customers that would consider change.

是的，所以在任何一年，都有相當多的客戶會考慮改變。

Sometimes, you can convince a customer to change when they were not considering a change.

有時，您可以在客戶不考慮進行更改時說服他們進行更改。

So I'm not sure that's completely formulaic.

所以我不確定這是否完全公式化。

And then there are cycles, whether they're economic cycles, we've also seen compliance cycles, where certain laws and rules come in place that create more of a burden for customers.

然後還有週期，無論是經濟週期，我們也看到了合規週期，某些法律和規則的出台會給客戶帶來更多負擔。

So there can be some cyclical nature to what happens.

因此，所發生的事情可能存在一定的周期性。

And then, of course, macro.

當然，還有宏觀。

Maybe I'm less inclined when the macro environment is a little bit tougher.

也許當宏觀環境稍微嚴峻一點時我就不太願意了。

But still, a lot of customers go through change there.

但仍有許多客戶在那裡經歷了變化。

So yeah, I think that's absolutely the case.

是的，我認為情況絕對如此。

I think we've called out over the last 12 months, it has been, from a macro perspective, a little bit of a tougher environment, taking people a little bit longer to make decisions.

我想我們在過去 12 個月裡已經呼籲，從宏觀角度來看，環境變得更加艱難，人們需要更長的時間才能做出決定。

We've called out this quarter and last quarter that top-of-funnel activity has been pretty good.

我們已經指出本季和上季的漏斗頂部活動非常好。

And we obviously had a pretty nice beat this last quarter.

顯然，我們上個季度的表現相當不錯。

So right now, we're feeling like a more normalized environment than maybe it was six months ago.

所以現在，我們感覺環境比六個月前更正常化。

Okay.

好的。

And then you're a little more insulated because you have a June year-end.

然後你會更加隔離，因為你有六月的年終。

But do SMBs care about the election in terms of their spending or payroll intentions, not from like a hiring standpoint, but from like a software standpoint?

但是，中小企業是否會從支出或薪資意圖方面（不是從招聘的角度，而是從軟體的角度）來關心選舉？

I don't think that's something that we've necessarily observed in the past.

我認為我們過去不一定會觀察到這一點。

It's probably just broader macro than specifically an election.

這可能只是更廣泛的宏觀而不是具體的選舉。

Okay.

好的。

Thank you.

謝謝。

Zachary Gunn, FT Partners.

扎卡里·岡恩，《金融時報》合夥人。

Check to see if you're on mute.

檢查一下您是否處於靜音狀態。

Zachary, you're line is open.

扎卡里，您的線路已開通。

Check to see if you're on mute.

檢查一下您是否處於靜音狀態。

All right.

好的。

No response from Mr. Gunn.

岡恩先生沒有回應。

Do we have any other questions?

我們還有其他問題嗎？

I'm showing no further questions in the queue.

我在隊列中沒有顯示任何其他問題。

I would now like to turn the call back over to management for closing remarks.

我現在想將電話轉回給管理階層進行總結發言。

Well, I wanted to just say thank you very much for all of you with your interest in Paylocity this quarter and over the last 17 years.

好吧，我想說的是，非常感謝大家本季以及過去 17 年對 Paylocity 的關注。

And my final remarks are, I'm not going anywhere.

我的最後一句話是，我哪裡也不去。

That's the big message.

這是一個重要的訊息。

I'm excited about Paylocity, what we're going to be able to do.

我對 Paylocity 感到很興奮，因為我們將能夠做到這一點。

I'm excited about Toby and the team that we have, driving the success going forward.

我對托比和我們的團隊感到興奮，他們推動我們取得成功。

So look forward to continued conversations.

因此，期待繼續對話。

Have a great day, everybody.

祝大家有美好的一天。

Ladies and gentlemen, this concludes today's conference call.

女士們、先生們，今天的電話會議到此結束。

Thank you for your participation.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。