Chad Richison: Yeah, so there’s no change with what the CRR groups have been doing. They’ve been making significant impacts for us and the client value achieving the strategy. Again meeting clients where they are today, making sure they are receiving full value of using the system that they have already purchased before we move forward. Selling them additional products, they’ve done a good job with that. There is no change as far as what their focus is from that, but we are seeing the positive impacts from that.
Raimo Lenschow: Thank you.
Operator: Your next question comes from the line of Brian Schwartz of Oppenheimer. Your line is now open.
Unidentified Analyst: This is [Cam Delavi] (ph) sitting in for Brian Schwartz. Thank you for taking my question. My question is around sales capacity. How do you guys feel about the quota carrying like sales capacity of the business? And are there any plans to increase the number of sales offices in the second half of this year or early 2025? And then just additionally, thinking about just the pipeline momentum, is there anything you guys can provide qualitatively about how the pipeline is building in 2024? I know you guys had mentioned stability, but any other commentary regarding how that is building. Thank you.
Chad Richison: Yes. So first around sales capacity. Our sales capacity numbers, again have gotten a lot more improved, I would say, over the last two months or three months from that perspective. It would be too early to say exactly when we would be opening up additional offices because, as you know, we take a current manager that’s successful, relocate them to a new territory to open up an office and then we backfill them with salespeople, who are ready to be sales managers. And so how quick we are able to — how quickly we are able to open up additional offices is really dependent upon that backfill bench and how we are doing there. And so we have continued to have success building that out, but also key for us is we have 55 sales teams right now and it’s making sure that all of those are performing at top levels. And that’s a focus that we’ve had going throughout 2024. Commentary on pipeline. Pipelines are very strong.
Unidentified Analyst: Okay, awesome. Thank you so much. I appreciate it.
Operator: Your next question comes from the line of Joshua Reilly of Needham. Your line is now open.
Joshua Reilly: Yeah, thanks for taking my questions here. Can you give us a sense how is the preemployment services revenue trending for the year relative to your maybe expectations leading into the year? And remind us how correlated is that revenue stream to job switching versus any other factors that we should be considering there?
Chad Richison: Our unemployment services are stable is the way I would categorize that. They’ve been stable. They are somewhat going to be a reflection of the new clients that you bring on, as well as the current client trends. Yes, I mean I would say that increased — if you do — I’m not saying we are seeing this, I’m just saying if the company did have increased turnover, then they would have — especially if they are set up for new hire background checks, then they’re going to have to work those obviously. We don’t have any of that to call out from an additional employees leaving clients and going to others any more so than what it’s been in the past. Again, there was a period of time there in COVID, where that is happening maybe a little bit more than what you would see in times like today. But we don’t have anything to call out significant to that product.
Joshua Reilly: Got it. And then just a quick follow-up. The revenue guidance implies a little more of maybe a second half reacceleration in growth than what we were previously expecting. Can you just give us a sense of what gives you the confidence or visibility to that revenue growth reaccelerating in the second half? Thank you.
Craig Boelte: Yes. So a lot of the initiatives that we had and we talked about last November and fourth quarter really were front-end loaded. And so that is really what we saw even going into the Q2 guide is those were more front-end loaded and then we would expect once we get through some of those — we would see a reacceleration in the back-half of the year.
Operator: Your next question comes from the line of Steve Enders of Citi. Your line is now open.
Steve Enders: Okay. Great. Thanks for taking my question. I guess maybe to dig into the guide a little bit more. It seems like sales performance has improved the past couple of months or was better than first couple of months. And I guess with rate environments may be staying in a little bit higher — I guess would have expected maybe a little bit better of a guide here. So I guess is there kind of like any change in assumptions or maybe help me kind of think through why the guide has been maintained versus maybe some of the green shoots that would impact that?
Chad Richison: Yes. I mean our guidance for 2024, I mean it included — I mean, we gave this guidance for the first time, we’ve given — we had talked about what we were going to do. I think, it was October 31 of last year. And so the guidance at that time included our many organic initiatives that were designed to set us up for 2025. And so we’ve been sticking with those disciplines and timelines. And we’ve said, I mean even at the beginning of this year that it would be back-end loaded because of the many both client value achievement strategies, as well as the work that the CRRs and the other groups are performing. And so we’ve been focused on that. And as we go into any quarter, we are focused on maintaining what we believe are going to make the largest impact on the client base to help them achieve the greatest ROI, so we can go forward.
I’ve said it many times that it’s a lot easier to sell a client an additional product and to get them to actually use it. And we’ve implemented several strategies to make sure that clients are able to utilize and achieve a full client ROI in value before we sell them another product. And in many cases before we even will build them, even though, we’ve sold it. We want to make sure they are utilizing the product before we even build them. And so these are some initiatives that have delayed certain revenue opportunities for us, but they set us up for those things as well. And so that’s been important for us to continue to focus on that and really meet every client where they are living so that we can help bring them through the rest of the Paycom journey.
