Paycom Software, Inc. (NYSE:PAYC) Q2 2023 Earnings Call Transcript

Page 10 of 10

Arvind Ramnani: Terrific. And then just a really quick one, can you tell us interest income contribution for the quarter?

Chad Richison: No. As we’ve mentioned in the past, Arvind, we received, our goal is somewhere between 80% and 90% of the fed funds rate. As they have increases in the fed funds rate, and it takes a couple of quarters for that to layer in. And so that’s what we’ve said in the past.

Operator: Thank you. And the last question comes from the line of Jackson Ader with MoffettNathanson. Your line is now open.

Jackson Ader : Thanks for taking my questions, guys. The first one is maybe on the talent acquisition or the recruiting modules. We’re starting to see maybe a loosening in the labor markets. And I’m curious whether you’re seeing usage for your recruiting or talent products either start to slow or maybe actually pick up, like if there is some sort of counterintuitive demand for those products as the labor market begins to loosen.

Craig E. Boelte: Yeah. It’s stable. I would say where we see it, it is a talent acquisition product, but I would see where you start seeing that’s background checks. Pre-employment, background checks and how those are going. I would say it’s stable, as of right now.

Jackson Ader : Okay. Alright. That’s fair. And then the follow-up is for – so on the sales side, when you’re increasing the target market up to 10,000 employees. So how do you make sure that your outside salespeople don’t just go out there and start hunting the gigantic deals and make sure that — they don’t take their eye off the ball in terms of the bread and butter deal. Thanks.

Chad Richison: Yeah. Well a weekly quote is, make sure that, But, ultimately, they will go after larger deals. They don’t have that many of them for any one territory. It’s not going to increase it so much. that that’s all you’re doing. And I mean, our salespeople, probably 75% to 80% of what they make is commission based and that’s based off revenue being achieved. You can still achieve a lot of revenue off of the sweet spot of our market that we’ve been focused on. We continue to be pulled up market. I’ve been mentioning that, and there’s no reason not to go after that market as well. I mean, eventually, we’re going to land one of these largest companies in the world kind of deal. I mean, eventually that’s going to happen because it’s just right. So, we’ve got to take our at-bats in our swings with them.

Operator: That concludes today’s Q&A session. I would now like to pass the call back over to Chad Richison for closing remarks.

Chad Richison: I want to thank everyone for joining the call today. Over the next quarter, we’ll be hosting meetings at five conferences. Beginning next week, we’ll be at the KeyBanc Tech Leadership Forum. At the end of August, we’ll be hosting meetings at the Stifel Tech Exec Summit and the Deutsche Bank Technology Conference. In September, we’ll be presenting at the Citi Global Tech Conference in New York and hosting meetings at the Wolf TMT Conference in San Francisco. We look forward to catching up with many of you soon. Operator, you may disconnect.

Operator: That concludes today’s conference call. Thank you for your participation. You may now disconnect your lines.

Follow Paycom Software Inc. (NYSE:PAYC)

Page 10 of 10