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

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Operator: Thank you. The next question will be from the line of Bhavin Shah with Deutsche Bank. Your line is now open.

Bhavin Shah: Great. Thanks for taking my question. Chad there’s always a lot of noise as to where we are in the macro cycle. Can you just help us understand what you’re seeing with your customers in terms of [indiscernible] how that might have turned it throughout the quarter and if you see any differences across the various customer sizes that you serve?

Chad Richison: Stable. We’ve seen stability. I mean, I can’t point to macro issues.

Bhavin Shah: Got it. And then earlier in your prepared remarks, you mentioned kind of year-over-year growth in both outside and inside sales. But can you double click on this? Like, how is growth trended in terms of both those areas versus prior quarters, are you seeing accelerating growth, similar growth, deceleration, just any way to kind of think about the magnitude of what you’re seeing with both inside and outside sales?

Chad Richison: I mean, very strong. I mean, outside sales is probably the strongest growth we’ve had in three years from a percentage basis. I mean, inside sales strong, but again like I said, it represents 5% of our revenue. So, it’s important, but yeah, I mean, I would say, from a sales perspective, we’re getting stronger and stronger. I mean, again, we’re selling $2 million and $3 million deals. I mean, that’s when we IPO, that’s what a city would sell and last couple of years that’s what a sales rep of the year would sell and now we’ve got deals of that size. So as our products gotten stronger, and again, the value’s gone all the way out to the employee, and the employee user has become more technological in what they expect for usage. We’re kind of really able to help everything out. The employee as well as the employer to drive this and capture this ROI available.

Operator: Thank you. The next question will be from the line of Daniel Jester with BMO. Your line is now open.

Daniel Jester: Great. Thanks for taking my questions. So, first, I want to ask about sort of the back to the base motion. You know, you made a comment that the Beti transition is, kind of impacting the velocity of that group. As you think about Global HCM it also sounds like that’s going to be a back to the base motion with customers that are already have, international employees. So, it’s going to be the same team selling that and how do you deal with the bandwidth, as you ramp that global product? And then secondly, can you just clarify is Everyday and Client Action Center, are those green modules that you charge for? Thank you.

Chad Richison: Okay. Everyday, yes. Client Action Center, no. Every client has it, the ability to enable it right now. As far as, yes, it is the exact same team that sells the Global HCM product as what sells Beti. It’s also that same team will sell Everyday as what sells Beti. And so they still have the ability to sell it. They still have the ability to go out. Nothing’s precluding someone from going out and making a sale. The issue becomes, it’s not an issue. Again, it’s something that we have to do is regardless of what you choose to go sell on your own, you’ve got these clients that don’t have Beti that some of them you already have sold Beti to and you’re going to have to go out there and spend the time to get them converted.

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