Paycor HCM, Inc. (NASDAQ:PYCR) Q2 2024 Earnings Call Transcript

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Raul Villar : Yes. So the two new products will each add incremental PEPM. I believe it’s a $1 PEPM for each of the new products. And they’re really a combination of taking our data analytics capabilities and providing insights for frontline leaders so they can be more effective with compensation strategies and scheduling strategies with their employees. And so it fits right in line with our strategy and where we’re trying to help our customers. Our second quarter or calendar fourth quarter bookings were consistent across all of our segments and we didn’t have anything that jumped off the page from that perspective. And so it’s kind of what we expected.

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

Mark Marcon : Wondering with regards to the enterprise accounts, you talked about them a little bit more. And I’m wondering how far upmarket could you be pulled? And to what extent are you managing the sales force in terms of making sure that they stay within the target market? Or how are you thinking about that?

Raul Villar : Yes. I mean, as you know, as a savvy long-time HCM analyst, while we define ourselves by size, like clients don’t define themselves out with their needs to find what kind of platform they can use. So it’s really a needs analysis that we look at. And we sell into the thousands. We have clients with over 10,000 employees and so it really depends on what the client — what needs the client is looking for and we presented it that way. Obviously, our most tenured reps are the ones that are focused on the enterprise accounts. So they understand the power, the Paycorp platform, and they help the customers make sure that we can meet all their needs. So, it’s obviously we’re in the early innings here. But over the last 4 or 5 quarters, we continue to get pulled up market based on the power of the platform. And we’ve continued to educate our reps and segment our reps to be able to meet the opportunity.

Mark Marcon : That’s great. And you mentioned the tenure of the sales force. Can you talk a little bit more about the sales force just in terms of your increasing effectiveness with regards to selecting training and keeping them?

Raul Villar : Yes. I mean so that’s the #1 priority. And what I would say is we’ve increased our person months’ worth by over 15% year-over-year. And so that’s really positive for us. And we’re really focused on onboarding and activating the reps and making them successful. And so that’s an ongoing process. We could clearly do better there. We want to do better. And — but I think we’re making good progress. And if we continue to see this kind of progress, it will continue to drive productivity year-over-year.

Operator: There are no further questions at this time. I’d like to turn the floor back over to Raul Villar for closing comments.

Raul Villar: Thank you again for joining us this evening. Demand remains healthy with plenty of runway for sustainable growth, and we remain focused on executing our strategy to capture market share. We look forward to connecting with you at several upcoming events, including the JMP Securities Technology Conference in San Francisco. Have a great night, everyone.

Operator: This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.

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