Paylocity Holding Corporation (NASDAQ:PCTY) Q1 2024 Earnings Call Transcript

And so I think there’s still opportunity for us to continue to improve and drive utilization whether that’s things like free trials and better description of the product and just having more headcount talking to our customers. And frankly designing products that customers actually want, so when you put all that together I think the sales back to the client base continues to be an opportunity that we will gradually improve overtime.

Terrell Tillman: Thank you.

Operator: Thank you. One moment for our next question. And that will come from the line of Pat Walravens with JMP Securities. Your line is open.

Steve Beauchamp: Hey Pat. Are you there?

Pat Walravens: Sorry about that, I was on mute. Steve, you’ve always said the market is big enough for all the cloud vendors to keep shrinking along at the expense of the legacy players. But at some point that would come to an end and you start taking share from each other. Where are we in that process? How far away are we from that?

Steve Beauchamp: Yeah. It’s a good question Pat. I mean, I think there’s still one million targeted business in our target market. We’ve obviously expanded that target market a little bit on the low end and on the upper end. So that has grown since our IPO in 2014. It still feels like a big market opportunity. I look at the activity levels of the sales force and how many people are they meeting every single week and those remain fairly consistent which tells me that there’s a lot of opportunity still out there. And I think on top of that we’ve had really great success of adding product and a history of innovation so that that average revenue per customer part of the equation is something that we can have confidence in. So I still think there’s a ton of opportunity for us to be able to grow this business.

We’ll be a little — about $1.4 billion forecasted this year. We’re very much focused on what does it take to get to $2 billion and then continue to grow beyond that. So still feels like a large opportunity.

Pat Walravens: Thank you.

Operator: Thank you. I’m showing no further questions in the queue at this time. I would like to turn the call back over to management for any closing remarks.

Steve Beauchamp: Well as usual I just want to thank all of you for your interest in Paylocity and echo, Toby’s sentiments from the prepared remarks. Thanks to all of our employees for all the effort to a good start to our fiscal year. Have a good day.

Operator: This concludes today’s program. Thank you all for participating. You may now disconnect.