Paycom Software (PAYC) Barclays 23rd Annual Global Technology Conference summary

Business performance and client satisfaction

• Achieved strong recurring revenue growth of 10% and Adjusted EBITDA of 43% this year, with high client satisfaction and retention rates driven by enhanced service and automation initiatives.

• Clients who left for lower-cost alternatives returned due to higher total cost of ownership and lack of automation elsewhere.

• Service levels, measured by client satisfaction, are at their highest, supporting improved retention and upsell opportunities.

• Focus remains on delivering full-solution automation and maximizing client value realization.

• No significant macroeconomic headwinds observed impacting client employment or business performance.

Growth strategy and sales expansion

• Plans to double down on sales growth, targeting increased market share from the current 5% of the addressable market.

• Intends to open several new offices over the next two to three years, with a focus on both expanding in existing cities and entering new markets.

• Sales capacity will be increased by hiring more salespeople and developing current staff, aiming for higher productivity across all offices.

• Identified up to 100 potential office territories, with 55 currently open and more expected as management capabilities improve.

• Leadership is directly involved in refocusing and aligning the sales organization for the next phase of growth.

Product innovation and automation

• Continued investment in automation, with products like IWant and Gone streamlining routine HR and payroll decisions, reducing manual intervention.

• IWant interface has simplified user experience, leading to higher adoption and satisfaction, and is expected to drive retention and new client acquisition.

• Automation of time-off requests and shift management has improved operational efficiency and reduced nonproductive labor costs.

• Single database architecture enables seamless integration of HR functions, differentiating from competitors using multiple systems.

• Product roadmap includes further automation and decision logic enhancements through 2026.