John Messina

John Messina asked about key execution milestones for deepening penetration of finance and IT offerings over the next 18-24 months, and how their sales cycles compare to traditional HCM modules. He also inquired about the impact of industry consolidation on Paylocity's pipeline, win rates, and go-to-market efficiency.

Answer

Toby Williams, CEO and President, stated that sales cycles for finance and IT solutions, when included in new deals, are consistent with typical HCM modules (30-45 days for sales, 4-6 weeks for go-live). He aims for 10-20% penetration for new products over three to five years. Regarding industry consolidation, he noted that while attribution is challenging, Paylocity's strong execution and focus position them well to benefit from any market disruption.

John Messina, on for Raymond James, asked about trends in initial merchant land sizes and the pace of geographic expansion with existing clients. He also inquired about the impact of the updated Shopify partnership on the sales funnel and launch timelines.

Answer

Co-Founder and President Nir Debbi stated that most new GMV comes from new logos rather than expansion, though some land-and-expand deals occur. Regarding Shopify, he acknowledged an expected increase in competition but reported that Global-E's win rates remain 'super high' with minimal impact on the enterprise pipeline, thanks to its robust solution and exclusive features.

John Messina, on for Brian Peterson, asked about trends in sales cycle timing for enterprise customers and whether attracting larger brands has accelerated the process. He also requested an update on Shopify Managed Markets adoption.

Answer

Executive Nir Debbi noted that enterprise sales cycles have improved over the last few years, now averaging around six months, thanks to increased experience and the company's stability. Executive Amir Schlachet added that Shopify Managed Markets is seeing a gradual increase in adoption pace and merchant size as more features are rolled out, describing it as a steady process rather than a step-change.

John Messina of Raymond James, on for Alexander Sklar, asked for an update on go-to-market initiatives beyond hiring, such as shrinking sales territories. He also asked if the Workiva Carbon pipeline was being built more with new logos or existing customers.

Answer

CEO Julie Iskow confirmed that go-to-market changes like adjusting sales territories are a work in progress globally. She reiterated that Workiva Carbon is a strategic platform play intended to enhance the entire assured integrated reporting offering, enabling the company to access more deals and target both new and existing customers.