Jordan Barrett

Jordan Barrett from Jefferies asked about Paylocity's competitive landscape, specifically if market consolidation (e.g., Dayforce, Paycor) has led to notable changes in win rates, particularly in the lower end of the market. He also inquired about trends in sales rep productivity versus hiring, and how hiring is tracking against initial expectations for the year.

Answer

Ryan Glenn, Chief Financial Officer, affirmed Paylocity's differentiated product portfolio in a competitive environment, highlighting their broker-neutral and broker-friendly value proposition as a key go-to-market strength, noting that market consolidation has been somewhat helpful. Regarding go-to-market, Mr. Glenn stated that Paylocity entered the fiscal year with approximately an 8% increase in headcount and has successfully focused on driving sales rep and go-to-market productivity, as evidenced by Q1 fiscal 2026 performance relative to headcount growth.

Jordan Barrett inquired about competitive changes, specifically if Paylocity is seeing shifts in win rates against competitors amid market consolidation. He also asked about the trends in sales rep productivity versus hiring and how hiring is tracking against initial expectations.

Answer

CFO Ryan Glenn emphasized Paylocity's differentiated product portfolio and competitive environment, highlighting the long-standing value of being broker-neutral/friendly. He noted that some market consolidation is helpful, but daily wins are based on product and service. Mr. Glenn stated that the company's focus on sales rep and go-to-market productivity, with an 8% headcount increase for the fiscal year, has delivered strong performance in Q1.