Patrick O'Neill

Patrick O'Neill asked for elaboration on how AI is improving Paycom's internal productivity and efficiencies, identifying specific areas of improvement, and how the company balances bottom-line expansion with reinvestment for growth.

Answer

CEO Chad Richison explained that AI is enhancing productivity across the board, including speed of processing and back-end operations. He emphasized that AI is a beneficial tool for Paycom, enabling faster development and the ability to enter adjacent industries rapidly, leveraging the company's foundational position in data.

Patrick O'Neill asked for elaboration on how AI is improving Paycom's internal productivity and efficiencies, specifying areas of improvement. He also inquired about the company's approach to balancing bottom-line expansion with reinvestment for growth.

Answer

CEO and President Chad Richison explained that AI is helping across the board, including speeding up processing and development. He emphasized that AI is a 'friend' to Paycom, enabling faster development and new opportunities in adjacent industries within weeks or months, leveraging Paycom's foundational data.

Patrick O'Neill, on for Josh Tilton at Wolfe Research, inquired about the competitive environment, any changes in win rates over the past year, and the company's confidence in stabilizing or improving them.

Answer

CEO Corey Thomas stated that win rates haven't materially changed, but the pipeline composition has, with a heavier mix of D&R deals this year. He noted that the biggest issue was not losing deals but rather a temporary pause in building the risk management pipeline while the offering was retooled. For D&R, he described their solution as very competitive with high win rates, while it's too early to judge win rates for the new Exposure Command platform.