Paylocity Holding Corporation (NASDAQ:PCTY) Q3 2018 Earnings Conference Call - Preliminary Transcript

May 03, 2019 • 05:00 pm ET

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Paylocity Holding Corporation (NASDAQ:PCTY) Q3 2018 Earnings Conference Call - Preliminary Transcript

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Q & A
Analyst
Scott Berg

a little bit. But kind of curious to know about sales motion, how it gets sold now, is it any different than your first assumption and all going to be upsell maybe changes in pricing or something?

Executive
Toby Williams

Yeah, so I think we're still early in the integration process. And we're really focused on developing a solution that will be completely integrated into our platform. So our vision is that an employee would be able to log into mobile or into our portal they'd be able to see their HSA or HR Read this a balance will be able to see that kind of as they're walking into the pharmacy and point of purchase know exactly how much money they have to spend. We think that's, you know, key part of the value proposition so we're actively working on product. At the same time, we're finalising a go to market strategy and have included the headcount we need in our hiring plans during our normal sales hiring to bring timeframe. And so both of those things are in motion and, you know, we hope to give more colour as we get through the integration in terms of what that launch strategy looks like. But right now we're really focused on integration.

Analyst
Scott Berg

Great, my follow up question would be on. You mentioned, seasonal nature Q1, you get a lot of customers, I want to go live with the first of the year. But did you see changes in those customers in terms of the modules that they were buying, how that they're buying anything that might? might be interesting to note?

Executive
Steve Beauchamp

Yeah, sure. I think we continue to get more adoption across our HCM components I think that's been happening for the last Several years, I think one of the things I called out last earnings calls, we're starting to see that even down market where we have a number of customers, you know, below 50 employees, and we're seeing greater adoption from our smaller clients in our target market all the way to the top end of our target market. And we're certainly seeing really good traction with many of the talent management modules that we've released and that along with benefits have been big contributors in terms of driving higher adoption.

Analyst
Scott Berg

Great, that's all I have. Thank you.

Executive
Steve Beauchamp

Thank you.

Operator
Operator

Our next question comes from line of Ross Macmillan with RBC capital markets. Your line is now open.

Analyst
Ross Macmillan

Thanks so much, Steve. You had mentioned last quarter that you'd seen a bit of a modest but slight bias for your sales reps sell a little more downmarket in the first half of the year. And I was just curious, now that we've got another quarter behind this. Was there any notable change in that and I think the colour there?

Executive
Steve Beauchamp

Yeah. So I think it's important to note that sales reps are driven off annual quota of reoccurring revenue and so there is no unit quota focus to it and