Paylocity Holding Corporation (NASDAQ:PCTY) Q3 2018 Earnings Conference Call - Preliminary Transcript
May 03, 2019 • 05:00 pm ET
the [inaudible] acquisition, does it necessarily allow you to address larger clients in the future meaning in fiscal 19 should we kind of expect a mix shift away from you know, the lower end of the market and maybe even into the higher end?
Yeah, so I think it's important to go back to our target market is 20 employees all the way up to 1000. And there's times where we get clients a little smaller than that and larger than that, as well, I don't think our target market has really changed at all. One of the things that we really liked about this acquisition is their solution and where they have focused on historically is very much similar sized customers as ours. So if you think of our average size customer being in 120, employee range we think there's great overlap in terms of our target market. I guess for that reason, at this point in time, I wouldn't anticipate Bennett flex driving any change to our mix.
Got it. And then in terms of the product production of him, just the modules, could you talk about, you know, how the compensation and survey is trending relative to the prior quarter and then maybe give some qualitative assessment of the rest of the module?
Sure. So I think I've said this in the past, when we introduce a new module and build a new module, we certainly expect that module to be able to get to between 10% and 20% of our customers over time. And you know, the trajectory on those just depends on the module, but I think we feel pretty good about both compensation and surveys over a period of time getting into that range. You know, I look back at our experience with the last two modules prior to that recruiting and expense. I would say recruiting has been a great driver for us. We've seen significant demand for recruiting expensive has been probably right behind there not quite as much demand as recruiting but we're both very happy with both of those modules. I think early on looking at it, I would say compensation scaling slightly faster than surveys, but both on a nice trajectory for us.
Got it. Thank you so much.
I'm showing no further questions in queue at this time, I'd like to turn the call back to management for any closing remarks.
Yeah, I'd like to take this opportunity to thank everybody for their interest in Paylocity. And we're going to be on the road here at investor calls. So if any of you want to have some time with us, make sure that you can get on our schedule. Thank you.
Ladies and gentlemen, thank you for your participation in today's conference. This concludes the programme and you may now disconnect everyone. Have a great day.