Paychex, Inc. (NASDAQ:PAYX) Q3 2020 Earnings Conference Call - Final Transcript

Mar 25, 2020 • 09:30 am ET


Paychex, Inc. (NASDAQ:PAYX) Q3 2020 Earnings Conference Call - Final Transcript


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Good morning. My name is Melissa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Paychex's Third Quarter Earnings Conference Call. [Operator Instructions] I would now like to turn the call over to Mr. Martin Mucci, President and Chief Executive Officer. Please go ahead, sir.

Martin Mucci

Thank you. And thank you for joining us for our discussion of the Paychex's third quarter fiscal 2020 earnings release. Joining me today is Efrain Rivera, our Chief Financial Officer. This morning, before the market opened, we released our financial results for the third quarter ended February 29, 2020, you can access our earnings release on our Investor Relations webpage. Our Form 10-Q will be filed with the SEC within the next few days and this teleconference is being broadcast over the Internet and will be archived and available on our website for approximately one month.

I will start today's call with an overview of how we are responding to COVID-19, and then review business highlights for the third quarter, and Efrain will review our third quarter financial results and discuss our guidance for fiscal 2020, including our current thinking and the potential impacts of COVID-19 and our business, and then we'll open it up for your questions.

First and foremost, I want to address the evolving situation we are currently facing with COVID-19. Our number one priority is the safety and well-being of our employees and serving our clients and their employees. Our business continuity plan was implemented, and our teams are working around the clock to ensure that we take the necessary steps to ensure our employee's safety while continuing to support our clients through this unprecedented time.

Early on, we instituted travel restrictions and began to reduce the number of employees working in our offices. At this time all employees, unless designated as critical onsite person, now that's less than 5%, are now working from home, and our service metrics and client response time has been excellent. In fact, our average answer performance yesterday was seven seconds. Extremely proud of this team and the work they've done in a very fast period of time.

I'm incredibly proud of how the whole leadership team and employees have responded to this situation. Because of their hard work and efforts, we've been able to complete all of these transitions without any service disruptions. We continue to help our clients navigate the significant amount of information and changing regulations from state and federal governments, including the Families First Coronavirus Response Act.

Our compliance team also remains in contact with federal, state and local government authorities on a real time basis, to ensure we are aware of and offering support and ideas on any new regulations or support initiatives related to COVID-19 that could impact our clients.

So far, we've seen minimal changes in our key metrics. However, with the expanding shutdowns of businesses throughout the nation, we do expect that this will be particularly challenging time for