Paychex, Inc. (NASDAQ:PAYX) Q4 2020 Earnings Conference Call - Final Transcript

Jul 07, 2020 • 09:30 am ET


Paychex, Inc. (NASDAQ:PAYX) Q4 2020 Earnings Conference Call - Final Transcript


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Good morning. My name is Lisa and I will be your conference operator today. At this time, I would like to welcome everyone to the Paychex's Fourth Quarter and Year End Results 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 fourth quarter and fiscal year 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 fourth quarter and fiscal year ended May 31, 2020. You can access our earnings release on our Investor Relations webpage, and our Form 10-K will be filed with the SEC before the end of July.

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 update on some of the key metrics and our response to COVID-19 and then review business highlights for the fourth quarter. Efrain will review our financial results for both the fourth quarter and full year and discuss our guidance for the upcoming fiscal year 2021. And then we'll open it up for your questions or comments.

In May, we provided you with an update on our business as we were responding to the impacts of COVID-19. At that time we talked about the positive trends we were seeing in our key metrics. But it was still early.

Over the past month, we have continued to experience steady improvements across all of our key metrics we are tracking on a weekly basis. We are seeing a steady increase in paid employees and in the number of worksite employees for our HR outsourcing clients. We have also continued to see an increase in sales leads and sales productivity. One particular bright spot is client retention. Now more than ever, our clients are experiencing the value proposition of Paychex as we help them navigate through this very challenging time.

I credit the dedication of our Paychex IT development, product marketing and service teams who have worked tirelessly to ensure a seamless transition to remote working for us while providing the products and service to support our clients and their CPAs during a time of great concern for their businesses, in fact, many times, their business's survival.

When the paycheck protection program was introduced, we were the first in our industry to release an online payroll report to help simplify the filing of the application for the loan. As a client of Paychex, we pre-populated the payroll information that you had ahead of time. We have processed this report over 0.5 million times for our clients and their CPAs to assist them. We also partnered with three FinTech companies, Biz2Credit, Fundera and Lendio to provide our clients with direct access to alternative lenders for the PPP loans if they