All right, good afternoon, and welcome to the TD Cowen HCM Summit. I'm Bryan Bergin. I'm joined by my colleague, Jared Levine, and we're very excited to have you and to be with Paycor. With us from Paycor, we have Adam Ante, CFO, Ryan Bergstrom, Chief Product Officer, and Rachel White, Head of IR. First off, thank you all for being here today. Yeah, thanks for having us. For the audience, this is gonna be a 35-minute discussion, and you could add your questions into the platform here. We'll insert those into the conversation as we go, and with that, we're gonna get right into it. To start, I think, you know, Adam, Ryan, it probably makes sense, just each of you, if you could share a brief background, how long you've been with Paycor, what are your core responsibilities? And also any other relevant industry, you know, prior experience within the industry before joining the company. Yeah, I'll maybe start and then hand it over to Ryan. I've been the CFO with Paycor for about four years now, and spent a couple more years here before that, so just about six years total. And prior to this, I'd spent time with a company called Vantiv, which has now become Worldpay, and then FIS, and then now Worldpay again. But spent a lot of time around that, and really managing sort of all areas of finance here for Paycor. And previously, some corporate development before we added our Chief Strategy Officer, Swati Garodia. So, we've been around payments and financial technology as well as now HCM here for the last six years or so. Ryan? Yeah, and I've been also just about six years now at Paycor as the Chief Product Officer. You know, really responsible for all things product, so of course, that means our product roadmap, you know, where we're going to support the overall company strategy, and everything we're doing in that space. I've really spent my career actually in the HCM space, most notably for eight years prior, at Ultimate Software. And then for the benefit of anyone in the audience that doesn't know Paycor well, can you provide a brief overview of what segments of the market Paycor serves? How many clients and client employees are served? Yeah, absolutely. So, you know, we are a cloud-based HCM software platform. Our mission's really to focus on empowering our customers to build winning teams. And, you know, we're really focused in the 10-2,500 segment, so 2,500 employees, up to that. And we have more than 30,000 customers today across 2.5 million employees. And, you know, we've really been focused on the mid-market and the upper mid-market. That's where the majority of our growth has come from, really in that 100+ segment. We have a full HCM stack that Ryan could talk about, from Talent Acquisition, onboarding, Talent Management, OKRs, Analytics, and then, of course, all the payroll, core payroll capability. Great. And Adam, we get to you every quarterly conference call, so we'll pick on Ryan here a little bit. Sure. So Ryan, you've been with the company nearly six years, I believe. Clearly a lot of change at Paycor over that timeframe. So let's dig in, and can you talk about maybe some of the core initiatives that you've driven? And really, aside from just the product and the modules now available on the platform that we see externally, are there more, you know, more notable developments you would call out that and the insiders would see, the outsiders not necessarily see? Yeah, that's a really good question. Obviously, we're really proud of the growth of the product and what that's helped to do for the company. But, you know, there is a lot, as you say, that we've done internally to kind of make that growth of the product happen. I'd say we've been really focused on how we modernize our product practices. Has been one kind of key pillar I've been after, which is, you know, probably when I first joined, we were very inward focused. We thought a lot about how do we work well with engineering. We didn't spend enough time necessarily really dialed in on the temperature of the market, the trends in the market, and really understanding the problems our customers were facing. So we've spent a lot of time shifting our focus to be more outwardly focused, to help drive that innovation, to help drive that product growth. You know, I'd say the other thing we've really driven hard on is just kind of our predictability as a product organization, product and engineering organization. You know, everybody works in an Agile software mode for the most part these days, but one of the challenges with Agile sometimes can be, you know, it's a you-get-it-when-you-get-it kind of delivery mindset, and that doesn't work for the rest of the business. So we've really revamped our product development practices to be, more than anything, very predictable, so that as we, you know, lay out our roadmaps, lay out our plans, those are things we can deliver on with confidence, and that our partners around the business can count on us delivering as well. And hopefully, you see that in all the, you know, releases that are coming out to the market these days. Yeah, for sure. Maybe on that product development team, how large is that organization, and how has that trended over the last couple of years? Yeah, it's roughly about 500 people. You know, with the majority of that being in engineering. We want as many people fingers on keyboards, so to speak, as possible, creating product. And, you know, I'd say overall, it's kind of trended in line with the growth of Paycor. So as we grow, we're able to keep growing our investment and our team size, but it's something we manage really tightly to make sure we're doing it, you know, very efficiently and getting the most out of that spend. On the demand side, how would you characterize the current demand environment within the US SMB, HCM market? Has there been any change in lead volumes or pace of prospective client decision-making so far in 2023? Yeah, and I think that for us, it's seemed really consistent, has been the key theme over the last couple quarters. We've seen at the top end, like the top end of the funnel, from lead gen, impressions, and FTAs, or the first-time appointments that we have with customer; it's been really consistent, and we have a really strong pipeline that we felt good about going into, you know, this sort of peak buying season or this key buying season for the HCM market. So it's been really consistent, and, you know, I've heard commentary on maybe changes in the buying patterns or pushing out decisions. It's just not something that we really see. We have our sort of lead to close timeframe in that sort of 45 days or so. And so we have lots of smaller customers that we sell that can happen within a couple days or a couple weeks, and then we have some larger deals in the large end of the upmarket, that can take longer than that. But, you know, even still, it's like 60 days it ends up being the average in terms of the length of cycle. And that really hasn't changed too much, from what we've been seeing for really the last year or so. 'Cause we have been having this conversation on slowing demand, and change in the labor market for more than a year now, and it's just been more consistent than it really has been changing. What do you believe are the primary demand drivers today, and have those changed in the past year or so, or even relative to pre-pandemic? Yeah, I mean, we really have, like, a two-pronged approach in terms of the value props of the customer. There's really, like, the efficiency of the payroll, the efficiency of the workflows, and how you can enable on the talent acquisition side all the way through. The onboarding, it's just easier, it's faster. You save time, you save money. And so there's that value prop. There's also the value prop around enabling a better employee experience, driving performance in the organization, helping the organizations grow. And both of those, both of those models, of course, have their time. I don't think that we've seen necessarily a change in the way that customers are engaging in those value prop. I mean, the efficiency play within payroll and your workflows internally, it's always a great play. I think as the market were to if, if the demand market sort of pulls back, I think folks will lean into that even more. That's what we've seen. I wasn't in HCM in 2007, but I think that that's, you know, during the financial crisis, part of what continued to prop up the industry there was around that sort of core functionality is always needed, and let's always get more effective. And then on the talent side, it really comes down to like niche parts of the market. There's plenty of markets industries and whatnot that continue to grow, and they're continuing to look for labor. Talent attraction is still a key part of the message. And then also employee engagement. Employee engagement has sort of trended down nationally and globally for some time, and organizations are looking for more and more ways to engage their talent internally and retain them, so they don't leave. The labor market continues to be just incredibly tight right now, so that value prop resonates as well. How outside of payroll, what are the primary HCM modules that clients typically purchase, and how have attach rates trended? Yeah, I mean, so, Ryan can talk a little bit more about it, but, I mean, we break our product down into sort of four key... Excuse me, five. We just launched a fifth one, so we have five key bundles. One is the HCM Core, which is really payroll and onboarding, and the analytics and HR capabilities. And then you have Talent Acquisition. Talent Acquisition is our newest bundle, where we split out our talent module into two, Talent Acquisition and Talent Management. The Talent Management side includes, of course, all performance management and OKRs, and you can go deeper inside of the, you know, the engagement there. And then we have Benefits Administration, which is a third-party product, and then we have a Workforce management solution, which is our time solution. Those are the four keys and or the five key. In terms of attach rates and change in attachment penetration, what we've really seen is 100% of our clients have to buy the HCM Core. Talent Acquisition and Talent Management, which is just separated, has been in that sort of 35%-45% range, fairly consistent and it's grown pretty well over the last couple of years. So we see, you know, really strong adoption there. And then the benefits and Workforce Management is fairly consistent, because usually clients either need it or they don't need it. In terms of Workforce Management, if you're gonna be tracking time, then you sort of need it, or you'll have some sort of vertically niche specific solution that you might want to get into. So that's been really consistent between both that and benefits, which, again, is the same sort of dynamic. You either offer benefits or not. And then with us, we are a little bit more agnostic to the benefits technology. So if you want to use a third-party benefit solution, we're fine with it. We do the integration, we'll enable it, and part of that is actually the benefit of or to our brokers' benefit. So we work with third-party brokers who sometimes prefer their own solutions or their own tech stack, and we're fine with that. We welcome the integration instead. From an investor perspective, it's often difficult to determine the primary differences between Paycor and other peers. As you assess your HCM suite capabilities and strategy versus peers, what do you see as the primary differentiation? Yeah, it's a really good question. Yeah, we think of kind of three primary pillars when we think about our strategy, and the first one starts with what we'll just call the HCM basics, right? And that is accurate payroll on time, every time. That is nailing the compliance every single time. You think of just the complexity in keeping up with all of the changes in laws that customers deal with, right? That's something we have to get right every single time. It's getting the workflows and things like that automated. Like, those are the things that are the base cost of just kind of playing, right? And we have to do those really, really well, 'cause you can't start to move to the higher value, more strategic offerings if we're not nailing those basics. So that's, that's first. I think second is our flexible platform and technology. So one of the things we've really focused in on over the past few years is driving a lot more configuration in the product to meet the customer business needs, and you see that through some of the different industries that we play really strongly in. But also really driving some more of the integration and interoperability kind of capabilities. But by nailing those two things, where we really then start to differentiate is in this concept of how we help our customers power their people and their performance. And it's in our tagline, right? "Empowering leaders to build winning teams." What we've seen from our customers is there's this major gap-... between kind of the business strategies they lay out and how they actually get executed down at the ground level. The biggest challenge they're having is with the frontline leaders implementing those challenges. Because a lot of these people are new to their jobs. There's been a lot of turnover in these ranks, not just because of all the job changing over the past few years, but some of the generational shifts that are going on. And that rank of employees needs a lot of help. And they're the ones who drive employee engagement, and they're the ones who drive business results. So what we've been able to do is, as we roll out and really try and differentiate against the competition, build in tools that help those leaders be better. And that's in our talent suite, that's in lots of other areas. Because if we can help those leaders be better, we know that the customer's business result is going to be better, and that takes us from being, you know, not just a, another business tool they happen to use, but much more of a strategic partner for a company to help them drive success. Okay, that's clear. That's very helpful. Let's dig into product development or recent ones that you've been talking about. So Embedded HCM is one of those. Can you talk about what that is, what it's solving for, and what kind of vendors you're targeting to partner with? Yeah. So, you know, this really came about as we thought about some of the key gateways to enabling really a lot of growth inside of the HCM market. And, you know, one of the key limiters is distribution and your ability to stand up distribution. You know, in the mid-market, it's really a face-to-face sale in a lot of cases. And so that's been one of the limiters to growth, and then also the operational sort of intake of those deals through implementation into the business. Pretty much everybody in the mid-market space really go to market through a direct channel and do all the implementation internally. And so as we started to look at other business models and ways to get after big chunks of the market, where, you know, we're just gonna have to go face to face and in sort of hand-to-hand combat, we started to identify more and more of these software partners who either had a payroll solution or needed a payroll solution, and they weren't able to do it effectively. Because it really takes quite a bit of scale to get effective at payroll on the payroll side. There's still operational processes to support it, the compliance, the continuing updating, the money movement side, and really tax filing back with all of the localities. It's very complex, and so you've seen some providers who have their own software solution, which tends to be like an ERP or maybe a workforce management or POS, and then they try to either add on or buy or build a payroll solution, and it ends up being really messy, and it ends up killing their, their sale and the value prop to their customer, even though it could be a really big positive for them. And so, as we started to have some of these conversations, and this was really starting back a couple of years ago, we identified this need where we really wanted to become the provider, the payroll provider specifically, for those software providers and really white-label the solution through these front-end providers. I think one of the most compelling parts about that is that they're able to go to market with a more complete solution for the customer, and we don't have to deal with the acquisition side of that. I mean, so the cost of acquisition is significantly lower, and we're creating an opportunity to get after a huge part of the market where, with us having less than 2% market share, it's just gonna take us, you know, I mean, that's a great opportunity for us, but it's also, in this case, an opportunity for us to grow even faster. Yeah, no, it makes clear sense. I guess another demonstration of kind of the open approach that you've taken across the strategy too. Maybe can you talk about how you're thinking about the scale of that ISV or the market opportunity that you're pursuing here? And are there any particular industries that are where it's most relevant? Yeah. You know, in terms of the, the scale, about a third of the entire market, not just the mid-market, but a third of the entire market, is really with these regional payroll service bureaus and in-house providers. And, and so when we're competing in that space, which is sort of half of the entire mid-market, a third of the entire market, if you sort of scale up and down, we run into, and I think we take share primarily, and, and all the cloud players take share from this, this big chunk of the space that is underserved. Payroll service providers, these PSPs, are primarily local, and then you have these in-house providers that are old, again, legacy ERP solutions and POS solutions that they have this payroll tuck in, but it's, it's usually just a, a terrible experience. So there's a huge part of the market where this is an opportunity to serve, and even early in building our pipeline, we've found that there's considerable access to segments of the market that we either... Again, that are either going to take forever for us to get after, or that they're looking for something niche that necessarily- that doesn't necessarily work for, you know, any of the payroll providers. Like, this sort of solution within an embedded payroll and HCM into another offering can be even more effective and get after it even faster. Then in terms of AI, let's segment this between pre-Gen AI AL/ML development versus gen AI. First, can you talk about some examples of how the company was leveraging AI models in the platform before gen AI became a mainstream topic? Yeah, and I love the way you asked the question, too, 'cause it's, you know, gen AI has generated so much hype recently that sometimes we forget that AI existed before Gen AI. And so maybe just a couple examples of things we've been up to for years now. I'd say one was within our survey tool. And so that's the, you know, the tool where customers can send out surveys, whether those are kind of quick pulse surveys or bigger engagement surveys to their employees, to get feedback. And one of the challenges with any survey is getting the answers are not in the, like, 1-5 scales, right? Those are not where the interesting stuff is. The interesting stuff is in all that free-form text that comes back that employees typed into surveys. And so an example there is we've used natural language processing and sentiment analysis to kind of quickly make sense of all of that free-form text, do the heavy lifting for the leaders, group that feedback into different types of categories as it relates to kind of the work-life experience, and then help them understand where there's positive trends, where there's negative trends, so they can quickly act on the feedback they've getting- or they've been getting in the surveys. Second example would be our Smart Sourcing tool, and using the AI to go out and find qualified candidates based on the job description and based on some of the recommendations and calibrations that hiring managers and recruiters do. So we can use AI to quickly bring back and source passive candidates directly into our customers' recruiting stream. So both of those have been really powerful parts of the system in the AI world, you know, long before GenAI became the favorite topic. And then now how about on the GenAI front? We understand you recently announced GenAI analytics digital assistant. Can you talk about that as well as other developments in the suite that are leveraging large language models? Yeah, for sure. And so the, you know, the Digital Assistant one, the analytics offering has been a key piece of the platform for years now. We've-- That's actually part of that core bundle that Adam was talking about 'cause we kind of believe every company needs to understand their workforce and the trends that are going on in their workforce. And so what the digital assistant does is it just makes it that much easier to understand. So rather than kind of navigating through the guidebooks or searching for things, you can just simply ask a question of the system. "What's my turnover? Where am I paying too much overtime?" You know, those kinds of questions, and the system brings back your answer in that kind of chat experience. But what's kind of really cool about it, too, is it then actually brings back the supporting analytics or graphic to see that. Kind of like you sometimes see the citations, right? When you get responses back, like, that's the citation. So not only do you get the answer, but you get the view of that graphic as well. Other areas we've put it into play already are things like the Job D escription Generator. One of the biggest challenges we see customers have while they're recruiting is it actually takes a lot of time to create job descriptions. They often don't have those things set up, and the quality of the job description is really critical for actually getting good candidates back. And this is one where kind of multiple AIs have come together. So the AI from GenAI that creates that job description helps the Smart Sourcing tool be even better. 'Cause by creating those better job descriptions, we're helping customers then go get even better candidates. And so those are some of the recent things, and we've got more, you know, that we'll be sharing in the coming months as we get it farther along and bring it to market. How does the cost to compute for GenAI impact your view on pricing? You know, using, in terms of monetization, do products leveraging GenAI need to be priced in a different way, such as consumption versus typically PEPM-based pricing that you utilize? Yeah, it's a really good question. I'd say we're early days, you know, on kind of figuring some of that stuff out still. We have seen that with some of the ideas that we've brought forth and even done some work on in the AI space, that sometimes the cost that comes along with them may not actually justify the investment, and that's helped us pick the right direction to go. In terms of how we price it, you know, at the moment, most of these things have come in as part of the individual products where they are without an additional PEPM or transactional fee associated with them. That may change in the future, but I do think, you know, kind of the AI will continue to just be more and more a foundational part of the platform. And we'll make sure that we're counting for those costs in terms of the value we're capturing in the fees. Got it. And then in the future, how do you believe AI will be leveraged within your offerings? Anything you can share? Yeah. You know, I probably can't get into exact specifics yet, but I can tell you more what we're thinking about from a the overall vision point of view is back to that message of how we empower leaders. You know, there is a lot of stuff that AI can do to just automate some of those routine, everyday tasks that leaders have to do every single day. And if we can lift more of that burden off of their shoulders, we give them more time back in their day, and all of that time hopefully can go back into running the business, right? And putting more time into their team. So I think our overarching vision is: how do we use it to really augment and supercharge the capabilities of the leaders, help them make better decisions, help tasks be done for them, help the system engage them in new ways that it maybe doesn't today, are the ways you'll see us going with it. You talked earlier about kind of the open approach to the platform and companies mentioned the interoperability engine in the past as well. Can you just talk about maybe why is that important, and what are the benefits to not just Paycor, but to your clients? Yeah, and it's a good question because it is kind of a two-way street in terms of benefits. It's a virtuous circle, right? And so in terms of why it's important, this is... You've heard Raul talk about this for multiple calls now, right? This has been a major investment, and we've taken and grown our marketplace of partners by more than 10x. We've taken and grown the number of actual just APIs and connection points in the system by even more than that from a scale factor, and it's helpful in two ways. From the customer's point of view, we are kind of the spring from which all of their employee information flows, right? We're the master system of record for that, but they have so many other systems out there that need that information. And without the integration capabilities, they're out there doing dual data entry. They're keying things in multiple places. They're making mistakes when they do that, and it's, it's adding up to just a lot of time and a lot of expense for them. And so from an integration standpoint, the value for them is it just, it simplifies their life. It ensures that the data is correct as it flows between all these different systems. No one's messing it up as they're putting it in different places, and it saves them a significant amount of time, which translates again, you know, to, to save costs, cost savings as well as time savings. And then from our point of view, it's valuable because, well, one, if we can get tied into more of their systems that they have all around their world, we're that much harder to pull out, because we're providing a level of value that they haven't been able to get before. So it definitely leads to stickiness and better retention for Paycor. But, you know, through the investments in the kind of the ease of use of that platform too, it also just really kind of drives up our awareness. And so now you get some of the more technical types of resources involved from a customer point of view, and so we have, you know, more stakeholders, more people who are invested in the Paycor system. So it really drives customer retention on our side, but it also makes our life easier 'cause we're not having to support all of those duplicate processes and so forth too. So it's truly a win-win, both for us and for our customers. ... Okay, and now you've built out hundreds of partners. Yeah. Can you kind of just discuss some of the monetization around those, the partner offerings, and, and are there notable ones or notable areas that really stand out? Yeah, you know, in the areas or kind of categories is the way to think about it, right? And so, you know, if you think of kind of the flow of an employee life cycle, I mean, it may start with job board integrations and background check vendors. You know, it's going to flow through to health and wellness, right? So your medical, your dental, your carrier interfaces, those kinds of things. Very common to integrate with the company's GL software in particular. We see, you know, in certain industries, things like point-of-sale systems are really common. Like, an employee will be hired right at the register, and then we'll integrate, so we can pull that information back in. So it really leads to the automation there. You know, from the, the modernization side, it was—it's really all about a viewpoint change, I would say, from our point of view, of, of moving APIs up to be a first-class citizen. And I'm sure you've heard a statement like that in the past, right? But it's a, a change in how you develop to say, like, every time we build something, we're going to be thinking of those integration use cases. We're going to be exposing the right endpoints. We're going to be building then all of the documentation that goes into the developer portal to make it easy for partners to be able to then interact with it as well. So it really adds kind of to the definition of done, almost, for a feature, to think of integrations as that, that first-class citizen. As you do that, then the whole system starts being open and available for our partners to work with. Okay. And then I guess approaching integration from a different angle, when we think about M&A integration, how do you go about integrating the handful of acquisitions that you've done over the recent years into the platform without making it feel kind of clunky and really impacting the UX? Yeah. Yeah. Well, and certainly all of that investment I was talking about, like, it pays off in multiple ways, and, and the M&A integration is one of those. But I think stepping back from that, it's more of our, our strategy or vision around how we approach an M&A is what we don't want to do, is create that kind of duct tape and bailing wire experience, right? When we, we first acquire a new solution. We don't want people to have duplicate logins, duplicate data entry, duplicate reporting. Before we go to market and, and truly start selling it, we're going to be taking the time to integrate the data models, the security models. We'll actually go through the UI as well and start getting the, the acquired system to really look and feel and behave like Paycor as well. And then the first thing we'll do, again, even before we start selling, is we're going to bring it in through a beta program. So we'll have a group of customers live on that for the first time, helping us understand, you know, along the way, have we gotten everything right? Is the system flowing? And not until we have all of that work done, all of that integration, the first group of users through, do we start selling it. The good news in all of that, though, is that may sound like: Holy cow, that's going to take, you know, a very long time. But we're doing this in three to six months, so we're able to do these kinds of things very, very quickly, and start, you know, generating the bookings and revenue from them. Then some of your peers have started to broaden strategies internationally. Talk about whether Paycor has similar ambitions. Are there any challenges you would face in expanding your platform internationally, particularly on the payroll side? Yeah, I'm going to talk a little bit about how we're thinking about it, and maybe Ryan can add some of the product, you know, feels. I think, first, we think about the mid-market as so vast for us in terms of our ability to get after so much of the market that we really aren't necessarily interested in expanding to customer acquisition in other countries yet. So that's sort of the first line as we think about where the opportunity lies. You know, there, there's... I sort of think about it in a couple of layers. Like the first layer is really around our ability to help our customers today manage labor, sort of wherever it exists and however it exists. There's some things we're doing around that first, before then we get into an ability maybe to run payroll in another country. I think, like, generally, this isn't done well in the industry anyway. Like, the ability to use one platform and just pay everybody across the world, it just almost doesn't exist at all. And you have to use a lot of third parties in the background. So I think when we get to that point where we think that that's the next iteration for us, I feel like we'll be set up well from a product, you know, interoperability perspective, but we're really focused on just sort of leveraging partnerships today to enable, you know, third countries where our customers really wanna go. Ryan, anything you'd add to that? Yeah. No, I think it was, that was really good, and, and as we think about that expansion, it's just continuing to kind of expand on the flexibility of the platform, right? As you go country by country, there are different fields that need to be collected, there are different formats that need to be collected, there are going to be different compliance kinds of regulations to be in place. So it's continuing to invest and ensure that the platform is flexible to be able to handle those rules that come at us. One good news is, or piece of good news in that world, is that the U.S. is probably one of the most complex countries to actually do business in from some of the compliance standpoint. So there's a really fantastic foundation there that we can just keep expanding on. Great. And then Paycor say the combination of ADP and Paychex, regional vendors, and in-house solutions account for most new bookings. First, what do you define as in-house solutions, and how much runway of regional vendors and in-house solutions do you believe there is? Yeah, so I mean, in-house is really between Excel, which you could be doing it in Excel, up through, you know, third-party ERP solutions, which we run into quite a bit. And I'll give you a good example, 'cause you wouldn't think that there's a lot of firms using Excel, but we run into them all the time. And we just signed a National Basketball franchise earlier this year, and they were doing all their payroll in Excel still. And there's just inertia inside of that category, right? Where it's difficult to overcome that inertia, but it's been wildly successful for them, even just early days. But that represents about half of the space that we see in the mid-market between the payroll service bureaus, which they're usually using, like, a third-party technology, these smaller PSBs. They're using a third-party technology. Usually the technology's not that great. They don't have expansive, like, HCM solutions, so they're usually piecing together an HCM like, sort of Frankenstein solution, really based on what their customers are just asking for: "Hey, I really want this." And they don't own, really, any of the technology. So we run into that all the time, and that's really... that's a pretty easy win from our perspective, when you have those sort of regional payroll service bureaus. And on the in-house side, it's usually that, you know, they're running into tax issues, they're having pay issues. The technology is not keeping up to date on the compliance, so they're not able to get them there. Those companies who are, you know, sort of legacy ERP solutions, and again, part of the reason why we like the embedded HCM channel play, is that they can't invest in the payroll and the compliance and the tax management side. They can't invest like, you know, we can invest and like the scale players really do invest. So we see that as about half of the entire market, with lots of opportunity to continue to sort of win against all the head-to-head, and then enable the embedded HCM channel as well. It was interesting to hear organizations beyond a mom-and-pop shop running their payroll in Excel, and it's often... I think something the investment community often just forgets or, or doesn't appreciate, is that fragmentation, even at mid-sized companies. That's interesting. Yeah. I know, I know we're coming up on time here in a couple minutes, so maybe, maybe one more as it relates to kind of the future view. Any, any interesting trends in the market that we didn't discuss here that you think are important to call out? And I guess as you guys are focused on the medium term, what's most important for Paycor? Yeah, I can start, and Adam, jump in, too. But, you know, one of the things we didn't talk as much about that we definitely find really interesting is just kind of the longer term projection of the worker shortage, right? That's going to continue to exist. And why we find that really interesting is it means two things, right? It means companies are going to have to keep investing hard in the people they have to grow their skills, and they're also going to have to focus really hard on how they retain them. And we think, you know, with that focus we have on empowering leaders, and some of the strength you've already seen from us in our talent suite and some of the places we're going, that there's just a really amazing opportunity for us to capitalize on that, and we're already seeing demand for it now. And as that trend continues over the coming years, I think that's only going to accelerate. So that is one we're interested in. Excited about maybe isn't the right way to say it, but I think there's a huge opportunity there for us to really capitalize and deliver some great solutions there. All right. Adam, any parting thoughts before we let you off the hook here? Yeah, no, I mean, thanks for having us. I really appreciate it, always appreciate the partnership with you guys. Yeah, you know, I think that a couple of the things that we're thinking about, especially when the market and sort of within the HCM cloud space, has been fairly disrupted over the last couple weeks. I mean, it's really the consistency of our model and our execution that's been really important to us as we thought about going public. Like, the first thing we said was that we just need to build... well before we actually took the company public, we need to build that execution capability, the consistency, the visibility. And we have, like, Raul brought in a whole new management team a couple of years before we really took the company public. And, you know, Ryan and I were here just a little bit before Raul started, but really, you know, the company accelerated over these last, you know, four or five years as we've been able to execute really well. And so even while the market's been... You know, there's been questions over the broader macro environment, and which everybody's trying to navigate that. You know, part of what we've tried to drive is just, you know, a little bit more visibility and consistency in our operating model. So we're really happy with... We've gotten there a little bit faster than we had anticipated, even taking the company, you know, post-public a couple of years ago. And, we're just going to continue to execute, execute as best we can. All right. Well, very good. Well, we appreciate all your time, so thank you for joining us. And for the audience, thank you for joining as well. Next up, at 2:25 Eastern, will be Docebo. Thanks, all.