Paycom Software Inc at Barclays Global Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : If you think about this year was very volatile from kind of many different aspects. If you think about tariffs, new government, DOGE, et cetera. From your perspective, how has the year kind of played out so far?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And then the -- if you think about it, like what -- where I get a lot of questions on the -- from investors on the macro side, like you guys had very solid results, but there were some other players in your space where the numbers didn't come through like that much. And then the question was, was it macro? Is it kind of competition, et cetera? Like how do you think from kind of employment level conversations on that, how that's playing out for you? I mean not for you, but like for your space.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : When you say service level, how do you define that?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Do you think investors over-index a little bit macro, like I don't know how your conversations went so far, but like that's the one question I get all the time, but then I always try to say like, but Chad is kind of -- macro is one thing, but he's driving the company forward like more.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And then is it capacity -- well, but you always were kind of in [per sales] office, you always had like eight per sales office, et cetera. So if you think about like capacity increases, does that need to be like new offices then openings? Or how do you think about that? Or is it --

Question: Raimo Lenschow - Barclays Services Corp - Analyst : But that sounds almost -- and kind of leads us probably into the AI growth because like if the system is more automated and it's more decision-driven. So if you think, like I want is more on the user interface kind of I would think, this one sounds more like it's deeper in the system.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : I have to give you credit again because like we saw one of the more upper end of the market peers just spend like $1 billion on a system that might just kind of solve that. So the IWant was like how long did you work on that?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : It's out already, yes.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes, yes, yes. And then how do you think about like -- does that drive already improvement on the sales and sales engagement because with IWant, you have like a nice differentiation factor in the market. Does that kind of show up already?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And then how does it go back to my question, like how does it true up on sales guys engaging with prospective clients or going back to the installed base, like --

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Just as a reminder for all of us, like I want do I pay for that? Is it part of the overall package and then -- how is it with new clients? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 10:30PM, PAYC.N - Paycom Software Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And then the -- how sustainable do you think that is as an advantage? Like if you look at your industry you drove a lot of the innovation in the space, but there's kind of relatively quick follow-on for some of the stuff, like the single database for some time, it's kind of impossible so you can't really do that. But like how quickly do you think this will be like copied or how sustainable is that competitive one?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes, yes.

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Okay. I mean I know you're a very competitive person. And so if you think about it, if I'm listening to you now, like more seals capacity product is there, so you're looking forward to next year?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes, yes. Okay. Perfect. And then the -- yes, you mentioned earlier, like one of the drivers is like it's on -- I see capacity one to drive which was like new office. Historically, you always had like you're very thoughtful about like where you -- if you want to go into a market like how you do that. So is that kind of thoughtful cadence changing for you? Or like how do you think about that? Or did the processes improve or change that you kind of --

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And historically, you talked about like territory opportunities in terms of like what you cover at the moment, what you don't cover, Has that number changed? And can you remind us?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. Okay. And then the last few minutes, I want to talk about more like slip over a little bit on the margin side. Like one of the things that comes up a lot with investors is like if you do AI, how do you do that? In the hyperscaler, do you do it yourselves? Like talk a little bit about your setup on AI, like where are you doing it?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes, yes, yes. Okay. And then like the other big discussion point, that's one for you, Bob, it's like -- how do you -- do you use internally -- like I know Chad is always about increasing efficiency and not wasting money internally. Like are you guys using it internally like already? And what are you doing there?

Question: Raimo Lenschow - Barclays Services Corp - Analyst : And then the -- if you look at internal, is it the classic areas sort of like development is getting a little bit better because you can use tooling their support --

Question: Raimo Lenschow - Barclays Services Corp - Analyst : The last question for me and then it's time to say goodbye, it's kind of amazing. Last question for me is like as you think about better times next year, how do you think about margin as part of that? Because if you have more sales capacity, maybe more office opening, et cetera, do you -- LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 10:30PM, PAYC.N - Paycom Software Inc at Barclays Global Technology Conference

Question: Raimo Lenschow - Barclays Services Corp - Analyst : Yes. Okay, perfect. That's a good summary. Okay. Chad, Bob, good to see you again.