Segment Reporting

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Reporting

15.SEGMENT REPORTING

The Company conducts business as a single operating segment, which is based upon the Company’s current organizational and management structure, as well as information used by the CODM to allocate resources. The Company derives revenues from customers by providing a cloud-based HCM solution delivered as Software-as-a-Service. Our solution is based on a core system of record to maintain a single database for all HCM functions and all of our clients are required to utilize our payroll application. The Company derives revenue primarily in North America and manages the business activities on a consolidated basis. No individual client represents 10% or more of total revenues.

The accounting policies of the segment are the same as those described in Note 2 “Summary of Significant Accounting Policies”. The Company’s CODM is our Chief Executive Officer. The CODM assesses performance for the segment and decides how to allocate resources based on net income, as reported on the consolidated statements of comprehensive income. Net income is used monthly to monitor budget versus actual results. The CODM manages the business using consolidated expense information as well as regularly provided budgeted or forecasted expense information for the single operating segment. The total assets of the segment are reported on the consolidated balance sheets. Significant non-cash items including expenditures for purchases of long-lived assets and non-cash stock-based compensation expense of the segment are reported on the consolidated statements of cash flows.

The Company does not have any intra-entity sales or transfers.

The table below highlights the Company’s revenues, expenses and net income for our single reportable segment, which are consistent with amounts reported on the consolidated statements of comprehensive income for the years ended December 31, 2024, 2023 and 2022.

	Year Ended December 31,
	2024			2023			2022
Revenues
Recurring	$	1,733.9		$	1,563.4		$	1,323.8
Implementation and other		24.4			22.3			18.7
Interest on funds held for clients		124.9			108.0			32.7
Total revenues		1,883.2			1,693.7			1,375.2
Cost of revenues
Operating expenses		267.4			223.7			169.8
Depreciation and amortization		67.2			52.6			42.9
Total cost of revenues		334.6			276.3			212.7
Gross profit		1,548.6			1,417.4			1,162.5
Administrative expenses
Sales and marketing		434.4			417.6			346.6
Research and development		242.6			199.0			148.3
General and administrative		158.6			288.1			239.1
Depreciation and amortization		78.7			61.4			49.8
Total administrative expenses		914.3			966.1			783.8
Total operating expenses		1,248.9			1,242.4			996.5
Operating income		634.3			451.3			378.7
Interest expense		(3.4	)		(1.9	)		(2.5	)
Other income (expense), net		18.1			23.0			13.4
Income before income taxes		649.0			472.4			389.6
Provision for income taxes		147.0			131.6			108.2
Net income	$	502.0		$	340.8		$	281.4