Segment Reporting

3 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

Segment Reporting

14.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 three months ended March 31, 2025 and 2024.

	Three Months Ended March 31,
	2025			2024
Revenues
Recurring	$	493.4		$	460.0
Implementation and other		6.6			6.0
Interest on funds held for clients		30.5			33.9
Total revenues		530.5			499.9
Cost of revenues
Operating expenses		66.3			63.7
Depreciation and amortization		18.3			15.0
Total cost of revenues		84.6			78.7
Gross profit		445.9			421.2
Administrative expenses
Sales and marketing		110.9			115.5
Research and development		62.3			50.5
General and administrative		66.0			(48.1	)
Depreciation and amortization		21.6			17.5
Total administrative expenses		260.8			135.4
Total operating expenses		345.4			214.1
Operating income		185.1			285.8
Interest expense		(0.8	)		(0.8	)
Other income (expense), net		6.0			5.0
Income before income taxes		190.3			290.0
Provision for income taxes		50.9			42.8
Net income	$	139.4		$	247.2