Financial Data and Key Metrics Changes - The company has seen a stable demand environment since Q4 of the previous fiscal year, with strong execution reflected in financial performance, beating expectations and raising guidance significantly [5][6][68] - The company is guiding for approximately 100 basis points of ex-float EBITDA margin expansion for FY 2025, despite headwinds from the Airbase acquisition [38] - Long-term adjusted gross margin targets are set at 75% to 80%, compared to last year's performance of 74%, driven by scale and lighter implementation lifts for existing products [42][43] Business Line Data and Key Metrics Changes - The company has maintained a relatively flat level of employees on the platform, which has moderated growth expectations compared to pre-COVID levels [8][70] - The acquisition of Airbase is expected to enhance the company's offerings in spend and expense management, expanding its product suite beyond HR functions [25][87] Market Data and Key Metrics Changes - The broker environment is highly fragmented, presenting opportunities for the company to expand relationships and increase referrals from brokers [18][79] - The company targets businesses with 15,000 employees, with a significant runway for growth as it currently serves only 40,000 clients out of over 1.3 million potential businesses in the U.S. [60] Company Strategy and Development Direction - The company aims to be a destination for referrals by providing significant value to the broker community, focusing on technology investments that facilitate data integration [12][83] - The strategy includes expanding into the office of the CFO and IT departments, leveraging existing HR data to automate processes and improve client experiences [36][87] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the stability in the demand environment and the company's performance, indicating a positive outlook for the remainder of the fiscal year [6][68] - There is an acknowledgment of potential challenges in the market, but the company is positioned to take advantage of any disruptions that may arise from industry M&A activities [11][20] Other Important Information - The company is exploring the integration of Gen AI into its offerings, aiming to enhance client experiences and operational efficiencies [46][50] - The company has a consistent track record of growing sales headcount, focusing on productivity and efficiency in its go-to-market efforts [55] Q&A Session Summary Question: How would you characterize the current demand environment? - The demand environment has been stable since Q4 of last fiscal year, with no significant disruptions impacting performance [4][68] Question: What are the primary headwinds to growth the company is facing? - The company has guided for a flat level of employees on the platform, which has moderated growth expectations compared to pre-COVID levels [8][70] Question: How does the recent M&A activity in the industry create opportunities for Paylocity? - The company is prepared to take advantage of any disruptions in the broker market resulting from the integration of competitors [11][12] Question: What is the expected penetration rate for new offerings like Airbase? - The company targets a 10% to 20% penetration rate over a three to five-year timeframe for new solutions, including Airbase [31][90] Question: How does the company plan to leverage Gen AI in customer support? - The company is already implementing AI to enhance client experiences by surfacing answers to common questions, aiming for better service and efficiency [51][52]

Paylocity (PCTY) Conference Call Summary Company Overview - **Company**: Paylocity (PCTY) - **Date**: May 29, 2025 - **Key Speaker**: Ryan Glenn, CFO Industry Context - **Industry**: Human Capital Management (HCM) - **Current Demand Environment**: Stable macro environment with some volatility noted in customer conversations [3][4][6] Core Insights 1. **Sales Performance**: - Paylocity has seen strong sales performance, beating and raising revenue and profitability expectations for three consecutive quarters in fiscal year 2025 [4][5] - The sales team has executed well, maintaining stable client workforce levels [6] 2. **Customer Sentiment**: - Some signs of buyer caution are emerging in client conversations, but this has not yet translated into quantitative impacts on sales [7] - Conversations with clients indicate concerns about macroeconomic conditions, but overall demand remains stable [6][7] 3. **Market Segmentation**: - No significant differences in sales conversations between small and mid-market clients (500 to 1,000 employees) [9] - Paylocity's software is adaptable to client needs, whether focused on cost reduction or enhancing employee engagement [10] 4. **Sales Strategy for Fiscal 2026**: - Paylocity plans to increase sales rep headcount by approximately 8% in fiscal 2026, continuing to focus on productivity and onboarding [12][13] 5. **Growth Projections**: - Guidance for fiscal 2026 includes approximately 14% growth in recurring revenue and a 100 basis point increase in operating EBITDA margin [15][16] - The company aims to maintain a strong growth trajectory while managing macroeconomic uncertainties [17] 6. **Acquisition of Airbase**: - The acquisition of Airbase is aimed at expanding into the office of the CFO, enhancing offerings in spend management and procurement [18][19] - Integration efforts are ongoing, with a focus on providing a comprehensive view of labor and non-labor spend [20][25] 7. **AI Integration**: - Paylocity is embedding AI across its products to enhance efficiency, such as automating HR inquiries and optimizing scheduling [26][27][30] - The company is investing in AI capabilities to improve client relationships and reduce manual efforts [30] 8. **Average Revenue Per Account (ARPA)**: - The company is shifting focus towards ARPA as it expands beyond traditional HCM offerings, indicating a potential change in pricing structures [34] 9. **International Expansion**: - The acquisition of Blue Marble has positioned Paylocity well in the international payroll market, catering to US multinationals with remote employees [38][39] 10. **Capital Allocation and Buybacks**: - Paylocity has a $500 million buyback authorization, with $300 million repurchased to date, indicating a commitment to returning value to shareholders [44][45] - The company maintains a healthy balance sheet and is open to opportunistic M&A while continuing buyback activities [45] Additional Considerations - **Margin Performance**: Paylocity has achieved over 500 basis points of operating EBITDA leverage in the past two years, focusing on efficiency and investment in growth [41][42] - **Future Outlook**: The company anticipates a more normalized rate of margin expansion in fiscal 2026 while continuing to invest in product development [43]

Industry Overview - The staffing industry is crucial to the global economy, connecting businesses with necessary talent for growth and innovation [1] - The industry includes services such as temporary placements, executive searches, workforce consulting, and outsourcing [1] Emerging Trends - By 2025, the staffing industry is expected to evolve with trends like AI and automation improving recruitment processes and candidate matching accuracy [2] - There is a shift towards skills-based hiring, moving away from strict educational requirements to focus on practical competencies [2] - Flexible work models, including remote and hybrid arrangements, are becoming standard, prompting staffing firms to adapt their strategies [2] Market Demand - The job market is evolving due to technological advancements and changing workforce dynamics, leading to increased demand for staffing firms [3] - Businesses are seeking agile workforce solutions, making staffing companies attractive investment opportunities [3] Market Projections - The global staffing industry is projected to reach $650 billion by 2025, reflecting a 5% growth from the previous year [4] - Factors driving this growth include labor shortages, the gig economy, and digital transformation in recruitment processes [4] Investment Opportunities - The growth of the staffing sector presents compelling investment opportunities, with companies like TriNet Group, Upwork, and Paylocity gaining traction [5] - Advanced tools are available to identify stocks that can capitalize on the hiring boom in this high-growth industry [6] Company Highlights: TriNet Group - TriNet offers end-to-end HR solutions tailored for small and medium-sized businesses, managing payroll, benefits, risk mitigation, and compliance [7] - The company provides premium employee benefits through a co-employment model, enhancing employee satisfaction and attracting top talent [8] - TriNet's cloud-based HR platform supports recruiting, onboarding, performance tracking, and workforce analytics, enabling data-driven decisions [9] Company Highlights: Upwork - Upwork connects businesses with freelancers, allowing access to specialized skills for both short-term and long-term projects [10] - The platform's cost-effective model reduces overhead expenses associated with traditional hiring, optimizing resource allocation [11] - Upwork streamlines the hiring process with advanced search filters and communication tools, facilitating quick onboarding and collaboration [12] Company Highlights: Paylocity - Paylocity offers AI-powered solutions that streamline HR processes and enhance workforce management through a unified cloud-based platform [13] - The AI Assistant provides real-time support, while predictive scheduling and personalized learning recommendations enhance decision-making [14] - Paylocity emphasizes employee experience with tools for feedback and recognition, catering to a modern, distributed workforce [15]

Revenue Growth - Total revenues increased from $401.3 million for the three months ended March 31, 2024 to $454.5 million for the three months ended March 31, 2025, representing a 13% year-over-year increase [88]. - Recurring and other revenue accounted for 91% and 93% of total revenues for the three months ended March 31, 2024 and 2025, respectively [96]. - Recurring and other revenue for the three months ended March 31, 2025 increased by $54.3 million, or 15%, to $421.1 million from $366.8 million for the same period in 2024 [113]. - Recurring and other revenue for the nine months ended March 31, 2025 increased by $145.0 million, or 15%, to $1,101.9 million from $956.9 million for the same period in 2024 [122]. Profitability Metrics - Adjusted Gross Profit for the three months ended March 31, 2025 was $350.1 million, up from $304.6 million for the same period in 2024, reflecting a 15% increase [92]. - Adjusted EBITDA for the three months ended March 31, 2025 was $197.1 million, compared to $167.9 million for the same period in 2024, representing a 17% increase [93]. - Operating income for the three months ended March 31, 2025 was $127.0 million, representing an increase of $20.7 million, or 19.5%, compared to $106.3 million for the same period in 2024 [109]. - Net income for the three months ended March 31, 2025 was $91.5 million, an increase of $6.2 million, or 7.3%, from $85.3 million for the same period in 2024 [109]. Expenses and Investments - The company plans to continue investing in research and development to broaden its product offerings, with total research and development expenses increasing from $63.0 million in Q1 2024 to $71.8 million in Q1 2025 [105]. - Sales and marketing expenses are expected to increase as the company grows its sales organization and expands marketing activities [102]. - Total operating expenses for the three months ended March 31, 2025 increased by $18.7 million, or 10.4%, to $197.7 million from $179.0 million for the same period in 2024 [109]. - Cost of revenues for the three months ended March 31, 2025 increased by $13.9 million, or 12%, to $129.9 million from $116.0 million for the same period in 2024 [115]. - Research and development expenses increased by $20.7 million, or 15%, to $154.8 million for the nine months ended March 31, 2025, compared to $134.1 million for the same period in 2024 [127]. - Sales and marketing expenses for the nine months ended March 31, 2025 increased by $26.4 million, or 11%, to $273.3 million from $246.9 million for the same period in 2024 [126]. - General and administrative expenses rose by $17.1 million, or 12%, to $159.2 million for the nine months ended March 31, 2025, from $142.1 million in the prior year [128]. Tax and Interest - The effective tax rate increased to 27.7% for the three months ended March 31, 2025, compared to 22.9% for the same period in 2024 [120]. - The effective tax rate increased to 26.3% for the nine months ended March 31, 2025, compared to 24.3% for the same period in 2024 [130]. - Interest income from funds held for clients contributes to revenue, with the company earning interest on payroll funds prior to remittance [98]. - Interest income on funds held for clients for the three months ended March 31, 2025 decreased by $1.0 million, or 3%, to $33.5 million from $34.4 million for the same period in 2024 [114]. Cash Flow and Capital Management - Net cash provided by operating activities was $331.7 million for the nine months ended March 31, 2025, up from $304.7 million in the prior year [143]. - Net cash used in investing activities increased significantly to $328.5 million for the nine months ended March 31, 2025, compared to $76.4 million in the same period in 2024 [145]. - Capital expenditures were $7.6 million for the nine months ended March 31, 2025, down from $11.7 million in the prior year [149]. - The company had $477.8 million in cash and cash equivalents and $3,429.5 million in funds held for clients as of March 31, 2025 [153]. - The company expects to fund operations and capital expenditures primarily with cash flows from operations and available cash [141]. - The company repurchased 472 thousand shares for approximately $93.6 million at an average cost per share of $198.11 during the nine months ended March 31, 2025 [136]. Market Risks and Economic Factors - A decline in interest rates would decrease interest income earned on cash and cash equivalents and funds held for clients [154]. - An immediate 100-basis point increase in interest rates would decrease the market value of available-for-sale securities by $11.1 million as of March 31, 2025 [155]. - Interest rates applicable to the credit facility are variable, exposing the company to market risk from changes in underlying index rates [156]. - The company has not recorded any credit impairment losses on its portfolio to date [154]. - The company does not believe inflation has had a material effect on its business or financial condition [157]. - A hypothetical change of 100 basis points in interest rates would not have a significant impact on the company's results of operations [156]. - The market value changes of available-for-sale securities are only realized if the underlying securities are sold [155]. - The company may not be able to fully offset higher costs through price increases if significant inflationary pressures arise [157]. - Fluctuations in the value of available-for-sale securities due to interest rate changes are recorded in other comprehensive income [155].

Core Viewpoint - Paylocity (PCTY) reported quarterly earnings of $2.43 per share, exceeding the Zacks Consensus Estimate of $2.09 per share, and showing an increase from $2.21 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was 16.27%, with the company previously expected to post earnings of $1.39 per share but actually reporting $1.52 per share, resulting in a surprise of 9.35% [2] - Paylocity's revenues for the quarter ended March 2025 were $454.55 million, surpassing the Zacks Consensus Estimate by 2.83%, compared to $401.28 million in the same quarter last year [3] - The company has consistently exceeded consensus revenue estimates over the last four quarters [3] Stock Performance - Paylocity shares have declined approximately 3.7% since the beginning of the year, while the S&P 500 has seen a decline of 5.3% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.36 on revenues of $381.46 million, and for the current fiscal year, it is $6.65 on revenues of $1.56 billion [8] - The estimate revisions trend for Paylocity is mixed, and changes in earnings expectations may occur following the recent earnings report [7] Industry Context - The Internet - Software industry, to which Paylocity belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, which may impact stock performance [9] - Another company in the same industry, eGain (EGAN), is expected to report a significant decline in earnings, with a projected EPS of $0.01, down 87.5% year-over-year [10]

Financial Data and Key Metrics Changes - Recurring and other revenue for Q3 was $421.1 million, a 15% increase year-over-year, exceeding guidance by $6.1 million [11][15] - Total revenue grew 13% compared to Q3 of the previous year [8][15] - Adjusted gross profit was 77%, an increase of 110 basis points from the same period last year [15] - Adjusted EBITDA for Q3 was $197.1 million, representing 43.4% of revenue, significantly exceeding guidance [15][21] - Cash and cash equivalents at the end of the quarter were $477.8 million, with $243.8 million outstanding on the credit facility related to the Airbase acquisition [17] Business Line Data and Key Metrics Changes - The company reported strong performance in channel referrals, with over 25% of new business coming from benefit brokers and financial advisers [11][12] - The integration of Airbase is progressing well, enhancing the value proposition for clients [12][58] Market Data and Key Metrics Changes - The company noted stability in client workforce levels, with a slight year-over-year increase [40] - Seasonal hiring trends were observed, consistent with typical cycles [40] Company Strategy and Development Direction - The company is focused on expanding its product suite and enhancing average revenue per client through ongoing investments in R&D [8][10] - The strategy includes leveraging AI to improve client and user experiences, with new features aimed at streamlining recruiting and onboarding processes [9][10] - The company aims to maintain strong partnerships with brokers, emphasizing value and support [12][60] Management's Comments on Operating Environment and Future Outlook - Management observed a slight pause in buyer decision-making due to macroeconomic uncertainties but remains confident in the company's performance [31][32] - The company is committed to driving productivity and efficiency, particularly in the face of potential economic challenges [80][81] Other Important Information - The company has been recognized for its workplace culture, being named one of America's greatest workplaces for women [14] - The share repurchase program continues, with $150 million repurchased this fiscal year [17] Q&A Session Summary Question: Changes in pricing models for future modules - Management indicated that while traditional pricing models will continue, new products may require different pricing strategies to align with client expectations [24][25] Question: Operating expenses being lower than expected - Management attributed the lower operating expenses to timing within the fiscal year rather than one-time items [26][27] Question: Macro perspective and hiring plans - Management noted a stabilization in the macro environment but is cautious about future hiring plans, focusing on productivity [31][33] Question: Customer base size impact on decision-making - Management observed early signs of thoughtful decision-making, particularly in the enterprise space, but noted overall stability in client levels [38][39] Question: Integration of Airbase and its market impact - Management expressed confidence in the Airbase integration, highlighting its standalone product strength and future potential [56][58] Question: Competitive dynamics and revenue outperformance - Management attributed revenue outperformance to strong execution rather than changes in competitive dynamics [100] Question: Indicators of softness in forward-looking metrics - Management acknowledged some qualitative caution from customers but emphasized that it has not materially impacted results or guidance [102][106]

Financial Data and Key Metrics Changes - Recurring and other revenue for Q3 was $421.1 million, a 15% increase year-over-year, exceeding guidance by $6.1 million [10][13] - Total revenue grew 13% compared to Q3 of the previous year, driven by strong sales execution [6][10] - Adjusted gross profit margin improved to 77%, up 110 basis points from the same quarter last year [13] - Adjusted EBITDA for Q3 was $197.1 million, representing 43.4% of revenue, significantly exceeding guidance [15][19] - Cash and cash equivalents at the end of the quarter totaled $477.8 million, with $243.8 million outstanding on the credit facility related to the Airbase acquisition [16] Business Line Data and Key Metrics Changes - The company reported strong performance in its channel referrals, with over 25% of new business coming from benefit brokers and financial advisers [10] - The integration of Airbase is progressing well, enhancing the value proposition for clients by providing a unified platform for payroll and non-payroll spending [11][56] Market Data and Key Metrics Changes - The company noted a stable client workforce level, with some seasonal hiring expected in the upcoming months [39] - There are indications of a cautious approach from some clients due to macroeconomic uncertainties, but this has not materially impacted business performance [30][99] Company Strategy and Development Direction - The company is focused on expanding its product suite, particularly in the Office of the CFO, and leveraging AI to enhance client experiences [6][9] - Continued investment in research and development is a priority, with a year-over-year increase of 14.6% in R&D spending [14] - The strategy includes a land-and-expand approach, aiming to sell additional products to existing clients while maintaining competitive pricing models [22][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business's ability to drive profitability and revenue growth despite macroeconomic uncertainties [30][46] - The company anticipates continued strong performance in Q4, with increased guidance for both recurring and total revenue [19] - Management acknowledged the need to adapt sales strategies to address client concerns about cost control in uncertain economic conditions [79] Other Important Information - The company has been recognized for its workplace culture, being named one of America's greatest workplaces for women [12] - The share repurchase program remains active, with $150 million repurchased this fiscal year [16] Q&A Session Summary Question: Future pricing models and customer conversations - Management indicated that while HR buyers are accustomed to per employee pricing, new products may require different pricing models to align with CFO expectations [22] Question: Operating expenses and one-time items - Management clarified that operating expenses were consistent with expectations, with no significant one-time items affecting Q3 results [25] Question: Macro environment and hiring plans - Management noted a cautious sentiment in the market but emphasized strong execution and stability in client workforce levels [30][39] Question: Customer base dynamics and decision-making - Management observed some delays in decision-making among clients, particularly in the enterprise space, but noted overall stability in the client base [36][99] Question: Airbase integration and growth outlook - Management expressed confidence in the Airbase product's standalone performance and its potential once fully integrated [56] Question: Broker channel performance - Management highlighted the importance of the broker channel and the sustained partnerships that have contributed to new business growth [58] Question: AI innovations and customer engagement - Management reported increased customer engagement with AI features, enhancing efficiency and user experience [62][66] Question: Long-term margin expansion - Management discussed the potential for continued margin expansion, driven by operational efficiencies and revenue growth [41][72]

Revenue Growth - Recurring revenue grew by 15% year-over-year, reaching $421.1 million in Q3 2025[6] - Total revenue increased by 13% year-over-year, totaling $454.5 million in Q3 2025[7] - For Q4 2025, recurring and other revenue is expected to be between $358.1 million and $363.1 million, representing approximately 11% growth[16] - Total revenue guidance for fiscal year 2025 is projected to be between $1.580 billion and $1.585 billion, indicating approximately 13% growth[16] Income and Profitability - GAAP operating income was $127.0 million, up from $106.3 million in Q3 2024, while non-GAAP operating income rose to $172.7 million from $145.9 million[3] - GAAP net income for Q3 2025 was $91.5 million, or $1.61 per share, compared to $85.3 million, or $1.50 per share, in Q3 2024[4] - Adjusted EBITDA was $197.1 million in Q3 2025, compared to $167.9 million in Q3 2024[8] - Non-GAAP net income for the nine months ended March 31, 2024, was $289,983 thousand, compared to $317,696 thousand in the same period of 2025, showing a growth of 9.6%[26] - The company reported a net income of $85.31 million for the three months ended March 31, 2024, reflecting solid profitability[27] Cash and Debt Management - Cash and cash equivalents stood at $477.8 million as of March 31, 2025[5] - Long-term debt totaled $243.8 million, reflecting borrowings for the acquisition of Airbase[15] - The company had cash, cash equivalents, and funds held for clients totaling $3,577,165 thousand at the end of the period, compared to $3,392,349 thousand at the end of the previous period[24] - Adjusted free cash flow excluding interest income on funds held for clients for the nine months ended March 31, 2025, was $192.62 million, highlighting effective cash management[28] Operating Expenses - Total operating expenses for the three months ended March 31, 2024, were $179,009 thousand, which is a 10.4% increase from $197,665 thousand in the same period of 2025[22] - General and administrative expenses for the three months ended March 31, 2025, totaled $54.50 million, with a focus on operational efficiency[28] - Non-GAAP total research and development expenses for the three months ended March 31, 2025, amounted to $57.56 million, reflecting a commitment to innovation[27] - Non-GAAP sales and marketing expenses for the nine months ended March 31, 2025, were $273.34 million, demonstrating strategic investment in market presence[27] Cash Flow - Cash flows from operating activities for the nine months ended March 31, 2024, totaled $304,739 thousand, compared to $331,657 thousand in the same period of 2025[24] - Free cash flow for the three months ended March 31, 2024, was $248.54 million, indicating robust cash generation capabilities[28] - Interest income on funds held for clients for the nine months ended March 31, 2025, was $92.57 million, contributing to overall financial performance[28] Share Information - The diluted weighted-average number of common shares for the three months ended March 31, 2024, was 57.05 million, indicating stable share count[27]

Core Insights - Paylocity Holding Corporation reported solid financial results for the third quarter of fiscal year 2025, with recurring revenue growth of 15% and total revenue growth of 13% compared to the same period in the previous year [2][8][4]. Financial Performance - Total revenue for the third quarter of fiscal year 2025 was $454.5 million, an increase of 13% year-over-year [8]. - Recurring and other revenue reached $421.1 million, reflecting a 15% increase from the third quarter of fiscal year 2024 [8]. - GAAP operating income was $127.0 million, up from $106.3 million in the same quarter of the previous year [3]. - Non-GAAP operating income increased to $172.7 million from $145.9 million year-over-year [3][4]. - GAAP net income for the third quarter was $91.5 million, or $1.61 per share, compared to $85.3 million, or $1.50 per share, in the prior year [4]. Cash Flow and Balance Sheet - Cash and cash equivalents totaled $477.8 million as of March 31, 2025 [9]. - Long-term debt stood at $243.8 million, with approximately $81.3 million repaid during the third quarter [9]. - Cash flow from operations for the first nine months of fiscal year 2025 was $331.7 million, compared to $304.7 million for the same period in fiscal year 2024 [9]. Business Outlook - For the fourth quarter of fiscal year 2025, recurring and other revenue is expected to be in the range of $358.1 million to $363.1 million, representing approximately 11% growth over the same quarter in fiscal year 2024 [17]. - Total revenue guidance for the fourth quarter is projected to be between $385.5 million and $390.5 million, indicating approximately 9% growth year-over-year [17]. - For the full fiscal year 2025, recurring and other revenue is anticipated to be between $1.460 billion and $1.465 billion, reflecting approximately 14% growth compared to fiscal year 2024 [17].

Core Viewpoint - Paylocity Holding Corporation is set to announce its third quarter fiscal 2025 results on May 1, 2025, at 4:30 pm Central Time, indicating ongoing transparency and engagement with investors [1]. Company Overview - Paylocity is a prominent provider of cloud-based HR, payroll, and spend management software solutions, headquartered in Schaumburg, IL [3]. - The company was founded in 1997 and has been publicly traded since 2014, showcasing its growth and stability in the market [3]. - Paylocity is recognized for its user-friendly product suite that addresses contemporary business challenges while promoting future growth [3]. - The company is noted for its unique culture and has consistently been recognized as one of the best places to work, emphasizing its commitment to creating great workplaces [3]. Investor Relations - A live webcast of the upcoming conference call will be available on the company's "Investor Relations" page [2]. - Access to the call by phone will be facilitated through a provided link, ensuring ease of participation for investors [2]. - A replay of the call will be archived via webcast, allowing for future access to the information shared [2].