Paychex 2014 Annual Report Download - page 6

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We are a technology-enabled service business that
provides our clients with market-leading SaaS solutions
and mobility offerings. To support the part of our growth
strategy focused on technology, we have increased our
financial investment in research and development by
more than 80 percent over the last six
years. In the past
year and a half alone, we
delivered more product and
functionality to our clients
than at any other time in our
43-year history.
We provided several new key product features and
enhancements for our clients during fiscal 2014,
including a new online user interface, the ability to
update employee information across the system from
one pop-up screen, and our industry-leading Paychex
Report Center, which allows our clients easy access to
their information and the ability to customize their reports.
We are leveraging the latest technologies, our online
HR administration, and time and attendance products,
and integrating them with our Paychex next-generation
offering.
In addition to our online capabilities, we
continue to make considerable investments
in our mobile applications for our clients and
their employees. Among the newest features
and functions in our mobile smartphone app is
the ability for clients to start, edit, and submit
payroll. We believe this easy-to-use app is the best in
the marketplace. We see mobility as a significant growth
driver. In the last year, the number of monthly and daily
active users (that’s unique users in any given month or
single day) climbed more than 200 percent. Paychex is
well positioned to take advantage of this opportunity.
ACQUISITIONS AND
PARTNERSHIPS
We are also taking advantage of opportunities to grow
through acquisition. Technology played a key role in our
acquisition strategy during the past year as we moved
into new markets. As the fiscal year closed, we acquired
a leading cloud-based time and attendance company,
accelerating our ability to deliver the latest SaaS-based
time and attendance functionality to the markets we
serve. By combining the development expertise of
nettime solutions, LLC with the service excellence of
Paychex, we will drive faster growth in this part of our
business.
We also entered a strategic partnership with a leading
cloud-accounting provider. The equity investment in
Kashoo, a Canada-based provider of cloud-accounting
software, set the stage for us to
introduce a new product line.
With Kashoo, we created and
delivered Paychex Accounting
Online, a SaaS solution that gives small-
business owners
an easy way to manage financial records. It also gives
Paychex an opportunity to partner with new businesses
as they grow, and to combine this functionality with our
payroll and HR solutions.
We grew geographically, too, during
the last year through acquisitions and
partnerships. We doubled our presence
in Germany by acquiring Lohndata, a
leading payroll provider in Berlin.
We expanded into Brazil during fiscal 2014 through a joint
venture and are now offering payroll to small businesses
in São Paulo. We partnered with Semco Partners, a