Paycor Investor Presentation Deck

Non-GAAP Financial Measures Adjusted Gross Profit and Adjusted Gross Profit Margin: We define Adjusted Gross Profit as gross profit before amortization of intangible assets, stock-based compensation expense, and other certain corporate expenses, in each case that are included in costs of recurring revenues. We define Adjusted Gross Profit Margin as Adjusted Gross Profit divided by total revenues. Adjusted Gross Profit Excluding D&A and Adjusted Gross Profit Margin Excluding D&A: We define Adjusted Gross Profit Excluding D&A as gross profit before amortization of intangible assets, stock-based compensation expense, other certain corporate expenses and depreciation and amortization, in each case that are included in costs of revenues. We define Adjusted Gross Profit Margin Excluding D&A as Adjusted Gross Profit Excluding D&A divided by total revenues. Adjusted Operating Income and Adjusted Operating Income Margin: We define Adjusted Operating Income as loss from operations before amortization of acquired intangible assets and naming rights, stock-based compensation expense, exit cost due to exiting leases of certain facilities, and other certain corporate expenses. We define Adjusted Operating Income Margin as Adjusted Operating Income divided by total revenues. Adjusted Operating Expenses: We define Adjusted Sales and Marketing expense as sales and marketing expenses before amortization of naming rights, stock-based compensation expense, and other certain corporate expenses. We define Adjusted General and Administrative expense as general and administrative expenses before amortization of acquired intangible assets, stock-based compensation expense, exit cost due to exiting leases of certain facilities and other certain corporate expenses. We define Adjusted Research and Development expense as research and development expenses before stock-based compensation expense and other certain corporate expenses. Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin: We define Adjusted Free Cash Flow as cash provided (used) by operating activities less the purchase of property and equipment and internally developed software costs, excluding other certain corporate expenses, which are included in cash provided (used) by operating activities. We define Adjusted Free Cash Flow Margin as Adjusted Free Cash Flow divided by total revenues. Note: Other certain corporate expenses presented include one-time costs related to acquisitions, including the Apax acquisition, restructuring costs, professional, consulting and other costs, secondary offering costs, transition of the new executive leadership team, closure of a standalone facility, costs associated with becoming a public company, implementation of a new enterprise-resource planning system, and implementing certain expense saving initiatives as a result of the COVID-19 pandemic. 18

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