What are the factors driving companies to switch from legacy payroll to modern alternatives like Panther?

That has really brought to light this—not just standard payroll industry—but this special industry that Panther is a part of. It's called the "employer of record," which means that instead of companies having to set up their own foreign subsidiaries and local bank accounts, learn the local employment law and figure out local accounting, legal, HR and payroll, they get to use our infrastructure as a service.

That industry has been around since the 80's, and many of the incumbents have been some of the fastest growing companies out there. Velocity Global was the fourth fastest growing company in the States in 2016, and Globalization Partners hit a billion dollars in ARR in 2021 while growing 50% year-over-year. There's a number of massive players. The problem, though, is that these legacy companies are professional service companies. They operate these workflows out of Excel sheets sent back and forth over email, and they use a whole kind of house of cards of partnerships to facilitate their service. They end up being incredibly inefficient, expensive—everything that could go wrong. Most customers find themselves wanting to graduate as soon as possible and build their own infrastructure. That's the history of this market.