自動資料處理 (ADP) 2016 Q3 法說會逐字稿

Good morning. My name is Cat, and I will be your conference operator. At this time I would like to welcome everyone to ADP's third-quarter FY16 earnings call. I would like to inform you that this conference is being recorded.

早安.我叫凱特，我將擔任你們的會議接線生。此時此刻，我謹代表ADP公司歡迎各位參加2016財年第三季財報電話會議。我想告知各位，本次會議正在錄影。

(Operator Instructions)

（操作說明）

I will now turn the conference over to Ms. Sara Grilliot, Vice President, Investor Relations. Please go ahead.

現在我將把會議交給投資者關係副總裁薩拉·格里利奧特女士。請繼續。

Thank you. Good morning, everyone. This is Sara Grilliot, ADP's Vice President, Investor Relations and I'm here today with Carlos Rodriguez, ADP's President and Chief Executive Officer; and Jan Siegmund, ADP's Chief Financial Officer. Thank you for joining us for our third-quarter FY16 earnings call and webcast.

謝謝。各位早安。我是 ADP 投資者關係副總裁 Sara Grilliot，今天與 ADP 總裁兼執行長 Carlos Rodriguez 和 ADP 財務長 Jan Siegmund 一起出席。感謝您參加我們2016財年第三季財報電話會議和網路直播。

During our call today we will reference certain non-GAAP financial measures, which we believe to be useful to investors. A reconciliation of these non-GAAP financial measures to their comparable GAAP measures is included in our earnings release and in the supplemental slides on our Investor Relations website.

在今天的電話會議中，我們將提及一些非GAAP財務指標，我們認為這些指標對投資人是有用的。這些非GAAP財務指標與其對應的GAAP指標的調節表已包含在我們的獲利報告中以及我們投資者關係網站上的補充幻燈片中。

Before Carlos begins with a discussion of the quarter's results, I'd like to remind everyone that today's call will contain forward-looking statements that refer to future events, and as such involve some risk. We encourage you to review our filings with the SEC for additional information on risk factors that could cause actual results to differ materially from our current expectations.

在卡洛斯開始討論本季業績之前，我想提醒大家，今天的電話會議將包含有關未來事件的前瞻性陳述，因此存在一定的風險。我們建議您查閱我們向美國證券交易委員會提交的文件，以獲取有關可能導致實際結果與我們目前預期存在重大差異的風險因素的更多資​​訊。

So now let me turn the call over to Carlos.

現在我把電話交給卡洛斯。

Thank you Sarah, and good morning everyone. Thanks for joining our call and for your continued interest in ADP. This morning we reported results for our third quarter of FY16, which included revenue growth of 7%, or 9% excluding the impacts of foreign currency translation. In addition to the solid revenue growth, we continue to see strong demand for our solutions which is evidenced by our new business bookings growth of 13%.

謝謝莎拉，大家早安。感謝您參加我們的電話會議，也感謝您一直以來對ADP的關注。今天早上我們公佈了 2016 財年第三季的業績，其中包括 7% 的營收成長，如果排除外幣折算的影響，則成長 9%。除了穩健的營收成長外，我們還看到市場對我們的解決方案需求強勁，新業務預訂量成長了 13%，這就是最好的證明。

While sales of additional Human Capital Management modules that assist with the Affordable Care Act, or ACA, compliance continue to boost our performance, we are especially pleased to see balanced growth contribution across our HCM portfolio. From further penetration of new applications into our base to growth in the number of clients choosing our higher touch HR outsourcing models, we are seeing continued traction for our technology solutions and our robust service offerings.

雖然銷售有助於遵守《平價醫療法案》(ACA) 的人力資本管理模組的額外銷售額持續提升了我們的業績，但我們尤其高興地看到，我們的人力資本管理產品組合實現了均衡成長。從新應用進一步滲透到我們的客戶群，到選擇我們更注重人際互動的HR外包模式的客戶數量不斷增長，我們看到我們的技術解決方案和強大的服務產品持續獲得市場認可。

During the quarter ADP continued to focus on implementation of solutions that support ACA reporting requirements in the US. At the end of March employers with 50 or more employees were required to send form 1095C to each of their employees describing the health insurance available to them. This is the most significant employee tax filing form introduced by the US government since the W-2 more than 70 years ago and is significantly more complex for the employer to deliver. More than 25,000 clients ranging in size from 50 to 50,000 employees trusted ADP to assist them with ACA.

本季度，ADP 繼續專注於實施支持美國 ACA 報告要求的解決方案。3 月底，擁有 50 名或以上員工的雇主必須向每位員工發送 1095C 表格，說明他們可以享受的健康保險。這是美國政府自 70 多年前的 W-2 表格以來推出的最重要的僱員納稅申報表，對於雇主來說，提交該表格也要複雜得多。超過 25,000 家規模從 50 名員工到 50,000 名員工不等的客戶信賴 ADP 來協助他們應對 ACA。

As of March 31, ADP delivered nearly 10 million form 1095Cs to these client employees. This endeavor was no small task. To put in it perspective, ADP processed nearly 60 million W-2 forms for the 2015 tax year, a form we have been producing for decades.

截至 3 月 31 日，ADP 已向這些客戶員工發放了近 1,000 萬份 1095C 表格。這項工作絕非易事。為了讓大家更直觀地了解這個數字，ADP 在 2015 納稅年度處理了近 6000 萬份 W-2 表格，而我們已經製作這種表格幾十年了。

The W-2 requires one system of record, the payroll system, and is therefore significantly easier to produce than the 1095C which can require data from multiple sources. So as you may imagine, producing 10 million form 1095Cs in the first reporting year of these new regulations was demanding for us and required a strong partnership with our clients. This is another example of the breadth of our capabilities in the complex world of workforce compliance and I am very proud of the work our teams have done and will continue to do to help these clients navigate the uncharted waters of ACA reporting.

W-2 表格只需要一個記錄系統（即薪資系統），因此比 1095C 表格（可能需要來自多個來源的資料）更容易產生。因此，您可以想像，在這些新規實施的第一個報告年度，製作 1000 萬份 1095C 表格對我們來說是一項艱鉅的任務，需要與客戶建立牢固的合作關係。這再次體現了我們在複雜的勞動力合規領域的能力廣度，我為我們的團隊所做的工作感到非常自豪，並將繼續努力幫助這些客戶應對 ACA 報告方面的未知挑戰。

ADP's global capabilities also continue to be a differentiator for us. ADP first begin offering global payroll services more than a decade ago and we have continuously expanded our offering across Europe, the Middle East, Africa, Asia Pacific, and the Americas. Last month we announced the expansion of our capabilities to seven additional locations including Angola, Tanzania and Zambia.

ADP的全球實力也一直是我們的競爭優勢。ADP 十多年前開始提供全球薪資服務，此後我們不斷擴大服務範圍，涵蓋歐洲、中東、非洲、亞太地區和美洲。上個月，我們宣布將業務拓展至包括安哥拉、坦尚尼亞和尚比亞在內的七個新地點。

Now in 111 countries around the globe, ADP is bringing our global clients the benefits of integrated payroll solutions from a provider they trust. This ability to support the payroll compliance needs of global firms managing businesses in locales with constant changes in the legal and regulatory landscape is incredibly powerful and unrivaled in our industry.

如今，ADP 的業務遍及全球 111 個國家，為全球客戶帶來值得信賴的整合薪資解決方案帶來的許多好處。我們有能力支持在全球法律和監管環境不斷變化的地區開展業務的跨國公司滿足其薪資合規需求，這種能力非常強大，在業內無與倫比。

Now I'd like to give you an update on client retention. In the third quarter ADP experienced a decline in retention of 30 basis points. We do believe the sequential improvement is a result of actions we've taken to strengthen our service capabilities. The talented professionals we've added to our service teams are now supporting our clients and although we have an easier year-over-year comparison, we expect the client experience to continue to improve as these associates gain more experience.

現在我想向大家報告一下客戶留存狀況。第三季度，ADP的顧客留存率下降了30個基點。我們相信，這種循序漸進的改進是我們為加強服務能力所採取的措施的結果。我們為服務團隊增添了才華橫溢的專業人員，他們現在正在為我們的客戶提供支援。雖然我們更容易進行同比比較，但我們預計隨著這些員工經驗的積累，客戶體驗將繼續改善。

Aside from our clients' interactions with ADP through service and implementation, a key component of the client experience is our technology. We believe that our strategic platforms deliver best-in-class HCM capabilities in each of the markets they serve. And clients on these platforms generally have higher retention rates than those on our mature technology, so we are continuing to focus on upgrading clients to our modern cloud solutions.

除了客戶透過服務和實施與 ADP 的互動之外，客戶體驗的關鍵組成部分是我們的技術。我們相信，我們的策略平台能夠在其服務的每個市場中提供一流的人力資本管理能力。這些平台上的客戶通常比我們成熟技術上的客戶擁有更高的留存率，因此我們將繼續專注於將客戶升級到我們現代化的雲端解決方案。

As we've previously discussed, we intentionally slowed the pace of migrations in recent months so we could best assist our clients with ACA compliance. With additional talent in place and the effort of ACA reporting beginning to slow, we intend to return to a migration pace that will enable us to complete our mid-market upgrades to the latest version of Workforce Now by the end of FY17, which is in line with our previous expectations. Upgrading clients for mature technology is an important element of our strategy and the right thing for our clients.

正如我們之前討論過的，近幾個月來，我們有意放慢了遷移速度，以便更好地幫助我們的客戶遵守《平價醫療法案》(ACA)。隨著更多人才的到位以及 ACA 報告工作開始放緩，我們打算恢復遷移速度，以便在 2017 財年末之前完成中端市場 Workforce Now 最新版本的升級，這與我們先前的預期一致。為客戶升級到成熟技術是我們策略的重要組成部分，也是對客戶有利的正確做法。

Positive external recognition further bolsters our confidence in our product and service offering. Earlier this quarter we announced that Everest Group has once again named as a leader and star performer in its annual Everest Group Peak Matrix for multiprocess HR outsourcing providers. The report cites the number of new deals, expanded global service delivery, success of our mobile solutions and the introduction of our analytics and big data solution called ADP Data Cloud as evidence of ADP's continued commitment to providing a enriched scope of solutions to our global clients.

正向的外部認可進一步增強了我們對自身產品和服務的信心。本季度早些時候，我們宣布 Everest Group 再次被評為 Everest Group 年度多流程人力資源外包服務提供商巔峰矩陣的領導者和明星企業。該報告列舉了新交易的數量、擴大的全球服務交付、行動解決方案的成功以及名為 ADP 數據雲的分析和大數據解決方案的推出，以此證明 ADP 將繼續致力於為全球客戶提供更豐富的解決方案。

It's flattering when influencers recognize our strategic progress, but it's even more rewarding when clients do. I recently had the opportunity to spend time with many clients at our annual ADP Meeting Of The Minds Conference which we just held in Washington, DC. Each year we use this opportunity to update our clients on our developments and share where we are headed while listening and learning more about their challenges.

有影響力的人認可我們的策略進展固然令人受寵若驚，但客戶的認可則更令人欣慰。我最近有機會在華盛頓特區舉行的年度 ADP 思想碰撞大會上與許多客戶共度時光。每年我們都會利用這個機會向客戶報告我們的最新進展，分享我們的發展方向，同時傾聽和了解他們面臨的挑戰。

What's clear is that these are challenging times for payroll and HCM professionals. ACA, globalization, regulatory complexity, the fight for top talent and changing workforce dynamics are all having a profound impact on how HR is practiced.

顯而易見，對於薪資和人力資本管理專業人士來說，這是一個充滿挑戰的時期。《平價醫療法案》(ACA)、全球化、監管複雜性、頂尖人才爭奪戰以及不斷變化的勞動力市場動態，都對人力資源的實踐方式產生了深遠的影響。

We've built our business to help clients through these challenges and many others. We are unique in our ability to deliver capabilities across the HCM spectrum from recruitment through retirement for businesses of all sizes around the entire globe. This was on display at Meeting Of The Minds, and the client response to our progress was gratifying.

我們建立這家公司的宗旨就是幫助客戶應對這些挑戰以及其他許多挑戰。我們擁有獨特的能力，能夠為全球各種規模的企業提供從招募到退休的全方位人力資本管理服務。這在「思想碰撞大會」上進行了展示，客戶對我們的進展給予了令人滿意的回饋。

So with that, I'll turn the call over to Jan for a further review of our third-quarter results.

那麼，接下來我將把電話交給 Jan，讓他進一步回顧我們第三季的表現。

Thank you Carlos, and good morning everyone. For the third quarter ADP revenues grew 7%, or 9% on a constant dollar basis. This solid revenue growth was driven by net new additions to our recurring revenue stream, including the impact of ACA-related revenue which began contributing to our growth in the third quarter.

謝謝卡洛斯，大家早安。第三季度，ADP 的營收成長了 7%，以固定匯率計算成長了 9%。這項穩健的收入成長得益於經常性收入流的淨新增，其中包括與《平價醫療法案》(ACA) 相關的收入，該收入從第三季開始為我們的成長做出貢獻。

Earnings before interest and taxes, or EBIT, grew 9%, or 10% on a constant dollar basis. This growth, while stronger than the first half of the fiscal year, continues to reflect additional costs related to selling expenses and incremental operational resources in support of new business sold. EBIT margin increased about 40 basis points compared to 24.4% in last year's third quarter.

息稅前利潤（EBIT）成長了9%，以固定匯率計算成長了10%。雖然這一成長比上半年的財政年度成長更為強勁，但仍反映了與銷售費用相關的額外成本以及為支持新業務而增加的營運資源。與去年第三季的 24.4% 相比，息稅前利潤率提高了約 40 個基點。

Diluted earnings per share grew 14% to $1.17 and reflected a lower effective tax rate and fewer shares outstanding compared with a year ago. In addition to delivering this solid operating performance, we have paid more than $700 million in dividends and returned more than $1 billion through share repurchases in the first three quarters of this fiscal year.

稀釋後每股收益成長 14% 至 1.17 美元，反映出與去年同期相比，實際稅率降低且流通股數量減少。除了取得如此穩健的經營業績外，在本財年的前三個季度，我們還支付了超過 7 億美元的股息，並透過股票回購返還了超過 10 億美元。

In our up Employer Services segment revenues grew 5% for the quarter, or 7% on a constant dollar basis. As Carlos discussed, client retention decreased 30 basis points in the third quarter and we remain focused on actions that will improve this metric. Our same-store pays per control in the US grew 2.5% and average client fund balances grew 2% compared to a year ago, or 3% on a constant dollar basis.

在我們的雇主服務部門，本季營收成長了 5%，以固定美元計算成長了 7%。正如卡洛斯所討論的，第三季客戶留存率下降了 30 個基點，我們將繼續專注於採取措施來改善這項指標。與去年同期相比，我們在美國同店的每筆交易收入增長了 2.5%，平均客戶資金餘額增長了 2%，以固定美元計算增長了 3%。

On a year-to-date basis we have seen a relative slowing in our pays per control metric compared with the 3% growth last year, which we believe is consistent with the US economy reaching high employment levels. As a result of improving employment, we continue to see declines in state unemployment insurance collections, which have had a drag on client fund balances but at a lesser rate than last year. This in combination with the weaker bonus season and the impact from client losses experienced in the first half has put added pressure on the growth of our client fund balances for the quarter.

今年迄今為止，與去年 3% 的成長率相比，我們的每項控制指標的薪資成長相對放緩，我們認為這與美國經濟達到高就業水準是一致的。由於就業狀況改善，我們看到各州失業保險金的徵收額持續下降，這拖累了客戶基金餘額，但下降速度比去年慢。再加上獎金發放季疲軟以及上半年客戶損失的影響，為本季客戶資金餘額的成長帶來了額外的壓力。

Our business outside the US continues to perform well, driven by the strength of our multinational solutions which serve businesses of all size, from small to mid-market clients to very large global corporations. Employer Services segment margin declined about 40 basis points for the third quarter, this decline resulted from the impact of planned investments made in operational resources to implement the strong volume of new business sold over the last few quarters.

我們在美國以外的業務繼續表現良好，這得益於我們強大的跨國解決方案，這些解決方案服務於各種規模的企業，從小型到中型市場客戶到非常大的全球性公司。第三季雇主服務部門利潤率下降了約 40 個基點，下降是由於計劃對營運資源進行投資，以落實過去幾季強勁的新業務銷售量所致。

ADP's PEO posted another quarter of strong performance, with third-quarter revenue growth of 16% and growth in the average worksite up 14%. PEO also delivered solid margin expansion of approximately 50 basis points in the third quarter, driven primarily by operating and selling efficiencies as we continue to see good execution and increased productivity.

ADP 的 PEO 業務又迎來了一個強勁的季度業績，第三季營收成長 16%，平均工作場所成長 14%。PEO 第三季也實現了約 50 個基點的穩健利潤成長，這主要得益於營運和銷售效率的提高，因為我們持續看到良好的執行力和不斷提高的生產效率。

I'm pleased with the progress we have made, and will now give you an update on our expectations for FY16. For the fiscal year ADP still expects revenue growth of about 7%, or 9% on a constant dollar basis. As a reminder, this forecast includes almost 1 percentage point of expected pressure from the sale of the AdvancedMD business which occurred towards the end of the first fiscal quarter.

我對我們所取得的進展感到滿意，現在將向大家報告我們對 2016 財年的預期。ADP 預計本財年營收成長約 7%，以固定匯率計算約 9%。需要提醒的是，該預測包含了近 1 個百分點的預期壓力，這壓力來自第一財季末出售的 AdvancedMD 業務。

For the Employer Services segment, consistent with our prior forecast, revenue growth is anticipated to be 4% to 5%, or 7% on a constant dollar basis. For the PEO, ADP is now anticipating revenue growth of about 17% compared with our prior forecast range of 16% to 18%.

與先前的預測一致，雇主服務部門的收入成長預計為 4% 至 5%，以固定匯率計算為 7%。對於 PEO 業務，ADP 目前預計收入成長約為 17%，而我們先前的預測範圍為 16% 至 18%。

Our forecast for adjusted EBIT margin expansion of 50 basis points is unchanged. We are now expecting Employer Services margin expansion of about 50 basis points compared with our prior forecasted margin expansion of about 75 basis points. The margin in the PEO is now expected to expand up to 75 basis points compared with our prior forecast of about 50 basis points.

我們對調整後 EBIT 利潤率擴張 50 個基點的預測保持不變。我們現在預計雇主服務業務的利潤率將擴大約 50 個基點，而我們先前預測的利潤率將擴大約 75 個基點。PEO的利潤率預計將擴大至75個基點，而我們先前的預測約為50個基點。

We have narrowed our forecast for average client fund balances and are now expecting 3% growth, or 4% on a constant dollar basis. We are also now are expecting growth in client funds interest revenue to be about flat to last year compared with our prior forecasted increase of up to $5 million. This is a result of the lower interest rate environment from the softening of the global economy.

我們已縮小了客戶平均資金餘額的預測範圍，目前預計成長 3%，以固定美元計算則為 4%。我們現在預計客戶資金利息收入的成長將與去年基本持平，而我們先前預測的成長幅度將達到 500 萬美元。這是全球經濟疲軟導致利率環境走低的結果。

The total impact from the client funds extended investment strategy is still expected to be about flat compared to the $419 million in FY15. The details of this forecast can be found in the supplemental slides on our Investor Relations website.

客戶資金擴展投資策略的總影響預計仍將與 2015 財年的 4.19 億美元持平。此預測的詳細內容可在我們投資者關係網站的補充幻燈片中找到。

Adjusted diluted earnings per share are now expected to grow about 12% from the $2.89 in FY15 compared with our prior forecasted growth range of 11% to 13%. On a constant dollar basis adjusted diluted earnings per share is expected to grow about 13% compared with our prior forecasted growth range of 12% to 14%.

經調整後的稀釋每股盈餘預計將從 2015 財年的 2.89 美元成長約 12%，而我們先前預測的成長範圍為 11% 至 13%。以固定美元計算，調整後的稀釋每股盈餘預計將成長約 13%，而我們先前預測的成長範圍為 12% 至 14%。

And with that, I now will turn it over to the operator to take your questions.

接下來，我將把麥克風交給接線員，由他來回答大家的問題。

Thank you.

謝謝。

(Operator Instructions)

（操作說明）

Our first question comes from the line of Jim Schneider with Goldman Sachs. Your line is open.

我們的第一個問題來自高盛的吉姆‧施耐德。您的線路已開通。

Good morning. Thanks for taking my question. I was wondering if you could give us an update on the improved client retention methods -- rates you saw in the quarter? Can you maybe talk about how much the rate of implementation slowed versus the prior quarter? You talked about the slowing there. And maybe give us an update on in the mid-market, I think you talked about 75,000 total clients and 45,000 on Workforce Now. Maybe an update on that 45,000 number, please?

早安.謝謝您回答我的問題。我想請您介紹一下本季客戶留存率的改進？您能否談談與上一季相比，實施速度放緩了多少？你剛才提到了那裡的經濟放緩問題。或許可以給我們更新中端市場的情況，我想您提到總共有 75,000 個客戶，其中 45,000 個在 Workforce Now 平台上。能否更新一下45000這個數字？

I will let Jan maybe put in a couple of stats also, but the slowdown in implementation was really around migrations, just to be clear. And I think after the first quarter, I think we mentioned that we had begun already to slow down some of our migrations.

我會讓 Jan 也補充一些統計數據，但需要明確的是，實施速度放緩實際上是由於遷移問題造成的。我認為在第一季結束後，我們提到過，我們已經開始放緩一些移民速度。

Now, there continue to be some scheduled migrations that spilled over into the second quarter. So it is really towards the end of the second quarter, our fiscal second quarter, that we began to truly try to focus more on stabilizing our service organization and also our ACA implementations. And hence this third leg that was putting pressure on us, and the third leg of the stool, which is an important part of our strategy but we felt we could, in the short term, slow down or take pressure off of ourselves, is what we did about the slowdown of the migrations. And that is exactly what happened.

目前，仍有一些計畫內的遷移工作延續到了第二季。因此，直到第二季末（即我們的第二財季），我們才真正開始更加專注於穩定我們的服務組織以及我們的《平價醫療法案》(ACA) 的實施。因此，這第三條腿給我們帶來了壓力，而這第三條腿，也就是凳子的第三條腿，是我們策略的重要組成部分，但我們覺得在短期內我們可以放慢速度或減輕自己的壓力，所以我們採取了放慢移民速度的措施。事情就是這樣發生的。

To put it in perspective. In the first quarter of the year our migrations were more than double the same rate of the previous year's first quarter. We still did some migrations here in the third quarter, but I would say it was very, very low rates. And we got the desired impact, which has allowed us to focus on the other things that we had from of a volume standpoint on ACA and also trying to redirect some of those resources to stabilizing our service environment.

換個角度來看。今年第一季度，我們的移民數量是去年同期的兩倍多。第三季我們這裡仍然有一些移民，但我想說的是，移民率非常非常低。我們取得了預期的效果，這使我們能夠專注於其他方面，例如從數量上看 ACA，並嘗試將一些資源重新分配到穩定我們的服務環境。

I think we did exactly what we had planned to do, and I think what we communicated. And I think we got desired result. As I mentioned in first and second quarter, there is no scientific way to know how much of each of those three things was putting pressure individually on our retention and our client service experience. But we basically had one that we had a lot of control over, which is migrations and we decided to slow it.

我認為我們完全按照計劃完成了工作，也達到了預期的溝通效果。我認為我們達到了預期的結果。正如我在第一季和第二季提到的那樣，沒有科學的方法來知道這三件事中的每一件分別對我們的客戶留存率和客戶服務體驗造成了多大的壓力。但我們基本上對其中一項有很大的控制權，那就是遷移，所以我們決定放慢遷移速度。

Maybe I will add on the migration pace, Jim, for you. I think we migrated -- in March we resumed the migrations. And I think it is in the thousands range. So the number of clients on the latest version for Workforce Now has not changed materially, really, compared to our last update. But we are still expecting to really complete the overall migrations in our mid-market onto Workforce Now to be completed by the end of FY17, as we had always planned for.

吉姆，或許我可以幫你補充遷移速度方面的資訊。我認為我們已經遷移了——我們在三月恢復了遷移。我認為數量應該在幾千美元左右。因此，與上次更新相比，Workforce Now 最新版本的客戶數量實際上並沒有實質變化。但我們仍然期望能夠真正完成中端市場向 Workforce Now 的整體遷移，正如我們一直在計劃的那樣，在 2017 財年末完成。

That's very helpful color, thanks.

這個顏色很有幫助，謝謝。

Maybe just as a quick follow-up. Could you give us an update on the migrations you are seeing in the up-market? Any rough metric in terms of percentage of clients completed on that side?

或許只是作為一個簡單的後續。能否向我們介紹一下您在高端市場觀察到的用戶遷移情況？能否提供一些粗略的指標，例如該方完成的客戶百分比？

I think in the up-market it is probably more discussion around number of clients rather than percentages, because I think it's just the nature of the business. I think there we are, I think, moving ahead with plans in terms of a similar strategy that we've had in the down-market and in the mid-market, which is to get our clients onto our strategic platforms over time.

我認為在高端市場，人們更多地討論的是客戶數量而不是百分比，因為我認為這只是行業的性質使然。我認為，我們正在推動與低端市場和中端市場類似的策略計劃，即逐步將我們的客戶納入我們的策略平台。

But I think as we've said over the last couple of quarters, I think it's probably not helpful, given that these are very identifiable clients, everybody knows who their names are, and most of our competitors know what platforms they are on. We don't believe that it is going to be fruitful and useful to us to get into a lot of detail around our schedules and which platforms and which clients we're migrating.

但我認為，正如我們在過去幾個季度中所說的那樣，考慮到這些都是非常容易識別的客戶，每個人都知道他們的名字，而且我們的大多數競爭對手都知道他們使用的平台，因此這樣做可能沒什麼幫助。我們認為，詳細討論我們的日程安排、我們正在遷移的平台和客戶對我們來說不會有任何好處。

You should take from the messages that Jan and I just delivered on the previous question that you asked that we still believe this is the right thing to do. And the slowdown in the mid-market was really just related to all the other moving parts that we had, not because we believe it is the wrong thing to do. So we are still on the same strategy. It's, I think, consistent with prior quarters. We believe that the migrations and the upgrades in the up-market are going to take longer than they have taken in the down-market and in the mid-market, but we are comfortable with that, because that's the different nature of the business in the up-market.

從我和 Jan 剛才就你提出的上一個問題所作出的回應中，你應該明白我們仍然認為這樣做是正確的。中端市場的放緩實際上只是與我們面臨的所有其他變動因素有關，而不是因為我們認為這樣做是錯誤的。所以我們仍然堅持同樣的策略。我認為這與前幾季的情況一致。我們認為，高端市場的遷移和升級所需時間會比低端市場和中端市場更長，但我們對此並不介意，因為高端市場的業務性質不同。

Thank you very much.

非常感謝。

Thank you. Our next question comes from line of Sara Gubins with BofA Merrill Lynch.

謝謝。我們的下一個問題來自美國銀行美林證券的 Sara Gubins。

Thanks. Good morning. It's great to see the retention trend improving. Do you have any concern that it could get worse again as you ramp back up the migrations that have been slowed?

謝謝。早安.很高興看到用戶留存率呈上升趨勢。您是否擔心，隨著您逐步恢復之前放緩的遷移工作，情況可能會再次惡化？

Obviously one of the, as you know, new business bookings and retention are the two numbers that are not, quote unquote, recurring revenues. Our business model is actually very stable, very predictable. Those two numbers are also relatively stable and relatively predictable. But they have more variability than the rest of our numbers. We have never try to forecast quarter to quarter or future quarters on either new business bookings or client retention for that reason. That's clearly a possibility, but it is not our plan.

顯然，如您所知，新業務預訂量和客戶留存率這兩個數字都不是所謂的「經常性收入」。我們的商業模式其實非常穩定，非常可預測。這兩個數字也相對穩定且相對可預測。但它們的波動性比其他數據更大。基於這個原因，我們從未嘗試對季度之間或未來幾季的新業務預訂量或客戶留存率進行預測。這當然是一種可能性，但這不是我們的計劃。

You can tell by our desire, or actually our actions, to reignite our migrations that we don't believe that will be the case and we believe medium and longer term it is the right thing to do, which I think would lead you to the conclusion that the other factors like the high volumes of ACA and some of the service challenges we have around, which were related to ACA implementations and high volumes, the issues around inadequate service capabilities, I think were also factors that contributed to our retention issues. And we don't think it was only because of the client migrations. Otherwise we wouldn't be -- we would probably be following a different path.

從我們重啟遷移的願望，或者更確切地說，從我們的行動中可以看出，我們並不認為情況會如此，我們相信從中長期來看，這是正確的做法。我認為這會讓你得出結論：其他因素，例如 ACA 的大量實施以及我們面臨的一些服務挑戰（這些挑戰與 ACA 的實施和大量實施有關），以及服務能力不足的問題，我認為也是導致我們用戶留存問題的因素。我們認為這不僅僅是因為客戶端遷移。否則我們就不會走到今天——我們很可能會走上另一條道路。

I think we are confident it is still the right thing to do. As you know, we had been doing migrations for several years and had not had the same kinds of issues that we experienced over the past couple of quarters with regards to retention. I think again, no scientific evidence, but I think we have a lot of ways of triangulating to the point where we think it is fundamentally the right thing to do.

我認為我們仍然有信心這樣做是正確的。如您所知，我們進行資料遷移已有數年，但從未遇到像過去幾季在資料保留方面遇到的這類問題。我認為，雖然沒有科學證據，但我們有很多方法可以進行三角驗證，最終得出我們認為從根本上來說這是正確做法的結論。

We ended up having more attach -- higher attach rates for our HCM modules. Our retention rates right now are higher on our strategic platforms than our legacy platforms. There is a lot of reasons that point to the need and I think the advantages of continuing with the migration strategy.

我們最終獲得了更高的附加率——HCM模組的附加率更高。目前，我們策略平台的用戶留存率高於傳統平台。有許多理由顯示有必要繼續推行遷移策略，而且我認為這樣做也有許多優勢。

Got it, thanks.

明白了，謝謝。

Turning to margins. The ES guidance on margins suggests a pretty significant ramp year over year in the fourth quarter. Is that just the leverage on hires that you have already made? And are you now fully staffed up to higher migration and new sales or should we expect to see that come up more?

轉向邊際效應。ES對利潤率的預測表明，第四季利潤率將比去年同期大幅成長。那隻是你對已招募人員的利用優勢嗎？你們現在是否已做好充分準備應對更高的遷移量和新銷售需求？還是我們應該預期未來會有更多這類需求出現？

I think you are pointing out to one element, as now the revenue stream of the incremental revenues gets really a full quarter. So we see that, see that implicit revenue acceleration of fourth quarter when you dissect our full-year guidance that we confirmed. That will help.

我認為你指出了一個關鍵因素，因為現在新增收入的收入流確實能持續一個完整的季度。因此，當我們分析我們確認的全年業績指引時，可以看到第四季度隱含的收入加速成長。那會有幫助。

Secondly, the most important factor is in the fourth quarter we are anticipating -- we have a high investment of selling expense in the last year's fourth quarter and easier grow over. So with the confirmation of our new business bookings growth of 12% you can also see that we are not anticipating mathematically a [blow hard] fourth quarter because of that difficult grow over. And that will help on the margins.

其次，最重要的因素是我們預期的第四季——我們在去年第四季投入了大量的銷售費用，而且更容易成長。因此，隨著我們新業務預訂量成長 12% 的確認，您也可以看到，由於成長困難，我們預計第四季不會大幅成長。這會在一定程度上有所幫助。

Great, thank you.

太好了，謝謝。

Thank you. Our next question comes from the line of David Grossman with Stifel. Your line is open.

謝謝。我們的下一個問題來自 Stifel 的 David Grossman 的產品線。您的線路已開通。

Thank you. I'm wondering if we could talk just a little bit about the character of the business and how it is evolving? Given that the client base is mixing the bundled solutions, specifically ACA and PEO since they are presumably growing at faster rates, should we be thinking any differently about how those clients feel differently than the traditional payroll business has over time?

謝謝。我想請教一下，我們能否稍微談談這家企業的性質以及它的發展演變？鑑於客戶群正在混合使用捆綁式解決方案，特別是 ACA 和 PEO，因為它們的成長速度可能更快，我們是否應該以不同的方式思考這些客戶與傳統薪資業務隨著時間的推移所感受到的不同之處？

Sorry, those clients scale in terms of -- can you be a little more -- is this (multiple speakers) margin question?

抱歉，這些客戶的規模是指──您能再詳細一點嗎──這是（多位發言者）利潤率問題嗎？

I was thinking that since the -- I'm sorry?

我在想，既然──對不起？

Is this directed towards margin?

這是針對利潤率而言的嗎？

Well, I was thinking more in terms of revenue growth, but you could include margin as well. I was thinking that because they are buying more that is, say for example, [their pace] for a control increase, this business may scale a little bit differently than the traditional payroll business (inaudible).

我當時比較從營收成長的角度來考慮，但你也可以把利潤率考慮進去。我當時在想，因為他們購買的更多，例如，[他們的]控製成長速度，這項業務的規模可能與傳統的工資業務略有不同（聽不清楚）。

I think we've been communicating for several quarters, and I think it is still true, that the products that we have that have the richest bundles, and it's not just PEO, but it is our mid-market, what we call ASO and basically our BPO HR outsourcing solutions, they are all growing faster than our core business and they all have now, I think, very positive dynamics in terms of their margin, not that you asked specifically about margin. But they're also, I think, now at a size, all of them individually and collectively, where we are getting good contribution, I think to our margin, certainly from a dollar standpoint and in many cases from a margin percent standpoint.

我認為我們已經溝通了好幾個季度，而且我認為情況仍然如此，我們擁有最豐富產品組合的產品，不僅僅是 PEO，還包括我們的中端市場產品，我們稱之為 ASO，以及基本上我們的 BPO 人力資源外包解決方案，它們的增長速度都超過了我們的核心業務，而且我認為它們現在在利潤率方面都呈現出非常積極的利潤率，雖然你並沒有利潤率。但我認為，它們現在的規模，無論是單獨來看還是整體來看，都達到了一個合適的水平，能夠為我們的利潤做出良好的貢獻，我認為這從美元的角度來看是肯定的，而且在很多情況下，從利潤率的角度來看也是如此。

I think that is why we like our position in terms of where we are around starting with our richest bundles, where it is really all-inclusive in terms of a full HCM bundle. The PEO's unique in the sense that it also has -- provides co-employment and provides healthcare and workers comp. Some of our other very rich bundles also are very, very comprehensive and growing very robustly and scaling very well. And we have been able to handle those volumes and have gotten good leverage on the margin side.

我認為這就是為什麼我們喜歡我們目前的定位，從我們最豐富的套餐開始，這些套餐真正包含了完整的 HCM 套餐。PEO 的獨特之處在於它還提供共同僱用、醫療保健和工傷賠償。我們其他一些內容非常豐富的套餐也非常全面，成長勢頭強勁，擴展性也非常好。我們能夠處理這些交易量，並在利潤率方面獲得了良好的優勢。

As you come down to more of our traditional products, as we've also communicated there, whether it is in Advantage or in Workforce Now, or even in the down-market, the attach rates continue to be better on new business than the penetration of our products in base. So I think that also bodes very well for us from a revenue growth standpoint and also from a margin leverage standpoint.

正如我們之前所溝通的那樣，當我們轉向更多傳統產品時，無論是 Advantage、Workforce Now，還是低端市場，新業務的附加率仍然高於我們產品在基礎市場的滲透率。所以我認為這對我們來說，無論從營收成長或利潤率提升的角度來看，都是個好兆頭。

I think we are happy directionally with where we are going. And where frankly the market is leading us, which is demand for these solutions is clearly high versus the traditional simple standalone payroll solution. We do sell simple standalone payroll solutions, but I think the market is leading us in the direction of more comprehensive solutions.

我認為我們對目前的發展方向感到滿意。坦白說，市場正在引領我們走向這樣的方向：與傳統的簡單獨立工資解決方案相比，對這些解決方案的需求顯然很高。我們確實銷售簡單的獨立工資解決方案，但我認為市場正在引領我們走向更全面的解決方案。

Okay, thank you for that. Just going back, I think there was a question earlier about the up-market. Recognizing sales cycles are long and is still early, could you talk a little bit more about your experience thus far and help us understand better what the competitive dynamic is there and where you are seeing success versus where there are some challenges as you approach that market?

好的，謝謝。回顧一下，我記得之前有人問過關於高端市場的問題。考慮到銷售週期很長，而且現在還處於早期階段，您能否再多談談您目前的經驗，幫助我們更好地了解當前的競爭格局，以及您在進入該市場時在哪些方面取得了成功，又在哪些方面遇到了挑戰？

I think the competitive dynamic in the up-market is not terribly different than the competitive dynamic in the mid-market and the down-market, which is that it's competitive and there is a lot of competition. But we are pretty happy with the progress of our Vantage platforms there in terms of new sales. And we mentioned that obviously we're going to be methodical and careful in terms of our upgrade cycle in the up-market, which I think fits naturally with the nature of that business anyway.

我認為高端市場的競爭動態與中階市場和低階市場的競爭動態並沒有太大差別，那就是競爭激烈，競爭非常激烈。但就新銷售額而言，我們對 Vantage 平台在當地的進展相當滿意。我們之前也提到過，在高端市場的升級週期中，我們顯然會採取有條不紊、謹慎的態度，我認為這與該行業的性質本身就非常契合。

As you know, we have been investing heavily in all of our products including the up-market, but that also goes for Workforce Now in the mid-market. And we have made some significant investments over the years in RUN which is our down-market platform. I know it is hard to -- it's a very specific question about the up-market, but it's hard for me to really single it out as having a different approach, or a different strategy from the rest of our Company because I don't think it is. I think we're on the same types of things.

如你所知，我們一直在大力投資所有產品，包括高階產品，但中階市場的 Workforce Now 也是如此。多年來，我們對 RUN（我們的低端市場平台）進行了一些重大投資。我知道這很難——這是一個關於高端市場的非常具體的問題，但我很難真正把它單獨拿出來，說它與我們公司的其他部門採取了不同的方法或策略，因為我認為它並沒有。我認為我們關注的是同一種類型的事情。

Maybe if I add from a -- which will substantiate this with the colors on our new business bookings. We really tried to say we had balanced growth in the quarter and had experienced that actually for the last few quarters. And so the up-market is participating in the sales acceleration that we have seen for this year.

或許我可以添加一些內容——這將與我們新業務預訂的顏色相吻合。我們努力表明本季實現了均衡成長，而且實際上在過去的幾個季度也一直保持著這種成長勢頭。因此，高端市場也參與了我們今年看到的銷售加速成長。

Okay, very good. Thank you.

好的，很好。謝謝。

Thank you. Our next question comes from line of Gary Bisbee with RBC Capital Markets. Please go ahead.

謝謝。下一個問題來自加拿大皇家銀行資本市場的 Gary Bisbee。請繼續。

Good morning. This is actually Jay Hanna on the line for Gary today. I was wondering if you could you shed any light on why we haven't seen more revenue acceleration, just given the strong booking growth over the previous several quarters. And particularly this quarter as retention declined and we have started the new calendar year? Thank you.

早安.今天為加里連線的是傑伊·漢納。我想請教一下，鑑於前幾季預訂量強勁成長，為什麼我們沒有看到營收進一步加速成長？尤其是本季度，由於客戶留存率下降，而且我們已經開始了新的一年？謝謝。

I think as usual we have -- you can probably mathematically, as Jan probably has the math on the tip of his tongue, but I'll you from an overall big picture standpoint, mathematically you can tell that the fourth quarter we have a decent amount of visibility, given the nature of our business as to what is happening quarter to quarter. I think fourth quarter, I think, again when you exclude, which I think is the right way to do the comparison, you exclude the AdvancedMD comparable from the previous year. We don't have a lot of -- I think in fact our current forecast is to not have much, if any, foreign currency effect in the fourth quarter.

我認為和往常一樣，我們——你可能可以從數學角度來解釋，因為 Jan 可能對數學計算瞭如指掌，但我從整體上看，從數學角度來看，考慮到我們業務的性質，我們對第四季度的情況有相當程度的了解。我認為第四季度，我認為，當你排除上一年 AdvancedMD 的可比較數據時（我認為這才是正確的比較方法），你應該排除這些數據。我們沒有太多——事實上，我認為我們目前的預測是，第四季不會受到太多（如果有的話）外匯影響。

I think you normalize for all those things and we are actually pretty happy with what our fourth-quarter revenue growth implies. And then the third quarter, I don't think we're -- it's not fair to say we're disappointed, because we pretty happy. Whenever ADP's revenue growth incrementally moves up half to 1 percentage point, which again you normalize for AdvancedMD and you normalize for currency, that's what happened.

我認為，考慮到所有這些因素，我們對第四季度營收成長所反映的情況相當滿意。至於第三季度，我覺得我們──說我們失望並不公平，因為我們相當滿意。每當 ADP 的收入成長逐步提高 0.5 到 1 個百分點時（再次根據 AdvancedMD 和匯率進行標準化），就會發生這種情況。

That makes us very happy because in recurring revenue model in order to accomplish that, you have to, as you just pointed out, you have to have strong new business starts, not just bookings. And you have to have either stable or improving retention. And that is exactly what we got. There may have been a little bit of calendar noise and a couple of other things in the third quarter that we don't see in the fourth quarter happening. So, we were actually pretty satisfied with kind of where we are, assuming that all of these things hold that we've just communicated.

這讓我們非常高興，因為在經常性收入模式下，為了實現這一點，正如你剛才指出的那樣，你必須有強勁的新業務啟動，而不僅僅是預訂。而且你的客戶留存率必須保持穩定或不斷提高。而這正是我們所得到的。第三季可能存在一些日曆上的干擾因素和其他一些因素，而這些因素在第四季不會再出現。所以，如果剛才我們溝通的內容都屬實，我們對目前的狀況其實相當滿意。

Okay. And if I can get one more in. I'm just wondering, given the strong bookings growth related to the ACA offering, when that begins to slow, should we expect an overhang from that, as that service offering begins to fall off and begins to drop?

好的。如果我還能再進一個的話。我只是想知道，鑑於與ACA產品相關的強勁預訂成長，當這種成長開始放緩時，我們是否應該預期會出現由此帶來的不利影響，因為該服務開始減少並逐漸衰落？

I think that was something that I communicated in last quarter's call, which is again based on our sense of the business and our experience and our knowledge, it is safe to assume that if we've sold, call it approximately half of the addressable market on ACA, we believe there is still a lot of opportunity in our client base. But obviously it is now half the opportunity that we had in the previous year. What we don't know yet is how people will react in terms of demand, because right now everybody is focused on getting the June deadline past them, in terms of the employer portion of the reporting, which is the 1094.

我認為我在上個季度的電話會議上已經表達過這一點，這同樣是基於我們對業務的理解、經驗和知識，可以肯定的是，如果我們已經售出了大約一半的ACA潛在市場份額，我們相信我們的客戶群中仍然有很多機會。但很顯然，我們現在的機會只有去年的一半了。我們還不知道人們在需求方面會作何反應，因為現在每個人都專注於在 6 月的截止日期前完成雇主部分的申報，也就是 1094 表格。

It is really a little early for us to know exactly how much ACA demand we will have or will not have. And we have been very, very transparent and very clear that it has provided a tailwind. However, we have also been very clear that we would be satisfied and happy to communicate our sales results both for the quarter and for the year to date excluding ACA. And that communication would lead you to believe that excluding ACA we'd be in the neighborhood of our long-term guidance around new business bookings.

現在要準確判斷《平價醫療法案》（ACA）的需求還為時過早。我們一直非常、非常透明、非常明確地表示，這給我們帶來了順風。但是，我們也已經非常明確地表示，我們很樂意公佈本季和今年迄今的銷售業績（不包括ACA）。這樣的溝通會讓你相信，如果排除 ACA 的影響，我們的新業務預訂量將接近我們長期的指導目標。

So we believe this has been incremental. We hope we will get more of it next year. But clearly the mathematics are such that it's going to create, I wouldn't call it a hangover or an overhang, but I would call it a very difficult compare that we, as we get further along in the next couple of quarters, will be able to hopefully communicate a little bit more clearly in terms of what that exactly means when we provide guidance for the next fiscal year.

所以我們認為這是一個漸進的過程。我們希望明年能獲得更多。但很顯然，數學上的差異會導致，我不會稱之為後遺症或不利影響，但我會稱之為非常難以比較的情況。隨著接下來幾季的推進，我們希望能夠更清楚地說明，當我們為下一個財政年度提供指導時，這究竟意味著什麼。

Okay. Thank you for the color.

好的。謝謝你提供的色彩。

Thank you. Our next question comes from the line of Rick Eskelsen with Wells Fargo. Your line is open. Please go ahead.

謝謝。我們的下一個問題來自富國銀行的里克·埃斯克爾森。您的線路已開通。請繼續。

Good morning. Thank you for taking my question.

早安.感謝您回答我的問題。

Question, just going back to margins. I was wondering if you could talk a little bit more about the longer-term margin drivers with you altering the outlook for the two segments here on the margin side. Has anything changed longer term and more fundamentally? Like do you see fewer opportunities in the Employer Services and more on the PEO on the margin front specifically?

問個問題，再回到邊距的問題。我想請您再詳細談談影響長期利潤率的因素，以及您對這兩個業務板塊利潤率前景的看法變化。從長遠和更根本的角度來看，情況是否有任何變化？例如，您是否認為雇主服務的機會較少，而專業雇主組織 (PEO) 的機會較多，尤其是在利潤率方面？

Thank you.

謝謝。

No, we don't. I think that again when we have the kind of new business bookings growth that we have because of the way our P&L works around implementation expense and commissions and selling expense, it puts a lot of pressure. So honestly, I would probably say that I'm incredibly proud of the organization's ability to, despite a very big ramp-up of expenses, some of which was related obviously to ACA, both around new business bookings cost as well as implementation expense, I'm actually quite proud of the organization's ability to deliver based on our forecast for the fourth quarter what will be some margin improvement that is still in the neighborhood of our long-term guidance.

不，我們沒有。我認為，由於我們的損益表圍繞著實施費用、佣金和銷售費用運作，我們獲得了像現在這樣多的新業務預訂成長，這給我們帶來了很大的壓力。坦白說，儘管支出大幅增加（其中一些顯然與《平價醫療法案》有關，包括新業務預訂成本和實施費用），但我還是為公司能夠實現第四季度的利潤率增長而感到無比自豪，而且這一增長仍然接近我們的長期指導目標。

I think that leads me to believe that even though we still have a lot of investments we want to make in the business, I want to be very, very clear that we are managing all of the variables in our business, including the need to continue to invest in our technology, in our associates, in a number of things. But If in fact as Jan said, if the fourth quarter our new business bookings growth because, of growth over the previous year is smaller, that takes pressure off of us from a margin standpoint. The same would apply to next year.

我認為這讓我相信，儘管我們仍然有很多投資想要投入到業務中，但我想要非常非常明確地表明，我們正在管理業務中的所有變量，包括繼續投資於我們的技術、我們的員工以及許多其他方面。但如果真如 Jan 所說，如果第四季我們的新業務預訂量成長較上年同期下降，那麼從利潤率的角度來看，這將減輕我們的壓力。明年情況也一樣。

If we are not providing guidance in terms of our new business bookings growth for the next year, but mathematically if we get back into the long-term range of our new business bookings that will also provide tailwind and help take pressure off of our margin. Again, without getting -- I mean, I could go on for a long time in terms of how our business model works. But we feel pretty good. In fact, this year I think would give us a high degree of encouragement. It was hard. And people worked very, very hard on controlling all controllable expenses in order to still deliver the kind of margin improvement we are in face of the increased costs we had. But it just shows the power of the business model, and I think the ability of the Company to leverage its revenue growth.

雖然我們無法對明年的新業務預訂成長做出預測，但從數學角度來看，如果我們能夠回到新業務預訂的長期預期範圍內，這將為我們提供順風，並有助於減輕利潤率的壓力。再說一遍，不談——我的意思是，我可以就我們的商業模式如何運作講很久。但我們感覺還不錯。事實上，我認為今年會為我們帶來極大的鼓舞。這很難。為了在成本增加的情況下仍然實現我們所看到的利潤率提升，大家付出了巨大的努力來控制所有可控費用。但這恰恰體現了該商業模式的強大之處，也反映了公司利用其收入成長的能力。

Thank you. Just following up, just on the staffing up you did in this past quarter. Just curious if you are you fully staffed or completely right staffed for the migrations effort, or still more incremental hiring to do? Thank you.

謝謝。我只是想跟進一下，關於你們上個季度的人員擴充工作。我只是好奇你們的人員配備是否充足，或者是否完全滿足遷移工作的需求，還是還需要逐步招募？謝謝。

I think one of the comments, I made in my opening statement was around the -- what we are looking forward to is we added a lot of additional resources that are in the process of ramping up. In other words, of going through training. And frankly it's not just about training, because that's a relatively short process, but it's just the way it works probably in most companies that obviously as a person becomes more tenured, they become more effective and more productive. We do expect to have continued help from the resources that we've added. In terms of headcount, in terms of FP headcount, we believe we are fully staffed and that we are where we wanted to be at this point.

我認為我在開場白中提到的一點是——我們期待的是，我們增加了許多額外的資源，這些資源正在逐步投入使用。換句話說，就是接受訓練。坦白說，這不僅僅是培訓的問題，因為培訓是一個相對較短的過程，但這在大多數公司裡可能都是普遍現象，隨著員工資歷的增長，他們的效率和生產力自然也會提高。我們預計新增資源將持續提供協助。就人員數量而言，就FP人員數量而言，我們認為我們已經滿員，並且達到了我們目前想要達到的目標。

Thank you very much.

非常感謝。

Thank you. Our next question comes from the line of Danyal Hussein with Morgan Stanley. Please go ahead.

謝謝。我們的下一個問題來自摩根士丹利的丹尼爾·侯賽因。請繼續。

Hi, Carlos and Jan. Thanks for taking the question.

嗨，卡洛斯和簡。感謝您回答這個問題。

Can you just talk about how the improvement in retention came in versus your expectations when you first set out and took actions to address it? And at this point, do you still have a backlog for ACA implementation, or are you fully caught up?

您能否談談在最初著手解決這個問題時，您的預期與實際的留存率提升情況相比如何？目前，你們在實施《平價醫療法案》(ACA) 方面是否還有積壓工作，還是已經全部完成？

Yes. First, a disclaimer. Retention fluctuates over the quarter and has seasonality in it and changes. So we generally think about it as a longer-term type of trend. And I would say that the third quarter was right in line with our expected improvements for our full-year expectations. So, we just make the progress we expected. And within the forecasting uncertainty that there is, we can ride out in that range. So we are pretty happy about that.

是的。首先，聲明一下。用戶留存率會隨季度波動，並受季節性因素影響而變化。所以我們通常將其視為長期趨勢。我認為第三季的業績完全符合我們對全年業績的預期。所以，我們取得了預期的進展。在預測存在不確定性的範圍內，我們可以接受這個範圍。我們對此感到非常滿意。

You had a second part of your question?

你的問題還有第二部分嗎？

Just on the backlog that you had in the implementation.

只是針對您在實施過程中積壓的問題。

We are still implementing ACA solutions. We have sold some ACA solutions for the next year. We are working on completing the delivery of product, which centers around the employee -- employer part of the portion of the ACA. They are still in high gear. They're reaching out to clients. They are connecting and making sure everything is going well. So that activity has stabilized, obviously, and the big push of the March deadline is behind us. But this is going to be now part of our regular business.

我們仍在實施《平價醫療法案》（ACA）解決方案。我們已經售出了一些明年的ACA解決方案。我們正在努力完成產品的交付，該產品主要圍繞著《平價醫療法案》(ACA) 中關於員工與雇主的部分。他們仍然全速前進。他們正在聯繫客戶。他們正在聯繫並確保一切進展順利。所以很明顯，市場活動已經趨於穩定，3 月最後期限的衝刺階段已經過去。但這將成為我們日常業務的一部分。

Okay. A second question is on PEO. The spread between revenue growth and the average worksite employee growth had narrowed a bit in the quarter. Just wondering if there is deceleration of medical inflation or other pass-through taxes, or is it --

好的。第二個問題是關於PEO的。本季營收成長與平均工作場所員工成長之間的差距略有縮小。想知道醫療通膨或其他轉嫁稅費是否有所放緩，還是——

Mathematically, that is actually an astute observation. The answer is actually related to my comment that we had in the balance growth comments of my portion. Unemployment insurance rates have declined. So as a consequence of that, the pass-through of that [sooey] rate has diminished the total revenue growth versus the processing revenue growth. That's the biggest factor. A number of ins and out. But nothing other structurally changing.

從數學角度來看，這確實是一個精闢的見解。答案其實與我之前在關於平衡成長的評論部分的評論有關。失業保險費率有所下降。因此，此[sooey]率的傳遞降低了總收入成長相對於加工收入成長的幅度。這是最重要的因素。多次進出。但除此之外，結構上沒有其他變化。

I think without getting into the weeds, the state employment that is Jan is referring to, it affects our balances and also affects the PEO, is a tax that gets capped fairly early, depending on, obviously, on your wage. But it tends to be a first-quarter phenomenon. Again, we don't provide quarter-to-quarter guidance. But if you were to see that narrowing that you observed would be more pronounced in the first quarter and then --

我認為，撇開細節不談，Jan 所指的州政府僱員，它會影響我們的帳戶餘額，也會影響 PEO，而且這項稅收的上限很早就確定了，顯然，這取決於你的工資。但這通常是第一季的現象。再次聲明，我們不提供季度業績指引。但如果你觀察到這種收窄趨勢在第一季會更加明顯，然後——

In the first calendar quarter.

第一季。

In the first calendar quarter, sorry, than it would be going forward. Just to help a little bit there.

在第一季度，很抱歉，情況會比之後的情況更糟。只是想幫個小忙。

Understood, thank you.

明白了，謝謝。

Thank you. Our next question comes from the line of Jeff Silber with BMO Capital Markets. Your line is open.

謝謝。我們的下一個問題來自 BMO 資本市場的 Jeff Silber。您的線路已開通。

Thanks so much. I don't think anybody has asked about the pricing environment yet. So let me the first to ask that question. How has it changed, if at all, over the past quarter or so?

非常感謝。我認為目前還沒有人問過定價環境方面的問題。那麼，就讓我先問這個問題吧。在過去一個季度左右的時間裡，情況發生了怎樣的變化？如果有變化，又是如何變化的？

Yes, we were expecting the question and we really have no news to report. It is really unchanged. We are continuing with price increases of less than 1% in our revenue growth. So we are executing against our long-term vision of price increases. Also discounting environment is similar. It varies by segment a little bit over quarters and how we manage our sales force. But no structural change in the pricing environment.

是的，我們預料到了這個問題，但我們確實沒有什麼新消息要報告。它真的沒有任何改變。我們將持續維持價格上漲幅度低於營收成長1%的步伐。因此，我們正在執行我們長期以來提高價格的計劃。折扣環境也類似。不同細分市場在不同季度之間略有不同，這取決於我們如何管理銷售團隊。但價格環境並沒有發生結構性變化。

I think that's probably a good place to also mention, because it's a question we've gotten a couple of times in the last couple of quarters given the client retention questions. That again, Jan and I spend a lot of time, particularly when we have a full quarter looking at it, and then at the year-to-date numbers around wins and losses and competitors and so forth. I think I was very, very clear that we have a lot of competition in every segment of our market. But we really don't have anything to report in terms of any major changes around individual competitors, or as Jan alluded to, people changing their approach based on pricing or other factors. It's all kind of normal course and speed, if you will, but with a lot of competition, obviously, which we've had for number of years.

我覺得這裡也應該提一下，因為在過去的幾個季度裡，考慮到客戶留存率的問題，我們已經問過這個問題了。再說一遍，我和 Jan 會花很多時間，特別是當我們有一整個季度的時間來研究它時，然後研究年初至今的勝負數據、競爭對手等等。我認為我已經非常非常清楚地表明，我們在市場的各個細分領域都面臨著激烈的競爭。但就個別競爭對手而言，或者如 Jan 所暗示的那樣，人們根據定價或其他因素改變策略而言，我們真的沒有什麼重大變化需要報告。一切都還在正常的進程和速度之中，當然，競爭也很激烈，這種情況已經持續好幾年了。

Okay, great. Now onto a obscure question on taxes. We noticed that you've lowered your guidance for tax rates. I know it came in a little bit lower than expected for the quarter you just reported. Can you just give us a little color, what's going on there, and should that be the new tax rate we use longer term?

好的，太好了。現在來探討一個關於稅收的冷門問題。我們注意到您降低了稅率預期。我知道你剛剛公佈的季度業績比預期略低。能否簡單介紹一下情況，具體發生了什麼事？這是否應該成為我們長期採用的新稅率？

Thanks so much.

非常感謝。

No, you should not. These were one-time items that were actually in this case related to our prior bigger transactions on divestitures and the spin. So we just identified a little bit more opportunity that came in and that we hadn't forecasted.

不，你不應該。這些都是一次性項目，實際上與我們之前較大的資產剝離和分拆交易有關。所以我們發現了一些之前沒有預料到的新機會。

Okay, appreciate that. Thanks so much.

好的，謝謝。非常感謝。

Our next question comes on the line of Jason Kupferberg with Jefferies. Your line is open.

我們的下一個問題來自傑富瑞集團的傑森·庫柏伯格。您的線路已開通。

Sure. This is Ramsey El-Assal standing in for Jason. When we look at the new business bookings, the healthy growth in new business bookings, how much of this is new business to payroll PEO versus competitor takeaways versus cross-sell?

當然。這是拉姆齊·埃爾-阿薩爾，他代替傑森出場。當我們觀察新業務預訂情況時，新業務預訂量呈現健康成長，那麼其中有多少是薪資管理 PEO 的新業務，又有多少是競爭對手搶佔的市場份額，還有多少是交叉銷售的呢？

The mix of our new business bookings is relatively stable. It for the total new business bookings picture is 50/50, approximately. 50% of our new business bookings is generated by capturing new clients and about 50% is generated by selling more product to our existing clients.

我們新業務預訂的組成相對穩定。就新增業務預訂總量而言，大約是 50/50。我們 50% 的新業務訂單來自開發新客戶，約 50% 來自向現有客戶銷售更多產品。

Secondly, I think in detail, we don't disclose the sales volume on new business bookings volume to our PEO, but we have also prior -- in prior calls disclosed that about half of our business to the PEO is new clients and about half of the business comes from existing ADP clients that fuel the overall growth of the PEO. We have this rule 50/50 and they apply consistently, and move actually very little quarter over quarter.

其次，我認為，具體來說，我們不會向 PEO 披露新業務預訂量的銷售額，但我們之前也曾在電話會議中透露，我們向 PEO 提供的業務中約有一半是新客戶，約有一半來自現有的 ADP 客戶，這些客戶推動了 PEO 的整體增長。我們有 50/50 的規則，而且一直適用，實際上每個季度之間的變化都很小。

Okay, great. That's very helpful. In your Employer Services revenue, what percentage is now non-US? Has that split between Canada, Europe and other geographies changed? I'm just trying to get an idea in terms of whether there's been a shift in terms of the currencies you are exposed to? Granted, you're expanding pretty dramatically and across the globe.

好的，太好了。那很有幫助。在您的雇主服務收入中，目前有多少百分比來自美國以外的地區？加拿大、歐洲和其他地區之間的這種分歧是否發生了變化？我只是想了解一下，你所持有的貨幣種類是否改變了？誠然，你們的擴張速度非常快，而且遍及全球。

Since Carlos -- let me answer that tough question. Carlos may have mentioned it, but we don't currently -- at current rates don't expect FX pressure for the fourth quarter. A little less than 20% of our revenues are international revenues that have been fairly stable over the last many years, actually. Our largest exposure is the euro and the Canadian dollar. Those are the majority that you would want to watch.

既然卡洛斯——讓我來回答這個棘手的問題。卡洛斯可能提到過，但我們目前——以目前的匯率來看——預計第四季不會面臨外匯壓力。實際上，我們近 20% 的收入來自國際市場，而且在過去很多年裡，國際收入一直相當穩定。我們最大的投資標的是歐元和加幣。這些是大多數你想看的影片。

Great. Thank you very much.

偉大的。非常感謝。

(Operator Instructions)

（操作說明）

Our next question comes from the line of Stephanie Davis with JPMorgan. Your line is open.

我們的下一個問題來自摩根大通的 Stephanie Davis。您的線路已開通。

Hello. Thanks for taking my question. I know we've addressed this a bit for the mid-market. Can you talk to the mix of cloud versus legacy clients on a total Company basis?

你好。謝謝您回答我的問題。我知道我們已經針對中階市場稍微探討過這個問題。您能否從公司整體的角度談談雲端客戶與傳統客戶的組合？

I think on a client percentage basis, I think we have always been careful to make sure that we communicate very clearly on this, because we've moved all of our down-market clients onto our cloud solution, and that is close to 450,000 clients. In terms of number of clients we have about 500,000 clients that are on our cloud products, which are strategic platforms. So percentage-wise, it's a very high percentage of our clients. But clearly from a revenue standpoint that would be different, because our small clients' average revenue per client is much lower than our mid-market or our up-market. I think down-market, 100% of our clients, around 450,000 are on cloud.

我認為，從客戶百分比來看，我們一直非常謹慎地確保就此進行清晰的溝通，因為我們已經將所有低端市場客戶轉移到了我們的雲端解決方案上，這大約有 45 萬個客戶。就客戶數量而言，我們約有 50 萬客戶在使用我們的雲端產品，這些產品都是策略平台。所以從百分比來看，這占我們客戶的比例非常高。但從收入的角度來看，情況顯然會有所不同，因為我們的小型客戶的平均每位客戶收入遠低於我們的中端市場或高端市場。我認為，在低階市場，我們 100% 的客戶，大約 45 萬客戶，都在使用雲端服務。

In the mid-market we have probably over 60% or so of our clients on our strategic cloud solution. And in the up-market, I don't have that percentage off hand. Again, that is one where you really look at it on a client-by-client basis. But I think that gives you a little of a flavor of where we are. Our plan obviously is to continue the upgrades in order to continue to drive those percentages higher. But that gives you maybe a little bit of color.

在中階市場，我們大約有 60% 以上的客戶採用了我們的策略雲端解決方案。至於高端市場，我一時想不出具體的百分比數據。同樣，這需要具體問題具體分析，逐位客戶進行評估。但我認為這能讓你對我們目前的處境略知一二。我們的計劃顯然是繼續進行升級，以繼續提高這些百分比。但這或許能為你帶來一些色彩。

Yes, I think that's about it.

是的，我想大概就是這樣了。

All right. Thank you for the color. Just one follow-up on the retention side. With some macro employment improvements and the migration push, are you seeing any structural shift in voluntary versus involuntary attrition mix?

好的。謝謝你提供的色彩。關於客戶留存方面，還有一個後續問題。隨著宏觀就業情勢的改善和移民潮的推動，您是否看到自願離職與非自願離職的比例發生了任何結構性變化？

We do monitor the factors that are cause for our retention. If you take a multi-year look, which I think if you want to look at the economic factors that impact our retention, SPS is most affected by these economic factor, new business foundation and other business are impacting our ability to sell and impacting our retention rate in SPS. We had excellent retention rates in the down-market, partially aided by this improvement of the business environment overall.

我們會密切注意導致員工流失的因素。如果從多年的角度來看，我認為如果你想了解影響我們客戶留存的經濟因素，那麼SPS受​​這些經濟因素的影響最大，新業務基礎和其他業務正在影響我們的銷售能力，並影響SPS的客戶留存率。在市場低迷時期，我們的客戶留存率非常高，這在一定程度上得益於整體商業環境的改善。

That has been fairly stable for the last three quarters. So we have not seen a big change. Our comments regarding high employment and the economy were more geared as a general notion to the expectations that we had a very long positive economic cycle. And we see overall for the business potentially a slight slowing from a still growing trend, basically. So it is a very nuanced comment that we wanted to make, so ever so slightly we're coming close to what some people would probably describe as a full employment in the economy.

過去三個季度以來，這項數據一直相當穩定。所以，我們還沒有看到太大的改變。我們關於高就業率和經濟的評論更多是針對這樣一種普遍預期：我們將迎來一個非常長的積極經濟週期。總體而言，我們認為該業務的成長趨勢可能會略有放緩，但整體趨勢仍在成長。所以，我們想表達的是一個非常微妙的觀點，那就是，我們正略微接近一些人可能會描述的經濟中的充分就業。

And the comment is really around pace per control growth rather than client retention, even though I think as Jan was alluding to obviously as the economic cycle matures, at some point there might be an impact on client retention. But for today I think our comments were really directed at our pace per control growth, because I think the math is very clear there.

而這篇評論實際上是關於每個控制點的成長速度，而不是客戶留存率，儘管我認為正如 Jan 所暗示的那樣，隨著經濟週期的成熟，在某個時候可能會對客戶留存率產生影響。但就今天而言，我認為我們的評​​論實際上是針對我們每個控制點的成長速度，因為我認為這方面的數學計算非常清楚。

What we've seen in past economic cycles is you could possibly go for a few years with a kind of fullish employment type of situation, which then impacts pace per control but doesn't necessarily impact client retention. But clearly if the economic cycle turns, we've been clear and very transparent around how our business model works. Particularly in a down market, a negative economic cycle has negative impact on our client retention.

我們從過去的經濟週期中看到，可能會出現幾年接近充分就業的情況，這會影響每個控制點的速度，但不一定會影響客戶留存率。但很顯然，如果經濟週期逆轉，我們已經明確且非常透明地說明了我們的商業模式是如何運作的。尤其是在市場低迷時期，負面的經濟週期會對我們的客戶留存率產生負面影響。

All right. Thank you.

好的。謝謝。

Thank you. That does conclude today's Q&A portion of the call. I'm pleased to hand the program back over to Carlos Rodriguez for any closing remarks.

謝謝。今天的問答環節到此結束。我很高興將節目交還給卡洛斯·羅德里格斯，請他作總結發言。

I want to thank you for participating today. I just want to reiterate how proud I am of the organization's ability to get our solutions implemented on ACA compliance. Other than back to Y2K, during my tenure here at ADP this has been probably the most challenging time in terms of need to ramp-up resources in terms of implementations and service, and be able to absorb the new business bookings that we've had over the last several years. It was a lot of hard work and a lot of dedication on the part of a lot of associates. And I want to thank them specifically for everything they did for our clients.

感謝各位今天的參與。我只想再次強調，我為本組織能夠將我們的解決方案落實到符合《平價醫療法案》(ACA) 的合規性方面感到無比自豪。除了 Y2K 問題之外，在我任職 ADP 期間，這可能是最具挑戰性的時期，因為我們需要在實施和服務方面加大資源投入，並能夠消化過去幾年來新增的業務訂單。這凝聚了許多同事的辛勤付出和奉獻精神。我特別要感謝他們為我們的客戶所做的一切。

I don't know if it was clear in the call today but when you look at our strong new business bookings, which now when you look at the compounded growth rate over the last 5 or 6 years in double digits, coupled with the improving trend on retention, what we have been able to do in terms of these ACA implementations, and despite all that deliver decent margin improvement, it's really a lot to be proud of. So I want to thank all the associates across all of ADP for their hard work and contribution to the success that we've had this quarter. And I want to thank all of you for joining us today. And I want to thank you for your interest in ADP.

我不知道今天的電話會議中是否表達清楚了，但是看看我們強勁的新業務預訂量，尤其是過去 5 到 6 年兩位數的複合增長率，再加上客戶留存率的不斷提高，以及我們在 ACA 實施方面所取得的成就，儘管如此，我們仍然實現了可觀的利潤率提升，這真的非常值得驕傲。因此，我要感謝ADP全體員工的辛勤工作和為我們本季取得的成功所做的貢獻。感謝各位今天蒞臨現場。感謝您對ADP的關注。

Ladies and gentlemen, that does conclude today's conference. You may all disconnect. Everyone have a wonderful day.

女士們、先生們，今天的會議到此結束。你們可以斷開連結了。祝大家今天過得愉快。