自動資料處理 (ADP) 2017 Q1 法說會逐字稿

My name is Stephanie. I'll be your conference operator. At this time, I'd like to welcome everyone to ADP's first-quarter FY17 earnings call.

我叫史蒂芬妮，我是這次電話會議的接線生。現在，我謹代表ADP公司歡迎各位參加2017財年第一季財報電話會議。

I would like to inform you that this conference is being record.

我想通知各位，本次會議正在進行錄影。

(Operator Instructions)

（操作說明）

Thank you. I will now turn the conference over to Christian Greyenbuhl, Vice President Investor Relations. Please, go ahead.

謝謝。現在我將把會議交給投資者關係副總裁克里斯蒂安·格雷恩布爾先生。請您開始吧。

Thank you, Stephanie. Good morning, everyone. This is Christian Greyenbuhl, ADP's Vice President Investor Relations. 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 first-quarter FY17 earnings call and webcast.

謝謝Stephanie。大家早安。我是ADP投資者關係副總裁Christian Greyenbuhl。今天和我一起出席的還有ADP總裁兼執行長Carlos Rodriguez和ADP財務長Jan Siegmund。感謝各位參加我們2017財年第一季財報電話會議及網路直播。

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. I also want to highlight for you that the quarterly history of revenue and pre-tax earnings for our reportable segments is also available on the Investor Relations section of our website.

在今天的電話會議中，我們將提及一些我們認為對投資人有用的非GAAP財務指標。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投資者關係網站的補充幻燈片中。此外，我還想強調，我們可報告分部的季度收入和稅前利潤歷史記錄也可在網站的投資者關係部分查閱。

These schedules have been updated to include the first quarter of FY17 and have been adjusted to align with recent changes in our segment reporting to align our financial reporting with how management now views the business. Most notably, effective this quarter, we are now allocating stock based compensation to the segments and have made some changes to the allocation methodology for certain corporate level allocations. Accordingly, prior periods presented have been restated. Our segment guidance reflects the impact of these changes.

這些時間表已更新，納入了2017財年第一季度，並根據我們近期分部報告的變更進行了調整，以使我們的財務報告與管理層對業務的最新看法保持一致。尤其值得注意的是，自本季度起，我們將股票選擇權激勵分配至各分部，並對部分公司層面的分配方法進行了調整。因此，先前列示的期間已進行重述。我們的分部績效指引已反映這些變更的影響。

Before Carlos begins, 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. Now, let me turn the call over to Carlos.

在卡洛斯開始發言之前，我想提醒大家，今天的電話會議將包含一些前瞻性陳述，這些陳述涉及未來事件，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，以了解更多可能導致實際結果與我們目前預期有重大差異的風險因素。現在，我將把電話會議交給卡洛斯。

Thank you, Christian. Thank you all for joining our call this morning, we appreciate your interest in ADP. This morning, we reported our first-quarter FY17 results, with revenue up 7% to $2.9 billion, despite 1 percentage point of combined pressure from foreign currency translation and the impact of the sale of the AdvancedMD business at the end of our FY16 first quarter. We are pleased with this revenue growth, which was in line with our expectations. We continue to see the benefits from our recent new business bookings helping to drive growth in the quarter. In addition to this solid revenue growth, adjusted diluted earnings per share grew 26% to $0.86 per share.

謝謝克里斯蒂安。感謝各位今天上午參加我們的電話會議，我們非常感謝大家對ADP的關注。今天上午，我們公佈了2017財年第一季業績，儘管受到外匯折算和2016財年第一季末出售AdvancedMD業務的雙重影響，營收仍增長7%至29億美元，達到1個百分點。我們對此營收成長感到滿意，符合預期。我們持續受惠於近期新增業務訂單，推動了本季的成長。除了穩健的營收成長外，調整後稀釋每股收益也成長了26%，達到每股0.86美元。

Overall, our earnings growth exceeded our expectations this quarter and we are very pleased with our results. There were a number of contributing factors to our strong earnings performance. Jan will walk through these shortly. On the new business bookings front, during the quarter, we were flat compared to the first quarter of 2016, which was in line with our expectations. We continue to forecast 4% to 6% bookings growth for the year.

整體而言，本季我們的獲利成長超出預期，我們對業績非常滿意。強勁的獲利表現得益於多方面因素，Jan稍後將詳細介紹。在新業務預訂方面，本季與2016年第一季持平，符合預期。我們仍預測全年預訂量將成長4%至6%。

I want to remind you of the tailwinds we experienced in FY16 from the sale of additional modules related to the Affordable Care Act. Our anticipated FY17 performance, if achieved, would lead to a three-year compounded annual growth rate of 9%, which remains in line with our long-term new business bookings guidance of 8% to 10%. Overall, our revenue growth was solid this quarter. While we do not expect all of the margin expansion we saw this quarter to continue through the remainder of the year, we are pleased with our overall results.

我想提醒各位，我們在2016財年受益於與《平價醫療法案》相關的額外模組銷售。若2017財年業績預期得以實現，三年複合年增長率將達到9%，這與我們8%至10%的長期新業務預訂量指引相符。整體而言，本季我們的營收成長穩健。雖然我們預計本季利潤率的提升無法持續到年底，但我們對整體業績感到滿意。

Before I continue, I wanted to share a little more insight regarding retention. During the quarter, we experienced a decline in retention of 100 basis points, which was due to the loss of a contract pertaining to our CHSA business, which we announced today has been sold to WageWorks. Excluding the impact of this single client loss, retention would have been flat in the quarter. We continue to see the benefits of our efforts to upgrade clients to the most appropriate strategic cloud based platforms. These upgrade efforts remain on track and progressed nicely during the quarter.

在繼續之前，我想就客戶留存率分享一些更深入的見解。本季度，我們的客戶留存率下降了100個基點，這是由於我們失去了一份與CHSA業務相關的合同，我們今天宣布該業務已出售給WageWorks。如果排除這筆客戶流失的影響，本季的客戶留存率將與上一季持平。我們持續看到將客戶升級到最合適的策略性雲端平台所帶來的益處。這些升級工作進展順利，在本季取得了良好成效。

As I just mentioned, today we announced that WageWorks was acquiring two non-strategic ADP businesses, namely our CHSA and COBRA businesses for $235 million. In selling to a top tier provider in these markets, we believe this agreement will truly unlock the potential of these businesses, while allowing us to sharpen our focus on ADP's core benefits administration offering. In conjunction with these dispositions, ADP entered into a partnership with WageWorks that will allow us to continue offering their COBRA and CHSA solutions to ADP clients in an integrated fashion. This is a great example of ADP continuing to build an eco system of complementary services that allow clients to extend the value of their core ADP human capital management solutions.

正如我剛才提到的，我們今天宣布WageWorks將以2.35億美元收購ADP的兩項非策略性業務，即我們的CHSA和COBRA業務。我們相信，透過將這些業務出售給這些市場中的頂級供應商，這項協議將真正釋放這些業務的潛力，同時使我們能夠更專注於ADP的核心福利管理服務。同時，ADP與WageWorks建立了合作夥伴關係，這將使我們能夠以整合的方式繼續向ADP客戶提供其COBRA和CHSA解決方案。這充分體現了ADP持續建構互補服務生態系統的理念，該生態系統能夠幫助客戶擴展其核心ADP人力資本管理解決方案的價值。

Last quarter, we shared details of our service alignment initiative, which is part of our strategy to simplify the service organization by aligning ADP's service operations to our strategic platforms. In addition to improving the client service experience, this initiative is expected to enhance ADP's service capabilities and contribute to operating efficiencies over the long term. We are pleased with the progress we are making at our new strategic locations in Maitland, Florida and Norfolk, Virginia. Efforts to staff and operate from these locations have commenced and are proceeding according to plan.

上個季度，我們分享了服務整合計畫的細節。該計劃是我們簡化服務組織架構策略的一部分，旨在將ADP的服務營運與我們的策略平台整合。除了提升客戶服務體驗外，該計畫預計還將增強ADP的服務能力，並有助於長期提高營運效率。我們對位於佛羅裡達州梅特蘭和維吉尼亞州諾福克的新戰略辦公地點的進展感到滿意。人員配備和營運工作已經啟動，並正按計劃進行。

We will soon announce the location of our third new site in the Western part of the US, which we anticipate being operational toward the latter part of this fiscal year. Our results this quarter reflect the strength of our business model and give us momentum as we stay focused on delivering an outstanding client experience through great service and innovative solutions, many of which are receiving a wealth of external recognition.

我們將很快公佈位於美國西部第三個新站點的選址，預計該站點將於本財年下半年投入營運。本季業績體現了我們商業模式的優勢，並為我們提供了強勁的發展動力。我們將繼續專注於透過卓越的服務和創新的解決方案，為客戶提供非凡的體驗，其中許多方案都獲得了廣泛的外部認可。

Recently, we shared that ADP was named a leader in payroll business process outsourcing by Gartner for the fifth consecutive year. Gartner's study analyzed vendors across all regions, employer sizes and service delivery models, evaluating both their ability to execute and completeness of vision. In naming ADP a leader, Gartner recognized us for combining a clear view of the market's direction and a deep understanding of client needs, with the capabilities and expertise to deliver against them. Payroll outsourcing is core to who we are and is part of delivering outstanding HCM solutions. We are extremely proud of the sustained recognition for our leadership in this area.

近日，我們宣布ADP連續第五年被Gartner評為薪資業務流程外包的領導者。 Gartner的研究分析了所有地區、各種規模雇主和服務交付模式的供應商，評估了他們的執行能力和願景的完整性。 Gartner將ADP評為領導者，是對我們清晰掌握市場走向、深刻理解客戶需求，並具備滿足這些需求的能力和專業知識的認可。薪資外包是我們業務的核心，也是我們提供卓越人力資本管理（HCM）解決方案的重要組成部分。我們為在該領域持續獲得認可而感到無比自豪。

Today, ADP is delivering HCM solutions to more than 650,000 clients and 39 million employees worldwide. These data points are important for a number of reasons. They clearly demonstrate our unique reach and marketplace success over a sustained period of time. But they also represent a unique differentiator for ADP. The scale and the data that this client base represents allows us to deliver a suite of new capabilities that we believe hold the potential to transform the strategic value of the HR function. Because we pay one in six workers in the US, we are in the unique position to deliver advanced analytics capabilities that can help clients address workforce productivity, talent development and retention.

如今，ADP 為全球超過 65 萬名客戶和 3,900 萬名員工提供人力資本管理 (HCM) 解決方案。這些數據意義重大，原因有以下幾點：它們清楚地展現了我們獨特的市場覆蓋範圍和長期持續的市場成功；同時，它們也代表了 ADP 的獨特優勢。如此龐大的客戶群及其所代表的數據，使我們能夠提供一系列全新功能，我們相信這些功能可望提升人力資源職能的策略價值。由於我們為美國六分之一的員工提供薪酬，因此我們擁有得天獨厚的優勢，能夠提供先進的分析功能，幫助客戶提升員工生產力、發展人才並提高員工留任率。

Leveraging this data, we introduced the ADP DataCloud to allow business leaders and HR professionals to generate actionable insights from the workforce data embedded in their ADP HCM solutions. Today, more than 3,200 clients are using our analytics platform. About a year ago, we introduced benchmarking to this platform. The benchmarking capability provides users with a unique competitive advantage by delivering insight from actual live data to help clients evaluate their workforce against other companies in their market space.

利用這些數據，我們推出了 ADP DataCloud，使企業領導者和人力資源專業人員能夠從嵌入 ADP HCM 解決方案中的員工資料中獲取可執行的洞察。如今，已有超過 3,200 家客戶正在使用我們的分析平台。大約一年前，我們為該平台引入了基準測試功能。基準測試功能透過提供來自真實即時數據的洞察，幫助客戶評估自身員工隊伍與同行業其他公司之間的差異，從而為用戶帶來獨特的競爭優勢。

Our benchmarking capability puts key industry workforce metrics at our clients' fingertips, avoiding the inherent time lag or inaccuracy associated with salary and other types of survey based data. A few weeks ago, at the HR technology conference in Chicago, we received two distinctive recognitions for our DataCloud benchmarking capability. At the show, HR Executive Magazine named this one of its top products for 2016 and recognized it as one of the year's awesome new technologies for HR.

我們的基準測試功能讓客戶輕鬆掌握關鍵的產業勞動力指標，避免了薪資和其他調查數據固有的時間延遲和不準確性。幾週前，在芝加哥舉行的HR技術大會上，我們的DataCloud基準測試功能榮獲兩項殊榮。在展會上，《HR Executive》雜誌將其評為2016年度最佳產品之一，並稱其為年度最傑出的人力資源新技術之一。

I should note, this is the second year in a row that we've received these distinguished awards. We received them both last year for the ADP marketplace, the first and largest HCM app ecosystem in the market. I've said before that innovation is a job that's never done. But we are proud of the progress to date and the external recognition we are receiving. We believe that innovations like these and the investments we are making to simplify our portfolio are essential to our long-term success. With that, I'll turn the call over to Jan for further review of our first-quarter results.

值得一提的是，這已是我們連續第二年榮獲這些殊榮。去年，我們憑藉ADP市場（市場上首個也是最大的HCM應用生態系統）獲得了這兩項大獎。我之前說過，創新是一項永無止境的工作。但我們為迄今為止的進展以及獲得的外部認可感到自豪。我們相信，此類創新以及我們為簡化產品組合所做的投資，對我們的長期成功至關重要。接下來，我將把電話會議交給Jan，請她進一步回顧我們第一季的業績。

Thank you very much, Carlos. Good morning, everyone. During the quarter, we recorded a restructuring charge of about $40 million related to our service alignment initiative. Certain non-GAAP measures in my commentary to follow exclude the impact of this charge, as well as certain other one-time items recognized in the prior fiscal year. A reconciliation of these non-GAAP measures can be found in this morning's press release and in the supplemental slides on our Investor Relations website.

非常感謝卡洛斯。大家早安。本季度，我們計入了一筆約4000萬美元的重組費用，與我們的服務整合計劃相關。我接下來評論中的某些非GAAP指標不包括這筆費用以及上一財年確認的其他一些一次性項目的影響。這些非GAAP指標的調節表可在今天早上的新聞稿以及我們投資者關係網站上的補充幻燈片中找到。

Before I begin reviewing this quarter's results, I wanted to highlight some additional detail regarding the disposition of our COBRA and CHSA businesses. We currently expect the sale to be completed during the second quarter of FY17 for a pre-tax gain of approximately $200 million, subject to normal and customary closing conditions. The results of operations of these two businesses are currently included in the employer services segment and will not be reflected as a discontinued operation.

在開始回顧本季業績之前，我想先重點介紹一下我們出售COBRA和CHSA業務的一些細節。我們目前預計，在滿足正常交易條件的前提下，此次出售將於2017財年第二季完成，稅前收益約為2億美元。這兩項業務的經營績效目前已計入雇主服務板塊，不會作為終止經營業務列入財務報表。

Accordingly, we have factored the operational impacts from these dispositions into our updated FY17 outlook. As Carlos mentioned, ADP revenues grew 7% in the quarter to $2.9 billion or 8% on a constant dollar basis. On a reported basis, net earnings grew 10% or 9% on a constant dollar basis. Adjusted earnings before interest and taxes or adjusted EBIT grew 21% or 20% on a constant dollar basis. Adjusted EBIT margin increased about 230 basis points compared to the 17.6% in the last year's first quarter. This increase was driven by operational efficiencies and a slower growth in our selling expenses.

因此，我們已將這些資產處置帶來的營運影響納入我們更新後的2017財年展望。正如卡洛斯所提到的，ADP本季營收成長7%至29億美元，以固定匯率計算成長8%。以報告數據計算，淨利成長10%，以固定匯率計算成長9%。調整後息稅前利潤（調整後EBIT）成長21%，以固定匯率計算成長20%。調整後EBIT利潤率較去年同期的17.6%提高了約230個基點。這一成長主要得益於營運效率的提升以及銷售費用成長放緩。

Adjusted diluted earnings per share grew 26% to $0.86 and 26% on a constant dollar basis and benefited from a lower effective tax rate and fewer shares outstanding compared with a year ago. Our adjusted effective tax rate was positively impacted following the adoption of our new stock compensation related accounting pronouncement in our first quarter, which helped drive a decrease of our adjusted effective tax rate of approximately 290 basis points to 30.8% or 3% on an EPS -- $0.03, I apologize, $0.03 on an EPS basis for the quarter.

經調整後的稀釋每股盈餘成長26%至0.86美元，以固定匯率計算也成長26%，這得益於較低的實際稅率和較去年同期減少的流通股數量。我們在第一季採用新的股票薪酬相關會計準則後，調整後的實際稅率受到正面影響，這促使我們的調整後實際稅率下降約290個基點至30.8%，即每股收益的3%——抱歉，是每股收益的3%。

As you read this morning's press release, new business bookings growth was flat for the quarter but in line with our own expectations, following two years of successive double-digit growth, with meaningful contributions from human capital management modules that assist clients in complying with the Affordable Care Act. Overall, our results in the quarter were very good, yielding solid revenue growth with a better than expected margin growth. Although we still have a lot of work ahead of us, I'm also pleased with the progress to date on our service alignment initiative.

正如您今天早上閱讀的新聞稿所述，本季新業務預訂量成長持平，但符合我們的預期。在此之前，我們已連續兩年實現兩位數成長，其中人力資本管理模組的貢獻尤為顯著，這些模組能夠幫助客戶遵守《平價醫療法案》。整體而言，本季業績表現非常出色，營收實現了穩健成長，利潤率成長也超乎預期。儘管我們仍有許多工作要做，但我對迄今為止在服務整合計劃方面取得的進展感到滿意。

Now, our employer services segment. Revenues grew 6% for the quarter and 6% on a constant dollar basis. Our same-store pays per control metric in the US grew 2.7% in the first quarter. Average client fund balances grew 4% compared to a year ago and 4% on a constant dollar basis. This growth was driven by additions of net new business and increased wage levels compared to the prior year's first quarter. Outside the US, we continue to see solid revenue growth and margin growth, driven largely by the success of our multi-national solutions, which continue to perform well. Employer services margin increased about 230 basis points in the quarter.

現在來看我們的雇主服務業務。本季營收成長6%，以固定匯率計算也成長6%。在美國，我們第一季的同店每戶支付額成長了2.7%。平均客戶資金餘額較去年同期成長4%，以固定匯率計算也成長了4%。這一成長主要得益於新增業務量和薪資水準較去年同期有所提高。在美國以外，我們繼續保持穩健的收入和利潤成長，這主要得益於我們跨國解決方案的成功，這些方案持續表現良好。本季雇主服務業務的利潤率提高了約230個基點。

This increase was driven by operational efficiencies and a slower growth in our selling expenses, following on from the difficult selling compare in the first quarter of FY16. The PEO continues to perform well, growing revenues by 13% in the quarter, with average worksite employees growing 13% to 439,000 employees. A portion of the 13% revenue growth was impacted by slower growth in our benefit pass-through cost, resulting from lower healthcare renewal premiums, which outweighed growth from higher benefit plan participation from our worksite employees during the quarter. Along with this revenue growth, the PEO delivered approximately 90 basis points of margin expansion this quarter through increased operating efficiencies.

此次成長主要得益於營運效率的提升以及銷售費用成長放緩，此前2016財年第一季的銷售業績年比基數較高。 PEO業務持續表現良好，本季營收成長13%，平均員工人數也成長13%，達43.9萬人。 13%的營收成長部分受到福利轉嫁成本成長放緩的影響，這主要是由於醫療保險續保費降低所致，抵銷了員工福利計畫參與率提高帶來的成長。除營收成長外，PEO業務本季也透過提升營運效率實現了約90個基點的利潤率提升。

Both of our segments performed well in the quarter and as Carlos mentioned, we are off to a good start. But we also see a mix of factors that impact our FY17 outlook. I will now take a moment to walk you through our revised outlook with you. First, as I mentioned, our new business bookings growth in the quarter was in line with our plans coming off a difficult compare in the first -- prior-year first quarter. Accordingly, we are reaffirming our full-year guidance of 4% to 6% growth on the $1.75 billion sold in FY16.

本季我們兩個業務板塊表現良好，正如卡洛斯所說，我們開局不錯。但我們也看到一些因素會影響我們對2017財年的展望。接下來，我將簡單介紹一下我們修訂後的展望。首先，正如我之前提到的，本季新業務訂單成長符合預期，這得益於去年同期的高基數效應。因此，我們重申全年業績預期，在2016財年17.5億美元的銷售額基礎上成長4%至6%。

We are reaffirming our ES revenue guidance of 4% to 5% and our remaining -- and maintaining our PEO revenue guidance at 14% to 16%. With the disposition of our CHSA and COBRA businesses, which were included for the full FY16, but expected to be only in our results for about the first half of FY17, we have reduced our revenue expectations for the year by almost 1 percentage point. As a result, we are now forecasting revenue growth of 7% to 8% compared with our prior forecast of 7% to 9%, which is not expected to be significantly impacted by foreign currency translation, based on our current rates.

我們重申ES業務營收成長預期為4%至5%，並維持PEO業務營收成長預期為14%至16%。由於處置了CHSA和COBRA業務（這些業務已計入2016財年全年業績，但預計僅在2017財年上半年左右才會體現在業績中），我們將全年營收預期下調了近1個百分點。因此，我們目前預測營收成長為7%至8%，低於先前預測的7%至9%。根據我們目前的匯率，預計這項預測不會受到外幣折算的顯著影響。

As a reminder, during the first fiscal year -- first half of FY16, we made certain investments to support our business through the ACA on-boarding process while also continuing to invest in our sales force to leverage the strong tailwinds from the sales of human capital management modules that assist clients in complying with the ACA. We have seen the benefits of these investments help drive our margin expansion this quarter.

再次提醒，在第一個財政年度（2016財年上半年），我們進行了一系列投資，以支持業務順利完成《平價醫療法案》（ACA）的實施流程，同時持續投資於銷售團隊，以充分利用人力資本管理模組銷售帶來的強勁增長勢頭，這些模組旨在幫助客戶遵守ACA。我們已經看到，這些投資的成效推動了本季利潤率的提升。

I want to caution you, though, against assuming that this momentum will carry through the remainder of our fiscal year, as we begin to lap these easier compares, while continuing to execute on various strategic initiatives, including our client upgrade efforts, investing in innovation and making selective additional service investments. On a segment level, we therefore continue to anticipate margin expansion in ES of about 50 basis points. We are now forecasting about 70 basis -- 75 basis points of margin expansion in the PEO. On a consolidated basis, we have revised our adjusted EBIT margin expansion to about 50 basis points from our previous guidance of 25 to 50 basis points.

不過，我要提醒各位，不要想當然地認為這種成長勢頭會持續到本財年剩餘時間，因為隨著我們開始面臨較為輕鬆的同比基數，同時我們仍在推進各項戰略舉措，包括客戶升級、創新投資以及選擇性地增加服務投資。因此，在業務板塊層面，我們仍預期ES業務的利潤率將提升約50個基點。目前，我們預測PEO業務的利潤率將提升約70至75個基點。在合併層面，我們將調整後的息稅前利潤率提升預期從先前的25至50個基點上調至約50個基點。

Please also note that this margin expansion continues to include about 20 basis points of pressure from dual operation pertaining to our service alignment initiative. We are also now expecting growth in our client fund interest revenue to increase $5 million to $10 million compared with our prior forecasted increase of up to $5 million. The total impact from the client fund extended investment strategy is now expected to be up $5 million compared to the prior forecast of flat growth. The details of this forecast can be found in the supplemental slides on our Investor Relations website.

另請注意，此次利潤率擴張仍受到約20個基點的壓力，這主要源自於我們服務整合計畫的雙重運作。此外，我們預期客戶基金利息收入將增加500萬至1,000萬美元，高於先前預測的500萬美元增幅。客戶基金擴展投資策略的總影響預計將成長500萬美元，高於先前預測的持平成長。有關此預測的詳細信息，請參閱我們投資者關係網站上的補充幻燈片。

With the disposition of our CHSA and COBRA businesses, we now expect growth in our adjusted diluted earnings per share of 11% to 13%, compared with the $3.26 in FY16, aided by about 1% from the first-quarter tax benefit related to the stock based compensation accounting change, which is offset by about 1 percentage point of earnings impact from the disposition of our CHSA and COBRA businesses. On a constant dollar basis, our adjusted diluted earnings per share growth is expected to be 11% to 13%.

隨著CHSA和COBRA業務的處置，我們預期調整後稀釋每股盈餘將成長11%至13%，而2016財年為3.26美元。這主要得益於第一季與股權激勵會計準則變更相關的稅收優惠（約1%），但被處置CHSA和COBRA業務帶來的約1個百分點的收益影響所抵銷。以固定匯率計算，我們預期調整後稀釋每股盈餘成長率為11%至13%。

Our forecast continues to contemplate the return of excess cash to shareholders via share repurchases of $1 billion to $1.4 billion during FY17. This includes any repurchases required to offset any dilution related to employee benefit plans. We believe the adjustments we have made to our FY17 forecast reflect the impact of our planned investment, particularly through the year-end process as we work to grow our strong FY16 sales performance and execute against our strategic initiative.

我們持續預測，將在2017財年透過股票回購向股東返還10億至14億美元的超額現金。這包括為抵消員工福利計劃相關的任何股權稀釋而需要進行的回購。我們認為，我們對2017財年預測所做的調整反映了我們計劃投資的影響，尤其是在年末階段，我們將努力鞏固2016財年強勁的銷售業績，並推進我們的戰略舉措。

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

那麼，接下來我將把發言權交給接線員，由他來回答大家的問題。

(Operator Instructions)

（操作說明）

Rick Eskelsen, Wells Fargo.

Rick Eskelsen，富國銀行。

Just the first one, just to confirm the guidance impact on the top line, confirming that the divestitures of the CHSA and the COBRA businesses is responsible for the change in the revenue outlook. Then also confirming that I heard it was a 1% or so earnings impact from that divestiture as well.

第一點，只是為了確認業績指引對營收的影響，確認剝離CHSA和COBRA業務是導致營收預期變化的原因。另外，我還確認了我聽說的，這次剝離也對獲利造成了約1%的影響。

You're correct. That is the case. If you take it digitally, there's actually, with [duct tape] on both ends, the full percentage off our guidance, clearly just on the top end. We clearly had a good revenue performance in the first quarter already.

你說得對，情況確實如此。如果從數位角度來看，實際上，即使兩端都貼上了膠帶，我們的預期也完全低於預期，顯然只是上限部分。我們第一季的營收表現已經相當不錯了。

That's the only change to the revenue outlook is from that divestiture; correct?

營收預期唯一的改變就是那次資產剝離造成的，對嗎？

That is true.

沒錯。

Okay. Then just following up on the service delivery changes, just wondering, maybe philosophically as you have evolved your business and added a lot more of your technology in the strategic platforms, how has the value of service changed to you or to your clients? Philosophically, how do you approach service now? Thank you.

好的。接下來我想跟進一下服務交付方面的變化，我想問一下，隨著貴公司業務的發展，以及在策略平台中融入更多技術，從理念上講，您或您的客戶對服務的價值有何看法？從理念上講，您現在是如何看待服務的？謝謝。

I think as you heard in my comments about the investments we've made in DataCloud and benchmarking, I think there is an evolution of the definition of service to really providing more expertise and more help in terms of analytics and how to run their businesses better. So some of the things that we traditionally have been strong on in service I think still are a key part of our value proposition. So as an example, we have a very effective, very value-added tax business that helps clients with compliance should they gets notices from either federal, state or local agencies regarding tax payments. So those are the types of services I think we remain committed to continuing to provide but also to make better and enhance.

正如我剛才提到的，我們在資料雲和基準測試方面的投資，也體現了我們對「服務」定義的不斷演變，即在分析和業務運營方面提供更多專業知識和幫助。因此，我們傳統上在服務方面的優勢依然是我們價值主張的關鍵組成部分。例如，我們擁有高效率且極具價值的增值稅業務，可以幫助客戶在收到聯邦、州或地方稅務機構的繳稅通知時遵守相關規定。我認為，我們將繼續致力於提供此類服務，並不斷改進和提升這些服務。

But obviously with the evolution of technology and the evolution of the markets, I think there are opportunities for us to redefine service. I think some of the service alignment initiative I think is intended to go exactly in that direction. So another example I would give is, given the increased penetration of multiple HCM modules when clients purchase our products, particularly in the mid-market or in the up-market, I think the integration of not only our products but of our service experience becomes very important. So you've heard us talk about creating intact teams in some of these new strategic locations that I think is intended to support this evolution of this new service approach or new service model.

但顯然，隨著技術和市場的演進，我認為我們有機會重新定義服務。我認為，一些服務調整措施正是為了朝著這個方向發展。舉個例子，鑑於客戶在購買我們的產品時，尤其是在中端或高端市場，越來越多地使用多種人力資本管理（HCM）模組，我認為整合我們的產品以及服務體驗變得至關重要。您可能已經聽到我們談到，在一些新的策略地點組建完整的團隊，我認為這是為了支持這種新的服務方法或服務模式的演進。

Thank you very much.

非常感謝。

David Ridley-Lane, Bank of America-Merrill Lynch.

David Ridley-Lane，美國銀行美林證券。

Within the 20 basis points of the full-year margin headwind related to the dual running cost as you move to your new integrated service delivery centers, how much was in the first quarter? When do you expect the crossover between increased productivity from the new centers to overcome those frictional costs? Is that a second-half event or more likely in FY18?

在您向新的整合服務交付中心過渡期間，由於雙重營運成本而導致的全年利潤率逆風預計為 20 個基點，其中有多少是在第一季發生的？您預期新中心帶來的生產力提升何時能夠抵銷這些摩擦成本？這種情況會在下半年發生，還是更有可能在 2018 財年發生？

Yes, I would say that it's -- given that we're in the process of ramping up, it's safe to say there was some of that in the first -- some dual operations costs in the first quarter, but it's likely to be more concentrated later in the year in the second half. So that's -- I think you have that right. Probably 40%, I would allocate it just for sake of modeling to 40/60, so 40% maybe first half, 60% second half. But overall, 20 basis points for the year. Again, as Jan pointed out, just because of the way the accounting rules work, that is built into our operating expense versus the restructuring costs are really more intended for things like severance and facilities closure that were directly related to the restructuring and that are non-GAAP.

是的，考慮到我們正處於產能提升階段，可以肯定的是，第一季確實存在一些雙重營運成本，但這些成本可能會更集中在今年下半年。所以，我想你說得對。大概佔40%，為了方便建模，我將其按40/60的比例分配，即上半年40%，下半年60%。但整體而言，全年約為20個基點。正如Jan指出的那樣，由於會計準則的運作方式，這部分成本已計入我們的營運費用，而重組成本實際上更多地用於與重組直接相關的遣散費和設施關閉等非GAAP項目。

Got it. Then are you seeing any additional interest in time and attendance offerings, given the Department of Labor's changes to the overtime regulations, which go into place this December?

明白了。鑑於勞工部將於今年12月生效的加班法規變更，您是否看到人們對考勤服務有額外的興趣？

We are -- as we were going through the materials for the earnings call, we get a lot of detail by market segment and also by product. We have seen better sales and more interest in our time and attendance product. I think the challenge for us is scale, given the size of our sales number -- we sold $1.75 billion last year. We're expecting to grow 4% to 6% this year. It just doesn't have the same scale and magnitude of, as an example, ACA. So, for us to really achieve our sales results, we have to have across the board strength in our sales excluding ACA and excluding our time and attendance product.

在查閱財報電話會議資料時，我們看到了大量按市場細分和產品劃分的詳細資訊。我們的考勤產品銷售量有所成長，市場關注度也更高。我認為我們面臨的挑戰在於規模，儘管我們的銷售額高達17.5億美元（去年），預計今年將成長4%至6%。但與ACA（《平價醫療法案》）等項目相比，其規模和影響力仍相形見絀。因此，為了真正實現銷售目標，我們需要在不考慮ACA和考勤產品的情況下，全面提升銷售。

So I guess the long and short of it is, yes, it helped, but it wasn't material in the grand scheme of things. The deadline is approaching, so it's likely that will continue -- a lot of these changes in regulations and complexity, no different than ACA, we expect it to continue to help with sales and help drive demand for our products, even after the deadline which I believe is in December of this year. But it just doesn't feel like it's having the same magnitude and same kind of scale impact that we had with ACA.

所以總而言之，是的，它確實有所幫助，但從長遠來看，影響並不顯著。截止日期臨近，這種情況很可能會持續下去——這些法規和複雜性的變化，與《平價醫療法案》（ACA）並無二致，我們預計即使在截止日期（我認為是今年12月）之後，它仍將繼續促進銷售並推動對我們產品的需求。但感覺它並沒有像《平價醫療法案》那樣產生同樣規模和程度的影響。

Part of that might be that the ACA rules were really deadline driven and there was a form that needed to be filled out and filed. In this case, these are just changes in rules. So it's a slightly different decision for clients and prospects around -- in some cases, if they go six months without the right tools to be able to manage the new environment, there's really no consequences other than the risk of a potential investigation or fine or whatnot, which is obviously a real risk, but it's just different from a deadline driven event like ACA.

部分原因可能是，ACA 的規定確實有明確的截止日期，需要填寫並提交表格。而這次的情況只是規則的變更。因此，對於客戶和潛在客戶來說，情況略有不同——在某些情況下，如果他們六個月都沒有合適的工具來應對新的環境，除了可能面臨調查、罰款或其他處罰的風險之外，實際上不會有其他後果。當然，這些風險確實存在，但這與 ACA 那種有截止日期的事件有所不同。

Understood. Thank you.

明白了，謝謝。

David Grossman, Stifel Financial.

David Grossman，Stifel Financial。

Carlos, can I ask you just a quick question on mechanics? The bookings comparisons last year are pretty difficult until the fourth quarter. So given that, how should we think of that 4% to 6% bookings target building as this year progresses, given those comparisons?

卡洛斯，我可以問你一個關於營運機制的問題嗎？去年同期的預訂量數據在第四季之前很難進行比較。有鑑於此，考慮到這些比較因素，我們該如何看待今年4%到6%的預訂量成長目標？

Appreciate that question, I think you may have answered the question yourself. So we expect the comparisons to get easier in the second half and, hence, the mathematically the growth rates should be easier to achieve in getting to our overall 4% to 6% for the year. I think just by way of comparison, we went back and looked historically outside of course times where we had recessions and other economic challenges, but in Q1 of 2014, we had 1% sales growth and that was following on Q1 of 2013, 15% growth. The scenario this quarter was we had flat growth over last year's first quarter of around 14% sales growth.

感謝您的提問，我想您可能已經自己回答了這個問題。我們預計下半年的比較會更容易，因此，從數學角度來看，實現全年4%至6%的成長率目標應該會更容易。為了方便比較，我們回顧了歷史數據，當然排除了經濟衰退和其他經濟挑戰時期。 2014年第一季度，我們的銷售額成長了1%，而2013年第一季則成長了15%。本季的情況是，我們的銷售額與去年第一季持平，去年第一季的銷售額成長約為14%。

So I think that when you look at kind of just the size and the scale of these numbers and you look at the way we laid out our forecast for the year, then I think that you can probably deduce that the second half, we expect mathematically to be stronger from a growth rate standpoint than the first half. I also just want to hasten to add that we have the same kind of issue in the second quarter, where we had sequential increase last year's second quarter of 15%. So we had I think it was 13% to 14% growth in the first quarter, then we had 15% in the second quarter. So we will have another difficult compare. I think it would be in line with our expectations to have similar sales results from a growth standpoint for the second quarter.

所以，我認為，當你仔細審視這些數字的規模和比例，以及我們對全年的預測時，你大概可以推斷出，從成長率的角度來看，我們預計下半年的成長速度會比上半年更快。我還想補充一點，我們在第二季也面臨類似的問題，去年第二季的環比成長了15%。也就是說，我們第一季的成長率在13%到14%之間，第二季則達到了15%。因此，我們將面臨另一個比較困難的季度。我認為，從成長的角度來看，第二季的銷售業績與去年同期持平，應該符合我們的預期。

Okay. It looks like you were 13% in the third quarter, so it sounds like it's pretty back-end loaded to the fourth quarter then?

好的。看來你們第三季的業績是13%，所以聽起來業績成長主要集中在第四季末？

That would be right. But again, we have more information internally around what portion of each of those three quarters was ACA related versus other. I would say that you're generally correct but that we would expect the third quarter to have slightly better -- we try to stay away from -- I don't want to fall in the trap of giving quarterly guidance. You're generally right.

沒錯。不過，我們內部掌握更多信息，可以更清楚地了解這三個季度中，與《平價醫療法案》（ACA）相關的部分佔比是多少，其他部分佔比又是多少。總的來說，你的說法基本上正確，但我們預計第三季的情況會略好一些——我們盡量避免給出季度業績指引——我不想落入給出季度業績指引的陷阱。總的來說，你的說法是對的。

Right. Then maybe I could just ask you a little bit more about -- you made some brief comments about the migration in the mid-market, how that's going and retention. So given that retention was declining all of last year and you said it was flat when you back out the CVB loss of the customer in the quarter. So does that really imply, given that you were losing throughout the year last year, that in fact that business started stabilizing even before this quarter? How just in general are you thinking about retention and the kind of residual base who still has not converted thus far?

好的。那麼，我或許可以再問您一些關於中端市場客戶遷移和留存方面的問題——您剛才簡要提到了中端市場的遷移情況以及留存率。鑑於去年全年留存率都在下降，而您提到剔除本季因會展局流失的客戶後，留存率基本上持平。那麼，考慮到去年全年都在流失客戶，這是否意味著業務實際上在本季之前就開始趨於穩定了？您總體上是如何看待留存率以及目前仍未轉換的潛在客戶群的？

Sure, I appreciate the question. So the businesses that we had some challenges with last year, which I think we were clear that it was concentrated in the mid-market, have shown improvement for several quarters, including this quarter. But as you know, we have a number of different businesses. We're a global Company. We have down-market, mid-market, up-market, multi-national. Some of our businesses are also lumpy, particularly our up-market businesses and our BPO businesses. So we feel good about the progress we've made where we made the investments to stabilize and the investments were made in service.

當然，感謝您的提問。去年我們遇到了一些挑戰，主要集中在中端市場，但這些業務在過去幾個季度，包括本季度，都出現了改善。不過，您也知道，我們是一家全球性公司，業務類型豐富多樣，涵蓋低端市場、中端市場、高端市場以及跨國業務。我們的一些業務也存在波動，特別是高端市場業務和業務流程外包（BPO）業務。我們對已取得的進展感到滿意，因為我們加大了投資力度來穩定業務，並改善了服務。

As you know, we're making some longer-term investments in terms of some of these new locations. But that's a longer term -- we did a lot of short-term things to stabilize and improve and we've seen results from that. But again, sometimes retention can be uneven just because of the lumpiness and just the way the math works. But we feel pretty good about where we are. We believe that we are on a good trajectory here in terms of continuing to do migrations and upgrades, which allows us to stay on track for what our objectives are without putting additional incremental pressure on retention.

如您所知，我們正在對一些新地點進行長期投資。但這屬於長期投資——我們之前做了很多短期措施來穩定和改進，並且已經看到了成效。但話說回來，有時用戶留存率會因為資料波動和計算方式的緣故而出現不平衡。不過，我們對目前的狀況相當滿意。我們相信，在持續進行遷移和升級方面，我們正走在正確的軌道上，這使我們能夠在不給用戶留存率帶來額外壓力的情況下，繼續朝著既定目標穩步前進。

The fact that we've gone back to -- this is now probably the second quarter where we've gone back and started our upgrades at a, what I would call, normal, reasonable pace. We've been able to continue to make improvements in our mid-market retention rates. So that tells me that part of the issue was related to the upgrades themselves, but it was also related to just service challenges, pressure from ACA just because of volumes of work and a couple of other factors. We believe we've done the right things. We feel like we're on the right track. We're also sticking to our plans around our migrations and our upgrades of our clients. Because I think it just strengthens us competitively over the long term.

我們已經恢復了正常的升級進度——這大概是第二個季度了——而且是以我認為合理的速度重新開始升級。我們成功地提高了中端市場的客戶留存率。這表明，部分問題確實與升級本身有關，但也與服務方面的挑戰、ACA（平價醫療法案）帶來的工作量壓力以及其他一些因素有關。我們相信我們採取了正確的措施，感覺正走在正確的道路上。我們也將繼續執行客戶遷移和升級計劃，因為我認為這有助於我們在長期競爭中保持優勢。

Great. Thanks very much for that color.

太好了。非常感謝您提供的顏色。

Jim Schneider, Goldman Sachs.

吉姆‧施耐德，高盛集團。

Following up on the comments on margins you made earlier, I noted the discussion about lower benefit pass-through costs in the current quarter, but the PEO margins were, I think, a record at 13.5%. Can you maybe talk about whether margins in that segment specifically are sustainable? Whether you saw any kind of -- how much that one-time benefit from the lower pass-through cost had a benefit to optical margin improvement in the quarter?

關於您之前提到的利潤率問題，我注意到本季福利轉嫁成本有所降低，但PEO業務的利潤率達到了創紀錄的13.5%。您能否談談該業務板塊的利潤率是否可持續？您是否觀察到，降低轉嫁成本這項一次性收益對本季光學業務利潤率的提升有多大幫助？

Jim, thank you for your question. I will answer it directly to your PEO question, but also put the margin question in a little bit bigger picture because there's a lot going on, on margin. Clearly, we had great margin expansion this first quarter. But we are trying to send a signal that might not be continuing throughout the year. The pass-through actually played a big role in it. So we had -- to answer your first question directly, the operational scale that we saw in the PEO was solid with 90 basis points. Clearly that's ahead of our long-term kind of expectations. So we do see and want to make progress in the efficiencies, but it was probably a very good quarter for them.

吉姆，謝謝你的提問。我會直接回答你關於PEO的問題，但也會從更宏觀的角度談談利潤率的問題，因為利潤率涉及很多因素。顯然，我們第一季的利潤率大幅提升。但我們正在努力傳遞一個訊號，這個訊號可能不會持續到年底。成本轉嫁實際上在其中發揮了重要作用。所以——直接回答你的第一個問題，我們在PEO業務中看到的營運規模非常穩健，達到了90個基點。顯然，這超出了我們的長期預期。因此，我們確實看到了效率提升的希望，也希望繼續推進，但對他們來說，這或許是個非常好的季度。

I would caution you to anticipate that type of level of productivity improvements in the long run. But clearly all our businesses need to deliver scale when we're sticking with our own long-term expectations of driving the margin in the Company of 50 to 75 basis points. Now, relative to the performance in this quarter -- you will be able to dissect this once you go through the Q in a little bit more detail, but the pass-through pressure that we had this year because the PEO is growing actually faster than the overall Company was actually depressing ADP's margin by about 85 basis points.

我提醒各位，要預期這種程度的生產力提升需要時間。但顯然，如果我們堅持將公司利潤率提升至50至75個基點的長期目標，所有業務都需要實現規模化。至於本季的業績——您在更詳細地分析季度報告後就能明白——由於PEO業務的增長速度實際上超過了公司整體增長速度，我們今年面臨的成本傳導壓力實際上使ADP的利潤率下降了約85個基點。

Now the pass-through pressure is typically actually higher. If you calculate it as between a 150 and 200 basis points of pressure, we call this a portfolio effect, a lower margin business of PEOs growing faster than ES. This quarter, we were helped because that typical -- that higher margin pressure that the pass-throughs give us abated due to that good renewal. That renewal, we're expecting to grow out of it by the second half of the year. So, that is going to be big contributor to slower margin expansion for the second half of the year.

現在，轉嫁壓力通常實際上更高。如果計算得出壓力在 150 到 200 個基點之間，我們稱之為投資組合效應，即利潤率較低的 PEO 業務成長速度快於 ES 業務。本季度，由於續約情況良好，轉嫁帶來的較高利潤率壓力有所緩解，這對我們有所幫助。我們預計到下半年，續約業務將不再是主要壓力。因此，這將是下半年利潤率擴張放緩的主要原因。

You will also see that -- we mentioned in our call that we had flat sales growth. It's long-standing tradition that if sales are growing slower, our marketing and sales expense is growing slower. So that contributed a chunk of scale that we anticipate clearly per Carlos's discussion, just the prior question, to abate as we accelerate our sales in the second half of the year. Then the scaling of our ACA business plays an important role. Clearly, you're all aware that the revenue stream started really in the second half of the ACA business, while in the first half of last FY16, we made implementation and operational investments to build the business.

您還會注意到—我們在電話會議中提到過，我們的銷售成長停滯不前。長期以來，如果銷售成長放緩，我們的行銷和銷售費用成長也會放緩。因此，這造成了一定程度的規模效應，正如卡洛斯在上一個問題中提到的，我們預計隨著下半年銷售成長的加速，這種效應將會減弱。此外，我們的ACA業務規模擴張也扮演重要角色。顯然，大家都知道，ACA業務的收入真正開始成長是在下半年，而在2016財年的上半年，我們進行了實施和營運方面的投資來發展這項業務。

So we started to see the revenue contribution kick in. The pressure that the building of the ACA business exuded on the business in the first half of last fiscal year has abated. We are reaping the revenue and the business is profitable. So the scaling of the ACA business also had a meaningful impact on the margin expansion this quarter. Clearly, we expect that actually to abate also in the second half of the year because the business started to generate revenue in the second half of last fiscal year.

因此，我們開始看到營收貢獻顯現。上個財年上半年，ACA業務建設對公司帶來的壓力已經緩和。我們正在收穫營收，業務也獲利了。因此，ACA業務的規模化也對本季的利潤率提升產生了顯著影響。顯然，我們預期這種情況在下半年也會有所緩解，因為該業務在上個財年下半年才開始產生營收。

I think just one other comment on the PEO. I think this is -- I don't remember the last time that our PEO worksite employee growth was the same as our revenue growth. So that obviously -- the very first point that Jan made, I think that helps obviously mathematically, it makes it easier for the PEO to achieve greater margin improvement when they have slower pass-through cost growth.

關於PEO，我還有一點要補充。我記得我們PEO員工人數成長與營收成長保持同步是什麼時候的事了。所以，正如Jan所提到的第一點，從數學角度來看，當PEO的成本轉嫁成長速度較慢時，他們更容易實現更高的利潤率提升。

We generally see that as having been in that business for many years, that slower pass-through growth is related to lower healthcare benefit renewals, which is -- should be a very big positive from a competitive standpoint. So as we're hearing, seeing a lot of headlines about increasing health inflation and the discipline that our business has around selling and renewing clients, I think has, as of this last open enrollment for the PEO, led to very, very competitive renewal rates that are having this impact on the revenue growth but it's a very, very big positive for that business.

我們多年來一直從事這個行業，通常認為，收入成長放緩與醫療福利續保率下降有關，從競爭角度來看，這應該是一個非常有利的因素。正如我們經常聽到和看到的那樣，醫療通膨不斷上升，而我們公司在銷售和續保客戶方面所秉持的嚴謹態度，我認為，截至最近一次PEO（專業雇主組織）開放註冊期，已經帶來了極具競爭力的續保率，雖然這對收入增長產生了一定影響，但對這項業務來說卻是一個非常非常積極的信號。

That's helpful color. Thank you. Then maybe just a quick clarification. The client loss in the CHSA business that drove the 100 basis point decline in retention was fairly substantial in terms of overall scale. Can you maybe just give us a little bit of color of whether that's a competitive take-away? Then specifically did that -- is that client a customer of ADP in terms of other service offerings? What's the disposition on those other offerings, if any?

這些資訊很有幫助，謝謝。那麼，或許可以再澄清一下。導致CHSA業務客戶留存率下降100個基點的客戶流失，從整體規模來看相當可觀。您能否簡要說明一下，這是否會影響競爭格局？具體來說，這位客戶是否也使用ADP的其他服務？如果使用，ADP對其他服務的態度如何？

So fortunately, it's easy to talk about it because WageWorks I think is the company who won that account. They won it -- it was one of the factors in our decision to sell the business to them, because we got to know each other as a result of them winning that contract, which is a government contract from the office of personnel management, OPM, which is a government entity. As you know, we don't have a lot of public sector government business.

所以，幸運的是，這件事很容易談，因為我記得是WageWorks公司贏了那份合約。他們贏了——這也是我們決定把業務賣給他們的原因之一，因為我們正是因為他們贏得了這份合約才認識的。這份合約是人事管理辦公室（OPM）的政府合同，而OPM是政府機構。您也知道，我們並沒有很多公共部門的政府業務。

We have some and we like that business but we just don't have a lot of it. We certainly don't have a lot of contracts of that size and that scale with or without the government. So the original genesis of that account was, it came through an acquisition of a company called SHPS that we acquired several years back, where we acquired other benefits administrations assets that we were interested in and this account came with it. With it came the risk of when these contracts get put out to bid, you don't always win.

我們有一些這樣的業務，也喜歡這類業務，但數量不多。無論有沒有政府部門，我們都沒有很多規模如此龐大的合約。這個帳戶最初源自於幾年前我們收購的一家名為SHPS的公司。在那次收購中，我們獲得了其他一些我們感興趣的福利管理資產，這個帳戶也隨之而來。隨之而來的風險是，當這些合約公開招標時，你並非總是能得標。

So we took a calculated risk when we made that acquisition, not just with this account but like with all acquisitions. That was one of the items that came along with that acquisition. But it was also an account that -- I can't remember how many months ago it was, but I believe there was a public release by WageWorks regarding the winning of that account. I think some people speculated that it had come from us. We can now confirm that it did come from us.

所以，我們在進行那次收購時承擔了一定的風險，不僅是這個客戶，所有收購都是如此。這是收購附帶的資產之一。但同時，我也記得幾個月前WageWorks曾公開宣布贏得該客戶的消息。當時有人猜測是我們拿下來的。現在我們可以確認，確實如此。

Thank you.

謝謝。

(Operator Instructions)

（操作說明）

Gary Bisbee, RBC Capital Markets.

Gary Bisbee，加拿大皇家銀行資本市場。

Carlos, you've been talking about the data analytics opportunity and the value in that data you have I guess really since the Investor Day at the beginning of last year. Can you give us a sense how you've since then progressed in terms of figuring out exactly how you will monetize the asset? Are you charging for this separately at the moment? Are you actively trying to sell that as a standalone offering? Or is it really more focused on an add-in to existing customers to help them see more value in ADP and hopefully improve retention?

卡洛斯，你從去年年初的投資者日就開始談論數據分析的機會以及你所掌握數據的價值了。你能跟我們說說，從那時起，你在如何實現這項資產的盈利方面取得了哪些進展嗎？目前你們是單獨收費嗎？你們是否正在積極地將其作為獨立產品進行銷售？還是更專注於將其作為現有客戶的附加功能，幫助他們更好地了解ADP的價值，並希望藉此提高客戶留存率？

For now, we are selling it as an add-in. As I mentioned in my comments, we have 3,200 clients right now. That's obviously a very small number of comparison to the total client base that we have. So we think there's still a lot of opportunity. But we do like to leave our options open in terms of the quote, unquote monetization. Because the one thing it clearly does, it's a big differentiator for us. It's a huge way of creating thought leadership for ADP. Most importantly, it's an incredibly important way of driving value for our clients by helping them run their businesses better.

目前，我們將其作為附加組件進行銷售。正如我在評論中提到的，我們目前有3200位客戶。顯然，與我們整體客戶群相比，這個數字非常小。因此，我們認為仍有很大的發展空間。但我們希望在所謂的「獲利模式」方面保持開放的態度。因為這項功能最顯著的優勢在於，它能為我們帶來巨大的差異化優勢。它能大幅提升ADP的產業領導力。更重要的是，它能幫助我們的客戶更好地經營業務，從而為他們創造價值。

We think there's a number of ways that we could benefit from this, in terms of stronger sales, additional revenue as an add-on module, halo effect in terms of marketing and thought leadership. So I think it's a big winner on a number of fronts, as other analytics and data businesses are for other companies. We're not the only company taking advantage of when you have the scale and you have the data of being able to marshal that to create differentiation and value for clients, I think is a pretty common theme out in the marketplace right now.

我們認為這能為我們帶來許多好處，例如提升銷售額、透過附加模組增加收入、以及在行銷和思想領導方面產生光環效應。因此，我認為這對很多方面來說都是巨大的利好，就像其他分析和數據業務對其他公司一樣。我們並非唯一一家利用規模和數據優勢為客戶創造差異化和價值的公司，我認為這是目前市場上的普遍現象。

Is there a product road map as to other analytics and ways to expand the usefulness of this? I guess, one thing that jumps to mind is a potential risk, are there regulatory issues or concerns or hurdles you have to get over in terms of using data about consumers as either part of the benchmarking or however else it's used in this. Thank you.

是否有關於其他分析功能以及如何擴展其用途的產品路線圖？我想到的一個潛在風險是，在使用消費者資料進行基準測試或其他用途時，是否有監管方面的問題、擔憂或障礙需要克服？謝謝。

That's a very good question. The answer to the first part of the question is, yes, we do have a road map. We have lots of plans and things that we can do to create more benchmarking solutions and more analytics for our clients. Obviously we're not going to talk about those right now. In terms of the second part, so we do have permission, if you will, to use the data from our clients and most importantly the data is anomamized So this data there is no personally identifiable information. It's not necessary in order to create the benchmarking and the analytics and the information that we deliver back to our clients.

這是一個很好的問題。關於問題的第一部分，答案是肯定的，我們確實有路線圖。我們有許多計劃和措施，可以為客戶創建更多基準測試解決方案和分析工具。當然，我們現在不會討論這些。至於問題的第二部分，我們確實獲得了使用客戶資料的許可，最重要的是，這些資料都經過匿名化處理，不包含任何個人識別資訊。建立基準測試、分析工具以及我們提供給客戶的資訊並不需要這些資訊。

So I think we're very sensitive obviously if there's any Company in the world that understands the value of privacy and sensitivity to security, I think it's ADP. We've been very careful over the last several years to make sure that we have the right kinds of approvals and permissions from our clients and also that we are anonamizing the information so that none of the information has things like Social Security numbers or addresses or anything like that. That's generally not necessary to perform some of the analytics that need to be performed.

所以，我認為我們顯然非常重視隱私和安全。如果說世界上有哪家公司真正理解隱私的價值和安全的重要性，我認為非ADP莫屬。過去幾年，我們一直非常謹慎地確保獲得客戶的必要批准和授權，並對資訊進行匿名化處理，確保所有資訊都不包含社會安全號碼、地址等個人資訊。通常情況下，這些資訊對於執行某些必要的分析來說並非必要。

Great. Then just a quick follow-up. On the accounting -- adoption of the new accounting for stock comp taxes, do you expect in the guidance any impact on the rest of the year? Given the variability of that, do you have confidence in that outlook? Or is this something that could be a positive later in the year but it's just hard for you to predict at this point? Thank you.

好的。那麼還有一個後續問題。關於會計處理—採用新的股權激勵稅會計準則，您預計這會對今年剩餘時間產生什麼影響嗎？考慮到其中的不確定性，您對這個預測有信心嗎？或者說，這可能會在今年稍後產生積極影響，但您目前很難預測？謝謝。

Thank you for the question. Because it is quite a big impact that we experienced as a tax benefit for this year. We have taken the stand not to forecast the impact of -- the tax impact of our equity compensation cost for the future quarters because it is dependent on our share price development. It is also dependent on the employee behavior in executing mostly stock options. So our plan is every quarter to let basically that tax benefit fall through to the bottom line. We will update our guidance for the total EPS growth one-on-one as the tax benefit or the tax hurt is incurred. We have done a historic analysis of our performance under these, so to speak, per forma backwards. Historically, we have experienced benefit out of those accounting rules. But there's no guarantee that would continue in the future. We found it too difficult to forecast. So we take it as falling through. You would get the benefit one-on-one in each quarter.

感謝您的提問。因為我們今年確實享受了相當大的稅收優惠。我們決定不對未來幾季的股權激勵成本的稅收影響進行預測，因為這取決於我們的股價走勢，也取決於員工行使股票選擇權的行為。因此，我們的計劃是每個季度都讓這部分稅收優惠直接計入淨利潤。我們會根據實際產生的稅收優惠或稅收損失，逐一更新每股收益成長預期。我們已經對這些會計準則下的業績進行了歷史分析，也就是所謂的「按備考資料回溯分析」。從歷史數據來看，這些會計準則確實為我們帶來了利益，但我們無法保證未來也會如此。我們發現預測起來非常困難，所以我們將其視為稅收優惠的直接影響。每個季度，您都將獲得相應的收益。

Lisa Ellis, Bernstein.

麗莎·艾利斯，伯恩斯坦。

On the service alignment initiative, can you guys just talk a little about how you see the impact of that, both on driving ancillary revenue streams as you I guess move to a team selling model or a team service model, long-term margin improvement and then also any potential disruption in the client relationships as you consolidate people back? What are the puts and takes? How do you see those playing out as you implement the new service alignment model?

關於服務整合計劃，你們能否談談你們如何看待這項計劃的影響？一方面，隨著你們轉向團隊銷售模式或團隊服務模式，這將如何影響輔助收入來源？能否提升長期利潤率？另一方面，隨著人員重組，客戶關係可能會受到哪些潛在影響？這項計劃有哪些利弊？在實施新的服務整合模式的過程中，你們認為這些優缺點會如何體現？

I think you did a very good job of describing some of the puts and takes and some of the potential upside and some of the risks. As you heard from our comments, we did build in what we're calling dual operations costs to avoid the last part that you mentioned, which is transition challenges, if you will. So, we want to make sure that we have people trained and ready before we move work. But there's obviously always you have to manage through that kind of transition risk as well.

我認為您對其中的一些利弊、潛在收益和風險都描述得非常到位。正如您從我們的評論中聽到的，我們確實預留了所謂的“雙重運營成本”，以避免您提到的最後一點，也就是過渡期的挑戰。因此，我們希望確保在工作轉移之前，所有人員都經過培訓並做好準備。但顯然，您也必須應對這種過渡期的風險。

To be clear, this is not -- we're not moving 90% of our associates. We're moving anywhere between 5% and 10% of our associates. So over time, we expect that to have the kind of positive impacts we're talking about in terms of incremental revenue growth, improved service, et cetera. But this is a -- not a one-time overnight dramatic move that is intended to create an enormous amount of risk or frankly, disruption for our associates. Because we have a long history of treating our people right.

需要澄清的是，我們並非要調動90%的員工，而是只調動5%到10%的員工。因此，我們預期隨著時間的推移，這將帶來我們所謂的正面影響，例如收入成長、服務提升等等。但這並非一次性的、一夜之間發生的劇烈變動，我們不會因此為員工帶來巨大的風險或混亂。因為我們一直以來都善待員工。

We have highly tenured associates that have been very loyal to the Company. So, we're being very, very careful and methodical on how we do this and how we communicate to our associates so that we can move on with our business plans but also treat people the right way. But having said all that, the idea as we've said I think previously is to most importantly deliver better integrated service through intact teams of multiple modules of HCM. So the intention would be that there would be a benefit to retention. We don't have a scientific way of forecasting that or telling you when that will happen. It certainly is not expected to happen this year because we're just in the process of getting these places all ramped up and scaled.

我們擁有許多資深員工，對公司非常忠誠。因此，我們在推動業務計劃和與員工溝通方面都非常謹慎和有條不紊，既要確保業務順利進行，又要妥善對待每一位員工。但正如我們之前所說，最重要的是透過整合多個人力資本管理（HCM）模組的完整團隊，提供更完善的整合服務。我們希望這能提高員工留任率。但我們目前沒有科學的方法來預測具體效果，也無法告知您何時能夠實現。可以肯定的是，今年肯定不會出現這種情況，因為我們目前仍在推動這些部門的建設和規模化發展。

Obviously the effect of having better service, a better reputation and being able to cross-sell more easily should have some impact on our ability to sell and on our revenue growth as well. But again, those are hypotheticals that are very hard to forecast. We're certainly not building anything into our forecast for this year. But we're not doing it just to take risk. We're doing it because we see benefits in terms of operational efficiencies, potential retention and potential growth down the line.

顯然，更好的服務、更高的聲譽以及更便利的交叉銷售能力，都會對我們的銷售能力和收入成長產生一定影響。但話說回來，這些都只是假設，很難預測。我們今年的預測當然沒有包含這些因素。但我們這樣做並非為了冒險，而是因為我們看到了這些措施在營運效率、客戶留存率以及未來成長方面的益處。

I might add for our associates it also offers of course a better ability to work in centers that have a defined career path. They are located in areas of the US that we believe give us great access to our associates. So, it will create really also for us as an employer of choice a opportunity to differentiate ourselves in the marketplace.

我還要補充一點，對我們的員工來說，這當然也讓他們有機會在有明確職涯發展路徑的中心工作。這些中心位於美國各地，我們相信這些地區能讓我們更方便地接觸到我們的員工。因此，作為一家優質雇主，這確實也為我們創造了在市場中脫穎而出的機會。

Yes. As Jan was saying, engagement is a very -- associate engagement is an incredibly important part of our success and of any service business' success. I think having large centers with anywhere between 2,000 and 3,000 associates that are able to progress in terms of their careers, move across business units, across different parts of HCM, I think should be a very big positive for us. But again, that's a longer term benefit for the Company.

是的。正如Jan所說，員工敬業度非常重要－員工敬業度是我們成功以及任何服務型企業成功的關鍵因素。我認為，擁有2000到3000名員工的大型中心，並讓他們能夠在職業生涯中不斷晉升，跨業務部門、跨人力資本管理（HCM）的不同領域輪崗，這對我們來說無疑是一件非常積極的事情。但再次強調，這對公司而言是更長遠的益處。

Got it. Okay. Then just as a quick follow-up, can you give us an idea of -- one thing you don't comment on very frequently is what the retention dynamics are within the PEO. On one hand, I know that the average client size there is smaller, so you're more likely to lose just from companies going out of business. But on the other hand, I don't know why, once you join the PEO, why would you ever leave?

明白了。好的。那麼，我再補充一個問題，您能否談談您很少提及的一點，那就是PEO（專業雇主組織）內部的客戶留存情況。一方面，我知道PEO的客戶規模通常較小，因此更容易因為公司倒閉而流失客戶。但另一方面，我不明白，一旦加入PEO，為什麼還要離開？

The PEO average client size is now slightly below 50, actually, so around 40, I believe, I'm looking at Christian, around 40 employees. It has ticked up a little bit. I think this has been partially driven of course by the dynamic over the last few years, where we added slightly larger clients to the PEO because it offers a great answer on compliance and probably partially a little bit aided by the dynamics of the Affordable Care Act. I'm happy to report that the PEO exhibits great retention rates. They have been actually improving over time. I'm looking at Christian -- if I say they did have record retention this quarter, so they're doing well.

PEO的平均客戶規模現在略低於50人，實際上，大約在40人左右。我指的是Christian公司，他們大約有40名員工。這個數字略有上升。我認為這部分原因當然是過去幾年的發展動態，我們為PEO增加了規模稍大的客戶，因為PEO在合規性方面提供了很好的解決方案，而且可能也部分得益於《平價醫療法案》的實施。我很高興地報告，PEO的客戶留存率非常高。事實上，他們的留存率一直在穩步提升。就拿Christian公司來說——如果我說他們本季的客戶留存率創下了歷史新高，那麼他們的業績確實不錯。

Bryan Keane, Deutsche Bank.

Bryan Keane，德意志銀行。

Just noticed, Carlos, in your comments you were talking about the strategic cloud platforms having a positive impact on your business. I'm just curious of what percent you are complete migrating clients to these cloud platforms now?

卡洛斯，我剛才注意到你在評論中提到策略性雲端平台對你的業務產生了積極影響。我很好奇，你現在將客戶遷移到這些雲端平台的進度完成了多少？

Again, we do look at it by segment because you do have to be careful about units versus revenue, right? Two things are important. So, if you look at it based on units, we're almost 90% migrated. But that's mainly because we moved all of our clients onto our RUN platform in the down-markets. So, from a revenue standpoint, we're a little bit less than half I think of the revenues for the Company. So if you look at it by segment, we're done in the down-market. I think we are -- should be done by the end of this fiscal year.

再次強調，我們按業務板塊來分析，因為必須謹慎看待銷售量和收入之間的關係，對吧？有兩點很重要。如果以銷售量來看，我們的遷移率接近90%。但這主要是因為我們在市場低迷時期將所有客戶都遷移到了我們的RUN平台。所以，從收入的角度來看，我們目前的遷移率還不到公司總收入的一半。因此，如果以業務板塊來看，我們在市場低迷時期的遷移工作已經完成。我認為我們應該在本財年結束前完成。

I think that's consistent with what we've said in the past, that we're on track. We're saying it now -- that we're on track to have our mid-market clients on our WFN current version platform by the end of this fiscal year or within a month or two after that. Then when you move up into the up-market, we have migrated some clients over to Vantage. We have plans underway to continue those migrations. But those are literally one at a time, whereas in the down-market can and then in RUN, there were just large groups of clients that would migrate every week.

我認為這與我們過去所說的一致，即我們正按計劃推進。我們現在也重申這一點——我們正按計劃推進，確保我們的中端市場客戶在本財年結束前或之後一兩個月內都能使用我們最新的WFN平台。至於高端市場，我們已經將一些客戶遷移到了Vantage平台。我們正在製定計劃，繼續推進這些遷移工作。但高端市場的客戶只能逐一遷移，而低端市場和RUN專案則不同，之前每週都有大量客戶進行遷移。

In the up-market, it's one at a time, talking to each client individually, creating a schedule and creating a path. But we have done migrations. We will continue to do migrations in the up-market but that will take considerably longer than what we did in our down-market business, which took us probably over the course of two to three years to migrate all of those clients.

在高端市場，我們採取一對一的方式，與每位客戶單獨溝通，制定計劃和方案。但我們也做過系統遷移。我們會繼續在高端市場進行系統遷移，但這將比我們在低端市場業務中花費的時間要長得多——我們當時可能花了兩到三年才完成所有客戶的遷移。

So we're very happy with the progress. We believe that when we migrate our clients we create a more defensible, bigger moat against competition. We believe that it creates an opportunity for us to sell additional products and services. We believe it strengthens our relationships with our clients. Most importantly, we think it's the right thing for our clients. So we're still on track and we're continuing to move ahead.

我們對目前的進展非常滿意。我們相信，客戶遷移後，我們就能建構更堅固、更強大的競爭障礙。我們相信，這能為我們創造銷售更多產品和服務的機會。我們相信，這能加強我們與客戶的關係。最重要的是，我們認為這對客戶來說是正確的選擇。因此，我們仍在按計劃推進，並將繼續前進。

Okay. No, I appreciate the update. Then just as a follow-up, retention was down I think 1 point last year in FY16. If you ex out the divested acquisitions, does it make any difference to that retention number?

好的。不，感謝您的更新。另外，我想問一下，2016財年（2016財年）的員工留存率下降了1個百分點。如果剔除已剝離的收購業務，這個留存率會有什麼改變嗎？

Too small to have an impact. The divestiture really has no impact one way or the other.

規模太小，不足以產生影響。這次資產剝離其實沒有任何影響。

So, it was kind of an unusual one-time client loss that caused this (multiple speakers) --

所以，造成這種情況的原因，是一次比較特殊的、一次性的客戶流失（多位發言人）——

This was one large client loss. We typically don't have clients of this size. We pointed out, because it is a non-strategic asset and in the public space, so it was really -- this is very unique situation for us.

這是一次重大的客戶流失。我們通常不會遇到這麼大的客戶。我們指出，因為這是非戰略性資產，而且是公共領域的資產，所以這對我們來說確實是一個非常特殊的情況。

Again, I think we have -- this is disclosed in our 10-K and in our once a year. I don't believe we have another client that represents that size revenue for us.

再次強調，我認為我們有——這一點在我們的10-K報告和年度報告中都有披露。我不認為我們還有其他客戶能為我們帶來如此龐大的收入。

Okay. Helpful. Thanks so much.

好的，很有幫助，非常感謝。

Jeff Silber, BMO Capital Markets.

Jeff Silber，BMO資本市場。

Just a couple of quick questions. I noticed your cash flow from operations was fairly sizable, a nice increase on a year-over-year basis. Were there some timing issues going on either this year or last year? How should we expect the quarters to kind of play out for the rest of the year? Thanks.

我有幾個問題想請教一下。我注意到你們的經營活動現金流相當可觀，比去年同期成長顯著。請問今年或去年是否存在一些時間上的問題？我們該如何預測今年剩餘幾季的業績走勢？謝謝。

I'm excited that we get a cash flow question, we rarely do get one. You're already also giving the right answer. If you dig a little deeper into our operational cash flows, you'll see a large swing in our accounts receivables on our balance sheet. This is driven mostly due to accounts receivable change in the PEO business and has rectified itself already. If you adjust for a number of one-time items in this, cash flows are expected to really grow in line with our operating results. So it could be these timing issues on accounts receivable here and there, but in the long-run cash flows develop really very nicely in line with our operating performance.

很高興我們能收到關於現金流的問題，這方面我們很少遇到。您已經給出了正確的答案。如果您深入分析我們的營運現金流，您會發現資產負債表上的應收帳款出現了大幅波動。這主要是由於PEO業務的應收帳款變化所造成的，目前已經得到糾正。如果剔除其中的一些一次性項目，預計現金流將與我們的經營績效同步成長。因此，雖然應收帳款方面可能存在一些時間上的問題，但從長遠來看，現金流會隨著我們的經營業績而穩定成長。

Okay, great. That's helpful. I know some of the other business services and staffing related companies have been talking about some client uncertainty in terms of making decisions. I'm just curious if you've been seeing any of that?

好的，太好了。這很有幫助。我知道其他一些商業服務和人力資源公司也提到客戶在做決定方面存在一些不確定性。我只是好奇你是否也遇過這種情況？

I'm not sure how you measure that. I think we know that for example in FY11, when we had government shutdowns and so forth -- we hesitate to answer the question because we don't have any way of really measuring that. But intuitively, we know that large events do sometimes impact particularly up-market decision making and so forth. So is the election having some kind of impact? You'll have to stay tuned for our next quarter call that we will be able to tell you with the benefit of hindsight, whether or not we experienced some of that. So, very hard to measure. But we have to acknowledge that large events and large uncertainties do sometimes create uncertainties in the market.

我不太確定該如何衡量這一點。例如，我們知道在2011財年，政府停擺等等——我們不願回答這個問題，因為我們沒有辦法真正衡量它的影響。但憑直覺，我們知道重大事件有時確實會影響市場決策，尤其是那些高估值的決策。那麼，選舉是否產生了某種影響呢？請關注我們下一季的電話會議，屆時我們將能夠回顧過去，告訴您我們是否經歷了某些影響。所以，這很難衡量。但我們必須承認，重大事件和巨大的不確定性有時確實會為市場帶來不確定性。

Yes, I guess what they've been saying is that they've been seeing some delays in terms of new business sign-up. I thought maybe you'd seen some of that impact on your bookings, not necessarily just the tough comparisons versus last year.

是的，我猜他們說的是新業務註冊方面出現了一些延遲。我以為你們的預訂量可能也受到了一些影響，不僅僅是和去年同期相比比較低迷而已。

Through the first quarter, the answer would be, if you exclude -- again, this is also not scientifically easy to do because we sold so much additional modules related to -- not just ACA, but related to ACA, so benefits, administration, et cetera. But if you look at our sales results and take a general swag at if you took out -- if you could somehow back out the ACA sales from last year, we had I would say good sales results for the quarter.

第一季的答案是，如果排除——當然，這在科學上也不容易做到，因為我們銷售了大量與ACA相關的附加模組——不僅僅是ACA，而是與ACA相關的福利、管理等等。但如果你看一下我們的銷售業績，並大致估算一下，如果能把去年ACA相關的銷售額剔除出去，我認為我們第一季的銷售業績相當不錯。

So I would say that through the first quarter the answer would be, we didn't see a lot of that but I think you should be -- you should not hear in my comments any level of confidence that there isn't that happening. Because large events like we saw with the 2011 and -- there were a couple of budget battles and a couple of issues around government shutdown and so forth that it did seem that there were some kind of delays in terms of decision making in the marketplace. But back then and today, we have no you way of measuring that other than anecdotal stories.

所以，就第一季而言，答案是：我們並沒有看到太多這種情況。但我認為，你不應該從我的評論中聽到任何關於這種情況不會發生的自信。因為像2011年那樣的重大事件——當時出現了幾場預算之爭，以及一些政府停擺問題等等——確實導致市場決策出現了一些延誤。但無論當時還是現在，除了零星的傳聞之外，我們都沒有其他方法來衡量這種情況。

Okay. I know it's a tough question to answer, I appreciate you taking a stab at it. Thanks.

好的。我知道這個問題很難回答，感謝你試著回答。謝謝。

Thank you.

謝謝。

Mark Marcon, Baird.

馬克馬爾孔，貝爾德。

Just with regards to majors, how many more clients do you still have to transition? How would you characterize those clients as they're coming up along the tail end? Are they more likely to go through a smooth transition? Or are they more inclined to be kind of the types that would take a look at other alternatives?

就大型企業而言，您還有多少客戶需要過渡？您如何描述這些即將完成過渡的客戶？他們更有可能順利過渡嗎？還是他們更傾向於考慮其他替代方案？

It's a great question. I think the -- as usual, the answer is I think it's mixed in terms of -- we have a lot more experience obviously now in migrating clients, in particular, the experience we developed last year, when our volumes of upgrades almost doubled as we were trying to move clients over to the new platform in order to be able to give them the ACA product. That really created an enormous amount of learning opportunity for us in terms of how to do it better and how to do it at scale and what not to do around these upgrades. Because they're intended to be a positive and to create a better experience and a better -- and deliver a better product to the client.

這是一個很好的問題。我認為——和往常一樣，答案是喜憂參半——我們現在在客戶遷移方面顯然積累了更多經驗，尤其是去年，為了將客戶遷移到新平台以便為他們提供ACA產品，我們的升級量幾乎翻了一番。這確實為我們提供了大量的學習機會，讓我們了解如何做得更好、如何大規模地升級，以及在升級過程中應該避免哪些錯誤。因為升級的目的是為了帶給客戶正面的體驗，並提供更好的產品。

So I think on one side of the scale, you would say huge -- we have an enormous amount of body of knowledge now on how to do this better. On the other side of the scale, human nature is such that no one consciously does this. When you go through these types of events, you realize, it looks like we have some of the toughest ones waiting towards the end. Because there might be clients for example that we approach and ask them to upgrade and they say, well, I don't want to do it now. Call me in quarter. We are getting to the point now where we're going to have to migrate them or upgrade them. So we probably have some of that as well. I don't think there's an enormous amount of that.

所以我覺得一方面，可以說我們累積了非常豐富的知識，知道如何做得更好。另一方面，人性使然，沒有人會主動去做這件事。當你經歷這類事件時，你會發現，最棘手的問題似乎都集中在最後階段。例如，我們可能會聯絡一些客戶，請他們升級，但他們卻說：「我現在不想升級，等季度末再說吧。」但現在我們不得不幫他們遷移或升級系統了。所以，我們可能也會遇到一些這樣的問題。不過，我認為這類問題不多。

It's not like we only have the hard ones left and they ones that didn't want to go. Just being realistic in the sense that -- and also deferent to our associates who have still a lot of hard work ahead of them over the next three quarters or so, because it's not going to be -- it's not going to be easy getting across the finish line. But our volumes now are at a more manageable level where I think we're doing a much higher quality job. So we feel good about our ability to do it but your questions are I think fair and I think the answer is the scales are balanced.

並不是說我們只剩下那些難纏的對手和那些不願離開的對手了。我們只是實事求是地看待這個問題——同時也要體諒我們的同事，他們在接下來的三個季度左右仍然有很多艱苦的工作要做，因為要完成目標絕非易事。但我們現在的業務量已經處於一個更易於管理的水平，我認為我們能夠提供更高品質的服務。所以我們對完成任務的能力充滿信心，但我認為你的問題很合理，答案是目前情況是平衡的。

Okay, I appreciate the answer. Then with regards to the -- to Vantage, how well positioned is that now for -- like once you get you through this and you're going through the next stage of transitions, do you feel good about that solution as it currently stands? I know you're always innovating, always optimizing. Is it matters or degree or is it -- in terms of getting it to exactly where you want?

好的，感謝您的解答。那麼關於Vantage，您覺得它目前的狀況如何？例如，一旦您順利度過這一階段，進入下一階段的過渡期，您對目前的解決方案是否滿意？我知道您一直在創新，一直在優化。您更重視的是優化的程度，還是最終能否達到理想的效果？

Well, to put it in perspective, we have about double the number of clients. I think it's up to 270 or 280, somewhere in that range at the end of this quarter versus same period last year. So I think that tells you something.

嗯，這麼說吧，我們的客戶數量大約是去年同期的兩倍。我想本季末應該有270或280個客戶，差不多在這個範圍內，而去年同期是這個數字。所以我覺得這說明了一些問題。

Yes, it's great.

是的，太棒了。

We would have liked it to have been higher by now. I think we're still growing well. We had good growth in the quarter in terms of Vantage. I think that in terms of the product itself, we're pretty happy with the progress we've made, particularly over the last two or three releases. We've had -- again, we get a lot of metrics and a lot of data around stability and other factors, defects, et cetera, and we've made a lot of progress. So it feels like the trajectory is in a positive direction for vantage, not just growth wise but I think in terms of the underlying metrics that we measure around quality and stability.

我們原本希望這個數字能再高。我認為我們目前的成長動能依然良好。 Vantage 在本季實現了不錯的成長。就產品本身而言，我們對所取得的進展相當滿意，尤其是在最近兩三個版本中。我們收集了大量關於穩定性、缺陷等指標和數據，並取得了顯著的進展。因此，Vantage 的發展軌跡似乎正朝著正面的方向發展，不僅體現在成長方面，也體現在我們衡量的品質和穩定性等各項基礎指標上。

Thank you. This concludes our Q&A session for today. I am pleased to hand the program over to Carlos Rodriguez for closing remarks.

謝謝。今天的問答環節到此結束。我很高興將節目交給卡洛斯·羅德里格斯先生，請他致閉幕詞。

We thank you all for joining our call today. As you can tell, we got off to a really good start. On top of the great results, we're incredibly happy about the positive recognition we're getting in the marketplace. As you heard from some of my comments. It really helps us in terms of our thought leadership in the market. I think the investments we're making and our innovation efforts and also our simplification of our portfolio and aligning them to our service model. I think are going to yield great results for us. I think we have a lot of confidence in our ability to execute against those plans.

感謝各位今天參加我們的電話會議。如大家所見，我們開局非常順利。除了取得的優異成績外，我們也非常高興在市場上獲得了正面的認可。正如我剛才所說，這確實有助於提升我們在市場上的思想領導。我認為我們正在進行的投資、創新舉措以及產品組合的簡化和與服務模式的契合，都將為我們帶來豐碩的成果。我們對執行這些計劃的能力充滿信心。

The last thing I want to do is just acknowledge our associates. We had a very tough year last year. I know I said it last quarter, but we had a challenging year. We really appreciate all the efforts to continue to deliver great service to our clients. The commitment that our service associates have to our clients is unmatched. It's one of the great strengths of ADP. So I just want to acknowledge them and give them my appreciation. I also want to thank all of you for joining us today. Thank you for your interest in ADP.

最後，我想特別感謝我們的同事。去年我們經歷了非常艱難的一年。我知道上個季度我也說過，但我們確實面臨許多挑戰。我們衷心感謝大家為持續為客戶提供優質服務所付出的努力。我們服務人員對顧客的奉獻精神是無與倫比的，這也是ADP的一大優點。因此，我只想對他們表示感謝。同時，我也要感謝各位今天蒞臨現場。感謝大家對ADP的關注。

Thank you, ladies and gentlemen. That does conclude today's conference. You may all disconnect. Everyone, have a great day.

謝謝各位。今天的會議到此結束。大家可以斷開連線了。祝大家今天過得愉快。