自動資料處理 (ADP) 2023 Q1 法說會逐字稿

Good morning. My name is Michelle, and I'll be your conference operator. (Operator Instructions) At this time, I would like to welcome everyone to ADP's First Quarter 2023 Earnings Call. I would like to inform you that this conference is being recorded. (Operator Instructions) I will now turn the conference over to Mr. Danyal Hussain, Vice President, Investor Relations. Please go ahead.

早上好。我的名字是米歇爾，我將成為您的會議接線員。 （操作員說明）此時，我想歡迎大家參加 ADP 2023 年第一季度財報電話會議。我想通知您，本次會議正在錄製中。 （操作員說明）我現在將會議轉交給投資者關係副總裁 Danyal Hussain 先生。請繼續。

Thank you, Michelle, and welcome, everyone to ADP's First Quarter Fiscal 2023 Earnings Call. Participating today are Carlos Rodriguez, our CEO; Maria Black, our President; and Don McGuire, our CFO. Earlier this morning, we released our results for the quarter. Our earnings materials are available on the SEC's website and our Investor Relations website at investors.adp.com, where you will also find the investor presentation that accompanies today's call.

謝謝你，米歇爾，歡迎大家參加 ADP 2023 財年第一季度財報電話會議。今天參加的有我們的首席執行官 Carlos Rodriguez；我們的總裁瑪麗亞·布萊克；和我們的首席財務官 Don McGuire。今天早上早些時候，我們發布了本季度的業績。我們的收益材料可在 SEC 網站和我們的投資者關係網站 Investors.adp.com 上找到，您還可以在其中找到今天電話會議隨附的投資者介紹。

During our call, we will reference non-GAAP financial measures, which we believe to be useful to investors and that exclude the impact of certain items. A description of these items, along with a reconciliation of non-GAAP measures to the most comparable GAAP measures, can be found in our earnings release. Today's call will also contain forward-looking statements that refer to future to events and involve some risk. We encourage you to review our filings with the SEC for additional information on factors that could cause actual results to differ materially from our current expectations. And with that, let me turn it over to Carlos.

在我們的電話會議中，我們將參考非公認會計原則財務指標，我們認為這些指標對投資者有用，並且排除了某些項目的影響。這些項目的描述，以及非 GAAP 措施與最具可比性的 GAAP 措施的對賬，可以在我們的收益發布中找到。今天的電話會議還將包含前瞻性陳述，這些陳述涉及未來事件並涉及一些風險。我們鼓勵您查看我們向 SEC 提交的文件，以獲取有關可能導致實際結果與我們當前預期產生重大差異的因素的更多信息。有了這個，讓我把它交給卡洛斯。

Thank you, Danny, and thanks, everybody, for joining the call. As you saw this morning in the news, we have a little bit more excitement than normal, but I promise you that 1.5 hours from now, we'll go back to our boring selfs because we do have a business to run.

謝謝你，丹尼，也謝謝大家加入電話會議。正如你今天早上在新聞中看到的那樣，我們比平時更興奮，但我向你保證，從現在起 1.5 小時後，我們會回到無聊的自我，因為我們確實有生意要經營。

But before I talk about the quarter, I thought it was appropriate to just share a few thoughts given the transition from me to Maria as our new CEO, as you know, I'm going to continue as Exec Chair, but obviously, that's going to be a role primarily to supporting Maria and also helping the Board and not really involved in day-to-day operations.

但在我談論本季度之前，我認為鑑於從我到 Maria 作為我們的新 CEO 的過渡，我認為分享一些想法是合適的，如你所知，我將繼續擔任執行主席，但顯然，這是主要是支持 Maria 並幫助董事會，而不是真正參與日常運營。

So it's definitely going to be my last earnings call, which is hard to say because there's been 44 earnings calls for me. But truly been an incredible ride. Obviously, I could thank a lot of people, one person in particular that I do want to call out is John Jones, who is going to remain our lead Independent Director. And the combination of John and [Les Brun] before him were incredible mentors to me, incredibly helpful in providing advice and guidance on behalf of the Board. And I also -- I'm proud to call them friends. And I also want to thank Gary Butler and (inaudible), my predecessors who gave me the opportunity to be here today and also help me a lot in terms of making you the person I am and the leader that I am today.

所以這肯定是我最後一次財報電話會議，這很難說，因為我有 44 次財報電話會議。但確實是一次令人難以置信的旅程。顯然，我要感謝很多人，我特別想提到的一個人是約翰·瓊斯，他將繼續擔任我們的首席獨立董事。約翰和 [Les Brun] 在他之前的組合對我來說是不可思議的導師，在代表董事會提供建議和指導方面非常有幫助。我也 - 我很自豪地稱他們為朋友。我還要感謝加里·巴特勒（Gary Butler）和（聽不清）我的前任，他們讓我有機會今天來到這裡，並在使您成為今天的我和領導者方面幫助了我很多。

I'm proud of a couple of things. I'll just mention a few. One of them is I'm proud of our growth. We doubled our revenues over the last 10 or 11 years. And today, as you know, we reached an important milestone of a million clients. So I appreciate -- I wish I could say that it was anything other than a coincidence. But however it happened, it's a great thing to have happened here on my last earnings call.

我為幾件事感到自豪。我只提幾個。其中之一是我為我們的成長感到自豪。在過去的 10 年或 11 年中，我們的收入翻了一番。如您所知，今天，我們達到了一百萬客戶的重要里程碑。所以我很感激——我希望我能說這不是巧合。但不管發生了什麼，在我上次的財報電話會議上發生了一件好事。

We made it through a lot of challenges, economic. We went through, what I would call, financial repression in terms of interest rates, which fortunately now, we have a little bit of the opposite situation, which we'll talk about today. So there's many QEs. I think there were 3 QEs over my tenure. And then the final straw that almost broke the camel's back was interest rates. Even on the 10-year going, I think it was like under 0.5% in the pandemic, which was really kind of incredible to see happen. We also made it through a pandemic that hopefully only happens every 100 years, and we had some dissident shareholders that also had some opinions about how to run ADP that we had to deal with.

我們克服了很多挑戰，經濟上的。我們經歷了，我稱之為利率方面的金融抑制，幸運的是，現在我們遇到了一些相反的情況，我們將在今天討論。所以有很多量化寬鬆。我認為在我的任期內有 3 次 QE。然後幾乎壓垮駱駝的最後一根稻草是利率。即使在過去的 10 年中，我認為在大流行中它也低於 0.5%，這真是令人難以置信。我們還度過了一場希望每 100 年才發生一次的大流行，我們有一些持不同政見的股東，他們也對我們必須應對的如何運營 ADP 有一些看法。

I'm also proud of our associates. I'm proud they've always said about their commitment to our clients and to ADP. There's something that my predecessors and the culture have around our client centricity, which is really remarkable, and our associates always step up to the plate and deliver in a business that, again, we don't get a lot of credit, and I know that we're not quite up there in terms of the list of first responders and people who save lives. But we do keep the economy going, and we do, I think, make sure that commerce worldwide operates smoothly.

我也為我們的同事感到自豪。我很自豪他們總是說他們對我們的客戶和 ADP 的承諾。我的前任和文化圍繞著我們以客戶為中心，這真的很了不起，我們的員工總是挺身而出，在一個業務中交付，再一次，我們沒有得到很多榮譽，我知道就第一響應者和拯救生命的人而言，我們的名單還不夠高。但我們確實讓經濟繼續發展，而且我認為，我們確實確保全球商業運作順利。

So our associates are the ones who get that done, and I'm proud of them. The person I'm most proud of is Maria. She's now been tested. She's prepared. She's been through a very thoughtful and long succession process, and she's going to be the what it meant was only the seventh CEO of ADP. And I know that she's the right person starting from the ground up. I wish I could have said that because that's what makes us special, this place is special. We love to bring in talent from the outside but we have some incredible people that grow up and know this place, understand this place and know how to make it continue to hum the way it's been humming for more than 70 years.

所以我們的同事是完成這項工作的人，我為他們感到驕傲。我最自豪的人是瑪麗亞。她現在已經接受了測試。她準備好了。她經歷了一個非常周到和漫長的繼任過程，她將成為 ADP 的第七任 CEO。我知道她是從頭開始的合適人選。我希望我能這麼說，因為這就是我們的特別之處，這個地方很特別。我們喜歡從外部引進人才，但我們有一些令人難以置信的人長大後了解這個地方，了解這個地方並知道如何讓它繼續嗡嗡作響，就像它 70 多年以來的嗡嗡聲一樣。

Most importantly, she not only knows our industry, but she knows our clients' needs deeply and takes great interest in that. And that is going to serve us well as well as her growth orientation, which I think is going to be very important for ADP's future.

最重要的是，她不僅了解我們的行業，而且深入了解客戶的需求，並對此非常感興趣。這對我們以及她的成長方向都有好處，我認為這對 ADP 的未來非常重要。

Last thing I'll say is that I recently told our team at a senior meeting that I tried -- I strive to be what I learned about many, many years ago, something called a servant leader. And I tried to be that way to my team and to my organization here at ADP. But I want all of you to know that I tried to be that also to all of you and to our shareholders, as much as I tried to be that way for our clients and our associates. It's been truly an honor of a lifetime to serve at ADP's CEO. And we are kind of a company that likes to fly under the radar. We kind of like it that way. So I know that nobody is going to write any books about us or they may not be even writing articles about us today, but this is one of the most successful commercial enterprises in history. All I have to do is go back and look at the track record. Most people don't do that. They don't go back and look at the 10-year to 20-year and, in our case, the 50 year. The company went public in 1961. I encourage you to look at our history, our results and our TSR and compare it to some of the greatest investors and investments of all time. And I think you'll see that ADP ranks right up at the top.

我要說的最後一件事是，我最近在一次高級會議上告訴我們的團隊，我嘗試過——我努力成為我在很多很多年前學到的東西，稱為僕人式領導。我試圖以這種方式對待我的團隊和我在 ADP 的組織。但我希望你們所有人都知道，我試圖對你們所有人和我們的股東也如此，就像我試圖對我們的客戶和我們的同事那樣。在 ADP 的 CEO 任職確實是一生的榮幸。我們是一家喜歡在雷達下飛行的公司。我們有點喜歡這樣。所以我知道沒有人會寫任何關於我們的書，或者他們今天可能甚至不會寫關於我們的文章，但這是歷史上最成功的商業企業之一。我所要做的就是回去看看往績記錄。大多數人不這樣做。他們不會回頭看 10 年到 20 年，在我們的例子中，是 50 年。該公司於 1961 年上市。我鼓勵您看看我們的歷史、我們的業績和我們的 TSR，並將其與一些有史以來最偉大的投資者和投資進行比較。我想你會看到 ADP 名列前茅。

Anybody who knows me knows how much I love sports and how -- what a sportsman I am. So I was trying to think of an analogy. And I feel like not only did I join the championship team, but I won the Super Bowl being here at ADP. It's really been an incredible, incredible ride.

任何認識我的人都知道我是多麼熱愛運動以及如何——我是一個多麼熱愛運動的人。所以我試圖想一個類比。而且我覺得我不僅加入了冠軍球隊，而且在 ADP 贏得了超級碗。這真的是一次不可思議的、不可思議的旅程。

But right now, it's time to pass the torch. It's always great to have change, especially in a company like ADP because I know you can rely on our consistent, predictable results, but we also have to continue to grow for decades to come. And the only way to do that is to bring in fresh thinking and to have change. And that's exactly what we're doing with Maria. So before I talk about the quarter and the results, I'm going to turn it over to Maria and let her say a few things.

但現在，是傳遞火炬的時候了。改變總是很棒，尤其是在像 ADP 這樣的公司，因為我知道您可以依賴我們一致、可預測的結果，但我們還必須在未來幾十年繼續發展。而做到這一點的唯一方法就是引入新的思維並做出改變。這正是我們對瑪麗亞所做的。所以在我談論這個季度和結果之前，我要把它交給瑪麗亞，讓她說幾句話。

Thank you, Carlos. You mentioned servant leadership, and I have to say that you are truly the embodiment of servant leadership. You have always kept our North Star true, which is putting our clients and our associates first. And I know I speak on behalf of all of our stakeholders, our associates, our shareholders, the communities we serve and the 1 million clients now we have the honor of serving and thanking you for everything that you've done over the decade that you served as our CEO. So my sincere thank you to you, Carlos. .

謝謝你，卡洛斯。你提到了僕人式領導，我不得不說你是僕人式領導的真正體現。您始終保持我們的北極星真實，這將我們的客戶和我們的員工放在首位。我知道我代表我們所有的利益相關者、我們的員工、我們的股東、我們服務的社區和 100 萬客戶現在我們有幸為您服務並感謝您在過去十年中所做的一切擔任我們的首席執行官。所以我真誠地感謝你，卡洛斯。 .

I'm truly humbled and grateful for this opportunity and certainly for the confidence, Carlos that you've given me and that the Board has given me and entrusted me with this role. I am genuinely thrilled to lead ADP. You mentioned it, and it's true. I did start from the ground up. I started with this company 26 years ago, selling ADP's products and offering store-to-door. This ability to really see our clients from the front line has given me a vision and a true understanding of the client centricity that you mentioned that we embody as a company. And since selling 26 years ago door to door, I've served in roles all across ADP in sales and service, implementation, operations, including our PEO and SBS. I'm really, really proud of the role that we play in our clients' lives and how they trust us to really help them succeed in their HCM journey.

對於這個機會，我真的很謙卑和感激，當然也感謝卡洛斯給我的信心，以及董事會給我並委託我擔任這個角色的信心。我真的很高興能領導 ADP。你提到了它，這是真的。我確實從頭開始。 26 年前，我開始在這家公司工作，銷售 ADP 的產品並提供門店到門服務。這種從第一線真正看到我們的客戶的能力使我對您提到的我們作為一家公司所體現的以客戶為中心有了一個遠見和真正的理解。自從 26 年前挨家挨戶銷售以來，我在整個 ADP 的銷售和服務、實施、運營部門擔任過職務，包括我們的 PEO 和 SBS。我為我們在客戶生活中所扮演的角色以及他們如何相信我們能夠真正幫助他們在 HCM 之旅中取得成功感到非常非常自豪。

For the last 73 years, we've had an amazing legacy and a culture. And that culture is really anchored in innovation and it's anchored in developing and providing technology and solutions that help address our clients' needs but also help address the other needs of their workers. And I'm incredibly proud to be a part of that journey as we continue the modernization that we've been undergoing over the last few years.

在過去的 73 年裡，我們擁有令人驚嘆的遺產和文化。這種文化真正植根於創新，植根於開發和提供技術和解決方案，這些技術和解決方案有助於滿足客戶的需求，同時也有助於滿足員工的其他需求。我非常自豪能成為這一旅程的一部分，因為我們將繼續我們在過去幾年中所經歷的現代化。

Of course, as you mentioned, none of this is possible without the 60,000 dedicated associates that we have that are at the center of absolutely everything that we deliver. I am committed to continuing to empower their great talent, which time and time again has reshaped the HCM industry through a relentless focus on again, solving our clients' needs and predicting their future needs.

當然，正如您所提到的，如果沒有我們擁有的 60,000 名敬業的員工，這一切都是不可能的，他們絕對是我們交付的一切的核心。我致力於繼續賦予他們優秀的人才，通過再次不懈地關注、解決我們客戶的需求並預測他們的未來需求，這一次又一次地重塑了 HCM 行業。

I'm also grounded by our history and our own beginning as a small business out of Paterson, New Jersey, founded by Henry Taub, a man who simply wanted to help local businesses. Then and now, I know and I feel deeply that this core value continues to define us as a company.

我還對我們的歷史和我們自己作為新澤西州帕特森市的一家小企業的開端奠定了基礎，該企業由亨利陶布創立，他只是想幫助當地企業。過去和現在，我深知並深感這一核心價值繼續將我們定義為一家公司。

So with that, thank you again, Carlos, and thank you to the Board. And now I will thank you in advance to all of our stakeholders in your confidence as we continue to build on ADP's incredibly strong results-oriented foundation. We continue to drive product innovation, leading technology. And more than anything, we continue to deliver the consistent value creation that we're known for as the leader in the HCM industry. So with that, I think it's appropriate to turn it over to the results this quarter.

因此，再次感謝卡洛斯，感謝董事會。現在，我要提前感謝所有利益相關者對我們的信任，因為我們將繼續在 ADP 以結果為導向的強大基礎上繼續發展。我們不斷推動產品創新，技術領先。最重要的是，我們將繼續提供我們作為 HCM 行業領導者而聞名的一致的價值創造。因此，我認為將其移交給本季度的結果是合適的。

Thanks, Maria. Speaking of consistent value creation, let me start talking a little bit about the results here so we can get to the questions. We got off to a really strong start in fiscal 2023, with strong results that reflected the momentum we've been building for several quarters now. In Q1, we delivered 10% revenue growth, 11% on an organic constant currency basis, and this was driven by strength in a number of our businesses. And on top of that, we delivered 30 basis points of adjusted EBIT margin expansion as our revenue outperformance helped us overcome elevated expense grow over from last year's first quarter as well as continued investments in the business, which we anticipated and communicated to you last quarter. .

謝謝，瑪麗亞。說到持續的價值創造，讓我開始談談這裡的結果，這樣我們就可以解決問題了。我們在 2023 財年的開局非常強勁，強勁的業績反映了我們已經建立了幾個季度的勢頭。在第一季度，我們實現了 10% 的收入增長，在有機固定貨幣基礎上增長了 11%，這得益於我們多項業務的實力。最重要的是，我們實現了 30 個基點的調整後息稅前利潤率增長，因為我們的收入表現出色幫助我們克服了比去年第一季度更高的費用增長以及對業務的持續投資，這是我們上個季度預期並傳達給您的. .

We delivered 13% adjusted EPS growth in the quarter, and we remain well positioned as we move ahead for the rest of the year. I'll cover a few highlights for the quarter before I turn it back over to Maria.

我們在本季度實現了 13% 的調整後每股收益增長，並且在今年餘下的時間裡我們仍然處於有利地位。在我把它轉回給瑪麗亞之前，我將介紹本季度的一些亮點。

Our new business bookings, which showed continued momentum through Q1 with demand strongest in our downmarket offering like RUN and our retirement services businesses, and we also continue to see strong traction in our PEO solution. At the same time, bookings growth in our international business started a bit softer than we had hoped. We're continuing to watch the demand environment in international markets as clients and prospects there are dealing with a number of uncertainties, as you know. We are keeping an eye on the macroeconomic environment as well, but overall demand remains strong, and our pipeline looks solid. We'll share further updates on what we're seeing with bookings as we progress through the year.

我們的新業務預訂在第一季度表現出持續的勢頭，對我們的低端市場產品（如 RUN 和我們的退休服務業務）的需求最為強勁，我們也繼續看到我們的 PEO 解決方案具有強大的吸引力。與此同時，我們國際業務的預訂增長開始時比我們希望的要低一些。如您所知，我們將繼續關注國際市場的需求環境，因為那裡的客戶和潛在客戶正在應對許多不確定性。我們也在密切關注宏觀經濟環境，但整體需求依然強勁，我們的管道看起來很穩固。隨著我們全年的進展，我們將分享有關預訂情況的進一步更新。

Our ES retention was very strong with a new overall Q1 record level led by great performance in our mid-market. We accomplished this year-over-year improvement despite further normalization in small business, out-of-business rates in the quarter. We assume we will continue to experience normalization in out-of-business rates towards prepandemic levels as the year progresses, and we are clearly very pleased with the Q1 results and that were better than expected.

我們的 ES 留存率非常高，在我們的中端市場表現出色的情況下，我們的第一季度整體創紀錄水平創下新高。儘管本季度小企業、停業率進一步正常化，但我們還是實現了同比改善。我們假設隨著時間的推移，停業率將繼續正常化，接近大流行前的水平，我們顯然對第一季度的結果非常滿意，而且好於預期。

Our pays per control metric was 6% for the quarter, in line with our expectations as strong hiring that our clients have conducted these past few quarters has carried through to strong pays per control growth this quarter. We continue to expect deceleration in pays per control growth later this year, and we've seen sequential employment growth begin to slow both in the National Employment Report and in public data. But that said, job postings and other leading indicators within our client base suggest that, at the very least in the short term, demand for labor will remain solid.

本季度，我們的每個控制指標的薪酬為 6%，符合我們的預期，因為我們的客戶在過去幾個季度進行的強勁招聘已經實現了本季度每個控制的強勁薪酬增長。我們繼續預計今年晚些時候人均薪酬增長將放緩，我們已經看到就業增長在國家就業報告和公共數據中都開始放緩。但話雖如此，我們客戶群中的職位發布和其他領先指標表明，至少在短期內，對勞動力的需求將保持穩定。

And moving on to our PEO. We saw a modest deceleration in average worksite employee growth rate, which was anticipated, but the 12% growth was slightly ahead of our expectations for the quarter, and we're very pleased with that growth. Demand for both our PEO and our ES and HRO offerings remains high as the value proposition for a fully outsourced model continues to resonate in the market. And in fact, our HRO businesses combined now to serve over 3 million worksite employees out of the 40 million total workers paid by ADP.

繼續我們的PEO。我們看到平均工地員工增長率略有放緩，這是預期的，但 12% 的增長率略高於我們對本季度的預期，我們對這一增長感到非常滿意。由於完全外包模型的價值主張繼續在市場上引起共鳴，對我們的 PEO 以及我們的 ES 和 HRO 產品的需求仍然很高。事實上，在 ADP 支付的 4000 萬員工總數中，我們的 HRO 業務現在合併後為超過 300 萬工地員工提供服務。

Q1 not only provided a strong start to fiscal 2023 but also represented a major milestone in our company's history. As we -- as I mentioned earlier, we crossed the 1 million client mark during the quarter. What an incredible accomplishment. We accomplished this by driving improvement and growth on a consistent basis through decades of different employment cycles, business environments and technology shifts. It's a proud moment that was made possible only because of our relentless focus on meeting the needs of our clients, as Maria mentioned, both by delivering exceptional service and providing -- leading HCM technology. And underpinning all of this is the dedication of our associates who ultimately make ADP the company it is today.

第一季度不僅為 2023 財年提供了一個強勁的開端，而且代表了我們公司歷史上的一個重要里程碑。正如我之前提到的，我們在本季度突破了 100 萬客戶大關。多麼不可思議的成就。我們通過數十年不同的就業周期、商業環境和技術轉變，持續推動改進和增長，從而實現了這一目標。正如 Maria 所說，這是一個值得驕傲的時刻，因為我們不懈地專注於滿足客戶的需求，既提供卓越的服務，又提供領先的 HCM 技術。所有這一切的基礎是我們員工的奉獻精神，他們最終使 ADP 成為今天的公司。

As we look ahead, we recognize the need to remain agile in this unique and dynamic economic environment. And it is certainly our hope that inflation normalizes soon without significant harm to the global economy. But if macroeconomic conditions instead prove more challenging than we'd all like, we believe our stable business model should allow us to maintain our focus on innovation and our steady approach to investment, positioning us to continue driving long-term sustainable growth for many years to come. And it's for that reason that while I am incredibly excited to have reached 1 million clients, I'm even more excited about the opportunities ahead for ADP. And I'll now turn it over to our new CEO, Maria.

展望未來，我們認識到在這種獨特而充滿活力的經濟環境中保持敏捷的必要性。我們當然希望通脹在不對全球經濟造成重大損害的情況下盡快恢復正常。但是，如果宏觀經濟條件證明比我們都想的更具挑戰性，我們相信我們穩定的商業模式應該使我們能夠保持對創新的關注和穩定的投資方式，使我們能夠在多年內繼續推動長期可持續增長來。正是出於這個原因，雖然我非常高興能夠接觸到 100 萬客戶，但我對 ADP 未來的機會更加興奮。現在我將把它交給我們的新任首席執行官瑪麗亞。

Thank you, Carlos. As I mentioned earlier, I am also proud of the collective efforts of our associates who made this achievement possible. One of the beauties of having 1 million clients and directly serving 3 million worksite employees in our HRO businesses is that we have unparalleled insight into the needs of the HR department, and we are putting that insight to work. I'm proud to share that, in September, we won the top HR product at annual HR Tech Conference for the eighth year in a row, this time for a new offering we're calling intelligent self-service.

謝謝你，卡洛斯。正如我之前提到的，我也為我們員工的集體努力使這一成就成為可能而感到自豪。在我們的 HRO 業務中擁有 100 萬客戶並直接為 300 萬工作場所員工提供服務的好處之一是我們對人力資源部門的需求有著無與倫比的洞察力，我們正在將這種洞察力付諸實踐。我很自豪地與大家分享，在 9 月，我們連續第八年在年度 HR 技術大會上贏得了頂級 HR 產品，這次是我們稱之為智能自助服務的新產品。

HR departments today devote a significant amount of time to addressing questions from their workers to help better manage this volume of worker and practitioner interaction. Intelligent self-service uses predictive analytics to help proactively address common issues before workers need to contact their HR leaders. Not only does this solution ultimately improve the experience for the worker, but it further enables the practitioner to focus on more strategic items, which is a key objective for our clients.

如今，人力資源部門投入了大量時間來解決員工提出的問題，以幫助更好地管理大量的員工和從業者互動。智能自助服務使用預測分析來幫助在員工需要聯繫其人力資源主管之前主動解決常見問題。該解決方案不僅最終改善了員工的體驗，而且進一步使從業者能夠專注於更具戰略性的項目，這是我們客戶的關鍵目標。

There are a few different components to intelligent self-service. The first is something we're calling action cards, which you can think of as proactive nudges in the ADP mobile app that appear in the flow of work so that workers are alerted and encouraged to act when there's something they need to address such as a missed time punch or time card approval.

智能自助服務有幾個不同的組成部分。第一個是我們稱之為行動卡的東西，您可以將其視為 ADP 移動應用程序中的主動推動，出現在工作流程中，以便員工在需要解決問題時得到提醒並鼓勵他們採取行動，例如錯過時間打卡或時間卡批准。

Another component of the offering is our virtual assistant chatbot, which was previously available to our clients' HR practitioners but is now, for the first time, being expanded to workers as well in order to address their requests or questions.

該產品的另一個組成部分是我們的虛擬助理聊天機器人，以前我們客戶的人力資源從業人員可以使用，但現在首次擴展到工人，以解決他們的請求或問題。

And the third piece is case management, which helps with more complex problems that require HR systems. This feature presents a streamlined way to create, manage and track workers' interactions with our HR experts and quickly get to the right experts based on the workers made.

第三部分是案例管理，它有助於解決需要人力資源系統的更複雜的問題。此功能提供了一種簡化的方式來創建、管理和跟踪員工與我們的人力資源專家的互動，並根據所聘用的員工快速找到合適的專家。

Intelligence self-service is designed to create a better HR experience and reduce work, and we believe we are designing a solution that can reduce our clients' case volume by 30% or more, which, of course, would be an incredibly value-add win for everyone. We have already rolled out some of these components and are in pilot for others, but the feedback so far has been very positive.

智能自助服務旨在創造更好的人力資源體驗並減少工作量，我們相信我們正在設計一種解決方案，可以將客戶的案例量減少 30% 或更多，當然，這將是一個令人難以置信的增值為每個人贏得勝利。我們已經推出了其中一些組件，並正在為其他組件進行試點，但迄今為止的反饋非常積極。

I also want to give a quick Q1 update on our new user experience. As a reminder, our new user experience represents a significant enhancement we've been making to our scaled strategic platforms using new design principles to make them even more intuitive and more personal so our users can easily leverage our solutions to the fullest. Last year, we moved clients on RUN, iHCM and Next Gen HCM as well as the ADP Mobile app over to the new user experience. And later in the year, we also moved 20,000 Workforce Now clients to the new UX.

我還想在第一季度快速更新我們的新用戶體驗。提醒一下，我們的新用戶體驗代表了我們一直在使用新的設計原則對我們的規模化戰略平台進行的重大改進，使它們更加直觀和個性化，以便我們的用戶可以輕鬆地充分利用我們的解決方案。去年，我們將 RUN、iHCM 和 Next Gen HCM 以及 ADP Mobile 應用程序上的客戶轉移到了新的用戶體驗中。今年晚些時候，我們還將 20,000 名 Workforce Now 客戶遷移到了新的 UX。

Enhancing Workforce Now is especially important given how integral the platform is to so many of our businesses, and I'm pleased to now share we've taken that 20,000 clients last year to over 80,000 through the end of Q1 with essentially all of Workforce Now clients on this new enhanced experience.

鑑於該平台對我們許多業務的不可或缺性，增強 Workforce Now 尤為重要，我很高興現在分享我們已經將去年的 20,000 名客戶增加到第一季度末的 80,000 多名，基本上所有的 Workforce Now客戶對這種新的增強體驗。

Among other user experience initiatives, we relaunched the ADP RUN mobile app with our new UX with managers and HR practitioners of small businesses running payroll and HR while on the go. This app is a powerful tool for them, and the relaunch has been a resounding success. You can see the app and the reviews for yourself, but it's doing phenomenally well with 4.9 stars and several thousand reviews representing meaningful improvement from the experience it is replacing.

在其他用戶體驗計劃中，我們重新推出了 ADP RUN 移動應用程序，它帶有我們新的 UX，小企業的經理和 HR 從業者可以在旅途中運行工資單和 HR。這個應用程序對他們來說是一個強大的工具，重新發布取得了巨大的成功。您可以自己查看應用程序和評論，但它的表現非常出色，4.9 星和數千條評論代表了它所取代的體驗的有意義的改進。

These are exactly the types of outcomes we had hoped to achieve with this user experience work, and we are very excited about continuing to roll out to more solutions within our key platforms.

這些正是我們希望通過這項用戶體驗工作實現的結果類型，我們對繼續在我們的關鍵平台內推出更多解決方案感到非常興奮。

From our voice of employee offering, we mentioned last quarter to our new intelligent self-service capability to our UX deployment into our ongoing Next Gen rollout, our product teams are busy and our clients are excited about the continued innovation at ADP and our overall modernization journey. We look forward to continuing to develop ways to provide more value to our clients and prospects in this dynamic HCM and economic environment and to ultimately deliver on our bookings growth goals for this year and beyond. And with that, over to Don.

從我們上個季度員工提供的聲音到我們新的智能自助服務能力，再到我們正在進行的下一代部署中的 UX 部署，我們的產品團隊很忙，我們的客戶對 ADP 的持續創新和我們的整體現代化感到興奮旅行。我們期待繼續開發方法，在這種動態的 HCM 和經濟環境中為我們的客戶和潛在客戶提供更多價值，並最終實現我們今年及以後的預訂增長目標。然後，交給唐。

Thank you, Maria, and good morning, everyone. Our first quarter represented a strong start to the year with 10% revenue growth on a reported basis and 11% growth on an organic constant currency basis. Our EBIT margin was up 30 basis points, coming in above our expectations as strong overall revenue growth and growing clients fund interest revenue contribution as well as favorable workers' compensation reserve adjustments in our PEO overcame inflation-related cost pressures and higher-than-typical year-over-year head count growth.

謝謝你，瑪麗亞，大家早上好。我們的第一季度代表了今年的強勁開局，報告收入增長 10%，有機不變貨幣增長 11%。我們的息稅前利潤率上升了 30 個基點，高於我們的預期，因為強勁的整體收入增長和不斷增長的客戶為利息收入貢獻提供資金，以及我們的 PEO 中有利的工人薪酬準備金調整克服了與通脹相關的成本壓力和高於典型水平人數同比增長。

Our robust revenue and margin performance combined to drive 13% adjusted EPS growth for the quarter supported by our ongoing return of cash to our investors via share repurchases.

我們強勁的收入和利潤率表現共同推動了本季度 13% 的調整後每股收益增長，這得益於我們通過股票回購持續向投資者返還現金。

In our Employer Services segment, increased 9% on a reported and 11% on an organic constant currency basis. Key drivers to this growth were strong bookings and retention performance we delivered in recent quarters as well as solid contributions from price and pays per control. And of course, client funds interest, which mostly benefits the ES segment, grew nicely in Q1 with 39% growth driven by a healthy 9% balance growth and 40 basis point improvement in average yield. Partially offsetting that was FX, which was a slightly bigger headwind than we had anticipated. Our ES margin increase of 50 basis points was higher than planned primarily as a result of that strong revenue growth.

在我們的雇主服務部門，在報告的基礎上增長了 9%，在有機不變貨幣基礎上增長了 11%。這一增長的關鍵驅動因素是我們在最近幾個季度實現的強勁預訂和保留業績，以及價格和按控制支付的可靠貢獻。當然，主要有利於 ES 部門的客戶資金利息在第一季度增長良好，在 9% 的健康餘額增長和平均收益率提高 40 個基點的推動下增長了 39%。部分抵消了外匯，這是一個比我們預期的稍大的逆風。我們的 ES 利潤率增長 50 個基點高於計劃，這主要是由於收入增長強勁。

For our PEO, revenue in the quarter grew 13%. Average worksite employees increased 12% on a year-over-year basis to 704,000 and as bookings and same-store pays both continue to perform well, though the same-store pays contributed less than it did in recent quarters as we expected. PEO margin increased 80 basis points in the quarter due primarily to revenue growth and favorable workers' compensation reserve adjustments.

對於我們的 PEO，本季度的收入增長了 13%。平均工地員工同比增長 12% 至 704,000 人，並且由於預訂和同店支付都繼續表現良好，儘管同店支付的貢獻低於我們預期的最近幾個季度的貢獻。本季度 PEO 利潤率增加了 80 個基點，主要是由於收入增長和有利的工人補償準備金調整。

Let me now turn to our updated outlook for fiscal '23. I think, overall, you'll find a very steady outlook compared to our prior guidance with upside due in part to higher interest rates. Beginning with the ES segment revenues, we now expect growth of 7% to 8% and driven by the following key assumptions.

現在讓我談談我們對 23 財年的最新展望。我認為，總體而言，與我們之前的指引相比，您會發現前景非常穩定，部分原因是利率上升。從 ES 部門的收入開始，我們現在預計增長 7% 至 8%，並受到以下關鍵假設的推動。

First, we continue to expect ES new business bookings to grow between 6% and 9%. And as Carlos covered, we see a stable overall demand environment at this time, but it's still early in the year. And with a wide range of outcomes and we will continue to watch for impact from a potentially slowing global economy as we progress from here.

首先，我們繼續預計 ES 新業務預訂量將增長 6% 至 9%。正如卡洛斯所說，我們目前看到了穩定的整體需求環境，但仍處於年初。有了廣泛的成果，隨著我們從這裡取得進展，我們將繼續關注可能放緩的全球經濟帶來的影響。

For ES retention, we were happy to deliver another strong quarter, but we believe it's prudent to anticipate further normalization of small business out of business rates as we move through fiscal '23. As such, at this time, we're leaving our outlook unchanged at down 25 to 50 basis points. Meanwhile, we will look to maintain our strong retention levels in our other business units.

對於 ES 保留，我們很高興實現又一個強勁的季度，但我們認為，隨著我們進入 23 財年，預計小企業停業率進一步正常化是謹慎的做法。因此，此時，我們將前景保持不變，下調 25 至 50 個基點。同時，我們將尋求在其他業務部門保持強勁的保留水平。

For pays per control, we had healthy 6% growth in Q1, in line with expectations, and we continue to anticipate a return to a more typical 2% to 3% growth rate for the full year as employment growth moderates. As we discussed last quarter, our pays per control growth outlook assumes a deceleration in growth in Q2 and very little growth in the second half of fiscal '23. This could, of course, prove to be either too conservative or bullish depending on how macroeconomic factors develop, but it still feels like a reasonable assumption to make at this point.

對於每個控制的薪酬，我們在第一季度實現了 6% 的健康增長，符合預期，並且隨著就業增長放緩，我們繼續預計全年將恢復到更典型的 2% 至 3% 的增長率。正如我們上個季度討論的那樣，我們的按控制支付增長前景假設第二季度增長放緩，而 23 財年下半年增長很小。當然，這可能被證明過於保守或過於樂觀，具體取決於宏觀經濟因素的發展方式，但在這一點上仍然感覺是一個合理的假設。

Last quarter, we spoke a bit about price, and there is no change to our expectation for price to contribute about 100 to 150 basis points to our ES revenue growth in fiscal '23. Our clients understand these price increases and recognize that they reflect our own cost pressures. And for client fund's interest revenue, we now expect higher average rates compared to our prior outlook. Our client funds short portfolio will continue to benefit as the federal funds rate increases over the balance of the fiscal year, and our new investments in our client extended and loan portfolios are now expected to yield about 4.3%. Between those 2 drivers, we now expect the average yield on our client funds portfolio to be 2.4% in fiscal '23, which is about 20 basis points higher than our prior outlook. We continue to expect our client funds balances to grow 4% to 6%.

上個季度，我們談到了價格，我們對價格在 23 財年為我們的 ES 收入增長貢獻約 100 到 150 個基點的預期沒有變化。我們的客戶了解這些價格上漲，並認識到它們反映了我們自身的成本壓力。對於客戶基金的利息收入，我們現在預計平均利率將高於我們之前的展望。隨著聯邦基金利率在本財年餘下時間上調，我們的客戶資金空頭投資組合將繼續受益，我們對客戶擴展和貸款投資組合的新投資現在預計收益率約為 4.3%。在這兩個驅動因素之間，我們現在預計 23 財年我們客戶基金投資組合的平均收益率為 2.4%，比我們之前的預期高出約 20 個基點。我們繼續預計我們的客戶資金餘額將增長 4% 至 6%。

And putting those together, we now expect our client funds interest revenue to increase to a range of $790 million to $810 million in fiscal '23, up $70 million from our prior outlook. Partially offsetting this revenue upside is higher short-term borrowing costs associated with our client funds extended strategy. With higher expected commercial paper and reverse repo rates over the rest of the year, we now expect the net impact from our client fund's extended strategy to be $720 million to $740 million in fiscal '23, up $45 million from our prior outlook.

綜上所述，我們現在預計我們的客戶資金利息收入將在 23 財年增加到 7.9 億美元至 8.1 億美元，比我們之前的預期增加 7000 萬美元。與我們的客戶資金擴展策略相關的短期借貸成本較高，部分抵消了這一收入增長。由於預期商業票據和逆回購利率在今年剩餘時間內較高，我們現在預計客戶基金擴展戰略的淨影響在 23 財年將達到 7.2 億美元至 7.4 億美元，比我們之前的預期增加 4500 萬美元。

One last factor to consider is our ES -- in our ES revenue outlook is FX headwind, which has unfortunately become a more meaningful drag over the last 3 months. We're now factoring in an FX headwind closer to 2% for fiscal '23 ES revenue up slightly from our prior assumption. For ES margin, we now expect an increase of 200 to 225 basis points, up 25 basis points from our prior outlook. We continue to expect our margins to benefit from our strong revenue growth outlook, including growth in client fund's interest revenue, and we're pleased to be able to increase our outlook accordingly.

最後一個要考慮的因素是我們的 ES——在我們的 ES 收入前景中，外匯逆風是不利的，不幸的是，這在過去 3 個月中已成為更有意義的拖累。我們現在考慮到 23 財年 ES 收入的外匯逆風接近 2%，比我們之前的假設略有上升。對於 ES 利潤率，我們現在預計將增加 200 至 225 個基點，比我們之前的展望高出 25 個基點。我們繼續預計我們的利潤率將受益於我們強勁的收入增長前景，包括客戶基金利息收入的增長，我們很高興能夠相應地提高我們的前景。

Moving on to the PEO segment, where we're making very few changes. We continue to expect PEO revenue and PEO revenue excluding 0 margin pass-throughs to grow 10% to 12%. The primary driver for our PEO growth is our outlook for average worksite employee growth of 8% to 10%. We now expect PEO margin to be flat to up 25 basis points in fiscal '23 and narrowing our prior range higher due in part to the strong Q1 margin performance.

繼續進行 PEO 部分，我們在其中進行的更改很少。我們繼續預計 PEO 收入和不包括 0 利潤傳遞的 PEO 收入將增長 10% 至 12%。我們 PEO 增長的主要驅動力是我們對平均工地員工增長 8% 至 10% 的展望。我們現在預計 PEO 利潤率在 23 財年將持平至 25 個基點，並且由於第一季度利潤率表現強勁而縮小了我們之前的較高區間。

Adding it all up, we now expect consolidated revenue growth of 8% to 9% in fiscal '23 and adjusted EBIT margin expansion of 125 to 150 basis points. We still expect our effective tax rate for fiscal '23 to be about 23%, and we now expect adjusted EPS growth of 15% to 17% supported by our steady share repurchases. And now I'll turn it back to the operator for Q&A.

加起來，我們現在預計 23 財年的綜合收入增長為 8% 至 9%，調整後的息稅前利潤率增長 125 至 150 個基點。我們仍然預計 23 財年的有效稅率約為 23%，我們現在預計，在我們穩定的股票回購支持下，調整後的每股收益增長 15% 至 17%。現在我將其轉回給接線員進行問答。

(Operator Instructions) We will take our first question from Pete Christiansen with Citi.

（操作員說明）我們將向花旗銀行的 Pete Christiansen 提出第一個問題。

First, congrats to Maria. Looking forward to seeing your touch on strategic vision here and certainly to Carlos for such a successful tenure as CEO, particularly through some volatile events in the last couple of years, for sure. I just had a question as it relates to bookings trends certainly see that the outlook is held steady. And I know that we're kind of early in the selling season. But if there's any -- just wondering if you could put any color on any differentiating trends you're seeing at this point of the year, maybe perhaps versus the last year or 2, maybe attach rates or on ancillary modules or even going to more outsourced models, you seeing any changes in behavior there?

首先，祝賀瑪麗亞。期待在這裡看到您對戰略願景的看法，當然也期待看到卡洛斯在擔任 CEO 期間如此成功，尤其是在過去幾年的一些動盪事件中，當然。我只是有一個問題，因為它與預訂趨勢有關，當然可以看到前景保持穩定。而且我知道我們還處於銷售旺季的早期。但如果有的話 - 只是想知道你是否可以為你在今年這個時候看到的任何差異化趨勢添加任何顏色，可能與去年或 2 年相比，可能是附加費率或輔助模塊，甚至更多外包模型，您看到那裡的行為有任何變化嗎？

And then as it relates to the pricing discussion that we just had, do you feel like you have any more room? It seems like your clients are responding well and things look good. But do you still -- do you think that there's potential upside to the pricing strategy? Sorry.

然後因為它與我們剛剛進行的定價討論有關，你覺得你還有更多空間嗎？看起來您的客戶反應良好，事情看起來也不錯。但是你仍然 - 你認為定價策略有潛在的好處嗎？對不起。

Thank you, Pete, and thank you for the well wishes. I certainly appreciate them. And as you mentioned, look forward to connecting with many of you around strategic vision going forward. With respect to bookings and really thinking through year-on-year changes in behavior, I'll comment on that, and then I'll turn it over to Don that can talk about whether or not we have more room on price. .

謝謝你，皮特，謝謝你的祝福。我當然很感激他們。正如你所提到的，期待與你們中的許多人圍繞未來的戰略願景建立聯繫。關於預訂和真正考慮行為的逐年變化，我會對此發表評論，然後我會把它交給唐，他可以討論我們是否有更多的價格空間。 .

But again, just to kind of confirm the overall outlook at 6% to 9%, we do feel confident in this outlook. When I think about how we planned for the year, and we were generally pleased with the results that we saw in the first quarter, in fact, they were actually technically a record from a year-on-year perspective.

但同樣，為了確認 6% 至 9% 的整體前景，我們確實對這一前景充滿信心。當我想到我們今年的計劃時，我們對第一季度看到的結果普遍感到滿意，事實上，從技術上講，從同比的角度來看，它們實際上是創紀錄的。

But the thing that makes us not necessarily call that out in that way and really speaking to the continued momentum, to your question, it's really about in the context of the records that we've had, in the past few quarters, it's really been broad-based across every bit of the portfolio. And as you heard in the prepared remarks this morning, we had significant strength in our downmarket offerings. Really pleased to see that across our RUN portfolio, the small business segment inclusive of our insurance offerings, retirement offerings. We also continue to have significant strength in our HRO offerings, the inclusive of the PEO. So in terms of changing behavior, I see that as constant behavior as it relates to -- those are businesses that have had continued strength over several quarters and the value proposition, both downmarket and certainly into the HRO space has been good.

但是，使我們不一定以這種方式大聲疾呼並真正說明持續勢頭的事情，對於您的問題，這實際上是在我們擁有的記錄的背景下，在過去的幾個季度中，它確實是廣泛應用於投資組合的每一部分。正如您在今天早上準備好的講話中所聽到的那樣，我們在低端市場產品中擁有顯著優勢。真的很高興看到在我們的 RUN 投資組合中，包括我們的保險產品、退休產品在內的小型企業部門。我們還繼續在我們的 HRO 產品（包括 PEO）方面擁有顯著優勢。因此，就改變行為而言，我認為與它相關的持續行為——這些企業在幾個季度內一直保持強勁，並且價值主張，無論是在低端市場還是在 HRO 領域都是好的。

I think the area, again, that we called out a little bit that we're keeping an eye on is really our international business. Now the good news with our international business is that it's a small contributor to our overall bookings. But when we look at what really happened with the international space, specifically for this quarter, we don't still actually see a macro impact. We see more of an impact of the strength that we had coming into or coming off of a record Q4. And so when you think about our upmarket business, specifically our international business, there are times that it's a bit lumpy as we pull deals forward to accelerate through the fourth quarter. And candidly, who wouldn't want to have an incredible finish and an incredible forth quarter? But as it has for several decades, I would say that does sometimes lend itself to some of those businesses needing to continue to us rebuild the pipeline.

我認為，我們再次呼籲關注的領域確實是我們的國際業務。現在，我們國際業務的好消息是，它對我們整體預訂量的貢獻很小。但是，當我們查看國際空間真正發生的事情時，特別是本季度，我們實際上仍然沒有看到宏觀影響。我們看到了我們進入或退出創紀錄的第四季度的實力的更多影響。因此，當您考慮我們的高端業務，特別是我們的國際業務時，有時我們會推進交易以加速到第四季度，這有點顛簸。坦率地說，誰不想擁有令人難以置信的結束和令人難以置信的第四節呢？但就像幾十年來一樣，我想說這有時確實適用於一些需要繼續我們重建管道的企業。

So that's really what we think is happening. But at the same time, we're very -- we're keeping an eye on specifically in Europe, what's happening in the Ukraine, what's happening with the energy crisis. Those are watch items for us, but just kind of reiterate, we don't see any macro overall trends. We don't see changes in behavior. We see the strength continuing in the downmarket and into our HRO and PEO offerings, and we were very, very pleased with the results this quarter, and they are record results in that respect.

所以這就是我們認為正在發生的事情。但與此同時，我們非常 - 我們正在密切關注歐洲，烏克蘭正在發生什麼，能源危機正在發生什麼。這些是我們的手錶項目，但只是重申一下，我們沒有看到任何宏觀整體趨勢。我們沒有看到行為的變化。我們看到低端市場以及我們的 HRO 和 PEO 產品繼續保持強勁勢頭，我們對本季度的結果非常非常滿意，在這方面它們是創紀錄的結果。

Yes. And with respect to the pricing, we've been very happy with our ability to execute the price increase in the way we did. And as we've said on prior calls, we're mindful of the fact that these are incremental costs for our clients as well, and we need to be competitive. So we made sure that we've price increased and passed on the costs we have in a way that keeps our customers with us for a very, very long time.

是的。關於定價，我們對我們以我們所做的方式執行價格上漲的能力感到非常滿意。正如我們在之前的電話中所說的那樣，我們注意到這些對我們的客戶來說也是增量成本，我們需要具有競爭力。因此，我們確保我們已經提高了價格並轉嫁了我們的成本，以使我們的客戶與我們保持非常非常長的時間。

Having said that, we said 100 to 150 basis points. And I would tell you that, currently, we're pushing towards the upper end of that range in the price increase. So we've done very well against expectations and executed, as I said, well across the business. Of course, is there more available? Good question. If we look at our client base, particularly with the large clients, we do have contractual obligations that come due from time to time. And a number of those are tied to various price indices, et cetera. So that limits the ability to do anything beyond some of the pricing indices that drive or undermine or underlay, if you will, the price that we have.

話雖如此，我們說的是 100 到 150 個基點。我會告訴你，目前，我們正在推動價格上漲的上限。因此，正如我所說，我們在整個業務中都做得很好，並且執行得很好。當然，還有更多可用的嗎？好問題。如果我們查看我們的客戶群，尤其是大客戶，我們確實有不時到期的合同義務。其中一些與各種價格指數等有關。因此，這限制了我們做任何事情的能力，這些價格指數會推動或破壞或支撐我們擁有的價格，如果你願意的話。

But I guess I would say we've been very happy with where we are now, and we'll always look to see if there's an opportunity. But I think that we want to make sure and that we will continue to make sure that we do what's best for ADP in the long term as opposed to being too overzealous, if you will, with short-term price increases.

但我想我會說我們對現在的情況非常滿意，我們會一直尋找機會。但我認為我們想要確保並且我們將繼續確保我們在長期內為 ADP 做最好的事情，而不是過於熱心，如果你願意的話，短期價格上漲。

Our next question comes from Tien-Tsin Huang with JPMorgan.

我們的下一個問題來自摩根大通的 Tien-Tsin Huang。

Great. Carlos, I want to say, again, grateful to have worked with you and share the time and learn from you from, I guess, over 40 earnings calls and meetings and stuff. So I appreciate that. And of course, congrats to Maria. I want to just ask, if you don't mind, 100% agree from the release, Carlos led the transition from payroll to HCM. So I know you can't tell us everything in terms of what's next here, but is it fair to think the focus might be more so on the employee now in addition to the employer, in addition to modernization, maybe data? Just maybe some thoughts there would be great. Love to hear it.

偉大的。卡洛斯，我想再次說，感謝與你一起工作，分享時間並向你學習，我猜，超過 40 次財報電話會議和會議等。所以我很感激。當然，祝賀瑪麗亞。我只想問，如果你不介意，100% 同意發布，Carlos 領導了從工資單到 HCM 的過渡。所以我知道你不能告訴我們接下來會發生什麼，但是認為現在除了雇主之外，除了現代化之外，可能更多地關注員工，也許是數據，這是否公平？只是也許有一些想法會很棒。喜歡聽。

I think that was for you, Maria, given that I'll be sitting on the beach.

我想那是給你的，瑪麗亞，因為我會坐在沙灘上。

Fair enough. Thank you for the chance to comment a little bit. Obviously, early days as it relates to -- essentially starting as early days as it relates to having conversations around long-term strategy. I think the first thing I'd like to reiterate, I know I talked about my 26 years here. I have spent 8 of those as part of the incredible management team that Carlos alluded to earlier, and has been a part of the journey that we've been on as it relates to the overall modernization journey.

很公平。感謝您有機會發表評論。顯然，與它相關的早期階段——基本上是從與圍繞長期戰略進行對話的早期階段開始的。我想我想重申的第一件事，我知道我談到了我在這裡的 26 年。作為 Carlos 早些時候提到的令人難以置信的管理團隊的一部分，我已經花費了其中的 8 個，並且一直是我們所經歷的與整體現代化之旅相關的旅程的一部分。

So I think you mentioned the transition from payroll to HCM. That is a piece of that modernization. But in my mind, it's more broad-based than that. It's really been about the decisions we've made, everything from our strategic locations to early days of platform migrations to reconfiguring our organization to really create a technology organization. We've been actively modernizing our service organization. You hear me speak about that all the time in terms of continuing the modernization of tools but also making sure that we're taking the work out for our clients. We've been making a transition to the public cloud.

所以我認為你提到了從工資單到 HCM 的過渡。這是現代化的一部分。但在我看來，它比這更廣泛。這真的是關於我們所做的決定，從我們的戰略位置到早期的平台遷移，再到重新配置我們的組織以真正創建一個技術組織。我們一直在積極地對我們的服務組織進行現代化改造。你聽到我一直在談論這一點，即繼續對工具進行現代化改造，同時確保我們為客戶完成工作。我們一直在向公共雲過渡。

And then one of my favorite topics is the modern selling approach that we've been embarking upon that really has been going on for many years as we found it inside of sales, if you will, 20 years ago to the most recent during the pandemic, really focused on digital selling and meeting the buyers in a different way.

然後我最喜歡的話題之一是我們一直在採用的現代銷售方法，這種方法確實已經持續了很多年，因為我們在銷售中發現了它，如果你願意的話，從 20 年前到最近的大流行期間，真正專注於數字銷售和以不同的方式與買家會面。

So I think all of that is really about our modernization journey. And I think as I look forward into the next decade, if you will, in the next chapter, it is really about continuing the great work and the foundation that you mentioned that Carlos laid. I have a lot of passion around our clients. I have a lot of passion around the 40 million workers that they pay and how we can create value for each one of those stakeholders, both the workers as you mentioned, the clients' employees as well as our clients.

所以我認為所有這些都與我們的現代化之旅有關。我認為，當我展望下一個十年時，如果你願意的話，在下一章中，這真的是關於繼續你提到的偉大工作和卡洛斯奠定的基礎。我對我們的客戶充滿熱情。我對他們支付的 4000 萬工人以及我們如何為每個利益相關者創造價值充滿熱情，包括你提到的工人、客戶的員工以及我們的客戶。

And my ultimate goal, Carlos touched on it, I think I mentioned it as well upfront, when I think about client centricity and really solving meaningful things for our clients, I think the last decade in this modernization journey has really been about setting us up to be able to deliver value in a very different way for our clients. My goal would be to continue that journey and, in the end, make sure that our clients are in love with our products and in love with the experience that they have with ADP and the true evangelists of what it is that we bring. And I feel confident in how we've been set up to embark on that journey, and I look forward to sharing more with you on it as we move forward.

而我的最終目標，卡洛斯談到了它，我想我也提前提到了它，當我考慮以客戶為中心並真正為我們的客戶解決有意義的事情時，我認為這個現代化之旅的最後十年真的是建立我們能夠以非常不同的方式為我們的客戶創造價值。我的目標是繼續這一旅程，並最終確保我們的客戶愛上我們的產品，愛上他們對 ADP 的體驗以及我們帶來的真正傳道者。我對我們如何開始這一旅程充滿信心，我期待在我們前進的過程中與您分享更多信息。

Our next question comes from Kevin McVeigh with Credit Suisse.

我們的下一個問題來自瑞士信貸的 Kevin McVeigh。

Great. And my congratulations all around as well. Carlos, I guess, why is now the right time? I mean you've done an amazing job, you're still incredibly young. Just any thoughts as to why transition now?

偉大的。我也祝賀你。卡洛斯，我猜，為什麼現在是正確的時間？我的意思是你已經完成了一項了不起的工作，你仍然非常年輕。關於為什麼現在過渡的任何想法？

Actually, it's a good question because, honestly, it's something that we started -- we were joking about it yesterday, that I started talking about this about 12 months after I became CEO. Not that I was trying to leave 12 months after I became CEO. But in case people haven't noticed, I'm like a business junky, right? So I just love business. I also love kind of the whole idea of like a successful commercial enterprise, and you have this kind of tension in this area of succession where the longer you are around, the more you know. There's some studies out there that show that beyond a certain amount of time is really when CEOs hit their stride. But then there's an equal amount of research that shows you'll beyond a certain time, you become stale. You don't have any new ideas. You become enamored with your own ideas and thoughts.

實際上，這是一個很好的問題，因為老實說，這是我們開始的事情——我們昨天開玩笑說，我在成為 CEO 大約 12 個月後開始談論這個問題。並不是說我在成為 CEO 12 個月後就想離開。但萬一人們沒有註意到，我就像一個商業迷，對吧？所以我只喜歡生意。我也喜歡像一個成功的商業企業這樣的整體想法，你在這個繼承領域有這種緊張感，你在身邊的時間越長，你知道的越多。有一些研究表明，超過一定時間才是 CEO 大踏步前進的時候。但是同樣數量的研究表明你會超過一定的時間，你會變得陳舊。你沒有任何新的想法。你會迷戀於自己的想法和想法。

And so I have not written the book on this, but I read a lot of books on this. And my sense was that kind of beyond 7 years was -- there was diminishing returns based on my "research." And you can see that I made it past that. And some of that was -- circumstances, I think, made it such because I didn't have any specific goal. Like I'm not trying to run out the door.

所以我還沒有寫過這方面的書，但是我讀了很多關於這方面的書。我的感覺是，超過 7 年是——基於我的“研究”，收益遞減。你可以看到我已經過去了。其中一些是——我認為，情況之所以如此，是因為我沒有任何具體目標。就像我不想跑出去一樣。

My -- the only thing I want to do is the best thing for ADP and the best thing in this case now for Maria and for our Board. And so this is a collective decision over -- I know it's hard to believe but really over a decade as to what the right timing was, who the right person was and how to position them for success and how to position the company for success.

我的-- 我唯一想做的就是為ADP 做最好的事情，在這種情況下，對Maria 和我們的董事會來說最好的事情。所以這是一個集體決定——我知道這很難相信，但實際上十多年來，關於什麼是正確的時機，誰是正確的人，如何為成功定位以及如何定位公司以取得成功。

By the way, that also involves -- we had a very meaningful refreshment of our Board that, I think, is something that has to be taken into context because it's all a package, right? It's -- the right CEO, the right Board, the right Board leadership. And so I think that bringing the Board along, I think, required a little bit more time than I had expected. So that's a long way of saying I don't have any magic answers to what the right time is. What I know for sure is not the right way to do it. There's nothing to do with my age and whether I'm young or I'm old or whatnot. It has to be done when it's the right time and it's the best thing for ADP, and I think that's what we just did.

順便說一句，這還涉及——我們對董事會進行了一次非常有意義的更新，我認為這是必須考慮的事情，因為它是一個整體，對嗎？它是——合適的 CEO、合適的董事會、合適的董事會領導。因此，我認為，讓董事會參與進來需要的時間比我預期的要多一些。因此，對於什麼是正確的時間，我沒有任何神奇的答案。我所知道的肯定不是正確的方法。與我的年齡無關，無論我是年輕還是年老或其他什麼。它必須在適當的時候完成，這對 ADP 來說是最好的事情，我認為這就是我們剛剛所做的。

That makes a lot of sense. The numbers speak for themselves. So I'll leave it there. Congrats again.

這很有意義。數字不言自明。所以我會把它留在那裡。再次恭喜。

Our next question comes from Kartik Mehta with Northcoast Research. .

我們的下一個問題來自 Northcoast Research 的 Kartik Mehta。 .

Carlos, just -- or Maria, just your thoughts on the economy. Obviously, I look at your results and things look good. I know you said maybe the second half, you're just being a little bit more cautious. But as you look at kind of the numbers now and you talk to your customers, just your thoughts on how the economy looks now and just kind of the outlook over the next 6 to 9 months?

卡洛斯，只是 - 或瑪麗亞，只是你對經濟的看法。顯然，我看看你的結果，事情看起來不錯。我知道你說也許是下半場，你只是稍微謹慎了一點。但是，當您現在查看這些數字並與您的客戶交談時，您對現在經濟狀況的看法以及未來 6 到 9 個月的前景如何？

So we obviously don't have the market cornered on economic forecast. We do have a reasonable amount of data, particularly on what I would call the near-term next few quarters, I would say. But when you look at the last 2, 3, 5 years, 10 years, really, as long as I've been doing this, you have to be really careful about taking economic forecasts at face value. So you have to be careful. You have to be prepared for all eventualities. And that's why we like to call ourselves an all-weather business model because I think we actually perform, I think, through a variety obviously, better in some than others.

因此，我們顯然沒有讓市場專注於經濟預測。我會說，我們確實有合理數量的數據，特別是關於我稱之為近期未來幾個季度的數據。但是當你回顧過去的 2、3、5 年、10 年時，真的，只要我一直這樣做，你就必須非常小心地從表面上看待經濟預測。所以你必須小心。你必須為所有可能發生的事情做好準備。這就是為什麼我們喜歡稱自己為全天候商業模式的原因，因為我認為我們實際上表現得很好，我認為，顯然，通過多種方式，在某些方面比其他方面更好。

But I guess that's the way of saying we're not obsessed with economic forecast because if I had taken economic forecast at face value over the last 3 or 4 years, we would have made numerous mistakes. And I think all I have to do is go back. I know nobody does this because otherwise there wouldn't be -- economists wouldn't exist. But if you look at what economists forecast 12 months prior and then what actually happened or 20 months prior and what actually happened, that's not really the right way to run a business.

但我想這就是說我們不癡迷於經濟預測的方式，因為如果我在過去 3 或 4 年裡從表面上看經濟預測，我們會犯很多錯誤。我想我所要做的就是回去。我知道沒有人這樣做，因為否則就不會有——經濟學家就不會存在。但是，如果你看看經濟學家在 12 個月前的預測和實際發生的情況，或者 20 個月前和實際發生的情況，這並不是經營企業的真正正確方式。

But it doesn't inform our decisions right, and our planning. And as you mentioned, what happened this year in terms of our fiscal year planning is we thought kind of common sense told us that some of these things were going to happen like normalization of downmarket retention, right, towards hopefully still above prepandemic levels but not at the kind of levels they were when the government was providing so much support for small businesses that you could just see it in the data in terms of the drop in bankruptcies and out of business and so forth. So we expect some normalization there.

但它並不能告知我們正確的決定和我們的計劃。正如你所提到的，就我們的財政年度計劃而言，今年發生的事情是我們認為某種常識告訴我們，其中一些事情將會發生，比如低端市場保留率的正常化，對，希望仍高於大流行前水平，但不會在政府為小企業提供如此多的支持時，你可以在數據中看到破產和倒閉等方面的數據。所以我們期望那裡有一些正常化。

Likewise, pays per control, it's not -- you just don't make numbers up. Like we -- if you assume that you reach kind of "full employment", and that the population and employment (technical difficulty) people is growing at a certain rate, you can kind of back into kind of a normal what you think a normalized pays per control rate, and then you sprinkle in a little bit maybe there's going to be some economic weakness in the back half.

同樣，按控制付費，它不是——你只是不編造數字。像我們一樣——如果你假設你達到了某種“充分就業”，並且人口和就業（技術難度）以一定的速度增長，你可以回到你認為正常化的那種正常狀態按控制率付費，然後你稍微撒一點，也許後半部分會出現一些經濟疲軟。

And I think what we signaled and what we have in our plan is, I think, kind of flattish pays per control growth, which to me personally is feeling conservative right now based on the -- that feel like we have this kind of continued strength into this quarter, and that typically doesn't fall off the cliff right away. But maybe that happens in the first quarter of '24 that it becomes flattish. I don't know. But I know that right now, there are definitely still -- we got back to what employment was pre pandemic, but the population also grew and the employable number of people grew. So labor force participation is still below where it was before. So there is definitely still room for some employment growth there.

而且我認為我們發出的信號以及我們在計劃中所擁有的是，我認為，每次控制增長的報酬持平，對我個人來說，現在感覺保守，基於 - 感覺我們有這種持續的力量進入本季度，這通常不會立即跌落懸崖。但也許這發生在 24 年第一季度，它變得平淡無奇。我不知道。但我知道，現在肯定還有——我們回到了大流行前的就業，但人口也在增長，可就業人數也在增長。因此，勞動力參與率仍低於之前的水平。所以那里肯定還有一些就業增長的空間。

So this could be a very strange slowdown, right, or if you want to call it a recession, where it's, I think Danny calls it a labor full recession where it doesn't feel like employment, at least the stuff that we look at background checks, job postings, et cetera. I mean if you look at the jokes, you look at everything, there's still a lot of -- we had 260,000 jobs created and that wasn't 500,000, it wasn't a million, but in any other environment, that would be like an incredibly strong number, but it's clearly slowing, but everything we see is that the labor markets remain, again, in the time horizon that we have visibility to pretty strong or certainly not as strong as a year ago or when we were in the middle of the recovery from the pandemic, but that's really more of the comparisons than kind of anything underlying. So I think we're just heading back to kind of more normal rates, but in an unusual way where the labor market doesn't appear to be the leading -- the leader in the slowdown. It appears to be people spending less on stuff that they spent a lot of during the pandemic, if I can be bold. That might be like exercise bicycles. It might be things like grills, like -- and maybe even, unfortunately, for a company that's close to my heart, software, right, and some things that are -- that you have these kind of, unfortunately, fluctuations of demand that we've never seen before. And so the now how do you predict and forecast how that all kind of lands in the medium to longer term. It's very, very hard for any company to do.

所以這可能是一個非常奇怪的放緩，對，或者如果你想稱之為衰退，我認為丹尼稱之為勞動力全面衰退，感覺不像就業，至少我們看到的東西背景調查、職位發布等。我的意思是，如果你看看笑話，你看看一切，還有很多——我們創造了 260,000 個工作崗位，這不是 500,000，不是一百萬，但在任何其他環境中，這就像一個令人難以置信的強勁數字，但顯然正在放緩，但我們所看到的一切是，勞動力市場再次處於我們可以預見的相當強勁或肯定不如一年前或我們處於中間時那麼強勁的時間範圍內大流行的複蘇，但這實際上更多的是比較，而不是任何潛在的東西。所以我認為我們只是回到了一種更正常的利率，但以一種不同尋常的方式，勞動力市場似乎不是領先的——經濟放緩的領導者。如果我可以大膽的話，似乎人們在大流行期間花費的東西更少。這可能就像健身自行車。可能是烤架之類的東西，比如——甚至可能，不幸的是，對於一家與我親近的公司，軟件，對，還有一些東西——你有這種，不幸的是，我們的需求波動'以前從未見過。所以現在你如何預測和預測中長期內所有類型的土地。任何一家公司都很難做到。

But specifically for us, labor is still strong. As long as labor is strong, our clients are still looking for tools to employ, to hire and to manage that labor. And we have this other little weird thing happening to us, which is really fantastic, which is interest rates are rising. And the rising in the face -- I mean, typically, when interest rates are rising, the economy is slowing, and that's exactly obviously what the intent of the Fed is. But right now, you're kind of at this point where we're getting this big tailwind from interest rates, and it doesn't feel like that's going to change again in the near term.

但特別是對我們來說，勞動力仍然很強勁。只要勞動力強大，我們的客戶仍在尋找使用、僱用和管理勞動力的工具。我們還有另一件奇怪的小事發生在我們身上，這真的太棒了，那就是利率正在上升。面對上升——我的意思是，通常情況下，當利率上升時，經濟正在放緩，而這顯然正是美聯儲的意圖。但現在，你正處於我們從利率中獲得巨大順風的地步，而且短期內這種情況不會再次改變。

It doesn't mean that rates won't stop increasing, but if rates stop increasing, like, for example, like in the spring of '23, and they stay there, home run for ADP. All of you and everybody internally here at ADP make fun of me when I used to talk about how our balances in 2008 were like $15 billion and they had grown to $30 billion, but our client funds interest had been cut almost by 2/3 because of interest rates. And I used to say, "Can you imagine if interest rates go back to where they -- near back to where they were back then, but our balance is now are $33 million and growing, I think it was 9.5% this quarter? Wouldn't that be amazing?" And that's exactly what's happening.

這並不意味著利率不會停止上漲，但如果利率停止上漲，例如，就像在 23 年春天一樣，並且它們保持在那裡，ADP 的本壘打。當我曾經談到我們在 2008 年的餘額如何像 150 億美元並且已經增長到 300 億美元時，你們和 ADP 內部的每個人都取笑我，但我們的客戶資金利息幾乎減少了 2/3，因為的利率。我曾經說過，“你能想像如果利率回到原來的水平 - 幾乎回到當時的水平，但我們現在的餘額是 3300 萬美元並且還在增長，我認為本季度是 9.5%？這不是很了不起嗎？”這正是正在發生的事情。

So I'm leaving a little bit of gas in the tank for Maria. Well, actually, I can't take credit for that. I appreciate Chairman Powell helped with that. But we -- I think we have some gas in the tank here with interest rates as well, which again, is a little unusual, but I don't know if you want to call it a hedge to our business model, but it's definitely welcome because we are -- as you know, we always carefully watch our expenses and everything in ADP, but it's a much better place to be from an ability to invest and an ability to weather when you have this significant tailwind, which is not a secret. I mean I think Don laid out the numbers, and you can do the math. It's a pretty big tailwind.

所以我要在油箱裡留一點油給瑪麗亞。好吧，實際上，我不能為此而自豪。我感謝鮑威爾主席在這方面提供的幫助。但是我們——我認為我們在利率方面也有一些汽油，這又有點不尋常，但我不知道你是否想把它稱為對我們商業模式的對沖，但這絕對是歡迎，因為我們是 -- 如你所知，我們總是仔細觀察我們的開支和 ADP 中的一切，但是當你有這種重要的順風時，它是一個更好的地方，因為它具有投資能力和抵御風險的能力，這不是秘密。我的意思是我認為唐列出了數字，你可以做數學。這是一個相當大的順風。

Our next question comes from Jason Kupferberg with Bank of America.

我們的下一個問題來自美國銀行的 Jason Kupferberg。

Congrats Maria. Congrats to Carlos as well. I had 2 questions. The first one, just, Maria, picking up on your comments around some of the intelligent self-service offerings. I think you made mention of the potential for customer service cases to be cut by 30%. I was just curious to get a little more color around that, what might be the time line for achieving that goal. And is that any kind of rough proxy for how much your customer service costs could be reduced over time if this is successful?

恭喜瑪麗亞。也祝賀卡洛斯。我有 2 個問題。第一個，瑪麗亞，聽取了您對一些智能自助服務產品的評論。我認為您提到了將客戶服務案例減少 30% 的可能性。我只是好奇想在這方面獲得更多色彩，實現這一目標的時間線可能是什麼。如果這成功了，那麼隨著時間的推移，您的客戶服務成本可以降低多少？

Thank you, Jason, for the well wishes. And I'm actually -- I'm glad you asked this question because I wanted to make sure there's clarity around that 30%. And that 30%, just so we're all on the same page, it's really about our clients being able to save that time. So this is really about serving up, leveraging intelligence, artificial intelligence, machine learning. It's really serving us the most frequent interactions that can be either performed in a self-service capacity or really performed again through this case management and really taking the work out than necessarily, call it, taking the work out of our system. It's really about giving that 30% to our clients.

謝謝你，傑森，祝你好運。實際上，我很高興你問這個問題，因為我想確保這 30% 左右是清晰的。而那 30%，就是為了讓我們都在同一個頁面上，這真的是為了讓我們的客戶能夠節省那段時間。所以這實際上是關於服務、利用智能、人工智能、機器學習。它確實為我們提供了最頻繁的交互，可以以自助服務的身份執行，也可以通過此案例管理再次執行，並且真正將工作從我們的系統中取出，而不是必須調用它。這真的是把這 30% 給我們的客戶。

In fairness, it is early days as we measure this. And when I say that, I'd say that lightly and that we did study this across our 3 million HR worksite employees, if I may call them that, that in terms of the most frequent cases that get served up and what that would yield in terms of a return to our clients. And that's where that 30% comes from. But as we launch this product and more and more adoption happens, we will be keeping a keen eye on that outcome to ensure that, that number remains true, and our hope is to continue to make progress and take more work out of our -- out of the system for our clients as they navigate the relationship between them and the practitioners and the workers.

公平地說，我們衡量這一點還為時過早。當我這麼說時，我會輕描淡寫地說，我們確實在我們的 300 萬人力資源工作場所員工中研究了這一點，如果我可以這麼稱呼他們的話，就最常見的案例以及這將產生什麼而言在回報我們的客戶方面。這就是 30% 的來源。但是隨著我們推出這個產品並且越來越多的採用發生，我們將密切關注這個結果，以確保這個數字保持真實，我們希望繼續取得進展並從我們的 -在我們的客戶處理他們與從業者和工人之間的關係時，他們會脫離系統。

Just one quick follow-up. Just if nothing had changed in the rate environment since the time of the last earnings call, would you guys have raised revenue or margin guidance for fiscal '23?

只需快速跟進。如果自上次財報電話會議以來利率環境沒有發生任何變化，你們會提高 23 財年的收入或利潤率指導嗎？

I think it's -- certainly, the rates helped us. But just a couple of things though to comment on. Certainly, we -- still we're performing well against our internal expectations on margin improvement. So we're still very focused on spend and efficiency of spend, et cetera. But I don't think that we would have been as -- we wouldn't have been as eager to raise expectations in the absence of interest rates, especially given it's still Q1, and we need a little bit of time to see how things progress over the next couple of quarters.

我認為這是 - 當然，利率幫助了我們。但只有幾件事要評論。當然，我們仍然表現良好，超出了我們對利潤率提高的內部預期。因此，我們仍然非常關注支出和支出效率等。但我不認為我們會那樣——在沒有利率的情況下，我們不會那麼急於提高預期，特別是考慮到它仍然是第一季度，我們需要一點時間來看看情況如何在接下來的幾個季度取得進展。

Well, that's fair. But I'm pretty happy with the results because we -- Don, this is just the way our culture is. So everybody is talking about all the positives that we have, like interest income and so forth. But we had some headwinds as well. Like our T&E is up significantly. Remember, last -- it's hard to remember that last year, this quarter, I think we were still in the whole Omicron thing. It was just starting and we really hadn't opened up most of our buildings. I think our salespeople were for sure in the field but not traveling and spending the way they are now, which by the way, we were very grateful that we have them back in the field.

嗯，這很公平。但我對結果很滿意，因為我們 -- Don，這就是我們的文化。所以每個人都在談論我們擁有的所有積極因素，比如利息收入等等。但我們也遇到了一些不利因素。就像我們的 T&E 顯著增加一樣。記住，最後 - 很難記住去年，這個季度，我認為我們仍然在整個 Omicron 事情中。這才剛剛開始，我們真的還沒有打開我們的大部分建築物。我認為我們的銷售人員肯定在現場，但不會像現在這樣旅行和消費，順便說一句，我們非常感謝他們回到現場。

So like there are a couple of things like T&E is the smallest of them. The biggest one is when you look at our head count numbers, it hasn't come up yet, but our sales force is I think, more than fully staffed. And as you probably heard from our comments 6 to 9 months ago, it was difficult to get there back then. Now not only are we fully staffed but our turnover is coming down across the board not just in sales but also across the rest of the organization.

所以就像有幾件事，比如 T&E 是其中最小的。最大的問題是當您查看我們的員工人數時，它還沒有出現，但我認為我們的銷售人員配備了充足的人員。正如您可能在 6 到 9 個月前從我們的評論中聽到的那樣，當時很難做到這一點。現在，我們不僅人員配備齊全，而且我們的營業額全面下降，不僅在銷售方面，而且在組織的其他部門也是如此。

So all of a sudden, if you look at our head count growth for this quarter, it is what I would call a peak and the highest I have ever seen since I've been here at ADP. That was necessary because there was some catch-up, which is why we -- I called it a grow-over issue from last year's first quarter, where we were definitely understaffed, didn't have enough people. And then all of a sudden, our revenues actually were outperforming. The number of clients was outperforming, so -- and you know how important retention is to us. So we set to basically staff up across the Board implementation, service and sales. And that's when you had that whole great resignation thing happening at the same time. And it was -- I mean, again, I don't think most companies go around talking about this, but we were trying to hire as fast and as many people as we could at that point.

所以突然之間，如果你看看我們本季度的員工人數增長，我會稱之為高峰，也是我在 ADP 工作以來見過的最高水平。這是必要的，因為有一些追趕，這就是為什麼我們 - 我稱之為去年第一季度的成長問題，我們肯定人手不足，沒有足夠的人。然後突然之間，我們的收入實際上表現出色。客戶數量表現出色，所以——你知道留住對我們來說有多重要。因此，我們基本上開始在執行、服務和銷售方面全面配備人員。就在那時，你同時發生了整個偉大的辭職事情。它是 - 我的意思是，我不認為大多數公司都在談論這個，但我們當時試圖盡可能快地招聘盡可能多的人。

The good news is we were successful. I think the better news is that puts us in, I think, in a good position in terms of staffing and sales, but also in terms of our service and implementation organizations. And now with declining turnover again, from a plan standpoint, besides planning for pays per control to be "flattish" in the second half, our head count growth declines, the growth of head count declines every quarter for the next 4 quarters. And I think that, I think, should help us feel good about this quarter and also about the fiscal year.

好消息是我們成功了。我認為更好的消息是，我認為這使我們在人員配備和銷售方面處於有利地位，而且在我們的服務和實施組織方面也處於有利地位。現在隨著營業額再次下降，從計劃的角度來看，除了計劃在下半年“持平”，我們的員工人數增長下降，未來四個季度每個季度的員工人數增長都在下降。我認為，我認為這應該有助於我們對本季度以及本財年感覺良好。

So I think technically, Don is correct. By the way, if you go back to ADP's 10-year history, this has been a weird 2 or 3 years like us not raising as we hadn't raised in the quarter, again, I don't know what you would have thought of that or what it would have meant, but I think that's pretty [dank] maybe can confirm or tell me I'm wrong, but like we weren't in the habit of changing a lot in the first quarter because this is -- how can we say this is a predictable, stable business that we know what we're doing and then changing (expletive) every quarter. It doesn't make sense.

所以我認為從技術上講，唐是正確的。順便說一句，如果你回到 ADP 的 10 年曆史，這是一個奇怪的 2 或 3 年，像我們一樣沒有籌集資金，因為我們在本季度沒有籌集資金，我不知道你會怎麼想或者這意味著什麼，但我認為這很 [dank] 也許可以確認或告訴我我錯了，但就像我們在第一季度沒有改變很多的習慣，因為這是 -我們怎麼能說這是一個可預測的、穩定的業務，我們知道我們在做什麼，然後每個季度都在變化（咒罵）。這沒有意義。

Now we have a pandemic, that's a different story. Like we struggled like everyone else to kind of keep a handle on what things were happening -- how things were happening on the way down and also on the way back up. But this is going to be a much more stable environment. I would hope some of you would welcome that. But with 10%, 11% growth organic and our headwinds from expenses abating here a little bit, I think we're in a pretty good position.

現在我們有大流行病，這是一個不同的故事。就像我們和其他人一樣努力掌握正在發生的事情——事情在下降的過程中以及在回升的過程中是如何發生的。但這將是一個更加穩定的環境。我希望你們中的一些人會對此表示歡迎。但是，隨著 10% 和 11% 的有機增長以及我們的開支逆風在這裡有所減弱，我認為我們處於一個相當不錯的位置。

Jason, the only other thing I would point out is that in addition to interest becoming more favorable and contributing to most of the raise as you can calculate on your own, FX obviously also got worse. So in this parallel universe without a higher interest rate, we would perhaps be absorbing that higher FX and not changing the outlook.

Jason，我唯一要指出的另一件事是，除了興趣變得更加有利和貢獻了大部分加薪，你可以自己計算，FX 顯然也變得更糟。因此，在這個沒有更高利率的平行宇宙中，我們可能會吸收更高的外匯而不改變前景。

Our next question comes from Bryan Bergin with Cowen.

我們的下一個問題來自 Bryan Bergin 和 Cowen。

First congrats to Carlos, on your success and Maria, on the promotion. I wanted to just start with a more specific follow-up on the bookings trends in the pipeline. Can you just give more color on what you're seeing in those forward sales indicators, lead volumes, sales cycles in recent weeks? And really just any discernible changes you've noticed there?

首先祝賀 Carlos 取得成功，祝賀 Maria 升職。我想首先對管道中的預訂趨勢進行更具體的跟進。您能否就最近幾週在這些遠期銷售指標、潛在客戶數量和銷售週期中看到的內容提供更多顏色？真的只是你在那裡註意到的任何明顯的變化嗎？

Yes. I think Maria can talk about -- I think she's actually been looking into a lot of the details around pipeline disorder. The only thing that I would add is color commentary because I was trying to defer to Maria on kind of the big picture in terms of bookings.

是的。我認為 Maria 可以談論 - 我認為她實際上一直在研究有關管道混亂的許多細節。我要添加的唯一內容是顏色評論，因為我試圖在預訂方面的大局觀上順從瑪麗亞。

But since I've been doing this for a long time, 44 quarters and then many years kind of watching from, I guess, a year before that as, not quite a year, but as President, and before that, I really paid close attention to all the stuff. And Maria mentioned it, but the problem with the crystal ball right now is that when we have the kind of finish we had, you saw how enthusiastic we were and how bullish we were in terms of our finish and whatnot. And almost predictably, when we have that kind of finish, about half of our business, we count the bookings when we sign a contract. And the other half, we only count the bookings once the client starts. And that portion of the business that -- like, by the way, that's the way most companies that sell to larger clients book their bookings, which is when you sign a contract. That's why it's called bookings. That has always been an issue. When we have this very strong quarter and very strong finish, the pull-forward stuff has been driving me crazy forever because we have very strong incentives and what we call accelerators in terms of commissions so further drive, and we want that because we want to get the revenue as quickly as possible, but that sometimes leads to kind of a weaker start.

但是因為我已經做了很長時間了，44個季度，然後很多年，我猜，在那之前的一年，不是一年，而是作為總統，在此之前，我真的付出了很多注意所有的東西。瑪麗亞提到了它，但現在水晶球的問題是，當我們完成了我們所擁有的那種結束時，你會看到我們是多麼的熱情，以及我們在結束和諸如此類方面是多麼的樂觀。幾乎可以預見，當我們完成大約一半的業務時，我們會在簽訂合同時計算預訂量。另一半，我們只在客戶開始後計算預訂量。順便說一下，這部分業務是大多數向大客戶銷售的公司預訂預訂的方式，也就是你簽訂合同的時候。這就是為什麼它被稱為預訂。這一直是個問題。當我們有這個非常強勁的季度和非常強勁的收尾時，向前推進的東西一直讓我發瘋，因為我們有非常強大的激勵措施，我們稱之為加速器的佣金如此進一步推動，我們想要這樣，因為我們想要盡快獲得收入，但這有時會導致起步較弱。

The problem here is that on top of that, now you have a macroeconomic challenge potentially, we definitely have a macroeconomic challenge in Europe. Luckily, it's not a huge part of our bookings. So it's hard to differentiate. But what I would tell you, again, back to color, the businesses that we count the bookings when they start are mostly the downmarket businesses. So that would be SBS, PEO, et cetera. We had double-digit bookings growth in those businesses.

這裡的問題是，最重要的是，現在你可能面臨宏觀經濟挑戰，我們肯定在歐洲面臨宏觀經濟挑戰。幸運的是，這不是我們預訂的重要部分。所以很難區分。但我要再次告訴你的是，我們在開始時計算預訂量的業務主要是低端市場業務。那就是 SBS、PEO 等。我們在這些業務中實現了兩位數的預訂量增長。

That makes me think that it's unlikely that, all of a sudden, we have an economic whatever challenge or disaster because why would those businesses still be performing the way they are. But I would just -- again forward-looking statement, I would say I don't know for sure that there isn't a problem in terms of demand or the economy or whatnot, but it doesn't feel from the first quarter like we could put our finger on something that says, holy cow, we have to put kind of the red flag or the yellow warning flag up just yet. And I don't know, Maria, if you have comments in terms of a little bit more tangible.

這讓我認為，突然之間，我們不太可能面臨經濟挑戰或災難，因為為什麼這些企業仍會以它們的方式運行。但我只是 - 再次前瞻性聲明，我會說我不確定在需求或經濟或其他方面是否存在問題，但從第一季度開始並不像我們可以把手指放在上面說的東西上，神聖的牛，我們必須把某种红旗或黃色警告旗升起來。我不知道，瑪麗亞，你是否有更具體的意見。

Yes. Thank you, Carlos. He's right. Carlos is right. I've been studying deeply the pipeline specifically of these businesses that recognize bookings that potentially have some of the pull forward into the fourth quarter. And that's primarily in the larger size type of organizations. And so in studying the pipeline kind of segment by segment, country by country, if you will, and deeply, it does appear that the pipelines are there, the pipelines are continuing to build when I think about deal cycle time, right? So you think about all the data points we are analyzing on a daily basis to really understand the question you're asking, Bryan, which is, is this an economic and macro, is this -- what is this?

是的。謝謝你，卡洛斯。他是對的。卡洛斯是對的。我一直在深入研究這些業務的管道，這些業務識別可能會在第四季度有所推動的預訂。這主要是在較大規模的組織中。因此，在逐段、逐個國家地研究管道時，如果你願意的話，並且深入地研究管道似乎確實存在，當我考慮交易週期時，管道正在繼續建設，對嗎？因此，您考慮一下我們每天分析的所有數據點，以真正理解您提出的問題，Bryan，這是一個經濟和宏觀問題，這是 - 這是什麼？

And the answer is, from a pipeline perspective, the pipelines are healthy. From a deal cycle time, let's go back to Carlos' commentary. It does appear that we did to have a lot of pull forward, and there were potentially not enough days to pull things into the first quarter. And we have -- again, what does that really mean in the macro? It's really returning to more pre-pandemic levels. So these are not concerning deal cycle times. These are actually more normal deal cycle times, the ones that we saw pre pandemic.

答案是，從管道的角度來看，管道是健康的。從交易週期開始，讓我們回到 Carlos 的評論。看來我們確實有很多前進的動力，而且可能沒有足夠的天數將事情拉到第一季度。我們有 - 再次，這在宏中真正意味著什麼？它真的回到了大流行前的水平。因此，這些與交易週期時間無關。這些實際上是我們在大流行前看到的更正常的交易週期時間。

What I'm referring to there is really and there used to be a time that it did take a lot of time to move larger deals through the system because so many individuals are involved, whether that's on the contracting side, the legal side. During the pandemic, there was a deal acceleration that happened, and a lot of that has to do with folks being stationary. That's no longer the case. We see that every day in terms of the world is back at work. And with that, that also has a tendency to slow down, if you will, the deal cycle time, again, back to pre-pandemic levels. So nothing that's alarming.

我指的是真的，曾經有一段時間，通過系統進行更大的交易確實需要很多時間，因為涉及到很多個人，無論是在合同方面，還是在法律方面。在大流行期間，發生了交易加速，這在很大程度上與人們靜止不動有關。情況不再如此。我們看到，就世界而言，每一天都在工作。有了這個，如果你願意的話，交易週期時間也有放緩的趨勢，再次回到大流行前的水平。所以沒什麼好擔心的。

And so I think this is really about a pipeline, normalization. The pipeline is strong; it's healthy. The demand is there. Despite what all the big companies are reporting in the news, we are seeing incredible strength amongst our client base. We're seeing demand for HCM. There is 6% pays per control growth. So as Carlos mentioned earlier, the jobs are there. Our clients are growing. Our products and offerings fit right into that sweet spot that everybody is still trying to solve for, and our pipelines are healthy.

所以我認為這實際上是關於管道，規範化。管道堅固；它很健康。需求就在那裡。儘管所有大公司都在新聞中報導，但我們在客戶群中看到了令人難以置信的實力。我們看到了對 HCM 的需求。每個控制增長有 6% 的報酬。正如 Carlos 之前提到的，工作就在那裡。我們的客戶正在增長。我們的產品和產品正好適合每個人仍在努力解決的最佳點，而且我們的管道是健康的。

So at this juncture, there really isn't a macro broad-based trend that we can see besides the watch areas we've called out. I think the only other comment I would make, I alluded to it earlier, is please remember that when a quarter ago, we gave the guidance for the 6% to 9%. The way that we thought about the year, first and foremost, the first quarter is the lightest quarter for us from a pure dollar perspective. So it's the smaller contributor from a dollar perspective on the full year.

所以在這個關頭，除了我們已經提到的觀察領域之外，我們真的看不到一個宏觀的廣泛趨勢。我認為，我之前提到的唯一其他評論是，請記住，當一個季度前，我們給出了 6% 到 9% 的指導。我們思考這一年的方式，首先，從純美元的角度來看，第一季度對我們來說是最輕的一個季度。因此，從美元的角度來看，它是全年的較小貢獻者。

The way that we planned the year, which we talked about on the 6% to 9% bookings guidance that we gave a quarter ago was really assuming some elements of a slowdown in the back half, specifically in the fourth quarter. So it's really about this quarter, i.e., the current one that we're in, which is the second quarter and the third quarter, and so in looking at where we stand today, we feel confident in the 6% to 9% in terms of how we plan for it. We didn't assume massive and severe recession, but we definitely have assumptions in there that we feel confident at this point that we can execute against.

我們計劃今年的方式，我們在一個季度前給出的 6% 到 9% 的預訂指導中談到，實際上是假設後半段，特別是第四季度出現放緩的一些因素。所以這真的是關於這個季度，即我們目前所處的那個季度，即第二季度和第三季度，所以看看我們今天的立場，我們對 6% 到 9% 的條款充滿信心我們如何計劃它。我們沒有假設大規模和嚴重的衰退，但我們肯定有假設，我們在這一點上有信心可以執行。

And one of the things -- if I can just add like one of the beauties of our business model is that bookings are, for sure, an incredibly important thing, especially kind of over the longer term. But I mean, I hope it's obvious from a revenue standpoint, again, with visibility only for the next 2, 3 quarters, we have -- it's really about converting prior sales, which were incredibly strong in prior bookings. I mean you saw what our bookings results were for the fourth quarter and for the year. So that's the stuff that now turns into revenue in those businesses where we recognize the booking at the time we sign a contract.

其中一件事——如果我可以補充一下我們商業模式的一個優點，那就是預訂肯定是一件非常重要的事情，尤其是從長遠來看。但我的意思是，我希望從收入的角度來看，這一點很明顯，我們只能在接下來的 2、3 個季度看到——這實際上是關於轉換之前的銷售，這在之前的預訂中非常強勁。我的意思是你看到了我們第四季度和全年的預訂結果。這就是我們在簽訂合同時確認預訂的那些業務中現在轉化為收入的東西。

So that -- it's just -- I know it's obvious but just a reminder because this business doesn't -- we're not selling widgets, where if you stop selling widgets, like all of a sudden you're back to 0 next quarter, like the -- I think we have a solid revenue plan that I think reflects, as Maria said, what I think was already a pretty conservative number in terms of bookings growth, particularly in the back half of the year. So we may have other issues like FX on the negative side, clients with some interest may help even more or may help less, but I don't think the bookings issue is a fiscal '23 focus item in terms of impact on revenue. .

所以 - 這只是 - 我知道這很明顯，但只是提醒一下，因為這個業務不 - 我們不銷售小部件，如果你停止銷售小部件，就像突然之間你會回到 0 下一個季度，就像 - 我認為我們有一個可靠的收入計劃，我認為正如瑪麗亞所說，我認為在預訂增長方面已經是一個相當保守的數字，特別是在今年下半年。因此，我們可能會在負面方面遇到其他問題，例如外匯，有興趣的客戶可能會提供更多或更少的幫助，但我不認為預訂問題是 23 財年對收入的影響的重點項目。 .

Okay. All right. A follow-up on retention then. It seems like it's fair to say you beat your plan in 1Q. But what do you attribute that 1Q success to? Was it more a function of a slower rate of SMB out of business losses? Or do you think it also did better on the controllable factors as well?

好的。好的。然後對保留進行跟進。可以說您在 1Q 中完成了計劃，這似乎是公平的。但是您將 1Q 的成功歸因於什麼？是否更多的是由於 SMB 的業務損失率較慢？還是您認為它在可控因素上也做得更好？

It's really -- I think it's -- the controllable factors, I think, are the most satisfying part of the whole story because the story is kind of playing out a little bit the way we expected, which is small business is kind of in the process of kind of normalizing. But the really -- by the way, positive ironically in our international business, which might not be so ironic because the challenges economically, there are probably getting -- convincing people that they should stay put.

這真的——我認為是——可控因素，我認為，是整個故事中最令人滿意的部分，因為這個故事有點像我們預期的那樣，這是小企業在一種標準化的過程。但實際上——順便說一句，具有諷刺意味的是，在我們的國際業務中，這可能並不那麼具有諷刺意味，因為經濟上的挑戰可能正在——說服人們他們應該留在原地。

I don't want to say that it's not all great execution because we have a great leader in international, and we have the former great leader of international (inaudible), which is Don McGuire. So there's a lot of great things that have happened in that business that are probably powering some underlying improvement in retention. So some of it is probably inertia as a result of what's happening in the economic environment there.

我不想說這並不全是出色的執行力，因為我們在國際賽場上有一位偉大的領袖，而且我們有前國際賽場的偉大領袖（聽不清），他就是唐·麥奎爾。因此，該業務中發生了許多偉大的事情，這些事情可能正在推動保留率的一些潛在改善。因此，由於那裡的經濟環境正在發生的事情，其中一些可能是慣性。

But the most satisfying part of the whole story here is what's happening in the mid-market, where I think some fundamental improvements that we made pre-pandemic, as you remember all the pain in terms of the migrations and then the improvements in product, the UX experience improvements, all those things, it just seems like it's ratcheted up the "potential", the maximum potential retention, if you will, for our mid-market business, which was a record this quarter as well. Clearly, the down market, the pace of normalization of the down market has some impact. But the big story, I think, this quarter was really the mid-market, and our international business has helped a lot on the retention side.

但整個故事中最令人滿意的部分是中端市場正在發生的事情，我認為我們在大流行前做出了一些根本性的改進，因為你還記得遷移方面的所有痛苦，然後是產品的改進， UX 體驗的改進，所有這些，似乎它增加了我們的中端市場業務的“潛力”，即最大潛在保留率，這也是本季度的記錄。顯然，對於羽絨行情的正常化步伐，對羽絨行情有一定的影響。但我認為，重要的是，本季度確實是中端市場，我們的國際業務在保留方面有很大幫助。

Bryan, I'll just confirm the down market didn't really contribute to the outperformance versus our expectations. So the mid-market was clearly the bigger piece.

布萊恩，我只是確認下跌的市場並沒有真正促成超出我們預期的表現。因此，中端市場顯然是更大的一塊。

Our next question comes from Samad Samana with Jefferies. .

我們的下一個問題來自 Jefferies 的 Samad Samana。 .

Just congrats that is given so far as well. Maybe just a question. When I think about the transitioning of the Workforce Now base to the new UX and the progress there and tamping down market, how should we think about maybe that were going to translate into monetary benefits? Is that more of a benefit in gross margin for a lower cost to serve or just less back-end work or higher retention, all of the above? Just help us maybe map what the kind of economic outcome is from moving over to the new UX for ADP.

只是恭喜，到目前為止也是如此。也許只是一個問題。當我考慮將 Workforce Now 基礎過渡到新的 UX 以及那裡的進展和打壓市場時，我們應該如何考慮可能會轉化為金錢收益？是因為更低的服務成本或只是更少的後端工作或更高的保留率，對毛利率有更大的好處，以上所有這些？只是幫助我們繪製出從 ADP 遷移到新 UX 的經濟結果。

I have a lot of time for our new UX. I can't post about it enough. And the majority of that reason is all of the above. We expect this to impact our clients' satisfaction, their retention, our ability to demo more, sell more. In terms of teasing out the specific results difficult, but the answer to your question is all of the above.

我有很多時間來開發我們的新用戶體驗。我不能發布足夠的信息。大部分原因是以上所有。我們希望這會影響我們客戶的滿意度、他們的保留率、我們進行更多演示和銷售更多的能力。在梳理出具體結果方面很難，但你的問題的答案就是以上所有。

Got you. And then maybe one for Don, any thoughts on [locking in] or changing duration with rates where they are? Just as I think if I look back historically at the presentation, even yields currently are higher than they've been at kind of any time for even what the long end of the portfolio looks like. Any view on changing duration? I know you guys get what the mix is, but I'm curious if it were blocking it in for a longer duration.

得到你。然後也許是給唐的一個，關於[鎖定]或改變持續時間與他們所在的利率的任何想法？正如我認為，如果我回顧歷史上的演示文稿，即使是投資組合的長端看起來，目前的收益率也高於任何時候的水平。對改變持續時間有什麼看法嗎？我知道你們知道混合是什麼，但我很好奇它是否會在更長的時間內阻止它。

Yes, I'm going to start on this, but something tells me Carlos won't be able to resist following up on whatever I have to say here. So I guess I would say that the laddering strategy that was implemented a number of years ago has delivered great returns. And while I think everyone can see the temptation of changing the duration and trying to benefit more from short-term rates, rates will either normalize or they may even come down again at some point in the future.

是的，我將從這個開始，但有些事情告訴我，Carlos 將無法抗拒跟進我在此要說的任何內容。所以我想我會說，多年前實施的階梯式策略帶來了巨大的回報。雖然我認為每個人都可以看到改變期限並試圖從短期利率中獲得更多收益的誘惑，但利率要么會正常化，要么甚至可能在未來某個時候再次下降。

So this laddering strategy that's been deployed over the number of years has served us very well, and we expect it will continue to serve us well. And not to say that this question doesn't come up from time to time when we discuss it. But every time that we look at it, we -- you really either -- you're making a bet for today as opposed to a bet for down the road. And given the positive experience we've had, it doesn't really behoove us to make any substantial changes to a policy and a program that has been doing very, very well. Carlos, I'm sure...

因此，多年來部署的這種階梯式策略對我們非常有用，我們預計它將繼續為我們提供良好的服務。並不是說這個問題在我們討論時不會不時出現。但是每次我們看到它時，我們 - 你真的要么 - 你在為今天下注，而不是在未來的路上下注。鑑於我們所擁有的積極經驗，我們真的不應該對一直做得非常好的政策和計劃做出任何實質性的改變。卡洛斯，我敢肯定...

Don, I have nothing to add other than -- I obviously picked the right time to retire. Very well said. And because I think that encapsulates lots of other things where we focus more on the longer-term in the medium term rather than because, again, if rates do normalize, as you said, we're going to be very grateful that we -- that our extended portfolio that we took advantage of these "higher rates" that will help us for 2, 3, in some cases, 5 years down the road.

唐，除了——我顯然選擇了正確的退休時間之外，我沒有什麼要補充的。說得好。而且因為我認為這包含了許多其他事情，我們更多地關注中期的長期，而不是因為再次，如果利率確實正常化，正如你所說，我們將非常感激我們 -我們擴展的投資組合利用了這些“更高的利率”，這將在未來 2 年、3 年，在某些情況下，5 年內幫助我們。

So it's the right -- we're not a financial services company. We're not a bank, and that's not the kind of bets that we're trying to make here. This is just happens to be a nice little windfall as a result of a business model that we have that allows us to kind of manage float income at a very, very large scale. And anyway, well said.

所以這是正確的——我們不是一家金融服務公司。我們不是銀行，這也不是我們想要在這裡下的賭注。由於我們擁有的商業模式使我們能夠以非常非常大的規模管理浮動收入，這恰好是一筆不錯的意外收穫。無論如何，說得好。

I think we all appreciate the institutional continuity as the transition occurs.

我認為我們都讚賞過渡發生時的製度連續性。

Thank you.

謝謝你。

Our next question comes from Mark Marcon with Baird.

我們的下一個問題來自 Mark Marcon 和 Baird。

Carlos, congratulations on a great tenure not just as CEO but everything that you did prior to that. And Maria, look forward to working with you and getting to know you even more over the coming years. I'm wondering, can you talk a little bit about how you're set up for this current fall selling season? Certainly, you've got a number of big product improvements. Which ones could we end up seeing like being incremental in terms of PEPM? And just how strong do you think the sales momentum could be? How are you thinking about your marketing efforts, particularly with all the improvements that you've got in place?

Carlos，恭喜你在擔任 CEO 的任期內，以及你在此之前所做的一切。瑪麗亞，期待與您合作，並在未來幾年進一步了解您。我想知道，你能談談你是如何為當前的秋季銷售季節做好準備的嗎？當然，您已經獲得了許多重大的產品改進。就 PEPM 而言，我們最終會看到哪些是增量的？您認為銷售勢頭有多強勁？您如何看待您的營銷工作，尤其是在您已經進行了所有改進的情況下？

Yes. Thanks, Mark. And similarly, I look forward to spending more time together, and I've appreciated the time thus far that we spent together getting to know each other. So in terms of selling season, we do feel, I think Carlos mentioned, I think the first call-out I would make, I know you asked specifically about products and contributions PEPM, but I think it's important to go back to the discussion that Carlos had around head count.

是的。謝謝，馬克。同樣，我期待著花更多的時間在一起，我很感激迄今為止我們在一起認識彼此的時間。因此，就銷售季節而言，我們確實覺得，我認為 Carlos 提到，我認為我會提出的第一個呼籲，我知道您專門詢問了產品和貢獻 PEPM，但我認為回到討論很重要卡洛斯大約有人數。

So I've been -- I spent some of last year and last fiscal year speaking about a flattish head count growth as it related to sales. We committed to single-digit growth heading into the quarter, and I'm pleased to report, as Carlos alluded to, that we are ahead of those plans. And so what that means is that we have more quota carriers in the system as we head into selling season, significantly more than we expected but significantly more than last selling season. And that, in and of itself, is the biggest contributor that we have to our overall results as we think about the productivity of more people in the system and, as Carlos also mentioned, with tenure of those associates picking up the increase in productivity of our sellers as they lap the 10-year band.

所以我一直 - 我在去年和上一財年的一些時間裡談到了與銷售相關的人數增長持平。我們承諾在本季度實現個位數增長，我很高興地報告，正如 Carlos 所暗示的那樣，我們領先於這些計劃。因此，這意味著隨著我們進入銷售旺季，我們的系統中有更多的配額承運商，大大超過我們的預期，但也比上一個銷售旺季要多得多。這本身就是我們對整體結果的最大貢獻，因為我們考慮到系統中更多人的生產力，正如 Carlos 還提到的那樣，隨著這些員工的任期加快了生產力的提高我們的賣家在 10 年樂隊中一圈。

So I think that's the biggest variable I see. We do have a lot of amazing things as it relates to products in the system. Certainly, the new user experience being broad-based across all of the products gives the sellers an extra step in their momentum as they head into the end of the year as it relates to (inaudible) nature. I mentioned some of the other products such as the voice of the employee and our intelligent self-service, which both serve us up through our mid-market. So that mid-market value proposition is continuing to grow. The other is the strength that we are seeing in that PEO and the HRO are comprehensive and managed services businesses as it relates to customers that are continuing to face the complexity.

所以我認為這是我看到的最大變數。我們確實有很多令人驚奇的事情，因為它與系統中的產品有關。當然，新的用戶體驗在所有產品中都具有廣泛的基礎，因為這與（聽不清）性質有關，賣家在進入年底時的勢頭會更進一步。我提到了其他一些產品，例如員工的聲音和我們的智能自助服務，它們都通過我們的中端市場為我們服務。因此，中端市場價值主張正在繼續增長。另一個是我們看到的優勢，即 PEO 和 HRO 是綜合性和託管服務業務，因為它與繼續面臨複雜性的客戶相關。

By the way, whether they are up market, in the mid-market or even down market needing more of those tools to navigate the complexity of being an employer, and so we see tremendous strength there. And so we're making good progress on our Next Gen. Very pleased to see specifically on our Next Gen Payroll how that's resonating in the mid-market with Workforce Now. And as we continue to increase the addressable area that we are able to target with those offerings undoubtedly will yield, as you suggested, greater sales, greater PEPM as well some of these enhanced features and products that are served up through our existing platforms that I've mentioned before.

順便說一句，無論他們是在高端市場、中端市場還是低端市場，都需要更多這些工具來應對作為雇主的複雜性，因此我們在那裡看到了巨大的力量。因此，我們在下一代方面取得了良好的進展。很高興看到我們的下一代工資單上的具體情況如何與現在的勞動力在中端市場產生共鳴。正如您所建議的，隨著我們繼續增加我們能夠以這些產品為目標的可尋址區域，無疑將產生更大的銷售額、更大的 PEPM 以及通過我們現有平台提供的一些增強功能和產品，我'之前提到過。

That's great. And then with regards to Next Gen Payroll, can you give us an update in terms of what percentage of the new Workforce Now clients are now getting Next Gen Payroll?

那太棒了。然後關於 Next Gen Payroll，您能否告訴我們最新的 Workforce Now 客戶現在獲得 Next Gen Payroll 的百分比？

Yes. So we are -- we committed to -- and I've been talking about kind of that 50% of our overall mid-market and Workforce Now clients, and we continue to make progress on that. So we're not entirely at the-- entire market that work Workforce outsource today. But each and every day, actually, in every release, we continue to clear the path for more and more opportunities to be able to participate in that Next Gen offering, which is truly the game changer for ADP as it relates to the innovation there. .

是的。所以我們 - 我們承諾 - 我一直在談論我們整體中端市場和 Workforce Now 客戶的 50%，我們繼續在這方面取得進展。因此，我們並不完全處於當今勞動力外包的整個市場。但實際上，每一天，在每個版本中，我們都在繼續為越來越多的機會參與下一代產品掃清道路，這確實是 ADP 的遊戲規則改變者，因為它與那裡的創新有關。 .

We have time for one more question, and it comes from David Togut with Evercore ISI.

我們有時間再提一個問題，它來自 Evercore ISI 的 David Togut。

Congratulations, Carlos and Maria, Carlos, all the best for you in the next chapter. Don, a question for you on pays per control growth. 6%, clearly well above the 2% to 3% guide. But as you noted, contemplated, can you walk us through the sequencing of kind of pays per control in terms of what's embedded in the quarterly thought process as we go through FY '23?

恭喜，卡洛斯和瑪麗亞，卡洛斯，下一章一切順利。唐，關於按控制增長付費的問題。 6%，明顯高於 2% 到 3% 的指導值。但是，正如您所指出的那樣，您是否可以根據我們在 23 財年的季度思維過程中嵌入的內容來引導我們按控制支付類型的排序？

Yes. So I think we were happy with 6% growth in the first quarter. And once again, back to Carlos' earlier comments, if you had believed all the economic forecasts, you might not have been expecting to see that stronger growth in pays per control. But we do continue to see the pays per control growth moderating down in the first half of this year. And as we shared -- as I shared in the prior -- the prepared comments, we have virtually 0 pays per control growth in the back half of the year.

是的。所以我認為我們對第一季度 6% 的增長感到滿意。再一次，回到 Carlos 之前的評論，如果你相信所有的經濟預測，你可能不會期望看到每個控制的薪酬增長更強勁。但我們確實繼續看到今年上半年每個控制費用增長放緩。正如我們分享的 - 正如我在之前分享的那樣 - 準備好的評論，我們在今年下半年的控制增長幾乎為零。

So we do expect that we should, given the strength of the first quarter, the first half should be a little bit better. I think we've reflected that in some of our guidance here already. And as we go through the next few months, we will be in a position to better decide whether we think we're going to be bullish or bearish on what's going to happen in the back half. And quite frankly, I think we'd all like to be very bullish about what's going to happen based on the first quarter's results, but I think if we did that, we'd kind of look a little bit foolish given all the predictions and now the storm clouds that people are talking about. So 6% first quarter slowing for the first half and then essentially very little growth if any, in the back half is what we're looking at.

所以我們確實希望，鑑於第一季度的實力，上半年應該會好一點。我認為我們已經在我們的一些指導中反映了這一點。在接下來的幾個月裡，我們將能夠更好地決定我們是看漲還是看跌後半部分將發生的事情。坦率地說，我認為我們都希望根據第一季度的結果非常看好將會發生的事情，但我認為如果我們這樣做了，鑑於所有的預測和現在人們正在談論的風暴雲。因此，第一季度上半年放緩了 6%，然後基本上幾乎沒有增長，如果有的話，我們正在關注後半部分。

Yes. And I think the simple math is, again, rather than getting into individual quarters because that talk about trying to like -- it's very hard to pin down that exact number. But I think ballpark, 6% for the first half, 0% for the second half gets you to 2% to 3% that you have for the full year. I mean that's probably the right -- obviously, the way we laid it out, it's slightly different than that but that's close enough, I think, for what you're trying to accomplish, I think.

是的。而且我認為簡單的數學是，再次，而不是進入個別區域，因為談論試圖喜歡 - 很難確定確切的數字。但我認為，上半年為 6%，下半年為 0%，可以讓你達到全年的 2% 到 3%。我的意思是這可能是正確的 - 顯然，我們的佈局方式略有不同，但我認為這已經足夠接近你想要完成的事情了。

Appreciate that insight. Just as a quick follow-up. Looking at Slide 6 under the PEO margin footnote, PEO margin up 80 basis points year over year which obviously is well above your pervious guidance for the full year and it's so well above your upgraded guidance. It's 0 to 25 basis point increase for the full year, can you walk us through how big the workers' compensation reserve adjustment was in the September quarter and how you expect that to trend through the year?

欣賞這種洞察力。就像快速跟進一樣。查看 PEO 利潤率腳註下的幻燈片 6，PEO 利潤率同比增長 80 個基點，這顯然遠高於您之前的全年指導，也遠高於您的升級指導。全年增加 0 到 25 個基點，您能告訴我們 9 月季度的工人補償準備金調整幅度有多大，以及您預計全年的趨勢如何？

Sure. I mean, I can give you the specific numbers, you'll see them later in the queue anyway. So the -- we had a $14 million positive adjustment in the first quarter, and that compares to a $10 million positive adjustment in the first quarter of last year. So not that significant, $4 million, give or take. So that's the -- those are the raw numbers. We do not expect to see as good a reserve release in this fiscal year as we saw last year. There's still several quarters to go through, and the actuaries will let us know what those numbers are, but we are contemplating the same level of reserve adjustment or recovery as we did in FY '22.

當然。我的意思是，我可以給你具體的數字，反正你稍後會在隊列中看到它們。所以 - 我們在第一季度進行了 1400 萬美元的正調整，而去年第一季度進行了 1000 萬美元的正調整。所以沒那麼重要，400萬美元，給予或接受。這就是 - 這些是原始數字。我們預計本財年的儲備釋放不會像去年那樣好。還有幾個季度要經歷，精算師會讓我們知道這些數字是多少，但我們正在考慮與 22 財年相同水平的準備金調整或恢復。

The only -- the other color commentary that I would add is, I think the PEO -- again, if you look at last year, it's obviously, we've seen, as expected, some deceleration, but I would call 12%, that employee growth is still pretty strong. That obviously requires investment, right, in terms of service, implementation expense, et cetera. And so I would say that the PEO is one of those places where we were really adding a lot in terms of expense and resources from a place where we were not where we needed to be, call it, last year's first quarter. So that's the poster child, I think, for this kind of grow-over expense situation that we have.

唯一 - 我要補充的另一種顏色評論是，我認為 PEO - 再次，如果你看一下去年，很明顯，我們已經看到，正如預期的那樣，一些減速，但我認為是 12%，員工增長仍然相當強勁。這顯然需要在服務、實施費用等方面進行投資。因此，我想說的是，PEO 是我們真正在費用和資源方面增加了很多的地方之一，我們不需要去的地方，稱之為去年第一季度。我認為，這就是我們所擁有的這種過度支出情況的典型代表。

But the good news is, I think, as we are -- we're staffed. Again, turnover is improving across the board in terms of all parts of ADP. And I'm talking to other CEOs, I think this is happening kind of across, things are just kind of settling down. That helps a lot because improvements in tenure help a lot in terms of productivity and just getting the work done.

但好消息是，我認為，就像我們一樣——我們有工作人員。同樣，就 ADP 的所有部分而言，營業額正在全面改善。我正在與其他首席執行官交談，我認為這正在發生，事情正在安定下來。這很有幫助，因為任期的改進在生產力和完成工作方面有很大幫助。

This concludes our question-and-answer portion for today. I am pleased to hand the program over to Carlos Rodriguez for closing remarks.

今天的問答部分到此結束。我很高興將節目交給 Carlos Rodriguez 做閉幕詞。

Well, what can I say? Another disappointing quarter where no one1 asked about the dividend. So let me just say that if the Board -- because obviously I don't want to get ahead of the Board, but if the Board approves a dividend increase in November, this will be our 48th year of increasing dividends, which I think is a pretty elite group out there. And if you look at our payout ratio and you assume the Board will want to stay in the same payout ratio, you can do the math in terms of what's going to happen with our dividend. I think people really way underestimate. I hope this doesn't become an environment where, for the next 10 years, people are very focused on dividends because that has its own negative implications. But if you look at over 50 years or 70 years or 100 years, dividends matter, right? And compounding growth of dividends matters a lot.

好吧，我能說什麼呢？另一個令人失望的季度，沒有人詢問股息。所以我只想說，如果董事會——因為顯然我不想超越董事會，但如果董事會批准在 11 月增加股息，這將是我們增加股息的第 48 年，我認為這是一個漂亮的精英團體。如果您查看我們的派息率並假設董事會希望保持相同的派息率，您可以根據我們的股息將發生什麼進行數學計算。我認為人們真的低估了。我希望這不會成為一個環境，在接下來的 10 年裡，人們非常關注股息，因為這有其自身的負面影響。但如果你看超過 50 年、70 年或 100 年，股息很重要，對吧？股息的複合增長非常重要。

If you look at ADP's return and did a little math since we went public, which is why I was bragging about this being one of the most successful commercial enterprises in history, and again, and all of you have the same HP 12C calculators, you do that math, it's a pretty important driver of overall returns. So I'm incredibly proud of that.

如果你看看 ADP 的回報，並在我們上市後做了一點數學計算，這就是為什麼我吹噓它是歷史上最成功的商業企業之一，而且你們所有人都擁有相同的 HP 12C 計算器，你算一下，這是整體回報的一個非常重要的驅動因素。所以我為此感到無比自豪。

Maria gets to be the person who will preside over the celebration, again, forward-looking statements assuming we get there, of reaching 50 years, which will make us a dividend king. And I think there's only like less than 15 companies that have accomplished that, and some pretty incredible names.

瑪麗亞將成為主持慶祝活動的人，再次，假設我們到達那裡的前瞻性陳述，達到 50 年，這將使我們成為股息之王。而且我認為只有不到 15 家公司做到了這一點，而且還有一些非常令人難以置信的名字。

So that's the only thing I want to talk about was the dividend and the one last comment I have is what I've always said, and I'll say it again, I'm incredibly grateful. I'm grateful to my team. I'm grateful to Maria. I'm grateful to the Board. But the people who really get all the work done are the people on the front lines here at ADP, the 60,000 associates that make everything happen for us. There's something that Henry Taub put in the water that has created this culture, a can-do culture of delivering consistent results, not just from a financial standpoint before our clients. I think it's just fundamental to what we do to our DNA. And I'm so proud of our associates in terms of what I've seen them do throughout my career here at ADP, but particularly over the last 3 years, which were unbelievably challenging.

所以我唯一想談的是股息，我最後的評論是我一直說的話，我會再說一遍，我非常感激。我很感謝我的團隊。我很感謝瑪麗亞。我感謝董事會。但真正完成所有工作的人是 ADP 前線的人員，60,000 名員工為我們完成了一切。亨利陶布投入了一些東西，創造了這種文化，一種能夠提供一致結果的積極進取的文化，而不僅僅是從我們客戶面前的財務角度來看。我認為這只是我們對 DNA 所做的事情的基礎。我為我們的同事感到自豪，因為我在 ADP 的整個職業生涯中看到他們所做的一切，尤其是在過去 3 年中，這充滿了難以置信的挑戰。

And I know many other companies and many other employees of other companies stepped up to the plate. So I know that we're not unique, but I only know what I know, and I only know the people I know, and they're great people doing great things every day for our clients. And that -- doing that is what has delivered the results that you guys enjoy as investors. So never forget that it all starts with our associates.

我知道許多其他公司和其他公司的許多其他員工也加入了這一行列。所以我知道我們不是獨一無二的，但我只知道我所知道的，我只認識我認識的人，他們是每天為我們的客戶做偉大事情的好人。而那 - 這樣做就是帶來了你們作為投資者所享受的結果。所以永遠不要忘記，這一切都始於我們的員工。

I thank you for listening. This is my last earnings call after 44 of them. And like I said, I won the Super Bowl, and I like the analogy to the dolphins. I'm not sure that I had a perfect season ever. I made plenty of mistakes, I learned from them and made myself and ADP a better and stronger company, but I definitely feel like I have one of those Super Bowl rings on. So I may have to go buy something a little bit bigger in terms of jewelry, so I can brag about it.

我感謝你的聆聽。這是我在 44 人之後的最後一次財報電話會議。就像我說的，我贏得了超級碗，我喜歡和海豚做類比。我不確定我是否有一個完美的賽季。我犯了很多錯誤，我從中吸取了教訓，使我自己和 ADP 成為了一家更好、更強大的公司，但我絕對覺得自己戴上了超級碗戒指之一。所以我可能不得不去買一些在珠寶方面大一點的東西，這樣我就可以吹噓它了。

But thanks again for listening to me all these years, putting up with me. And as I said, to our leaders and to our associates that I remain their servant leader. I remain your servant leader now moving on to becoming a shareholder and also to a director. Thank you very much.

但再次感謝這些年來聽我說，忍受我。正如我所說，對我們的領導人和我們的同事，我仍然是他們的僕人領袖。我仍然是你的僕人領袖，現在繼續成為股東和董事。非常感謝。

Thank you for participating in today's program. You may now disconnect. Everyone, have a great day.

感謝您參加今天的節目。您現在可以斷開連接。大家，有一個美好的一天。