自動資料處理 (ADP) 2023 Q3 法說會逐字稿

Good morning. My name is Michelle, and I'll be your conference operator. At this time, I would like to welcome everyone to ADP's Third Quarter Fiscal 2023 Earnings Call.

早上好。我叫米歇爾，我將擔任您的會議接線員。此時此刻，我想歡迎大家參加 ADP 2023 財年第三季度財報電話會議。

I would like to inform you that this conference is being recorded. (Operator Instructions). I will now turn the conference over to Mr. Danny Hussain, Vice President, Investor Relations. Please go ahead.

我想通知你，這次會議正在錄製中。 （操作員說明）。我現在將會議轉交給投資者關係副總裁 Danny Hussain 先生。請繼續。

Thank you, Michelle, and welcome everyone to ADP's Third Quarter Fiscal 2023 Earnings Call. Participating today are Maria Black, our President and CEO; and Don McGuire, our CFO.

謝謝米歇爾，歡迎大家參加 ADP 2023 財年第三季度財報電話會議。今天參加的有我們的總裁兼首席執行官 Maria Black；和我們的首席財務官 Don McGuire。

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.

今天早上早些時候，我們發布了本季度的業績。我們的收益資料可在 SEC 網站和我們的投資者關係網站 investors.adp.com 上找到，您還可以在此處找到與今天的電話會議一起發布的投資者介紹。

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.

在我們的電話會議中，我們將參考非 GAAP 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。在我們的收益發布中可以找到對這些項目的描述以及非 GAAP 措施與最具可比性的 GAAP 措施的調節。

Today's call will also contain forward-looking statements that refer to future 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.

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美國證券交易委員會提交的文件，以獲取有關可能導致實際結果與我們當前預期存在重大差異的因素的更多信息。

I'll now turn it over to Maria.

我現在將其交給 Maria。

Thank you, Danny, and thank you, everyone, for joining us. For our third quarter, we delivered strong results, including 10% organic constant currency revenue growth, 110 basis points of adjusted EBIT margin expansion and 14% adjusted EPS growth. Our continued solid financial performance underscores the power of our innovative and mission-critical HCM solutions that serve over 1 million diverse clients around the world as well as our highly recurring revenue business model.

謝謝丹尼，也謝謝大家加入我們。對於我們的第三季度，我們取得了強勁的業績，包括 10% 的有機恆定貨幣收入增長、110 個基點的調整後息稅前利潤率擴張和 14% 的調整後每股收益增長。我們持續穩健的財務業績凸顯了我們為全球超過 100 萬不同客戶提供服務的創新和關鍵任務 HCM 解決方案的強大功能，以及我們高度經常性收入的業務模式。

As usual, I'll start with some highlights from the quarter. The demand environment was healthy overall. And in Q3, we drove another quarter of solid Employer Services, new business bookings growth, representing a record Q3 bookings amount. Bookings performance continues to be particularly strong in our down market portfolio. In Q3, we sold and started over 60,000 new RUN clients where a new user experience has helped us reach record level new client satisfaction rate these past few quarters. We also had strong bookings results in our insurance and retirement services offerings supported not only by legislative tailwinds but also by the competitive positioning of our down market HCM ecosystem.

像往常一樣，我將從本季度的一些亮點開始。需求環境總體健康。在第三季度，我們又推動了另一個季度穩健的雇主服務、新業務預訂增長，代表了創紀錄的第三季度預訂量。在我們低迷的市場組合中，預訂表現仍然特別強勁。在第三季度，我們銷售並啟動了超過 60,000 個新的 RUN 客戶，新的用戶體驗幫助我們在過去幾個季度達到了創紀錄的新客戶滿意度。我們在保險和退休服務產品方面也取得了強勁的預訂業績，這不僅得到了立法順風的支持，還得到了我們低端市場 HCM 生態系統的競爭定位的支持。

Demand for our Employer Services HR Outsourcing Solutions remained high, and we recently reached the 10,000 client mark. We also saw continued booking strength in our compliance-oriented solutions, including tax remittance and wage payments, which have always been key differentiators for us on a year-to-date basis, we are within our bookings guidance range and are trending in line with our expectations from the outset of the year, and we look forward to finishing the year with a strong close.

對我們的雇主服務人力資源外包解決方案的需求仍然很高，我們最近達到了 10,000 個客戶大關。我們還看到我們以合規為導向的解決方案的預訂量持續強勁，包括稅收匯款和工資支付，這一直是我們年初至今的主要差異化因素，我們在我們的預訂指導範圍內，並且趨勢與我們從年初開始的期望，我們期待以強勁的收尾結束這一年。

Our Employer Services retention rate came in better than expected once again. While we continue to experience normalization in our down market out of business rates, this was offset by the strong retention rate in our U.S. mid-market and international businesses, both of which continue to benefit from years of improving client satisfaction.

我們的雇主服務保留率再次好於預期。雖然我們在低迷市場的業務率繼續正常化，但這被我們美國中端市場和國際業務的強勁保留率所抵消，這兩項業務繼續受益於多年來不斷提高的客戶滿意度。

As such, we're pleased to be raising our full year retention guidance. Our Employer Services pays per control grew 4% for the quarter and continues to decelerate at a very gradual pace. As we have seen for several quarters now, layoffs at many larger companies have been offset by the labor demand elsewhere, which in total has resulted in year-over-year employment growth. With this continued resilience, we're pleased to expect the higher end of our previous pays per control guidance range.

因此，我們很高興提高我們的全年保留指導。我們的雇主服務按控制付費在本季度增長了 4%，並繼續以非常緩慢的速度減速。正如我們幾個季度以來所看到的那樣，許多大公司的裁員已被其他地方的勞動力需求所抵消，這總體上導致了就業人數的同比增長。憑藉這種持續的彈性，我們很高興地期待我們之前的每控制指導範圍的較高端。

Last, on our PEO, while growth in revenue and average worksite employees continued to decelerate this quarter. We were pleased to see PEO bookings growth reaccelerate nicely in Q3, especially in March. This represented a much better performance than we experienced in Q2 and resulted in our largest quarter for PEO bookings ever.

最後，在我們的 PEO 上，本季度收入和平均工作場所員工的增長繼續放緩。我們很高興看到 PEO 預訂量在第三季度再次加速增長，尤其是在 3 月份。這代表了比我們在第二季度經歷的更好的表現，並導致我們有史以來最大的 PEO 預訂季度。

Despite the current inflationary environment and broad-based macroeconomic uncertainty, we are focused on our PEO sales execution and on delivering continued strong client satisfaction, and we remain confident in the long-term secular growth opportunity.

儘管當前存在通貨膨脹環境和廣泛的宏觀經濟不確定性，但我們專注於我們的 PEO 銷售執行和提供持續強勁的客戶滿意度，我們仍然對長期的長期增長機會充滿信心。

Stepping back, while we are pleased to be on track to deliver very strong full year financial results. We are even more excited about how we are leveraging our unmatched scale and decades of innovation experience to drive continued progress on our important modernization journey. We are making our solutions more powerful and easier to use, and we are making our unparalleled insight and expertise more accessible than ever. In doing all this, we're delivering an experience that's better for our clients, better for their employees and better for ADP.

退一步說，雖然我們很高興能夠走上正軌，實現非常強勁的全年財務業績。更令我們興奮的是，我們如何利用我們無與倫比的規模和數十年的創新經驗來推動我們在重要的現代化進程中不斷取得進展。我們正在使我們的解決方案更強大、更易於使用，我們正在使我們無與倫比的洞察力和專業知識比以往任何時候都更容易獲得。在做這一切的過程中，我們正在為我們的客戶、他們的員工和 ADP 提供更好的體驗。

I mentioned the tens of thousands of new clients we onboarded in our down market, over 1/3 of those clients utilize our digital onboarding experience, yielding a faster time to start, happier clients and greater productivity for our implementation team.

我提到了我們在低迷市場中加入的數以萬計的新客戶，其中超過 1/3 的客戶利用了我們的數字入職體驗，從而加快了啟動時間，讓客戶更滿意，並為我們的實施團隊提高了工作效率。

We just completed our busy year-end period during which we helped our clients with over 75 million U.S. tax forms and to further enhance the client experience, we proactively service critical year-end data to our clients before they had to search for it. This not only reduced friction for them but also reduced the number of calls and interactions with our service teams.

我們剛剛結束了繁忙的年終期間，在此期間我們幫助客戶處理了超過 7500 萬份美國稅表，為了進一步提升客戶體驗，我們主動為客戶提供重要的年終數據，以免他們不得不進行搜索。這不僅減少了他們的摩擦，還減少了與我們服務團隊的通話和互動次數。

For years, we have directly engaged and served our clients' employees through channels like wisely. As we focus on the overall employee experience we can offer, we continue to add valuable functionality like a savings envelope that employees have used to move more than $1 billion into savings over the last 12 months and a new financial wellness hub with its tools and education to drive better financial outcomes.

多年來，我們通過明智的渠道直接接觸和服務客戶的員工。由於我們專注於我們可以提供的整體員工體驗，因此我們繼續添加有價值的功能，例如員工在過去 12 個月中用來將超過 10 億美元用於儲蓄的儲蓄信封，以及一個新的財務健康中心及其工具和教育推動更好的財務成果。

With our new intelligent self-service solution, we are already interacting with over 3 million client employees per month through our Action Card feature. And our Voice of Employee solution is helping thousands of clients attain better insights from their employee population, which can drive higher engagement and satisfaction for those employees.

借助我們新的智能自助服務解決方案，我們已經每月通過我們的行動卡功能與超過 300 萬客戶員工互動。我們的員工之聲解決方案正在幫助數以千計的客戶從他們的員工群體中獲得更好的洞察力，這可以提高這些員工的參與度和滿意度。

The opportunity to continue creating value and efficiency in the world of work is meaningful, and we believe these modern approaches that reduce friction and exceed client expectations will help us deliver on that in the coming years.

在工作世界中繼續創造價值和效率的機會是有意義的，我們相信這些減少摩擦並超越客戶期望的現代方法將幫助我們在未來幾年實現這一目標。

With that in mind, I want to provide some perspective on how we are strategically positioning ourselves to invest over the near term given the economic backdrop. As we shared earlier this year, in fiscal 2023, we were impacted by higher wage inflation. We also added to our service and implementation capacity to meet the expectations of our growing client base, and we invested throughout the year in sales and products.

考慮到這一點，我想就我們如何在經濟背景下進行短期投資的戰略定位提供一些看法。正如我們今年早些時候分享的那樣，在 2023 財年，我們受到更高工資通脹的影響。我們還增加了我們的服務和實施能力以滿足不斷增長的客戶群的期望，我們全年都在銷售和產品方面進行投資。

As we position for potential economic slowdown beyond this fiscal year, we are being thoughtful about how we prioritize our investments. At the same time, we are very much committed to our ongoing modernization journey, which is critical to our sustainable growth and that will require continued steady reinvestment into the business. In the coming quarters, I look forward to updating you on near-term growth priorities for ADP. Before turning it over to Don, I want to take a moment to recognize our associates for their continued focus on helping our clients through the many challenges they face each day, especially amid these uncertain times. Resiliency and partnerships represent core components of the ADP brand promise and are among the many reasons businesses around the world choose to partner with a leader in the industry. Our unrelenting support through years of growth, years of challenge and the years in between is something they've grown to count on, and we are honored to support them.

當我們為本財年之後可能出現的經濟放緩做好準備時，我們正在考慮如何確定投資的優先順序。與此同時，我們非常致力於正在進行的現代化進程，這對我們的可持續增長至關重要，並且需要對業務進行持續穩定的再投資。在接下來的幾個季度，我期待著向您介紹 ADP 的近期增長重點。在交給 Don 之前，我想花點時間感謝我們的同事，他們一直專注於幫助我們的客戶度過他們每天面臨的許多挑戰，尤其是在這些不確定的時期。彈性和合作夥伴關係是 ADP 品牌承諾的核心組成部分，也是全球企業選擇與行業領導者合作的眾多原因之一。我們在多年的成長、多年的挑戰以及介於兩者之間的歲月中提供的不懈支持是他們成長所依賴的東西，我們很榮幸能夠支持他們。

With that, I'll turn it over to Don.

有了這個，我會把它交給唐。

Thank you, Maria, and good morning, everyone. I'll provide some more details on our Q3 results and update you on our fiscal '23 outlook before briefly touching on fiscal '24.

謝謝你，瑪麗亞，大家早上好。在簡要介紹 24 財年之前，我將提供有關我們第三季度業績的更多詳細信息，並向您更新我們的 23 財年展望。

Let me jump straight into the segments starting with Employer Services. ES segment revenue increased 11% on a reported basis and 12% on an organic constant currency basis, which is the strongest ES revenue growth we've experienced in quite some time. As Maria shared, ES new business bookings were solid and kept us on track with our full year outlook. We believe the full range of bookings outcomes is still on the table given the relative importance of Q4 bookings to our full year results. So we're not making any change to our guidance, but we do believe the middle of our guidance range feels most likely at this point.

讓我直接進入從雇主服務開始的部分。 ES 部門的收入在報告基礎上增長了 11%，在有機固定貨幣基礎上增長了 12%，這是我們在相當長一段時間內經歷的最強勁的 ES 收入增長。正如 Maria 分享的那樣，ES 的新業務預訂量非常可觀，並使我們的全年展望保持在正軌。鑑於第四季度預訂對我們全年業績的相對重要性，我們認為所有預訂結果仍在討論中。因此，我們不會對我們的指導做出任何改變，但我們確實相信我們的指導範圍的中間感覺在這一點上是最有可能的。

On ES retention, following another quarter of better-than-expected results, we're again revising our outlook, and we now expect retention to be down only 10 to 20 basis points for the full year compared to our prior outlook of down 20 to 30 basis points. This again will be driven by retention decline in our down market from normalized out-of-business losses and is mostly offset by improved overall retention elsewhere.

在 ES 留存率方面，在又一個季度的業績好於預期之後，我們再次修改了我們的展望，我們現在預計全年留存率僅會下降 10 到 20 個基點，而我們之前的展望是下降 20 到 20 個基點30個基點。這將再次受到正常化的停業損失導致我們低迷市場的保留率下降的推動，並且大部分被其他地方整體保留率的提高所抵消。

Pays per control remained strong in Q3 and we are raising our outlook to now assume about 4% pays per control growth for the year compared to our prior outlook for 3% to 4% growth. Client funds interest revenue increased in Q3, in line with our expectations, and we're updating our full year outlook utilizing the latest forward yield curve, which, in this case, resulted in no major change. And on FX, we had about 1 percentage point of ES revenue headwinds in Q3, and there is no change to our outlook for a full year headwind of between 1% and 2%.

每個控件的支付在第三季度保持強勁，我們正在提高我們的前景，現在假設今年每個控件的支付增長約 4%，而我們之前的預測為 3% 至 4%。第三季度客戶資金利息收入增加，符合我們的預期，我們正在利用最新的遠期收益率曲線更新我們的全年展望，在這種情況下，這不會導致重大變化。在外匯方面，我們在第三季度遇到了約 1 個百分點的 ES 收入逆風，我們對全年 1% 至 2% 的逆風前景沒有改變。

Following our strong Q3 ES revenue growth, we're pleased to be raising our outlook once again to now expect about 9% growth, up from 8% to 9% before. Our ES margin increased 80 basis points in Q3, which was in line with our expectations. We are narrowing our full year outlook to now expect about 200 basis points of margin expansion and we still see significant opportunity to invest in sales, product and elsewhere throughout the organization to capitalize on the growth opportunity in front of us, which we are choosing to do at this juncture.

在我們第三季度 ES 收入強勁增長之後，我們很高興再次提高我們的前景，現在預計增長約 9%，高於之前的 8% 至 9%。我們的 ES 利潤率在第三季度增加了 80 個基點，這符合我們的預期。我們正在縮小我們的全年展望，現在預計利潤率將增長約 200 個基點，我們仍然看到在整個組織的銷售、產品和其他方面進行投資的重要機會，以利用我們面前的增長機會，我們正在選擇在這個時候做。

Moving on to the PEO. We had 5% revenue growth driven by 3% growth in average worksite employees. As a reminder, this deceleration is driven by a few factors, including slow pays per control growth, difficult comparisons versus record retention levels and softer recent bookings growth that we experienced in the last 2 years.

轉到 PEO。我們的收入增長了 5%，這得益於平均工作場所員工增長 3%。提醒一下，這種減速是由幾個因素驅動的，包括每次控制增長緩慢、難以與創紀錄的保留水平進行比較，以及我們在過去兩年中經歷的近期預訂增長放緩。

For this fiscal year, we now expect PEO revenue growth of about 8% and with growth in average worksite employees of about 6%, both at the lower end of our prior ranges. Maria mentioned the bookings reacceleration in Q3 and we are feeling upbeat about reaccelerating the revenue growth in the coming several quarters. This guidance update is mainly due to a tweak to our pays per control assumption within the PEO, as it decelerated a bit more than we previously assumed, somewhat different from what we experienced in the ES segment. We are separately lowering our outlook for revenue, excluding zero margin pass-throughs to a range of 7% to 8% due mainly to lower SUI rates in Q3, than we previously anticipated.

對於本財年，我們現在預計 PEO 收入增長約 8%，平均工作場所員工增長約 6%，均處於我們先前範圍的低端。 Maria 提到了第三季度的預訂重新加速，我們對未來幾個季度的收入增長重新加速感到樂觀。此指南更新主要是由於我們對 PEO 中的按控制付費假設進行了調整，因為它比我們之前假設的要減速一點，這與我們在 ES 部分所經歷的有所不同。我們單獨下調了我們的收入前景，不包括零利潤轉嫁率至 7% 至 8% 的範圍，這主要是由於第三季度的 SUI 率低於我們之前的預期。

PEO margin increased 140 basis points in Q3, which was better than expected due primarily to continued favorable workers' compensation reserve adjustments, which we had not assumed as well as the lower SUI costs I just mentioned. And we are raising our outlook for PEO margin to now expect it to be up 50 to 75 basis points for fiscal '23.

PEO 保證金在第三季度增加了 140 個基點，好於預期，這主要是由於持續有利的工人賠償準備金調整，我們沒有假設以及我剛才提到的較低的 SUI 成本。我們正在提高我們對 PEO 利潤率的展望，現在預計它在 23 財年將上升 50 至 75 個基點。

Putting it all together, we still expect consolidated revenue growth of 8% to 9% in fiscal '23, but now believe it will be towards the higher end of that range. We are maintaining our outlook for adjusted EBIT margin expansion of 125 to 150 basis points and for a fiscal '23 effective tax rate of about 23%. And we now expect adjusted EPS growth of 16% to 17% compared to our prior outlook of 15% to 17%.

綜上所述，我們仍然預計 23 財年的綜合收入增長將達到 8% 至 9%，但現在相信它將接近該範圍的高端。我們維持調整後息稅前利潤率擴大 125 至 150 個基點以及 23 財年有效稅率約為 23% 的前景。我們現在預計調整後的每股收益增長 16% 至 17%，而我們之前的預期為 15% 至 17%。

I also want to provide some early high-level color on what to expect for next year. We are still going through our annual planning process but there are a few things to consider at this point. First, assuming a slowing economic backdrop, pays per control could be at a below normal growth rate next year, among other potential macro considerations.

我還想就明年的預期提供一些早期的高級色彩。我們仍在進行年度計劃流程，但此時需要考慮一些事項。首先，假設經濟放緩，明年人均工資增長率可能低於正常水平，以及其他潛在的宏觀考慮因素。

I would also point out that while client funds interest appears positioned to give us some contribution to growth, based on the latest forward yield curve, it will likely be very modest. At the same time, we have good momentum in our ES bookings performance and ES retention, and we are feeling upbeat about the continued opportunity to build on our decades of success. Thank you.

我還要指出，雖然根據最新的遠期收益率曲線，客戶資金利息似乎可以為我們的增長做出一些貢獻，但它可能會非常溫和。與此同時，我們在 ES 預訂業績和 ES 保留方面的勢頭良好，我們對繼續鞏固我們數十年成功的機會感到樂觀。謝謝。

And I'll now turn it back to Michelle for Q&A.

現在我將把它轉回 Michelle 進行問答。

(Operator Instructions) We will take our first question from Bryan Bergin with Cowen.

（操作員說明）我們將與 Cowen 一起回答 Bryan Bergin 提出的第一個問題。

So Don, maybe just building on those last comments you had there, I'm curious, just any indications or call-outs worth mentioning as it relates to fiscal '24? Really in the context of the medium-term outlook that you've given in the past, just how should the Street consider the magnitude of potential impacts across some of these KPIs from a potentially slower macro environment?

所以唐，也許只是基於你在那裡的最後評論，我很好奇，任何與 24 財年相關的跡像或標註值得一提嗎？實際上，在您過去給出的中期展望的背景下，華爾街應該如何考慮可能放緩的宏觀環境對其中一些 KPI 的潛在影響程度？

Yes, Bryan, thank you for the question. It's still early. We're still in the middle of our planning process. I think we have a lot of things going in our favor sales. We're -- we still have relatively high client fund interest. Pays per control have been good and strong. Bookings continue to be strong as we said earlier. So as we get into '24, I think we're going to be in a pretty healthy spot with what we know today. I guess the challenge we all have is trying to guess what's coming in terms of the broader macro situation. We continue to see strong demand, retention to think is pretty good, although it's normalizing a little bit in the down market, as we did expect. But I think things feel pretty good at this juncture. So I'm going to have to ask you to bear with us a little bit as we make our way through our plan, and we stay tuned to what's going on in the macro environment even closer as we get forward or closer to our July 1, beginning of the year.

是的，布萊恩，謝謝你的提問。現在還早。我們仍在計劃過程中。我認為我們有很多事情有利於我們的銷售。我們 - 我們仍然有相對較高的客戶資金利息。每次控制的報酬一直很好而且很強勁。正如我們之前所說，預訂量繼續強勁。因此，當我們進入 24 世紀時，我認為我們將以我們今天所知道的情況處於一個非常健康的位置。我想我們所有人都面臨的挑戰是試圖猜測更廣泛的宏觀形勢會發生什麼。我們繼續看到強勁的需求，保留認為是相當不錯的，儘管它在低迷的市場中有點正常化，正如我們所預期的那樣。但我認為此時此刻感覺還不錯。因此，在我們制定計劃的過程中，我將不得不請您多多包涵，隨著我們向前或臨近 7 月 1 日，我們將密切關注宏觀環境中正在發生的事情, 年初。

Okay. That's fair. And just on the PEO. So worksite employee view downtick, and I think you were down sequentially in average worksite employees. Can you just talk about what you're seeing in kind of the pays per control versus the retention aspect in the PEO? And with bookings reaccelerating, how long does the reconnection to improve growth take?

好的。這還算公平。就在 PEO 上。所以工地員工的看法下降了，我認為你在平均工地員工中依次下降。你能談談你在 PEO 中看到的每次控制付費與保留方面的情況嗎？隨著預訂重新加速，重新連接以改善增長需要多長時間？

So the -- we did have, as you as you mentioned, we had a particularly strong PEO bookings month in March, which we're optimistic is going to continue and help us as we go forward. Certainly, we're going to have to see how those bookings continue through the balance of the year, trying to anticipate how those are going to actually result in revenue. Things do start relatively quickly in the PEO business, but it's going to take some time once again to see how that stuff rolls from bookings into revenue. But we're pretty optimistic about how things went in the third quarter, especially with the finish, and we do expect to see that reacceleration as quickly as we want to. And by the way, back to your earlier question a little bit, we talked about high single-digit growth in our midterm view, and we won't be happy if we don't get something like that.

所以 - 我們確實有，正如你提到的那樣，我們在 3 月份有一個特別強勁的 PEO 預訂月，我們樂觀地認為這將繼續下去並在我們前進的過程中幫助我們。當然，我們將不得不看看這些預訂如何在今年餘下時間繼續進行，試圖預測這些預訂將如何實際產生收入。 PEO 業務的起步確實相對較快，但再次需要一些時間才能看到這些東西如何從預訂轉化為收入。但我們對第三季度的進展情況非常樂觀，尤其是在結束時，我們確實希望能盡快看到這種重新加速。順便說一句，回到你之前的問題，我們在中期觀點中談到了高個位數的增長，如果我們沒有得到這樣的結果，我們將不會高興。

Yes. I think, Bryan, if I can just comment on the quarter-over-quarter real quick as I think you mentioned the sequential growth Q2 to Q3 and worksite employees. That is something that, obviously, we noticed as well, and as Don mentioned, from a medium-term perspective, we are definitely still committed from the medium term to the works on employee growth that we have guided to for that. However, as it relates to kind of the quarter-over-quarter, we noticed the same thing that you noticed. And obviously, that's not the ideal situation, and we're hopeful that won't be the case if you look sequentially quarter-to-quarter, Q3 to Q4, but also year-on-year. And I think that's really a byproduct of timing, and that timing is really about retention, right? So it's really about, call it, third quarter retention results, which we've cited before were a bit softer than we expected. And as a result of that, you see the sequential piece to the quarter-on-quarter.

是的。我想，布萊恩，如果我能像你提到的第二季度到第三季度的連續增長和工作場所員工那樣快速評論季度環比的話。顯然，我們也注意到了這一點，正如 Don 提到的那樣，從中期的角度來看，我們肯定會從中期致力於我們為此指導的員工成長工作。然而，由於它與季度環比有關，我們注意到了與您注意到的相同的事情。顯然，這不是理想的情況，如果你按季度、第三季度到第四季度，以及同比來看，我們希望情況不會如此。而且我認為這真的是時機的副產品，而且時機真的與保留有關，對吧？所以這真的是關於第三季度的保留結果，我們之前引用過的結果比我們預期的要軟一些。因此，您會看到季度環比的連續部分。

Okay. Is that just a function of the type of client within PEO?

好的。這只是 PEO 中客戶類型的功能嗎？

In terms of the typing.

在打字方面。

Like more white collar?

更喜歡白領？

I don't know that it's a function of more white collar. I think it's really a function of some of the feelings that we have post pandemic as the renewals have really been kind of, call it, rippling through the business of the PEO. So it's really a byproduct of some of the post-pandemic impact that we saw in the PEO so it's really byproduct of the retention softness that we saw in the first quarter and the second quarter and then quarter-on-quarter this past quarter. So I don't think it's necessarily a byproduct of -- because retention continues, albeit it's normalizing a bit in the down market. We do have very strong retention in the mid-market. We also have strong retention, albeit tiny bit less than last year in the down market. So I don't really think it's a byproduct of the client base or white collar, I think it's really a byproduct of kind of a post-pandemic environment in the PEO.

我不知道這是更多白領的功能。我認為這真的是我們在大流行後的一些感受的函數，因為續約確實有點，稱之為，在 PEO 的業務中蕩漾。因此，這實際上是我們在 PEO 中看到的一些大流行後影響的副產品，因此它實際上是我們在第一季度和第二季度以及上個季度的季度環比中看到的保留疲軟的副產品。所以我認為這不一定是副產品——因為保留率仍在繼續，儘管它在低迷市場中有點正常化。我們在中端市場確實有很強的保留率。我們也有很強的保留率，儘管在低迷市場中略低於去年。所以我真的不認為這是客戶群或白領的副產品，我認為它確實是 PEO 大流行後環境的副產品。

Our next question comes from Bryan Keane with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Bryan Keane。

I guess just trying to look at Employer Services, really strong growth in the quarter, 12% organic. If you back into the guidance for fourth quarter, it looks like a little bit of a deceleration. I think you get to something around 8% growth. So just trying to understand the puts and takes there for the fourth quarter guide versus the strong results in the third quarter?

我想只是想看看雇主服務，本季度增長非常強勁，有機增長 12%。如果你回到第四季度的指導，它看起來有點減速。我認為你可以實現 8% 左右的增長。因此，只是想了解第四季度指南與第三季度的強勁結果的看跌期權和價格？

Yes, thanks for the question. The biggest impact, I guess, in terms of growth would be we are going to continue to see strong growth from client fund interest in the fourth quarter. But certainly, Q3 is by far the strongest quarter just given the seasonality of tax receipts, et cetera, for us. So I think that would be one of the key drivers. And of course, we did mention as well that we expect to see pays per control growth coming down and softening a little bit, even though a bit higher than we expected to see. Last quarter, it is coming down. It's certainly starting to moderate.

是的，謝謝你的提問。我想，就增長而言，最大的影響是我們將在第四季度繼續看到客戶基金興趣的強勁增長。但可以肯定的是，考慮到我們的稅收收入等因素的季節性，第三季度是迄今為止最強勁的季度。所以我認為這將是關鍵驅動因素之一。當然，我們也確實提到，我們預計每次控制增長的薪酬會下降並略有放緩，儘管比我們預期的要高一些。上個季度，它正在下降。它肯定開始緩和。

Got it. Got it. And then on the bookings side, although bookings were strong. I think you commented maybe towards the lower end of the range of 6% to 9% and -- and just can you help us maybe think about how bookings will translate into future revenue growth for the Employer Services? If you can just remind us, just as we get our models set or start thinking about fiscal year '24.

知道了。知道了。然後在預訂方面，儘管預訂量很大。我認為您可能對 6% 到 9% 範圍的下限發表了評論，並且 - 您能否幫助我們考慮一下預訂將如何轉化為雇主服務未來的收入增長？如果你能提醒我們，就在我們設置好模型或開始考慮 24 財年的時候。

Yes. So I'll let Don comment on the -- how the bookings kind of relate to the models on the revenue side. But from an overall bookings perspective, what we cited in the prepared remarks is that we do anticipate the middle of the range. So we did keep the range constant. So it's constant with the outset of the year, it's also constant with last quarter's guidance. So we are keeping that 6% to 9% range. We do anticipate at this point, the middle of that range.

是的。所以我會讓 Don 評論 - 預訂與收入方面的模型有何關係。但從整體預訂的角度來看，我們在準備好的評論中引用的是我們確實預計範圍的中間值。所以我們確實保持了範圍不變。因此，它與年初保持一致，與上一季度的指導也保持不變。所以我們保持 6% 到 9% 的範圍。我們確實預計在這一點上，該範圍的中間。

And we feel pretty confident heading into the fourth quarter when we take a look at how we exited March, but also taking a look at the number of sellers we have, the investments we've made into the ecosystem and as those sellers ultimately gain tenure because we're actually lapping a lot of new hires that we had, if you will, a year ago. So pretty excited as we step in the other part of that.

當我們看看我們如何退出 3 月份時，我們對進入第四季度感到非常有信心，同時也看看我們擁有的賣家數量、我們對生態系統所做的投資以及這些賣家最終獲得任期因為我們實際上正在招聘很多新員工，如果你願意的話，一年前。當我們進入另一部分時，非常興奮。

Confidence is really about what we're seeing as it relates to the overall pipeline. So pipelines are strong. That's more of a, call it, enterprise and international or large deal type of comment. We're seeing tremendous activity in the top of the funnel still upmarket. So the down market continues to shine for us, and that's really supported by what we're seeing in continued increases in new business formations. We're also seeing those new business formations generate inbound leads. So we're seeing good activity on the digital side. So feel confident as we step into the fourth quarter, and then I'll let Don comment on how the -- ultimately where we land in the fourth quarter and how that translates into revenue for us next year.

信心實際上是關於我們所看到的，因為它與整個管道有關。所以管道很強大。這更像是一種，稱之為企業和國際或大型交易類型的評論。我們看到漏斗頂部的巨大活動仍然是高端市場。因此，低迷的市場繼續為我們閃耀，而我們在新業務形式的持續增長中看到的確實支持了這一點。我們還看到這些新的業務形式產生了入站線索。因此，我們在數字方面看到了良好的活動。因此，當我們進入第四季度時，請充滿信心，然後我將讓 Don 評論我們如何最終在第四季度著陸，以及這將如何轉化為我們明年的收入。

Yes. So on the modeling side, roughly a 1% change in ES bookings growth impacts us in the $17 million to $20 million annually on revenue growth. So that's kind of how we think about your models. I think that's been pretty consistent.

是的。因此，在建模方面，ES 預訂增長大約 1% 的變化會影響我們每年 1700 萬至 2000 萬美元的收入增長。這就是我們對您的模型的看法。我認為這是非常一致的。

Yes. And Bryan, the timing is -- it depends on the business. Obviously, strong performance in the down market will impact revenue much more quickly. And if you have strong global view sales at the other end of the extreme, that can take several months to even more than a year, in some cases, to roll in. So typical rule of thumb for us is a couple of quarters to see the full impact. But of course, the bookings throughout the year have been pretty consistent for us. And so I wouldn't expect any real callouts from the revenue timing standpoint.

是的。布萊恩，時間是——這取決於業務。顯然，在低迷市場中的強勁表現將更快地影響收入。如果你在極端的另一端有強勁的全球視圖銷售，這可能需要幾個月甚至超過一年的時間，在某些情況下，才能開始。所以我們的典型經驗法則是幾個季度才能看到完整的影響。但當然，全年的預訂對我們來說非常穩定。因此，從收入時間的角度來看，我不希望有任何真正的標註。

Our next question comes from Eugene Simuni with MoffettNathanson.

我們的下一個問題來自 Eugene Simuni 和 MoffettNathanson。

Maria, I wanted to pick back up on your comments about the break down market. Maybe elaborate on that a little bit, what are the macro factors, your competitive positioning that's still supporting that? And if you could contrast that for us a little bit with what's going on in the mid-market. I know it's still doing well. But if the question is, is there a path for mid-market to get to as strong of a point with down market? And what are the levers that maybe you're able to pull to get you there?

瑪麗亞，我想回顧一下你對崩潰市場的評論。也許稍微詳細一點，宏觀因素是什麼，你的競爭定位仍然支持它？如果你能為我們將其與中端市場的情況進行一點對比。我知道它仍然做得很好。但如果問題是，是否有途徑讓中端市場達到與低迷市場一樣強勁的點？您可以使用哪些槓桿來實現目標？

Absolutely. So I'll start with the down market, just to kind of reiterate the strength we're seeing there top of funnel. So we are very pleased with what we saw in the performance of the down market. That's also inclusive of the down market ecosystem. So I think this is our RUN platform. I talked about the third quarter onboarding 60,000 clients. It's pretty incredible. Those clients also, many of them have attach rates of our retirement services offering, our insurance services offering.

絕對地。所以我將從低迷市場開始，只是為了重申我們在漏斗頂部看到的力量。因此，我們對低迷市場的表現感到非常滿意。這也包括低端市場生態系統。所以我認為這是我們的RUN平台。我談到第三季度有 60,000 名客戶入職。這太不可思議了。這些客戶也有很多人對我們的退休服務產品、我們的保險服務產品有附加費率。

So the entire down market portfolio, it's definitely performing well for us and has for quite some time. It is driven by what we're seeing macro. And so you just kind of reiterate what we've seen as new business formations are up year-on-year, 8%, by the way, they're still up year on pandemic, as I call it. So they're actually if you look at current new business formations versus the year of 2019, right? So pre-pandemic, it's actually 8,000 or so a week. This is all from the U.S. Census Bureau. So from the standpoint of what we're seeing that kind of emanate into the pipelines and into the top of the funnel. We do have double-digit growth in our digital inbound leads, right? So I think these are SEO/SEM ads where ultimately, clients are coming to us, and we're meeting those clients with our inside sellers and the demand is there and demand is strong.

因此，整個下行市場投資組合對我們來說肯定表現良好，並且已經持續了很長一段時間。它是由我們所看到的宏觀驅動的。因此，您只是重申我們所看到的情況，因為新業務的形成同比增長 8%，順便說一句，正如我所說的那樣，它們在大流行病上仍然增長。因此，如果您將當前的新業務形式與 2019 年進行比較，它們實際上是，對嗎？所以在大流行之前，實際上是每週 8,000 次左右。這全部來自美國人口普查局。因此，從我們所看到的這種情況的角度來看，這種情況會散發到管道中並進入漏斗的頂部。我們的數字入站線索確實有兩位數的增長，對嗎？所以我認為這些是 SEO/SEM 廣告，最終，客戶會來找我們，我們正在與我們的內部賣家會面這些客戶，需求就在那裡，而且需求很強勁。

In terms of the mid-market, the mid-market was a bit softer this quarter than it was last quarter. That said, we also are very excited about the pipelines that we're seeing in the mid-market that specifically call it the, the tech only, we do have strength in our Employer Services HR Outsourcing offering, which also touches the mid-market. So combined, your question around, is there a path to see tremendous growth there between those businesses, we are seeing growth, and we are excited about our overall mid-market position from a competitive landscape. We do have our next-generation payroll engine that's attached to about 30% to 40% of our mid-market new business sales. And what I will tell you is it's resonating incredibly well in the market. It's resonating with the sellers. That's always a good sign when they like to talk about it and they like to demo it. It's also resonating in terms of the competitive landscape and more wins. And so we feel that there's definitely a path. That's what we're investing in, both in product and the ecosystem to have the mid-market be as an exciting of a story as the down market is for us.

在中端市場方面，本季度中端市場比上一季度略顯疲軟。也就是說，我們也對我們在中端市場看到的管道感到非常興奮，這些管道專門稱之為，僅技術，我們在雇主服務人力資源外包產品方面確實有實力，它也涉及中端市場.所以綜合起來，你的問題是，在這些業務之間是否有一條途徑可以看到巨大的增長，我們正在看到增長，我們對我們在競爭格局中的整體中端市場地位感到興奮。我們確實擁有下一代薪資引擎，它占我們中端市場新業務銷售額的 30% 到 40%。我要告訴你的是，它在市場上反響非常好。這引起了賣家的共鳴。當他們喜歡談論它並且喜歡演示它時，這總是一個好兆頭。它在競爭格局和更多勝利方面也引起了共鳴。所以我們覺得肯定有一條路。這就是我們在產品和生態系統方面的投資，以使中端市場成為一個令人興奮的故事，就像低端市場對我們來說一樣。

Got it. Very helpful color. And then for my follow-up, I want to quickly come back to the PEO. Can you talk a little bit about the kind of the macro headwinds for the PEO order? I think we discussed last time, specifically the insurance attach rates, insurance premiums, kind of blocking PEO growth. Is that still a factor or not any longer?

知道了。很有幫助的顏色。然後對於我的後續行動，我想快速回到 PEO。你能談談 PEO 訂單的宏觀逆風嗎？我想我們上次討論過，特別是保險附加費率、保險費，以及阻礙 PEO 增長的因素。這仍然是一個因素還是不再是一個因素？

Yes. What I would say is that the PEO demand remains strong. And so we're bullish about the secular tailwinds of the PEO. We're bullish about the value proposition. As it relates to benefits and benefits attached. I know there's a lot of discussions, there are a lot of surveys out there from the likes of Kaiser, et cetera, as it relates to our clients making different choices. I think what we see within our base is perhaps some asks of that. And on the peripheral kind of on the margin, perhaps there's price sensitivity as it relates to benefits. What that really allows for our sellers just need to be, call it, more surgical as they go to market.

是的。我要說的是，PEO 需求依然強勁。因此，我們看好 PEO 的長期順風。我們看好價值主張。因為它涉及到好處和附帶的好處。我知道有很多討論，有很多來自 Kaiser 等公司的調查，因為它與我們的客戶做出不同的選擇有關。我認為我們在基地內看到的可能是一些要求。在邊際上，可能存在與收益相關的價格敏感性。真正允許我們的賣家做的只是需要，稱之為，在他們進入市場時更加外科手術。

But in terms of the value proposition of the PEO and benefits still being a big component of that, that is the case. We skew definitely a bit more white collar in our PEO. In addition to that, our model with a fully insured model is a little bit different. And so the companies that we attract our PEO are still companies that want to be employers of choice, and employers of choice especially in a macro environment, such as this one, where talent is still the name of the game. They want to offer benefits and benefits are a piece of that.

但就 PEO 的價值主張和利益仍然是其中的重要組成部分而言，情況就是這樣。在我們的 PEO 中，我們肯定更傾向於白領。除此之外，我們的完全保險模型有點不同。因此，我們吸引 PEO 的公司仍然是那些希望成為首選雇主的公司，尤其是在宏觀環境中，尤其是在這個環境中，人才仍然是遊戲的名稱。他們想提供好處，而好處就是其中的一部分。

So what I would say is we're not seeing huge signs. I think even if you take a look at the revenue [ex VNPT], you'd be able to see kind of what's happening with benefit revenue. So there's not huge signs that there's a shift in benefits attractiveness. I think the shift that we see is just the sharpness that our sellers need to have as they position the value proposition and, call it, the right plans and the right rates to the right clients.

所以我要說的是我們沒有看到巨大的跡象。我認為即使你看一下收入 [ex VNPT]，你也能看到福利收入發生了什麼。因此，沒有明顯跡象表明福利吸引力發生了變化。我認為我們看到的轉變只是我們的賣家在定位價值主張時需要的敏銳度，稱之為正確的計劃和正確的客戶的正確費率。

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。

Maria, I think you talked about 60,000 new RUN clients in the quarter. Can you help us dimensionalize that? Where would that typically be? And how should we kind of expect that to evolve going forward?

瑪麗亞，我想你在本季度談到了 60,000 個新的 RUN 客戶。你能幫我們把它維度化嗎？那通常在哪裡？我們應該如何期待它向前發展？

So the 60,000 clients that I mentioned are specific to our down market, specifically the RUN platform. So that's actually 60,000 clients that we started. So where would they be? They would be all over the United States, if you will, from a -- and I'm not trying to be funny about it, but it's really pretty amazing effort if you think about the volume of clients, the throughput, if you will. They come to us through some of the things that we talked about today, new business formation, they also come to us through our channel ecosystem. So we've made a lot of investments into the relationships we have with our CPAs, with our banks.

所以我提到的 60,000 個客戶是特定於我們的低端市場，特別是 RUN 平台。所以這實際上是我們開始的 60,000 個客戶。那麼他們會在哪裡？他們會遍布美國，如果你願意的話，從一個——我不是想對此開玩笑，但如果你考慮客戶的數量，吞吐量，這真的是非常驚人的努力，如果你願意的話.他們通過我們今天談到的一些事情來找我們，新業務的形成，他們也通過我們的渠道生態系統來找我們。因此，我們對與註冊會計師、銀行的關係進行了大量投資。

In terms of what does it look like quarter-on-quarter, stating the obvious the third quarter for us is obviously the highest volume quarter. So that's why it's kind of fun to give that shout out this quarter because, arguably, I would say that's not a typical quarter for ADP as it relates to a number of units and the throughput because many of the starts do happen in January in that business. But they're kind of all over the place, and they come to us through the strength of our distribution model and the strength of our overall ecosystem. Does that answer the question, Kevin?

就季度環比而言，顯然第三季度對我們來說顯然是銷量最高的季度。所以這就是為什麼在本季度大聲疾呼會很有趣，因為可以說，我會說這不是 ADP 的典型季度，因為它與許多單位和吞吐量有關，因為許多啟動確實發生在 1 月份商業。但它們無處不在，它們通過我們的分銷模式和我們整體生態系統的優勢來到我們這裡。這是否回答了問題，凱文？

It did. I guess I was just -- I know Q3 is a high watermark. How should we think about 60,000 maybe relative to Q3 of last year? Was it 40? I mean, just trying to understand like how the momentum is accelerating there? And then just what's the profitability? Because it sounds like a third word digital onboarded, like the ones that are digitally onboarded, how much more profitable are those than a traditional client that's onboarded? Just trying to get a sense of if we're at an inflection point in terms of the growth there.

它做了。我想我只是——我知道第三季度是一個高水位線。相對於去年第三季度，我們應該如何看待 60,000？是40嗎？我的意思是，只是想了解那裡的勢頭是如何加速的？那麼盈利能力是多少？因為這聽起來像是第三個詞數字入職，就像那些數字入職的人，那些比入職的傳統客戶的利潤高多少？只是想了解我們是否處於增長方面的拐點。

Yes. Listen, I -- fair enough. I don't know that I meant to trip myself into giving a quarter-on-quarter number. What I would tell you is it's higher than last quarter. It's higher both in revenue, obviously and the performance. It's also higher in share unit volume.

是的。聽著，我——很公平。我不知道我是不是故意讓自己給出一個季度環比數字。我要告訴你的是，它高於上一季度。顯然，它的收入和業績都更高。它的份額單位數量也更高。

So I suppose I'll kind of leave it at that. In terms of the third that comes through the digital onboarding, what that yields is a few things. Kevin, one of which is better experience for the client, right? So our digital onboarded clients have very high, what we call, new business client NPS results, right? So -- and when a client starts with us happier, it yields to a happier client long term, which yields to a happier and more retentive clients. So I think in terms of what the, call it, margin profile or lifetime value of those clients look like over time, we're still learning a bit about that, but it's very optimistic for us as we're seeing the results.

所以我想我會把它留在那兒。就通過數字入職的第三個方面而言，產生的是一些東西。凱文，其中之一是為客戶提供更好的體驗，對吧？所以我們的數字入職客戶有非常高的，我們稱之為新業務客戶 NPS 結果，對嗎？所以——當一個客戶從我們這裡開始時更快樂，它會產生一個更快樂的長期客戶，這會產生一個更快樂和更留存的客戶。所以我認為，就這些客戶的利潤率概況或終身價值而言，隨著時間的推移，我們仍在學習一些東西，但當我們看到結果時，這對我們來說非常樂觀。

I think the other is, it also yields efficiency for our implementation organization, right? So if you think about having the ability to have these clients digitally onboarded allows the more complex onboardings, if you will, perhaps clients are coming to us with more complications around their taxes or maybe from a competitor or something that's actually demands an implementation, the person to be involved at a much higher level, it allows their focus to remain there, which also should yield a better experience for those clients. So we're also seeing that.

我認為另一個是，它也為我們的實施組織帶來了效率，對吧？因此，如果您考慮讓這些客戶以數字方式入職的能力允許更複雜的入職，如果您願意的話，也許客戶會帶著更多複雜的稅收問題來找我們，或者可能來自競爭對手或實際上需要實施的東西，一個人參與到更高的層次，它可以讓他們的注意力保持在那裡，這也應該為這些客戶帶來更好的體驗。所以我們也看到了這一點。

So overall, we are seeing, and I cited it in the prepared remarks, we're seeing new clients come on board happier. The digital ones are happier than the non-digital, but they're all happier than they were last year, which is a good thing for us as it relates to the retentive nature of those clients over time and what they will bring to us in terms of lifetime value.

所以總的來說，我們看到，我在準備好的評論中引用了它，我們看到新客戶更快樂。數字化客戶比非數字化客戶更快樂，但他們都比去年更快樂，這對我們來說是一件好事，因為它關係到這些客戶隨著時間的推移的保留性質以及他們將給我們帶來什麼終身價值方面。

And our next question comes from James Faucette with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 James Faucette。

Great. I wanted to quickly, Maria, ask a clarifying question. On the mid-market, you kind of talked about some of the things that you're doing there. But just to be clear, it sounds like from your perspective that it's more issues or things that ADP can do to address versus macro? I just want to make sure I'm understanding kind of your list of objectives and things to do in that segment.

偉大的。瑪麗亞，我想快點問一個澄清的問題。在中端市場，你談到了你在那裡做的一些事情。但需要明確的是，從您的角度來看，ADP 可以解決的問題或事情比宏觀問題多嗎？我只是想確保我理解你的目標清單和在該部分要做的事情。

Absolutely. The mid-market for us still has -- and we're still experiencing solid mid-market sales, right? And so I don't -- from my vantage point, I don't think it's necessarily the softness that we saw in Q3 versus Q2 with a byproduct of a macro type of environment. We're paying close attention to demand cycles. We're paying close attention to pipelines. In terms of -- there are some cycles that are perhaps a tiny bit elongated, maybe, there might be some more approvals or approval layers involved, and there may be a little bit of cycle elongation. I would tell you, we're not seeing that much of that in the mid-market, and it really looks more like '19, it looks more like pre-pandemic than it does necessarily something that would give us a belief that there's a macro concern in the mid-market.

絕對地。我們的中端市場仍然存在——而且我們的中端市場銷售仍然穩健，對吧？所以我不——從我的角度來看，我認為這不一定是我們在第三季度與第二季度看到的疲軟，這是宏觀環境的副產品。我們正在密切關注需求週期。我們正在密切關注管道。就-有些週期可能會稍微延長一點，也許，可能涉及更多的批准或批准層，並且可能會有一點週期延長。我會告訴你，我們在中端市場看不到那麼多，它看起來更像是 19 年，它看起來更像是大流行前，而不是它必然會讓我們相信有一個宏觀關注中端市場。

What I would say is on the macro side, it's not getting any easier in the mid-market to be a client, right? And so if you think about the complex environment for the mid-market customers and clients, it does continue to increase. And so they're solving for hybrid work, they're solving for talent, they're solving for compliance, regulation. And they're turning to HCM providers such as us, to help with all of that. So I think the macro supports a very strong environment for the mid-market and we do continue to expect to have mid-market growth, including our HRO.

我要說的是在宏觀方面，在中端市場成為客戶並沒有變得更容易，對吧？因此，如果您考慮中端市場客戶和客戶的複雜環境，它確實會繼續增加。所以他們正在解決混合工作，他們正在解決人才問題，他們正在解決合規性和監管問題。他們正在求助於像我們這樣的 HCM 供應商，以幫助解決所有這些問題。所以我認為宏觀為中端市場提供了一個非常強大的環境，我們確實繼續期望中端市場增長，包括我們的 HRO。

Got it. Got it. And then I guess maybe dovetailing with that, can you speak a little bit about the competitive environment? And any changes you're seeing there? Or what are you seeing from customers? Is there a flight to quality versus maybe some of the regional players and what is the impact of newer entrants? Just can you give us kind of a state of the competitive landscape?

知道了。知道了。然後我想也許與此相吻合，你能談談競爭環境嗎？你在那裡看到的任何變化？或者您從客戶那裡看到了什麼？與某些區域參與者相比，是否存在質量轉移？新進入者的影響是什麼？你能給我們介紹一下競爭格局嗎？

Sure. I would say the competitive landscape, one way to think about it is it actually hasn't changed that much. So is there a flight to quality, sure. We've seen some of that, but it's not material at this time as it relates to clients calling us and asking about the macro and what's happening in the world. We've had a few of those calls just recently based on some things that have happened in the environment. But what I would say -- when I think about the competitive environment, we look at this very closely. We just completed our strategic plan process, and we've been looking at our competitive position against all the major players, mid-market and others over the last handful of years in a surgical way. What I would offer is a few items, one of which is we have strong retention, specifically in the mid-market. We also have very strong retention in international. We have a near-record highs in NPS.

當然。我會說競爭格局，一種思考方式是它實際上並沒有改變那麼多。當然，是否存在質量問題。我們已經看到了其中的一些，但目前這並不重要，因為它與客戶打電話給我們並詢問宏觀和世界上正在發生的事情有關。我們最近根據環境中發生的一些事情接到了一些這樣的電話。但我要說的是——當我考慮競爭環境時，我們會非常仔細地審視它。我們剛剛完成了我們的戰略計劃流程，並且在過去的幾年中，我們一直在以外科手術的方式審視我們與所有主要參與者、中端市場和其他公司的競爭地位。我要提供的是一些項目，其中之一是我們有很強的保留率，特別是在中端市場。我們在國際上也有很強的保留率。我們的 NPS 接近歷史新高。

And so I would say that our value proposition and our competitive positioning -- it's proof, if you will, if you look at the retention, from a balance of trade, we are also winning more away from our competitors than we have in years past. And so again, I think our position is about the same when I look at it year-on-year, but it's getting perhaps a little bit better on the wind side. And I think that a lot of that does have to do with the quality that we're providing, so inside kind of the NPS results. Certainly, the investments we've made, the investments into our organization to serve our clients better. Some of the things I talked about, new products that we're leveraging. The likes of AI to actually drive self-service, to drive better experience for our clients, their employees and drive friction out. So I would say, investments into product. And then lastly, again, investments into new products that is creating better wins for us.

所以我想說我們的價值主張和我們的競爭定位——這證明，如果你願意的話，如果你看看保留，從貿易平衡來看，我們也從我們的競爭對手那裡贏得了比過去幾年更多的勝利.因此，我認為我們的位置與去年同期相比大致相同，但在風力方面可能會好一點。而且我認為其中很多確實與我們提供的質量有關，所以在 NPS 結果中。當然，我們已經進行了投資，對我們組織的投資是為了更好地為我們的客戶服務。我談到的一些事情，我們正在利用的新產品。人工智能之類的東西實際上可以推動自助服務，為我們的客戶、他們的員工帶來更好的體驗，並消除摩擦。所以我會說，投資產品。最後，再次投資新產品，為我們創造更好的勝利。

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。

Don, I know you gave preliminary FY '24 guidance. And one of the things you talked about is obviously pays for control moderating. But do you think -- could there be an offset because inflation is still running high and there is a pricing opportunity for the company, especially on the payroll side?

唐，我知道你給出了 FY '24 的初步指導。你談到的其中一件事顯然是為控制調節付出代價。但是你認為 - 是否可以抵消，因為通貨膨脹率仍然很高並且公司有定價機會，特別是在工資單方面？

Yes, Kartik, it's a good question. So certainly, talked about pays per control growth decelerating. We called that out. And we've also -- I mentioned earlier, for '24, I think there's a risk that it decelerates further. So we'll have to watch and see what happens there.

是的，Kartik，這是個好問題。所以當然，談到每控制增長減速的薪酬。我們大聲疾呼。我們也——我之前提到過，對於 24 年，我認為它有進一步減速的風險。所以我們必須觀察那裡會發生什麼。

On the inflation side and pricing, we're still in the early days of our FY '24 plan. So we're watching it carefully. I think we can say that we are happy with the impact of the results of the price -- pricing decisions we took in '23. We had those readily accepted, I guess, with -- reflected by our higher NPS scores by our continued strong retention. So we have an ability to take price. But as we always come back to, we're in this for the long haul with our clients, their long-term retention is the most important thing to us. So we need to make sure that we continue to have that good value proposition between what the absolute prices, how much price we can take, et cetera. But once again, Kartik, it's definitely something we're looking at and trying to evaluate as we get closer to putting the plan to bed.

在通貨膨脹方面和定價方面，我們仍處於 24 財年計劃的早期階段。所以我們正在仔細觀察它。我想我們可以說我們對價格結果的影響感到滿意——我們在 23 年做出的定價決定。我猜，我們很容易接受這些——我們持續的強勁保留反映了我們更高的 NPS 分數。所以我們有能力接受價格。但正如我們總是回來的那樣，我們與客戶長期合作，他們的長期保留對我們來說是最重要的。因此，我們需要確保在絕對價格、我們可以接受的價格等等之間繼續擁有良好的價值主張。但再一次，Kartik，隨著我們越來越接近將計劃付諸實施，這絕對是我們正在關注並試圖評估的事情。

And then, Maria, just on the PEO side, could -- is any of the attrition related to maybe customers deciding that they had a PEO and it just got too expensive for them. So they've decided to move out of the PEO for a while until they can get a better understanding of what's happening in the economy. Any changes like that?

然後，瑪麗亞，就在 PEO 方面，可以 - 是否有任何與客戶決定他們擁有 PEO 並且它對他們來說太貴有關的損耗。因此，他們決定暫時退出 PEO，直到他們能夠更好地了解經濟中正在發生的事情。有這樣的變化嗎？

I would say that's always the case. I think every year, as we go through renewals, as we go through the year-end cycle, you have clients that are choosing to buy into the PEO and you have clients that are choosing to exit the PEO. When I look at where we get our clients from, obviously, I think we've cited multiple times that about 50% of the new business that comes into the PEO comes from our existing ADP base that would suggest that at least 50% come from a non-PEO environment, and we somewhat tend to return them the same way. So that's not to say that clients don't, at times, we don't trade customers between us and the other PEOs. But generally speaking, I think that's always the case. I don't believe there's a larger trend toward that this time than there has been in the past. I think, really, in the end, it's really a byproduct again of kind of what we saw with the renewal post pandemic and what the impact of that as we headed into this selling cycle, if you will.

我會說情況總是如此。我認為每年，當我們經歷續約時，當我們經歷年終週期時，你有選擇購買 PEO 的客戶，也有選擇退出 PEO 的客戶。當我審視我們從哪裡獲得客戶時，顯然，我認為我們已經多次提到，進入 PEO 的新業務中約有 50% 來自我們現有的 ADP 基礎，這表明至少有 50% 來自非 PEO 環境，我們傾向於以相同的方式返回它們。所以這並不是說客戶有時不會，我們不會在我們和其他 PEO 之間交易客戶。但總的來說，我認為情況總是如此。我認為這次不會有比過去更大的趨勢。我認為，真的，最後，這真的是我們在大流行後的更新中看到的副產品，以及它在我們進入這個銷售週期時的影響，如果你願意的話。

Our next question comes from Ramsey El-Assal with Barclays.

我們的下一個問題來自巴克萊銀行的 Ramsey El-Assal。

I also wanted to follow up on the PEO and particularly on the bookings reacceleration. I'm just curious how much of that reacceleration is sort of from a better kind of external demand environment versus changes in your sales strategy? I'm just trying to figure out how much is sort of push versus pull when it comes to that recovery. And I guess the underlying question is your confidence level that this reacceleration is a sustainable trend?

我還想跟進 PEO，尤其是預訂再加速。我很好奇這種重新加速有多少來自更好的外部需求環境與銷售策略的變化？我只是想弄清楚在恢復方面有多少推力和拉力。我想潛在的問題是您對這種再加速是一種可持續趨勢的信心水平？

Fair. Thank you, Ramsey. We are excited about the PEO reacceleration, specifically what we saw in March and obviously, how we feel stepping into this final stretch. I think it is too early to comment on the finish, but the pipelines are strong. What I would tell you is that I'm bullish about the demand in the market for the PEO and the overall value proposition. So all things being equal, I think we're positioned well as well as anybody else as it relates to the overall PEO. I guess, demand, if you will, right?

公平的。謝謝你，拉姆齊。我們對 PEO 的重新加速感到興奮，特別是我們在 3 月份看到的情況，顯然，我們對進入最後階段的感覺如何。我認為現在評論完成還為時過早，但管道很強大。我要告訴你的是，我看好市場對 PEO 的需求和整體價值主張。因此，在所有條件都相同的情況下，我認為我們與其他任何人的定位都很好，因為它與整個 PEO 相關。我猜，需求，如果你願意，對吧？

So I don't think it's a -- the reacceleration was really, in my mind, more a byproduct of top of funnel filling the pipelines. We made a lot of investments into our seller ecosystem and the PEO. We have incentives that we can pull. In addition to that, we've invested into -- and I think I've talked about it a couple of times on these calls. We've invested into artificial intelligence that actually looks across our base to a project where we're actually looking at the ADP base to try to serve up the right, call it, PEO seller at the right time to the right ADP clients. So we're getting smarter. I'm not doing a good job saying it outside of we're getting smarter in terms of who we are actually targeting on the PEO using technology today that didn't exist. So I think all of that has kind of yielded to what I would say is a strong execution by the PEO sales team to drive the reacceleration that we would expect and that we are excited to see and optimistic that it will continue.

所以我不認為這是 - 在我看來，重新加速實際上更像是漏斗頂部填充管道的副產品。我們對我們的賣家生態系統和 PEO 進行了大量投資。我們有可以拉動的激勵措施。除此之外，我們還投資了——我想我已經在這些電話會議上談過幾次了。我們已經投資於人工智能，它實際上是在我們的基礎上尋找一個項目，在這個項目中，我們實際上正在研究 ADP 基礎，試圖在正確的時間為正確的 ADP 客戶提供正確的，稱之為 PEO 賣家。所以我們變得越來越聰明。我說得不好，除了我們在使用當今不存在的技術在 PEO 上實際針對誰方面變得更加聰明之外。因此，我認為所有這些都讓我想說的是 PEO 銷售團隊的強大執行力來推動我們預期的重新加速，我們很高興看到並樂觀地認為它會繼續。

Okay. Great. And a quick follow-up. When you look across the business, are you seeing any vertical-specific areas of softness, maybe tech or commercial real estate or financial services? Are there any worrisome kind of verticals that you're keeping an eye on?

好的。偉大的。並進行快速跟進。當你縱觀整個行業時，你是否看到任何垂直領域的軟性，可能是科技或商業房地產或金融服務？您是否正在關注任何令人擔憂的垂直領域？

Are you referring to the PEO specifically or the overall macro?

你指的是具體的PEO還是整體宏觀？

I know. I should have been more clear. Just more broadly across the business, are there any -- you guys have a pretty broad macro view. And I'm just curious if there's any specific areas that are causing any concern in terms of recent trends?

我知道。我應該更清楚。更廣泛地說，在整個業務中，有沒有——你們有一個非常廣闊的宏觀視野。我很好奇最近的趨勢是否有任何特定領域引起關注？

Yes, maybe I'll jump in. I think in terms of verticals, certainly seeing all the reports and reading all the things about commercial real estate that everyone else is. That's -- we look at the breadth and the distribution of our client base, it's pretty broad. So I'm not so sure that we're seeing any particular verticals that are causing us any undue concern at this time. I would say, it has been reported, Maria mentioned it in the prepared remarks, certainly, the enterprise space, the upmarket space is where there's been a lot more layoffs announced, et cetera particularly in tech. So we are looking at that. We've said in the past though that's not the biggest part of our business. So even though there's some more softness in that end of the market, it's being more than offset by the success we're having in the down -- in the mid-market. So from a particular vertical, nothing in particular.

是的，也許我會跳進去。我認為在垂直方面，當然會看到所有報告並閱讀其他所有人都在閱讀有關商業房地產的所有內容。那就是 - 我們看看我們客戶群的廣度和分佈，它非常廣泛。因此，我不太確定我們目前是否看到任何特定的垂直領域引起了我們的過度關注。我想說，據報導，瑪麗亞在準備好的發言中提到了這一點，當然，企業領域，高端領域是宣布裁員更多的地方，尤其是在科技領域。所以我們正在研究這一點。我們過去曾說過，儘管這不是我們業務的最大部分。因此，儘管市場的那一端有一些疲軟，但它被我們在中端市場取得的成功所抵消。所以從一個特定的垂直方向來看，沒有什麼特別的。

Our next question comes from Samad Samana with Jefferies.

我們的下一個問題來自 Jefferies 的 Samad Samana。

Maybe first one, Maria. Just I wanted to maybe get a better understanding when you're talking about a change in maybe the investment -- investing philosophy of the company just as you're adjusting to the macro environment evolving as well. Is that more around maybe pulling back on hiring? Is that more about maybe redirecting where resources are? Can you maybe just help us better understand what that translates into? And maybe how we should think about that impacting both the top and bottom line?

也許是第一個，瑪麗亞。當你談論投資的變化時，我只是想更好地理解公司的投資理念，就像你也在適應不斷變化的宏觀環境一樣。這是否更多地圍繞著可能會減少招聘？這更多是關於重定向資源所在的位置嗎？你能不能幫助我們更好地理解這意味著什麼？也許我們應該如何考慮這對頂線和底線的影響？

Yes. Thanks, Samad, I'm happy to talk about modernization. It's one of my favorite topics as all of you are probably learning from my prepared remarks. And I think it's important to think about the modernization journey we've been on and how it really can set us up for kind of future growth and future margin, if you will, as a company. And that's really what it's all about for us. I think we've been undergoing transformation. We've been undergoing modernization for years. I would actually suggest that ADP has been modernizing for the last 73 years as we've invested in technology to make things better for us as a business to become more efficient, and we've been investing in our clients and in product to make it easier for them. And so I think that's not a new cycle. The way I think about modernization is really a client first lens, right? So it's really about all the things that I cited. It's about taking out friction.

是的。謝謝，薩馬德，我很高興談論現代化。這是我最喜歡的話題之一，因為你們所有人都可能從我準備好的發言中學到了東西。而且我認為重要的是要考慮我們一直在進行的現代化之旅，以及它如何真正為我們未來的增長和未來的利潤率，如果你願意的話，作為一家公司。這就是我們的全部意義所在。我認為我們一直在經歷轉型。多年來，我們一直在進行現代化改造。我實際上建議 ADP 在過去的 73 年裡一直在進行現代化，因為我們投資於技術以使我們的業務變得更好，從而提高效率，並且我們一直在投資於我們的客戶和產品以使其成為現實對他們來說更容易。所以我認為這不是一個新的周期。我對現代化的看法真的是客戶至上，對吧？所以這真的是關於我引用的所有事情。這是關於消除摩擦。

The way I think about the investment, which is your question, Samad, is, it's an imperative for us to continue to invest in modernization because it's the modernization that over time has really allowed us to reinvest in growth and reinvest in the business. And we are committed to a continued journey of growth and margin. And as a result of really the way we've been able to do this. So for us, it's really about both. It's really about the (inaudible), right? So it's about growth and margin expansion. And I think this virtuous cycle that we've been on really as a company for a very long time, which is we make things easier, we make them better. We become more efficient. We make things better for our clients, and that allows us to invest in growth and it allows us to invest in -- back into our shareholders, if you will, in margins. So it's really (inaudible) an and story and it's key to who ADP is and it will be a key for us as we go forward.

我對投資的看法，這是你的問題，薩馬德，我們必須繼續投資現代化，因為隨著時間的推移，現代化確實讓我們能夠重新投資於增長並重新投資於業務。我們致力於持續的增長和利潤之旅。由於我們確實能夠做到這一點。所以對我們來說，這真的是兩者兼而有之。這真的是關於（聽不清），對吧？所以這是關於增長和利潤擴張。而且我認為我們作為一家公司已經存在很長時間的良性循環，我們讓事情變得更容易，我們讓它們變得更好。我們變得更有效率。我們為我們的客戶做得更好，這使我們能夠投資於增長，並允許我們投資——如果你願意的話，以利潤回報我們的股東。所以這真的是（聽不清）一個故事，它是 ADP 是誰的關鍵，它將成為我們前進的關鍵。

In terms of the commentary that I made around how we're thinking about it in the macroeconomic backdrop, it is an important time to make sure we're making the right choices and the right trade-offs I mentioned earlier, we've been in the middle of our strategic planning process the last quarter. And as we've gone through the business, if you will, end-to-end, rest assured that we are trying as a company to make the very best decisions to have the very best outcomes as it relates to growth and margin.

就我圍繞我們在宏觀經濟背景下的思考方式所做的評論而言，現在是確保我們做出正確選擇和正確權衡的重要時刻，我之前提到過，我們一直在我們上個季度的戰略規劃過程中。在我們完成業務的過程中，如果您願意，請放心，作為一家公司，我們正在努力做出最佳決策，以獲得與增長和利潤相關的最佳結果。

Great. I appreciate that. And then just one quick follow-up for Don. I was just looking at the guidance by segment and the margin for ES, it looks like you settled it out at the -- within the range at the lower end. I'm just curious maybe what drove that? Is that -- is it purely float contribution driven? Or is that more the result of just bookings being better, so expenses being pulled forward? Just help me understand why that was narrowed to the lower end of the range, please?

偉大的。我很感激。然後只是對 Don 的快速跟進。我只是在看按部門劃分的指導和 ES 的利潤率，看起來你在低端的範圍內解決了它。我只是好奇也許是什麼驅使它？那是——它是純粹的浮動貢獻驅動的嗎？或者更多的是預訂更好的結果，所以費用被提前了？請幫助我理解為什麼將其縮小到範圍的下限，好嗎？

Yes. I think there's a couple of things going on. One, certainly, we're continuing to benefit from bookings growth, retention, price pays per control, and all are a little bit stronger. And we certainly are getting lots of tailwinds -- we have lots of tailwinds in Q3, in particular, from client fund interest. So that's been very helpful for us.

是的。我認為有幾件事正在發生。其中之一，當然，我們將繼續受益於預訂量增長、保留率、每次控制的價格支付，而且所有這些都有所增強。我們當然得到了很多順風——我們在第三季度有很多順風，特別是來自客戶基金的興趣。所以這對我們很有幫助。

The things slow a little bit from a client fund interest perspective in Q4. So that certainly is not as helpful as it was. And we are, of course, as Maria just mentioned, we are taking advantage of some of those extra flow funds that we have to invest -- reinvest in the business or continue to invest in the business on modernization. So it's all about, I think, trying to find the right balance and still delivering the -- as we mentioned, higher end of the earnings per share prediction or guidance. So it's all to find the right balance, and we will continue to invest in modernization and deliver improvements as we go forward.

從第四季度客戶資金利息的角度來看，情況有所放緩。所以這肯定沒有以前那麼有用了。當然，正如瑪麗亞剛才提到的，我們正在利用我們必須投資的一些額外流動資金——再投資於業務或繼續投資於現代化業務。所以我認為，這一切都是為了找到合適的平衡點，同時仍然提供——正如我們提到的，每股收益預測或指導的更高端。所以這一切都是為了找到正確的平衡，我們將繼續投資於現代化並在我們前進的過程中提供改進。

And our next question comes from David Togut with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 David Togut。

Could you walk through the 140 basis points of PEO margin expansion in Q3? It seems pretty notable given the deceleration in PEO revenue growth. And in particular, could you unpack the size of the workers' compensation reserve release in Q3?

你能走過第三季度 PEO 保證金擴張的 140 個基點嗎？鑑於 PEO 收入增長放緩，這似乎非常值得注意。特別是，您能否解開第三季度工人賠償儲備金釋放的規模？

It was $17 million. You'll see it in the[Q] compared to $7 million last year. So it wasn't a huge amount.

這是1700萬美元。你會在 [Q] 中看到它與去年的 700 萬美元相比。所以這不是一個很大的數目。

But those are the 2 impacts. So the biggest impact was the reserve adjustment on workers' comp. And the other big item there is the lower SUI costs. So there's virtually no margins on SUI. So SUI comes down at the top, it certainly improves the margins. So those would be the 2 major impacts on the margin improvement in PEO.

但這是兩個影響。所以影響最大的是職工薪酬的準備金調整。另一個大項目是較低的 SUI 成本。所以 SUI 幾乎沒有利潤。所以 SUI 位居榜首，它肯定會提高利潤率。因此，這些將是對 PEO 利潤率改善的兩個主要影響。

Got it. And then just as a follow-up, Don, could you walk through your strategy on managing the tax filing float going forward? We've got a pretty steeply inverted yield curve right now, which means it's actually more expensive for you to borrow in the commercial paper market and invest flow medium-term duration bonds. Are you thinking of shifting the investment portfolio at all in the year ahead?

知道了。然後作為後續行動，Don，你能否詳細介紹一下你管理未來納稅申報浮動的策略？我們現在的收益率曲線非常陡峭，這意味著你在商業票據市場上借款並投資流動中期期限債券實際上更昂貴。您是否考慮在來年完全改變投資組合？

We had that strategy in place for some 20 years or so. And we've realized about $2.8 billion of incremental benefit from that strategy. And so we have a strategy in place. We always revisit these strategies and look at them. It's true that the yield curve is inverted for the seventh time in 50 years. How long that continues, I'm not sure. But we'll continue to look at that strategy and see what we need to do, if anything, to change it as we go forward. But it is something we've been committed to and we follow closely. Near term, certainly, we have benefited this quarter because of the inflow of funds in calendar Q1. There's a big balance -- a big benefit there to us. So as we go forward, we'll continue to look at the opportunities and decide if we need to make any material changes to the investment strategy.

我們實施該戰略已有 20 年左右的時間。我們已經從該戰略中實現了約 28 億美元的增量收益。因此，我們制定了一項戰略。我們總是重新審視並審視這些策略。誠然，收益率曲線 50 年來第七次倒掛。這種情況會持續多久，我不確定。但我們將繼續研究該戰略，看看我們需要做什麼，如果有的話，在我們前進的過程中改變它。但這是我們一直致力於並密切關注的事情。短期內，當然，由於日曆第一季度的資金流入，我們本季度受益。有一個很大的平衡——對我們來說是一個很大的好處。因此，在我們前進的過程中，我們將繼續尋找機會，並決定是否需要對投資策略進行任何重大改變。

David, one point worth clarifying because this has come up before. If you look at the last slide of our earnings presentation, you'll see a disaggregation of client short extended and long. And one thing I think is worth emphasizing is that, we are net long exposed to the client short. In other words, if short-term interest rates went up and up and up, that would actually be beneficial to our earnings and our margins. It just shows up in 2 different places, which can often cause confusion. But it's actually not hurtful to us to have these higher borrowing costs because we have more dollars invested long in the client short portfolio.

大衛，有一點值得澄清，因為之前已經提出過。如果您查看我們收益演示文稿的最後一張幻燈片，您會看到客戶短期和長期的分類。我認為值得強調的一件事是，我們的淨多頭暴露給客戶空頭。換句話說，如果短期利率不斷上升，那實際上將有利於我們的收益和利潤率。它只出現在兩個不同的地方，這常常會引起混淆。但實際上，這些更高的借貸成本對我們並沒有什麼壞處，因為我們有更多的美元投資於客戶的空頭投資組合。

Our next question comes from Mark Marcon with Baird.

我們的下一個問題來自 Mark Marcon 和 Baird。

Maria, you talked about modernization. Can you talk about the areas of emphasis? And one area that I'm particularly interested in is international and what you're seeing there in terms of opportunities?

瑪麗亞，你談到了現代化。能談談重點領域嗎？我特別感興趣的一個領域是國際化，您在那裡看到了什麼機會？

Sure. So overall, I think modernization is really about end-to-end. So think of it as product and continuing to make investments in ensuring our products are next generation, if you will. And that's certainly the case across many pieces of our portfolio, and you're well aware of the investments we're making in next-generation technology. I think product is a big piece of it. I think other is the internal modernization. So that would be everything from go-to-market to call it, the seller ecosystem modernization. I think I've spoken to that quite a bit in the past as well as how we actually serve our clients.

當然。所以總的來說，我認為現代化實際上是關於端到端的。因此，將其視為產品並繼續投資以確保我們的產品是下一代產品（如果您願意的話）。在我們的許多產品組合中肯定都是這種情況，而且您很清楚我們正在對下一代技術進行的投資。我認為產品是其中很大一部分。我認為另一個是內部現代化。因此，這將是從上市到稱之為賣家生態系統現代化的一切。我想我過去已經談過很多次，以及我們如何實際為客戶服務。

And again, we reference that today. So kind of going back to modernization specifically in our opportunity in international. We're very excited about our position in international. Very excited about the opportunity that we have. And this is definitely an area that we have been modernizing. So if you think about each and every country that we serve over 140 countries today that we have offers over time. We have been modernizing the platforms, and we've been consolidating platforms. But to your point, Mark, that work is not done.

再一次，我們今天提到了這一點。所以有點回到現代化，特別是在我們的國際機會中。我們對我們在國際上的地位感到非常興奮。對我們擁有的機會感到非常興奮。這絕對是我們一直在現代化的領域。因此，如果你想想我們今天為 140 多個國家提供服務的每一個國家，我們隨著時間的推移提供服務。我們一直在對平台進行現代化改造，並且一直在整合平台。但就你而言，馬克，這項工作還沒有完成。

And so we still have that journey that we've been on is the journey that we're going to continue. But as we do that, we're also focused on ensuring that we continue to make the investments to the platforms, and we continue to make the investments into the overall ecosystem of how we serve our clients international to really drive further, call it, opportunity.

因此，我們仍然有我們一直在進行的旅程，也是我們將要繼續的旅程。但在我們這樣做的同時，我們也專注於確保我們繼續對平台進行投資，並且我們繼續對我們如何為國際客戶提供服務的整體生態系統進行投資，以真正推動進一步發展，稱之為，機會。

And so there's still places in international, and I'll probably leave it with -- we'll be back next quarter to talk more about things such as our growth strategy. But I think as it relates to international all of that modernization should also yield a growth opportunity for us because it's still a big world and there are places that we -- even though we're in more countries than anybody else, there are countries that we don't exist there, segments within certain countries where our offer still has opportunity. And so we were incredibly excited about the overall international space where we are, the work that we're doing and where we're going.

所以在國際上還有一些地方，我可能會留下 - 我們將在下個季度回來更多地討論諸如我們的增長戰略之類的事情。但我認為，由於它與國際相關，所有這些現代化也應該為我們帶來增長機會，因為它仍然是一個大世界，有些地方我們——儘管我們在的國家比其他任何人都多，但有些國家我們在那裡不存在，某些國家/地區的細分市場我們的報價仍然有機會。因此，我們對我們所處的整體國際空間、我們正在做的工作以及我們要去的地方感到非常興奮。

That's great. And Maria, can you talk a little bit about just what the appetite is? And obviously, it's diverse across the globe. But broadly speaking, are you seeing a greater level of interest in terms of modernization of HR and HCM systems across the globe? Certainly it's been an ongoing trend in the U.S. for quite some time. But just I'm hearing from others that there is a pickup in terms of RFPs that are occurring things of that nature and that we could be at the early stages of higher levels of growth, international, macro notwithstanding?

那太棒了。瑪麗亞，你能談談胃口是什麼嗎？顯然，它在全球範圍內是多種多樣的。但從廣義上講，您是否看到全球對 HR 和 HCM 系統現代化的興趣更大？當然，很長一段時間以來，這在美國一直是一種持續的趨勢。但我只是從其他人那裡聽說，RFP 正在發生這種性質的事情，並且我們可能處於更高水平增長的早期階段，國際，宏觀儘管如此？

What I would suggest, Mark, is that over the last few years, the conversation in the international space has definitely shifted a bit, and I could suggest the same thing, which is that it's picked up. And so that conversation today tends to lead with more of a global offer, global system of record kind of conversation. So we walk in today and we have a conversation with a client more often than not about how many countries are you in and where can we help serve you and how can we tie it all together to make an ability for that client to really see across multiple countries and have more of a unified experience versus, I would say, perhaps 5, 10 years ago, it was more of a country-by-country conversation. Today, it's more -- it starts with a multi-country conversation. And so I think all of that suggests what -- it appears you've heard from others, which is the narrative in the international is shifting. I think there is greater demand for HCM offerings in international as it relates to companies now that are more global than they've ever been.

馬克，我的建議是，在過去的幾年裡，國際空間的對話肯定發生了一些變化，我可以提出同樣的建議，那就是它已經開始了。因此，今天的對話往往以更多的全球報價、全球記錄系統類型的對話為主導。因此，我們今天走進來，我們經常與客戶進行對話，了解您在多少個國家/地區以及我們可以在哪些地方為您提供幫助以及我們如何將它們結合在一起以使該客戶能夠真正了解多個國家，並且有更多的統一經驗，而我想說，也許在 5 年、10 年前，這更像是一個國家與國家之間的對話。今天，它更多的是——它從多國對話開始。因此，我認為所有這些都表明——你似乎從其他人那裡聽說過，國際上的敘述正在發生變化。我認為國際上對 HCM 產品的需求更大，因為它與現在比以往任何時候都更加全球化的公司有關。

And certainly, the hybrid environment has accelerated that a bit. And the ability for companies to be able to see their workforces and make talent decisions, headcount decisions across multiple countries. That's a very different conversation today than it was just a few years ago. And we see that when we have, we just recently, actually, this quarter, we had all of our international clients together at an event. And the topic is about their transformation. It's about their HCM transformation and the partnership that we have with them to solve for them. And I think the beauty of ADP is that we have the ability to solve the MNC, the multi-country piece. And we also have the ability to solve the in-country. And a lot of times, for clients, it's a mix of both. And so it's really about the flexibility we have in our partnership options to serve these clients in a very unique way.

當然，混合環境加速了這一點。以及公司能夠看到他們的員工隊伍並做出人才決策的能力，跨多個國家的員工人數決策。今天的談話與幾年前截然不同。我們看到，就在最近，實際上，就在本季度，我們所有的國際客戶都參加了一次活動。主題是關於他們的轉變。這是關於他們的 HCM 轉型以及我們與他們為解決問題而建立的伙伴關係。我認為 ADP 的美妙之處在於我們有能力解決 MNC，即多國問題。而且我們也有能力解決國內。很多時候，對於客戶來說，這是兩者的結合。因此，這實際上是關於我們在合作夥伴關係選擇方面的靈活性，以一種非常獨特的方式為這些客戶提供服務。

We have time for one more question. And that question comes from Tien-Tsin Huang with JPMorgan.

我們還有時間再問一個問題。這個問題來自摩根大通的 Tien-Tsin Huang。

You covered a lot already. I just wanted on the down market side, given the success in the bookings here. Just curious if that's changing your thinking and investing more or even less, maybe in ASO versus PSO then the digital sales versus the seller ecosystem? I'm curious as we're going into fiscal '24 here, if there's any -- maybe change in thinking in prioritization there?

你已經涵蓋了很多。考慮到這裡的預訂成功，我只想在低端市場。只是好奇這是否會改變您的想法並增加或減少投資，也許是在 ASO 與 PSO 中，然後是數字銷售與賣家生態系統？我很好奇，因為我們將在這裡進入 24 財年，如果有的話 - 可能會改變那裡的優先順序？

So we have leaned into the down market in terms of the investments we've made. So when I -- I think I referenced earlier the seller headcount as we head into the final stretch here and how pleased we are with the investments we've made in headcount and the ecosystem around them, so investments into the channels, things of that nature. And as all of that turns into more productivity because the headcount is actually gaining tenure. It is primarily setting those investments have been in the down market. So again, think our SBS platform, the retirement services, the insurance services, most of that also comes into our digital sales organization, also known as the inside sales. So we are making investments into inside sales to really serve the down market. And what I would suggest is that -- from our viewpoint at this point, the demand is there. We've leaned into that demand, and we will continue to lean into the demand to drive the growth that we're driving out of the down market as long as it exists, if you will.

因此，就我們所做的投資而言，我們已經進入了低迷市場。所以當我——我想我早些時候提到了賣家人數，因為我們進入了這裡的最後階段，我們對我們在員工人數和他們周圍的生態系統方面所做的投資感到非常高興，所以對渠道的投資，等等自然。隨著所有這些都轉化為更高的生產力，因為員工人數實際上正在獲得任期。它主要是設置那些投資一直處於低迷市場。再一次，想想我們的 SBS 平台、退休服務、保險服務，其中大部分也進入我們的數字銷售組織，也稱為內部銷售。因此，我們正在對內部銷售進行投資，以真正服務於低端市場。我的建議是——從我們目前的觀點來看，需求就在那裡。我們已經適應了這種需求，我們將繼續適應這種需求，以推動我們正在擺脫低迷市場的增長，只要它存在，如果你願意的話。

Yes. No, I'm glad to hear it. If you don't mind one more question. Just I have to ask you since you mentioned, Maria, with AI. We've been getting a lot of questions on generative AI and ChatGPT. You mentioned being smarter around serving up PEO when necessary at the right time. But just broadly speaking, how are you thinking about generative AI and how that might help you run your business better, both from a sales perspective, but also from a delivery perspective, support standpoint?

是的。不，我很高興聽到這個消息。如果你不介意再問一個問題。瑪麗亞，既然你提到了人工智能，我就得問你了。我們收到了很多關於生成式 AI 和 ChatGPT 的問題。你提到在必要的時候在適當的時候更聰明地提供 PEO。但從廣義上講，你如何看待生成人工智能，以及它如何幫助你更好地經營你的業務，無論是從銷售的角度，還是從交付的角度，支持的角度？

Yes. Thank you, Tien-Tsin. I'm actually -- I'm thrilled you asked this question because I was counting on it during this call because it definitely seems like it's the topic du jour. But the real answer is, just like everybody else, we're incredibly excited about generative AI. We have been very excited about AI for quite some time. You mentioned what we've been doing for our sellers in the PEO, that's broad-based work that we've been doing for a long time and continue to invest in AI into making us more efficient. That example is about our sellers. We are making similar investments even with the new technologies that are out there to really look at how we can make our service associates as well as our sellers more productive.

是的。謝謝你，天津。實際上，我很高興你問了這個問題，因為我在這次電話會議中一直指望著它，因為它看起來確實是當前的話題。但真正的答案是，就像其他人一樣，我們對生成人工智能感到無比興奮。很長一段時間以來，我們一直對 AI 感到非常興奮。你提到了我們在 PEO 中為我們的賣家所做的事情，這是我們長期以來一直在做的基礎廣泛的工作，並繼續投資人工智能以提高我們的效率。這個例子是關於我們的賣家的。我們正在對現有的新技術進行類似的投資，以真正了解如何使我們的服務人員和銷售人員更有效率。

So you think about all the things that an agent, if you will, does today to support a client and some of the generative AI tools that can drive a different level of efficiency. And we're very excited. We have I think it's something around like 44 different work streams that are underway currently to take a look at different ways that we can leverage these tools internally. That's also notwithstanding the opportunity that it creates for our industry, right?

因此，您可以考慮代理人（如果願意的話）今天為支持客戶所做的所有事情，以及一些可以提高不同效率水平的生成式人工智能工具。我們非常興奮。我認為目前正在進行大約 44 個不同的工作流，以了解我們可以在內部利用這些工具的不同方式。這也是儘管它為我們的行業創造了機會，對吧？

So if you think about the HCM industry, there are still very many things inside of HCM that are administrative in nature in terms of whether it's job descriptions, performance reviews, things that are maybe handbook, things that are very tactical that really at times pull back the practitioner from doing what they want to do, which is be a strategic partner. And so we're really excited to put these tools also into our product for our clients and our practitioners to be able to lean into.

所以如果你想想 HCM 行業，HCM 內部仍然有很多東西在本質上是行政性的，無論是工作描述、績效評估、可能是手冊的東西，還是非常有戰術性的東西，有時真的會拉動支持從業者做他們想做的事情，這就是成為戰略合作夥伴。因此，我們真的很高興將這些工具也放入我們的產品中，以便我們的客戶和從業者能夠使用。

So all that said, we're very excited about the opportunity. One thing I would point out because it's important, and it's also very topical right now, which is that the good news is we've been doing a lot of this work. And as such, we have standards. We have a way to think about the ethical nature and that kind of comes at parity with who we are, given that we have the big data, if you will, behind ADP and the 40 million wage earners that we pay. And so when we think about all of this, with also with the lens of doing it the right way and making sure that it's applicable, it's secure, it's compliance, all the things that you would expect from ADP. But no doubt, Tien-Tsin, that we are excited about the opportunity it creates for us internally and the opportunity that it creates for us in our product to really serve the industry, right, and make this entire industry that much more strategic and that much more exciting. So great question.

綜上所述，我們對這個機會感到非常興奮。我要指出一件事，因為它很重要，而且現在也很熱門，好消息是我們已經做了很多這樣的工作。因此，我們有標準。我們有一種思考道德本質的方式，這種方式與我們是誰相提並論，因為我們擁有大數據，如果你願意的話，支持 ADP 和我們支付的 4000 萬工薪階層。因此，當我們考慮所有這些時，還要考慮以正確的方式進行操作並確保其適用、安全、合規，以及您對 ADP 的所有期望。但毫無疑問，Tien-Tsin，我們很高興它為我們內部創造的機會，以及它為我們在我們的產品中創造的真正為行業服務的機會，對吧，讓整個行業更具戰略意義，更令人興奮。這麼好的問題。

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

今天的問答部分到此結束。我很高興將程序交給 Maria Black 作閉幕詞。

Yes. Thank you. So first and foremost, thank you, everybody, for joining today. Really appreciate the questions and the interest. As you can imagine, I sit here 1 quarter into my new role as CEO and I get a lot of questions. Just last night, I got another text that said "how were the first 100 days?", "How is the first quarter?", "What have you been up to?" And here's what I would offer. The third quarter for ADP, and you heard it in my tone today, you've heard it in my excitement about some of the volumes and throughput but the third quarter is really where you see ADP shine. And it is our finest quarter. You have year-end, you have busy season, you have selling season that all kind of come together.

是的。謝謝。首先，感謝大家今天的加入。非常感謝問題和興趣。你可以想像，我在擔任 CEO 新職務的第一個季度坐在這裡，我收到了很多問題。就在昨晚，我又收到一條短信，內容是“前 100 天過得怎麼樣？”、“第一季度怎麼樣？”、“最近都在做什麼？”這就是我要提供的。 ADP 的第三季度，你今天用我的語氣聽到了，你已經聽到了我對一些數量和吞吐量的興奮，但第三季度確實是你看到 ADP 閃耀的地方。這是我們最好的季度。你有年終，你有旺季，你有銷售季節，所有這些都聚集在一起。

In this quarter, what I would say is adding some economic strangeness and questions about what's happening in the world, and I would say that sitting here 1 quarter in, I couldn't be more excited. I couldn't be more pleased. I couldn't be more grateful for the share execution of our associates. So I felt the breadth and depth of ADP this quarter at its finest.

在這個季度，我要說的是增加一些經濟上的陌生感和關於世界上正在發生的事情的問題，我想說坐在這裡 1 個季度，我感到無比興奮。我非常高興。我非常感謝我們同事的股份執行。因此，我在本季度感受到了 ADP 的廣度和深度。

And with that, I just want to take another minute to thank our associates for everything that they do to power this great company. I'd also like to thank all of our partners and stakeholders and everyone on the call listening today. I couldn't be more proud and more excited about this company.

說到這裡，我只想再花一分鐘感謝我們的員工為推動這家偉大公司所做的一切。我還要感謝我們所有的合作夥伴和利益相關者，以及今天在電話中聆聽的每一個人。我對這家公司感到無比自豪和興奮。

And with that, we will wrap up the call.

這樣，我們將結束通話。

This concludes the program. You may now disconnect. Everyone, have a great day.

程序到此結束。您現在可以斷開連接。大家，祝你有美好的一天。