自動資料處理 (ADP) 2024 Q1 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 First Quarter Fiscal 2024 Earnings Call. I would like to inform you that this conference is being recorded. After the prepared remarks, we'll conduct a question-and-answer session. Instructions will be given at that time.

早安.我叫米歇爾，我將擔任您的會議操作員。此時此刻，我謹歡迎大家參加 ADP 2024 年第一季財報電話會議。我想通知您，本次會議正在錄製中。在準備好的發言之後，我們將進行問答環節。屆時將給予指示。

I will now turn the conference over to Mr. Danyal Hussain, Vice President, Investor Relations. Please go ahead.

我現在將會議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 2024 Earnings Call. Participating today are Maria Black, our President and CEO; and Don McGuire, our CFO.

謝謝你，米歇爾。歡迎大家參加 ADP 2024 財年第一季財報電話會議。今天參加會議的有我們的總裁兼執行長瑪麗亞·布萊克 (Maria Black)；還有我們的財務長唐·麥奎爾。

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.

今天早些時候，我們發布了本季的業績。我們的獲利資料可在 SEC 網站和投資者關係網站 Investors.adp.com 上取得，您也可以在其中找到今天電話會議附帶的投資者簡報。

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 the 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，我們將參考非公認會計準則財務指標，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，以及非公認會計準則衡量標準與最具可比性的公認會計準則衡量標準的調節，可以在我們的收益報告中找到。

Today's call will also contain forward-looking statements that refer to future events and involve some risks. 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涉及未來事件並涉及一些風險的前瞻性陳述。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存在重大差異的因素的更多資​​訊。

I'll now turn it over to Maria.

我現在把它交給瑪麗亞。

Thank you, Danny, and thank you, everyone, for joining us. This morning, we reported strong first quarter results, including 7% revenue growth and 12% adjusted EPS growth. And we made significant progress on the 3 strategic priorities we shared with you last quarter.

謝謝丹尼，也謝謝大家加入我們。今天早上，我們公佈了強勁的第一季業績，包括 7% 的營收成長和 12% 的調整後每股盈餘成長。我們在上個季度與您分享的 3 個策略重點方面取得了重大進展。

Let me begin by quickly reviewing some of our financial highlights from the first quarter. We had a solid start to the year in Employer Services and new business bookings with record-level volume for a first quarter, which was supported by a particularly strong September. Among our best performers were our small business portfolio and our compliance-oriented solutions. Overall demand in HCM has remained steady, and we maintained a healthy new business pipeline at the end of the quarter across our business.

讓我先快速回顧一下我們第一季的一些財務亮點。我們在雇主服務和新業務預訂方面取得了良好的開局，第一季的數量創歷史新高，這得到了特別強勁的 9 月的支持。我們表現最好的是我們的小型企業組合和以合規為導向的解決方案。 HCM 的整體需求保持穩定，我們的業務在本季末保持了健康的新業務管道。

Our Employer Services retention rate once again exceeded our expectations. Although retention declined slightly versus the prior year, including in our small business portfolio, we continued to see resilience among our clients. More importantly, our overall NPS scores reached a new all-time high, positioning us to stay near these historically high retention levels.

我們的雇主服務保留率再次超出了我們的預期。儘管保留率與前一年相比略有下降（包括我們的小型企業投資組合），但我們仍然看到客戶的彈性。更重要的是，我們的整體 NPS 分數達到了歷史新高，使我們能夠保持在歷史最高保留水平附近。

Our Employer Services pays per control growth was 2% for the first quarter as our clients continue to add employees at a pace that is gradually slowing. And our PEO revenue growth of 3% in the quarter was relatively stable versus last quarter, reflecting solid PEO bookings performance, offset by deceleration in PEO pays per control growth. Don will speak to our updated guidance in a moment, but the demand environment for PEO as well as our other outsourcing services remained healthy.

第一季度，隨著我們的客戶繼續以逐漸放緩的速度增加員工，我們的雇主服務按控制付費成長率為 2%。本季我們的 PEO 營收成長 3%，與上季相比相對穩定，反映出 PEO 預訂業績強勁，但被 PEO 控制費用成長放緩所抵銷。 Don 稍後將談到我們更新的指導意見，但 PEO 以及我們其他外包服務的需求環境仍然健康。

Moving on, we made meaningful progress across all 3 of our strategic priorities that we outlined last quarter. Let me start with an update on some actions we took in Q1 to lead with best-in-class HCM technology. First, we began embedding Gen AI features into our products. In Q1, we integrated Gen AI into Roll to further enhance its conversational UI and make it even easier for small-business owners to quickly obtain customized payroll and HR guidance.

接下來，我們在上個季度概述的所有 3 個戰略重點方面都取得了有意義的進展。讓我先介紹一下我們在第一季採取的一些行動的最新情況，以引領一流的 HCM 技術。首先，我們開始將 Gen AI 功能嵌入到我們的產品中。第一季度，我們將 Gen AI 整合到 Roll 中，進一步增強其對話式 UI，讓小型企業主更輕鬆地快速獲得客製化的薪資和人力資源指導。

We also began rolling out ADP Assist, which delivers insights and recommendations to make complex HR work simple. We've enabled ADP Assist for select Workforce Now clients, beginning with the report of this feature that allows practitioners to easily extract the insights they're looking for. We look forward to continuing to build on the live feature set of ADP Assist to further enhance the experiences of both HR practitioners and employees.

我們也開始推出 ADP Assist，它提供見解和建議，使複雜的人力資源工作變得簡單。我們已經為選定的 Workforce Now 客戶啟用了 ADP Assist，首先是該功能的報告，該功能允許從業者輕鬆提取他們正在尋找的見解。我們期待繼續以 ADP Assist 的即時功能集為基礎，進一步增強人力資源從業人員和員工的體驗。

We also had some exciting product developments beyond AI. Our clients tell us they need personalized experiences and deep integrations to help them manage the complexity of running a business today. To help address this, we recently launched a new product called API Central, which enables businesses to easily and securely connect their ADP Workforce data across systems using pre-populated APIs and tools. This is a feature our clients have increasingly asked for, and we have already seen a strong uptake.

除了人工智慧之外，我們還開發了一些令人興奮的產品。我們的客戶告訴我們，他們需要個人化體驗和深度整合來幫助他們管理當今企業營運的複雜性。為了幫助解決這個問題，我們最近推出了一款名為 API Central 的新產品，它使企業能夠使用預先填充的 API 和工具輕鬆、安全地跨系統連接其 ADP 勞動力資料。這是我們的客戶越來越要求的功能，我們已經看到了強烈的採用率。

In Q1, we complemented the launch of API Central with the acquisition of Sora, an intelligent workflow automation and data integration tool. Sora's unique capabilities will allow our clients to automate people processes by unifying various applications such as HR, IT, CRM and more, creating a smarter and easier-to-use experience for our clients.

在第一季度，我們透過收購智慧工作流程自動化和資料整合工具 Sora 來補充 API Central 的推出。 Sora 的獨特功能將使我們的客戶能夠透過統一 HR、IT、CRM 等各種應用程式來實現人員流程自動化，從而為我們的客戶創造更聰明、更易於使用的體驗。

In Q1, we also launched ADP Workforce Now for Construction, a comprehensive offering designed to help clients with the unique payroll and HCM needs of the construction industry. This verticalized offering combines tailored Workforce Now capabilities and reporting with a team of dedicated specialists for the construction industry. While ADP has always served clients across the full spectrum of industries, construction stood up test as a vertical with enough complexity to warrant a more tailored solution. And we're excited to further strengthen our offering in the mid-market.

在第一季度，我們還推出了 ADP Workforce Now for Construction，這是一項全面的產品，旨在幫助客戶滿足建築行業獨特的薪資和 HCM 需求。這種垂直化產品將量身定制的 Workforce Now 功能和報告與建築業的專業專家團隊結合。雖然 ADP 始終為各行各業的客戶提供服務，但建築業作為垂直行業經受住了考驗，具有足夠的複雜性，可以保證提供更量身定制的解決方案。我們很高興能夠進一步加強我們在中端市場的產品。

We also announced the launch of our corporate venture capital fund earlier this month. Leading with best-in-class HCM technology requires that we stay attuned to the frontier of HCM innovation. And now in addition to the organic efforts we are developing in ADP Ventures, we will invest in and partner with early-stage start-ups to strengthen our core business and to extend into natural adjacencies. Two of our early investments focus on improving lifestyle benefits to drive associate engagement and simplifying the incredibly complex lead management process that businesses and their workers have to address. We're excited to build on these partnerships and develop new ones.

本月早些時候，我們也宣布推出企業創投基金。領先的一流 HCM 技術要求我們隨時專注於 HCM 創新的前沿。現在，除了我們在 ADP Ventures 中進行的有機努力之外，我們還將投資早期新創公司並與其合作，以加強我們的核心業務並擴展到自然鄰近地區。我們的兩項早期投資著重於改善生活方式福利，以提高員工參與度，並簡化企業及其員工必須解決的極其複雜的銷售線索管理流程。我們很高興能夠建立這些合作夥伴關係並發展新的合作關係。

Overall, Q1 was a very busy quarter on the product front, with much of the work we're doing representing seeds of innovation that will position us to continue shaping the future of work.

總體而言，第一季是產品方面非常繁忙的一個季度，我們所做的大部分工作代表了創新的種子，這將使我們能夠繼續塑造工作的未來。

Our second strategic priority is to provide unmatched expertise in outsourcing solutions. In addition to launching the pilot of ADP Assist for our clients, we also launched the pilot of our new Agent Assist, embedding Gen AI and the flow of work for ADP associates. So far, we have enabled our call summarization capability to select associates. Thanks to this Agent Assist feature, those service associates no longer need to spend time writing up case notes after client calls, which should make our associates more effective and also allow us to quickly aggregate real-time client feedback to continuously improve our products.

我們的第二個策略重點是提供外包解決方案方面無與倫比的專業知識。除了為我們的客戶啟動 ADP Assist 試點之外，我們還啟動了新的 Agent Assist 試點，為 ADP 員工嵌入 Gen AI 和工作流程。到目前為止，我們已經啟用了呼叫摘要功能來選擇員工。由於此代理協助功能，這些服務人員不再需要在客戶致電後花時間編寫案例說明，這應該使我們的員工更加高效，也使我們能夠快速匯總實時客戶反饋，以不斷改進我們的產品。

We are also piloting Agent Assist real-time guidance for our associates to help them with support content and guided workflows and to more easily share their accumulated knowledge in a way that's customized to individual client cases. We are excited to continue working toward additional Agent Assist features to help our implementation and service associates deliver better, faster service and to help our client satisfaction scores continue to reach new record levels.

我們也為我們的員工試行 Agent Assist 即時指導，以幫助他們提供支援內容和指導工作流程，並以針對個別客戶案例量身定制的方式更輕鬆地分享他們累積的知識。我們很高興繼續致力於開發更多代理協助功能，以幫助我們的實施和服務人員提供更好、更快的服務，並幫助我們的客戶滿意度分數繼續達到新的記錄水平。

Our third strategic priority is to benefit our clients through our global scale. And in Q1, we expanded on this advantage. In August, we extended our leading global footprint by acquiring the payroll business of BTR, our long-time partner in Sweden. Acquisitions like this strengthen our multi-country payroll ecosystem while also positioning us to grow a local HCM business in countries with attractive growth prospects.

我們的第三個策略重點是透過我們的全球規模使我們的客戶受益。在第一季度，我們擴大了這一優勢。 8 月，我們透過收購瑞典長期合作夥伴 BTR 的薪資業務，擴大了我們在全球的領先地位。此類收購加強了我們的多國薪資生態系統，同時也使我們能夠在成長前景誘人的國家發展本地 HCM 業務。

In Q1, we launched Roll in Ireland, representing the beginning of an expansion into the European market where we believe an AI-based payroll app, coupled with our existing on-the-ground ecosystem, will allow us to expand our SMB business outside the U.S. And during Q1, we also announced plans to deepen our existing partnership with Workday to deliver enhanced global payroll, compliance and HR for the many clients we jointly serve around the world. Partnerships like this reflect our long-standing commitment to provide the personalization and overall experience our clients desire.

第一季度，我們在愛爾蘭推出了Roll，這代表著我們向歐洲市場擴張的開始，我們相信基於人工智慧的薪資應用程序，加上我們現有的實地生態系統，將使我們能夠將中小型企業業務擴展到歐洲以外的地區。在第一季度，我們也宣布計劃深化與Workday 的現有合作夥伴關係，為我們在世界各地共同服務的眾多客戶提供增強的全球薪資、合規性和人力資源服務。這樣的合作關係體現了我們長期以來致力於提供客戶所需的個人化和整體體驗。

Before turning it over to Don, I wanted to highlight a couple of milestones in 2 of our businesses. Our suite of workforce management solutions, sometimes referred to as time and labor management, reached more than 125,000 clients in the first quarter, benefiting from a double-digit growth rate these last few years. Scheduling and precisely tracking time has become more important for employers over recent years in order to meet evolving legislative requirements, and we look forward to continuing to invest in our workforce management solutions to drive higher client attach rates.

在將其交給 Don 之前，我想強調我們兩個業務中的幾個里程碑。我們的勞動力管理解決方案套件（有時稱為時間和勞動力管理）在第一季涵蓋了超過 125,000 名客戶，受益於過去幾年的兩位數成長率。近年來，為了滿足不斷變化的立法要求，安排和精確追蹤時間對於雇主來說變得更加重要，我們期待繼續投資於我們的勞動力管理解決方案，以提高客戶的使用率。

We also now serve more than 150,000 retirement services clients, which is up more than 20% from 125,000 clients we served at the end of fiscal 2022. We anticipate growth for our retirement services business will remain strong in the years ahead as the provisions of the SECURE Act 2.0 and additional state mandates continue to phase in and as companies of all sizes continue to recognize the importance of positioning their workers well for their eventual retirement.

我們現在也為超過150,000 名退休服務客戶提供服務，比2022 財年底我們服務的125,000 名客戶增長了20% 以上。我們預計，隨著《退休金法案》的規定，我們的退休服務業務在未來幾年將保持強勁成長。隨著各種規模的公司不斷認識到為員工的最終退休做好準備的重要性，《安全法案 2.0》和其他州政府指令繼續逐步實施。

I'm proud of our start to fiscal 2024 with both strong financial results and meaningful strategic progress. Our road map for the months ahead is keeping us incredibly busy. And with this in mind, I'd like to take a moment to recognize our associates across sales, service, implementation and technology whose efforts and outstanding performance are positioning us to consistently deliver for our clients and our shareholders. Thank you all.

我對 2024 財年伊始取得的強勁財務業績和有意義的策略進展感到自豪。未來幾個月的路線圖讓我們異常忙碌。考慮到這一點，我想花一點時間向我們的銷售、服務、實施和技術部門的員工表示認可，他們的努力和出色的業績使我們能夠始終如一地為我們的客戶和股東提供服務。謝謝你們。

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 color on our results for the quarter and update you on our fiscal '24 outlook. Overall, we had a solid Q1 and are not making changes to our consolidated outlook, but there are some moving pieces I'll cover.

謝謝你，瑪麗亞，大家早安。我將提供有關本季度業績的更多信息，並向您介紹我們 24 財年展望的最新情況。總體而言，我們第一季的業績表現穩健，並且不會改變我們的綜合前景，但我將介紹一些動態的內容。

Let me start with Employer Services. ES segment revenue increased 9% on a reported basis and 8% on an organic constant currency basis, ahead of our expectations. As Maria shared, ES new business bookings had a solid start with especially strong growth in September. The demand environment is stable, our pipelines are healthy and we are on track for our 4% to 7% growth guidance.

讓我從雇主服務開始。 ES 部門營收在報告基礎上成長了 9%，在有機固定匯率基礎上成長了 8%，超出了我們的預期。正如瑪麗亞分享的那樣，ES 新商務預訂有了一個良好的開端，九月的成長尤其強勁。需求環境穩定，我們的管道健康，我們預計將實現 4% 至 7% 的成長指導。

Our ES retention did decline slightly in Q1 versus the prior year, but that was slightly better than we expected. At this point, we are maintaining our outlook for a 50 to 70 basis point decline in full year retention, which continues to embed an expectation for small business losses to increase due to higher out-of-business rates. But if recent trends continue, then we would hope to outperform that range.

我們的 ES 保留率在第一季與去年相比確實略有下降，但略好於我們的預期。目前，我們維持全年保留率下降 50 至 70 個基點的預期，這繼續包含了由於較高的停業率而導緻小型企業損失增加的預期。但如果最近的趨勢持續下去，那麼我們希望能跑贏這個範圍。

ES pays per control growth was in line with our expectation in Q1. It decelerated modestly to 2%, and we expect this very gradual deceleration to continue in the coming quarters and are maintaining our outlook for 1% to 2% growth for the full year.

ES 按控制付費成長符合我們第一季的預期。它小幅減速至 2%，我們預計這種非常緩慢的減速將在未來幾季繼續下去，並維持全年 1% 至 2% 成長的預期。

Client funds interest revenue increased in line with our expectation in Q1, but we're raising our full year outlook based on the latest forward yield curve, which resulted in a modest increase in average yield to 2.9% from our prior expectation of 2.8%. We now expect client funds interest revenue as well as the net impact from our client funds extended strategy to be up $35 million from our prior outlook.

第一季客戶資金利息收入的成長符合我們的預期，但我們根據最新的遠期殖利率曲線上調了全年預期，這導致平均殖利率從我們先前預期的 2.8% 小幅上升至 2.9%。我們現在預期客戶資金利息收入以及客戶資金擴展策略的淨影響將比我們先前的預期增加 3,500 萬美元。

Meanwhile, the U.S. dollar strengthened, representing a drag relative to our prior fiscal '24 revenue outlook. In total, our strong Q1 ES revenue growth, combined with higher-than-expected client funds revenue for the rest of the year, effectively offset the adverse FX movement. And we're maintaining our fiscal '24 ES revenue growth range of 7% to 8%.

同時，美元走強，相對於我們之前的 24 財年收入前景來說是一個拖累。總的來說，我們第一季 ES 收入的強勁成長，加上今年剩餘時間高於預期的客戶資金收入，有效抵消了不利的外匯走勢。我們將 24 財年 ES 營收成長範圍維持在 7% 至 8%。

Our ES margin increased 220 basis points in Q1, driven by both operating leverage and contribution from client funds interest revenue. For the full year, we are raising our fiscal '24 outlook to now anticipate an increase of 150 to 170 basis points, which reflects the benefit of higher yields, partially offset by higher spend on Gen AI projects and usage as well as a small amount of dilution from our recent acquisitions.

在營運槓桿和客戶資金利息收入貢獻的推動下，我們的 ES 利潤率在第一季增加了 220 個基點。對於全年，我們將 24 財年的展望上調，目前預計將增長 150 至 170 個基點，這反映了收益率上升的好處，但部分被 Gen AI 項目和使用的支出增加以及少量資金所抵消。我們最近的收購帶來的稀釋。

Moving on to the PEO, we had 3% revenue growth, driven by 2% growth in average worksite employees in Q1. As Maria mentioned earlier, our PEO bookings growth was solid, but pays per control growth continued to slow and was lower than expected, particularly for clients in the professional services and tech industries. This resulted in a slightly softer Q1 worksite employee count than we were anticipating.

繼續到 PEO，我們的收入成長了 3%，這得益於第一季平均工作場所員工成長 2%。正如瑪麗亞之前提到的，我們的 PEO 預訂增長穩健，但每次控制付費成長繼續放緩並低於預期，特別是對於專業服務和科技行業的客戶。這導致第一季現場員工人數比我們預期的要少一些。

As a result, we now expect fiscal 2024 PEO revenue growth of 3% to 4% with growth in average worksite employees of 2% to 3%. Our PEO sales pipelines are healthy, and we continue to forecast their worksite employee growth gradually ramping in the back half of fiscal '24.

因此，我們現在預計 2024 財年 PEO 營收將成長 3% 至 4%，平均工作場所員工將成長 2% 至 3%。我們的 PEO 銷售管道很健康，我們繼續預測他們的工作場所員工成長將在 24 財年後半段逐漸增加。

PEO margin decreased 90 basis points in Q1, which is more than we had planned. The decline was primarily driven by a lower workers' compensation reserve release benefit as well as higher selling expenses. We now expect PEO margin to be down between 50 and 100 basis points in fiscal '24, with a continued assumption for higher selling expenses as well as year-over-year headwind from a lower workers' compensation reserve release benefit that we experienced in fiscal '23.

第一季 PEO 利潤率下降 90 個基點，超出我們的計劃。下降的主要原因是工人賠償準備金發放福利減少以及銷售費用增加。我們現在預計 24 財年 PEO 利潤率將下降 50 至 100 個基點，繼續假設銷售費用增加，以及我們在 20 財年經歷的工人賠償準備金發放福利減少帶來的同比逆風。 '23。

Putting it all together, there is no change to our consolidated outlook, but I would like to share some color on cadence. In Q2, our client funds balance growth will lack the impact of the payroll tax deferral that we've had in our average balance for the past 2 years, which creates some [grow-over] pressure on our client funds balance and will result in more modest ES margin expansion in Q2 than other quarters this year as well as a modest revenue impact.

總而言之，我們的綜合展望沒有變化，但我想分享一些關於節奏的色彩。在第二季度，我們的客戶資金餘額成長將缺乏過去兩年平均餘額中工資稅遞延的影響，這會對我們的客戶資金餘額造成一些[成長]壓力，並將導致第二季度的ES 利潤率擴張比今年其他季度更為溫和，對營收的影響也較小。

As a result, we expect consolidated revenue growth to moderate before accelerating slightly in the back half. And we expect adjusted EBIT margin to be down slightly before ramping in the back half of the year. This was already contemplated in our guidance at the outset of the year.

因此，我們預計綜合收入成長將放緩，然後在下半年略有加速。我們預計調整後的息稅前利潤率將小幅下降，然後在今年下半年有所上升。我們在年初的指導中就已經考慮到了這一點。

So again, no change to our consolidated guidance. We continue to forecast fiscal '24 consolidated revenue growth of 6% to 7% with our adjusted EBIT margin expanding by 60 to 80 basis points. We still expect our effective tax rate for fiscal '24 to be around 23%, and we anticipate adjusted EPS growth of 10% to 12%.

同樣，我們的綜合指導沒有改變。我們持續預測 24 財年合併收入成長 6% 至 7%，調整後的息稅前利潤率將擴大 60 至 80 個基點。我們仍預期 24 財年的有效稅率約為 23%，調整後每股盈餘成長預計為 10% 至 12%。

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

謝謝。現在我將把它轉回米歇爾進行問答。

(Operator Instructions) We will take our first question from the line of Samad Samana with Jefferies.

（操作員說明）我們將透過 Samad Samana 和 Jefferies 提出第一個問題。

Maybe first, just want to double click on the PEO side. I think that the information you gave helps us understand some of what happened in the revised guidance. But maybe just help us understand what's giving that back half ramp confidence, especially as you expect pays per control in the kind of broader macro to continue to decelerate. Where should we get the acceleration in the PEO WSEs? Is it purely based on bookings ramping? Is it based on an expectation that the base will stabilize? Maybe just dig into that a little bit further because they're moving in different directions.

也許首先，只需雙擊 PEO 一側。我認為您提供的資訊有助於我們了解修訂後的指南中發生的一些事情。但也許只是幫助我們了解是什麼給了後半坡信心，特別是當你預計在更廣泛的宏觀經濟中每個控制的支出將繼續減速時。我們應該從哪裡獲得 PEO WSE 的加速？純粹是基於預訂量的增加嗎？是基於基礎穩定的預期嗎？也許只是進一步深入研究一下，因為他們正在朝著不同的方向前進。

You bet. Samad, it's Maria here. I thought I'd kind of break down your question with respect to the PEO, call it double click. So I'll start by commenting on the first quarter. So as mentioned, we did see deceleration in PEO pays per control. So as Don mentioned in the opening comments, that is a by-product of what we're seeing in the pressure with respect to -- as you know, that business tends to skew more into professional services, technology. The pays per control deceleration is happening at a faster clip in those cohorts than the broader base. And so said differently, the pays per control growth in the PEO is decelerating faster than we expected and faster specifically in those cohorts.

你打賭。薩馬德，我是瑪麗亞。我想我應該分解你關於 PEO 的問題，稱之為雙擊。因此，我將首先評論第一季。如前所述，我們確實看到 PEO 為每個控制項支付的費用有所下降。正如唐在開場白中提到的那樣，這是我們在壓力下看到的副產品——正如你所知，業務往往更偏向於專業服務和技術。在這些群體中，每次控制費用的減速發生得比更廣泛的群體更快。換句話說，PEO 中每位控制人員的薪資成長減速比我們預期的要快，特別是在這些群體中減速得更快。

So in terms of contribution, that is the contribution to the deceleration or the new guide to worksite employee growth that we're seeing in the first quarter. We did have strong bookings in PEO in the first quarter. That said, it did come in slightly below what we had hoped for. So it was still higher than overall Employer Services. It was a good quarter for the PEO, and this is now the third quarter in a row that we've seen strength in bookings in the PEO. And that's important to note because really, the strength in PEO bookings is what ultimately will yield the reacceleration that you're asking about in the back half; that, coupled with kind of what we're seeing in retention.

因此，就貢獻而言，這就是我們在第一季看到的對減速的貢獻或對工作場所員工成長的新指南的貢獻。第一季我們對 PEO 的預訂確實很強勁。也就是說，它確實略低於我們的預期。因此，它仍然高於整體雇主服務。對於 PEO 來說，這是一個不錯的季度，現在已經是我們連續第三個季度看到 PEO 的預訂量強勁。值得注意的是，事實上，PEO 預訂的強勁最終將帶來您在後半段所要求的重新加速；再加上我們在保留方面看到的一些情況。

So while retention is stable and stabilizing inside the PEO, it isn't back to the high growth levels that we saw, call it, a couple of years ago, in the last year or so. And as such, as those compares continue to lap, coupled with retention continuing to accelerate, if you will, versus stabilize, we will see contributions from retention, we'll see more contributions from bookings, and that's really why we anticipate the worksite employee guide for the year that we've given.

因此，雖然 PEO 內部的保留率穩定且穩定，但它並沒有回到我們幾年前、去年左右看到的高成長水準。因此，隨著這些比較繼續進行，再加上保留率繼續加速，如果你願意的話，與穩定相比，我們將看到保留率的貢獻，我們將看到來自預訂的更多貢獻，這就是我們預計現場員工的真正原因我們給出的那一年的指南。

Great. And then, Maria, I actually had a follow-up for you as well on the international side. We have seen the rollout of the product into Ireland. And I'm just curious, how should we think about the expansion beyond the U.S.? I know ADP already has a presence, and it's a meaningful contributor to revenue, but just should we think about international maybe being an offset to some of the slowdown that we're seeing in U.S. revenue? Just how should we think about the cadence and impact as you move more international with your core HCM solutions versus just helping U.S. employers that already had an international presence?

偉大的。然後，瑪麗亞，實際上我在國際方面也為您做了後續工作。我們已經看到該產品在愛爾蘭的推出。我只是很好奇，我們該如何考慮美國以外的擴張？我知道 ADP 已經佔有一席之地，而且它對收入做出了有意義的貢獻，但我們是否應該考慮國際業務可能會抵消我們所看到的美國收入放緩的影響？當您利用核心 HCM 解決方案走向國際化，而不是僅僅幫助已經擁有國際影響力的美國雇主時，我們應該如何考慮節奏和影響？

Yes, absolutely. So I'll speak to Roll, which is what I commented on in the opening comments. So we did roll out, no pun intended, our Roll offering into Ireland. And it is an exciting bit for us, albeit it's very, very early days, right? It's actually only been a couple of weeks, but we're excited about it because it's the first of many countries where we intend on taking this, call it, very downmarket offering into our various countries throughout international. And it's really about marrying that product. But what we see is still potentially greenfield opportunity within our international space and really leveraging the ecosystem that we have. That's everything from distribution to all the services, call it, around the offers in various countries. So we're very excited about that.

是的，一點沒錯。因此，我將與羅爾交談，這就是我在開場評論中所評論的內容。因此，我們確實在愛爾蘭推出了我們的 Roll 產品，這不是雙關語。這對我們來說是一件令人興奮的事情，儘管現在還處於非常非常早期的階段，對吧？實際上只過了幾週，但我們對此感到興奮，因為這是我們打算在國際上向各個國家/地區提供這種非常低端市場的產品的第一個國家。這實際上是為了與該產品結合。但我們在國際空間中看到的仍然是潛在的綠地機會，並真正利用我們擁有的生態系統。這包括從分銷到所有服務（稱之為，圍繞各個國家/地區的報價）的一切。所以我們對此感到非常興奮。

Now in terms of the overall growth contributions in the short term of rolling out Roll into Ireland, I would say they're negligible. I would say even Roll over time this year, I think it would be not a meaningful contributor to bookings. To me, I think this is really about a long-term investment that we're making across international and what we see as a continued opportunity for us.

現在，就在愛爾蘭推出 Roll 的短期整體成長貢獻而言，我認為它們可以忽略不計。我想說，即使今年延期，我認為這也不會為預訂做出有意義的貢獻。對我來說，我認為這實際上是我們在國際上進行的長期投資，也是我們認為的持續的機會。

So you kind of mentioned these companies that have a presence in Europe that exist in the U.S. with folks working in or call it in international. And the answer is this is both that, coupled also with a lot of our, what I would say, best-of-breed offerings in international. So we see growth opportunity really across the board in international, and that's everything from the down market, which we're going after now with this new product offering of Roll. So we see it in the SMB space, we see it in our best-of-breed space and we also see it in our global MNC space. So really excited about the long-term growth opportunity that continues to be international.

所以你提到了這些在歐洲有業務、在美國有業務的公司，他們的員工在國際上工作或稱之為國際。答案是，兩者兼而有之，再加上我們在國際上提供的許多同類最佳產品。因此，我們在國際市場上真正看到了全面的成長機會，而這就是來自低端市場的一切，我們現在正在透過 Roll 的新產品來追求這一目標。因此，我們在中小企業領域、我們的最佳領域以及全球跨國公司領域都看到了這一點。對於持續國際化的長期成長機會感到非常興奮。

And while I'm on international, I thought I would just mention because it's important to note, we did have a very strong quarter with respect to international, albeit that quarter is obviously off of a compare Q1 of last year that was less favorable, but it is on the heels of what was a very strong fourth quarter finish in international. And so all the way around, I continue to be incredibly excited and optimistic about what it is that we can go accomplish and continue to build in our international offering.

當我談到國際業務時，我想我只想提一下，因為值得注意的是，我們在國際業務方面確實有一個非常強勁的季度，儘管該季度顯然與去年第一季的情況相比不太有利，但這是在國際比賽第四節非常強勁的表現之後發生的。因此，自始至終，我對我們能夠實現並繼續打造​​我們的國際產品感到非常興奮和樂觀。

Our next question comes from Bryan Bergin with TD Cowen.

我們的下一個問題來自 Bryan Bergin 和 TD Cowen。

So Maria, I was hoping if you can comment on just how you're seeing the overall macro situation evolve and maybe how that may affect demand. And if you can specifically unpack that within the ES segment, maybe talk about some of the areas that came in better than you expected versus any areas that may have been lighter or downtick versus the prior quarter.

瑪麗亞，我希望您能評論您如何看待整體宏觀情況的演變，以及這可能如何影響需求。如果您可以在 ES 細分市場中具體分析這一點，也許可以談談一些比您預期更好的領域，以及與上一季相比可能較輕或下降的領域。

Absolutely. Bryan, so happy to comment on what we saw in the first quarter with respect to the overall performance of bookings but also the demand. So I'll kind of start with the overall performance. I mentioned in the opening comments, we did see strength, continued strength in our down market. So really excited about that. Also saw tremendous strength in our compliance solutions offering. So think of it as all the stuff that hits compliance, tax, things of that nature. So we're pleased with what we saw with respect to our new business bookings. Those are the 2 that really outperformed.

絕對地。布萊恩，很高興對我們在第一季看到的預訂整體表現和需求發表評論。所以我將從整體表現開始。我在開場評論中提到，我們確實看到了低迷市場的力量，持續的力量。對此我真的很興奮。也看到了我們的合規解決方案產品的巨大優勢。因此，可以將其視為所有影響合規性、稅收等性質的事物。因此，我們對新業務預訂的情況感到滿意。這些是真正表現出色的兩個。

And it's exciting to see because really that entire down market offering, and that's everything from our RUN offering to retirement services, insurance services, we continue to see tremendous strength there. We saw that all of last year and definitely the -- to finish last year, and it makes me happy because it's a lot of the places that -- well, good performance makes me happy regardless. But it's a lot of the places where we've been making meaningful investments both in the product as well as the distribution. So excited to see the continued performance there and the outperformance.

令人興奮的是，因為實際上整個低端市場產品，從我們的 RUN 產品到退休服務、保險服務，我們繼續看到那裡的巨大實力。我們去年一整年都看到了這一點，而且肯定是去年結束的，這讓我很高興，因為有很多地方——嗯，無論如何，良好的表現讓我很高興。但我們在許多地方都在產品和分銷方面進行了有意義的投資。很高興看到那裡的持續表現和出色表現。

The overall results do keep us in line with our full year guide. So excited to confirm that again here today. In terms of the overall demand environment, and I feel like I've been saying this quarter-to-quarter, but we're not really seeing any major changes in demand. Demand is still -- strong demand is still healthy. We see that in our bookings results. There are all sorts of other indicators that we look at in terms of pipelines in the upmarket, in the mid-market. Certainly, in the down market, we're looking at things such as the new appointments and kind of activity measures to really give us a guide on whether demand is strong.

整體結果確實使我們與全年指南保持一致。很高興今天在這裡再次確認這一點。就整體需求環境而言，我覺得我一直在講每個季度的情況，但我們並沒有真正看到需求發生任何重大變化。需求依然強勁——強勁的需求仍然是健康的。我們在預訂結果中看到了這一點。我們也關注高端市場和中端市場的管道方面的各種其他指標。當然，在低迷的市場中，我們正在研究諸如新的任命和活動措施之類的事情，以便真正為我們提供需求是否強勁的指導。

And I would tell you, pipelines are healthy year-on-year, and certainly activity is healthy. And so we don't see a big demand change again this quarter. In fact, kind of the opposite stepping into the quarter on the heels of a strong September, we feel really good about where our pipelines sit year-on-year, which again is giving us the confidence in the full year guide.

我想告訴你，管道逐年健康，活動當然也健康。因此，本季我們不會再看到需求發生重大變化。事實上，與在強勁的 9 月之後進入本季度的情況相反，我們對我們的管道同比情況感到非常滿意，這再次讓我們對全年指南充滿信心。

As always, though, Bryan, we continue to keep an eye on the macro. We continue to keep an eye on our global space and international and making sure that we're understanding both any macroeconomic changes, coupled with any demand environment that could shift, given everything kind of going on in the world, if you will. So that's the current story on kind of pipeline demand in the quarter.

不過，布萊恩，我們一如既往地繼續關注宏觀經濟。我們繼續關注我們的全球空間和國際，並確保我們了解任何宏觀經濟變化，以及任何可能變化的需求環境，考慮到世界上正在發生的一切，如果你願意的話。這就是本季管道需求的最新情況。

Yes. If I could add a couple of comments on the macro. Certainly, macro continues to be pretty positive. Unemployment rates continue to be near decade lows here in the United States. Unemployment rates around the world continue to be quite low. The discussion about whether or not we're going to be in a recession, the odds are now not for a recession. So soft land is pretty much what is being anticipated. Interest rates are expected to have peaked here in the U.S. So I think all things considered, things are pretty positive.

是的。如果我可以在巨集上添加一些註解。當然，宏觀經濟仍然相當樂觀。美國的失業率持續接近十年來的低點。世界各地的失業率仍然很低。關於我們是否會陷入衰退的討論，現在看來，衰退的可能性不大。所以軟土地幾乎是我們所期待的。預計美國的利率將達到頂峰，因此我認為考慮到所有因素，情況相當積極。

I think the one area that we put in, in our original guidance for the year and that we continue to look at is our guidance had, in fact, contemplated the slowing in pays per control growth. Maria mentioned that, and we talked about that in the PEO business. But we are confident we are still seeing growth, albeit we are seeing growth at a slower pace than we had previously. But once again, that was fully contemplated in our original guide for the year.

我認為，我們在今年最初的指導中提出並繼續關注的一個領域是，我們的指導實際上考慮到了每個控制點薪酬成長的放緩。瑪麗亞提到了這一點，我們在 PEO 業務中也談到了這一點。但我們相信我們仍然會看到成長，儘管我們看到成長速度比以前慢。但我們今年最初的指南再次充分考慮了這一點。

Okay, that's helpful. My follow-up on the PEO. So I heard that bookings are a little bit lighter than you expected to start. But you're also calling out, I think, higher selling expenses impacting the PEO margins here year-over-year. So can you maybe talk about the puts and takes there driving that dynamic?

好的，這很有幫助。我對 PEO 的後續行動。所以我聽說預訂量比您預期的要少一些。但我認為，您也指出，較高的銷售費用會逐年影響 PEO 的利潤率。那麼您能否談談推動這種動態的看跌期權和看跌期權？

Specifically on PEO margins, I'll let Don...

特別是在 PEO 利潤方面，我會讓 Don...

Well, I think originally, Bryan, you mentioned that bookings were lighter than expected. I think our bookings came in -- bookings had been pretty good, as Maria has mentioned...

嗯，布萊恩，我想最初您提到預訂量比預期要少。我想我們的預訂量已經收到了——正如瑪麗亞提到的那樣，預訂量相當不錯…

Yes, I think he's referencing the comment I made around PEO bookings was slightly lighter than expected. By the way, it's still higher than ES, which we expect to be the case throughout the balance of the year. So that's the kind of nuanced...

是的，我認為他指的是我對 PEO 預訂的評論比預期的要輕一些。順便說一句，它仍然高於 ES，我們預計今年餘下的時間都是這種情況。所以這就是那種微妙的...

So I guess the sort of question there, are you also citing higher selling expenses impacting the PEO margins? So it seems like there's a bit of a disconnect there. Just trying to understand that.

所以我想問題是，您是否也提到較高的銷售費用影響了 PEO 的利潤？因此，似乎存在一些脫節。只是想了解這一點。

Yes. So we had planned the year. We talked about the growth being stronger in the second half in bookings -- or sorry, in margins than in the first half. And certainly, we have seen some investments and some higher selling expenses, and we'll see in the first half than we will in the second half. But nothing really surprising, a little bit off, but certainly we're in line with what we expected.

是的。所以我們已經計劃好了這一年。我們談到下半年預訂量的成長——或者抱歉，利潤率的成長比上半年更強。當然，我們已經看到了一些投資和一些更高的銷售費用，我們將在上半年看到比下半年更多的情況。但沒什麼真正令人驚訝的，有點偏離，但我們確實符合我們的預期。

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詹姆斯·福賽特。

I wanted to ask just a couple of quick follow-up questions. First, I think the comment was made that you're still anticipating a bit worse performance in terms of out-of-business rates on a go-forward basis. But to date, those have been a little bit better than you had anticipated. Can you help provide some detail as to what you're seeing, why you think we're seeing better survival rates and kind of the things you may be looking at as indicators that, that could get worse on a go-forward basis?

我只想問幾個快速的後續問題。首先，我認為有人評論說，您仍然預計未來停業率的表現會更差。但迄今為止，這些情況比您預期的要好一些。您能否幫忙提供一些細節，說明您所看到的情況，為什麼您認為我們看到了更好的生存率，以及您可能將其視為未來情況可能會變得更糟的指標？

Yes, demand continues to be strong in the economy overall. And I think that's supporting what tends to be this view that we're not going to enter into a recession, that that's just going to be a soft landing. So I think that strong demand environment, particularly in consumer demand, is keeping small business afloat.

是的，整體經濟的需求仍然強勁。我認為這支持了一種觀點，即我們不會陷入衰退，而只會實現軟著陸。因此，我認為強勁的需求環境，特別是消費者需求，正在讓小型企業維持下去。

So when you also look at what we're seeing in terms of new business formations, there seems to be continued strength in new business formations. So generally, I would say that the environment, irrespective of the higher interest rates, the environment continues to be favorable for small business, and I think that's translating itself into what looks to be lower out of business than contemplated.

因此，當你看到我們在新業務形態方面所看到的情況時，你會發現新業務形態似乎持續強勁。因此，總的來說，我想說，無論利率如何提高，環境仍然有利於小型企業，我認為這正在轉化為看起來比預期更低的停業。

Now we have continued, as we said in our original guide and as we will reiterate or update here today, we have continued to think that we will see a little bit more normalization in other business. So we have contemplated that, but we think we are getting closer to where we think we're going to plateau or hit the bottom there. So I think we're very close. And once again, I think it just comes back to demand environment, it tends to be supporting the economy more broadly and more generally and small businesses benefiting from that as well.

現在，正如我們在最初的指南中所說的那樣，正如我們今天將在這裡重申或更新的那樣，我們繼續認為我們將看到其他業務更加正常化。所以我們已經考慮過這一點，但我們認為我們正在接近我們認為將達到穩定或觸底的水平。所以我認為我們非常接近。我再次認為這又回到了需求環境，它往往會更廣泛、更普遍地支持經濟，小企業也從中受益。

Yes, I think if I may, I think the only thing I would add is that it's still very early in the year, right? So when I think about retention, we did have a record level in fiscal '23. We were near that record level a year before. We were at that record level the year before that. And so we've had this tremendous strength, and I think Don is spot on in terms of all the reasons from a macro perspective that we've had that strength in terms of client retention. And so as that normalizes, we believe it's still prudent for us to have the retention guide that we have, which is really a by-product of how we planned the year in the back half.

是的，我想如果可以的話，我想我唯一要補充的是，現在還為時過早，對吧？因此，當我考慮保留率時，我們在 23 財年確實達到了創紀錄的水平。一年前我們就接近這個紀錄水準。前一年我們就達到了創紀錄的水準。因此，我們擁有如此巨大的優勢，我認為從宏觀角度來看，唐在所有原因方面都是正確的，我們在客戶保留方面擁有這種優勢。因此，隨著這種情況的正常化，我們認為擁有現有的保留指南對我們來說仍然是謹慎的，這實際上是我們下半年計劃的副產品。

So I think I got the question last quarter, and so I'll answer it proactively this quarter, which is, are we just being conservative? And I think the answer to that question is it's still early in the year. And so if we do continue to outperform retention in the way that we outperformed in the first quarter, we hope that we will outperform for the full year. It's just early to take away that conservatism sitting here just 3 short months into a very long year.

所以我想我上個季度就收到了這個問題，所以這個季度我會主動回答這個問題，那就是，我們只是保守嗎？我認為這個問題的答案是現在還為時過早。因此，如果我們確實繼續像第一季那樣表現出色，那麼我們希望全年表現也能優於保留率。現在距離漫長的一年只有短短三個月的時間，消除這種保守主義還為時過早。

Yes, yes. And then I want to go back to kind of a headline-related question. You saw that you saw -- or you indicated that you had seen kind of a 25,000 sequential improvement in retirement services. And for clients, you alluded to some state mandates there, particularly around SECURE Act 2.0. Can you talk a little bit about what state mandates you've seen or may be impacting that business? Or how long before we start to see benefit in retirement services post the new state mandates? So maybe we can help track headlines and anticipate like how big of an impact any new requirements may have.

是的是的。然後我想回到與標題相關的問題。你看到了——或者你表示你看到了退休服務連續 25,000 項改善。對於客戶來說，您提到了一些州的強制規定，特別是圍繞《安全法案 2.0》的規定。您能談談您所看到的或可能影響該業務的國家指令嗎？或者說，在新的州規定實施後，我們多久才能開始看到退休服務的好處？因此，也許我們可以幫助追蹤頭條新聞並預測任何新要求可能產生的影響有多大。

Absolutely. So I think I've spoken quite a bit to retirement services as well as the SECURE Act over the last year or so. And I will tell you, I was excited to report the new milestone today, in part because that business continues to show strength, but also because it's a business that I know is adding tremendous value into the world of work.

絕對地。因此，我想在過去一年左右的時間裡，我已經就退休服務以及《安全法案》談了很多。我會告訴你，我很高興今天能夠報告這個新的里程碑，部分原因是該業務繼續展現出實力，而且還因為我知道該業務正在為工作世界增加巨大的價值。

And so it is an exciting time. It does come as a by-product of the offering, the investments we've made into the offering and also the state mandates, some of which are anchored into the SECURE Act at the federal level, some of which are anchored state by state. Candidly, I could probably spend an hour with you and go state by state in terms of all the various mandates.

所以這是一個令人興奮的時刻。它確實是產品、我們對產品的投資以及州強制令的副產品，其中一些是在聯邦層級的《安全法案》中規定的，其中一些是在各州規定的。坦白說，我可能會花一個小時與您一起，逐個州討論所有不同的任務。

What we see over the next year or so is the threshold of companies that needs to comply with the state mandates, starts to creep into, call it, the further down market, if not the micro market. And so as all these states, a lot of them being on the West Coast, if you're looking for headlines, tracking spaces like California, as they continue to pull down at what level do you need to comply with the state mandates and/or the SECURE Act, the more opportunity we will have to ensure that we're helping our clients solve for this piece, keep them compliant. But again, back to doing good in the world, it's also something that's bringing the value to each one of these employees that are engaging with these clients. So...

我們在未來一年左右看到的是，需要遵守國家指令的公司的門檻，開始潛入，稱之為進一步的下游市場，如果不是微觀市場的話。因此，對於所有這些州，其中許多都在西海岸，如果您正在尋找頭條新聞，跟踪像加利福尼亞州這樣的空間，因為它們繼續下降到什麼水平，您需要遵守州的規定和/或《安全法案》，我們有更多機會確保我們幫助客戶解決這個問題，並讓他們保持合規。但同樣，回到為世界做好事的話題上來，這也為與這些客戶打交道的每一位員工帶來了價值。所以...

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布萊恩·基恩。

Just want to ask about the decline in PEO. Looking at the employee base of PEO declining versus not necessarily the case, it looks like almost the opposite in the Employer Services. So just trying to think about the trends. And does typically the trend you see in PEO bleed into Employer Services and why maybe it's been a little bit weaker for pays per control there in PEO versus Employer?

只是想問PEO下降的情況。從 PEO 的員工數量下降與不一定的情況來看，雇主服務部門的情況似乎幾乎相反。所以只是想思考趨勢。通常情況下，您在 PEO 中看到的趨勢是否會滲透到雇主服務中？為什麼 PEO 中的每項控制費用與雇主服務相比可能稍弱一些？

Yes. So just to clarify, pays per control in PEO is actually higher. We don't give that number, but it's actually higher than Employer Services. So I think the first piece to suggest is that the bases are actually just different, right? So if you look at the pays per control across the broader ADP, it's really a reflection of a mix of industries. As I mentioned earlier, the PEO tends to skew by design, by the way, for the offering. It's really the offering is the most valuable, if you will, to the cohorts that we offer to, which tends to be more professional services, tech-oriented companies that want to offer employers or their employees benefits of choice, if you will, to the employers of choice.

是的。需要澄清的是，PEO 中每個控制項的報酬實際上更高。我們沒有給出這個數字，但它實際上高於雇主服務部。所以我認為首先要建議的是，基礎實際上只是不同，對吧？因此，如果您查看更廣泛的 ADP 中每個控制項的薪酬，您會發現它確實反映了多種行業的情況。正如我之前提到的，順便說一句，PEO 往往會在產品設計上出現偏差。如果您願意的話，對於我們提供的群體來說，這確實是最有價值的，這些群體往往是更專業的服務，以技術為導向的公司，希望為雇主或其僱員提供選擇的福利，如果您願意的話，選擇的雇主。

And so that skews that base slightly differently than the overall. And what we're seeing within the PEO base is a delineation between those cohorts and the rest of the base, if you will. So we cited it in the prepared remarks, but the deceleration that is happening at the PEO is still a by-product within that base, having professional services and tech decelerating at a faster clip than the rest of the base.

因此，此基礎的傾斜與整體略有不同。如果你願意的話，我們在 PEO 基地中看到的是這些群體與基地其他成員之間的界線。因此，我們在準備好的發言中引用了這一點，但 PEO 發生的減速仍然是該基地內的副產品，專業服務和技術的減速速度比基地的其他地方更快。

So to answer your question, does it bleed across? I think we're already hearing these headlines in the market in terms of -- and we see it within our own ADP Research Institute data with respect to professional services and tech hiring being in a different position than the rest of the market. So I think I would suggest it's already been bleeding across, if you look at the last couple of quarters of that. By the way, that also tracks the BLS data, shows the same thing. You see it in wages.

那麼回答你的問題，它會流血嗎？我認為我們已經在市場上聽到了這些頭條新聞，而且我們在我們自己的 ADP 研究所數據中看到，在專業服務和技術招聘方面，我們的地位與市場其他部分不同。因此，如果你看看過去幾個季度的情況，我認為它已經在流血了。順便說一下，這也追蹤了 BLS 數據，顯示了相同的情況。你可以從工資中看到這一點。

And so all of that to suggest, I would say, the trend we're seeing in the PEO is already in the macro, but the bases are slightly different, which is why you would feel the impact of it perhaps more significantly in the PEO PPC than you would in the broader PPC. That was a mouthful, by the way.

因此，我想說，所有這些都表明，我們在 PEO 中看到的趨勢已經存在於宏觀中，但基礎略有不同，這就是為什麼您會在 PEO 中感受到它的影響可能更顯著PPC 比您在更廣泛的PPC 中的PPC 更廣泛。順便說一句，那是一口。

No, that was helpful though. And then the other question I just had is the strength you saw in the ES new bookings, especially in September and the way the pipeline looks, but you're not changing the total outlook of 4% to 7%. Just trying to figure out, do you feel like you guys are maybe trending if things hold, trending above the guidance range for bookings given the strength you saw in September in the pipeline and for SMB strength in the quarter?

不，但這很有幫助。我剛才遇到的另一個問題是，您在 ES 新預訂中看到的實力，尤其是在 9 月份，以及管道的外觀，但您並沒有改變 4% 至 7% 的整體前景。只是想弄清楚，如果情況持續下去，你們是否覺得你們的趨勢可能會高於預訂指導範圍，因為你們在 9 月份看到了管道中的力量以及本季度中小型企業的力量？

Yes. What I would offer is that I'm incredibly pleased with the results in the first quarter, especially on the heels of what was an incredible finish last year. And so the pattern that we saw in the first quarter and the strength in September is not atypical of the pattern we see in the first quarter on the heels of an incredibly strong fourth quarter.

是的。我想說的是，我對第一季的結果非常滿意，尤其是在去年令人難以置信的成績之後。因此，我們在第一季看到的模式和 9 月的強勁表現與我們在第四季度強勁強勁之後在第一季看到的模式並不罕見。

And so I am excited about the first quarter results. I am excited about the strength in September. But the excitement is actually less about, call it, the finish in September and more about what we see on the year-on-year demand environment, what we see in activity, what we see stepping into this next quarter. And that does give us confidence into our full year guide at that 4% to 7%.

因此，我對第一季的業績感到興奮。我對九月的力量感到興奮。但令人興奮的實際上並不是九月的結束，而是我們在同比需求環境中看到的情況、我們在活動中看到的情況以及我們看到下一季的情況。這確實讓我們對 4% 至 7% 的全年指導充滿信心。

What I would also offer, though, is it's a long year. And when you think about where the skewing, if you will, or the contribution of new business bookings happens for us on a full year basis, it is in that third and fourth quarter are much, call it, larger than the first and second quarter. And so we believe it's prudent given the line of sight that we have today just at quarter end. But we feel confident in the guide. We're excited about performance. We're excited about how we're stepping into the quarter, the second quarter that is, but we also still have an entire year ahead of us.

不過，我還想說的是，這是漫長的一年。當你考慮到全年的偏差（如果你願意的話）或新業務預訂對我們的貢獻時，你會發現第三和第四季比第一季和第二季大得多。因此，考慮到今天季度末的情況，我們認為這是謹慎的做法。但我們對指南充滿信心。我們對性能感到興奮。我們對進入本季（即第二季）感到興奮，但我們還有一整年的時間。

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拉姆齊·阿薩爾。

Could you give us your latest thoughts on the competitive environment in PEO and how that's sort of evolving over time? I think there is somewhat slower-than-historical growth across the industry. Are there any signs that the market is saturated with providers? Or is there any competitive overlay to PEO performance?

您能否向我們介紹一下您對 PEO 競爭環境的最新想法以及這種環境如何隨著時間的推移而演變？我認為整個產業的成長速度比歷史水準要慢一些。是否有任何跡象顯示市場供應商已飽和？或者 PEO 績效是否有任何競爭性疊加？

I would suggest that the PEO/ASO conversation, if you will, or PEO/HR outsourcing offerings kind of continues. I don't know that there's anything new to report, Ramsey. I think from my vantage point, it's always been a very competitive environment. We all have slightly different PEOs from one another. I think we talked a lot about ours today and the way that it skews to professional services and tech. I think you have others that's skewed to different types of industries. You also have other PEOs that perhaps are a bit more down market. We tend to skew a little bit more up market than some.

我建議 PEO/ASO 對話（如果您願意的話）或 PEO/HR 外包服務繼續進行。我不知道有什麼新消息要報告，拉姆齊。我認為從我的角度來看，這一直是一個競爭非常激烈的環境。我們每個人的 PEO 都略有不同。我想我們今天談論了很多我們的內容以及它偏向專業服務和技術的方式。我認為還有其他一些偏向不同類型的行業。你們還有其他的 PEO，它們的市場可能會比較低一些。我們傾向於比某些人更偏向高端市場。

And so I think all the PEOs look slightly different. I think we all know our models are also not identical in terms of how we actually go to market, whether it's through the strength that we have and the competitive advantage of being able to have ADP's client base contribute about 50% of those upgrades. So I think how we go to market, our models, never mind the models of fully insured to self-insured, et cetera, I think similar trends are within the ASO offerings or some refer to them as HRO offerings.

因此，我認為所有 PEO 看起來都略有不同。我想我們都知道，我們的模式在實際進入市場的方式方面也不盡相同，無論是透過我們擁有的實力還是能夠讓 ADP 的客戶群貢獻大約 50% 的升級的競爭優勢。因此，我認為我們如何進入市場，我們的模型，更不用說完全保險到自我保險的模型等等，我認為類似的趨勢也存在於 ASO 產品中，或者有些人將它們稱為 HRO 產品中。

And so I think within there, you also have various models and various go-to-markets in terms of the -- some competitors perhaps have some flexibility or more movements between ASO and PEO than I think we've cited in the past. And so I think all that to suggest, I think the competitive environment is about the same and remains. I think I am optimistic and expect growth in both our PEO bookings as well as our HRO and ASO offerings throughout the balance of this year. And so I think we remain very, very excited and optimistic about the growth of those, all of our HR outsourcing offerings, both in this year as well as the long term.

因此，我認為，在這方面，您也有各種模式和各種進入市場的方式，一些競爭對手可能在 ASO 和 PEO 之間有一定的靈活性或比我們過去引用的更多的移動。因此，我認為所有這些都表明，我認為競爭環境大致相同並且仍然存在。我認為我很樂觀，預計今年餘下時間我們的 PEO 預訂以及 HRO 和 ASO 產品都會成長。因此，我認為，無論是今年還是長期，我們對所有人力資源外包產品的成長仍然非常非常興奮和樂觀。

Got it. Okay. And a follow-up for me. Could I ask you to revisit those comments that you made about higher selling expenses in PEO? What does that mean exactly? And also just I wanted to make sure I understood, Don mentioned that there's some expectations those may continue, but there's still, in essence, sort of a nonrecurring step-up in expenses. It's not a permanent step-up in expenses in the segment.

知道了。好的。以及我的後續行動。我可否請您重溫您對 PEO 銷售費用增加的評論？這到底是什麼意思？而且我只是想確保我理解，唐提到，有些預期可能會繼續下去，但本質上仍然存在某種非經常性的支出增加。這並不是該領域支出的永久性增加。

Yes, we saw higher selling expenses in Q1 for the PEO, and we expect to see higher selling expenses year-over-year in the first half, but we do think that that's going to settle down into the second half. So we're not looking at the kind of growth that we saw last year. I think we commented quite extensively on the many, many salespeople we've added into the business last year and had great success and allowed us to finish the year the way we did.

是的，我們看到第一季 PEO 的銷售費用較高，我們預計上半年的銷售費用將比去年同期增加，但我們確實認為這種情況將在下半年穩定下來。因此，我們不會看到去年看到的那種成長。我認為我們對去年添加到業務中的許多銷售人員進行了相當廣泛的評論，並取得了巨大的成功，使我們能夠以我們的方式結束這一年。

So those folks are in place. So we are continuing to add some sellers. We will add, though, most of those sellers in the first half. And it's important just also, I think, call out here that what we are seeing with our sellers is that we are getting much better retention within the seller community. So we are hoping and expecting to benefit from the improved tenure that we should see from the selling organization as we go through the balance of this year.

所以那些人就位了。所以我們正在繼續添加一些賣家。不過，我們將在上半年新增大部分賣家。我認為，同樣重要的是，我們在賣家身上看到的是，我們在賣家社群中的保留率得到了提高。因此，我們希望並期待從銷售組織的任期改善中受益，在今年剩餘的時間裡，我們應該看到這一點。

I got it. So it's headcount-related primarily. That makes a lot of sense.

我得到了它。所以這主要與人數有關。這很有意義。

Yes, I think it's a timing thing. I think that's the...

是的，我認為這是一個時機問題。我認為這就是...

Got it.

知道了。

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。

Just staying on PEO for a second and maybe if we can just refresh a little bit here. I'm just thinking back to the Analyst Day 2 years ago, we thought it was a medium-term 10% to 12% grower. Now it's 2% to 3% at the moment. There was definitely some post-COVID normalization. But maybe just, Maria, if you want to take us back through the dynamics in terms of just how the business has evolved from your perspective. And is there a potential path back to double-digit growth for this business if the macro is a little bit more cooperative?

在 PEO 上停留一秒鐘，也許我們可以在這裡回顧一下。我回想起兩年前的分析師日，我們認為這是 10% 到 12% 的中期增長。現在是2%到3%。新冠疫情後肯定出現了某種程度的正常化。但也許只是，瑪麗亞，如果你想讓我們回顧一下從你的角度來看業務是如何發展的動態。如果宏觀政策更合作的話，這項業務是否有可能恢復兩位數成長？

Yes. So I'll let Don kind of speak to the medium-term targets and kind of the path back. But I think from my vantage point, and I said it earlier today, that step 1 is the continued reacceleration of bookings. And so this is the third quarter that we're pleased, and we did have a solid contribution of PEO bookings to the overall bookings picture in this quarter. That was the case last quarter, it was the case the quarter before.

是的。所以我會讓唐談談中期目標和回歸之路。但我認為，從我的角度來看，我今天早些時候說過，第一步是繼續加速預訂。因此，這是我們感到高興的第三季度，PEO 預訂確實為本季的整體預訂情況做出了堅實的貢獻。上個季度是這樣，上個季度也是這樣。

And I think the reason that I go to that is not just because it's the piece that will accelerate the growth and pass us back to what our long-term goals and medium-term targets are with -- for that business, I think it's also because it speaks to the demand environment. It speaks to the value proposition and the strength of that offering that still exists in the market. And so I think that's a big piece of it.

我認為我這樣做的原因不僅僅是因為它會加速成長並使我們回到我們的長期目標和中期目標 - 對於該業務，我認為它也因為它涉及需求環境。它說明了市場上仍然存在的價值主張和該產品的優勢。所以我認為這是其中一個重要的部分。

I think step 2 is the continued acceleration, reacceleration of retention. So I mentioned that retention has been stable. And as we reaccelerate retention back into that growth, that also will contribute to, obviously, the revenue. And then last but not least, Jason, you mentioned it, the macro headwinds. And I think I talked about the last couple of quarters, how that's been the post-pandemic, call it, nuances that impacted that business. I think we talked a lot about the renewal over the last couple of quarters. Now we're seeing these trends in PPC.

我認為第二步是持續加速、重新加速保留。所以我提到保留率一直很穩定。當我們重新加速留存率恢復成長時，這顯然也將有助於收入。最後但並非最不重要的一點是，傑森，你提到了宏觀逆風。我想我談到了過去幾個季度，疫情後的情況如何影響該業務的細微差別。我想我們在過去幾季就續約問題討論了很多。現在我們在 PPC 中看到了這些趨勢。

My view would be that all of the post-pandemic wave that have been, call it, flowing through the PEO and all the variables that make up that model, we're still seeing some of those, case in point being really, call it, the reversion of what we saw several quarters ago, which was when professional services and tech was in a massive hiring boom. Now we're seeing the opposite of that, right? So I think we still have some of these waves kind of shuffling through or whether -- or going through -- flowing through the PEO. And if and when the macro changes with respect to that, that certainly will help reaccelerate that business as well.

我的觀點是，所有的大流行後浪潮，稱之為，流經 PEO 和構成該模型的所有變量，我們仍然看到其中的一些，例如，真正的例子，稱之為，這是我們幾個季度前看到的情況的逆轉，當時專業服務和技術正處於大規模的招聘熱潮中。現在我們看到了相反的情況，對嗎？因此，我認為我們仍然有一些浪潮正在醞釀中，或者是否——或正在經歷——流經 PEO。如果宏觀經濟發生變化，這肯定也將有助於重新加速該業務。

So in terms of the path back, I'll let Don kind of speak to the medium-term targets.

因此，就回歸之路而言，我會讓唐談談中期目標。

Yes. I think Maria covered it very comprehensively there. I would say that when we established the midterm targets, I think a lot of things have changed since then, certainly the inflation environment that we've seen in particular. And Maria just mentioned professional services and technology, we saw incredible growth in those segments and growth beyond what we thought we -- or what we had predicted in the midterm targets or spoken to.

是的。我認為瑪麗亞在那裡涵蓋得非常全面。我想說，當我們制定中期目標時，我認為自那時以來很多事情都發生了變化，尤其是我們所看到的通膨環境。瑪麗亞剛剛提到了專業服務和技術，我們看到這些細分市場令人難以置信的成長，並且成長超出了我們的想像——或者我們在中期目標中預測的或談論的。

I think now we're seeing some reversion. We do, though, continue to be incredibly positive about that business. We think it definitely has a place, and we think that we will make our way back. But as Maria also said, it's a little bit early to forecast when we think we're going to get back to some of those midterm target growth areas that we had discussed.

我認為現在我們看到了一些回歸。不過，我們仍然對該業務抱持極為正面的態度。我們認為它肯定有一席之地，我們認為我們會回來的。但正如瑪麗亞也所說，現在預測我們將回到我們討論過的一些中期目標成長領域還為時過早。

Understood. No, that's good color. Just a follow-up on float yield. It looks like it was actually a tick down slightly quarter-over-quarter here in Q1 amid a higher rate environment. But just curious what the call-outs might be there.

明白了。不，這個顏色很好。只是浮動收益率的後續行動。在利率上升的環境下，第一季的利率實際上比上一季略有下降。但只是好奇那裡可能有什麼呼喚。

Jason, that just relates to the mix between short term and extended and long. So in Q4, we were a little more levered to overnight partly because of this debt ceiling issue. We had to be deliberately skewed shorter duration. But in a typical Q1, we would generally have a lower short portfolio. And so there is seasonality in the average balance, wouldn't read much into it. The year-over-year number is a much more relevant metric.

傑森，這只是與短期、長期和長期之間的混合有關。因此，在第四季度，我們的隔夜槓桿增加，部分原因是債務上限問題。我們不得不故意縮短持續時間。但在典型的第一季度，我們的空頭投資組合通常會較低。因此，平均餘額存在季節性，不會對其進行太多解讀。同比數字是一個更相關的指標。

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黃天欽。

Forgive me if I'm asking another clarification on the PEO side. Just the slight -- was the slight softness in the bookings also related to the PS and tech sectors? And also with the pays per control within PEO, is that more of a health care participation issue or just labor weakness in those sectors?

如果我要求 PEO 方面作出進一步澄清，請原諒我。只是一點點——預訂量的輕微疲軟是否也與 PS 和科技業有關？另外，考慮到 PEO 內部每個控制人員的薪酬，這更多的是醫療保健參與問題還是只是這些部門的勞動力弱點？

I really apologize, you actually bleeped out during the first part of your question. Would you mind just repeating -- yes, there was a word missing. So...

我真的很抱歉，你在問題的第一部分實際上已經發出了嗶嗶聲。你介意重複一下嗎——是的，少了一個字。所以...

No, no, I probably didn't ask it very well. Just wanted to make sure the bookings softness on the PEO side, was that also in the professional services and tech sectors? And then also just on the pays per control, was it labor weakness or health care participation?

不不不，我可能沒問好。只是想確保 PEO 方面的預訂疲軟，專業服務和技術領域也是如此嗎？然後，就每次控制的薪酬而言，是勞動力不足還是醫療保健參與？

Yes. Listen, so I'm glad you're asking this question actually because I just want to reiterate, we were very pleased with our PEO bookings. And so there wasn't softness. There was strength and growth in the PEO quarter bookings.

是的。聽著，我很高興您實際上問這個問題，因為我只想重申，我們對 PEO 預訂感到非常滿意。所以沒有柔軟。 PEO 季度預訂量強勁且成長。

In terms of how we skewed the year, it was slightly lighter than we had positioned our planning, which is why it contributes the way that it does to the overall worksite employee growth. But again, the worksite employee deceleration is really about the PPC story. And so I just want to reiterate, we were actually very pleased with the quarter from a PEO bookings perspective.

就我們如何調整這一年而言，它比我們定位的計劃略輕，這就是為什麼它對整個工作場所員工成長的貢獻方式。但同樣，工作場所員工減速實際上與 PPC 故事有關。所以我想重申一下，從 PEO 預訂的角度來看，我們實際上對本季感到非常滿意。

In terms of the industries, I think it's a mix. I think we continue to see the PEO execute with respect to the industries that we target, which tend to be into those categories. As it relates to this comment around kind of within the PEO, the deceleration that is happening faster in professional services and technology versus the broader base of the PEO, again, I don't want to give kind of the numbers of what that is, but it isn't like the entire base is sitting in professional services. It's just that subset, if you will, of the base.

就行業而言，我認為這是一個混合體。我認為我們將繼續看到 PEO 在我們的目標行業中執行，這些行業往往屬於這些類別。由於它與 PEO 內部的評論有關，與 PEO 更廣泛的基礎相比，專業服務和技術領域的減速速度更快，因此，我不想再透露具體的數字，但並不是整個基地都有專業服務。如果你願意的話，它只是基礎的子集。

And it is really -- again, kind of triangulates to the macro that we're seeing and the same type of data coming out of ADP Research Institute, out of the BLS, and it's really about hiring. So it's less about, call it, layoffs. And it's really where the professional services and tech industries were doing massive hiring, call it, a year ago, 6 quarters ago. It's really a lack of hiring that's happening in those businesses. Did I answer that question?

這確實是——再次，我們看到的宏觀三角測量，以及來自 ADP 研究所和美國勞工統計局的相同類型的數據，這實際上與招聘有關。所以這與所謂的裁員無關。這確實是專業服務和科技業進行大規模招聘的地方，稱之為一年前，六個季度前。這些企業確實缺乏招募。我回答了這個問題嗎？

Yes, I think so. I think the...

是的，我想是這樣。我覺得...

Tien-Tsin, just on the participation piece of it, the pays per control wouldn't be impacted by participation rate, but the reported revenue would be. So to the extent workers are taking plans, cheaper plans or fewer plans, there's a little bit of that. You do see it in the revenue per WSE, but the WSEs themselves wouldn't be impacted.

天進，僅就參與部分而言，每個控制項的付費不會受到參與率的影響，但報告的收入會受到影響。因此，就員工正在採取的計劃、更便宜的計劃或更少的計劃而言，有一點這樣的情況。您確實可以在每個 WSE 的收入中看到它，但 WSE 本身不會受到影響。

Got it. Danny, I didn't ask you. Well, that's perfect. That's what I was looking for. On the -- we get questions around pricing as well. That's why I was asking about the participation side of things and if there's a difference there. It sounds like it isn't.

知道了。丹尼，我沒有問你。嗯，那就完美了。這就是我一直在尋找的。關於——我們也收到了有關定價的問題。這就是為什麼我要問事情的參與面以及是否有差異。聽起來好像不是。

On the international front, just my quick follow-up. Just I think Sweden was the call-out in terms of acquisition. Why is Sweden important to own? Just I'm not as familiar with some of the specific countries that you're targeting. And I'm curious if this is just part of a -- maybe a broader plan to aggregate international payroll.

在國際方面，這只是我的快速跟進。只是我認為瑞典是收購方面的重點。為什麼擁有瑞典很重要？只是我不太熟悉您所針對的某些特定國家。我很好奇這是否只是一個更廣泛的聚合國際工資計劃的一部分。

Absolutely. So listen, I have to take this question because I think you may know that I'm actually -- I was born and partially raised in Sweden. So I thought it was prudent to make it the very first country that I announce. I'm actually completely kidding. This was obviously well in motion before my time. But it sounds like I might be closer to Sweden than you are. And for us, it is an exciting time for us. We have had this partnership with BTR for quite some time.

絕對地。所以聽著，我必須回答這個問題，因為我想你可能知道我實際上是——我在瑞典出生並部分長大。因此，我認為將其作為我宣布的第一個國家是謹慎的做法。我其實完全是在開玩笑。顯然，這在我之前就已經開始了。但聽起來我可能比你更接近瑞典。對我們來說，這是一個令人興奮的時刻。我們與 BTR 的合作已經有一段時間了。

For us to be able to acquire the payroll business of BTR is exciting because the Nordics are growing, and this does give us a physical footprint into Sweden, which allows us to expand further into the Nordics and really take advantage of the growth trajectory of those economies. So this is obviously payroll, but also in the beyond-payroll opportunities that we will have in years to come. So really excited about the acquisition, not just because it's near and dear to my heart, but moreover because the Nordics represent growth, and it's exciting to think about us having a physical presence there.

對我們來說，能夠收購 BTR 的薪資業務是令人興奮的，因為北歐正在成長，這確實讓我們在瑞典有了實際足跡，這使我們能夠進一步擴展到北歐，並真正利用這些國家的成長軌跡經濟體。因此，這顯然是薪資單，但也是我們在未來幾年將擁有的超出薪資的機會。對於這次收購我感到非常興奮，不僅因為它對我來說很重要，而且因為北歐代表著成長，想到我們在那裡有實體存在就令人興奮。

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。

You called out strength in ES bookings, particularly in the small business market with RUN. Could you provide some texture into the bookings trends you saw in mid-market with Workforce Now and then up market with enterprise? And any insights you have into international bookings in the quarter would also be appreciated.

您讚揚了 ES 預訂的優勢，尤其是 RUN 的小型企業市場。您能否提供一些您在中階市場中看到的 Workforce Now 以及高階市場中的企業預訂趨勢的具體情況？如果您對本季國際預訂有任何見解，我們也將不勝感激。

Absolutely. So yes, we did have great strength in the down markets, kind of moving on up in the mid-market. Certainly, we have continued solid demand in the mid-market. That's inclusive of our Workforce Now platform. It's also inclusive of our HR outsourcing offering. So I spoke a bit about the ASO models, the HRO models earlier in that mid-market, also it's supported by the PEO. So we do see continued demand from the mid-market. I think the way I always think about it, it's not getting any easier for companies in that mid-market to navigate being an employer today. And so we expect continued strong mid-market growth.

絕對地。所以，是的，我們在低迷市場確實擁有強大的實力，在中端市場也有一定的優勢。當然，我們在中階市場的需求持續強勁。這包括我們的 Workforce Now 平台。它也包括我們的人力資源外包服務。所以我談了一些關於中端市場早期的 ASO 模型和 HRO 模型，它也得到了 PEO 的支持。因此，我們確實看到了中端市場的持續需求。我認為，按照我一直思考的方式，對於中階市場的公司來說，如今成為雇主並沒有變得更容易。因此，我們預期中端市場將持續強勁成長。

I think in the up market, since you asked about the enterprise space, one of the call-outs we made last quarter was about the strength that we saw in our Next Generation HCM offering, and we did see that strength continue into this quarter, which we think is fantastic. We also see strength in the pipeline in that space year-on-year. So excited about what we're hearing from our clients, the sentiments around the offerings that we have in the enterprise space.

我認為在高端市場，既然您詢問了企業領域，我們上個季度的重點之一就是我們在下一代 HCM 產品中看到的實力，我們確實看到這種實力持續到本季度，我們認為這太棒了。我們也看到該領域的管道逐年成長。我們對客戶的回饋以及我們在企業領域提供的產品的看法感到非常興奮。

And then I think I touched a little bit on international earlier, but our international business did grow nicely in the first quarter. Again, it was the benefit of a little bit of an easier compare year-on-year. But we also had, as I mentioned, a really strong finish and a strong fiscal '23 in our international business. Again, what I measure is partly the results. But as I think about the look forward, it's really about pipelines. And what I would say, our international pipelines year-on-year have a fair amount higher than they did a year ago, which gives us the strength to really feel good about our international bookings to remain healthy through fiscal '24.

然後我想我早些時候接觸了一些國際業務，但我們的國際業務在第一季確實成長良好。同樣，這也是年比比較容易一點的好處。但正如我所提到的，我們的國際業務也取得了非常強勁的業績和強勁的 23 財年業績。再說一遍，我衡量的部分是結果。但當我思考未來時，這實際上與管道有關。我想說的是，我們的國際管道比一年前比一年前高出很多，這使我們有能力對我們的國際預訂感到滿意，從而在 24 財年保持健康。

Just as a quick follow-up. Don, you called out part of the 90 basis point margin decline in PEO being traced to a difficult comparison on workers' compensation reserve adjustments a year ago. Can you quantify for us how large those were as we think through the margin comparisons for Q2, Q3 and Q4 of FY '24 in PEO?

就像快速跟進。唐，您指出 PEO 利潤率下降 90 個基點的部分原因是一年前工人賠償準備金調整的艱難比較。您能否為我們量化一下我們透過 PEO 24 財年第二季、第三季和第四季的利潤率比較得出的結果有多大？

Yes. So as you know, we've had very favorable reserve releases over the last number of years and certainly called out last year in the K. You would have seen the favorability there. So just to be clear, we are still seeing favorable reserve releases, but we are not seeing -- we didn't see the reserve release to the extent that we did Q1 to Q1 of the prior year.

是的。如您所知，我們在過去幾年中發布了非常有利的儲備版本，並且去年在 K 中確實得到了認可。您會在那裡看到這種好感。因此，需要明確的是，我們仍然看到有利的準備金釋放，但我們沒有看到 - 我們沒有看到準備金釋放達到去年第一季至第一季度的程度。

So the numbers will be in the Q, but it's about $6.2 million less than it was in the prior year. So that's the quantification of it. And if you kind of translate that into the margin, it's about 60 to 90 bps -- 60 bps of the 90 bps decline comes from the lower reserve release.

因此，這些數字將出現在 Q 中，但比前一年減少了約 620 萬美元。這就是它的量化。如果你將其轉化為利潤率，則約為 60 至 90 個基點——90 個基點下降中的 60 個基點來自較低的準備金釋放。

Now once again, we think that we're going to continue to see reserve releases. They were favorable as the actuaries get back to us and let us know what's happening, but we're not seeing any underlying changes or large changes that would lead us to be any less optimistic about seeing continued releases in the reserve.

現在，我們再次認為我們將繼續看到儲備釋放。當精算師回到我們身邊並讓我們知道發生了什麼時，他們是有利的，但我們沒有看到任何潛在的變化或重大變化，這會導致我們對看到儲備金的持續釋放不那麼樂觀。

And David, sorry, just to clarify, it was a $6 million benefit in Q1, which is about $8 million less than the prior year.

David，抱歉，我想澄清一下，第一季的收益為 600 萬美元，比前一年減少了約 800 萬美元。

Our next question comes from Mark Marcon with Baird.

我們的下一個問題來自貝爾德的馬克馬爾孔。

At HR tech, you got to see a lot of your new solutions, particularly focused on the AI-assisted solutions. Maria, I'm wondering if you can talk a little bit about your philosophy with regards to which solutions you would charge additional for. How are you thinking about monetization? And then I've got a follow-up in terms of process improvement.

在人力資源科技，你會看到很多新的解決方案，特別是人工智慧輔助的解決方案。瑪麗亞，我想知道您是否可以談談您關於哪些解決方案需要額外收費的理念。您如何考慮貨幣化？然後我在流程改善方面進行了跟進。

Sure. Mark, I'm pretty excited about all of our new solutions that you would have seen at HR tech. So I think I'll take a minute to kind of think -- or talk through how I'm thinking about Gen AI in general, and then I'll tell you how I'm thinking about monetization because I think it'll make more sense on the other side. But when I think about Gen AI, I think it will impact everything. So the answer is it's going to be everywhere impacting everything that we do across the entire client life cycle.

當然。馬克，我對您在人力資源技術部門看到的所有新解決方案感到非常興奮。所以我想我會花一點時間思考一下，或者談談我對 Gen AI 的整體看法，然後我會告訴你我對貨幣化的看法，因為我認為這會讓另一邊更有意義。但當我想到人工智慧時代時，我認為它將影響一切。所以答案是，它將無所不在，影響我們在整個客戶生命週期中所做的一切。

So it's about how we develop products. That's everything from developer copilot types of tools that everyone is talking about. It's about how Gen AI will be embedded into our product. It's about how we go to market and modern seller stuff that I've spoken about for years and how we actually have the ability now leveraging Gen AI to actually acquire clients. And then the most obvious being how we serve them, how we implement them, how we become more productive and make our clients more productive as we serve our clients.

所以這是關於我們如何開發產品的問題。這就是每個人都在談論的開發人員副駕駛類型工具的一切。這是關於如何將人工智慧嵌入到我們的產品中。這是關於我們如何進入市場和現代賣家的東西，我多年來一直在談論，以及​​我們現在如何真正有能力利用 Gen AI 來實際獲取客戶。最明顯的是我們如何為他們服務，我們如何實施它們，我們如何提高生產力，並在我們為客戶服務的同時使我們的客戶更有生產力。

And so when I think about Gen AI, and I think most -- everyone has probably likened us to things like whether it's software or the Internet, I think my answer to you is it will be in everything that we do and in the fabric of who we become. And so in terms of the monetization side, I think it's less about charging a [PEPM] on a per feature.

因此，當我想到Gen AI 時，我認為大多數人可能都將我們比作軟體或互聯網之類的東西，我想我對你的回答是它將存在於我們所做的一切以及我們所做的一切中。我們成為誰。因此，就貨幣化方面而言，我認為對每個功能收取 [PEPM] 的費用較少。

So let's say, some of the things I talked about today, which probably doesn't sound that exciting, like report writing or if you look at the earnings release document, you'll see in there a job description that's pulled in the screenshot showing roles. So these things probably don't sound that exciting, but they're pretty exciting because they are the seeds of innovation, as I used earlier, to really show what -- how Gen AI will interact with in everything that we do kind of in the fabric.

這麼說吧，我今天談到的一些事情可能聽起來不那麼令人興奮，比如報告撰寫，或者如果你查看收益發布文件，你會在屏幕截圖中看到一個職位描述，顯示角色。因此，這些事情聽起來可能不那麼令人興奮，但它們非常令人興奮，因為它們是創新的種子，正如我之前所說的那樣，真正展示了人工智慧將如何與我們所做的一切互動。面料。

So said differently, Mark, like I don't think we're going to be charging separately to get Gen AI job description written or Gen AI report written. I think it's really about continuing our innovation journey to do all the things we've always done, which is really about becoming more productive. It's about solving things for our clients and making them more productive. And I think that, to me, the fruits of that labor really end up in new business bookings and they end up in retention.

所以換句話說，馬克，我認為我們不會單獨收費來撰寫 Gen AI 職位描述或 Gen AI 報告。我認為這實際上是為了繼續我們的創新之旅，做我們一直在做的所有事情，這實際上是為了提高生產力。這是為我們的客戶解決問題並提高他們的生產力。我認為，對我來說，這種勞動的成果實際上最終會帶來新的業務預訂，最終會保留下來。

And so that's not to suggest that there may not be things. But I don't think it's really to me about [$0.50 PEPM] here and there. To me, it's really about the innovation journey we've been on. This just allows us to do it at a faster clip. And I'm really optimistic and excited about the things that we're seeing.

所以這並不意味著可能不存在任何事情。但我認為這裡那裡的 [$0.50 PEPM] 對我來說並不真正重要。對我來說，這其實與我們一直以來的創新之旅有關。這只是讓我們能夠以更快的速度完成任務。我對我們所看到的事情感到非常樂觀和興奮。

In terms of other things that we're measuring, we actually have the entire organization rallied to engage in these tools. We actually have some goals that we put out there in terms of, by the end of the year, how many of our associates that sit across sales and implementation and service and technology that are engaging with these tools. Right now, they're sitting at already above 10% of our base of associates that have the ability to touch these tools or already playing with them. I would tell you, our entire sales organization are chomping up a bit because the digital sales or inside sales where we've deployed a lot of these modern tools over years have an ability to become that much more productive, engaging our new prospects and new sales.

就我們正在衡量的其他事情而言，我們實際上讓整個組織團結起來使用這些工具。實際上，我們制定了一些目標，即到今年年底，有多少銷售、實施、服務和技術部門的員工正在使用這些工具。目前，我們有能力接觸這些工具或已經在使用這些工具的員工群體中，他們的比例已經超過 10%。我想告訴你，我們的整個銷售組織都在加緊努力，因為多年來我們部署了大量現代工具的數位銷售或內部銷售有能力變得更加高效，吸引我們的新潛在客戶和新客戶。銷售量。

So as you can probably tell, like I literally could go on and on and on, but I think my answer to you is it will be everywhere across the entire client life cycle that we have. And I'm very optimistic about the long-term implications of this on all the major metrics that make up this great business model.

正如您可能會說的那樣，就像我真的可以一直說下去一樣，但我想我對您的回答是，它將在我們的整個客戶生命週期中無處不在。我對這對構成這個偉大商業模式的所有主要指標的長期影響非常樂觀。

That's terrific. And then with regards to just the productivity enhancement, I mean, particularly when we think about service and implementation, from a longer-term perspective, can you describe how much more efficient you think your service personnel could become? And how much efficiency you could end up gaining there and the implications from continuous margin improvement as you continue to go along that journey? I know it's early days, but just how are you thinking about that?

真了不起。然後，關於生產力的提高，我的意思是，特別是當我們考慮服務和實施時，從長遠的角度來看，您能否描述一下您認為您的服務人員的效率可以提高多少？當您繼續走下去時，您最終可以獲得多少效率以及持續利潤改善的影響？我知道現在還為時過早，但你對此有何看法？

Yes. Listen, Mark, it is early days, right? And that's not for a lack of scoping it, right? So we have had because it's not as though we haven't had all of these business cases over many years on how to become more productive, and we've had machine learning and regular AI in our house for a long time. And this does give us a step change to that innovation. But it's still too early, I think, to sit on an earnings call and commit numbers. But that's not for a lack of internally having scoping and line of sight to what we believe are pretty exciting goals for us to go chase.

是的。聽著，馬克，現在還為時過早，對吧？這並不是因為缺乏範圍界定，對嗎？所以我們已經這樣做了，因為多年來我們並不是沒有擁有所有這些關於如何提高生產力的商業案例，而且我們家裡已經有機器學習和常規人工智慧很長時間了。這確實讓我們在創新方面發生了一步改變。但我認為，現在參加財報電話會議並承諾數字還為時過早。但這並不是因為我們內部缺乏範圍界定和視線，無法實現我們認為值得我們追求的非常令人興奮的目標。

And again, some of those goals have existed for a long time, but now we have technology that I'm hopeful that we can actually finally crack the code on some of these really big enhancements that we see. But certainly, productivity is a big piece of it. I know I talked today about Agent Assist and this idea of call summarization. Again, it probably doesn't sound that exciting. But for someone who used to sit on the other side of that, you see whether it's a prospect call or a client call gets summarized and recapped into a very quick format that's usable.

再說一次，其中一些目標已經存在很長時間了，但現在我們擁有了技術，我希望我們最終能夠破解我們所看到的一些真正重大增強功能的程式碼。但毫無疑問，生產力是其中的重要組成部分。我知道我今天談到了座席協助和呼叫摘要的想法。再說一次，這聽起來可能不那麼令人興奮。但對於曾經坐在另一邊的人來說，您會看到無論是潛在客戶電話還是客戶電話都會被匯總並重述為可用的非常快速的格式。

These are hours and minutes of time. Even on the seller side, we actually are launching something called rapid pre-call planning. And I think about the hours I used to spend 27 years ago, researching a company to get myself ready to go in and have a conversation with a prospect that brings value, enabling our sellers to have all of that productivity.

這些是幾小時和幾分鐘的時間。即使在賣方方面，我們實際上也在推出一種稱為快速呼叫前計劃的東西。我回想起 27 年前我花的時間，研究一家公司，讓自己做好準備，與能帶來價值的潛在客戶對話，使我們的賣家能夠擁有所有這些生產力。

So I think it's, again, it's too early to give you exact hundreds of millions of dollars of types of quantifications. But arguably, we are actively looking kind of case by case and really picking the ones that we believe sequentially will be the most accretive to drive the most amount of productivity, the most amount of value back to our shareholders, but candidly, the most amount of value to our clients.

因此，我認為現在為您提供精確的數億美元類型的量化還為時過早。但可以說，我們正在積極地逐個案例進行研究，並真正選擇那些我們認為順序將最有增值作用的項目，以推動最大的生產力，將最大的價值回饋給我們的股東，但坦率地說，最大的金額對我們的客戶有價值。

We have time for one more question, and that question comes from Scott Wurtzel with Wolfe Research.

我們還有時間再問一個問題，這個問題來自 Wolfe Research 的 Scott Wurtzel。

Just on the launch of the construction vertical software, I'm just wondering, is this sort of part of a bigger shift to develop more vertical-specific HCM solutions for your clients? I understand construction may be a more complex vertical, but wondering if there's more of a vertical-specific strategy that could develop beyond the construction vertical.

就在建築垂直軟體推出之際，我只是想知道，這是為您的客戶開發更多垂直特定 HCM 解決方案的更大轉變的一部分嗎？我知道建築可能是一個更複雜的垂直領域，但我想知道是否有更多特定於垂直領域的策略可以發展到建築垂直領域之外。

So I like what you're suggesting, and I think the answer to that could be yes. And I think when I think about back to selling 27 years ago, I used to sell construction companies, and the complexity that they have has always existed. And candidly, a lot of the features and functionality that we have and are now pulling together to make it an actual solution for that vertical existed many years ago. And that's everything from things like job costing, obviously, compliance and reporting, think about certified compliance type of reports for payroll, things of that nature.

所以我喜歡你的建議，我認為答案可能是肯定的。我想，當我回想起 27 年前的銷售時，我曾經銷售過建築公司，而它們的複雜性一直存在。坦白說，我們擁有的許多特性和功能現在正在整合在一起，使其成為多年前就存在的垂直行業的實際解決方案。這包括諸如工作成本核算之類的一切，顯然，合規性和報告，考慮經過認證的合規性工資單報告類型，諸如此類的事情。

And so it's really about pulling it together and marrying it with a service organization that can support the complexity of that vertical. I think that, to me, is a big change. So we did add some features. But a lot of these things we've had and we pulled them together, and we're marrying it with the ecosystem of a dedicated service org that can actually really help the construction industry. And this vertical saw the complexity of being in that industry.

因此，這實際上是將其整合在一起，並將其與能夠支援該垂直領域複雜性的服務組織結合。我認為這對我來說是一個很大的改變。所以我們確實添加了一些功能。但我們已經擁有了很多這樣的東西，我們把它們整合在一起，我們將它與一個專門的服務組織的生態系統結合起來，這實際上可以真正幫助建築業。這個垂直行業看到了該行業的複雜性。

So I think what I would offer is that it's an exciting time for the construction industry, specifically for our Workforce Now clients. And I see that, just as you suggested, as the beginning of other places that we could pull together our existing tech with a dedicated type of service model and solve real challenges in the business for various verticals.

因此，我想我想說的是，這對建築業來說是一個令人興奮的時刻，特別是對於我們的 Workforce Now 客戶而言。我認為，正如您所建議的那樣，這是我們可以將現有技術與專用類型的服務模型結合在一起的其他地方的開始，並解決各個垂直領域的業務中的真正挑戰。

Got it. That's helpful. And just a quick follow-up. Just wondering if you can give an update on sort of Next Gen HCM and Next Gen Payroll attach rates and how we're sort of trending there relative to expectations.

知道了。這很有幫助。只是快速跟進。只是想知道您是否可以提供有關下一代 HCM 和下一代薪資附加率的最新信息，以及我們相對於預期的趨勢。

So Next Gen Payroll, that was the question?

那麼下一代薪資，這就是問題所在？

Both.

兩個都。

Both. Okay, just making sure I heard it right. So I think I touched base really quickly on Next Gen HCM, and I think I nodded to the excitement that we have that we continue to see the strength in the Next Gen HCM offering into Q1. So we had a strong fourth quarter. What I would suggest is that we actually brought in more Next Gen HCM in the first quarter than we saw all of last fiscal year. But again, one quarter of these things can sometimes be lumpy. But I think, for me, it's really about the sentiment.

兩個都。好吧，只是確保我沒聽錯。因此，我認為我很快就接觸了下一代 HCM，而且我認為我對我們在第一季繼續看到下一代 HCM 產品的優勢感到興奮。所以我們第四季表現強勁。我想說的是，我們在第一季引入的下一代 HCM 實際上比上一財年全年還要多。但同樣，這些東西中的四分之一有時可能是不穩定的。但我認為，對我來說，這真的是一種情感。

And so we recently had an Analyst Day. We had a handful of our clients up on stage that shared with us the impact the platform is making for them. And as you would remember, we spent a lot of our discussions over the last year talking about scaling implementation, onboarding the backlog. So it's pretty exciting to see some of that backlog that's no longer backlog on stage, speaking to the value proposition, and that's supported by continued strength, which means our sellers are excited to continue to sell the Next Gen HCM offering. So I think that's all very, very positive.

因此，我們最近舉辦了分析師日。我們的一些客戶在台上與我們分享了該平台對他們的影響。正如您所記得的，去年我們花了很多時間討論擴展實施、處理積壓工作。因此，看到一些積壓訂單不再出現在舞台上，這非常令人興奮，這體現了價值主張，並且得到了持續實力的支持，這意味著我們的賣家很高興繼續銷售下一代 HCM 產品。所以我認為這都是非常非常正面的。

Similarly, we have continued focus in the Next Gen Payroll. And so what I would offer there is we continue to make headway. So as you know, it's not deployed across the entire mid-market. We continue to make headway to solve for more complex features, things of that nature, that will pull it further into the up market of the mid-market.

同樣，我們繼續關注下一代薪資。因此，我想說的是，我們將繼續取得進展。如您所知，它並未部署在整個中端市場。我們將繼續在解決更複雜的功能和此類性質的問題上取得進展，這將使其進一步進入中端市場的高端市場。

But as you know, that Next Gen Payroll engine is also what's attached to the Roll offer. So the other exciting part about that N Gen is it is the thing that's taking us into the SMB space internationally. So I feel really excited about the road map for that offering and the contributions that it's making into the mid-market today, but also into the long-term growth of the company internationally.

但如您所知，下一代薪資引擎也是 Roll 優惠所附帶的內容。因此，N Gen 的另一個令人興奮的部分是，它將我們帶入國際中小企業領域。因此，我對該產品的路線圖及其對當今中端市場以及公司國際長期成長的貢獻感到非常興奮。

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

我們今天的問答部分就到此結束。我很高興將節目交給瑪麗亞布萊克 (Maria Black) 進行閉幕致辭。

Yes. So thank you, Michelle. And listen, it's hard for me not to sit here and reflect on a year ago. And so I was driving in this morning and feeling candidly a bit nostalgic because it's exactly 1 year ago that Carlos and I sat here and announced the transition of me becoming CEO of this amazing company.

是的。謝謝你，米歇爾。聽著，我很難不坐在這裡回想一年前的事。今天早上我開車時，坦率地感到有點懷舊，因為正是在一年前，卡洛斯和我坐在這裡宣布我將成為這家令人驚嘆的公司的首席執行官。

And so I'm incredibly nostalgic and proud today. I'm proud of our first quarter results. I'm really proud of the execution of the team, both with respect to the results, but also with everything that you heard in terms of the progress we are making on a very cohesive and strong strategic outline and priorities. But mostly what I would offer is that I remain incredibly humbled by the over 60,000 associates that I've had an opportunity to engage with over the last year, who continue to make this company everything that it is and absolutely amazing. And I just wanted to say that I'd like to thank each and every one of them for inspiring me every day.

所以今天我非常懷念和自豪。我對我們第一季的業績感到自豪。我對團隊的執行力感到非常自豪，無論是在結果方面，還是在我們在非常有凝聚力和強大的策略綱領和優先事項方面所取得的進展方面所聽到的一切。但我最想說的是，我對過去一年裡我有機會接觸過的 60,000 多名員工感到無比謙卑，他們繼續讓這家公司取得了現在的一切，而且絕對令人驚嘆。我只想說，我要感謝他們每一個人每天都激勵我。

So with that, that is the conclusion of our call, and until we meet again.

至此，我們的通話就結束了，直到我們再次見面。

Thank you for your participation. This does conclude the program, and you may now disconnect. Everyone, have a great day.

感謝您的參與。這確實結束了程序，您現在可以斷開連接。大家，祝你有美好的一天。