自動資料處理 (ADP) 2024 Q2 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 Second Quarter Fiscal 2024 Earnings Call. I would like to inform you that this conference is being recorded. After prepared remarks, we will 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 年第二季財報電話會議。我想通知您，本次會議正在錄製中。準備好發言後，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 Second Quarter Fiscal 2024 Earnings Call. Participating today are Maria Black, our President and CEO; and Don McGuire, our CFO. Earlier this morning, we released our results for the quarter. Our earnings materials are available on the SEC's website and our Investor Relations website at investors.adp.com, where you will also find the investor presentation that accompanies today's call.

謝謝米歇爾，歡迎大家參加 ADP 2024 年第二季財報電話會議。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。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 their most comparable GAAP measures can be found in our earnings release. 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. I'll now turn it over to Maria.

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原則衡量標準與其最具可比性的公認會計原則衡量標準的調節可以在我們的收益報告中找到。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聲明。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。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 second quarter results, including 6% revenue growth and 9% adjusted EPS growth. I'll begin with a review of the quarter's financial highlights before providing an update on the progress we are making across our strategic priorities. We delivered solid Employer Services new business bookings in the second quarter reaching a new record bookings volume for Q2 and keeping us on track for our full year outlook.

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二季業績，包括 6% 的營收成長和 9% 的調整後每股盈餘成長。我將首先回顧本季的財務亮點，然後介紹我們在策略重點方面取得的最新進展。我們在第二季度交付了穩定的雇主服務新業務預訂量，達到了第二季度的新紀錄預訂量，並使我們的全年前景保持在正軌上。

Growth was especially robust across our small business portfolio, and we also experienced healthy growth in our mid-market and international business. With steady demand in HCM and a healthy new business pipeline at the end of the quarter, we look forward to the important selling season ahead. Employer Services retention was strong in the second quarter. Although it declined slightly compared to the prior year, we once again exceeded our expectations as we continue to benefit from a healthy overall business environment and from our very high client satisfaction levels. Our employer services paid for control growth remained at 2% for the second quarter. The overall labor market remains resilient, and our clients continue to add employees at a moderate pace which is resulting in a very gradual deceleration in pays per control growth. And last, our PEO revenue growth of 3% for the second quarter was in line with our expectations, and we are very pleased to have delivered strong PEO new business bookings that were ahead of our expectations. Based on continued healthy activity levels, we feel good about our PEO bookings momentum, and we look forward to seeing a gradual reacceleration of our PEO business in the second half of this fiscal year.

我們的小型業務組合成長尤其強勁，我們的中端市場和國際業務也經歷了健康成長。憑藉 HCM 的穩定需求和本季末健康的新業務管道，我們期待未來重​​要的銷售季節。第二季度雇主服務保留率強勁。儘管與前一年相比略有下降，但我們再次超越了我們的預期，因為我們繼續受益於健康的整體商業環境和非常高的客戶滿意度。我們的雇主服務付費控製成長在第二季度維持在 2%。整體勞動市場保持彈性，我們的客戶繼續以適度的速度增加員工，這導致人均薪資成長逐漸放緩。最後，我們第二季的 PEO 營收成長 3% 符合我們的預期，我們很高興交付了強勁的 PEO 新業務預訂，超出了我們的預期。基於持續健康的活動水平，我們對 PEO 預訂勢頭感到滿意，並期待在本財年下半年看到我們的 PEO 業務逐步重新加速。

Moving on to a broader update. During the second quarter, we launched a new brand advertising campaign being the next anything. The campaign highlights how the world of work is always changing, sometimes gradually, sometimes suddenly and trusted business solutions must evolve with it. The theme aligns with our strategic priorities to give our clients the advantage of our leading technology, expertise and scale.

繼續進行更廣泛的更新。在第二季度，我們推出了新的品牌廣告活動。該活動強調工作世界總是在變化，有時是逐漸變化，有時是突然變化，值得信賴的業務解決方案必須隨之發展。這個主題與我們的策略重點一致，讓我們的客戶能夠利用我們領先的技術、專業知識和規模的優勢。

In Q2, we continued to push forward on our first strategic priority to lead with best-in-class HCM technology. A key part of that is the rollout of ADP Assist, our cross-platform solution powered by Gen AI that proactively delivers actionable insights in plain language to enhance HR productivity, aid decision-making and streamline day-to-day tasks for our clients and their employees. ADP Assist seamlessly integrates with ADP products across multiple platforms. Using an intuitive conversational interface, it provides valuable and contextual insights which touch every aspect of HR. For example, in addition to the features we shared with you last quarter, including our natural language reporting capability, in Q2, we integrated natural language search capabilities into our Run platform, which allows us to understand intent behind the search term and use Gen AI to mine ADP's deep knowledge base to deliver easy-to-use and effective content.

第二季度，我們持續推進首要策略重點，以一流的 HCM 技術引領。其中的關鍵部分是推出ADP Assist，這是我們由Gen AI 提供支援的跨平台解決方案，它能夠以簡單的語言主動提供可行的見解，以提高人力資源生產力、幫助決策並簡化客戶的日常任務，他們的員工。 ADP Assist 與多個平台的 ADP 產品無縫整合。它使用直覺的對話式介面，提供有價值的上下文見解，涉及人力資源的各個方面。例如，除了我們在上季度與您分享的功能（包括我們的自然語言報告功能）之外，在第二季度，我們將自然語言搜尋功能整合到我們的Run 平台中，這使我們能夠了解搜尋字詞背後的意圖並使用Gen AI挖掘 ADP 深厚的知識庫，提供易於使用且有效的內容。

ADP Assist also helps clients validate payrolls and solve common employee challenges across HR, payroll, time and benefits. It's a comprehensive experience that is trained on the industry's largest and deepest HCM data set and our deep knowledge base to service highly credible and actionable insights so that clients can make smarter decisions. We are excited about the road map ahead for all of our major solutions, and we expect it to help us build on the recognition we continue to earn in the market. In Q2 alone, we were pleased to be recognized for product leadership by 3 major industry analyst rankings. Everest Group named ADP the highest leader out of 27 providers in its multi-country payroll solutions Peak Matrix report. Nelson Hall identified ADP as a leader in its payroll services vendor evaluation and assessment tool in all markets. And Ventana Research named us an exemplary leader across its North American global and payroll management buyers guide for performing the best and meeting overall product and customer experience requirements.

ADP Assist 還幫助客戶驗證薪資單並解決人力資源、薪資、時間和福利的常見員工挑戰。這是一種綜合經驗，經過業界最大、最深入的 HCM 資料集和我們深厚的知識庫的培訓，可提供高度可信且可操作的見解，以便客戶能夠做出更明智的決策。我們對所有主要解決方案的未來路線圖感到興奮，我們希望它能夠幫助我們在市場上繼續獲得認可。僅在第二季度，我們就很高興獲得 3 個主要行業分析師排名的產品領先地位認可。 Everest Group 在其多國薪資解決方案 Peak Matrix 報告中將 ADP 評為 27 家供應商中的最高領導者。 Nelson Hall 將 ADP 視為所有市場薪資服務供應商評估和評估工具的領導者。 Ventana Research 在其北美全球和薪資管理買家指南中將我們評為模範領導者，以表彰我們表現最佳並滿足整體產品和客戶體驗要求。

Our second strategic priority is to provide unmatched expertise and outsourcing solutions. We shared last quarter that we were beginning to equip our associates with Gen AI capabilities through our agent assist technology. In Q2, we expanded our call summarization deployment to a greater portion of our service associates and started to see productivity gains with shorter handle time and improved service quality. With our global service associates fielding millions of calls annually, we are incredibly excited to test ways to optimize those client interactions.

我們的第二個策略重點是提供無與倫比的專業知識和外包解決方案。上季我們表示，我們開始透過代理輔助技術為我們的員工配備 Gen AI 功能。在第二季度，我們將呼叫摘要部署擴展到了更多的服務人員，並開始看到透過縮短處理時間和提高服務品質來提高生產力。我們的全球服務人員每年都會接聽數百萬通電話，我們非常高興能夠測試優化這些客戶互動的方法。

Our third strategic priority is to benefit our clients through our global scale, and we continue to lean into this advantage. In Q2, we announced a strategic collaboration with Convera, a global business-to-business payments company to help our multi-country clients manage the complexity of global payroll and cross-border payments through an integrated platform by combining Convera's payment solutions with our global payroll expertise we're enhancing the client experience by minimizing the need to access various banking platforms and improving payment accuracy, compliance and security. We also announced the launch of ADP Retirement Trust services to support our growing retirement services business. Standing up our own trust services entity demonstrates our scale and commitment to our retirement clients positioning us on par with financial industry leaders and ahead of HCM competitors that rely on third parties.

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，我們將繼續利用這一優勢。在第二季度，我們宣布與全球企業對企業支付公司Convera 進行策略合作，透過將Convera 的支付解決方案與我們的全球支付解決方案相結合，幫助我們的多國客戶透過整合平台管理全球薪資和跨境支付的複雜性。薪資專業知識我們透過最大限度地減少訪問各種銀行平台的需要並提高支付準確性、合規性和安全性來增強客戶體驗。我們也宣布推出 ADP 退休信託服務，以支援我們不斷成長的退休服務業務。建立我們自己的信託服務實體表明了我們的規模和對退休客戶的承諾，使我們能夠與金融業的領導者並駕齊驅，並領先於依賴第三方的 HCM 競爭對手。

This commitment can really matter to financial advisers, keep data within ADP's trusted ecosystem and provides a cost and price benefit to ADP and our clients over the long term. Our scale also affords us the opportunity to partner with other leading technology providers in innovative ways, and we continue to expand on many of those partnerships to provide our sales implementation and service teams with client-specific insights to quickly address market shifts, drive more personalized interactions and deepen our overall client engagement. Overall, our second quarter represented strong outcomes on the financial front. And with respect to our key strategic priorities, I'd like to thank our associates who continue to deliver exceptional products and outstanding service to our clients, particularly now as many of them are in the middle of our most hectic time of year completing year-end work.

這項承諾對財務顧問來說確實很重要，可以將資料保存在 ADP 值得信賴的生態系統中，並為 ADP 和我們的客戶提供長期的成本和價格優勢。我們的規模也為我們提供了以創新方式與其他領先技術供應商合作的機會，並且我們繼續擴大其中許多合作夥伴關係，為我們的銷售實施和服務團隊提供針對客戶的見解，以快速應對市場變化，推動更加個人化互動並加深我們的整體客戶參與。總體而言，我們第二季在財務方面取得了強勁成果。關於我們的關鍵策略重點，我要感謝我們的員工，他們繼續為我們的客戶提供卓越的產品和卓越的服務，特別是現在，因為他們中的許多人正處於我們一年中最忙碌的時期 -結束工作。

I'm proud to share that their efforts helped drive our overall Net Promoter Score to its highest level ever in the second quarter. Thank you again for all that you do for ADP and for our clients. And now I'll turn it over to Don.

我很自豪地與大家分享，他們的努力幫助我們第二季的整體淨推薦值達到了歷史最高水準。再次感謝您為 ADP 和我們的客戶所做的一切。現在我會把它交給唐。

Thank you, Maria, and good morning, everyone. I'll provide more color on our results for the quarter as well as our updated fiscal 2024 outlook. Overall, we reported a strong second quarter with our consolidated revenue growth moderating in line with our expectations, and our adjusted EBIT margin coming in slightly better than expected. However, the interest rate backdrop has changed since we last provided our full year outlook, and we are lightly tweaking our outlook, which I will detail.

謝謝你，瑪麗亞，大家早安。我將提供更多有關本季業績以及更新的 2024 財年展望的資訊。整體而言，我們的第二季業績強勁，綜合營收成長放緩符合我們的預期，調整後的息稅前利潤率略優於預期。然而，自從我們上次提供全年展望以來，利率背景已經發生了變化，我們正在稍微調整我們的前景，我將詳細介紹這一點。

I'll start with Employer Services. ES segment revenue increased 8% on a reported basis and 7% on an organic constant currency basis coming in slightly ahead of our expectations. As Maria shared, we continue to grow our ES new business bookings resulting in a record second quarter bookings volume. Our small business portfolio and international business provided outsized growth contributions this quarter. And with a steady HCM demand environment and healthy pipelines, we feel on track for our 4% to 7% new business bookings growth outlook for the year. As mentioned earlier, our ES retention declined slightly in Q2 versus the prior year, but again, exceeded our expectations. Given our first half retention outperformance, we are increasing our full year retention outlook slightly. We now anticipate a 40 to 60 basis point decline in our full year retention, which is 10 basis points better than our prior forecast. ES pays per control growth of 2% in Q2 and was in line with our expectations, and we are maintaining our 1% to 2% growth outlook for the full year. And client funds interest revenue increased in line with our expectations in Q2 as a slight decline in our average client funds balance, which we discussed last quarter, was more than offset by an increase in our average yield. However, we are revising our full year client funds interest outlook lower to reflect the change in prevailing interest rates since our last update.

我將從雇主服務開始。 ES 部門營收按報告計算成長 8%，以有機固定匯率計算成長 7%，略高於我們的預期。正如瑪麗亞分享的那樣，我們繼續增加 ES 新業務預訂，導致第二季預訂量創下歷史新高。我們的小型企業組合和國際業務為本季的成長做出了巨大貢獻。憑藉穩定的 HCM 需求環境和健康的管道，我們認為今年新業務預訂成長前景預計將達到 4% 至 7%。如前所述，第二季度我們的 ES 保留率與去年相比略有下降，但再次超出了我們的預期。鑑於我們上半年的留存表現出色，我們小幅提高了全年留存前景。我們現在預計全年保留率將下降 40 至 60 個基點，比我們先前的預測好 10 個基點。 ES 在第二季按控製成長 2%，符合我們的預期，我們維持全年 1% 至 2% 的成長前景。客戶資金利息收入的成長符合我們第二季的預期，因為我們上季度討論過的平均客戶資金餘額略有下降，但被我們平均收益率的成長所抵消。然而，我們正在下調全年客戶資金利率展望，以反映自上次更新以來現行利率的變化。

We now expect fiscal '24 client funds interest revenue of $985 million to $995 million, and we expect a net impact from our client funds extended investment strategy of $835 million to $845 million, representing a reduction of about $20 million at the midpoint. In total, there was no change to our fiscal '24 ES revenue growth forecast of 7% to 8%. Our ES margin increased 170 basis points in Q2. driven by both operating leverage and contribution from client funds interest revenue growth, but reflecting the impact of a reduced client funds interest revenue forecast as well as a slight increase in expected Gen AI-related spend, we are tweaking our fiscal '24 ES margin outlook and now anticipate the lower end of our prior margin range.

我們現在預計 24 財年客戶基金利息收入為 9.85 億美元至 9.95 億美元，我們預期客戶基金擴展投資策略的淨影響為 8.35 億美元至 8.45 億美元，中點減少約 2,000 萬美元。整體而言，我們對 24 財年 ES 營收成長預測（7% 至 8%）沒有變動。第二季我們的 ES 利潤率增加了 170 個基點。受到營運槓桿和客戶基金利息收入成長貢獻的推動，但反映了客戶基金利息收入預測降低以及預期 Gen AI 相關支出略有增加的影響，我們正在調整 24 財年 ES 利潤率展望現在預測我們先前保證金範圍的下限。

Moving on to the PEO, we had 3% revenue growth, driven by 2% growth in average worksite employees in the second quarter. These metrics were in line with our expectation, and we are encouraged to see signs of stabilization in our PEO pays per control growth. As Maria mentioned, our PEO new business bookings were very strong in Q2. With continued healthy activity levels, we continue to anticipate a gradual ramp in our worksite employee growth in the back half of fiscal '24. And we are maintaining our full year growth outlook of 2% to 3%. PEO margins decreased 50 basis points in Q2. As we shared last quarter, we assume this year's workers' compensation reserve release benefit will be lower than last year's benefit, and we are further narrowing our PEO margin expectation to be down 80 to 100 basis points in fiscal '24 and versus our prior expectation of a decline of 50 to 100 basis points.

繼續到 PEO，我們的收入成長了 3%，這得益於第二季平均工作場所員工成長 2%。這些指標符合我們的預期，我們很高興看到我們的 PEO 薪酬每項控製成長的穩定跡象。正如瑪麗亞所提到的，我們的 PEO 新業務預訂在第二季度非常強勁。隨著持續健康的活動水平，我們繼續預計 24 財年後半段我們的工作場所員工人數將逐步增加。我們維持全年成長 2% 至 3% 的預期。第二季 PEO 利潤率下降 50 個基點。正如我們上季度分享的那樣，我們假設今年的工人賠償準備金發放福利將低於去年的福利，並且我們將進一步縮小PEO 利潤率預期，將24 財年的PEO 利潤率預期下降80 至100 個基點，與我們先前的預期相比下降50至100個基點。

Putting it all together, there was no change to our fiscal '24 consolidated revenue growth outlook of 6% to 7%. With the 2 changes to segment margin, we now expect our adjusted EBIT margin to increase by 60 to 70 basis points versus our prior outlook for an increase of 60 to 80 basis points. We continue to expect an effective tax rate of around 23%, and we still anticipate fiscal '24 adjusted EPS growth of 10% to 12% with the middle of that range, the most likely outcome, given current assumptions. Thank you. And I'll now turn it back to the operator for Q&A.

總而言之，我們 24 財年 6% 至 7% 的綜合營收成長前景並沒有改變。隨著部門利潤率的兩次變化，我們現在預計調整後的息稅前利潤率將增加 60 至 70 個基點，而我們先前的預期為增加 60 至 80 個基點。我們繼續預計有效稅率約為 23%，並且我們仍預計 24 財年調整後每股收益將增長 10% 至 12%，考慮到當前的假設，該範圍的中間位置是最有可能的結果。謝謝。現在我會將其轉回給接線員進行問答。

(Operator Instructions) We will take our first question from Mark Marcon with Robert W. Baird.

（操作員說明）我們將回答 Mark Marcon 和 Robert W. Baird 提出的第一個問題。

Congratulations on all the accolades that you've gotten from the third-party reviewers. I'm wondering if you can talk a little bit about some of the initiatives. And specifically, one that stood out was setting up your own trust. Can you talk a little bit about the investment there and how we should think about how that would end up unfolding and what do you think some of the reactions would be with some of your third-party partners like you've got bank partnerships and CPA partnerships and obviously, benefit administration partnerships. How do you think they'll end up reacting?

恭喜您從第三方審閱者那裡獲得的所有讚譽。我想知道您是否可以談談其中的一些舉措。具體來說，最突出的一點是建立自己的信託。您能談談那裡的投資嗎？我們應該如何考慮這將如何最終展開？您認為您的一些第三方合作夥伴（例如您的銀行合作夥伴和註冊會計師）會有何反應夥伴關係，顯然還有福利管理夥伴關係。你認為他們最終會有何反應？

Thank you, Mark. I appreciate the question, and I appreciate your well wishes on all of our recognition, certainly excited to see across the board -- the recognition we mentioned during the prepared remarks, but also the continued momentum across all of our initiatives. Happy to comment on Retirement Trust Services. It is really a demonstration of our scale.

謝謝你，馬克。我很欣賞這個問題，也感謝你們對我們所有認可的良好祝愿，當然很高興看到全面的認可——我們在準備好的發言中提到的認可，以及我們所有舉措的持續勢頭。很高興對退休信託服務發表評論。這確實是我們規模的展示。

And so when I think about what it means to our clients, what it means to the ecosystem that you mentioned, banks, CPAs. I think it's all incredibly positive. And trust services are a core component of any 401(k) plan. Given the size and the scale of our retirement services business, what we found is that the pool of what's known as third-party trustees, if you will, that are capable of handling a business just of our size is actually becoming shrinkingly more difficult, if you will, in terms of the number of providers that are able to offer stand-alone trust services to a retirement offering of our size.

因此，當我思考這對我們的客戶意味著什麼，對你提到的生態系統、銀行、註冊會計師意味著什麼時。我認為這一切都是非常積極的。信託服務是任何 401(k) 計劃的核心組成部分。考慮到我們退休服務業務的規模和規模，我們發現，能夠處理與我們規模相當的業務的所謂第三方受託人（如果你願意的話）實際上變得越來越困難，如果您願意的話，就能夠為我們規模的退休產品提供獨立信託服務的提供者數量而言。

So in terms of that, we made the decision to launch our in-house trust services. We believe that this is a great value to our clients, to the ecosystem. It puts us on par with other industry leaders in the financial services and really a competitive advantage against some of our HCM competitors that continue to leverage the third-party trustees. So for us, I think it's a big commitment to the business that we have, the retirement business that is, which really can matter to financial advisers. And as we said, CPAs and banks really by taking the trust services and how the implication is that we have better control over our costs. Ultimately, that yields a better price for our clients, a better service. We also have the ability to maintain all of the data inside of ADP's ecosystem which, as you know, is a big component of who ADP is in terms of data integrity and all those things. So that's kind of the retirement trust services in a nutshell Mark.

因此，就這一點而言，我們決定推出我們的內部信託服務。我們相信這對我們的客戶和生態系統來說都是巨大的價值。它使我們與金融服務領域的其他行業領導者處於同一水平，並且相對於一些繼續利用第三方受託人的 HCM 競爭對手來說，我們確實具有競爭優勢。因此，對我們來說，我認為這是對我們現有業務（即退休業務）的重大承諾，這對財務顧問來說確實很重要。正如我們所說，註冊會計師和銀行確實透過接受信託服務，這意味著我們可以更好地控制我們的成本。最終，這將為我們的客戶帶來更好的價格和更好的服務。我們也有能力維護 ADP 生態系統內的所有數據，如您所知，就數據完整性等而言，這是 ADP 的重要組成部分。簡而言之，這就是退休信託服務，馬克。

And then just it was noticeable that you basically are anticipating a lower level of decline in terms of the ES retention, which is coming off of record levels. To what extent is that due to an anticipation of lower levels of bankruptcies as opposed to just the improvement that you've been seeing in terms of your client service scores?

然後值得注意的是，您基本上預計 ES 保留率的下降幅度較小，即將脫離創紀錄的水平。這在多大程度上是由於破產率降低的預期，而不僅僅是您所看到的客戶服務評分的改善？

So retention is going incredibly well, right? And we mentioned that in the remarks, year-to-date retention has definitely been better than we expected. And so I think things are fundamentally really healthy right now.

所以保留率進展得非常好，對嗎？我們在評論中提到，今年迄今的留存率肯定比我們預期的要好。所以我認為現在的情況從根本上來說是非常健康的。

One thing to keep in mind as I kind of think about the outlook, is that we are, as you mentioned, we are coming off of some of the record highs that we've seen over the last several years. And while we believe that from a specifically a down market perspective, we're close to being normalized back to fiscal '19 trends, we do also anticipate some pressure in the back half from perhaps out of business in bankruptcies having more of a material impact. We haven't seen it to date but we certainly want to ensure that we're cognizant of the fact that we believe it's prudent given that we have retention running at such record levels, we believe it's prudent to plan for it in the back half to have some pressure.

在我思考前景時要記住的一件事是，正如您所提到的，我們正在擺脫過去幾年所看到的一些歷史新高。雖然我們認為，從具體的低迷市場角度來看，我們即將恢復到 19 財年的趨勢，但我們也預計下半年會面臨一些壓力，因為破產可能會造成更大的實質性影響。 。到目前為止我們還沒有看到這一點，但我們當然希望確保我們認識到這樣一個事實，即考慮到我們的保留率保持在如此創紀錄的水平，我們認為這是謹慎的，我們認為在下半年進行計劃是謹慎的要有一定的壓力。

And obviously, just like any year, Mark, retention is always noisy, and so we have some normal variability in some services in the back half. Just like you, I'd like to think that there's opportunity there. I think only time will give us the answer to that, but that's kind of how we're thinking about the back half.

顯然，就像任何一年一樣，馬克，保留率總是很吵鬧，因此我們在後半部分的某些服務中存在一些正常的變化。就像你一樣，我也認為那裡有機會。我認為只有時間才能給我們答案，但這就是我們對後半部的看法。

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。

Great. Appreciate all the detail this morning. I wanted to quickly just touch on PEO. You called out a strong acceleration in the business, but it looks like outlook for revenues was changed. You may have mentioned that, but I'm just trying to capture how much of that is timing issue versus the concentration you have in professional services and technology, which still seem a little bit soft, at least in the employment reports.

偉大的。欣賞今天早上的所有細節。我想快速談談 PEO。您稱業務強勁加速，但收入前景似乎發生了變化。您可能已經提到過這一點，但我只是想了解其中有多少是時間問題與您對專業服務和技術的關注，至少在就業報告中，這似乎仍然有點軟弱。

Yes, James. Thanks for that question. We've been happy to see the stabilization in the the pays per control in those sectors, the financial services and technology sectors. So although where there's still a little bit of noise there, it certainly stabilized from what we saw in the prior quarter. So that's positive.

是的，詹姆斯。謝謝你提出這個問題。我們很高興看到這些產業、金融服務和科技業的控制薪酬趨於穩定。因此，儘管仍然存在一些噪音，但它肯定比我們上一季看到的更穩定下來。所以這是積極的。

I do think that as we looked at our sales results, our bookings for PEO, we were very happy with the bookings. Maria mentioned that already very good. I think as we kind of put that together, the improvement in the pays per control and the improvement in our bookings. I think we're going to be heading towards that reacceleration that we've been pointing to over the last couple of quarters in the PEO but really just trying to get the impact of those 2 components, those variables is really what's going to help us get that reacceleration going.

我確實認為，當我們查看我們的銷售結果以及對 PEO 的預訂時，我們對這些預訂感到非常滿意。瑪麗亞提到這已經很好了。我認為，當我們把這些放在一起時，每次控制的費用都會有所改善，我們的預訂也會有所改善。我認為我們將朝著過去幾個季度我們一直在 PEO 中指出的重新加速邁進，但實際上只是試圖了解這兩個組成部分的影響，這些變數確實會幫助我們讓重新加速繼續進行。

James -- just to clarify James, the pays per control, although it's stabilizing, it's not providing any sort of upside versus our prior forecast. So bookings are going well. It takes quite a bit in terms of bookings to really drive a material change to the current year revenue, which you all understand. With pays per control is still providing sequential gradual drag. Those 2 are sort of netting out to an in-line outlook.

詹姆斯——只是為了澄清詹姆斯，每個控制的報酬雖然正在穩定，但與我們先前的預測相比並沒有提供任何形式的上行空間。所以預訂進展順利。就預訂而言，需要相當多的時間才能真正推動本年度收入發生重大變化，這一點你們都明白。按每個控制項付費仍然提供順序漸進拖曳。這兩者在某種程度上是一致的前景。

Got it. Danny. And then quickly on AI. It seems like there's a little bit of incremental investment there and certainly a big focus on this call. But wondering about how we should think about the -- how you're anticipating a return on that investment and over what kind of time frame? And maybe more qualitatively what kinds of paybacks, where there's increased customer satisfaction or internal operations, et cetera?

知道了。丹尼.然後快速發展人工智慧。看起來那裡有一些增量投資，並且肯定會重點關注這次電話會議。但想知道我們應該如何考慮——您如何預期該投資的回報以及在什麼樣的時間範圍內？也許更定性地說，什麼樣的回報，顧客滿意度或內部營運的提升等等？

Yes. So I'll start on the AI side and tell you all the reasons again that I'm so excited about it. Maybe Don can give you a little bit about how we're thinking about the return on investments that we're making. So just to remind everyone how we're thinking about AI in its most simplistic way, I think about it really in 3 buckets, the first of which is product and innovation. So putting generative AI into all of our innovation cycle. So that's everything from product development to the features and functionality that I mentioned in the prepared remarks.

是的。因此，我將從人工智慧方面開始，並再次告訴您我對此感到非常興奮的所有原因。也許唐可以向您介紹我們如何看待我們所做的投資回報。因此，為了提醒大家我們如何以最簡單的方式思考人工智慧，我實際上將其分為三個部分，第一個是產品和創新。因此，將生成式人工智慧納入我們所有的創新週期。這就是我在準備好的評論中提到的從產品開發到特性和功能的一切。

And by the way, later this morning, we're actually issuing a press release that goes through some of our product and innovation, call it philosophy and launches of products, right? So some of what this press release speaks to is how we're thinking about and our design principles around making things easy, smart and human within our product and innovation cycles to really drive things like payroll assist, things like ADP assist into the market in a meaningful way.

順便說一句，今天早上晚些時候，我們實際上發布了一份新聞稿，介紹了我們的一些產品和創新，稱之為理念和產品發布，對吧？因此，本新聞稿所闡述的一些內容是我們如何思考以及我們的設計原則，圍繞在我們的產品和創新週期中使事情變得簡單、智能和人性化，以真正推動工資單輔助、ADP 輔助等產品進入市場。有意義的方式。

So product is really kind of the first bucket. And as you'll see, we're making significant investments there. We do have ADP assist now more broadly deployed across the product set, and we're seeing meaningful impact as it relates to our client experience on that. The second bucket is what I call efficiency and service efficiency, and this is really about giving all the same things that we're looking to give our clients to make their jobs easier and more effective and efficient and giving those same tools to our associates. And so we have agent assist. I'm pleased to say that from an agent assist perspective, we've more than doubled the number of associates today that are engaging in AI tools overall.

所以產品確實是第一桶。正如您將看到的，我們正在那裡進行大量投資。我們現在確實在整個產品集中更廣泛地部署了 ADP 協助，我們看到了有意義的影響，因為它與我們的客戶體驗相關。第二個桶子是我所說的效率和服務效率，這實際上是提供我們希望為客戶提供的所有相同的東西，使他們的工作更輕鬆、更有效和高效，並向我們的員工提供相同的工具。所以我們有代理協助。我很高興地說，從座席協助的角度來看，我們今天使用人工智慧工具的員工總數增加了一倍以上。

Specifically, a big piece of that is anchored in agent assist and the things we're doing around call summarization. Again, I'll let Don comment on investments and return. But just to kind of give you a flavor of what we're talking about here the feedback we're getting from our associates is there are times we're saving up a minute or 2 minutes by aiding things like call summarization. And while that probably seen minuscule, what I would offer to you is we have thousands of service associates, and we also have millions and millions of calls that we take every single year. And so we're pretty optimistic and excited about a minute here in a minute there and what that means from an incremental opportunity for us over time, right? So we continue to lean into service efficiency and really getting all of our associates more effective as it relates to their ability to engage with our clients.

具體來說，其中很大一部分是基於座席協助以及我們圍繞呼叫摘要所做的事情。再次，我將讓唐評論投資和回報。但為了讓您了解我們在這裡討論的內容，我們從同事那裡得到的反饋是，有時我們透過幫助呼叫摘要等事情節省了一兩分鐘的時間。雖然這可能看起來微不足道，但我可以向您提供的是，我們擁有數千名服務人員，而且我們每年還接聽數以百萬計的電話。因此，我們對這裡一分鐘那裡一分鐘感到非常樂觀和興奮，隨著時間的推移，這對我們來說意味著增量機會，對吧？因此，我們繼續注重服務效率，真正提高所有員工的效率，因為這關係到他們與客戶互動的能力。

And then last but not least, by the way, I could go on and on and on all day on this topic. But last but not least, very, very important is how we're thinking about generative AI in our go-to-market motions. And so we have, for years, been at the tip of the spear of sales modernization. We have partnerships that are 2 decades old where we've always been leading the way with what it looks like to have a best-in-class modern distribution and sales force, and this is no different for us. We already have a broad set of our sellers leveraging tools along the lines of generative AI, many of which are through our best-in-class vendors and partners that we have and we're seeing great impact there. Things that I used to do myself at a personal level, manually such as pre-call planning, by the way, things like call summarization for prospecting -- these are big items for us as it relates to our go-to-market motions, and we've just started scratching the surface.

最後但並非最不重要的一點是，順便說一句，我可以一整天都在談論這個話題。但最後但並非最不重要的一點是，非常非常重要的是我們如何在進入市場的行動中考慮生成式人工智慧。因此，多年來我們一直處於銷售現代化的前沿。我們的合作關係已有 20 年歷史，我們一直以一流的現代分銷和銷售團隊引領潮流，這對我們來說也不例外。我們已經有一大批賣家在利用產生人工智慧等工具，其中許多是透過我們擁有的一流供應商和合作夥伴提供的，我們看到了巨大的影響力。我過去常常在個人層面上手動做的事情，例如通話前計劃，順便說一下，諸如為潛在客戶進行通話總結之類的事情- 這些對我們來說是重要的項目，因為它與我們的上市動議有關，我們才剛開始觸及表面。

So all in, really excited, again, just kind of wraps t all up. I think it's about product, service efficiency and our go-to-market motion. We are making active investments. Some of those investments are things that we've shifted that we were already working on in digital transformation. Some of it is incremental investments. And so I think with that, I'll turn it over to Don, if you can kind of talk about how we're thinking about our incremental investments and moreover the return on that.

總而言之，真的很興奮，再次，這一切都結束了。我認為這與產品、服務效率和我們的上市行動有關。我們正在積極進行投資。其中一些投資是我們已經在數位轉型中進行的轉移。其中一些是增量投資。所以我想，如果你能談談我們如何考慮我們的增量投資以及回報，我會把它交給唐。

Yes. So I think Maria has just outlined some of the exciting areas that Gen AI will have for us. And some of the things that will change how they will make the client experience better, how they help our associates how they help us sell more, et cetera. But I would say at this point in time, what we're really talking about is some modest investments in Gen AI. I think it's going to be a little while before we start to see returns from those things, but we certainly do anticipate returns. But in the near term right now, it's really a time for investing in these tools, et cetera, and we'll see those outcomes, those financial outcomes somewhere down the road.

是的。所以我認為 Maria 剛剛概述了 Gen AI 將為我們帶來的一些令人興奮的領域。其中一些事情將改變他們如何改善客戶體驗，如何幫助我們的員工，如何幫助我們銷售更多產品，等等。但我想說，此時此刻，我們真正談論的是對 Gen AI 的一些適度投資。我認為我們還需要一段時間才能看到這些事情的回報，但我們確實預期會有回報。但在短期內，現在確實是投資這些工具等的時候了，我們將在未來的某個地方看到這些結果、那些財務結果。

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。

You guys called out higher seller expenses as just one component of the margin headwinds in PEO. I guess the question, is this just the cost to compete in PEO at this point? In other words, is it becoming more expensive to compete in PEO? Or do you expect expense levels related to selling to sort of abate in a more normalized time period?

你們稱更高的賣家費用只是 PEO 利潤逆風的一個組成部分。我想問題是，這只是目前 PEO 競爭的成本嗎？換句話說，PEO 的競爭成本是否會變得更高？或者您是否預期與銷售相關的費用水準會在更正常化的時間內有所下降？

Yes. I don't think there's -- just to answer the question. There's nothing really unusual or fundamentally different about our selling expenses and how we go to market in the PEO, I think, certainly, as we see higher sales, as you know, we get a lot of our sales -- half of our sales give or take from internal. So some of that's a little bit of our internal housekeeping, if you will, how we allocate expenses between business units, et cetera, but higher sales generally translate into higher selling expenses.

是的。我認為沒有——只是為了回答這個問題。我認為，我們的銷售費用以及我們在PEO 中進入市場的方式並沒有什麼真正不尋常或根本不同的地方，正如您所知，當我們看到更高的銷售額時，我們得到了很多銷售額——我們銷售額的一半給了或從內部獲取。因此，如果您願意的話，其中一些是我們的內部管理，我們如何在業務部門之間分配費用等等，但更高的銷售額通常會轉化為更高的銷售費用。

So really nothing fundamentally different in how we go to market, certainly not seeing any fundamental differences in the competitive landscape that's driving those expenses.

因此，我們進入市場的方式實際上沒有什麼根本性的不同，當然也沒有看到推動這些費用的競爭格局有任何根本性的差異。

Got it. Okay. And then one follow-up for me. In the context of the international product launches like Rural in Ireland and also, I guess, the partnership you guys just announced with Convera. Can you comment on the international value proposition itself, whether it's sort of largely the same as it is in the U.S.? Or are there distinctive products, needs, partnerships required in these markets that you guys sort of still need to build out to more fully execute on the international opportunity?

知道了。好的。然後是我的後續行動。在愛爾蘭 Rural 等國際產品發布的背景下，我想還有你們剛剛宣布與 Convera 的合作關係。您能否評論一下國際價值主張本身，它是否與美國的價值主張大致相同？或者這些市場中是否有獨特的產品、需求和合作關係，你們仍然需要建立這些產品、需求和合作關係，以便更充分地利用國際機會？

Yes, I'll start, and [you Mari] can add here in a second. So as you know, if you look at our revenue as international revenue as a percentage of the total, and it's not where we'd like it to be, even though roughly 40% of the people we pay around the world are in international. So -- and the reason for that is that we have fundamentally different offers in the U.S. We have things like PEO. We also have money movement services, tax services, pretty much broadly distributed.

是的，我先開始，[你 Mari] 可以稍後添加。如您所知，如果您查看我們的國際收入佔總收入的百分比，您會發現這並不是我們希望的那樣，儘管我們在全球支付的員工中有大約 40% 是國際員工。所以——原因是我們在美國有根本不同的報價。我們有 PEO 之類的東西。我們也提供資金流動服務、稅務服務，分佈相當廣泛。

Some of those offers don't have the same value proposition outside of the U.S. market. So our opportunity there is not quite the same. Perhaps it will be as time goes on, some of those services may be available in other markets. But as we speak today, they're not there, the value prop isn't the same. And with respect to Convera as a partner, just to speak to that a little bit, we have thousands of clients and those thousands of clients have thousands of entities spread across multiple countries around the world. And if you think about the complexity and the difficulty of paying their people in some of these small countries and then getting the payments to the various social security providers in those countries.

其中一些產品在美國市場之外沒有相同的價值主張。所以我們的機會並不完全相同。也許隨著時間的推移，其中一些服務可能會在其他市場提供。但正如我們今天所說，它們並不存在，價值支撐也不一樣。就 Convera 作為合作夥伴而言，我們擁有數以千計的客戶，而這數以千計的客戶擁有遍布全球多個國家的數以千計的實體。如果你考慮向其中一些小國的人民付款，然後向這些國家的各種社會保障提供者付款的複雜性和難度。

Having somebody like Convera who can help a large European or a large U.S. multinational managed the treasury function in those small countries around the world without having to set up all the banking, et cetera. Someone like Convera actually is a great partner for us to facilitate those cross-border payments in a very -- in a compliant way, et cetera. So I think that's very positive for us. So we do have some partners in international, like Convera, as I just mentioned, but we still see it as a great opportunity for us to continue to grow.

有像孔維拉這樣的人可以幫助大型歐洲或大型美國跨國公司管理世界各地小國的財務職能，而無需建立所有銀行業務等。像 Convera 這樣的人實際上是我們的一個很好的合作夥伴，可以以非常合規的方式促進這些跨境支付等等。所以我認為這對我們來說非常積極。因此，正如我剛才提到的，我們確實在國際上有一些合作夥伴，例如 Convera，但我們仍然認為這是我們繼續發展的絕佳機會。

That's right. If I may, one of the things I think what Don is suggesting is really, the opportunity we have with international. And so when you put it in the context of what the business that we have in the U.S., there is a tremendous opportunity for us to think more broadly in international partnerships as the one Don just outlined with Convera is a big piece of that.

這是正確的。如果可以的話，我認為唐所建議的一件事實際上是我們與國際合作的機會。因此，當你把它放在我們在美國的業務背景下時，我們有一個巨大的機會更廣泛地思考國際合作夥伴關係，因為唐剛剛與康維拉概述的合作夥伴關係是其中的重要組成部分。

What I would also add is that -- from an international perspective, we did call out the performance specifically in Q2 on international. That's, by the way, in bookings. That's on the heels of a solid Q1. What I would offer as well as we have record retention. We have record customer experience and client experience in international. So I think we have a tremendous value proposition in international. By the way, some of the recognition I cited during the prepared remarks is really about how best-in-class our offer is with respect to the international offering we have. So that said, as Don mentioned, we're not satisfied. I think there's more opportunity to get scaled and grow are beyond payroll offerings partnerships are a big piece of that. But undoubtedly, we're performing and competing very, very well internationally.

我還想補充的是，從國際角度來看，我們確實特別提到了第二季國際方面的表現。順便說一句，這是在預訂中。這是繼第一季表現強勁之後的結果。我會提供什麼以及我們有記錄保留。我們擁有創紀錄的客戶體驗和國際客戶體驗。所以我認為我們在國際上有巨大的價值主張。順便說一句，我在準備好的演講中引用的一些認可實際上是關於我們的報價相對於我們擁有的國際產品而言是一流的。也就是說，正如唐所提到的，我們不滿意。我認為，除了薪資服務之外，還有更多的擴大規模和成長的機會，合作夥伴關係是其中的重要組成部分。但毫無疑問，我們在國際上的表現和競爭非常非常好。

Fantastic sounds like good things ahead. Appreciate it.

聽起來棒極了，就像前方有美好的事情一樣。欣賞它。

Oh, you know what, let me just comment because you mentioned role in international. So I just thought I'd mention that really quickly, which is we are very excited about the down market and international role is one way that we're getting after that. And the pilot programs that we're running are teaching us a lot as we think about the down market and international.

哦，你知道嗎，讓我發表評論，因為你提到了在國際比賽中的角色。所以我想我應該很快就會提到這一點，我們對低迷市場感到非常興奮，而國際角色是我們追求這一目標的一種方式。當我們思考低端市場和國際市場時，我們正在運行的試點計畫教會了我們很多。

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。

Congrats on the solid results. Don, I just want to ask about average balances. I know we were expecting a little bit of a headwind from the payroll tax deferral. Maybe you can quantify that as part of the reason for the drop of balances down 2%? And then what's the go forward there we should expect? Is there a more of a headwind from the payroll tax deferral for balances and maybe expect a similar decline in the back half of this year?

祝賀取得了紮實的成果。唐，我只想問一下平均餘額。我知道我們預期工資稅延期會帶來一些阻力。也許您可以將其量化為餘額下降 2% 的部分原因？那我們該期待什麼？薪資稅延期是否會帶來更大的阻力，並且預計今年下半年也會出現類似的下降？

No, I think you are right to call out the payroll deferral -- payroll tax deferral. That definitely was behind the decline quarter-to-quarter. We don't -- that's now behind us, so that's not going to be there. So we are expecting 2% to 3% balanced growth throughout the balance of the year. So we think that's very positive.

不，我認為你提出工資遞延——工資稅遞延是正確的。這絕對是季度下滑的原因。我們不知道──那現在已經過去了，所以那也不會再出現了。因此，我們預計今年剩餘時間將達到 2% 至 3% 的平衡成長。所以我們認為這是非常積極的。

I think a big call out though on the whole CFI program is just the fact that since we spoke last 5-year and 10-year interest rates are down about 80 bps on both of those. And so I think that's a little bit of a headwind, and that's roughly the $20 million or so that we're calling down the flow number for the balance of the year. But still very optimistic about growth. Certainly, the reason that it's not growing as quickly perhaps as it did last year, we've certainly seen some moderation in wage growth. And we've talked about even though pays per control behaving as we expected, they are certainly lower -- pays per control growth is lower than it was in the back half and will be lower in the back half of this year than it was in the back half of last year. So -- and those would be the major influencers, if you will, to the full balance as we go forward to the back half.

我認為，就整個 CFI 計劃而言，一個重要的事實是，自我們上次演講以來，5 年期和 10 年期利率均下降了約 80 個基點。所以我認為這有點逆風，大約是 2000 萬美元左右，我們正在調低今年剩餘時間的流量數字。但對成長仍非常樂觀。當然，之所以沒有像去年那樣快速成長，我們確實看到了薪資成長的放緩。我們已經討論過，儘管每個控制的支付表現符合我們的預期，但它們肯定較低——每個控制的支付增長低於下半年，並且今年下半年將低於去年。去年下半年。所以——如果你願意的話，當我們進入後半部分時，這些將是主要的影響因素，以達到完全平衡。

Got it. And is that part of moving of the ES margins to the lower end of kind of the range you talked about. I think you talked about rates there. Just what was the surprise from 3 months ago on rates that maybe caused you to push the margins towards the lower end or where you think the lower end of the new margin range.

知道了。這是將 ES 利潤率移至您所說的範圍下限的一部分。我想你談到了那裡的利率。 3 個月前的利率令人驚訝的是什麼，可能導致您將利潤推向下限或您認為新利潤範圍的下限。

Yes, so you're right. I think the float certainly is a component of us guiding to the middle of our range for sure. So that's a component. We don't try to second guess the markets.

是的，所以你是對的。我認為浮動肯定是我們引導到範圍中間的一個組成部分。這就是一個組件。我們不會試圖對市場進行二次猜測。

We use yield curves that are out turning the market to estimate what we think our returns are going to be. So no real surprises other than seeing what's happening in the overall market, and then we're taking the forward yield curves and applying those to our balances, and that's where we land.

我們使用超越市場的殖利率曲線來估計我們認為的報酬率。因此，除了看看整個市場發生的情況之外，沒有什麼真正的驚喜，然後我們採用遠期殖利率曲線並將其應用到我們的餘額中，這就是我們的目標。

Our next question comes from Scott Wurtzel with Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Scott Wurtzel。

Maybe just wanted to start off on some trends that we've seen so far in the selling season. It seems like through 2Q, it was pretty positive on the bookings side. But maybe wondering how we've sort of tracked into 3Q? And then also what you've seen maybe from competitors, any changes in pricing go-to-market strategy and all that would be helpful.

也許只是想從我們迄今為止在銷售季節看到的一些趨勢開始。看起來到第二季度，預訂方面的情況相當積極。但也許想知道我們是如何追蹤第三季的？然後，您可能從競爭對手那裡看到的情況、定價上市策略的任何變化以及所有這些都會有所幫助。

Scott, we feel good about the demand environment overall at this point. I think companies are still hiring. We saw that this morning actually as well. And companies are still investing in their people, their talent, they're investing in HR I think there are a couple of things I'd highlight to you. The down market, definitely companies are continuing to hire, and they're continuing to buy. We have tremendous second quarter results. By the way, that business has been executing incredibly well really for many, many quarters.

斯科特，我們目前對整體需求環境感覺良好。我認為公司仍在招募。今天早上我們實際上也看到了這一點。公司仍在對其員工、人才、人力資源進行投資，我想有幾件事我想向你們強調。在低迷的市場中，公司肯定會繼續招聘，並且繼續購買。我們第二季的業績非常出色。順便說一句，該業務在許多很多季度以來都表現得非常好。

And that's our Run offering, but it's also all the things that are attached to Run, so I think insurance services, retirement services all of the down market is doing incredibly well to give you a little bit of a line of sight as it is the 31st of January. So we do actually have a tiny bit of visibility specifically to the down market. And you asked about trends into the third quarter. What I would offer to you is January looks good. I think we're actually on track to onboard something close to like 30,000 units in that business alone in the month of January. And so that's the size of some companies, if you will. So it's pretty incredible to see the execution in the down market.

這就是我們的 Run 產品，但它也是與 Run 相關的所有東西，所以我認為所有下游市場的保險服務、退休服務都做得非常好，為您提供了一點視線，因為它是1 月 31 日。因此，我們實際上對低端市場確實有一點了解。您詢問了第三季的趨勢。我想告訴你的是，一月看起來不錯。我認為，實際上，光是 1 月我們就有望在該業務中投放近 30,000 台設備。如果你願意的話，這就是一些公司的規模。因此，在低迷市場中看到執行情況真是令人難以置信。

We have solid pipelines really across the mid-market, well drop market, the mid-market did incredibly well. In the second quarter, from a competitive standpoint, I think we get a lot of questions around the competitive landscape. Has it shifted in the mid-market? What I would offer to you is it hasn't really shifted. It's been a competitive space for us for a long time. It's an area for us that we're executing very, very well. We have best-in-class products. We continue to take friction away from our clients, make it easy for our clients to engage with us. We know this based on our results and retention. We know this based on our results and record NPS.

我們在中端市場擁有堅實的管道，下降市場，中端市場做得非常好。在第二季度，從競爭的角度來看，我認為我們對競爭格局提出了許多問題。它是否已轉向中端市場？我想告訴你的是，它並沒有真正改變。長期以來，這對我們來說一直是一個競爭領域。對我們來說，這是一個執行得非常非常好的領域。我們擁有一流的產品。我們持續消除客戶的摩擦，讓客戶更容易與我們互動。我們根據我們的結果和保留率知道這一點。我們根據我們的結果和記錄 NPS 知道這一點。

We had good bookings in the mid-market. So I think the mid-market is solid and certainly not getting any easier for our clients to be employers in the mid-market. As it relates to the international space, I think I covered that already, so I won't touch much more on international, but a good Q2 on the heels of a good Q1. And then in our enterprise and upmarket space, this is an area that has normally, I think it's kind of the norm -- new normal on longer deal cycles that have more individuals involved in those cycles. So we're paying close attention to it. And certainly, all the things that are happening kind of across that space, but I would suggest to you that we feel relatively solid about our pipelines and our ability to bring that business in the back half.

我們在中端市場有很好的預訂。因此，我認為中端市場是穩固的，而且我們的客戶在中端市場成為雇主肯定不會變得更容易。由於它與國際空間相關，我想我已經涵蓋了這一點，所以我不會過多涉及國際空間，而是在良好的第一季度之後進行良好的第二季度。然後，在我們的企業和高端市場領域，這是一個通常存在的領域，我認為這是一種常態——較長交易週期的新常態，有更多的人參與這些週期。所以我們正在密切關注它。當然，所有正在發生的事情都發生在這個領域，但我建議你，我們對我們的管道以及我們在後半段將該業務帶來的能力感到相對穩固。

Great. That's helpful. And just a follow-up for Don. Just on the float income guidance, sort of noticed a pretty notable increase on your outlook for the client short portfolio. So just wondering if you could maybe give a little bit of color on sort of the change in geography on those investments for the balance of the year.

偉大的。這很有幫助。這只是唐的後續行動。就浮動收入指引而言，我們注意到您對客戶空頭投資組合的前景有相當顯著的成長。因此，我想知道您是否可以對今年剩餘時間這些投資的地理變化進行一些說明。

Yes. So maybe let me clarify that for you a little bit. So really, we haven't changed our investment strategy at all. What we have done is we've tweaked a little bit the way we were going to -- we were borrowing funds in the market day in and day out. So what you're seeing is we're actually entering the market a little bit early. So instead of borrowing everything we need to on a peak borrowing day. We've simply spread the borrowing out over 2, 3 days so that we can tap the market in a more -- in a smoother way, if you will.

是的。所以也許讓我為你澄清一下。事實上，我們根本沒有改變我們的投資策略。我們所做的是對我們的方式進行了一些調整——我們日復一日地在市場上借入資金。所以你看到的是我們實際上進入市場有點早了。因此，不要在藉貸高峰日借我們需要的一切。我們只是將借款分攤到 2、3 天，以便我們能夠以更順暢的方式（如果您願意的話）開拓市場。

And I think if you're looking at the average balances on that -- on the appendix sheet that's in the release, you'll notice that, that number has gone up in the short a fair bit, but that's the driver. So it's not a change in our investment strategy at all. It's just a change in a bit of a tweak in the way we're actually borrowing funds in the market when we need larger amounts of -- when we have larger amounts of borrowing.

我認為，如果您查看新聞稿中附錄表上的平均餘額，您會注意到，該數字在短期內上升了相當多，但這就是驅動因素。所以這根本不是我們投資策略的改變。這只是當我們需要大量資金時，當我們有大量借款時，我們實際在市場上借入資金的方式進行了一些調整。

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。

First question I had is on EBIT margin. Can you comment on what drove the outperformance versus your view for that to be down, I think, in 2Q? I'm curious if that was an aspect of timing within the year versus better-than-expected efficiency. And I think, Don, I heard you mentioned some Gen AI investments to come. Is that incremental spend versus the prior plan?

我的第一個問題是息稅前利潤率。您能否評論一下是什麼推動了第二季的優異表現，以及您認為第二季業績會下降的原因？我很好奇這是否是一年內時間安排與優於預期效率的一個面向。我想，唐，我聽說你提到了一些即將到來的人工智慧投資。增量支出與之前的計畫相比是嗎？

So yes, let me start, Bryan, let me start with the first part of your question. So -- there was a little bit of modest revenue outperformance in the quarter. So I think that was a contributor to the margin. And then we had some expenses we always have focused on expenses. There's a few things, a little bit of bad debt, a little bit of head count, et cetera, and perhaps a little bit of timing, but nothing significant to really call out as a contributor.

所以，是的，讓我開始，布萊恩，讓我從你問題的第一部分開始。因此，本季的營收表現略有改善。所以我認為這是利潤的一個貢獻者。然後我們有一些開支，我們總是把重點放在開支上。有一些事情，一點壞賬，一點員工人數等等，也許還有一點時間安排，但沒有什麼重要的事情可以真正作為貢獻者來呼籲。

In terms of the Gen AI spend, yes, we are spending a little bit more than we said we were going to last quarter. So we do have a bit of incremental spend. It's not a huge amount, but I know that lots of folks like to measure things in 10 bps. So we are calling it out. Not an incredible amount, but a little bit more than we had said in the prior quarter.

就新一代人工智慧支出而言，是的，我們的支出比我們上季度所說的要多一些。所以我們確實有一些增量支出。這不是一個很大的數字，但我知道很多人喜歡以 10 bps 來測量事物。所以我們大聲疾呼。數量雖然不是令人難以置信，但比我們上一季所說的要多一點。

Okay. And then just, I guess, a follow-up then on Gen AI and ADP assist here. Is that a feature you're able to monetize directly or more so kind of an enhancement you're offering for free to drive the CSAT scores higher? And I guess understanding you're leaning into these developments, do you kind of view -- you think about the monetization of Gen AI products. Is this a near-term dynamic or more so kind of feature and product differentiation that's a longer-term modernization dynamic?

好的。然後，我想，接下來是 Gen AI 和 ADP 協助的後續行動。這是您可以直接獲利的功能，還是您免費提供的增強功能，以提高 CSAT 分數？我想您正在傾向於這些發展，您是否會考慮 Gen AI 產品的貨幣化。這是近期的動態還是更長期的現代化動態的功能和產品差異化？

So Brian, ADP Assist is really the overarching, call it, brand, if you will, that we're leveraging to talk through all the things that we're putting into our products to make things easier. The way that I think about it is it's really just the next phase of digital transformation for ADP using new tools and technology.

所以布萊恩，ADP Assist 確實是一個首要的品牌，如果你願意的話，我們正在利用它來討論我們在產品中放入的所有內容，以使事情變得更容易。我的想法是，這實際上只是 ADP 使用新工具和技術進行數位轉型的下一階段。

So said differently, our intention is not to charge to make things easier for our clients to do business. That is our commitment to our clients, always has been is to make it as easy as possible to process payroll to have accurate payrolls. And so it's not a monetization effort as it stands. It's really about just leveraging the new technology to step change the digital transformation that we've had underway candidly, for many, many decades since the dawn of the computing era. So -- that's kind of how we're thinking about ADP Assist in terms of monetization in general.

換句話說，我們的目的並不是為了讓客戶更容易開展業務而收費。這是我們對客戶的承諾，始終是讓薪資處理變得盡可能簡單，以獲得準確的薪資。因此，這並不是目前的貨幣化努力。這實際上是利用新技術來逐步改變自運算時代誕生以來幾十年來我們一直在坦誠進行的數位轉型。這就是我們在貨幣化方面對 ADP Assist 的整體看法。

Do I believe there's monetization as it relates to Gen AI? Of course, I think it's more about the dollar long term, right? So I think about it, the dollars that we're putting in today will yield multiple dollars for us in years to come. So there will be distinct monetization opportunities as we create new products into the market as we think about various things of that nature, perhaps features and functionality. There will also be gains in sales and retention that will lead, in my mind to investments that are proven today in Gen AI to drive incremental bookings and retention over the long term. So I think it's about putting a dollar in today with the belief that it will yield many dollars of margin to come, if you will, as well as bookings, et cetera.

我是否相信與 Gen AI 相關的貨幣化？當然，我認為這更多的是關於美元的長期走勢，對吧？所以我想，我們今天投入的美元將在未來幾年為我們帶來多倍的收益。因此，當我們在市場上創造新產品時，當我們考慮這種性質的各種事物（也許是特性和功能）時，將會有明顯的貨幣化機會。在我看來，銷售和保留率也會提高，這將導致今天在 Gen AI 中得到證明的投資能夠推動長期增量預訂和保留率。所以我認為今天投入一美元，並相信如果你願意的話，它會帶來很多美元的利潤，以及預訂等等。

Our next question comes from Samad Samana with Jefferies.

我們的下一個問題來自 Jefferies 的 Samad Samana。

Maybe on the PEO business, I was curious, I know you guys called out some of the bigger verticals inside of the PEO business and that there's maybe some more softness there than you had expected in technology and professional services. Any change in the exposure other than side of the PEO business or within like the big verticals? Are you guys seeing any change in the trends that you saw maybe over the last couple of quarters?

也許在 PEO 業務上，我很好奇，我知道你們提到了 PEO 業務內部的一些更大的垂直領域，而且在技術和專業服務方面可能比你預期的更加軟弱。除 PEO 業務之外或大型垂直行業內的風險敞口是否有任何變化？你們看到過去幾季的趨勢有什麼變化嗎？

The trend in specifically, professional services have stabilized. And so I think Danny made the comment earlier, it's no longer contributing to the deceleration. So it used to the professional services cohort used to contribute to the acceleration of pays per control than we found ourselves where it was contributing to a deceleration and it's largely stabilized at this time.

具體來說，專業服務的趨勢已經穩定。所以我認為丹尼早些時候發表了評論，它不再有助於減速。因此，它過去用於促進每個控制的薪酬加速的專業服務群體，而不是我們發現它導致減速的地方，目前基本上穩定了。

Got you. And just as you think about the pricing environment, I know that we're still not at when the company does the annual price increases. But as you think about maybe for new deals or for new customers that are onboarding any change in the kind of price pressure or competitive nature of what your competitors are offering in terms of discounts or what ADP is having to offer? And just as we look ahead of price increases, how are you thinking about this year's price increase?

明白你了。就像您考慮定價環境一樣，我知道我們還沒有到公司每年提價的時候。但是，當您考慮新交易或新客戶加入時，您的競爭對手提供的折扣或 ADP 必須提供的產品的價格壓力或競爭性質是否會發生任何變化？正如我們展望價格上漲一樣，您如何看待今年的價格上漲？

Yes. We're not really seeing any changes, Samad, in the price environment, the competitive environment. We think we're priced appropriately. And we've always acknowledged that we're a little bit more premium to others, but we're happy with that because we think we offer a better service and stability, et cetera. So no real changes. You're right. It is a little bit of really the budget cycle kicks off here in the next 6, 8 weeks or so, and we'll certainly be looking at the pricing increases for next year and weighing all the regular factors, what's inflation being.

是的。薩馬德，我們在價格環境、競爭環境方面並沒有真正看到任何變化。我們認為我們的定價合適。我們一直承認我們比其他人更優質，但我們對此感到滿意，因為我們認為我們提供更好的服務和穩定性等等。所以沒有真正的改變。你說得對。預算週期在接下來的 6、8 週左右開始，我們肯定會關註明年的價格上漲，並權衡所有常規因素，例如通貨膨脹。

We thought our price increases were very well received last year. We thought they were in line -- so we'll keep that in mind. But as always, we're always interested in the long-term value prop with our clients and being competitive in the market. So we're always measured, I believe, when we think about the price increases that we do hand out to our clients.

我們認為去年我們的漲價很受歡迎。我們認為他們在排隊——所以我們會記住這一點。但一如既往，我們始終對客戶的長期價值支撐和市場競爭力感興趣。因此，我相信，當我們考慮向客戶提供的價格上漲時，我們總是會進行衡量。

Our next question comes from Kevin McVeigh with UBS.

我們的下一個問題來自瑞銀集團的凱文·麥克維。

Great. Maria, I think you talked to kind of implementations a little bit. Can you remind us maybe what percentage of the revenue is done internally on implementations today? And if that's a shift philosophically what that can be over the course it's on. If I heard the remark, right? Maybe I picked it up wrong, but just any incremental thoughts on that?

偉大的。瑪麗亞，我想你談到了一些實現。您能否提醒我們，今天的收入中有多少百分比是內部實現的？如果這是一種哲學上的轉變，那麼在整個過程中會發生什麼。如果我聽到了這句話，對嗎？也許我聽錯了，但對此有任何增量想法嗎？

Yes, maybe, Kevin, you're a bit soft, by the way, but you're a little bit hard to hear, but I think the question was what kind of revenue we derive from implementation and...

是的，也許，凱文，順便說一句，你有點軟弱，但你有點難以聽清，但我認為問題是我們從實施中獲得了什麼樣的收入......

Yes.

是的。

Yes. So it's not a substantial sub-10% of our overall revenue comes from setup we internally call setup fees. So it's not a substantial amount.

是的。因此，我們總收入中不到 10% 的大部分都來自設定費，我們內部稱之為設定費。所以這並不是一個很大的金額。

And then do you see that down over time? Does that become less if you outsource that? And is there any way to think about the margin impact from that initiative?

然後你會發現隨著時間的推移，這種情況會下降嗎？如果你外包的話，這個會變得更少嗎？有沒有什麼方法可以考慮該措施對利潤率的影響？

Well, I mean you also -- so no, I don't think there's a big opportunity there. We certainly have had conversations. We certainly have lots of folks who would like us to outsource our implementation because they think it's a revenue stream for them. We like to have that control over the client from sale through to go live in service, not to say that we won't work with third parties to help us from time to time, which we do.

嗯，我的意思是你也 - 所以不，我認為那裡沒有很大的機會。我們當然進行過交談。當然，有很多人希望我們外包我們的實施，因為他們認為這對他們來說是一個收入來源。我們希望對客戶進行從銷售到上線服務的控制，並不是說我們不會不時與第三方合作來幫助我們，而我們確實這樣做了。

But it's really not that large a factor. Certainly, there's some money there to be had, but it's not that large a factor in the overall scheme of things. There's also some interesting accounting, of course, around implementation and set-up fees and the deferral over the terms of the contract. So once again, it would take a lot of changes to do anything, make any changes of the bottom-line financials in the near term.

但這其實並不是一個很大的因素。當然，有一些錢可以得到，但它在整體計劃中並不是那麼重要的因素。當然，還有一些有趣的會計，涉及實施和設置費用以及合約條款的延期。因此，短期內要做任何事情、對財務底線做出任何改變都需要做出很多改變。

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。

Good results here. Just wanted to dig in on your prior comments. I know a lot of people asked on PEO and the healthy activity there and the confidence of the acceleration. Is ADP doing anything differently? Or is industry demand changing? I understand it's not -- doesn't sound like if there's a cost or pricing change there. So I just want to make sure I understood that.

這裡有好的結果。只是想深入了解您之前的評論。我知道很多人問 PEO 以及那裡的健康活動以及加速的信心。 ADP 有什麼不同的做法嗎？或者產業需求正在改變？我知道這不是——聽起來好像沒有成本或價格變化。所以我只是想確保我理解這一點。

Thank you. I'm happy to talk about PEO bookings. I think -- as mentioned in the prepared remarks, we're very pleased with our PEO bookings. This really is the fourth quarter that we've seen positive PEO bookings momentum. And the Q2 specifically exceeded our expectations -- most of the pressure that we felt in the PEO has been a byproduct of kind of the pressure on that pays per control and having to overcome that, which is why the focus on bookings has been so paramount for us. And certainly, we delivered that in the second quarter.

謝謝。我很高興談論 PEO 預訂。我認為 - 正如準備好的評論中所提到的，我們對 PEO 的預訂感到非常滿意。這確實是我們看到 PEO 預訂勢頭積極的第四季度。第二季特別超出了我們的預期——我們在 PEO 中感受到的大部分壓力都是按控制付費的壓力的副產品，並且必須克服這一壓力，這就是為什麼對預訂的關注如此重要為了我們。當然，我們在第二季度實現了這一目標。

In terms of from a demand perspective, I speak about the PEO all the time, as you know. I think the demand continues to be incredibly strong. I wouldn't suggest that there's anything unnatural that we are doing outside of a tremendous amount of focus across the enterprise to ensure that we're executing on the PEO bookings side, but in terms of anything unnatural or demand changing. I think the value proposition, as I always say, it's stronger than it's ever been. I think clients in that space are looking toward ADP to help them from a PEO value proposition, so everything from payroll to benefits to navigating the complexity of being a business and having the ability to execute on our employment relationships.

從需求的角度來看，我一直在談論 PEO，如你所知。我認為需求仍然非常強勁。我不建議我們在整個企業範圍內投入大量精力來確保我們在 PEO 預訂方面執行任務之外，做任何不自然的事情，但就任何不自然的事情或需求變化而言。正如我常說的，我認為價值主張比以往任何時候都更強大。我認為該領域的客戶希望 ADP 能夠幫助他們實現 PEO 價值主張，從薪資到福利，再到應對企業的複雜性以及執行僱傭關係的能力。

So I would say the value proposition is as strong as it's ever been. I think it remains strong. The demand is there. The organization is focused on PEO bookings as an execution lever for us, and I'm pleased to see that we did just that in Q2, and we really had -- this marks the fourth quarter of positive bookings momentum from the PEO.

所以我想說，價值主張一如既往地強大。我認為它仍然很強勁。需求就在那裡。該組織專注於將 PEO 預訂作為我們的執行槓桿，我很高興看到我們在第二季度做到了這一點，而且我們確實做到了——這標誌著 PEO 第四季度的積極預訂勢頭。

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

謝謝。我們的下一個問題來自美國銀行的 Jason Kupferberg。

This is Caroline, I'm on for Jason. Thanks for taking our question. So pays per control growth has been 2% quarterly through the first half. But the guide for full year '24 is still 1% to 2%. So what are the drivers of the second half deceleration? Or do you think that the high end has become more likely?

我是卡洛琳，我是傑森。感謝您提出我們的問題。因此，截至上半年，按控制付費的季度成長率為 2%。但 24 年全年的指導值仍為 1% 至 2%。那麼下半年減速的驅動因素有哪些呢？或者說你認為高端化的可能性比較大了？

Caroline, thanks for the question. We said we would go to -- we'd be 1% to 2% for the year, and we certainly have that 1% to 2% range still in the back half. we're not really anticipating any slowdown in pays per control, but we certainly have it built in. So perhaps we're a little bit conservative there.

卡羅琳，謝謝你的提問。我們說過，今年我們會達到 1% 到 2% 的水平，而且下半年我們肯定還會保持 1% 到 2% 的水平。我們並沒有真正預期每個控制項的付費會出現任何放緩，但我們確實內建了它。所以也許我們在這方面有點保守。

But as we sit here today, demand -- the employment demand continues to be robust, although still declining somewhat. But I think we're confident that in the back half, we're going to be declining a little bit, but still coming in on that 1% to 2% range for the year. Not much -- not really much more to say there, other than employment demand, labor markets continue to be maybe a bit softer than they were. But as we saw this morning at our NER report, hirings still out there, still good growth. So not a lot of extra color. I don't think that around pays per control.

但當我們今天坐在這裡時，需求——就業需求仍然強勁，儘管仍然有所下降。但我認為我們有信心在下半年我們會略有下降，但今年仍將保持在 1% 至 2% 的範圍內。沒什麼好說的，除了就業需求之外，勞動市場可能仍然比以前更加疲軟。但正如我們今天早上在 NER 報告中看到的那樣，招聘仍在繼續，成長仍然良好。所以沒有太多額外的顏色。我不認為每個控制都付費。

Our next question comes from Dan Dolev with Mizuho.

我們的下一個問題來自瑞穗的丹‧多列夫。

Great results here. Just a strategic question. Obviously, if you look over the next 12 to 18 months, interest rates are coming down, there is a big debate out there on the ability to offset some of those headwinds in terms of revenue. Can you talk about maybe some idiosyncratic initiatives that you could do to offset the headwind from declining interest rates.

這裡的結果很好。只是一個戰略問題。顯然，如果你展望未來 12 到 18 個月，利率將會下降，關於是否有能力抵消收入方面的一些不利因素存在很大的爭論。您能否談談您可以採取一些特殊舉措來抵消利率下降的不利影響。

I think that's really a macro question, I guess. I guess the macro answer to that would be that if interest rates start to decline, we'll see an offsetting increase just in economic activity. And if we see that increase in economic activity, we should see revenue go up, we should see bookings opportunities go up, et cetera. So I think that if interest rates come down and I know there's lots of debates whether it's 2 cuts or 4 cuts, et cetera, who knows?

我認為這確實是一個宏觀問題。我想對此的宏觀答案是，如果利率開始下降，我們將看到經濟活動的抵銷性成長。如果我們看到經濟活動增加，我們應該會看到收入增加，我們應該看到預訂機會增加等等。所以我認為，如果利率下降，而且我知道會有很多爭論，是降息 2 次還是降息 4 次等等，誰知道呢？

But if they do come down, we should certainly avoid the recession, nobody's asked about a recession on the call today, so thank you. I think the consensus is that there's not going to be a recession. So just certainly, any of the polls suggest that economy is healthy with 3.3% GDP growth in the last report. So if rates come down, the economy should remain healthy and a healthy economy should help continue to contribute to our growth.

但如果它們確實下降，我們當然應該避免經濟衰退，今天的電話會議沒有人問及經濟衰退，所以謝謝。我認為共識是不會出現經濟衰退。因此，可以肯定的是，任何民意調查都顯示經濟健康，上一份報告的 GDP 成長率為 3.3%。因此，如果利率下降，經濟應該保持健康，而健康的經濟應該有助於繼續為我們的成長做出貢獻。

Dan, I'll just add also, our model involves reinvesting further out on the yield curve. And as you know, we're still reinvesting at higher rates than what's embedded in the securities that are rolling off. So even if we do start to see short-term interest rates fall next year, which is obviously consensus at this point, a lot of that will be offset by the reinvestments that we have further out on the yield curve. And so it's too early to be talking specifically about the interest rate outlook for next year, but we would just recommend you keep that in mind.

丹，我還要補充一點，我們的模型涉及在殖利率曲線上進一步進行再投資。如您所知，我們的再投資利率仍然高於滾存證券中的利率。因此，即使我們明年確實開始看到短期利率下降（這顯然是目前的共識），但其中很大一部分將被我們在殖利率曲線上進一步進行的再投資所抵消。因此，現在具體談論明年的利率前景還為時過早，但我們建議您牢記這一點。

Yes, that's fair. I think if you look at our reinvestments, our current reinvestments are still up 4%, which is higher than our average yield today. So there still are opportunities. Our float is expected to continue to grow over the next 12 to 24 months. Certainly, it's going to grow more slowly than we would have expected at the end of last quarter. But there's still upside from flow, which is perhaps not as much upside.

是的，這很公平。我認為，如果你看看我們的再投資，我們目前的再投資仍然成長了 4%，這高於我們今天的平均收益率。所以機會還是有的。我們的流通量預計將在未來 12 至 24 個月內繼續成長。當然，它的成長速度將比我們上季末的預期要慢。但流量仍然有上行空間，但可能沒有那麼大。

Our next question comes from Pete Christiansen with Citi.

我們的下一個問題來自花旗銀行的 Pete Christiansen。

Two questions. Now that we fully lap ERTC, I'm just curious if you've noticed any changes in client demand or competitive tactics, particularly in the down market.

兩個問題。現在我們已經完全採用 ERTC，我只是好奇您是否注意到客戶需求或競爭策略有任何變化，特別是在低端市場。

Yes. Pete, the ERTC, as you know, and I think what you're referencing is the new deadline that was pulled forward 5 quarters actually. So the deadline actually, as it stands is potentially today. I think we're still waiting for the final kind of execution, if you will, of that new deadline. But arguably, we're having to execute on behalf of our clients with today in mind. And so there's a tremendous amount of volume that we are pushing through on behalf of our clients.

是的。 Pete，ERTC，如您所知，我認為您所指的是實際上提前了 5 個季度的新截止日期。因此，目前的最後期限實際上可能是今天。我認為我們仍在等待新的最後期限的最終執行（如果你願意的話）。但可以說，我們必須代表我們的客戶執行今天的任務。因此，我們正在代表客戶推動大量的工作量。

And it has put pressure into the system, which is hard to watch and witness by the way, as it relates to the very clients that are supposed to be helped by this and the challenges that they're facing, trying to navigate it. So we're doing everything we can in our power to help and process these claims. In terms of financial impact for us, as it relates to ERTC, it isn't a financial impact to us. I think it's very de minimis as it relates to our overall revenue as it relates to our overall incremental. We really -- from a standpoint of what we're looking towards is about supporting our clients is I think some of our competitors have used it more as a business and a revenue than us as it relates to how we're thinking about it. But undoubtedly, the advancement of this deadline til today has not been ideal for really anyone engaged in it.

它給系統帶來了壓力，順便說一句，這是很難觀察和見證的，因為它關係到那些本應受到幫助的客戶以及他們面臨的挑戰，試圖駕馭它。因此，我們正在盡我們所能來幫助和處理這些索賠。就對我們的財務影響而言，因為它與 ERTC 相關，所以它對我們沒有財務影響。我認為這是非常微不足道的，因為它關係到我們的整體收入，也關係到我們的整體增量。我們確實——從我們尋求支援客戶的角度來看，我認為我們的一些競爭對手比我們更多地將其用作業務和收入，因為這與我們的思考方式有關。但毫無疑問，這個截止日期提前到今天對於真正參與其中的人來說並不理想。

That's helpful. And then I'm curious, the combination of HCM and payments functionality. It's certainly been a theme, EWA is obviously a big, big portion of that and that cross-border. Do you see opportunities to increase penetration there to add more capabilities either through partnership, M&A further into payments and I'm thinking perhaps even like disbursements, all those sorts of things.

這很有幫助。然後我很好奇 HCM 和支付功能的結合。這當然是一個主題，EWA 顯然是其中很大一部分，而且是跨國的。您是否看到了提高滲透率的機會，透過合作夥伴關係、併購進一步進入支付領域來增加更多功能，我認為甚至可能像支付等所有這些事情。

From a strategic standpoint, Pete, what I would offer is continuing to solve for our clients and employees and how they engage with us. If you imagine across ADP, we paid 41 million wage earners in the U.S. that's [$25 million.] I think last time we talked about our widely offering what we disclosed was that we had 1.5 cardholders or something like that. So you just kind of give you the opportunity, scale of it.

從策略的角度來看，皮特，我會繼續解決我們的客戶和員工以及他們如何與我們互動的問題。如果你想像整個 ADP，我們向美國 4100 萬工薪階層支付了 [2500 萬美元]。我想上次我們談論我們廣泛提供的服務時我們披露的是我們有 1.5 個持卡人或類似的東西。所以你只是給了你機會，機會的規模。

We believe there's tremendous opportunity to increase how we're engaging with our clients, whether that's through the likes of Wisely, it's through the likes of EWA as you're suggesting or it's any other type of payments and things that we can do to make it easier for our clients and employees to move through the world of work, right? And so the way I think about it and the partnerships that we're actively out there in the market talking to and thinking about are anywhere we can add value in our clients' and employee life and flow. So as they move through their day and they clock in through ADP's mobile app, which by the way, we have 10 million users that are actively using our ADP mobile apps. So as they're engaging with ADP, are there opportunities for us to insert value there, whether that's things like EWA, it's things like payments, it's things like financial and wellness apps like the companion app we have through Wisely. These are all top of mind for us as we go through our strategic discussions and as we think about partnerships in the future for ADP.

我們相信，有巨大的機會來增加我們與客戶的互動方式，無論是透過 Wisely 之類的方式，還是透過您建議的 EWA 之類的方式，或者是任何其他類型的付款方式以及我們可以採取的措施我們的客戶和員工在工作中更容易移動，對吧？因此，我的想法以及我們在市場上積極討論和思考的合作夥伴關係是我們可以為客戶和員工的生活和流程增加價值的任何地方。因此，當他們度過一天時，他們會透過 ADP 的行動應用程式打卡，順便說一句，我們有 1000 萬用戶正在積極使用我們的 ADP 行動應用程式。因此，當他們與ADP 合作時，我們是否有機會在那裡插入價值，無論是EWA 之類的東西，支付之類的東西，還是金融和健康應用程式（例如我們透過Wisely 提供的配套應用程式）之類的東西。當我們進行策略討論以及考慮 ADP 未來的合作夥伴關係時，這些都是我們首要考慮的問題。

We have time for one last question, and that question comes from Ashish Sabadra with RBC Capital Markets.

我們有時間回答最後一個問題，該問題來自加拿大皇家銀行資本市場的阿什什·薩巴德拉 (Ashish Sabadra)。

So just a multipart question on PE and following up on some of the commentary earlier on solid bookings and moderating PPC -- sorry, paper control headwinds -- as we look at the WSE growth, we have continued to see a sequential improvement there better than what we saw last year. And just given the commentary, is it fair for us to assume that we should continue to see that improve as we go through the year.

因此，只是一個關於PE 的多部分問題，並跟進之前關於穩定預訂和緩和PPC 的一些評論——抱歉，紙張控制逆風——當我們觀察華爾街證券交易所的增長時，我們繼續看到那裡的連續改善比我們去年所看到的。鑑於評論，我們可以公平地假設我們應該在這一年中繼續看到這種情況的改善。

And then on revenue per WSE, I was wondering if you could comment on looks like pricing trends are positive, but if you could comment on any other puts and takes, participation, anything else that could help drive better revenue per worksite employee.

然後關於每個WSE 的收入，我想知道您是否可以評論看起來定價趨勢是積極的，但您是否可以評論任何其他看跌期權、參與度以及其他任何有助於提高每個工作場所員工收入的因素。

So the answer to your question is yes. We do expect that the bookings contribution, coupled with a bit of stability on the pays per control side, coupled with retention getting more favorable in the back half. All of those things should lead to the reacceleration that Don mentioned earlier that we've been pointing to in the back half I think in terms of other componentry within the PEO, you mentioned a few of them.

所以你的問題的答案是肯定的。我們確實預期預訂量的貢獻，加上每個控制方的薪酬的穩定性，以及後半段的保留率會變得更加有利。所有這些事情都應該導致唐之前提到的重新加速，我們在後半部分一直指出，我認為就 PEO 內的其他組成部分而言，您提到了其中的一些。

There's payroll per works unemployed, there's workers' compensation, there's state unemployment -- some of these things are things that we're still waiting to really see the outcomes. I'll give you an example. One of those is state unemployment in terms of, obviously, we sit here today forecasting what that looks like. Most of those rates are issued throughout this quarter. And so while we have some line of sight, in the end, we don't know entirely what the state unemployment outcome. We do expect that it creates a little bit of a rates are going down year-on-year again this year. But again, only time will tell. Sometimes the states, as an example, make very strange decisions that aren't always in line with what's happening from a broader labor and unemployment perspective. So all that to say, I think -- I don't know that I could sit here today and give you any componentry that seems strange or out of the norm. I think they are all things we're watching as we look toward the reacceleration of the PEO in the back half.

有失業工人的薪水、工人的補償、州失業——其中一些事情我們仍在等待真正看到結果。我給你舉個例子。其中之一是州失業率，顯然，我們今天坐在這裡預測情況。其中大部分利率是在本季發布的。因此，雖然我們有一定的視野，但最終我們並不完全知道該州的失業結果如何。我們確實預計，今年的利率將再次年減。但同樣，只有時間才能證明一切。例如，有時各州會做出非常奇怪的決定，這些決定並不總是符合更廣泛的勞動力和失業角度所發生的情況。綜上所述，我想——我不知道我今天是否可以坐在這裡為您提供任何看起來奇怪或不符合規範的組件。我認為，當我們期待 PEO 在後半段重新加速時，這些都是我們正在觀察的。

Thank you. I'd like to turn the call back over to Maria Black for any closing remarks.

謝謝。我想將電話轉回給瑪麗亞·布萊克，讓其結束語。

Yes. So really quickly, I think I'll end with how I ended my prepared remarks, which is a huge shout out to all of the associates and the entire ecosystem across ADP. So that's ADP associates, partners, channels all of the stakeholders that really contributed to what was a good, good solid Q2 but also a good solid first half. I'm really excited about the back half and what we'll accomplish not just in fiscal '24, but moreover in calendar 2024.

是的。很快，我想我會以我準備好的發言結束，這是對所有同事和整個 ADP 生態系統的強烈呼聲。因此，ADP 員工、合作夥伴、所有利益相關者都為第二季度的良好表現以及上半年的良好表現做出了真正的貢獻。我對下半年以及我們不僅在 24 財年，而且在 2024 年將實現的目標感到非常興奮。

It's a time and it's an exciting year for ADP. This year is the year that we actually round our 75th anniversary. And when I think about who this company is over the last 7 decades and 75 years? I can't see -- I can't wait to see what we're going to do in the next 75. So look forward to sharing in that celebration with all of you as we head into 2024 together. Thank you.

對 ADP 來說，這是令人興奮的一年。今年是我們真正迎來成立75週年的一年。當我思考這家公司在過去 7 年和 75 年裡是誰？我看不到——我迫不及待地想看看我們在接下來的 75 年裡會做什麼。因此，當我們一起邁入 2024 年時，期待與大家分享這一慶祝活動。謝謝。

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。