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.我是Michelle，本次會議的接線生。現在，我謹代表ADP公司歡迎各位參加2024財年第二季財報電話會議。請注意，本次會議正在錄音。在發言結束後，我們將進行問答環節，屆時會給予相關說明。

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

現在我將會議交給投資者關係副總裁丹尼爾·侯賽因先生。請開始吧。

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Michelle，歡迎各位參加ADP 2024財年第二季財報電話會議。今天出席會議的有我們的總裁兼執行長Maria Black和財務長Don McGuire。今天早些時候，我們發布了本季業績。您可以在美國證券交易委員會（SEC）網站和我們的投資者關係網站investors.adp.com上查閱我們的業績報告，該網站也提供本次電話會議的投資者簡報。

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.

在本次電話會議中，我們將提及非公認會計準則（非GAAP）財務指標。我們認為這些指標對投資者有用，因為它們剔除了某些項目的影響。這些項目的說明以及非GAAP指標與其最接近的GAAP指標的調節表，請參閱我們的獲利報告。今天的電話會議還將包含一些前瞻性陳述，這些陳述涉及未來事件，並存在一定的風險。我們建議您查閱我們向美國證券交易委員會（SEC）提交的文件，以了解可能導致實際結果與我們目前預期有重大差異的因素。現在我將把發言權交給瑪麗亞。

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，也謝謝各位的到來。今天上午，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。我將先回顧本季的財務亮點，然後再介紹我們在各項策略重點方面的進展。第二季度，我們的雇主服務新業務預訂表現穩健，創下第二季新紀錄，並使我們有望實現全年目標。

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.

我們的小型企業業務組合成長尤為強勁，中階市場和國際業務也實現了健康成長。鑑於人力資本管理 (HCM) 需求穩定，且季度末新業務儲備充足，我們對即將到來的重要銷售季充滿期待。雇主服務客戶留存率在第二季表現強勁。儘管與上年同期相比略有下降，但由於我們持續受益於良好的整體商業環境和極高的客戶滿意度，我們再次超越了預期。第二季度，我們雇主服務的按控制付費成長率維持在 2%。整體勞動市場依然堅挺，我們的客戶繼續以適度的速度增加員工，這導致按控制付費成長率的成長逐漸放緩。最後，我們專業雇主組織 (PEO) 業務第二季的營收成長為 3%，符合預期，我們非常高興看到 PEO 新業務預訂量超出預期，表現強勁。基於持續健康的業務活動水平，我們對 PEO 預訂勢頭感到滿意，並期待在本財年下半年看到 PEO 業務逐步加速成長。

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.

接下來是更廣泛的更新。第二季度，我們推出了全新的品牌廣告宣傳活動「引領未來」。該活動強調了工作世界瞬息萬變，有時緩慢，有時突如其來，值得信賴的商業解決方案也必須隨之發展。這個主題與我們的策略重點相契合，即讓客戶充分利用我們領先的技術、專業知識和規模優勢。

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，我們繼續推進首要策略目標—引領一流的人力資本管理 (HCM) 技術。其中一項關鍵舉措是推出 ADP Assist，這是一款由 Gen AI 驅動的跨平台解決方案，能夠以簡單易懂的語言主動提供可操作的洞察，從而提升人力資源效率，輔助決策，並簡化客戶及其員工的日常工作。 ADP Assist 可與 ADP 的多個平台產品無縫整合。它採用直覺的對話式介面，提供涵蓋人力資源各個方面的寶貴且具有上下文關聯的洞察。例如，除了上季度我們向您介紹的自然語言報告功能外，第二季度我們還將自然語言搜尋功能整合到 Run 平台中，這使我們能夠理解搜尋字詞背後的意圖，並利用 Gen AI 挖掘 ADP 深厚的知識庫，從而提供易於使用且高效的內容。

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 也能幫助客戶驗證薪資，並解決員工在人力資源、薪資、時間和福利方面遇到的常見挑戰。它基於業內規模最大、最深入的人力資本管理 (HCM) 數據集和我們深厚的知識庫，提供高度可靠且切實可行的洞察，幫助客戶做出更明智的決策。我們對所有主要解決方案的未來發展路線圖充滿信心，並期望它能幫助我們鞏固在市場上持續獲得的認可。僅在第二季度，我們就榮幸地獲得了三家主要行業分析機構的認可，在產品領導力方面名列前茅。 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 在所有市場的薪資服務供應商評估工具中，將 ADP 評為領導者。 Ventana Research 在其北美全球薪資管理採購指南中，將我們評為卓越領導者，因為我們在產品和客戶體驗方面表現最佳，並滿足了所有要求。

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。上個季度我們宣布，我們正透過客服輔助技術，開始為我們的員工配備人工智慧（Gen AI）功能。第二季度，我們將通話摘要功能推廣到更多客服人員，並開始看到效率提升，處理時間縮短，服務品質提高。我們的全球客服人員每年要處理數百萬通電話，因此我們非常期待測試各種方法來優化這些客戶互動。

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.

我們的第三項策略重點是利用我們的全球規模優勢惠及客戶，我們將繼續發揮這項優勢。第二季度，我們宣布與全球企業對企業支付公司 Convera 達成策略合作，旨在透過整合 Convera 的支付解決方案和我們的全球薪資管理專長，幫助我們的跨國客戶管理全球薪資和跨國支付的複雜性。我們將 Convera 的支付解決方案與我們自身的全球薪資管理專長相結合，從而最大限度地減少客戶訪問各種銀行平台的需求，並提高支付的準確性、合規性和安全性，進而提升客戶體驗。此外，我們也宣布推出 ADP 退休信託服務，以支持我們不斷成長的退休服務業務。成立我們自己的信託服務機構，彰顯了我們的規模優勢和對退休客戶的承諾，使我們與金融業的領導者並駕齊驅，並領先於依賴第三方服務的人力資本管理 (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至關重要，它能確保數據留在ADP值得信賴的生態系統內，並從長遠來看為ADP和我們的客戶帶來成本效益。我們的規模也使我們有機會以創新方式與其他領先的技術供應商合作，我們將繼續拓展這些合作關係，為我們的銷售實施和服務團隊提供客戶專屬洞察，以便快速應對市場變化，推動更個性化的互動，並深化我們與客戶的整體關係。整體而言，我們第二季的財務業績表現強勁。關於我們的關鍵策略重點，我要感謝我們的同事們，他們始終致力於為客戶提供卓越的產品和優質的服務，尤其是在目前這個一年中最繁忙的年終工作高峰期。

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.

我很自豪地宣布，他們的努力幫助我們在第二季度實現了淨推薦值（NPS）的歷史最高水準。再次感謝你們為ADP和我們的客戶所做的一切。現在，我把麥克風交給唐。

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.

謝謝瑪麗亞，大家早安。我將詳細介紹我們本季的業績以及更新後的2024財年展望。整體而言，我們第二季表現強勁，合併營收成長放緩，符合預期，調整後的息稅前利潤率略高於預期。然而，自從我們上次發布全年展望以來，利率環境發生了變化，因此我們對展望進行了一些微調，我將在下文中詳細說明。

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.

首先，我來談談雇主服務（ES）業務。 ES業務收入按報告基準成長8%，以有機成長（以固定匯率計算）成長7%，略高於我們的預期。正如Maria所說，我們的ES新業務預訂量持續成長，第二季預訂量創下歷史新高。本季度，我們的小型企業業務組合和國際業務貢獻了顯著的成長。鑑於穩定的人力資本管理（HCM）需求環境和健康的業務儲備，我們預計全年新業務預訂量將增加4%至7%。如前所述，第二季ES客戶留存率較上年同期略有下降，但仍超出預期。鑑於上半年留存率表現優異，我們略微上調了全年留存率預期。我們現在預計全年留存率將下降40至60個基點，比先前的預測高出10個基點。第二季ES的單次控制付費成長2%，符合預期，我們維持全年1%至2%的成長預期。第二季客戶資金利息收入成長符合預期，儘管我們上季度討論過客戶平均資金餘額略有下降，但平均收益率的提高足以抵消這一影響。然而，鑑於自上次更新以來利率環境的變化，我們下調了全年客戶資金利息收入預期。

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2024財年客戶資金利息收入為9.85億美元至9.95億美元，客戶資金擴展投資策略的淨影響預計為8.35億美元至8.45億美元，中位數約為2000萬美元。整體而言，我們對2024財年擴展投資策略收入成長的預測維持在7%至8%不變。第二季度，我們的擴展投資策略利潤率提高了170個基點，這主要得益於營運槓桿和客戶資金利息收入成長的貢獻。但考慮到客戶資金利息收入預測下調以及預期人工智慧相關支出略有增加的影響，我們正在調整2024財年擴展投資策略利潤率的預期，目前預計利潤率將處於先前預期範圍的下限。

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.

接下來談談PEO業務。第二季度，我們實現了3%的收入成長，主要得益於平均工作場所員工人數2%的成長。這些指標符合我們的預期，我們也很高興看到PEO的按人均管理費成長呈現穩定跡象。正如Maria所提到的，第二季PEO的新業務預訂量非常強勁。在業務持續保持良好成長動能的前提下，我們預計2024財年下半年工作場所員工人數將逐步成長。我們維持全年2%至3%的成長預期。第二季PEO利潤率下降了50個基點。正如我們上個季度所分享的，我們預計今年的工傷賠償準備金釋放額將低於去年，因此我們將2024財年PEO利潤率的預期下調至下降80至100個基點，而此前的預期為下降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.

綜合來看，我們對2024財年合併營收成長的預期仍維持在6%至7%不變。由於分部利潤率的兩項調整，我們現在預期調整後的息稅前利潤率將提高60至70個基點，而先前的預期為提高60至80個基點。我們仍預期實際稅率約為23%，且我們仍預期2024財年調整後每股盈餘成長10%至12%，根據目前的假設，最有可能的結果將取該區間的中間值。謝謝。現在我將把問答環節交還給接線員。

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

（操作員說明）我們將接受 Mark Marcon 和 Robert W. Baird 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?

恭喜您從第三方評審機構獲得了這麼多讚譽。我想請您談談其中的一些舉措。特別是，您設立自己的信託基金這件事，尤其引人注目。您能否談談這方面的投資，以及我們應該如何看待它最終的發展，還有您認為您的第三方合作夥伴（例如銀行、註冊會計師事務所和福利管理機構）會對此作何反應？您覺得他們最終會如何看待這件事？

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。感謝你的提問，也感謝你對我們所有榮譽的祝賀。看到我們各方面都取得如此成就，我感到非常興奮——不僅包括我們在演講稿中提到的榮譽，也包括我們所有項目持續取得的進展。我很樂意就退休信託服務發表一些看法。這確實體現了我們的規模。

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.

所以，當我思考這對我們的客戶意味著什麼，對您提到的生態系統（例如銀行和註冊會計師事務所）意味著什麼時，我認為一切都是極其積極的。信託服務是任何401(k)計劃的核心組成部分。鑑於我們退休服務業務的規模，我們發現，能夠處理我們這樣規模業務的第三方受託人（姑且這麼稱呼吧）的數量實際上正變得越來越少，能夠為我們這樣規模的退休計劃提供獨立信託服務的供應商數量也越來越少。

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，我們決定推出內部信託服務。我們相信這對我們的客戶和整個生態系統都極具價值。這使我們與金融服務領域的其他行業領導者並駕齊驅，並真正使我們相對於一些繼續依賴第三方受託人的HCM競爭對手擁有競爭優勢。因此，我認為這是對我們現有業務——退休業務——的一項重大承諾，這對財務顧問來說至關重要。正如我們所說，註冊會計師和銀行透過採用信託服務，可以更好地控製成本。最終，這將為我們的客戶帶來更優惠的價格和更優質的服務。我們還能夠在ADP生態系統內維護所有數據，如您所知，數據完整性是ADP的核心價值所在。以上就是退休信託服務的簡要介紹，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，您預期員工留存率的下降幅度會比較小，而員工留存率目前正處於歷史高點。這在多大程度上是由於您預期破產率會降低，而不是僅僅因為您觀察到的客戶服務評分的增加？

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.

所以用戶留存率表現非常出色，對吧？我們在前面也提到過，今年迄今的用戶留存率確實超出了預期。因此，我認為目前整體情況非常健康。

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.

在展望未來時，有一點需要牢記，正如您所提到的，我們正從過去幾年創下的歷史高點回落。雖然我們認為，從下行市場的角度來看，我們已接近恢復到2019財年的正常水平，但我們也預計下半年可能會面臨一些壓力，例如企業倒閉和破產可能會產生更顯著的影響。到目前為止，我們尚未看到這種情況，但鑑於我們目前的客戶留存率處於歷史高位，我們認為謹慎的做法是做好應對下半年可能出現的一些壓力的準備。

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，就像往年一樣，馬克，用戶留存率總是會受到各種因素的影響，所以下半年某些服務的留存率會出現一些正常的波動。跟你一樣，我也認為這裡面蘊藏著機會。我想只有時間才能給出答案，但這就是我們對下半年的大致看法。

Our next question comes from James Faucette with Morgan Stanley.

下一個問題來自摩根士丹利的詹姆斯·福塞特。

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.

太好了。非常感謝您今天早上提供的所有細節。我想簡單談談PEO（專業雇主組織）。您提到該業務成長強勁，但似乎營收預期有所調整。您可能已經提到過這一點，但我只是想弄清楚，這其中有多少是時間因素導致的，又有多少是由於您專注於專業服務和技術領域（至少從就業報告來看，這兩個領域目前似乎仍然有些疲軟）所致。

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。謝謝你的提問。我們很高興看到金融服務和科技業的每股盈餘趨於穩定。儘管目前仍存在一些波動，但與上一季相比，情況確實有所改善。這是個正面的訊號。

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.

我認為，當我們審視銷售業績，特別是PEO的訂單量時，我們對訂單量非常滿意。瑪麗亞也提到過，情況已經非常好了。我認為，當我們把這些資訊綜合起來，考慮到每次控制付費率的提高和訂單量的增長，我們將朝著過去幾個季度以來我們一直期待的PEO業務重新加速發展的方向邁進。但真正能夠幫助我們實現這一目標的，是這兩個因素，這兩個變數。

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.

James——我澄清一下，雖然按控制付費的比例趨於穩定，但與我們先前的預測相比，並沒有帶來任何成長。預訂情況良好。大家都明白，預訂量需要相當可觀才能真正對本年度收入產生實質影響。按控制付費的比例仍在持續拖累收入。這兩項因素大致抵消了預期，最終得出的結果是與預期相符。

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?

明白了，丹尼。然後我們快速聊聊人工智慧。看來這方面會有一些增量投資，而且這次電話會議也重點關注了這方面。但我想知道我們應該如何看待——你們預期這項投資的回報是什麼？回報週期是多久？或許更定性地說，有哪些類型的回報，例如顧客滿意度提升、內部營運效率提升等等？

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。那我先從人工智慧方面說起，再跟大家說說我為什麼對它如此興奮。或許唐可以簡單介紹一下我們是如何看待人工智慧投資回報的。為了方便大家理解，我先簡單概括一下我們對人工智慧的理解：我把它分成三個方面，首先是產品和創新。也就是把生成式人工智慧融入我們所有的創新週期。這涵蓋了從產品開發到我剛才提到的各種特性和功能。

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.

順便一提，今天上午晚些時候，我們會發布一份新聞稿，詳細介紹我們的一些產品和創新理念，或者說產品發布計劃。這份新聞稿主要闡述了我們如何思考和設計產品原則，力求在產品和創新週期中做到簡單、智慧和人性化，從而真正有效地將薪資資助手、ADP助理等產品推向市場。

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，產品其實是第一大重點。正如您所看到的，我們在這方面投入了大量資金。我們現在已經更廣泛地在所有產品中部署了 ADP Assist，並且我們看到它對客戶體驗產生了顯著的影響。第二大重點是我所說的效率和服務效率，這實際上是指將我們希望為客戶提供的所有工具提供給我們的員工，以幫助他們更輕鬆、更有效率地完成工作。因此，我們有客服人員輔助功能。我很高興地告訴大家，從客服人員輔助功能的角度來看，目前使用人工智慧工具的員工人數已經增加了一倍以上。

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，這其中很大一部分是圍繞著客服人員輔助和通話摘要。關於投資和回報，我會讓Don來詳細解釋。但為了讓大家對我們討論的內容有個大致了解，我們從員工那裡得到的回饋是，透過通話摘要等輔助功能，我們有時可以節省一兩分鐘。雖然這看起來微不足道，但我想告訴大家的是，我們有數千名客服人員，每年還要接聽數百萬通電話。因此，我們對節省的每一分鐘都感到非常樂觀和興奮，因為這最終會為我們帶來巨大的進步，對吧？所以我們將繼續致力於提高服務效率，真正讓所有員工在與客戶互動方面更有效率。

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，順便說一句，關於這個主題我可以滔滔不絕地講上一整天。但最後，也是非常重要的一點，是我們如何看待生成式人工智慧在市場推廣策略中的應用。多年來，我們一直走在銷售現代化的前端。我們與一些合作夥伴建立了長達二十年的合作關係，始終引領著打造一流現代化分銷和銷售團隊的潮流，這一點對我們來說也不例外。我們已經有許多銷售人員在使用類似生成式人工智慧的工具，其中許多工具都來自我們一流的供應商和合作夥伴，而且我們已經看到了顯著的效果。順便說一句，我以前親自做過的一些事情，比如電話拜訪前的準備工作，還有像電話總結之類的客戶開發工作——這些都與我們的市場推廣策略息息相關，而我們目前才剛開始探索這些工具的奧秘。

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.

總的來說，我真的非常興奮，再次強調，這算是對整個過程的總結。我認為這關乎產品、服務效率以及我們的市場推廣策略。我們正在積極進行投資。其中一些投資是我們之前在數位轉型方面所做的調整，有些則是增量投資。接下來，我想把麥克風交給唐，請他談談我們如何看待這些增量投資，以及它們的回報。

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。我認為瑪麗亞剛才概述了Gen AI將為我們帶來的一些令人興奮的領域。它將改變我們提升客戶體驗、幫助我們的員工、幫助我們提高銷售業績等等。但我想說的是，目前我們真正討論的是對Gen AI進行一些適度的投資。我認為我們需要一段時間才能看到這些投資的回報，但我們當然期待回報。但就目前而言，現在正是投資這些工具的好時機，我們將在未來某個時候看到這些成果，這些財務回報。

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

下一個問題來自巴克萊銀行的拉姆齊·埃爾-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?

你們提到賣家費用上漲只是PEO利潤率下滑的因素之一。我想問的是，這是否就是目前在PEO領域競爭的必然成本？換句話說，在PEO領域競爭的成本是否正在增加？或者你們預計與銷售相關的費用水準會在一段時間後有所下降？

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。我只想回答這個問題。我認為，我們的銷售費用以及我們在PEO（專業雇主組織）的市場拓展方式並沒有什麼特別之處或根本性的差異。當然，隨著銷售額的成長，正如您所知，我們大約一半的銷售額都來自內部。所以，其中一部分是我們內部的營運成本，例如我們在各個業務部門之間如何分配費用等等，但一般來說，銷售額的成長意味著銷售費用的增加。

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.

所以，我們在市場推廣方面並沒有什麼根本性的不同，當然也沒有看到導致這些支出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?

明白了。好的。我還有一個後續問題。關於你們在愛爾蘭推出的Rural系列產品，以及你們剛剛宣布的與Convera的合作，能否談談國際市場的價值主張？它是否與美國市場大致相同？或者說，這些市場需要一些獨特的產品、需求和合作關係，而你們還需要進一步完善這些方面，才能更充分地掌握國際市場機會？

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.

好的，我先開始，瑪麗，你馬上補充。如你所知，如果我們看一下國際收入佔總收入的百分比，就會發現這個比例並不理想，儘管我們全球支付給客戶中大約有40%是國際客戶。原因在於，我們在美國提供的服務與海外截然不同。我們提供專業雇主組織（PEO）服務，還有匯款服務、稅務服務等等，業務範圍相當廣泛。

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.

有些產品和服務在美國以外的市場價值主張並不相同。因此，我們在那裡的機會也不盡相同。或許隨著時間的推移，某些服務會在其他市場推出。但就目前而言，這些服務尚未普及，其價值主張也不相同。至於合作夥伴 Convera，我們想簡單談談，我們擁有數千家客戶，而這些客戶旗下又有數千家實體遍佈全球多個國家。試想一下，在一些小國，向這些客戶的員工支付工資，然後再將款項支付給這些國家的各個社會保障機構，這其中的複雜性和難度可想而知。

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.

像Convera這樣的公司可以幫助大型歐洲或美國跨國公司管理其在全球各地小國的財務職能，而無需自行建立所有銀行帳戶等相關流程。 Convera其實是我們非常理想的合作夥伴，能夠以合規的方式推廣跨國支付等事宜。我認為這對我們來說非常有利。正如我剛才提到的，我們在國際上確實有一些合作夥伴，例如Convera，但我們仍然認為這是一個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.

沒錯。如果可以的話，我認為唐的建議之一，實際上是關於我們在國際市場上的機會。所以，當我們把國際業務放在我們美國業務的背景下考慮時，就會發現我們有很大的機會更廣泛地思考國際合作，就像唐剛才提到的與Convera的合作一樣，就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.

我還要補充一點——從國際角度來看，我們特別強調了第二季國際業務的出色表現。順便一提，這是在穩健的第一季基礎上取得的。此外，我們的客戶留存率也創下新高。我們在國際市場擁有卓越的客戶體驗和客戶滿意度。因此，我認為我們在國際市場擁有巨大的價值主張。順便一提，我在準備演講稿中提到的一些認可，實際上都體現了我們在國際業務方面提供的服務是多麼一流。話雖如此，正如唐所提到的，我們並不滿足於現狀。我認為，除了薪資服務之外，我們還有很大的擴展和成長空間，而合作關係是其中的關鍵。但毫無疑問，我們在國際市場上的表現和競爭力都非常出色。

Fantastic sounds like good things ahead. Appreciate it.

太好了，聽起來未來一片光明。謝謝。

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，我剛才提到了國際業務，所以就簡單說一下。我們對低迷的市場環境非常看好，而國際業務正是我們應對低迷市場環境的途徑之一。我們正在進行的試點計畫也讓我們受益匪淺，讓我們對低迷的市場環境和國際業務有了更清晰的認識。

Our next question comes from Bryan Keane with Deutsche Bank.

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?

恭喜你們取得如此優異的業績。唐，我想問平均餘額的狀況。我知道我們之前預期工資稅延期繳納會對帳戶餘額造成一些不利影響。您能否量化一下，這是否是導致餘額下降2%的部分原因？接下來我們該如何預期？薪資稅延期繳納是否會對餘額造成更大的不利影響，我們是否應該預期今年下半年會出現類似的下降？

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，我認為您指出工資延期（尤其是工資稅延期）是正確的。這確實是導致季度環比下滑的原因。不過，這種情況已經過去了，所以不會再出現。因此，我們預計今年剩餘時間將維持2%至3%的均衡成長。我們認為這是一個非常積極的信號。

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.

我認為整個CFI計畫面臨的一個重大挑戰是，自我們上次談話以來，5年期和10年期利率都下降了約80個基點。因此，我認為這對專案構成一定的不利影響，這大約是我們預計今年剩餘時間資金流入量將減少2,000萬美元的原因。但我們仍然對成長前景非常樂觀。當然，成長速度可能不如去年快的原因之一是薪資成長放緩。我們之前也討論過，儘管每位控制員的薪酬表現符合預期，但其增速肯定低於去年下半年，而且今年下半年的增速也將低於去年下半年。因此，這些因素將對下半年的整體資金流入產生主要影響。

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.

明白了。這是不是意味著將ES利潤率調整到您之前提到的範圍下限？我想您剛才提到了利率。那麼，三個月前的利率走勢有什麼意外之處，導致您將利潤率調整到新利潤率範圍的下限呢？

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，你說得對。我認為流通股數量肯定是我們引導價格回歸區間中段的因素。所以這是其中一個因素。我們不會試著去預測市場走勢。

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.

我們使用跑贏市場的殖利率曲線來估算我們的預期收益。所以除了觀察整體市場走勢之外，沒有什麼真正的意外。然後，我們將遠期殖利率曲線應用於我們的資產負債表，最終得出結果。

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.

我想先談談目前為止銷售季的一些趨勢。第二季預訂情況似乎相當不錯。但我想了解一下第三季的情況如何？另外，您也想了解競爭對手的狀況，例如價格、市場策略等方面的變化，這些資訊都很有幫助。

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到樂觀。我認為企業仍在招募。事實上，我們今天早上也看到了這一點。而且，企業仍在投資員工、人才，投資人力資源。我想重點強調幾點。即使在市場低迷時期，企業也仍在繼續招募和採購。我們第二季的業績非常出色。順便說一句，這項業務在過去許多季度都表現得非常出色。

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，但也包括所有與Run相關的業務。我認為，保險服務、退休服務以及所有在低迷市場中表現都非常出色，這讓您對1月31日的情況有了一些了解。所以，我們確實對低迷市場的情況有了一些初步的了解。您問到了第三季的趨勢。我想說的是，1月的情況看起來不錯。我認為，光是1月份，我們就有望在該業務領域新增近3萬名用戶。這相當於一些公司的規模。因此，在低迷市場中看到這樣的執行力，確實令人驚訝。

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.

我們在中階市場擁有穩固的業務管道，尤其是在油井下線市場，中階市場的表現非常出色。第二季度，從競爭角度來看，我們收到了很多關於競爭格局的問題。中端市場的競爭格局是否發生了變化？我的回答是，並沒有太大變化。長期以來，中端市場一直是個競爭激烈的領域。我們在這個領域做得非常出色。我們擁有業界領先的產品。我們不斷簡化客戶的流程，讓客戶更輕鬆地與我們互動。我們的業績和客戶留存率都證明了這一點。我們的業績和創紀錄的淨推薦值 (NPS) 也證明了這一點。

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.

我們在中端市場獲得了不錯的預訂量。所以我認為中階市場很穩固，而且對我們的客戶來說，在中階市場招募雇主也變得越來越難。至於國際市場，我想我已經提到過了，所以就不多說了，但第二季延續了第一季的良好勢頭。在企業級和高端市場，這個領域通常（我認為這已經算是新常態了）交易週期更長，涉及的人員也更多。所以我們密切關注著這個領域。當然，我們也正在關注這個領域發生的各種變化，但我認為我們對目前的銷售管道以及下半年完成交易的能力都比較有信心。

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.

太好了，這很有幫助。還有個後續問題想問唐。關於浮動收益的指引，我注意到您對客戶空頭投資組合的預期明顯上調了。所以想請您簡單說明一下，今年剩餘時間裡，這些投資的地域分佈有哪些變化。

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。那我再解釋一下。實際上，我們的投資策略完全沒有改變。我們只是稍微調整了一下之前的做法——以前我們每天都從市場借入資金。現在您看到的是，我們實際上提前了一些時間進入市場。也就是說，我們不再像以前那樣在藉款高峰日一次性借入所有資金，而是將借款分散到兩三天進行，這樣我們就能以更平穩的方式進入市場。

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，如果你查看平均餘額——在新聞稿的附錄表格中——你會注意到，短期內這個數字確實上升了不少，但這正是原因所在。所以，這完全不是我們投資策略的改變。這只是我們在需要更多資金時，在市場上借款方式上的一個小調整。

Our next question comes from Bryan Bergin with TD Cowen.

下一個問題來自 TD Cowen 公司的 Bryan Bergin。

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?

我的第一個問題是關於息稅前利潤率（EBIT利潤率）。您能否解釋一下是什麼因素導致了第二季業績超出預期，而您之前預計第二季EBIT利潤率會下降？我很好奇這是否與年內的時間安排有關，還是因為效率提升超出預期。另外，唐，我好像聽到您提到一些關於人工智慧（Gen AI）的投資計畫。這些投資是相對於先前的計畫而言的新增支出嗎？

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.

好的，布萊恩，讓我先回答你問題的第一部分。本季營收略微超出預期，我認為這對利潤率有所貢獻。此外，我們還有一些支出，我們一直都很關注支出。其中一些包括壞帳、人員調整等等，可能還有一些時間因素，但沒有特別顯著的因素可以作為利潤率的貢獻。

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.

關於Gen AI的支出，是的，我們實際支出比上個季度預估的略高一些。所以，我們的支出確實有增加。雖然增幅不大，但我知道很多人喜歡以10個基點來衡量變化，所以我們特此說明。雖然金額不大，但確實比上個季度預估的略高一些。

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。那麼，我想就 Gen AI 和 ADP 輔助功能再問一個後續問題。這項功能是可以直接獲利的，還是更像是你們免費提供的、旨在提升顧客滿意度 (CSAT) 的增強功能？我知道你們正在積極推動這些發展，那麼你們是如何看待 Gen AI 產品獲利的呢？這是一種短期策略，還是更著重於功能和產品差異化，屬於長期現代化策略？

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，Brian，ADP Assist 實際上是一個統領全局的品牌，我們用它來闡述我們產品中所有旨在簡化營運的功能。在我看來，它實際上是 ADP 利用新工具和技術進行數位轉型的下一個階段。

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，我們的初衷並非透過收費來簡化客戶的業務流程。我們始終致力於為客戶提供最便利的薪資處理方式，確保薪資計算的準確性。因此，目前這並非一項獲利措施。我們真正的目標是利用新技術，加速推動數位轉型——坦白說，自電腦時代伊始，我們已經進行了數十年之久。這就是我們對 ADP Assist 獲利模式的整體思考。

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Gen AI能帶來獲利？當然，我認為從長遠來看，這更多的是關於利潤，對吧？所以我覺得，我們今天投入的資金，未來幾年將會為我們帶來數倍的回報。隨著我們不斷開發新產品，並思考各種相關問題，例如產品功能和功能，我們將迎來不同的獲利機會。此外，銷售額和用戶留存率的提升，在我看來，將促使我們對Gen AI進行投資，以推動長期的訂單成長和用戶留存。所以我認為，今天投入的資金，應該相信它在未來會帶來豐厚的利潤，以及訂單量等等。

Our next question comes from Samad Samana with Jefferies.

下一個問題來自傑富瑞集團的薩馬德·薩馬納。

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?

關於PEO業務，我很好奇，我知道你們之前提到PEO業務中一些較大的垂直領域，例如技術和專業服務，這些領域的疲軟程度可能超出了你們的預期。除了PEO業務本身，或說在那些主要垂直領域中，你們觀察到的情況是否有改變？你們是否觀察到過去幾季以來的趨勢發生了任何改變？

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，專業服務業的趨勢已經趨於穩定。正如丹尼之前所說，它不再是成長放緩的因素。過去，專業服務業曾是人均收益加速成長的主要動力，但後來卻導致了成長放緩，目前已基本穩定下來。

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?

明白了。我知道您也在考慮定價環境，而且公司目前還沒有年度漲價。但您考慮到，對於新交易或新客戶的加入，價格壓力或競爭對手在折扣方面，以及ADP本身提供的優惠，是否會有任何變化？展望未來，您對今年的漲價有何看法？

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，我們目前並沒有看到價格環境或競爭環境有任何變化。我們認為我們的定價是合理的。我們也一直承認我們的價格比其他公司略高，但我們對此感到滿意，因為我們認為我們能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。預算週期將在未來六到八週左右開始，我們肯定會考慮明年的價格上漲，並權衡所有常規因素，例如通貨膨脹情況。

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.

我們認為去年的價格上漲得到了客戶的正面回饋，也認為漲幅在合理範圍內——我們會牢記這一點。但一如既往，我們始終專注於客戶的長期價值，並致力於保持市場競爭力。因此，我相信，我們在考慮向客戶提價時，始終秉持著審慎的態度。

Our next question comes from Kevin McVeigh with UBS.

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?

好的。瑪麗亞，我想你剛才稍微談到了實施方案。可以提醒我們一下，目前公司內部透過實施方案獲得的收入佔比是多少嗎？如果從理念上來說，這是一個轉變，那麼隨著時間的推移，這個比例會如何改變？如果我沒聽錯的話，你對此有什麼補充說明嗎？

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，凱文，也許吧，你有點心軟，順便說一句，你說話有點難聽，但我認為問題在於我們從實施過程中能獲得什麼樣的收入…

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。所以，這部分收入不多，不到我們總收入的10%，我們內部稱之為設定費。所以金額並不大。

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?

那麼隨著時間的推移，這種情況會下降嗎？如果將這項工作外包，這種情況會減少嗎？有沒有辦法評估這項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，你也是一樣——所以，不，我不認為這方面有很大的機會。我們當然也討論過這個問題。確實有許多客戶希望我們把實施工作外包出去，因為他們認為這能為他們帶來收入。我們喜歡從銷售到上線營運全程掌控客戶，但這並不代表我們不會偶爾與第三方合作，事實上我們也確實會這樣做。

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.

但這其實並非什麼大問題。當然，這裡面確實有一些可觀的收入，但在整體情況來看，它並非決定性因素。此外，在實施和設置費用以及合約條款的延期支付方面，也存在一些有趣的會計處理。因此，再次強調，要想在短期內對最終財務狀況產生任何影響，都需要進行大量的調整。

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

下一個問題來自摩根大通的黃天進。

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.

效果不錯。我只是想就您之前的評論深入探討一下。我知道很多人都在問關於PEO（專業雇主組織）的問題，以及該領域的活躍度和加速發展的信心。 ADP的做法有什麼不同嗎？還是產業需求改變了？我理解應該沒有變化——聽起來成本或定價方面也沒有變化。所以我想確認一下我的理解是否正確。

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。我很樂意談談PEO的訂單情況。正如我在準備好的發言稿中提到的，我們對PEO的訂單狀況非常滿意。這已經是我們連續第四個季度看到PEO訂單維持成長勢頭了。尤其是第二季度，業績更是超出了我們的預期——我們在PEO方面感受到的大部分壓力都來自於按控制付費模式的壓力，我們需要克服這些壓力，這也是為什麼我們如此重視訂單量的原因。當然，我們在第二季也確實做到了這一點。

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.

從需求角度來看，如您所知，我一直在談論PEO（專業雇主組織）。我認為需求依然非常強勁。我並不認為我們採取了任何不尋常的措施，只是在整個企業範圍內投入了大量精力來確保PEO業務的順利開展。至於需求方面是否存在任何異常變化，我認為正如我一直強調的，PEO的價值主張比以往任何時候都更加強大。我認為該領域的客戶正在尋求ADP在PEO價值主張方面的協助，包括薪資管理、福利保障，以及應對企業營運的複雜性，並且能夠有效管理僱傭關係。

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.

所以我認為，我們的價值主張仍然強勁，而且我認為它仍然很強大。市場需求旺盛。公司將PEO（專業雇主組織）的預訂作為我們執行業績的關鍵槓桿，我很高興地看到，我們在第二季度確實做到了這一點，而且——這標誌著PEO預訂量連續第四個季度保持增長勢頭。

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

謝謝。下一個問題來自美國銀行的傑森·庫柏伯格。

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?

我是卡羅琳，我代替傑森發言。感謝您回答我們的問題。上半年，每股盈餘成長率每季為2%。但2024年全年的預期成長率仍是1%到2%。那麼，下半年成長放緩的原因是什麼？或者您認為達到預期上限的可能性更高？

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。我們之前說過，全年成長率會維持在1%到2%之間，而且下半年一定也會維持在這個範圍內。我們並不預期每股收益會下降，但我們確實已經考慮到了這一點。所以，或許我們在這方面稍微保守了一些。

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.

但就目前而言，就業需求依然強勁，儘管略有下降。但我認為我們有信心，下半年就業需求會略有下降，但仍會維持在全年1%到2%的範圍內。除了就業需求之外，其實也沒什麼好說的了，勞動市場可能比之前略顯疲軟。但正如我們今天早上在NER報告中看到的那樣，招聘仍在進行，仍然保持著良好的成長勢頭。所以沒有特別值得關注的地方。我認為這與薪酬控制無關。

Our next question comes from Dan Dolev with Mizuho.

下一個問題來自瑞穗銀行的 Dan Dolev。

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.

成果斐然。我有個戰略方面的問題。顯然，展望未來12到18個月，利率將會下降，目前關於如何抵銷利率下降帶來的營收不利影響的討論很多。您能否談談您可以採取哪些獨特的舉措來應對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?

我覺得這其實是個宏觀問題。從宏觀角度來看，如果利率開始下降，經濟活動就會隨之增加，抵銷利率下降的影響。而經濟活動增加，收入也會上升，訂單量也會增加等等。所以我覺得，如果利率下降——我知道現在有很多關於降息幅度的爭論，比如降息兩次還是四次等等——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.

但如果利率真的下降，我們絕對能避免經濟衰退。今天電話會議上沒人問到經濟衰退的問題，謝謝。我認為大家的共識是不會出現經濟衰退。所有民調都顯示經濟狀況良好，最新數據顯示GDP成長了3.3%。所以，如果利率下降，經濟應該會保持健康，而健康的經濟應該會繼續促進經濟成長。

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，我們的模型涉及對殖利率曲線更遠期的資產進行再投資。如你所知，我們目前的再投資利率仍然高於那些即將到期證券的利率。因此，即使明年短期利率開始下降（這顯然是目前的普遍共識），很大程度上也會被我們對殖利率曲線更遠期資產的再投資所抵消。所以現在談論明年的利率前景還為時過早，但我們建議你記住這一點。

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，這很合理。我認為，如果你看一下我們的再投資，目前的再投資收益率仍然高達4%，高於我們目前的平均收益率。所以仍有投資機會。我們預計未來12到24個月內流通股數將持續成長。當然，其成長速度會比上個季度末的預期要慢一些。但資金流動仍存在上漲空間，儘管可能不如預期那麼大。

Our next question comes from Pete Christiansen with Citi.

下一個問題來自花旗銀行的皮特·克里斯蒂安森。

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。既然我們已經完全超越了ERTC，我很好奇您是否注意到客戶需求或競爭策略有任何變化，尤其是在市場低迷時期。

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。皮特，正如你所知，ERTC（僱員退休收入和培訓委員會）的新截止日期實際上提前了五個季度。所以，就目前來看，截止日期可能就是今天。我認為我們仍在等待新截止日期的最終執行。但可以說，我們必須代表客戶執行，並且要考慮到今天的截止日期。因此，我們正在代表客戶處理大量工作。

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.

這給整個系統帶來了壓力，說實話，這讓人很難過，因為這關係到那些本應從中受益的客戶，以及他們面臨的挑戰。所以我們正在竭盡全力幫助和處理這些索賠。就我們而言，就ERTC而言，它對我們的財務影響微乎其微。我認為，就我們的整體收入和增量而言，它對我們的財務影響微乎其微。我們真正關注的是為客戶提供支持，我認為我們的一些競爭對手比我們更傾向於將其視為一項業務和收入來源。但毫無疑問，將截止日期提前到今天，對任何參與其中的人來說都不是理想的情況。

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。另外，我很好奇人力資本管理 (HCM) 和支付功能的結合。這無疑是一個重要主題，電子福利帳戶 (EWA) 顯然是其中非常重要的一部分，而且涉及跨境支付。您認為是否有機會透過合作、併購等方式進一步拓展支付領域的業務，例如增加支付功能，甚至包括付款等其他方面？

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.

從策略角度來看，Pete，我建議繼續為我們的客戶和員工以及他們與我們互動的方式提供解決方案。如果你想像ADP在美國為4,100萬勞工階級支付了工資，那就是2,500萬美元。我記得上次我們談到這項廣泛的服務時，我們透露我們擁有150萬持卡人或類似的數據。所以，你剛才提到的規模，就是我們面臨的機會。

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，在提升與客戶的互動方式方面，存在著巨大的機遇，無論是透過像 Wisely 這樣的平台，還是像您建議的 EWA 這樣的服務，亦或是其他任何支付方式，我們都可以採取各種措施，讓客戶和員工在工作中更加輕鬆便捷。因此，我認為，我們積極在市場上尋求合作，並思考如何在任何能為客戶和員工的生活和工作流程增添價值的領域，都能發揮作用。例如，當他們使用 ADP 的行動應用程式打卡時（順便一提，我們擁有 1000 萬活躍用戶），當他們與 ADP 互動時，我們是否有機會在其中註入價值？無論是像 EWA 這樣的服務，還是支付方式，也或是像我們透過 Wisely 提供的配套應用程式那樣的財務和健康應用程式。在進行策略討論以及思考ADP未來合作關係時，這些都是我們最關心的問題。

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

我們還有時間回答最後一個問題，這個問題來自加拿大皇家銀行資本市場的 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.

所以，關於市盈率（PE）以及之前關於穩健的預訂量和緩和的PPC（抱歉，是紙質文件控制方面的阻力）的評論，我有一些問題需要解答。當我們觀察華沙證券交易所（WSE）的成長時，我們看到其環比持續改善，優於去年同期水準。鑑於先前的評論，我們是否可以合理地假設，隨著年內的發展，這種改善趨勢將會持續下去？

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.

關於每個工作場所員工的收入，我想請您評論一下，目前看來定價趨勢是積極的，但您能否評論一下其他任何可能有助於提高每個工作場所員工收入的因素，例如買賣盤、市場參與情況等等。

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，您問題的答案是肯定的。我們預計，預訂量的增加，加上按控制付費方面的穩定性，以及下半年客戶留存率的改善，所有這些因素都應該會促成唐之前提到的那種我們一直期待的下半年增長。至於PEO內部的其他組成部分，您也提到了一些。

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.

有以失業人數計算的工資支出、工傷賠償、州失業率——其中一些指標我們仍在等待最終結果。舉個例子，其中之一就是州失業率，顯然，我們今天在這裡預測的是它的具體情況。大部分失業率數據將在本季公佈。因此，雖然我們有一些大致的了解，但最終我們無法完全確定州失業率的最終結果。我們預計今年的失業率將再次出現小幅下降。但最終結果如何，只有時間才能證明。例如，有時各州會做出一些非常奇怪的決定，這些決定並不總是與更廣泛的勞動力和失業情況相符。總而言之，我認為——我今天無法指出任何看起來奇怪或不尋常的指標。我認為這些都是我們在關注下半年PEO（專業雇主組織）重新加速發展時會密切關注的因素。

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

謝謝。現在我想把電話轉回給瑪麗亞·布萊克，請她做總結發言。

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。那麼，我想快速地以我準備好的發言結尾，那就是向ADP的所有同事和整個生態系統致以最誠摯的謝意。這包括ADP的同事、合作夥伴、通路以及所有利害關係人，正是你們的共同努力，才使得第二季以及上半年都取得了非常穩健的業績。我對下半年充滿期待，不僅對我們在2024財年，而且對整個2024年都將取得的成就充滿信心。

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，這是一個令人興奮的時刻，也是令人興奮的一年。今年是我們公司成立75週年。回想過去70年、75年的發展歷程，我無比期待──也迫不及待想看看未來75年我們將取得怎樣的成就。期待與大家共同慶祝，攜手邁向2024年。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。節目到此結束，您可以斷開連線了。祝大家今天過得愉快。