自動資料處理 (ADP) 2024 Q3 法說會逐字稿

Good morning. My name is Michelle, and I'll be your conference operator. At this time, I would like to welcome everyone to ADP's Third Quarter Fiscal 2024 Earnings Call. I would like to inform you that this conference is being recorded. (Operator Instructions) I will now turn the call over to Mr. Danyal Hussain, Vice President, Investor Relations. Please go ahead.

早安.我是Michelle，本次電話會議的接線生。現在，我謹代表ADP公司歡迎各位參加2024財年第三季財報電話會議。請注意，本次會議正在錄音。 （接線生提示）現在，我將把電話會議交給投資人關係副總裁Danyal Hussain先生。請開始發言。

Thank you, Michelle, and welcome everyone to ADP's Third 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財年第三季財報電話會議。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 the most comparable GAAP measures can be found in our earnings release.

在本次電話會議中，我們將提及非GAAP財務指標，我們認為這些指標對投資人更有幫助，並且剔除了某些項目的影響。有關這些項目的說明以及非GAAP指標與最接近的GAAP指標的調節表，請參閱我們的獲利報告。

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.

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，並存在一定風險。我們建議您查閱我們向美國證券交易委員會提交的文件，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 7% revenue growth and 14% adjusted diluted EPS growth for the third quarter as we continued to make progress delivering against our strategic priorities and as the labor market and the overall HCM business environment remains stable.

謝謝丹尼，也謝謝各位的到來。今天上午，我們公佈了第三季強勁的業績：營收成長7%，調整後攤薄每股收益成長14%。這得益於我們在實現策略重點方面持續取得進展，以及勞動市場和整體人力資本管理（HCM）業務環境的穩定。

I'll begin with a review of the quarter's results and provide a brief update on our strategy before turning it to Don to update you on our outlook and share some early considerations for next year. In Q3, we delivered solid Employer Services new business bookings growth reaching record bookings for a Q3 period and keeping us on track for our full year outlook. We maintained momentum in our small business portfolio with particularly strong growth in our Retirement Services offering. And in Q3, we also delivered strong bookings results in our mid-market, enterprise and international businesses. With a steady demand backdrop and a healthy new business pipeline, we are focused on continuing to execute for the remainder of the year.

首先，我將回顧本季業績，並簡要介紹我們的策略進展。之後，請Don向大家報告我們的展望，並分享一些明年的初步計劃。第三季度，我們的雇主服務新業務預訂量實現了穩健成長，創下第三季歷史新高，並使我們有望實現全年目標。我們的小型企業業務組合保持了強勁成長勢頭，其中退休服務業務的成長尤為顯著。第三季度，我們的中端市場、企業級和國際業務也取得了優異的預訂業績。在需求穩定、新業務儲備充足的情況下，我們將繼續專注於在今年餘下的時間裡保持良好的業績。

Employer Services retention was very strong in the third quarter and once again exceeded our expectations, also reaching a new record level for a Q3 period, led by our mid-market business. Our overall retention continues to benefit from ongoing investments in our key platforms and from our commitment to delivering an exceptional client experience, which together helped our client satisfaction scores reached a new all-time high for our Q3.

第三季度，雇主服務客戶留存率表現強勁，再次超越預期，並創下第三季新高，主要得益於中階市場業務的優異表現。我們對關鍵平台的持續投入以及對卓越客戶體驗的承諾，也持續提升了整體客戶留存率，這些因素共同助力客戶滿意度在第三季度創下歷史新高。

Our Employer Services pays per control growth was steady at 2%, reflecting the resilient overall U.S. labor market and the fact that our clients continue to add to their workforces at a moderate pace. And our PEO revenue growth of 5% for the third quarter was in line with our expectations despite continued short-term pressure from below-normal hiring activity we've been experiencing among those clients.

我們的雇主服務按控制付費業務成長穩定在2%，這反映了美國整體勞動市場的韌性，以及我們的客戶持續以適度的速度擴充員工隊伍。儘管我們持續面臨客戶招募活動低於正常水準帶來的短期壓力，但第三季我們的專業雇主組織（PEO）營收成長5%，符合預期。

Moving on to a broader update. We continue to push forward on our 3 strategic priorities: leading with the best HCM technology, unmatched service and expertise and the broader scale to ultimately deliver the best possible experience, not just to the buyers of our products but everyone that engages with ADP. We are investing with purpose to deeply understand and deliver value to a vast set of personas from small business owners that count on us to HR professionals and executives of the largest global enterprises to millions of employees and gig workers around the world who engage with our solutions to CPAs, banks, brokers and other key partners to our thousands of dedicated service and implementation associates and to our sellers who represent ADP in the market every day.

接下來，我們來看看更廣泛的更新。我們將繼續推動三大策略重點：提供領先的人力資本管理 (HCM) 技術、無與倫比的服務和專業知識，以及更廣泛的規模，最終為所有與 ADP 互動的人員，以及所有購買我們產品的人員，提供最佳體驗。我們正有目的地進行投資，深入了解並為各類用戶群創造價值，從依賴我們的小企業主，到全球大型企業的人力資源專業人士和高管，再到使用我們解決方案的全球數百萬員工和零工人員，以及註冊會計師、銀行、經紀人和其他重要合作夥伴，還有我們數千名敬業的服務和實施人員，以及每天代表 ADP 在市場上開展業務的銷售人員。

It's with these personas in mind that we continue pushing forward on our strategic priorities, and in Q3, we made steady progress. Our first priority is to lead with best-in-class HCM technology. We've been rolling out ADP Assist these past couple of quarters which, as a reminder, will be embedded in our key platforms and utilizes Gen AI to surface insights, aid decision-making and streamline day-to-day tasks for our clients and their employees.

正是基於這些使用者畫像，我們不斷推進各項策略重點，並在第三季取得了穩定進展。我們的首要任務是引領一流的人力資本管理（HCM）技術。過去幾個季度，我們一直在推廣ADP Assist，該平台將嵌入我們的關鍵平台，並利用人工智慧技術（Gen AI）為客戶及其員工提供洞察分析、輔助決策和簡化日常工作流程。

In Q3, we were very excited to begin piloting a new feature that enables our small business clients to not only leverage Gen AI to answer questions and better understand how to initiate an HR action, which we outlined in recent quarters, but to actually allow them to issue commands to complete that HR action. For example, users can now type, I need to rehire Alex or I would like to give Alex a leave of absence and are expedited through that workflow.

第三季度，我們非常高興地開始試行一項新功能，該功能不僅能幫助我們的小型企業客戶利用人工智慧生成（Gen AI）來回答問題，更好地了解如何啟動人力資源操作（我們在前幾個季度已經介紹過），而且還能讓他們實際發出指令來完成這些操作。例如，使用者現在可以輸入“我需要重新聘用Alex”或“我想給Alex一個休假”，然後就能快速完成相應的流程。

Our second priority is to provide unmatched expertise and outsourcing. We continue to extend Gen AI capabilities to a broader portion of our service associates. And in Q3, we started rolling out a new tool for some of our implementation teams. Now they can use Gen AI to take in unstructured client employee data, reducing manual data entry and minimizing errors during the implementation process. While it's still early, we are excited about its potential benefits.

我們的第二個重點是提供無與倫比的專業知識和外包服務。我們持續擴大 Gen AI 的功能覆蓋範圍，並惠及更多服務人員。第三季度，我們開始為部分實施團隊推出新工具。現在，他們可以使用 Gen AI 來接收非結構化的客戶員工數據，從而減少手動資料輸入，並最大限度地降低實施過程中的錯誤。雖然目前還處於早期階段，但我們對其潛在優勢充滿信心。

Our third priority is to benefit our clients with our global scale. The ADP Marketplace remains a differentiator for us and is a perfect example of a benefit our clients receive from partnering with a leader in HCM. As a growing number of our hundreds of partners offer AI-enabled solutions, in Q3, we established ADP Marketplace AI principles that require our partners to commit to the same type of responsible AI principles that govern our own products, including human oversight, monitoring, explainability and mitigating bias.

我們的第三個優先事項是利用我們的全球規模為客戶帶來益處。 ADP Marketplace 仍然是我們的差異化優勢，也是客戶與人力資本管理 (HCM) 領域的領導者合作所能獲得的最佳例證。隨著我們數百家合作夥伴中越來越多的人提供人工智慧解決方案，我們在第三季度製定了 ADP Marketplace 人工智慧原則，要求我們的合作夥伴承諾遵守與我們自身產品相同的負責任人工智慧原則，包括人工監督、監控、可解釋性和減少偏見。

Our clients put a huge amount of trust in us, and this is another example of how ADP strives to ensure the responsible use of AI throughout the ADP ecosystem. We also continue to extend our market-leading global scale. And in Q3, we reached 1 million paid employees on our IHCM platform, which continues to scale in several countries in Europe, and we made further progress in growing our presence in the APAC region, where we have recently been expanding our in-country payroll and workforce management presence in a number of markets.

我們的客戶對我們寄予厚望，這再次體現了ADP致力於在整個ADP生態系統中負責任地使用人工智慧的努力。我們也在不斷擴大我們市場領先的全球規模。第三季度，我們的IHCM平台涵蓋了100萬名付費員工，該平台在歐洲多個國家持續擴展。此外，我們在亞太地區的業務也取得了進一步進展，近期我們在多個市場拓展了在地化的薪資和勞動力管理服務。

In 2024, we are celebrating our 75th anniversary, and we pride ourselves on having built ourselves into a brand that truly matters to employers, their employees and the broader world of work. Our focus on our strategic priorities positions us to deliver more value than ever for our over 1 million current clients and to the tens of thousands of new clients, we welcome to the ADP family every quarter.

2024年，我們將迎來75週年慶典。我們為能夠將自身打造成為一個對雇主、員工以及整個職場都至關重要的品牌而感到自豪。我們專注於策略重點，這使我們能夠為超過100萬現有客戶以及每季加入ADP大家庭的數萬新客戶創造前所未有的價值。

I'd like to highlight just a few of these new client wins from Q3 to give you an appreciation for the variety of ways in which we deliver value for them. In U.S. small business, we had a new boutique donut shop referred to us from one of our CPA partners. The client chose ADP for the strength of our RUN platform, our reputation for great service, our strong relationship with our CPA and our ability to provide retirement services.

我想重點介紹一下第三季我們贏得的幾個新客戶，以便您了解我們為客戶創造價值的多種方式。在美國小型企業領域，我們的一位註冊會計師合作夥伴向我們推薦了一家新開的精品甜甜圈店。該客戶選擇 ADP 的原因在於我們強大的 RUN 平台、我們卓越的服務口碑、我們與註冊會計師的緊密合作關係以及我們提供退休服務的能力。

Since this was a first-time small business owner, our sales team even took the time to help the business owner set up their business the right way from guiding the client on obtaining a state tax ID to making sure the client obtained the appropriate workers' compensation insurance. In U.S. mid-market, we won a multistate operator of rehabilitation centers. This client wasn't happy with their prior HCM provider and Workforce Now proved a much better fit.

由於這位業主是初次創業，我們的銷售團隊甚至花時間幫助他/她正確地建立業務，從指導客戶獲取州稅務識別號到確保客戶購買合適的工傷賠償保險。在美國中端市場，我們贏得了一家跨州康復中心營運商的客戶。該客戶對其先前的HCM供應商並不滿意，而Workforce Now被證明是更合適的選擇。

What makes me the most proud in this example is how one of our ADP Marketplace partners played a key role in the decision to switch to ADP by independently highlighting the advantages we offered in terms of ease of integrations, a capability we have invested in over the years.

在這個例子中，最讓我感到自豪的是，我們的一位 ADP Marketplace 合作夥伴在決定切換到 ADP 的過程中發揮了關鍵作用，他獨立地強調了我們在集成便捷性方面提供的優勢，而這正是我們多年來一直致力於提升的能力。

In U.S. enterprise, we welcomed a large luxury resort that operates multiple hotels, restaurants and retail stores on site and was dissatisfied with the prior provider's level of client service. The client was so happy following their seamless ADP implementation, which included on-site training for their HR team that they accelerated their plans to add-on features like benefits, recruiting, onboarding, wage garnishment and tax credits.

在美國，我們服務了一家大型豪華度假村，該度假村旗下擁有多家酒店、餐廳和零售商店，但對之前的供應商的客戶服務水平並不滿意。在順利完成ADP系統部署後，客戶非常滿意，其中包括為其人力資源團隊提供的現場培訓。客戶隨即加快了添加福利、招聘、入職、工資扣押和稅收抵免等功能的計劃。

In our international business, one recent win was a leading airline that utilized ADP in certain countries and asked us to help better define their global payroll strategy. Ultimately, they expanded the scope of our services to include an additional 18 countries and started that rollout in the third quarter, with plans to add other countries over the next year to enable true consolidated global reporting and analytics.

在國際業務方面，我們近期取得的一項成功案例是一家領先的航空公司，該公司在部分國家使用ADP系統，並委託我們協助其更好地制定全球薪酬戰略。最終，他們將我們的服務範圍擴展至另外18個國家，並於第三季開始實施，計劃在未來一年內涵蓋更多國家，以實現真正的全球統一報告和分析。

And as a final example, our HRO team started a New York-based design firm after its leadership team recognized the company lacked the HR infrastructure required to adequately attract and retain the right talent. They turned to our PEO offering for truly comprehensive support, attracted by the breadth of our offering, including features like the MyLife Advisors program, which supports employees as they make benefits and other important life decisions.

最後舉一個例子，我們的人力資源外包團隊在一家位於紐約的設計公司成立之初，該公司領導團隊意識到公司缺乏足夠的人力資源基礎設施來吸引和留住合適的人才。他們最終選擇了我們的專業雇主組織 (PEO) 服務，以獲得真正全面的支援。我們服務的廣泛性吸引了他們，其中包括「我的生活顧問」計畫等功能，該計畫旨在幫助員工做出福利和其他重要的人生決策。

We also advised this client in the development of a comprehensive benefits strategy to support their multigenerational workforce and help them attract the talent that they need to grow. As you can tell from these examples, it's often a combination of our technology, expertise and overall breadth that resonated with these businesses. And the result is incredible diversity in our client base and a resilient overall business model.

我們也為客戶制定了一套全面的福利策略，以支持其多元化的員工隊伍，並幫助他們吸引發展所需的優秀人才。正如您從這些案例中所看到的，我們技術、專業知識和廣泛業務能力的結合往往能夠引起這些企業的共鳴。最終，我們實現了客戶群的多元化，並創造了穩健的整體商業模式。

We look forward to leaning in and delivering even greater differentiation in the market going forward. Overall, we were pleased with the strong financial and strategic outcomes in the third quarter. I'd like to thank our associates who continue to deliver exceptional products and service to our clients in whose efforts drive these client wins and retention. Thank you again for all you do for ADP and for our clients. And now I'll turn it over to Don.

我們期待未來能更積極投入市場，並實現更大的差異化優勢。整體而言，我們對第三季強勁的財務和策略成果感到滿意。我要感謝我們的同事，他們持續為客戶提供卓越的產品和服務，正是他們的努力促成了我們贏得更多客戶並保持客戶忠誠度。再次感謝你們為ADP和我們的客戶所做的一切。現在，我將把發言權交給唐。

Thank you, Maria, and good morning, everyone. I'll provide more color on our results for the quarter and our updated fiscal 2024 outlook. Overall, we reported a strong third quarter with our consolidated revenue growth and our adjusted EBIT margin coming in a bit above our expectations. The interest rate backdrop has improved since we last provided our full year outlook. So we're updating our outlook for that as well as making a few other changes, which I'll detail.

謝謝瑪麗亞，大家早安。接下來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，我們第三季業績表現強勁，合併營收成長和調整後息稅前利潤率均略高於預期。自我們上次發布全年展望以來，利率環境有所改善。因此，我們正在更新全年展望，並做出一些其他調整，稍後我會詳細說明。

I'll start with Employer Services. ES segment revenue grew 8% on a reported basis and 7% on an organic constant currency basis. As Maria shared, we had a good quarter in ES new business bookings with broad-based growth across our client segments. We have a tough compare in Q4 following the last year's strong finish, but with a steady HCM demand environment and healthy pipelines, we feel on track to deliver our 4% to 7% new business bookings growth outlook for the year.

我先來說說雇主服務（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%。正如Maria所說，ES業務的新業務預訂量在本季表現良好，所有客戶群均實現了全面成長。由於去年同期業績強勁，第四季面臨較高的基數，但鑑於人力資本管理（HCM）需求環境穩定，且業務儲備充足，我們有信心實現全年4%至7%的新業務預訂量增長目標。

Also, as Maria mentioned earlier, our ES retention exceeded our expectations and increased slightly from last year. Given our continued strong retention performance, we are increasing our full year retention outlook slightly. We now anticipate a 20 to 30 basis point decline in full year retention, which is better than our prior forecast. ES pays per control growth held steady at 2% in Q3 and we now expect growth to around 2% for the year, the high-end of our prior 1% to 2% growth outlook. And client funds interest revenue exceeded our expectations in Q3 due to higher average client funds balances and a slightly better average yield.

此外，正如瑪麗亞先前提到的，我們的員工持股留存率超出預期，比去年略有成長。鑑於我們持續強勁的員工持股留存率表現，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20至30個基點，優於先前的預測。第三季員工持股每控制權支付金額成長穩定在2%，我們現在預期全年成長率約為2%，處於先前1%至2%成長預期的高端。由於客戶資金平均餘額增加以及平均收益率略有提高，第三季客戶資金利息收入超出預期。

We are revising our full year client funds interest outlook to reflect our Q3 results and the increase in prevailing interest rates since our last update. We now expect fiscal '24 average client funds balance growth of about 3%, and we are raising our expectation for client funds interest revenue and net impact from our client funds extended investment strategy.

我們正在修訂全年客戶資金利息預期，以反映第三季業績以及自上次更新以來利率的上升。我們現在預計2024財年客戶資金平均餘額將成長約3%，並上調了對客戶資金利息收入以及客戶資金擴展投資策略淨影響的預期。

In total, there is no change to our fiscal '24 ES revenue growth forecast of 7% to 8%, although we are now likely to come in towards the higher end of that range. Our ES margin increased 230 basis points in Q3, driven both by operating leverage and the contribution from client funds interest revenue growth. With our strong Q3 results and the slightly more favorable client funds interest rate backdrop, we are raising our fiscal '24 ES margin outlook and now anticipate growth of 180 to 190 basis points.

整體而言，我們對2024財年員工服務（ES）收入成長的預測維持在7%至8%不變，但目前來看，實際成長率可能更接近該區間的上限。第三季度，我們的員工服務利潤率成長了230個基點，這主要得益於營運槓桿效應以及客戶資金利息收入成長的貢獻。鑑於第三季強勁的業績表現以及略微有利的客戶資金利率環境，我們上調了2024財年員工服務利潤率的預期，目前預計增長幅度為180至190個基點。

Moving on to the PEO. We had 5% revenue growth driven by 3% growth in average worksite employees in the third quarter, representing a slight acceleration from the first half of the year. These results were largely in line with our expectations, and we were encouraged by the gradual stabilization in our PEO's pays per control growth, which decelerated but only slightly from the prior quarter.

接下來談談PEO業務。第三季度，我們實現了5%的營收成長，主要得益於平均工作場所員工人數成長3%，較上半年略有加速。這些業績基本上符合我們的預期，尤其令人鼓舞的是，PEO的按人均管理費成長逐漸趨於穩定，雖然成長速度較上一季有所放緩，但幅度不大。

We continue to anticipate soft pace per control growth through the end of the year and expect worksite employee growth to hold steady at about 3%, keeping us on track for our full year outlook for worksite employee growth of 2% to 3% and revenue growth of 3% to 4%. PEO margin decreased 220 basis points in Q3. As we shared last quarter, we expect this year's workers' compensation reserve release benefit to be significantly lower than what we experienced these last few years, and in particular, last year's $73 million benefit.

我們預計全年每項業務成長速度將保持溫和，並預期工作場所員工成長率將穩定在3%左右，從而確保我們能夠實現全年工作場所員工成長率2%至3%以及收入成長率3%至4%的預期目標。第三季PEO利潤率下降了220個基點。正如我們上個季度所述，我們預計今年的工傷賠償準備金釋放額將遠低於過去幾年的水平，尤其是去年的7,300萬美元。

We are updating our fiscal '24 outlook to now assume a minimal release benefit, and as a result, we are further revising our overall PEO margin expectation to be down 120 to 140 basis points in fiscal '24 versus our prior expectation for a decline of 80 to 100 basis points.

我們正在更新 2024 財年的展望，現在假設釋放收益最小，因此，我們將 2024 財年 PEO 整體利潤率預期進一步修正為下降 120 至 140 個基點，而我們之前的預期為下降 80 至 100 個基點。

Putting it all together, there is no change to our fiscal '24 consolidated revenue growth of 6% to 7%. With the 2 changes to segment margins largely offsetting one another, we continue to expect our adjusted EBIT margin to increase by 60 to 70 basis points. We still anticipate an effective tax rate of around 23%, and we continue to expect fiscal '24 adjusted EPS growth of 10% to 12% with the middle of that range still the most likely outcome.

綜合來看，我們2024財年合併營收成長預期維持在6%至7%不變。由於兩項業務分部利潤率的調整基本上相互抵消，我們仍預期調整後息稅前利潤率將提升60至70個基點。我們預期實際稅率約為23%，並繼續預期2024財年調整後每股盈餘將成長10%至12%，其中中間值仍是最有可能的結果。

As we look ahead to fiscal '25, I wanted to share a couple of early thoughts at this point. First, given the fullness of the labor market, we are planning for pays per control growth to once again be below normal levels next year and to decelerate modestly from this year's growth level in both ES and our PEO segments with the resulting revenue pressure more apparent in the PEO segment given its more direct revenue sensitivity to worksite employees. We'll, of course, share those exact assumptions with you when we give our formal guidance in a few months.

展望2025財年，我想在此分享一些初步想法。首先，鑑於勞動力市場供需平衡，我們預計明年每位員工的薪資成長將再次低於正常水平，並且在員工服務（ES）和專業雇主組織（PEO）業務板塊的成長速度都將比今年略有放緩。由於PEO業務部門的收入對工作場所員工更為敏感，因此由此產生的收入壓力在該板塊會更為明顯。當然，我們將在幾個月後發布正式業績指引時與您分享這些具體的假設。

On the expense side, we are also planning to continue growing our Gen AI-related spend next year. As you've heard from us all year long, there are many ways we can put Gen AI in the hands of all of the different stakeholders that work with or on behalf of ADP, including our client practitioners, their employees, our service and implementation teams, our sellers and our developers. These are critical investments, and they are the right investments for ADP. But we expect the associated benefits in productivity and growth to phase in gradually over time, likely representing overall margin pressure for the year.

在支出方面，我們計劃明年繼續增加與人工智慧（Gen AI）相關的投入。正如您今年一直聽到的那樣，我們可以透過多種方式將人工智慧技術推廣到與ADP合作或代表ADP開展業務的所有利益相關者，包括我們的客戶從業人員、他們的員工、我們的服務和實施團隊、銷售人員以及開發人員。這些都是至關重要的投資，也是對ADP而言正確的投資。但我們預計，相關的生產力和成長效益將隨著時間的推移而逐步顯現，這可能會對全年的整體利潤率造成壓力。

At the same time, we appear positioned for continued tailwind from interest rates, though the extent of this benefit will, of course, depend on how the yield curve continues to develop. As usual, we're focused primarily on maintaining good momentum in our new business bookings and maintaining our strong client satisfaction and retention, and we remain upbeat about our strategy for the years ahead. And now over to Q&A.

同時，我們似乎已做好準備，繼續受益於利率的利好，當然，這種利好程度將取決於殖利率曲線的後續走勢。像往常一樣，我們主要專注於保持新業務預訂的良好勢頭，並維持較高的客戶滿意度和留存率，我們對未來幾年的策略仍然充滿信心。接下來是問答環節。

(Operator Instructions) Our first question comes from Ramsey El-Assal with Barclays.

（操作員說明）我們的第一個問題來自巴克萊銀行的拉姆齊·埃爾-阿薩爾。

This is Owen on for Ramsey. So you're currently entering your open enrollment season for client benefit elections within the PEO. I was wondering if you could talk about trends you're seeing there thus far. You called out some stability in regard to insurance price inflation driving more attach rates. Are you seeing any of this kind of follow through? Any thoughts there might be helpful.

這裡是歐文，代表拉姆齊。你們目前正處於PEO（專業雇主組織）客戶福利選擇的開放註冊期。我想請您談談目前為止觀察到的趨勢。您提到保險價格上漲導致附加費率上升，這方面出現了一些穩定因素。您是否觀察到類似的後續趨勢？您的任何想法都將不勝感激。

Good morning. Go ahead, Don. I was going to say, good morning, Owen. How about I start and I'll let Don chime in. I think the comment would be just to start, we are smack in the middle of our open enrollment season exactly as you suggested. And so it's probably too early to make a call in terms of what that's going to look like from a full year perspective on the retention side. But overall, we have seen a bit, a tiny bit of PEO retention improvement this year, and the compares are getting a bit easier, and we do expect some improvement for the full year. So with that, I'll let Don chime in.

早安.唐，請講。我本來想說，早安，歐文。不如我先開始，唐再補充。我想先說一句，正如你所說，我們正處於開放註冊期的高峰期。因此，現在就全年客戶留存率的情況下結論可能還為時過早。但總的來說，我們今年的PEO客戶留存率略有提高，比較也變得容易了一些，我們預計全年情況會有所改善。那麼，接下來就讓唐補充吧。

No, sorry, I jumped again there. So Maria, thank you. Perfect answer. Thank you.

不，抱歉，我剛才又跳了一下。瑪麗亞，謝謝你。回答得太好了。謝謝。

Great. Super helpful. And then if I may, just on client retention continues to sort of surprise to the upside. I was wondering drivers there. You previously thought potentially fewer bankers fees in the downmarket, but any expectations more longer term might be helpful there?

太好了，非常有幫助。如果可以的話，我想問客戶留存率持續好轉，這讓我有點意外。我想知道背後的驅動因素是什麼。您之前認為市場低迷時銀行家的費用可能會減少，但您認為更長遠的預期會有幫助嗎？

Yes, absolutely. We are very pleased with overall retention results. I think you see that in our revised outlook. You see that in the revision we made last quarter as well. And so just to kind of remind everybody just how well retention is going, fiscal '23 was a record. That record was really driven by the mid-market and international and the downmarket actually did decline a bit in fiscal '23. And we expect pretty much the same outlook, if you will, for full year '24, which is why we still have a down year-on-year retention result. But we're incredibly pleased with overall what we're seeing with the with client retention.

是的，當然。我們對整體客戶留存率非常滿意。我想您在我們修訂後的展望中就能看到這一點。您在我們上個季度的修訂中也能看出這一點。所以，為了提醒大家客戶留存率有多出色，2023財年創下了紀錄。這項紀錄主要得益於中端市場和國際市場的成長，而低端市場在2023財年實際上略有下滑。我們預計2024財年全年情況大致相同，這也是為什麼我們的客戶留存率比去年同期仍然下降的原因。但我們對目前顧客留存率的整體表現感到非常滿意。

That's really being led by a combination of things, one of which is the investments we made into product, the record results we have in terms of client satisfaction. That in and of itself was a record in the third quarter along with retention. So we're very, very pleased with that. As mentioned, there's still downmarket variability and there's downmarket out of business. We haven't seen it thus far this year, but we still expect it to normalize a bit further. And then there's always normal variability in retention. So we believe the retention guide is the appropriate one. But certainly, we're very, very pleased with the record quarter and where we sit with retention thus far this year.

這實際上是多種因素共同作用的結果，其中之一是我們對產品的投入，以及我們在客戶滿意度方面取得的創紀錄成績。第三季度，顧客滿意度本身以及顧客留存率都創下了歷史新高。因此，我們對此非常滿意。正如前面提到的，市場波動依然存在，而且低端市場也存在倒閉的情況。今年到目前為止，我們還沒有看到這種情況，但我們仍然預期它會進一步趨於正常化。此外，客戶留存率也始終存在正常的波動。因此，我們認為目前的留存率預期是適當的。但可以肯定的是，我們對創紀錄的季度業績以及今年迄今的客戶留存率感到非常滿意。

Our next question comes from Bryan Bergin with TD Cowen.

下一個問題來自 TD Cowen 公司的 Bryan Bergin。

This is Zack Ajzenman on for Bryan. First question, I just wanted to dig in on the ES revenue growth affirmation despite the higher retention of PPC views. Heard that you might come in towards the higher end of the range, but perhaps you can elaborate on some of the underlying assumptions and any offset?

我是 Zack Ajzenman，代表 Bryan 提問。第一個問題，我想深入探討 ES 營收成長的確認，儘管 PPC 瀏覽量的留存率更高。聽說你們的預測可能接近預期範圍的上限，能否詳細解釋背後的假設以及任何可能的調整因素？

Yes. So a couple of things, Zach. We already mentioned that retention is in very good shape for us. So certainly, that's been helping and contributing to the revenue growth. And of course, what's changed since last time around, which is making us even more comfortable with saying we're going to be towards the higher end of the range is that client funds interest impact is very good. So I think those are the 2 primary drivers to why we're more confident that we're going to see revenue come in towards the higher end of the 7% to 8% than we perhaps were 90 days ago.

是的。札克，​​有幾點需要說明。我們之前提到過，客戶留存率目前非常高。這無疑對營收成長起到了推動作用。當然，與上次相比，客戶資金的利息收益也顯著提升，這讓我們更有信心預測營收成長率將達到預期區間的較高水準。我認為，正是這兩點主要因素促使我們更有信心，營收成長率將達到7%到8%的較高水平，而90天前我們可能並沒有這樣的預期。

Got it. And a follow-up on demand. ES new business bookings affirmed at 4% to 7% growth. What are the strongest segments of the market? And any notable changes to call out versus the second quarter?

明白了。還有一個後續問題。 ES新業務預訂量確認成長4%至7%。市場中最強勁的細分領域是什麼？與第二季相比，有哪些值得注意的變化？

Sure. So first and foremost, we feel good about the overall demand environment. Companies are still hiring as we saw today, and they're still investing as such in people and HCM. The callouts, I made a few of them during the prepared remarks, but it's really -- the downmarket continues to impress us this quarter, specifically in Retirement Services. So I'd make a callout there. It's quite fantastic to see that story and Retirement Services come together. We talked quite a bit about secular tailwinds in that space based on legislation. That coupled with the investments we've been making and an incredible distribution execution. Really great to see the Retirement Services leading the way.

當然。首先，我們對整體需求環境感到樂觀。正如我們今天所見，企業仍在招聘，並且仍在增加對人才和人力資本管理（HCM）的投資。我在事先準備好的發言稿中提到了一些重點，但本季市場下行情勢依然給我們留下了深刻印象，尤其是在退休服務領域。所以我想特別強調一下。看到退休服務業務的蓬勃發展，真是令人振奮。我們詳細討論了基於相關立法的長期利多因素。再加上我們持續的投資以及出色的分銷執行力，退休服務業務能夠引領產業發展，真的非常值得稱讚。

I think other areas that I would call out that have been remarkably strong is our mid-market as well as international. And so again, similar story to Retirement Services in that it's really a great story coming together between investments and execution and enterprise also was strong for us for the quarter. And then in terms of anything changing broad-based, we haven't really seen anything change in the demand environment. Quite candidly, we feel really, really strong, as suggested by the overall hiring landscape and the labor demand.

我認為其他表現特別強勁的領域包括我們的中階市場和國際業務。與退休服務業務類似，投資、執行和企業業務的綜效也十分出色，本季我們的業績同樣強勁。至於整體市場環境的變化，我們尚未看到任何實質的變化。坦白說，正如整體招聘情況和勞動力需求所反映的那樣，我們感覺市場非常強勁。

Our next question comes from Mark Marcon with Baird.

我們的下一個問題來自 Baird 公司的 Mark Marcon。

Client retention, obviously, really strong. Obviously, your scores continue to go up. Are there any areas that you would call out that are standing out in terms of driving the higher NPS scores and the higher client retention? Anything that you would particularly note?

客戶留存率顯然非常高。很明顯，你們的評分持續上升。在推動 NPS 評分和客戶留存率提升方面，您認為有哪些方面特別突出？有什麼特別值得一提的嗎？

I would say to you, mid-market on both of those. So mid-market is driving strong NPS scores to record highs. The mid-market is driving incredible retention. So that's the one callout. You can probably hear the optimism in my voice there because it's a fantastic story kind of coming together. But I think overall retention is incredibly strong. The midmarket, international in fiscal '23 were very strong. They continue to be strong, but that's really the one callout I would make is the mid-market.

我會說，中端市場在這兩方面都表現出色。中端市場推動了NPS得分飆升至歷史新高。中端市場也實現了驚人的客戶留存率。所以這是我最想強調的一點。你可能聽出了我語氣中的樂觀，因為這確實是一個令人振奮的故事。但我認為整體而言，客戶留存率非常強勁。 2023財年，中端市場和國際市場表現非常出色。他們目前依然保持強勁勢頭，但我真正想強調的還是中階市場。

Great. And then there's -- Maria, there's one area that investors have been asking more about and you have -- you and ADP have the broadest outlook with regards to the space, so I'm asking this on the call. But some people wonder a little bit about saturation. Your new bookings continue to grow, but investors are asking a little bit more about like how much room do we have for new solutions or how many clients have already upgraded cities of that nature. Your results and the results of some of your peers continue to belie the concerns, but I'm wondering if you could address those.

好的。還有一點——瑪麗亞，投資人最近一直在關註一個領域，而你和ADP對這個領域有著最全面的了解，所以我在電話會議上問了這個問題。有些人對市場飽和度有些疑慮。你們的新訂單量持續成長，但投資人更關心的是，我們還有多少空間可以開發新的解決方案，或者有多少客戶已經升級了類似類型的城市。你們以及一些同行的業績持續駁斥了這些擔憂，但我希望你們能就此作答。

Yes, absolutely, Mark. I'll give it a shot and certainly happy to have Don chime in. Maybe he can talk a little bit about our growth opportunity in international. But I think broadly speaking, when you think about the total addressable market of the HCM space and where we all play and we all compete and it's highly competitive, and there's been a lot of investments coming into the space over the past few years. What I would suggest is there's still a tremendous amount of growth and growth upside for all of us. And as you mentioned, we continue to deliver that and the results that we see on the new business bookings side. And so I think overall, there is still runway. There's still plenty of space.

當然可以，馬克。我會盡力，也非常歡迎唐參與討論。或許他可以談談我們在國際市場的成長機會。但總的來說，考慮到人力資本管理（HCM）領域的潛在市場規模，以及我們各自的競爭領域，這個領域競爭非常激烈，而且過去幾年也湧入了大量投資。我認為，對我們所有人來說，這個領域仍然擁有巨大的成長空間和提升潛力。正如您所提到的，我們一直在努力實現這一目標，並且在新業務預訂方面也取得了顯著成果。因此，我認為總體而言，這個領域仍然有很大的發展空間，仍然有很大的發展潛力。

I think the part for us outside of our incredible distribution organization, which has always been a competitive advantage in how we go to market. That distribution is also anchored to our ability to upsell to the base. So you mentioned this ability to upgrade and how much is upgraded and are we all the way there. What I would suggest to you is we're still at about 50% as it relates to new business bookings coming from, call it, new business, net new business versus upgrades, which suggests to me that we still have a tremendous amount of opportunity even within our base. And that's a lot of the focus that we have as an organization, whether it's in the PEO getting smarter about which clients within Employer Services that we target to offer to the PEO or it's the work that we're doing on generative AI to try to get upsell and offering the right product to the right client at the right time.

我認為，除了我們強大的分銷網絡之外，我們最大的優勢在於我們強大的市場競爭力。分銷網絡也仰賴我們向現有客戶追加銷售的能力。您提到了升級能力，以及升級的程度，我們是否已經完全實現了這一目標。我的建議是，目前我們新增業務中，來自新業務（即淨新增業務）與升級業務的比例約為50%，這表明即使在現有客戶群中，我們仍然擁有巨大的發展空間。這也是我們公司目前關注的重點，無論是PEO（專業雇主組織）部門如何更精準地選擇雇主服務客戶，還是我們正在開發的人工智慧產生技術，以期在合適的時間為合適的客戶提供合適的產品，我們都在努力提升客戶追加銷售。

And in my mind, bending the curve and continuing to focus on attach rates, whether that's on the point of sale or on the attach at a later time, it's definitely an opportunity for us to continue to deliver bookings in a very broad market that still has a tremendous amount of opportunity for all of us but moreover, where we continue to execute and deliver on that. So I don't know, Don, if you want to comment a little bit on international in terms of the opportunity there.

在我看來，扭轉頹勢並繼續專注於提高附加率，無論是在銷售點還是之後，這無疑為我們提供了一個機會，讓我們能夠在仍然充滿巨大機會的廣闊市場中繼續獲得訂單，更重要的是，我們能夠繼續執行並實現這些目標。所以，唐，我不知道你是否願意就國際市場的機會發表一些看法。

Yes, perhaps to add a little bit more color. I think we're very -- still very optimistic about growth opportunities beyond the U.S. or the North American market. So Mark, I think we talked before, we're on the ground in 40-plus countries outside of the U.S. We're present in multiple segments in those markets as well. We've got some great things happening in Southeast Asia, where we're rolling out a single platform across beginning in India, but many countries surrounding India in the Southeast Asian market. We're excited. We often talk about the fact that we pay over 1 million people in India every payday, price points are still a bit low, but we expect those things to work for us and work in our favor in the future. So I think still lots and lots of opportunity for ADP from a growth perspective. And certainly, we don't worry about saturation being a limiter to our future.

是的，或許可以再補充一些細節。我認為我們仍然對美國或北美市場以外的成長機會感到非常樂觀。馬克，我想我們之前也談過，我們在美國以外的40多個國家開展業務，並且在這些市場的多個領域都有佈局。我們在東南亞也取得了一些令人振奮的進展，我們正在從印度開始，逐步在東南亞市場（包括印度週邊許多國家）推出一個統一的平台。我們對此感到非常興奮。我們經常提到，我們在印度每個發薪日都會向超過100萬人支付工資，雖然價格仍然偏低，但我們相信這些因素在未來會對我們有利。因此，我認為從成長的角度來看，ADP仍然擁有巨大的發展機會。當然，我們並不擔心市場飽和會限制我們的未來。

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。

I just wanted to go back to some of the early thoughts, Don, that you provided on fiscal '25 and talking about the Gen AI investments, and I think you had mentioned that there could be some margin pressure associated with that. And I just wanted to kind of clarify, were you talking about that potentially leading margins to be down year-over-year? Or are there other offsets with general operating leverage and interest income that can potentially offset the margin pressure from those investments?

唐，我想回顧一下你之前關於2025財年以及Gen AI投資的一些想法。我記得你提到這可能會帶來一些利潤率壓力。我想確認一下，你指的是這些投資可能會導致利潤率較去年同期下降嗎？還是說，一般營運槓桿和利息收入等因素可以抵銷這些投資帶來的利潤率壓力？

Yes, Scott, thanks for the question. I think it's still early. I think the intent here was to give some very early guidance on what '25 could look like. So we still expect to see some improvements in margins. It's just -- do we expect to see as much of an improvement given some of the Gen AI pressures -- expense pressures that we may see. Of course, CFI, at this point in time, depending what the yield curve does. Once again, things have changed a fair bit in the last 90 days. And if I was to -- not that I have a crystal ball, but I don't think many folks right now are expecting anything to change from a rates perspective in the U.S. before September. So I think we're going to get some tailwinds from that. So we're not really trying to signal here -- not signaling a decline in our margins. What we're signaling perhaps is perhaps a slower growth in the margins as we look into '25.

是的，斯科特，謝謝你的提問。我認為現在下結論還為時過早。我們此舉的目的是對2025年的前景給予一些初步的指引。因此，我們仍然預期利潤率會有所改善。只是考慮到一些可能出現的AI世代壓力和成本壓力，我們是否預期利潤率會像預期一樣大幅提升。當然，CFI目前的情況取決於殖利率曲線的走勢。再說一遍，過去90天情況發生了相當大的變化。如果讓我預測——我當然沒有水晶球——但我認為目前很少有人預期美國利率在9月份之前會有任何變化。所以我認為我們會從中獲得一些利多。因此，我們並不是想暗示利潤率會下降。我們或許想暗示的是，展望2025年，利潤率的成長速度可能會放緩。

Got it. Got it. That's super helpful. And then I just wanted to go on to the PEO segment, sort of going back to some of the verticals that we've talked about over the last year and technology and professional services. Just wondering if you can kind of update us on some of the trends you've seen there with pays per control growth. I mean even looking at the employment report that you guys released this morning, it looks like Professional Services is stabilizing and increasing, but technology information kind of seems a little bit choppy. So just wondering if you can kind of talk about trends in the PEO with respect to those verticals.

明白了，明白了，這很有幫助。接下來我想談談PEO（專業雇主組織）部分，回顧我們過去一年討論過的幾個垂直領域，例如技術和專業服務。我想請您介紹一下您觀察到的按控制付費成長方面的一些趨勢。我的意思是，即使看了你們今天早上發布的就業報告，專業服務業似乎正在趨於穩定並持續成長，但科技領域的就業情況似乎有些波動。所以，我想請您談談PEO在這些垂直領域的發展趨勢。

Sure. So if I -- Maria talked a little bit about bookings. I think so we've been -- we were happy with our bookings. They softened a little bit in Q3, but we had a very, very strong Q2 on PEO bookings. If you move on kind of to the PPC growth, back in Q1, it decelerated a little bit more than we anticipated and a significant amount of that deceleration was attributed to the technology and professional services sector. And in Q2, that stabilized. So that was good for us. While there's still some headwinds in PPC, including from technology and service sectors, there were no surprises in Q3. So it's important to note that worksite employee growth accelerated about 1% over Q2 despite the modest incremental pressure we had from PPC pressure. And so -- and that, of course, is a function of the year-to-date booking success that we've had. So nothing really to call out. More stability, if you will, in PPC pressure than we talked about previously.

當然。瑪麗亞剛才稍微談到了預訂情況。我想說的是，我們對預訂情況一直很滿意。第三季預訂量略有下降，但第二季PEO預訂量非常強勁。再來看看PPC成長，第一季成長比我們預期的要慢一些，其中很大一部分放緩是由於技術和專業服務業造成的。第二季情況趨於穩定，這對我們來說是好事。雖然PPC仍面臨一些不利因素，包括來自科技和服務業的阻力，但第三季的情況並無意外。值得注意的是，儘管PPC帶來的壓力略有增加，但工作場所員工人數的成長比第二季加快了約1%。當然，這得益於我們今年迄今的預訂業績。所以沒什麼特別要強調的。可以說，PPC壓力比我們之前討論的更加穩定。

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。

Anything on the pricing side worth sharing, Maria? Just thinking about some of the peer commentary out there. Any callouts or interesting observations?

瑪麗亞，定價方面有什麼值得分享的嗎？我正在考慮一些同行的評論。你有什麼特別需要指出的地方或有趣的見解嗎？

In terms of -- from a standpoint of our price or pricing in the market from a...

從價格或市場定價的角度來看…

Yes, your pricing or as you're thinking about resetting prices as you go into the usual seasonal time changes -- price changes, any thoughts there, both for renewals as well as new deal bids?

是的，關於定價，或者說，當您考慮隨著季節性時間變化而調整價格時——價格變化，您有什麼想法嗎？無論是續約還是新交易出價？

Yes, absolutely. So I think my general sentiment and then Don can give the kind of a little more directional. But my general sentiments around price remain that we're very thoughtful and very measured as it relates to how we think about price, whether that's on the new business side or it's on the renewal side, as you mentioned. And so for us, it's about understanding kind of by segment. So you heard my commentary in the prepared remarks just how broad and deep and diverse ADP is with respect to our client base. As you can imagine, we think about a downmarket price increase differently than perhaps in enterprise. Some of those are also long-term contracts that have indexes attached. And so all of that lends itself to a very surgical approach, right, to ensure that the price value equation remains the right one for the market and for our clients.

是的，當然。所以我覺得我的整體看法是，唐可以給一些更有針對性的建議。但我對價格的總體看法仍然是，我們在考慮價格時非常謹慎和周全，無論是在新業務方面還是續約方面，正如您所提到的。因此，對我們來說，關鍵在於了解各個細分市場的情況。您在我事先準備好的發言稿中也聽到了我對ADP客戶群的廣泛性、深度和多樣性的闡述。您可以想像，我們對低端市場價格上漲的看法可能與企業級市場有所不同。有些企業級市場也簽訂了附帶指數的長期合約。因此，所有這些都促使我們採取非常精準的定價策略，以確保價格價值始終符合市場和客戶的利益。

And obviously, at the same time, what we're doing is also monitoring what's happening in the HCM space with respect to the peer group and pricing overall. And I would say from a competitive lens, we haven't seen anything unusual as it relates to price from us or the others, even though it continues to be a highly competitive environment, and so as such, our approach this year to price, which I'll let Don comment on, has been very thoughtful, and I would expect us to take that same measured approach as we head into '25.

顯然，同時，我們也密切關注HCM領域同業以及整體定價的動態。從競爭角度來看，儘管市場競爭依然激烈，但我們本身以及其他公司在價格方面並沒有出現任何異常情況。因此，我們今年的定價策略（具體內容請Don詳細介紹）非常謹慎，我預計在2025年我們將繼續採取這種穩健的策略。

Yes. So pricing -- the price increase this year was relatively well received. We're in the 100, 150 basis point range. We're closer to the 150. So happy with where we're at. But back to Maria's comments, we're in the middle of our planning cycle right now, and we'll look very carefully at that whole value equation, making sure that we keep our retention up. Our NPS is supporting that. And we'll make sure that we're mindful and thoughtful about what we do with pricing going forward.

是的。關於定價－今年的價格上漲反應不錯。我們目前的價格在100到150個基點之間，更接近150個基點。所以對目前的定價狀況很滿意。回到瑪莉亞的評論，我們目前正處於規劃週期的中間階段，我們會非常仔細地審視整個價值體系，確保顧客留存率保持在高位。我們的淨推薦值（NPS）也支持這一點。未來，我們會謹慎思考並妥善處理定價策略。

Yes. I'm sure you'd be thoughtful about it. Just on the Gen AI front, I respect the investments there. I'm curious if you were to classify it as either driving expense efficiency versus driving better sales efficiency. What are you really aiming for with some of these investments here for fiscal '25?

是的，我相信您會認真考慮的。就人工智慧領域而言，我很尊重你們的投資。我很好奇，您會如何定義這些投資：是旨在提高成本效率，還是旨在提高銷售效率？對於2025財年，你們在這些投資中究竟有哪些目標？

Both. The answer is both. So I think it's really about solving for, again, all of the users that interact with ADP, right? So if you think about all the personas, our clients, our clients' employees, and our service agents, our sellers, it's really about putting Gen AI in each -- in every part of our ecosystem. So in terms of what are we solving for? The answer is both. We're trying to drive greater service efficiency. I think we've proven out that through digital transformation and taking friction out of our products and making those investments, we have the ability to drive up our NPS results and record client satisfaction tends to lead to similar record retention. So definitely working on ensuring that we're driving up retention.

兩者兼具。答案是兩者兼具。所以我認為，這實際上是為了解決所有與ADP互動的用戶的問題，對吧？想想所有使用者角色，包括我們的客戶、客戶的員工、我們的服務人員和銷售人員，關鍵在於將Gen AI融入我們生態系統的每個環節。那麼，我們究竟在解決什麼問題呢？答案是兩者兼具。我們致力於提高服務效率。我認為，我們已經證明，透過數位轉型、消除產品中的摩擦並進行相關投資，我們能夠提升淨推薦值（NPS），而客戶滿意度的提升往往也會帶來客戶留存率的提高。因此，我們正在努力確保提高客戶留存率。

Obviously, the more happy clients we have, the easier it is for our sellers. We're also investing in degenerative AI for our sellers to become more productive. So it is about service productivity, it's about seller productivity. It's about client experience. Client experience lends itself to retention. So I guess it's just one happy virtuous cycle, but I think our answer or my answer is both and all of it is what we hope to gain.

顯然，客戶滿意度越高，我們的銷售人員工作就越輕鬆。我們也正在投資人工智慧技術，幫助銷售人員提高效率。所以，這關乎服務效率，關乎銷售人員效率，也關乎顧客體驗。良好的客戶體驗有助於提高客戶留存率。因此，我認為這是一個良性循環，但我認為我們的答案，或者說我的答案，是兩者兼顧，而這正是我們希望實現的。

Now again, kind of back to the investments we're making and what Don alluded to in terms of any pressure we would have with respect to margin on those investments. Some of these investments, we know they're the right thing for ADP, but they will take time to ultimately garner all of the results in all of these categories that I just mentioned. And so as it stands today, we have some really exciting things that we're seeing. If you think about something like call summarization that I've spoken about in the past and we're shaving off roughly a minute per call, that doesn't probably sound that exciting. But if you think about a minute per call over time and you think about how many calls we take broadly across ADP in a given year. The math lends itself to overtime tremendous efficiency and again, hopefully, a better experience, right? So I think the answer is all of it. We're solving for all of it.

現在，我們再回到正在進行的投資，以及唐提到的這些投資可能帶來的利潤壓力。我們知道其中一些投資對ADP來說是正確的，但它們需要時間才能最終在剛才提到的所有方面都取得成效。就目前而言，我們看到了一些非常令人振奮的成果。例如我之前提到的通話摘要功能，我們每次通話大約可以節省一分鐘，這聽起來可能沒那麼令人興奮。但如果你考慮到每次通話節省一分鐘的時間，再想想ADP每年要處理多少通電話，你會發現，隨著時間的推移，這將帶來巨大的效率提升，而且我們希望也能帶來更好的客戶體驗。所以我認為答案是：我們正在解決所有這些問題。

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。

It's Michael Infante on for James. Just one for me today. You mentioned coming in at the higher end of the range on ES for the full year, which makes sense given some of your commentary on bookings strength, better retention, pays per control improvement in the flow benefit that we're seeing. But given all of those factors, it looks like ES in the quarter came broadly in line with our expectations despite all of those tailwinds. So I'm curious, given your commentary about price coming in towards the higher end of your historical range, what does that imply just in terms of what you're seeing on the net new side as well as cross-sell and upsell.

我是 Michael Infante，今天替 James 回答問題。我今天只回答一個問題。您提到 ES 全年業績預期接近區間上限，考慮到您之前對預訂量強勁、客戶留存率提高、按次付費控制改善以及我們目前看到的流量收益的評論，這確實合情合理。但即便如此，ES 本季的表現似乎基本上符合我們的預期，儘管有許多利好因素。所以，我很好奇，鑑於您提到價格接近歷史預期區間上限，這對於您目前觀察到的新增客戶、交叉銷售和向上銷售情況意味著什麼。

Yes, Michael, thanks for the question. I think that first of all, the price, there's no change in that. I think we've been calling that out for most of the year, certainly in the 1 to 150 range. So not much of an incremental impact, if you will, for Q4 and therefore, for the year in total. So not a lot of change from that. Yes, I mean bookings, we called out, we're still in the hunt for delivering on the range as we declared, so we're still in that. So -- but not really a lot to drive incremental revenue other than some of the float. But as the year shortens or we have fewer months days left in the year, the impact from higher CFI is going to be somewhat muted as we look to finish the year.

是的，邁克爾，謝謝你的提問。首先，價格方面，我認為沒有改變。我們今年大部分時間都在強調這一點，價格區間肯定在1到150之間。所以，第四季乃至全年，價格都不會有太大的增量影響。因此，價格方面沒有太大變化。是的，我的意思是，關於預訂量，我們之前已經說過，我們仍在努力實現我們承諾的交付目標，所以我們仍然在努力。因此，除了部分浮動資金外，並沒有太多因素能真正推動營收成長。但隨著年底臨近，或者說我們剩下的時間越來越少，更高的CFI（累計首付）帶來的影響將會逐漸減弱，尤其是在我們展望年底的時候。

Michael, it's Danny. If you're wondering whether there is some offset somewhere else, there's a little bit from FX moving adversely relative to our prior expectations.

麥可，我是丹尼。如果你想知道是否還有其他抵消因素，那麼外匯走勢與我們先前預期的相比略有不利影響。

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。

Maria, Don, you gave a great explanation of the wallet share opportunity that's still left earlier, PEO, propensity modeling with Gen AI and then international. I want to dig into the international side a little bit, particularly some of the newer markets that you're getting into. Just hoping if you can give us a bit of a progress report on a lot of the last-mile infrastructure that you've been putting in place, go-to-market ramping that up. And I'm just curious should we think of like the deployment of Pi, the next-gen payroll engine in international is a real catalyst for the next lag of bookings growth.

Maria，Don，你們之前對錢包份額的提昇機會、PEO、基於Gen AI的傾向性建模以及國際市場都做了非常精彩的講解。我想更深入地了解國際市場，特別是你們正在開拓的一些新興市場。希望你們能簡要匯報一下你們正在建設的「最後一公里」基礎設施的進展情況，以及市場推廣的加速進程。另外，我很好奇，像Pi（下一代薪資引擎）這樣的產品在國際市場的部署，是否會成為下一輪預訂量成長的真正催化劑。

Yes. Thanks, Pete. I think that was a solid like 3, 4 questions in one. So I will -- I'll do my best to weave through it here. But as Don mentioned, we're on the ground in 40 countries. We do payroll across 140 countries, inclusive of our partner network. In terms of the final mile or the last mile, as you referenced, the first thing I would comment on is we've been building that for 50 years, right? So when I think about international and everything we've done over the course of decades to build that infrastructure, it's a tremendous lead is what I would suggest, and you see that in our international bookings results, right?

是的，謝謝，皮特。我覺得你一下子問了三、四個問題。我會盡力一一回答。正如唐所提到的，我們在40個國家都有業務。包括我們的合作夥伴網絡在內，我們在140個國家進行薪資發放工作。說到你提到的“最後一公里”或“最後一公里”，我首先要說的是，我們已經為此努力了50年，對吧？所以，當我想到國際業務以及我們幾十年來為建立這項基礎設施所做的一切時，我認為這是一個巨大的領先優勢，這一點從我們的國際預訂業績中就能看出來，對吧？

So we had a nice first quarter in international. We accelerated that in the second quarter. We had an even better Q3. A lot of that is being driven by our multinational growth. So think about our Celergo offering our GlobalView offering. These were especially strong for us in the third quarter. And I do believe it's the overall demand environment, coupled with our on-the-ground strategy, if you will. And by the way, the international pipelines remain healthy, and we believe it's going to position us for a solid Q4, but also next year.

我們第一季的國際業務表現不錯，第二季加速成長，第三季更是取得了更好的成績。這主要得益於我們的跨國業務成長。例如，我們的Celergo產品和GlobalView產品在第三季表現特別強勁。我認為這得益於整體市場需求環境以及我們切實有效的市場策略。此外，我們的國際業務儲備依然充足，我們相信這將為第四季以及明年的穩健發展奠定堅實的基礎。

In terms of where we continue to expand I mentioned that in my prepared remarks, Asia Pac or APAC is something that our Asia business has been relatively modest, but we see significant growth over time. Obviously, that growth is a direct byproduct of our clients' demand growth as it relates to the activities of our clients and where they're moving associates and where they're moving business. So we believe that continuing to lean into Asia Pac is important for us.

關於我們未來的發展方向，我在先前的發言稿中提到過，亞太地區（簡稱亞太區）是我們業務發展相對溫和但成長顯著的地區。顯然，這種成長直接源自於客戶需求的成長，包括客戶業務的拓展、人員調配以及業務擴張。因此，我們認為繼續加大對亞太地區的投入至關重要。

And so as a result of that, we kind of are continuing to lean in there. I think we mentioned last quarter the acquisition of a company in the Nordics, specifically in Sweden. So that's an area that also is a high-growth area from a client perspective. And so I think our strategy over time has been as we get further into a country and we see the demand at times we will fold in our partners, and you've seen that, obviously, in the Nordics. You've seen that in many countries prior to that. But that ecosystem is vast across 140 countries. It's decades of building that final mile. It's a clear competitive differentiator in the market. You can feel, see and it's really palpable.

因此，我們正持續加大投入。我想我們上個季度提到收購一家北歐公司，具體來說是瑞典的公司。從顧客角度來看，北歐也是一個高成長地區。所以，我認為我們一直以來的策略是，隨著我們在一個國家/地區業務的深入，當我們看到市場需求時，我們會整合我們的合作夥伴。顯然，您在北歐已經看到了這一點。在此之前，您也在許多國家/地區看到了這一點。但這個生態系覆蓋140個國家/地區，規模龐大。這是幾十年來建造的「最後一公里」。這在市場上是一個明顯的競爭優勢。您可以感受到，也能看到，而且確實非常明顯。

On the heels of the last earnings call, I was actually over at our Rethink event, which is where we bring together a few hundred of our very largest global MNC clients and the spirit of how we're executing in that market is really palpable when you hear it directly from our clients. And I believe it's a tremendous opportunity for us to continue to drive growth. So I think I covered all of that, Pete.

上次財報電話會議結束後，我正好參加了我們的「重新思考」活動。在這個活動上，我們匯集了數百家全球最大的跨國公司客戶。當你直接聽到客戶的回饋時，你會真切地感受到我們在市場上的執行力。我相信，這對我們來說是一個絕佳的機會，可以繼續推動成長。我想我已經把這些都講完了，皮特。

Just a quick follow-up. Do you think that the deployment of Next Gen Payroll is a catalyst for go-to-market in some of those newer markets?

還有一個後續問題。您認為下一代薪資系統的部署是否會成為企業在一些新興市場拓展業務的催化劑？

Yes, of course. So Next Gen Payroll, for sure, our intent is to continue to drive Next Gen Payroll across various international markets. We have it deployed in a few of our markets today. And that, coupled with these offers that again have the lead of Celergo and GlobalView over time will just further the growth narrative and the story over there, but that is absolutely the intention and the strategic direction of Next Gen Payroll.

當然。所以，下一代薪資管理系統（Next Gen Payroll）的目標很明確，我們將繼續在各個國際市場推廣它。目前，我們已經在部分市場部署了該系統。此外，隨著 Celergo 和 GlobalView 等公司不斷推出相關產品和服務，該系統必將進一步推動其發展，並鞏固其在國際市場的地位。這絕對是我們推廣下一代薪資管理系統的目標和策略方向。

Our next question comes from Ashish Sabadra with RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場的 Ashish Sabadra。

This is David Paige on for Ashish. It's great to hear about your results and growth in the mid-market verticals. I was wondering if you could just give a little bit of an overview on the competitive landscape there? Are you guys taking share or the entire market corner. Just what's the outlook or the environment in terms of competition in the market?

這裡是David Paige，代表Ashish連線。很高興聽到你們在中端市場垂直領域的業績和成長。我想請你們簡單介紹一下該領域的競爭格局？你們是佔據了市場佔有率還是整個市場？市場競爭前景如何？

Yes, absolutely. So the mid-market is a great segment for us. It's certainly not getting any easier to be an employer in the mid-market. It's littered with complexity and all sorts of challenges to navigate. Just even if you look at the last 30 days, you can see legislation that mid-market employers are having to navigate. And so it's a strong market. It is a highly competitive space. That's not new.

是的，當然。所以，中端市場對我們來說是一個非常重要的市場區隔。當然，在中端市場當雇主越來越難了。這個市場充滿了各種複雜情況和挑戰。即使只看過去30天，你也能看到中階市場雇主必須應付的各種法規。因此，這是一個強勁的市場，競爭非常激烈。這並非什麼新鮮事。

I think for -- from a competitive landscape perspective, it's always been competitive. And I don't know that we've seen a noticeable changes in the competitive landscape. What we have seen is incredible distribution, execution, incredible satisfaction, execution on our end. We've made great investments into the product set. It's winning in the market. You marry that strategy with great execution on the seller side and great execution on the retention side. That, to me, is what's changing in the mid-market is that we've gotten stronger.

我認為，從競爭格局的角度來看，競爭一直都很激烈。而且，我並不認為競爭格局發生了顯著變化。我們所看到的是，我們擁有了令人難以置信的分銷管道、高效的執行力、極高的客戶滿意度以及我們自身的卓越表現。我們對產品組合進行了大量投資，並在市場上取得了成功。我們將這項策略與銷售端和客戶留存端的出色執行力結合。在我看來，這就是中端市場正在發生的變化——我們變得更強大了。

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

下一個問題來自美國銀行的傑森·庫柏伯格。

This is Caroline Latta on for Jason. Sorry to double down on price, but just given the way inflation isn't dropping off maybe the way the market was hoping or expecting recently, do you have any updated expectations about ADP and like the broader peer group's ability to raise pricing heading into the fourth quarter and 2025 without like significant pushback?

這裡是卡洛琳·拉塔，替傑森提問。很抱歉再次強調價格問題，但鑑於通膨並未像市場近期預期的那樣下降，您對ADP以及其他同行在第四季度和2025年提價的能力有何新的預期，能否避免遇到重大阻力？

Caroline, thanks for the question. I think it just comes -- continues to come back to the same concepts, and that's making sure that we offer good value to our customers over a 10-plus-year lifespan. So we're always mindful of making sure that clients are getting good value and that we keep those clients for a very, very long time. So it's that client life cycle of the total return on the entire life of a client. So we're always very, very careful not to overstep on pricing. Having said that, we, of course, watch what the competition is doing. We have our ear to the ground. Our salespeople have their ear to the ground.

卡羅琳，謝謝你的提問。我認為問題歸根究底還是在於同一個理念，那就是確保我們在長達十年以上的客戶生命週期中都能為客戶提供良好的價值。因此，我們始終專注於客戶能否獲得應有的價值，並努力長期留住這些客戶。這就是客戶生命週期，也就是客戶整個生命週期的總回報。所以我們始終非常謹慎，避免定價過高。話雖如此，我們當然也會密切注意競爭對手的動向。我們時時刻刻關注著市場動態，我們的銷售人員也是如此。

We're trying to make sure and understand what's happening from the competition. So we will continue to look at it. We'll continue to knock around some ideas and some models and see what the impact could be. But I don't want to signal exactly what we think we're doing because we're still, as I said earlier, in the midst of our planning cycle here. But we always look at it. We take price usually every year where we can, not including some of the contractual commitments we have with some of our larger clients, but it's just something we're very, very careful and cautious about doing.

我們正在努力了解競爭對手的動向，所以我們會持續關注。我們會繼續探討一些想法和模型，看看可能會產生什麼影響。但我不想透露我們具體的計劃，因為正如我之前所說，我們目前仍處於規劃週期中。不過，我們始終都在關注市場動態。通常情況下，我們會每年盡可能進行價格評估，當然，我們會將與一些大客戶簽訂的合約條款排除在外。總之，我們在這方面非常謹慎小心。

And our last question comes from Kartik Mehta with Northcoast Research.

最後一個問題來自 Northcoast Research 的 Kartik Mehta。

Maria, as you look at the mid-market and the success ADP is having, who are you winning market share from? Is it traditional payroll companies? Is it companies that are maybe using other software products that you wouldn't consider payroll companies? I'm just wondering where the success is coming from.

瑪麗亞，你觀察中端市場以及ADP的成功，你覺得你們是從哪些方面贏得市場份額的？是傳統的薪資管理公司嗎？還是那些使用其他軟體產品、你可能不會將其歸類為薪資管理公司的企業？我只是好奇你們的成功究竟來自哪裡。

Everywhere. Candidly, listen, from a mid-market perspective, again, the demand is healthy. The competitive environment is competitive, and we continue to remain laser-focused on all of the competitors, specifically the ones that have been talking a lot about us over the last few years. And I think the way that we've been focused is really about the investments we've made, investments into a best-in-class product. investments into focus on distribution, investments into digital transformation that's driving great client satisfaction. And so that really has allowed us to have a winning story as it relates to really all of the players.

到處都是。坦白說，從中端市場的角度來看，需求依然強勁。競爭環境也十分激烈，我們始終密切關注所有競爭對手，尤其是過去幾年對我們大加撻伐的那些公司。我認為我們之所以能夠保持專注，是因為我們進行了大量的投資，包括打造一流產品、專注於分銷管道以及進行數位轉型，從而顯著提升客戶滿意度。正是這些舉措，讓我們在與所有競爭對手的較量中都取得了成功。

And then just one follow-up. Just on the PEO business, as you look at the long-term growth perspective of that business, obviously, there's been a couple of things that happened that maybe have slowed the growth down in the last year or so. I'm wondering just your outlook on the PEO business and if you think anything has changed in that business or demand for the product.

還有一個後續問題。關於PEO業務，從長遠成長的角度來看，顯然，過去一年左右發生了一些事情，可能減緩了成長速度。我想了解您對PEO業務的看法，以及您認為該業務或產品需求是否發生了任何變化。

Yes. So I'm happy to start and certainly happy to have Don chime in too on the PEO. I'm always very, very bullish on the PEO value proposition. I've been close to that business for a long time, and I will tell you it's stronger than it's ever been. So despite the strangeness that we've had in the PEO from a kind of the componentry heading into the pandemic, during the pandemic, after the pandemic and then now, call it, a little bit post, post pandemic. What I would suggest to you is it has nothing to do with the fundamentals of that business and what we would expect over time from a growth perspective long term. And so the value proposition is strong. Nothing from our end has changed there as it relates to the overall demand from the business. And we see that just in the -- we continue to have 50% of our clients into the PEO coming from the base. So it's resonating with our existing clients. It's resonating with the open market, and it continues to be a very strong offering for us. So I don't know, Don, if you want to add anything there?

是的。我很樂意開始今天的分享，也很高興唐能就PEO（專業雇主組織）發表看法。我一直非常看好PEO的價值主張。我長期關注這個行業，我可以負責任地說，它現在比以往任何時候都更強大。儘管在疫情爆發前、疫情期間、疫情後以及現在，姑且稱之為後疫情時代，PEO業務的組成部分出現了一些波動，但我認為這與該業務的基本面以及我們從長期增長角度預期的發展趨勢無關。因此，PEO的價值主張依然強勁。就我們而言，PEO的整體需求並沒有任何改變。我們看到，我們仍然有50%的PEO客戶來自現有客戶。這不僅引起了現有客戶的共鳴，也引起了公開市場的共鳴，而且它仍然是我們非常強大的產品。所以，唐，我不知道你是否還有什麼要補充的？

Nothing to add other than the value proposition is as strong as ever, and the fundamentals in the business are -- continue to be quite strong.

除了價值主張依然強勁之外，沒有什麼可補充的，而且業務基本面也依然非常強勁。

We have one more question from Dan Dolev with Mizuho.

我們還有一個來自瑞穗銀行的 Dan Dolev 的問題。

Apologies, I was on a different call. But I know it's kind of maybe early, but do you have any news about the next -- your next fiscal year, maybe something like early views as we head into the fourth quarter?

抱歉，我剛才在參加另一個電話會議。我知道現在問這個問題可能有點早，但您能否透露下一個財年的情況，例如在進入第四季度之前的一些初步展望？

Yes. Dan, just a couple of things, thinking about next year. We do think that it's early, so we didn't share too much, although we did say that the pays per control will continue to be under a little bit of pressure, given the fullness of the labor market. So that's kind of continuing story that we've been telling. We will continue some of our Gen AI-related spending, making the right investments for ADP. And of course, we're going to get some tailwind from interest rates. So I think those are the 3 primary things. And of course, we always remain very, very focused on bookings and our strong client retention and client experience. So I think those would be the highlights for '25.

是的，丹，關於明年，有幾點需要說明。我們認為現在談論這些還為時過早，所以沒有透露太多，不過我們確實提到，鑑於勞動力市場供過於求，每個控制點的薪酬將繼續面臨一些壓力。這其實是我們一直在強調的。我們將持續增加與人工智慧相關的投入，為ADP做出正確的投資。當然，利率的下降也會為我們帶來一些利多。我認為這三點才是重點。當然，我們始終非常重視訂單量、客戶留存率和客戶體驗。我認為這些將是2025年的亮點。

There are no further questions. I'd like to turn the call back over to Maria Black for any closing remarks.

沒有其他問題了。現在我把電話轉回給瑪麗亞·布萊克，請她作總結發言。

Yes. Thank you, and thank you once again to everyone who joined us today, whether the full time or late. We always appreciate the questions, the interest and we certainly look forward to speaking with all of you again soon and look forward to the close of the year. Thanks.

是的。謝謝大家，也再次感謝今天所有參與的朋友們，無論你們是全程參與還是遲到。我們一直都很感謝大家的提問和關注，也期待很快能再次與大家交流，並期待年底的到來。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。