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.我叫米歇爾，我將擔任您的會議操作員。此時，我謹歡迎大家參加 ADP 2024 年第三季財報電話會議。我想通知您，本次會議正在錄製中。 （操作員指示）我現在將電話轉給投資者關係副總裁 Danyal Hussain 先生。請繼續。

Thank you, Michelle, and welcome everyone to ADP's 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.

謝謝米歇爾，歡迎大家參加 ADP 2024 年第三季財報電話會議。今天參加會議的有我們的總裁兼執行長瑪麗亞·布萊克 (Maria Black)；還有我們的財務長唐·麥奎爾。今天早些時候，我們發布了本季的業績。我們的獲利資料可在 SEC 網站和投資者關係網站 Investors.adp.com 上取得，您也可以在其中找到今天電話會議附帶的投資者簡報。

During our call, we will reference non-GAAP financial measures, which we believe to be useful to investors and that exclude the impact of certain items. A description of these items along with the reconciliation of non-GAAP measures to the most comparable GAAP measures can be found in our earnings release.

在我們的電話會議中，我們將參考非公認會計準則財務指標，我們認為這些指標對投資者有用，並且排除了某些項目的影響。這些項目的描述以及非公認會計準則指標與最具可比性的公認會計準則指標的調節可以在我們的收益報告中找到。

Today's call will also contain forward-looking statements that refer to future events and involve some 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涉及未來事件並涉及一些風險的前瞻性聲明。我們鼓勵您查看我們向 SEC 提交的文件，以獲取有關可能導致實際結果與我們當前預期存在重大差異的因素的更多資​​訊。我現在把它交給瑪麗亞。

Thank you, Danny, and thank you, everyone, for joining us. This morning, we reported strong 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，也謝謝大家加入我們。今天上午，我們報告第三季營收強勁成長 7%，調整後稀釋每股收益成長 14%，因為我們繼續在實現策略重點方面取得進展，而且勞動力市場和整體 HCM 業務環境保持穩定。

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.

我將首先回顧本季的業績，並簡要介紹我們的策略，然後將其交給 Don，向您介紹我們的最新前景，並分享明年的一些早期考慮因素。在第三季度，我們的雇主服務新業務預訂增長強勁，達到了第三季度的創紀錄預訂量，使我們的全年前景保持在正軌上。我們的小型企業投資組合保持了成長勢頭，其中退休服務產品的成長尤為強勁。在第三季度，我們在中端市場、企業和國際業務中也取得了強勁的預訂業績。憑藉穩定的需求背景和健康的新業務管道，我們將專注於在今年剩餘時間內繼續執行。

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.

第三季雇主服務保留率非常強勁，再次超出了我們的預期，在我們的中端市場業務的帶動下，也達到了第三季的新紀錄水平。我們的整體保留率繼續受益於對關鍵平台的持續投資以及我們對提供卓越客戶體驗的承諾，這共同幫助我們的客戶滿意度得分在第三季度達到了歷史新高。

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.

我們的雇主服務薪酬按控制增長穩定在 2%，反映了美國整體勞動力市場的彈性以及我們的客戶繼續以適度的速度增加勞動力的事實。儘管這些客戶的招募活動低於正常水平，給我們帶來持續的短期壓力，但第三季我們的 PEO 收入成長 5%，符合我們的預期。

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.

繼續進行更廣泛的更新。我們繼續推進我們的3 個策略重點：以最好的HCM 技術、無與倫比的服務和專業知識以及更廣泛的規模為主導，最終不僅為我們產品的購買者，而且為與ADP 合作的每個人提供盡可能最佳的體驗。我們進行投資的目的是為了深入了解並為大量角色提供價值，從依賴我們的小企業主到全球最大企業的人力資源專業人員和高管，再到世界各地使用我們解決方案的數百萬員工和零工工人面向註冊會計師、銀行、經紀人和其他主要合作夥伴，面向我們數千名專注的服務和實施人員，以及每天在市場上代表 ADP 的賣家。

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.

正是考慮到這些角色，我們繼續推進我們的戰略重點，並在第三季度取得了穩步進展。我們的首要任務是引領一流的 HCM 技術。在過去的幾個季度中，我們一直在推出 ADP Assist，作為提醒，它將嵌入到我們的關鍵平台中，並利用 Gen AI 為我們的客戶提供見解、幫助決策並簡化日常任務。

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.

在第三季度，我們非常高興開始試點一項新功能，該功能使我們的小型企業客戶不僅能夠利用Gen AI 來回答問題並更好地了解如何啟動人力資源行動（我們在最近幾季中概述了這一點），而且實際上允許他們發出命令來完成該人力資源行動。例如，使用者現在可以輸入「我需要重新僱用 Alex」或「我想給 Alex 請假」並加快完成該工作流程。

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.

我們的第二要務是提供無與倫比的專業知識和外包。我們繼續將 Gen AI 功能擴展到更廣泛的服務人員。在第三季度，我們開始為一些實施團隊推出新工具。現在，他們可以使用 Gen AI 獲取非結構化客戶員工數據，減少手動數據輸入並最大限度地減少實施過程中的錯誤。雖然現在還為時過早，但我們對其潛在的好處感到興奮。

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透過我們的全球規模使我們的客戶受益。 ADP Marketplace 仍然是我們的差異化因素，也是我們的客戶與 HCM 領域的領導者合作而獲得的好處的完美範例。隨著我們數百個合作夥伴中越來越多的合作夥伴提供人工智慧解決方案，在第三季度，我們制定了ADP Marketplace 人工智慧原則，要求我們的合作夥伴致力於管理我們自己的產品的相同類型的負責任的人工智慧原則，包括人工監督、監控、可解釋性和減輕偏見。

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.

我們的客戶對我們給予了極大的信任，這是 ADP 如何努力確保在整個 ADP 生態系統中負責任地使用人工智慧的另一個例子。我們也持續擴大我們市場領先的全球規模。第三季度，我們的IHCM 平台上的受薪員工人數達到100 萬人，該平台在歐洲多個國家繼續擴大規模，我們在亞太地區的業務發展方面取得了進一步進展，最近我們一直在該地區擴大國內薪資規模和勞動力管理在許多市場的存在。

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，我們將慶祝成立 75 週年，我們為將自己打造成一個對雇主、員工和更廣泛的工作世界真正重要的品牌而感到自豪。我們對策略優先事項的關注使我們能夠為超過 100 萬現有客戶和數以萬計的新客戶提供比以往更多的價值，我們每個季度都歡迎 ADP 大家庭的加入。

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.

我想重點介紹第三季贏得的一些新客戶，讓您了解我們為他們提供價值的各種方式。在美國的小型企業中，我們的一位註冊會計師合作夥伴向我們推薦了一家新的精品甜甜圈店。客戶選擇 ADP 是因為我們 RUN 平台的實力、我們優質服務的聲譽、我們與註冊會計師的牢固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.

由於這是第一次小企業主，我們的銷售團隊甚至花時間幫助企業主以正確的方式建立他們的業務，從指導客戶獲得州稅號到確保客戶獲得適當的工人賠償保險。在美國中端市場，我們贏得了一家康復中心的多州營運商。該客戶對其先前的 HCM 提供者並不滿意，事實證明 Workforce Now 更適合。

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ADP Marketplace 合作夥伴在轉向ADP 的決定中發揮了關鍵作用，他們獨立強調了我們在易於整合方面提供的優勢，這是我們在過去幾年中投資的一項能力。

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.

在美國企業中，我們歡迎一家大型豪華度假村，該度假村在現場經營多家酒店、餐廳和零售店，並對先前提供者的客戶服務水平不滿意。客戶對無縫 ADP 實施（包括為其人力資源團隊進行現場培訓）感到非常滿意，因此他們加快了福利、招聘、入職、工資扣發和稅收抵免等附加功能的計劃。

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.

在我們的國際業務中，最近的一項勝利是一家領先的航空公司在某些國家/地區使用 ADP，並要求我們幫助更好地制定其全球薪資策略。最終，他們將我們的服務範圍擴大到另外 18 個國家/地區，並於第三季開始推出，並計劃在明年增加其他國家/地區，以實現真正的綜合全球報告和分析。

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.

最後一個例子是，我們的 HRO 團隊在其領導團隊意識到該公司缺乏充分吸引和留住合適人才所需的人力資源基礎設施後，創辦了一家總部位於紐約的設計公司。他們向我們的 PEO 產品尋求真正全面的支持，並被我們產品的廣度所吸引，其中包括 MyLife Advisors 計劃等功能，該計劃為員工製定福利和其他重要的人生決策提供支持。

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.

我們也建議該客戶制定全面的福利策略，以支援其多代員工隊伍並幫助他們吸引成長所需的人才。從這些例子中您可以看出，我們的技術、專業知識和整體廣度的結合往往能引起這些企業的共鳴。結果是我們的客戶群令人難以置信的多樣性和有彈性的整體業務模式。

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.

我們期待在未來的市場中投入並提供更大的差異化。整體而言，我們對第三季強勁的財務和策略成果感到滿意。我要感謝我們的員工，他們繼續為我們的客戶提供卓越的產品和服務，他們的努力推動了這些客戶的贏得和保留。再次感謝您為 ADP 和我們的客戶所做的一切。現在我會把它交給唐。

Thank you, Maria, and good morning, everyone. I'll provide more color on our results for the quarter 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.

謝謝你，瑪麗亞，大家早安。我將提供更多有關本季業績和更新的 2024 財年展望的資訊。整體而言，我們的第三季業績強勁，綜合收入成長和調整後的息稅前利潤率略高於我們的預期。自我們上次提供全年展望以來，利率背景有所改善。因此，我們正在更新對此的展望，並進行一些其他更改，我將詳細介紹這些更改。

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.

我將從雇主服務開始。 ES 部門的營收在報告基礎上成長了 8%，在有機固定匯率基礎上成長了 7%。正如瑪麗亞分享的那樣，我們在 ES 新業務預訂方面取得了良好的季度表現，我們的客戶群實現了廣泛的成長。繼去年的強勁表現之後，我們在第四季度面臨著艱難的比較，但憑藉穩定的 HCM 需求環境和健康的管道，我們感覺有望實現今年 4% 至 7% 的新業務預訂成長前景。

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 Maria 之前提到的，我們的 ES 保留率超出了我們的預期，比去年略有增加。鑑於我們持續強勁的保留表現，我們略微提高了全年保留前景。我們現在預計全年保留率將下降 20 至 30 個基點，這比我們先前的預測要好。第三季度，ES 按控制付費成長穩定在 2%，我們現在預計今年成長將達到 2% 左右，這是我們之前 1% 至 2% 成長預期的上限。由於平均客戶資金餘額較高和平均收益率略好，第三季客戶資金利息收入超出了我們的預期。

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展望，以反映我們第三季的業績以及自上次更新以來現行利率的上漲。我們現在預計 24 財年平均客戶資金餘額將成長約為 3%，並且我們正在提高對客戶資金利息收入和客戶資金擴展投資策略的淨影響的預期。

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.

總體而言，我們對 24 財年 ES 收入成長預測（7% 至 8%）沒有變化，儘管我們現在可能會接近該範圍的高端。在營運槓桿和客戶資金利息收入成長的貢獻的推動下，我們的 ES 利潤率在第三季度增長了 230 個基點。憑藉我們強勁的第三季業績和稍微有利的客戶資金利率背景，我們正在上調 24 財年 ES 利潤率預期，目前預計將成長 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.

繼續討論 PEO。第三季度，在平均工作場所員工成長 3% 的推動下，我們的營收成長了 5%，較上半年略有加速。這些結果在很大程度上符合我們的預期，我們對 PEO 的每次控制薪酬成長逐漸穩定感到鼓舞，雖然與上一季相比有所放緩，但僅略有下降。

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.

我們繼續預計到年底每個控制增長將保持溫和增長，並預計工作場所員工增長率將穩定在 3% 左右，這使我們能夠實現全年工作場所員工增長 2% 至 3% 和收入增長的預期3 %至4%。第三季 PEO 利潤率下降 220 個基點。正如我們上季度分享的那樣，我們預計今年的工人賠償準備金發放福利將顯著低於我們過去幾年的經歷，特別是去年的 7300 萬美元福利。

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.

我們正在更新我們的24 財年展望，現在假設釋放收益最小，因此，我們進一步修改我們的整體PEO 利潤率預期，將24 財年的整體PEO 利潤率預期下降120 至140 個基點，而我們之前的預期下降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.

總而言之，我們的 24 財年綜合收入成長 6% 至 7% 沒有變化。由於分部利潤率的兩次變化在很大程度上相互抵消，我們繼續預期調整後的息稅前利潤率將增加 60 至 70 個基點。我們仍然預計有效稅率約為 23%，並且我們繼續預計 24 財年調整後每股收益將增長 10% 至 12%，最有可能的結果仍是該範圍的中間值。

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.

當我們展望 25 財年時，我想分享一些早期的想法。首先，考慮到勞動力市場的充分性，我們計劃明年的人均工資增長將再次低於正常水平，並且ES 和PEO 領域的增長水平將比今年的增長水平小幅放緩，由此帶來的收入壓力將更明顯鑑於 PEO 部門對工作場所員工的收入更為直接的敏感度。當然，當我們在幾個月後提供正式指導時，我們會與您分享這些確切的假設。

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.

在費用方面，我們也計劃明年繼續增加與人工智慧相關的支出。正如您全年從我們那裡聽到的那樣，我們可以透過多種方式將Gen AI 交到與ADP 合作或代表ADP 的所有不同利益相關者手中，包括我們的客戶從業者、他們的員工、我們的服務和實施團隊、我們的賣家和我們的開發人員。這些都是關鍵投資，也是 ADP 的正確投資。但我們預計生產力和成長的相關效益將隨著時間的推移逐漸顯現，這可能代表今年的整體利潤率壓力。

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，我們似乎將繼續受益於利率，儘管這種好處的程度當然取決於殖利率曲線如何繼續發展。像往常一樣，我們主要致力於保持新業務預訂的良好勢頭，並保持強大的客戶滿意度和保留率，並且我們對未來幾年的策略保持樂觀。現在進入問答環節。

(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 Ramsey El-Assal。

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.

這是歐文替補拉姆齊。因此，您目前正在進入 PEO 內客戶利益選舉的公開註冊季節。我想知道您是否可以談談迄今為止您所看到的趨勢。您指出保險價​​格通膨會帶來一定的穩定性，從而推動附加費率上升。您是否看過此類後續行動？任何想法都可能有幫助。

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.繼續吧，唐。我想說，早安，歐文。我想開始吧，我會讓唐插話一下。因此，從全年的角度來看，就保留方面的情況做出判斷可能還為時過早。但總體而言，我們今年看到了 PEO 保留率的一點改善，而且比較變得更容易了，我們確實預計全年會出現一些改善。那麼，我就讓唐插話一下。

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

不，對不起，我又跳到那裡了。瑪麗亞，謝謝你。完美的答案。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?

偉大的。超有幫助。然後，如果可以的話，僅就客戶保留率而言，就繼續出現令人驚訝的上升趨勢。我想知道那裡的司機。您之前認為低端市場的銀行家費用可能會減少，但任何更長期的預期可能會有所幫助？

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，一點沒錯。我們對整體保留結果非常滿意。我想您在我們修訂後的展望中看到了這一點。您在我們上季度所做的修訂中也看到了這一點。因此，只是為了提醒大家，23 財年的保留情況如何，創下了紀錄。這項記錄實際上是由中端市場和國際市場推動的，而低端市場在 23 財年實際上確實有所下降。如果你願意的話，我們預計 24 年全年的前景幾乎相同，這就是為什麼我們的留存率結果仍然同比下降。但我們對客戶保留率的整體情況感到非常滿意。

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.

這實際上是由多種因素共同推動的，其中之一是我們對產品的投資，以及我們在客戶滿意度方面取得的創紀錄的成果。這本身就是第三季的記錄以及留存率的記錄。所以我們對此非常非常滿意。如前所述，低端市場仍然存在波動，低端市場也有停業的情況。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正常化。而且保留率總是存在著正常的變化。因此，我們認為保留指南是合適的。但當然，我們對創紀錄的季度以及今年迄今的保留率感到非常非常滿意。

Our next question comes from Bryan Bergin with TD Cowen.

我們的下一個問題來自 Bryan Bergin 和 TD Cowen。

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 替補布萊恩 (Bryan) 發言。第一個問題，儘管 PPC 觀點的保留率較高，但我只是想深入探討 ES 收入成長的肯定。聽說您可能會進入該範圍的高端，但也許您可以詳細說明一些基本假設和任何抵消？

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。有幾件事，扎克。我們已經提到過，留存率對我們來說非常好。當然，這一直在幫助並促進收入成長。當然，自上次以來發生的變化是，客戶資金的利息影響非常好，這讓我們更加放心地說我們將走向範圍的高端。因此，我認為這些是我們更有信心看到收入比 90 天前達到 7% 至 8% 更高水準的兩個主要驅動因素。

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?

知道了。並按需跟進。 ES 新業務預訂量確認成長 4% 至 7%。哪些市場最強？與第二季相比有什麼值得注意的變化嗎？

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。因此，首先也是最重要的是，我們對整體需求環境感覺良好。正如我們今天所看到的，公司仍在招聘，並且仍在對人員和人力資本管理進行投資。我在準備好的發言中說了一些標註，但實際上，本季的低端市場繼續給我們留下了深刻的印象，特別是在退休服務領域。所以我會在那裡標註。看到這個故事和退休服務結合在一起真是太棒了。我們根據立法討論了該領域的長期順風車。再加上我們一直在進行的投資和令人難以置信的分銷執行。很高興看到退休服務機構處於領先地位。

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.

我認為我要指出的其他非常強勁的領域是我們的中端市場以及國際市場。同樣，與退休服務類似的故事，投資、執行和企業之間的結合確實是一個偉大的故事，這對我們來說在本季度也很強勁。然後就廣泛的變化而言，我們並沒有真正看到需求環境發生任何變化。坦白說，正如整體招募情況和勞動力需求所表明的那樣，我們感覺非常非常強大。

Our next question comes from Mark Marcon with Baird.

我們的下一個問題來自貝爾德的馬克馬爾孔。

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?

顯然，客戶保留率非常高。顯然，你的分數還在繼續上升。您認為有哪些領域在推動更高 NPS 分數和更高客戶保留率方面表現突出？有什麼要特別注意的嗎？

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.

我會對你說，這兩個都是中端市場。因此，中階市場正在將強勁的 NPS 分數推向歷史新高。中端市場正在推動令人難以置信的保留。這就是唯一的標註。你可能可以從我的聲音中聽到樂觀的情緒，因為這是一個奇妙的故事。但我認為整體保留率非常高。 23 財年的國際中端市場非常強勁。他們仍然很強大，但我真正要強調的是中階市場。

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.

偉大的。然後，瑪麗亞，有一個領域投資者一直在詢問更多，而您和 ADP 對該領域有著最廣泛的前景，所以我在電話會議上問了這一點。但有些人對飽和度有些疑問。您的新預訂量繼續增長，但投資者更多地詢問了一些問題，例如我們有多少空間用於新解決方案，或者有多少客戶已經升級了此類性質的城市。您的結果和一些同行的結果仍然掩蓋了這些擔憂，但我想知道您是否可以解決這些問題。

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.

是的，絕對是，馬克。我會嘗試一下，當然很高興唐能插話。但我認為，從廣義上講，當你考慮HCM 領域的整個潛在市場以及我們都參與其中、我們都在競爭的地方時，它的競爭非常激烈，並且在過去幾年中有大量投資進入該領域。我想說的是，對於我們所有人來說，仍然存在著巨大的成長和成長空間。正如您所提到的，我們將繼續提供這一點以及我們在新業務預訂方面看到的結果。所以我認為總的來說，仍然有跑道。還有足夠的空間。

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.

我認為這對我們來說是在我們令人難以置信的分銷組織之外的部分，這一直是我們進入市場的競爭優勢。這種分佈也取決於我們向基礎客戶追加銷售的能力。所以你提到了這種升級能力以及升級了多少，我們是否已經實現了這一目標。我建議你的是，我們仍然在 50% 左右，因為這與來自新業務、淨新業務與升級的新業務預訂有關，這表明​​我們仍然有巨大的機會即使在我們的基地內。這是我們作為一個組織所關注的重點，無論是 PEO 更加明智地了解我們的目標是向 PEO 提供雇主服務中的哪些客戶，還是我們在生成人工智能方面所做的工作，試圖進行追加銷售並在正確的時間向正確的客戶提供正確的產品。

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，彎曲曲線並繼續關注附加費率，無論是在銷售點還是在稍後的附加費率上，這絕對是我們繼續在一個非常廣闊的市場中提供預訂的機會，該市場仍然存在為我們所有人提供了巨大的機會，而且我們將繼續執行並實現這一目標。所以我不知道，唐，你是否想就國際上的機會發表一些評論。

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，也許是為了增加一點色彩。我認為我們對美國或北美市場以外的成長機會仍然非常樂觀。馬克，我想我們之前談過，我們在美國以外的 40 多個國家/地區開展業務。我們在東南亞發生了一些很棒的事情，我們首先在印度以及印度週邊的東南亞市場的許多國家推出了一個單一平台。我們很興奮。我們經常談論這樣一個事實，即我們每個發薪日向印度超過 100 萬人支付工資，價格仍然有點低，但我們希望這些事情對我們有用，並且在未來對我們有利。因此，我認為從成長的角度來看，ADP 仍然有很多很多的機會。當然，我們並不擔心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?

我只是想回顧一下 Don，您在 25 財年提供的一些早期想法，以及談論 Gen AI 投資，我認為您已經提到可能會帶來一些與此相關的利潤壓力。我只是想澄清一下，您是在談論潛在的領先利潤率同比下降嗎？或者是否有其他可以抵銷一般營運槓桿和利息收入的抵銷措施，可以抵銷這些投資的利潤壓力？

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。我覺得現在還早。我認為這裡的目的是為 25 世紀的發展提供一些非常早期的指導。因此，我們仍然預期利潤率會有所改善。只是——考慮到人工智慧時代的一些壓力——我們可能會看到的費用壓力，我們是否期望看到如此多的改進。當然，此時的CFI，取決於殖利率曲線的作用。在過去 90 天裡，事情又發生了一些變化。如果我願意——並不是說我有水晶球，但我認為現在沒有多少人預計 9 月之前美國的利率會發生任何變化。所以我認為我們將從中獲得一些順風車。因此，我們並不是真的想在這裡發出信號——不是表明我們的利潤率下降。我們所發出的訊號可能是，當我們展望 25 世紀時，利潤率的成長可能會放緩。

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.

知道了。知道了。這非常有幫助。然後我只想繼續討論 PEO 領域，有點回到我們去年討論過的一些垂直領域以及技術和專業服務。只是想知道您是否可以向我們介紹一下您所看到的有關按控制付費增長的一些趨勢的最新情況。我的意思是，即使看看你們今天早上發布的就業報告，看起來專業服務正在穩定和成長，但技術資訊似乎有點不穩定。所以想知道您是否可以談談 PEO 在這些垂直領域的趨勢。

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。因此，如果我——瑪麗亞談論一下預訂問題。我想我們對我們的預訂很滿意。第三季的情況有所放緩，但第二季的 PEO 預訂量非常非常強勁。如果你繼續關注 PPC 的成長，那麼回到第一季度，它的減速比我們預期的要大一些，減速的很大一部分歸因於技術和專業服務行業。在第二季度，情況趨於穩定。所以這對我們有好處。儘管 PPC 仍然存在一些阻力，包括來自技術和服務業的阻力，但第三季並沒有出現意外。因此，值得注意的是，儘管 PPC 壓力帶來的增量壓力不大，但與第二季度相比，工作場所員工成長加速了約 1%。所以——當然，這是我們今年迄今為止的預訂成功的結果。所以沒什麼好說的。如果你願意的話，PPC 壓力比我們之前討論的更穩定。

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

我們的下一個問題來自摩根大通的黃天欽。

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？只是想想一些同行的評論。有任何標註或有趣的觀察嗎？

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

就——從我們的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，您的定價，或者當您考慮在進入通常的季節性時間變化時重置價格時 - 價格變化，有什麼想法，無論是續訂還是新交易出價？

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，一點沒錯。所以我認為我的整體觀點和唐可以給出更多的方向性。但我對價格的總體看法仍然是，我們非常深思熟慮，非常謹慎，因為這與我們如何看待價格有關，無論是在新業務方面還是在更新方面，正如您所提到的。所以對我們來說，這是按細分市場來理解。因此，您在準備好的發言中聽到了我的評論，即 ADP 對於我們的客戶群而言是多麼廣泛、深入和多樣化。正如您可以想像的那樣，我們對低端市場價格上漲的看法可能與企業不同。其中一些也是附有指數的長期合約。因此，所有這些都適合於一種非常外科手術的方法，對吧，以確保價格價值方程式對於市場和我們的客戶來說仍然是正確的。

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，與此同時，我們正在做的事情也在監控 HCM 領域相對於同儕群體和整體定價的情況​​。我想說，從競爭的角度來看，我們沒有看到任何與我們或其他公司的價格相關的異常情況，儘管它仍然是一個競爭激烈的環境，因此，我們今年的定價方法，我會讓唐評論一下，這是非常深思熟慮的，我希望我們在進入25 年後採取同樣的謹慎方法。

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。因此，今年的價格上漲相對受到歡迎。我們處於 100、150 個基點範圍內。我們離 150 越來越近了。但回到瑪麗亞的評論，我們現在正處於規劃週期的中間，我們將非常仔細地審視整個價值方程式，確保我們保持我們的保留率。我們的 NPS 對此表示支持。我們將確保我們對未來的定價工作保持謹慎和深思熟慮。

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。我相信你一定會深思熟慮的。就 Gen AI 而言，我尊重那裡的投資。我很好奇您是否將其歸類為提高費用效率與提高銷售效率。您在 25 財年進行這些投資的真正目標是什麼？

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.

兩個都。答案是兩者皆有。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，對嗎？因此，如果你考慮所有角色，我們的客戶、客戶的員工、我們的服務代理、我們的銷售人員，那麼實際上就是將 Gen AI 放入我們生態系統的每個部分。那我們要解決什麼問題呢？答案是兩者皆有。我們正在努力提高服務效率。我認為我們已經證明，透過數位轉型、消除產品摩擦並進行這些投資，我們有能力提高 NPS 結果並記錄客戶滿意度，這往往會導致類似的記錄保留。因此，我們一定要努力確保提高保留率。

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，我們的客戶越滿意，我們的賣家就越容易。我們也投資退化人工智慧，以提高賣家的生產力。所以這關係到服務生產力，關係到賣家生產力。這是關於客戶體驗的。客戶體驗有助於保留客戶。所以我想這只是一個快樂的良性循環，但我認為我們的答案或我的答案是兩者兼而有之，而這一切都是我們希望獲得的。

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.

現在再次回到我們正在進行的投資，以及唐提到的我們在這些投資的利潤方面可能面臨的任何壓力。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獲得我剛才提到的所有這些類別的所有結果。就目前情況而言，我們看到了一些非常令人興奮的事情。如果您考慮我過去談到的呼叫摘要之類的內容，而我們每次呼叫大約節省一分鐘，那麼這聽起來可能不那麼令人興奮。但是，如果您考慮一段時間內每個呼叫的時間，並考慮在給定年份中我們在 ADP 中廣泛接聽的呼叫數量。數學有助於加班提高效率，並再次希望獲得更好的體驗，對吧？所以我認為答案就是全部。我們正在解決所有問題。

Our next question comes from James Faucette with Morgan Stanley.

我們的下一個問題來自摩根士丹利的詹姆斯·福賽特。

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.

邁克爾·因方特 (Michael Infante) 替補詹姆斯。今天只給我一個。您提到全年 ES 的排名處於較高水平，考慮到您對我們所看到的預訂強度、更好的保留率、按控制付費改進的流量效益的一些評論，這是有道理的。但考慮到所有這些因素，儘管有這些不利因素，本季的 ES 似乎與我們的預期基本一致。因此，我很好奇，考慮到您對價格接近歷史範圍高端的評論，這對於您在淨新方面以及交叉銷售和追加銷售中看到的情況意味著什麼。

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。我認為首先是價格，沒有變化。我想我們今年大部分時間都在呼籲這一點，當然在 1 到 150 的範圍內。因此，如果你願意的話，對第四季乃至全年的增量影響並不大。所以沒有太大變化。是的，我的意思是預訂，我們大聲疾呼，我們仍在尋找在我們聲明的範圍內交付的產品，所以我們仍然在其中。所以——但除了一些浮動之外，並沒有真正推動增量收入。但隨著時間的縮短或一年中剩下的天數減少，在我們預計今年結束時，較高的 CFI 的影響將會減弱。

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，是丹尼。如果您想知道其他地方是否存在一些抵消，那麼外匯走勢相對於我們先前預期的情況有一些不利的影響。

Our next question comes from Pete Christiansen with Citi.

我們的下一個問題來自花旗銀行的 Pete Christiansen。

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.

瑪麗亞、唐，你們對早期留下的錢包共享機會、PEO、Gen AI 的傾向建模以及國際化做出了很好的解釋。我想深入了解國際層面，特別是你們正在進入的一些新市場。只是希望您能為我們提供一些關於您已經建立的許多最後一英里基礎設施的進度報告，以加快進入市場的步伐。我只是好奇我們是否應該像 Pi 的部署那樣考慮，國際上的下一代薪資引擎是下一次預訂成長落後的真正催化劑。

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。我認為這是一個堅實的問題，就像 3、4 個問題合而為一。所以我會——我會盡力在這裡編織它。但正如 Don 所提到的，我們的業務遍及 40 個國家。我們在 140 個國家提供薪資服務，包括我們的合作夥伴網路。就最後一英里或最後一英里而言，正如您所提到的，我要評論的第一件事是我們已經建立了它 50 年，對吧？因此，當我想到國際業務以及我們幾十年來為建設基礎設施所做的一切時，我建議這是一個巨大的領先優勢，您在我們的國際預訂結果中看到了這一點，對嗎？

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.

所以我們在國際賽事的第一季表現不錯。我們在第二季度加快了這一速度。我們有一個更好的第三季。其中很大一部分是由我們的跨國成長所推動的。因此，請考慮我們的 Celergo 提供的 GlobalView 產品。這些對我們來說在第三季尤其強勁。我確實相信這是整體需求環境，再加上我們的實地策略（如果你願意的話）。順便說一句，國際管道保持健康，我們相信這將為我們奠定堅實的第四季度和明年的基礎。

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.

就我們繼續擴張的領域而言，我在準備好的發言中提到，亞太地區或亞太地區是我們的亞洲業務相對較小的地區，但隨著時間的推移，我們看到了顯著的成長。顯然，這種成長是客戶需求成長的直接副產品，因為它與我們客戶的活動以及他們將員工轉移到哪裡以及他們將業務轉移到哪裡有關。因此，我們相信繼續向亞太地區傾斜對我們來說很重要。

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，我們將繼續向那裡傾斜。我想我們上個季度提到了收購北歐一家公司，特別是瑞典的公司。因此，從客戶的角度來看，這也是一個高成長領域。因此，我認為隨著時間的推移，我們的策略是，當我們進一步深入一個國家時，我們有時會看到需求，我們會將合作夥伴納入其中，顯然，您已經在北歐看到了這一點。在此之前，您已經在許多國家看到過這種情況。但這個生態系統遍佈 140 個國家。最後一英里的建設花費了數十年的時間。這是市場上明顯的競爭優勢。你可以感覺到，看到，而且真的是觸手可及的。

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.

在上次財報電話會議之後，我實際上參加了我們的重新思考活動，我們在這次活動中聚集了數百家最大的全球跨國公司客戶，當我們在該市場執行的精神非常明顯時，您直接從我們的客戶那裡聽到的。我相信這對我們來說是一個繼續推動成長的巨大機會。所以我想我已經涵蓋了所有這些，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?

只是快速跟進。您認為下一代薪資的部署是否會成為某些新市場進入市場的催化劑？

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.

是的當然。因此，下一代薪資，當然，我們的目的是繼續推動各個國際市場的下一代薪資。今天我們已在一些市場部署了它。再加上隨著時間的推移，Celergo 和 GlobalView 再次領先的這些優惠，只會進一步推動那裡的成長敘事和故事，但這絕對是 Next Gen Payroll 的意圖和戰略方向。

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

我們的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?

我是阿什什的大衛·佩奇。很高興聽到您在中端市場垂直領域的業績和成長。我想知道您能否簡單介紹一下那裡的競爭格局？你們是在搶佔份額還是整個市場角落。市場競爭的前景或環境如何？

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，一點沒錯。因此，中端市場對我們來說是一個很大的細分市場。成為中端市場的雇主肯定不會變得更容易。它充滿了複雜性和各種需要應對的挑戰。即使您查看過去 30 天，您也可以看到中型市場雇主必須遵守的立法。所以這是一個強大的市場。這是一個競爭激烈的空間。這並不新鮮。

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，它一直都是競爭性的。我不知道我們是否已經看到競爭格局發生了明顯的變化。我們所看到的是令人難以置信的分配、執行、令人難以置信的滿意度、我們這邊的執行力。我們對產品集進行了大量投資。它正在贏得市場。您可以將該策略與賣方方面的出色執行力和保留方面的出色執行力結合起來。對我來說，中端市場正在發生的變化是我們變得更強大了。

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

我們的下一個問題來自美國銀行的 Jason Kupferberg。

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?

這是傑森的卡洛琳·拉塔。抱歉，加倍下調價格，但鑑於通膨並未像市場最近希望或預期的那樣下降，您對 ADP 有何最新預期，以及更廣泛的同行群體提高定價的能力？阻力嗎？

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。我認為它只是來了 - 繼續回到相同的概念，這確保我們在 10 多年的生命週期內為客戶提供良好的價值。因此，我們始終注意確保客戶獲得良好的價值，並確保我們能長期保留這些客戶。所以它是客戶生命週期中客戶整個生命週期的總回報。因此，我們總是非常非常小心，不要超出定價範圍。話雖如此，我們當然會關注競爭對手的表現。我們豎起耳朵傾聽。我們的銷售人員密切注意實際情況。

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.

我們正在努力確定並了解比賽中發生的情況。所以我們會繼續關注。我們將繼續探討一些想法和模型，看看會產生什麼影響。但我不想準確地表明我們認為我們正在做什麼，因為正如我之前所說，我們仍然處於我們的規劃週期之中。但我們總是看著它。我們通常每年都會盡可能地確定價格，不包括我們與一些大客戶的一些合約承諾，但這只是我們非常非常謹慎地做的事情。

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

我們的最後一個問題來自 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.

Maria，當您審視中端市場和 ADP 所取得的成功時，您從誰那裡贏得了市場份額？是傳統的薪資公司嗎？是否有公司可能正在使用您不認為是薪資公司的其他軟體產品？我只是想知道成功從何而來。

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。坦白說，從中端市場的角度來看，需求是健康的。競爭環境是競爭性的，我們繼續專注於所有競爭對手，特別是那些在過去幾年裡一直在談論我們的競爭對手。我認為我們一直關注的方式實際上是我們所做的投資，對一流產品的投資。投資於專注於分銷，投資於數位轉型，進而提高客戶滿意度。這確實讓我們擁有了一個成功的故事，因為它與所有玩家息息相關。

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.

然後只有一個後續行動。就PEO業務而言，當你從該業務的長期成長角度來看時，顯然，發生了一些事情，可能在過去一年左右的時間裡減緩了成長。我想知道您對 PEO 業務的看法，以及您認為該業務或對該產品的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。因此，我很高興開始，當然也很高興唐也參與 PEO 的工作。我始終非常非常看好 PEO 的價值主張。我很長時間以來一直關注這個行業，我會告訴你它比以往任何時候都更強大。因此，儘管我們在 PEO 中遇到了一些奇怪的情況，從某種進入大流行的組成部分、大流行期間、大流行之後，然後現在，稱之為大流行後，大流行後。我想向您建議的是，它與該業務的基本面以及我們從長期成長角度的預期無關。因此，價值主張很強。我們這邊沒有任何改變，因為它與業務的整體需求有關。我們看到，我們繼續有 50% 的 PEO 客戶來自基地。所以它引起了我們現有客戶的共鳴。它與公開市場產生了共鳴，並且對我們來說仍然是一個非常強大的產品。所以我不知道，唐，你是否想在那裡添加任何內容？

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

除了價值主張一如既往地強大之外，沒有什麼可補充的，而且業務的基本面仍然非常強勁。

We have one more question from Dan Dolev with Mizuho.

丹‧多列夫 (Dan Dolev) 向瑞穗提出了一個問題。

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，我正在接另一通電話。但我知道這可能還為時過早，但是您有關於下一個財年的消息嗎？

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，我想談談明年的一些事情。我們確實認為現在還為時過早，所以我們沒有分享太多，儘管我們確實說過，鑑於勞動力市場的充分性，每個控制的工資將繼續承受一點壓力。這就是我們一直在講述的一個持續的故事。我們將繼續進行一些與人工智慧相關的支出，為 ADP 進行正確的投資。當然，我們將從利率中獲得一些推動力。所以我認為這是三個主要的事情。當然，我們始終非常非常注重預訂以及強大的客戶保留率和客戶體驗。所以我認為這些將是 25 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。我想將電話轉回給瑪麗亞·布萊克，讓其結束語。

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。謝謝你們，並再次感謝今天加入我們的所有人，無論是全職還是遲到。我們始終感謝大家提出的問題和興趣，我們當然期待很快再次與你們所有人交談，並期待今年的結束。謝謝。

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

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