自動資料處理 (ADP) 2022 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 2022 Earnings Call. I would like to inform you that this conference is being recorded. (Operator Instructions) Thank you.

早上好。我的名字是米歇爾，我將成為您的會議接線員。在這個時候，我想歡迎大家參加 ADP 的 2022 財年第三季度財報電話會議。我想通知您，本次會議正在錄製中。 （操作員說明）謝謝。

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

我現在將會議轉交給投資者關係副總裁 Danyal Hussain 先生。請繼續。

Thank you, Michelle, and welcome everyone to ADP's Third Quarter Fiscal 2022 Earnings Call. Participating today are Carlos Rodriguez, our CEO; Maria Black, our President; 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.

謝謝你，米歇爾，歡迎大家參加 ADP 2022 財年第三季度財報電話會議。今天參加的有我們的首席執行官 Carlos Rodriguez；我們的總裁瑪麗亞·布萊克；和我們的首席財務官 Don McGuire。今天早上早些時候，我們發布了本季度的業績。我們的收益材料可在 SEC 網站和我們的投資者關係網站 Investors.adp.com 上找到，您還可以在其中找到今天電話會議隨附的投資者介紹。

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 a 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原則財務指標，我們認為這些指標對投資者有用，並且排除了某些項目的影響。這些項目的描述以及非公認會計原則措施與最具可比性公認會計原則措施的對賬可以在我們的收益發布中找到。

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. And with that, let me turn it to Carlos.

今天的電話會議還將包含涉及未來事件並涉及一些風險的前瞻性陳述。我們鼓勵您查看我們向 SEC 提交的文件，以獲取有關可能導致實際結果與我們當前預期產生重大差異的因素的更多信息。有了這個，讓我把它交給卡洛斯。

Thank you, Danny, and thank you, everyone, for joining our call. We delivered exceptionally strong third quarter results, including revenue that accelerated to 10% growth on a reported basis and 11% growth on an organic constant currency basis, coupled with solid adjusted EBIT margin expansion. The strong outcome on both revenue and margin drove 17% growth in adjusted diluted EPS, well ahead of our expectations.

謝謝你，丹尼，謝謝大家加入我們的電話。我們提供了異常強勁的第三季度業績，包括收入增長加速至報告基礎上的 10% 和有機不變貨幣基礎上的 11% 增長，加上調整後的息稅前利潤率穩健增長。收入和利潤率的強勁結果推動調整後攤薄每股收益增長 17%，遠超我們的預期。

Our clients have had new shortage of challenges in navigating the last 12 months, but through it all, not only have they persevered but they have invested in their workforce to better support their employees and continue to grow their businesses. We're proud to support them in these efforts through our leading HCM technology and unrivaled expertise.

我們的客戶在過去 12 個月中遇到了新的挑戰，但通過這一切，他們不僅堅持了下來，而且還投資了員工隊伍，以更好地支持員工並繼續發展業務。我們很自豪能夠通過我們領先的 HCM 技術和無與倫比的專業知識來支持他們的這些努力。

This quarter, I'll provide high-level commentary on key business drivers, and then Maria will take us through some product and other updates. And as usual, Don will discuss the financials and our updated outlook.

本季度，我將對關鍵業務驅動因素進行高級評論，然後 Maria 將帶我們了解一些產品和其他更新。和往常一樣，唐將討論財務狀況和我們最新的展望。

Let me start with Employer Services new business bookings. We are very pleased to have delivered another strong quarter of double-digit growth. This was a record level for the third quarter. And as we had hoped when we updated you last quarter, the Omicron variant was not a meaningful factor in our bookings performance, as third quarter growth accelerated from our first half levels towards the high end of our guidance range this quarter.

讓我從雇主服務新業務預訂開始。我們很高興又一個強勁的季度實現了兩位數的增長。這是第三季度的創紀錄水平。正如我們在上個季度更新您時所希望的那樣，Omicron 變體對我們的預訂業績來說並不是一個有意義的因素，因為第三季度的增長從我們上半年的水平加速到本季度指導範圍的高端。

Our clients continue to find tremendous value across our suite of offerings, with our PEO and HR outsourcing, international and downmarket businesses, again, leading the way. We're pleased to narrow our ES bookings guidance higher, and we look forward to delivering this double-digit growth for the full year, which should position us well for fiscal 2023.

我們的客戶繼續在我們的產品套件中發現巨大價值，我們的 PEO 和 HR 外包、國際和低端市場業務再次引領潮流。我們很高興將我們的 ES 預訂指導範圍縮小，我們期待全年實現兩位數的增長，這將使我們在 2023 財年處於有利地位。

Our Employer Services retention was also very strong this quarter. As you know, our third quarter is especially important for retention since we typically experience elevated switching with the start of the new calendar year. Accordingly, we were very pleased that rather than decreasing the quarter towards pre-pandemic levels like we anticipated, our retention actually increased further into record territory driven by incredible performance from our mid-market and international businesses, among others.

本季度我們的雇主服務保留率也非常強勁。如您所知，我們的第三季度對於保留尤其重要，因為我們通常會在新日曆年開始時經歷更高的轉換。因此，我們非常高興的是，我們的留存率實際上並沒有像我們預期的那樣將季度減少到大流行前的水平，而是在我們的中型市場和國際業務等令人難以置信的表現的推動下進一步提高到創紀錄的水平。

As we've discussed for several quarters, the strong employee and client growth we've experienced have increased the demands on our implementation and service organization. We added to our headcount to keep up with this demand ahead of our busy year-end period. And as a result, we were able to maintain strong overall client satisfaction scores despite ongoing pressure from this elevated demand.

正如我們幾個季度以來所討論的那樣，我們所經歷的員工和客戶的強勁增長增加了對我們實施和服務組織的需求。我們增加了員工人數，以在我們繁忙的年末期間跟上這一需求。因此，儘管需求增加帶來的持續壓力，我們仍能保持強勁的整體客戶滿意度得分。

With retention having outperformed our expectations so far this year, we believe we are now on pace to hold on to most of last year's retention gains and expect to remain at 92% retention for the year, down very slightly versus last year's record retention level.

由於今年迄今為止的留存率超出了我們的預期，我們相信我們現在有望保持去年的大部分留存率增長，並預計今年的留存率將保持在 92%，與去年創紀錄的留存水平相比略有下降。

Moving on to Employer Services pays per control. Our clients continue to steadily hire as workers enter or reenter the labor force, and our pays per control growth of 7% for the quarter came in better than expected. Clearly, there are a number of factors at play when considering employment growth trends, but strong overall economic activity continues to keep demand for labor high, and we've been pleased to see labor force participation gradually recover over the course of the year.

轉到雇主服務按控制付費。隨著工人進入或重新進入勞動力市場，我們的客戶繼續穩定地招聘，我們本季度 7% 的控制工資增長好於預期。顯然，在考慮就業增長趨勢時，有許多因素在起作用，但強勁的整體經濟活動繼續保持對勞動力的高需求，我們很高興看到勞動力參與率在一年中逐漸恢復。

And one last highlight before I turn it over to Maria. Our PEO had another strong quarter, with 16% average worksite employee growth and 14% revenue growth. As we've seen all year, growth in our PEO bookings was exceptionally strong as small and midsized businesses increasingly find value in turning over a meaningful portion of their HR function to ADP. And that strong bookings performance, coupled with robust employment growth within the PEO base, has driven this very healthy double-digit revenue growth.

在我把它交給瑪麗亞之前的最後一個亮點。我們的 PEO 又一個強勁的季度，平均工地員工增長 16%，收入增長 14%。正如我們全年所見，我們的 PEO 預訂增長異常強勁，因為中小型企業越來越發現將其人力資源職能的重要部分移交給 ADP 的價值。強勁的預訂業績，加上 PEO 基礎內強勁的就業增長，推動了這一非常健康的兩位數收入增長。

And now let me turn it over to Maria.

現在讓我把它交給瑪麗亞。

Thank you, Carlos. It's great to be joining everyone for the call. Also, some updates on a few key initiatives we have underway. One key product initiative is the rollout of our new unified user experience, and we made some great progress on this front. Earlier this year, we moved the RUN iHCM and NextGen HCM client bases over to the new UX. Feedback has been strong, with clients especially upbeat about how easy we've made key HCM workflows.

謝謝你，卡洛斯。很高興能和大家一起參加電話會議。此外，我們正在進行的一些關鍵舉措的一些更新。一個關鍵的產品計劃是推出我們新的統一用戶體驗，我們在這方面取得了一些重大進展。今年早些時候，我們將 RUN iHCM 和 NextGen HCM 客戶群轉移到了新的 UX。反饋非常強烈，客戶對我們使關鍵 HCM 工作流程變得如此簡單感到特別樂觀。

In January, we shared we started the pilot of the new UX to Workforce Now. And since then, we've expanded from a handful of clients to over 1,000. Early feedback has also been overwhelmingly positive. In this quarter, we began the rollout of the new UX to the ADP Mobile App.

一月份，我們分享了我們開始對 Workforce Now 進行新 UX 的試點。從那時起，我們已經從少數客戶擴展到 1,000 多個。早期的反饋也非常積極。在本季度，我們開始向 ADP 移動應用推出新的用戶體驗。

The ADP Mobile App is an incredibly important part of the ADP suite, with over 10 million active users. It is one of the top 5 most downloaded business apps in the Apple App Store and is available in over 20 languages. And we're excited to take our 4.7-star average user experience and make it even more insightful, intuitive and proactive for our users as we complete the new UX rollout over the coming months.

ADP 移動應用程序是 ADP 套件中非常重要的一部分，擁有超過 1000 萬活躍用戶。它是 Apple App Store 中下載次數最多的 5 個商業應用程序之一，並提供 20 多種語言版本。隨著我們在未來幾個月完成新的 UX 部署，我們很高興能夠獲得 4.7 星的平均用戶體驗，並為我們的用戶提供更深刻、更直觀和更主動的體驗。

Moving on, data continues to be one of our key differentiators. In this quarter, we expanded our data offerings even further as we launched pilot clients on our new Global Insights Dashboard, powered by DataCloud. This dashboard provides our GlobalView and Celergo clients with advanced analytics for their employee populations around the globe, leveraging the same award-winning analytics platform we have scaled across our U.S. mid- and upmarket client bases.

繼續前進，數據仍然是我們的關鍵差異化因素之一。在本季度，我們進一步擴展了我們的數據產品，因為我們在由 DataCloud 提供支持的新 Global Insights Dashboard 上推出了試點客戶。該儀表板為我們的 GlobalView 和 Celergo 客戶提供針對其全球員工群體的高級分析，利用我們在美國中高端客戶群中擴展的相同的屢獲殊榮的分析平台。

Last quarter, we mentioned you would hear a bit more about our marketing efforts here at ADP. At our Investor Day in November, I spoke about how, for decades, ADP has reached prospects through our powerful direct sales force and how, in more recent years, we have enhanced this direct channel with modern selling tools, a growing partner network and with increased digital advertising.

上個季度，我們提到您會聽到更多關於我們在 ADP 的營銷工作的信息。在 11 月的投資者日上，我談到了幾十年來，ADP 如何通過我們強大的直銷團隊吸引潛在客戶，以及近年來，我們如何通過現代銷售工具、不斷增長的合作夥伴網絡以及與增加數字廣告。

This quarter, we continued to advance our great momentum and expanded our overall brand investment with additional initiatives, including our first major athletic sponsorships, a group of 8 impressive professional golfers featured across the LPGA, the PGA and the European Tour, who, together, constitute Team ADP.

本季度，我們繼續推進我們的強勁勢頭，並通過其他舉措擴大了我們的整體品牌投資，包括我們的第一個重大體育贊助，一組 8 位令人印象深刻的職業高爾夫球手，他們在 LPGA、PGA 和歐巡賽中脫穎而出，他們一起，構成 ADP 團隊。

The ADP brand is a powerful asset and has come to be associated with professionalism, insightful and trustworthy data and the premier technology and service we pride ourselves on. And we believe there's opportunity to continue investing in our brand while also pushing the frontier in digital marketing efforts to support our world-class sales force.

ADP 品牌是一項強大的資產，它與專業精神、洞察力和值得信賴的數據以及我們引以為豪的一流技術和服務聯繫在一起。我們相信有機會繼續投資於我們的品牌，同時推動數字營銷工作的前沿，以支持我們世界級的銷售隊伍。

And as a final call out, this quarter, we were pleased to host one of our marquee client events, ADP Meeting of the Minds, in California, which was back in person for the first time since 2019. This was our 37th Meeting of the Minds conference, and we took the opportunity to engage deeply with our enterprise clients on the changing world of work.

作為最後的呼籲，本季度，我們很高興在加利福尼亞舉辦了我們的一個大型客戶活動，即 ADP 思想會議，這是自 2019 年以來第一次親自回來。這是我們的第 37 次會議Minds 會議，我們藉此機會與我們的企業客戶就不斷變化的工作世界進行深入交流。

What I love most about this event is, as much as we enjoy sharing our perspective with our clients and showing them our latest HCM innovations, we also make the most of this opportunity by listening to and learning from them. And having the event back in person really makes a big difference.

我最喜歡這次活動的是，儘管我們喜歡與客戶分享我們的觀點並向他們展示我們最新的 HCM 創新，但我們也通過傾聽和向他們學習來充分利用這次機會。親自參加活動真的會產生很大的不同。

The third quarter was a terrific quarter overall, which you can see in our results and in the progress we made on key initiatives. We were recently named one of Fortune's Most Admired Companies for the 16th year in a row, and we are proud of this honor because it highlights our culture of continuous improvement, our consistency and our focus on being a true partner to our clients. A big thank you to our associates who make this all happen.

第三季度總體上是一個了不起的季度，您可以從我們的業績和我們在關鍵舉措上取得的進展中看到這一點。我們最近連續第 16 年被評為《財富》雜誌最受尊敬的公司之一，我們為這一榮譽感到自豪，因為它突出了我們持續改進的文化、我們的一致性以及我們對成為客戶真正合作夥伴的關注。非常感謝我們的同事讓這一切成為現實。

Now over to Don.

現在交給唐。

Thank you, Maria, and good morning, everyone. For our third quarter, we delivered 10% revenue growth on a reported basis and 11% on an organic constant currency basis. This revenue growth, in turn, supported adjusted EBIT margin expansion of 50 basis points, which was much better than the decline we expected.

謝謝你，瑪麗亞，大家早上好。對於我們的第三季度，我們實現了 10% 的報告收入增長和 11% 的有機固定貨幣基礎。反過來，這種收入增長支持調整後 EBIT 利潤率擴大 50 個基點，這比我們預期的下降要好得多。

We achieved that margin expansion despite incremental investments in headcount and compensation we discussed last quarter. Through the combination of this strong adjusted EBIT growth, a slightly lower tax rate and a lower share count, we were able to deliver a 17% increase in adjusted diluted earnings per share.

儘管我們在上個季度討論了對員工人數和薪酬的增加投資，但我們實現了利潤率增長。通過這種強勁的調整後息稅前利潤增長、略低的稅率和較低的股票數量，我們能夠實現調整後的攤薄每股收益增長 17%。

Looking more closely at the segment results. Our Employer Services revenue increased 8% on a reported basis and 9% on an organic currency basis. ES revenue has been supported all year long by strong retention and pays per control trends, and our double-digit bookings performance has been contributing nicely as well.

更仔細地查看細分市場的結果。我們的雇主服務收入在報告的基礎上增長了 8%，在有機貨幣基礎上增長了 9%。 ES 收入全年都受到強大的保留和按控制趨勢付費的支持，我們兩位數的預訂業績也做出了很好的貢獻。

In Q3, we also started to get a more meaningful contribution from client funds interest, through the combination of our 15% client funds balance growth and an average yield that was nearly flat with the prior year. This year-over-year increase in client funds interest contributed about 0.5% to our revenue growth, which is a very nice outcome compared to the last several quarters. ES margin increased 120 basis points, well ahead of our expectations for the quarter and supported primarily by revenue growth.

在第三季度，我們還開始從客戶資金利息中獲得更有意義的貢獻，通過我們 15% 的客戶資金餘額增長和與上一年幾乎持平的平均收益率相結合。客戶資金利息的同比增長為我們的收入增長貢獻了約 0.5%，與過去幾個季度相比，這是一個非常好的結果。 ES 利潤率增長 120 個基點，遠超我們對本季度的預期，主要受到收入增長的支持。

Moving on to the PEO segment. PEO revenue remains very strong and grew 14% in the quarter. Average worksite employee growth is the primary driver to PEO revenue and remained at a very robust 16%, reaching 688,000 average worksite employees for the quarter. We continue to benefit from the strong bookings growth we've seen all year long as well as healthy retention and pays per control growth within the PEO client base.

轉到PEO部分。 PEO 收入仍然非常強勁，本季度增長了 14%。平均工地員工增長是 PEO 收入的主要驅動力，並保持在非常強勁的 16%，本季度平均工地員工達到 688,000 名。我們繼續受益於我們全年看到的強勁預訂增長以及健康的保留率和 PEO 客戶群中的按控制增長付費。

PEO revenue growth was a bit lower than worksite employee growth this quarter, which is fairly atypical. Impacting revenue for worksite employee was a mix shift towards WSEs with a slightly lower average wage and lower benefits participation, representing continued normalization back towards a pre-pandemic mix. That said, it's good to see a recovery in all parts of the workforce in our PEO. PEO margin was flat in the quarter and included higher selling expenses, driven by our strong sales momentum.

本季度 PEO 收入增長略低於現場員工增長，這是相當不典型的。影響工地員工收入的因素是向 WSE 的混合轉變，平均工資略低，福利參與度較低，代表繼續正常化回到大流行前的混合狀態。也就是說，很高興看到我們 PEO 中所有勞動力的複蘇。在我們強勁的銷售勢頭的推動下，本季度的 PEO 利潤率持平，其中包括較高的銷售費用。

Moving on to our updated outlook for the year. For ES revenues, we are raising our guidance and now expect growth of about 7%, up from our previous guidance of about 6%. There are a few drivers behind that increase. We are narrowing our ES bookings guidance higher to a range of 13% to 16%, up from 12% to 16% prior.

繼續我們最新的年度展望。對於 ES 收入，我們正在提高我們的指導，現在預計增長約 7%，高於我們之前約 6% 的指導。這種增長背後有一些驅動因素。我們正在將我們的 ES 預訂指導範圍從之前的 12% 到 16% 縮小到 13% 到 16% 的範圍。

So far this year, we have realized and delivered solid double-digit growth. Clearly, there is geopolitical uncertainty in Europe as well as more general macro uncertainty. But notwithstanding those uncertainties, our outlook contemplates a strong Q4, with growth in the teens, and we look forward to delivering a strong finish to the year.

今年到目前為止，我們已經實現並實現了兩位數的穩健增長。顯然，歐洲存在地緣政治不確定性以及更普遍的宏觀不確定性。但儘管存在這些不確定性，我們的展望預計第四季度將強勁增長，並在青少年中實現增長，我們期待在今年取得強勁的業績。

We are raising our employer services retention guidance and now expect it to be down only 20 basis points for the year versus our prior expectation of down 40 basis points. Our retention has held up extremely well so far this year. But out of prudence, we are assuming a modest decline in Q4 for the same reasons we've outlined all year long.

我們正在提高我們的雇主服務保留指導，現在預計今年它只會下降 20 個基點，而我們之前的預期是下降 40 個基點。今年到目前為止，我們的保留率一直保持得非常好。但出於謹慎考慮，我們假設第四季度會出現小幅下滑，原因與我們全年概述的相同。

For U.S. pays per control, we're once again raising our outlook and now expect 6% to 7% growth versus our prior expectation of 5% to 6% growth, driven by the ongoing recovery in the labor force participation, combined with steady demand for labor from our clients. We are also raising our client funds interest outlook slightly to a range of $450 million to $455 million, up from our prior expectation of $440 million to $450 million.

對於美國按控制支付的費用，我們再次提高了我們的前景，現在預計增長 6% 至 7%，而我們之前的預期增長 5% 至 6%，這得益於勞動力參與率的持續復甦以及穩定的需求來自我們客戶的勞動力。我們還將客戶資金利息前景略微提高至 4.5 億至 4.55 億美元，高於我們之前預期的 4.4 億至 4.5 億美元。

There's no change to our 18% to 20% balance growth outlook. With just a few months remaining in fiscal '22, the benefit from higher new purchase rates for the recent yield curve shifts is modest, and therefore, we still expect yield to round to 1.4% for the year.

我們 18% 至 20% 的餘額增長前景沒有變化。在 22 財年僅剩幾個月的時間裡，近期收益率曲線移動的新購買率提高帶來的好處是有限的，因此，我們仍預計今年的收益率將接近 1.4%。

Moving on to ES margin, we are raising our outlook to now expect margins to be up 100 to 125 basis points versus up 75 to 100 basis points prior. This increase is mainly driven by the stronger revenue outlook and margin performance in Q3 versus our expectations.

轉向 ES 利潤率，我們正在上調我們的前景，現在預計利潤率將上升 100 至 125 個基點，而之前為上升 75 至 100 個基點。這一增長主要是由於第三季度收入前景和利潤率表現優於我們的預期。

Moving on to the PEO. We are narrowing our average worksite employee growth to 14% to 15% versus 13% to 15% prior, driven by continued momentum in new business bookings. We are likewise narrowing total PEO revenue to 14% to 15% growth, up from 13% to 15% growth prior. And we are raising PEO revenues, excluding 0 margin pass-throughs, to 15% to 17% growth from 14% to 16% growth prior.

轉到PEO。在新業務預訂持續增長的推動下，我們將平均工地員工增長率從之前的 13% 到 15% 縮小到 14% 到 15%。我們同樣將 PEO 總收入的增長幅度從之前的 13% 至 15% 縮小至 14% 至 15%。我們正在將 PEO 收入（不包括 0 利潤傳遞）從之前的 14% 到 16% 增長提高到 15% 到 17%。

For PEO margin, we are raising our guidance to now expect margins to be up 25 to 50 basis points rather than flat to down 50 basis points for the year. That's driven by an improvement in pass-through expenses, including more favorability from workers' compensation compared to our prior outlook.

對於 PEO 利潤率，我們正在提高我們的指導，現在預計今年的利潤率將上升 25 至 50 個基點，而不是持平至下降 50 個基點。這是由轉嫁費用的改善推動的，包括與我們之前的展望相比，工人薪酬的更多優勢。

Putting it together for our consolidated outlook, we now expect revenue to grow 9% to 10%, up from 8% to 9% prior. For adjusted EBIT margin, we now expect an increase of 75 to 100 basis points, up from 50 to 75 basis points prior. We are making no change to our tax rate assumption. And we now expect growth in adjusted diluted earnings per share of 15% to 17%, up from 12% to 14% prior.

綜合我們的綜合展望，我們現在預計收入將增長 9% 至 10%，從之前的 8% 上升至 9%。對於調整後的息稅前利潤率，我們現在預計將增加 75 至 100 個基點，高於之前的 50 至 75 個基點。我們沒有改變我們的稅率假設。我們現在預計調整後的攤薄後每股收益將增長 15% 至 17%，高於之前的 12% 至 14%。

Before we move on to Q&A, I wanted to quickly touch on fiscal '23. We're still going through our planning process, and so we won't be providing any specifics at this time. Clearly, there are going to be some unique puts and takes for fiscal '23. But overall, we feel very good about the momentum in the business, and we will remain focused on our medium-term growth objectives that we laid out at our November Investors Day. We look forward to providing our outlook next quarter.

在我們繼續進行問答之前，我想快速談談 23 財年。我們仍在進行我們的計劃過程，因此我們目前不會提供任何細節。顯然，23 財年會有一些獨特的看跌期權。但總體而言，我們對業務的發展勢頭感到非常滿意，我們將繼續專注於我們在 11 月投資者日制定的中期增長目標。我們期待在下個季度提供我們的展望。

Thank you, and I will now turn it back to the operator for Q&A.

謝謝，我現在將其轉回給接線員進行問答。

(Operator Instructions) We will take our first question from Peter Christiansen with Citi.

（操作員說明）我們將向花旗銀行的 Peter Christiansen 提出第一個問題。

Congrats on the solid execution this quarter, guys.

伙計們，祝賀本季度的穩健執行。

Thank you.

謝謝你。

Carlos, I have one -- I had a question about -- for a number of quarters, we talked about ASO, HRO becoming a larger contributor to ES. Just wondering if you had any thoughts on how that's contributing to the stickiness of retention at this point?

Carlos，我有一個問題——我有一個問題——在幾個季度中，我們談到了 ASO、HRO 成為 ES 的更大貢獻者。只是想知道你是否有任何想法，這對此時的留存粘性有何貢獻？

And then as a follow-up, given all the UI upgrades you've given across the platform, how does that translate to growth to add-on services? I'm thinking even things like a Wisely, those sorts of ancillary value-added products.

然後作為後續行動，考慮到您在整個平台上進行的所有 UI 升級，這如何轉化為附加服務的增長？我什至在想像 Wisely 這樣的輔助增值產品。

Sure. I'll take the first part, and I'll let Maria take the second part. On kind of the HRO business within ES, which, as you know, is kind of our full outsourcing solution or without the co-employment, the growth there has been quite robust on bookings, which obviously then is driving really robust growth in revenues.

當然。我會拍第一部分，我會讓瑪麗亞拍第二部分。關於 ES 內部的 HRO 業務，如您所知，這是我們的完整外包解決方案或沒有共同就業，預訂增長相當強勁，這顯然推動了收入的強勁增長。

The interesting thing about that business, I mean, you have to -- you almost have to call out, it's nice to be able to do it publicly, is unbelievable execution. Because in our business, when you get that kind of growth that quickly, it's very, very hard to manage. But somehow, they've managed to stay ahead in terms of headcount hiring for both implementation and service.

關於這項業務的有趣之處，我的意思是，你必須 - 你幾乎必須大聲疾呼，能夠公開做這件事很好，是令人難以置信的執行力。因為在我們的業務中，當你獲得如此快速的增長時，管理起來非常非常困難。但不知何故，他們設法在實施和服務的招聘人數方面保持領先。

And the business is just really performing incredibly well. Retention rates are holding up. Not just holding up, I think they are up versus the prior year, which was already a strong year, and I would say, contributing to the overall improvement in retention and stickiness.

而且這項業務的表現確實非常好。保留率保持不變。不只是堅持下去，我認為他們與前一年相比有所上升，前一年已經是強勁的一年，我想說，這有助於整體提高留存率和粘性。

So I would say that, that is probably -- I would get in trouble for saying this, [because I find] from all the other businesses, but that's got to be one of the star performers now. The PEO, obviously, is doing incredibly well also, and you can see that as a separate segment.

所以我會這麼說，那可能是——我會因為這樣說而遇到麻煩，[因為我發現]來自所有其他企業，但那現在必須是明星表演者之一。顯然，PEO 的表現也非常出色，您可以將其視為一個單獨的部分。

It's a little harder to see the HRO business. It's also getting big. I think, if I'm not mistaken, it's probably never publicly disclosed, but it's getting close to $1 billion in revenue. So that's a pretty solid business with -- again, without -- I'm probably not right to give you too much detail, but revenue growth is strong double digits, very strong double digits, with the 2 in front of it, say, and bookings growth is incredibly robust as well. Retention is strong. It's just really performing very well.

很難看到 HRO 業務。它也越來越大。我想，如果我沒記錯的話，它可能從未公開披露過，但它的收入接近 10 億美元。所以這是一個非常可靠的業務 - 再說一次，沒有 - 我可能不適合給你太多細節，但收入增長是強勁的兩位數，非常強勁的兩位數，前面有 2，比如說，預訂量的增長也非常強勁。保持力很強。它真的表現得非常好。

With respect to the new user experience, so I mentioned a bit about it during my prepared remarks, very excited, obviously, about the impact of the user experience across the entire portfolio. In terms of what it's going to do with respect to attach, I think you mentioned Wisely and other attach. It's hard to tease out specifically the impact of the new user experience at this point in the quarter or even for the year as it relates to any material impact to bookings or to attach.

關於新的用戶體驗，所以我在準備的發言中提到了一點，顯然，對於用戶體驗對整個產品組合的影響感到非常興奮。就附加方面的作用而言，我認為您提到了 Wisely 和其他附加。很難具體梳理出新用戶體驗在本季度甚至全年的影響，因為它與對預訂或附加的任何實質性影響有關。

However, we definitely believe in what we've developed and the impact it's going to make. So just to give a tiny bit more color. The new user experience is really based on a research-driven design. That research-driven design included our clients as well as our prospects to create a user experience that's very action-oriented in its navigation.

但是，我們絕對相信我們已經開發的產品以及它將產生的影響。所以只是給一點點更多的顏色。新的用戶體驗實際上是基於研究驅動的設計。這種以研究為導向的設計包括我們的客戶以及我們的潛在客戶，以創造一種在導航中非常以行動為導向的用戶體驗。

What that means specifically is the ability to move through the process payroll, if you will, or to your question, the ability to buy and attach in a very action-oriented navigation, which means you don't really need to know what's next in order to move through it. It also leverages artificial intelligence as well as machine learning to create a very personalized experience for the buyer or the user, if you will, so that it remembers how the specific individual likes to navigate through the system and serves it up that way in following subsequent sequences of usage.

這具體意味著能夠通過流程工資單，如果你願意，或者你的問題，購買和附加在一個非常面向行動的導航中的能力，這意味著你真的不需要知道接下來會發生什麼為了通過它。它還利用人工智能和機器學習為買家或用戶創建非常個性化的體驗，如果你願意的話，它會記住特定個人喜歡如何瀏覽系統並在後續後續操作中以這種方式提供服務使用順序。

So the other part that we're very excited, I mentioned rolling out the new user experience across the ADP Mobile App. The mobile experience, one of the things that will really become a competitive advantage for us, is the fact that the mobile experience will be not just for the end user, such as that person that would actually purchase Wisely, but also the practitioner.

所以我們非常興奮的另一部分，我提到了在 ADP 移動應用程序中推出新的用戶體驗。移動體驗是真正成為我們競爭優勢的因素之一，移動體驗不僅適用於最終用戶，例如實際購買 Wisely 的人，還適用於從業者。

And so it's a fully web-enabled user experience using the new user interface will certainly lend itself to a better competitive advantage for us in the future. And so as you can tell by my commentary, very excited what this is going to do for us, both as it relates to our sellers being able to demo and gain volume there as well as our buyers and clients being able to engage in something a lot more user-friendly, so that we can attach more business.

因此，使用新用戶界面的完全支持網絡的用戶體驗肯定會在未來為我們帶來更好的競爭優勢。因此，正如您從我的評論中可以看出的那樣，這將為我們帶來什麼非常興奮，因為這與我們的賣家能夠在那裡進行演示和獲得銷量以及我們的買家和客戶能夠參與某事有關更人性化，讓我們可以附加更多的業務。

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 Tien-Tsin Huang。

Great results, for sure. It looks like you're taking some share again on the PEO side. I just want to make sure I understood, the PEO revenue growth coming in beneath WSE growth, I know you said it was unusual. Some of it was benefits participation and salary driven. But just trying to understand, is that more of a mean reversion change that you're talking about? Or is there a quality sort of a focus that maybe we should be honing in on? I'm just trying to better understand that trend and if it might persist for some time.

很好的結果，當然。看起來你在 PEO 方面再次獲得了一些份額。我只是想確保我理解，PEO 收入增長低於 WSE 增長，我知道你說這很不尋常。其中一些是福利參與和工資驅動。但只是想了解一下，您所說的更多的是均值回歸變化嗎？或者是否有一種質量的焦點，也許我們應該磨練？我只是想更好地了解這種趨勢，以及它是否會持續一段時間。

Listen, I'm glad for the question, and I'm also glad for the answer, right? Because mean reversion is my favorite term in business. Because when you get into large businesses and large economies, that is -- it's a powerful force in the universe, and that's exactly what it is.

聽著，我很高興這個問題，我也很高興得到答案，對吧？因為均值回歸是我最喜歡的商業術語。因為當你進入大型企業和大型經濟體時，那就是——它是宇宙中一股強大的力量，而這正是它的本質。

If you remember, this happened with some of the data that was reported by the Fed and by us in terms of employment, that in the initial stages of the pandemic, the jobs that went away the most quickly in terms of quantity were kind of lower-wage jobs that, in general, don't have high benefits participation rates. And even though our PEO is generally white collar, the grey collar, we experienced the same thing there in the PEO. So ironically, at that time, it looked like our benefits per employee, worksite employee were rising, but it was really because of the averages and because of the mix shift.

如果你還記得的話，這發生在美聯儲和我們報告的一些就業數據上，在大流行的初始階段，數量上消失最快的工作崗位有點少-一般來說，福利參與率不高的有薪工作。儘管我們的 PEO 通常是白領、灰領，但我們在 PEO 中也經歷了同樣的事情。具有諷刺意味的是，當時，看起來我們的每位員工、工作場所員工的福利都在上升，但這實際上是因為平均水平和混合轉變。

And now we have this mean reversion, where, even though the white-collar jobs are growing and wages are growing, like everything is going exactly as you would want and expect in the PEO, you have this unusual thing because of the pandemic, with a lot more jobs coming back that are people who don't have benefits. So it makes the benefits revenue grow slower than the worksite employee number, but it has nothing to do with any kind of policy change or change in kind of our philosophy or what is really just a normalization back, in my opinion, to where we were before.

現在我們有了這種均值回歸，即使白領工作在增長，工資也在增長，就像在 PEO 中一切都按照你想要和期望的那樣進行，但由於大流行，你會遇到這種不尋常的事情，更多沒有福利的人回來工作。因此，它使福利收入的增長速度慢於工地員工人數，但這與任何類型的政策變化或我們理念的變化或在我看來實際上只是回歸到我們原來的位置的正常化無關前。

We're trying to assess kind of how long that takes, and it's probably another quarter or 2. There's a second factor that I think that's contributing to this, which is that state unemployment rates are coming in a little bit lower than we had expected because some states -- because of the strong employment market. Even though they initially raised unemployment rates because they thought that we're going to have big problems in terms of people filing for unemployment, obviously, now with what's happening, it's going in the other direction. And a few large states have actually lowered unemployment rate.

我們正在嘗試評估這需要多長時間，可能還要再等一到兩個季度。我認為還有第二個因素是造成這種情況的原因，那就是州失業率比我們預期的要低一點因為一些州——因為強勁的就業市場。儘管他們最初提高失業率是因為他們認為我們將在人們申請失業方面遇到大問題，但顯然，現在發生的事情正在朝著另一個方向發展。一些大州實際上已經降低了失業率。

That's not -- it's a factor that's not a huge factor. I think that the mix shift issue is mathematically -- and this mean reversion is 95% of the explanation. By the way, we don't necessarily mind it one way or the other because, as you know, we treat benefits revenue as a pass-through, so there's really no profit and no margins. So it's really not relevant for us in terms of how we manage the business, other than we have to explain it to, obviously, our esteemed analyst community.

那不是 - 這是一個不是一個巨大因素的因素。我認為混合偏移問題是數學上的——這個均值回歸是 95% 的解釋。順便說一句，我們不一定會介意這種方式或其他方式，因為如您所知，我們將福利收入視為傳遞，因此實際上沒有利潤也沒有利潤。因此，就我們如何管理業務而言，這對我們來說真的無關緊要，除非我們顯然必須向我們尊敬的分析師社區解釋它。

Our next question comes from Bryan Bergin with Cowen.

我們的下一個問題來自 Bryan Bergin 和 Cowen。

Question on bookings. You cited an acceleration toward the high end of the range in 3Q, and you're tracking below that in the first half of the year. So I'm curious, what were the key drivers of that better performance you saw in 3Q? Was it larger deals that were converting or some improvements in sales force productivity trends? And then just on the outlook for the fiscal year, it sounds like you're confident that momentum here is carrying through as well as, I guess, the removal of potential Omicron conservatism? So I just wanted to clarify if that was fair.

關於預訂的問題。您提到了第三季度向高端範圍的加速，而您在今年上半年的跟踪速度低於該範圍。所以我很好奇，你們在第三季度看到的更好表現的關鍵驅動因素是什麼？是更大的交易正在轉化還是銷售隊伍生產力趨勢有所改善？然後就本財年的前景而言，聽起來你相信這裡的勢頭正在延續，我猜，潛在的 Omicron 保守主義被消除了？所以我只是想澄清一下這是否公平。

Fair enough. We did see strength in the third quarter. As you mentioned, we saw strength that was in line with the higher end of our full year guidance in the third quarter, specifically, so an accelerated result. We expected that, and we delivered that. We did see strength in our downmarket businesses, so specifically the RUN platform sales as well as retirement services. We also saw strength in our international business.

很公平。我們確實在第三季度看到了實力。正如你所提到的，我們看到了與第三季度全年指導的高端一致的實力，特別是加速的結果。我們預料到了這一點，並且我們做到了。我們確實看到了低端業務的實力，特別是 RUN 平台銷售和退休服務。我們還看到了國際業務的實力。

And then last but not least, I think Carlos mentioned during his prepared remarks the strength that we found PEO bookings, but the entire HRO portfolio, which is what's reported in Employer Services, did have specific strengths. So again, that's the downmarket: RUN, retirement, international and the Employer Services HRO. That's where we saw the strength in terms of how we feel stepping into the fourth quarter.

最後但並非最不重要的一點是，我認為 Carlos 在他準備好的講話中提到了我們發現 PEO 預訂的優勢，但整個 HRO 投資組合，即雇主服務中報告的內容，確實具有特定的優勢。再說一次，這就是低端市場：RUN、退休、國際和雇主服務 HRO。這就是我們在進入第四季度的感覺方面看到了力量的地方。

In terms of in quarter, the strength that we saw was actually delivered towards the end of the quarter, if you will, in March, and that really gave us the confidence to narrow our guidance heading into the fourth quarter and feel optimistic as we step into the fourth quarter with respect to the overall macro environment. And so you mentioned the -- the Omicron that we [nodded] to last quarter. We didn't see that materialize.

就季度而言，我們看到的實力實際上是在三月份的季度末實現的，這確實讓我們有信心在進入第四季度時縮小我們的指導範圍，並在我們邁出步伐時感到樂觀就整體宏觀環境而言，進入四季度。所以你提到了我們上個季度[點頭] 的 Omicron。我們沒有看到這成為現實。

And as we sit here today, the economic tailwinds that we see in the market, the challenges that businesses are facing with the increased complexity of new legislation and the tight labor market. There are a lot of things that are out there that are giving us the confidence that we will continue to execute in the fourth quarter. And as such, we felt it right to narrow the guidance range to the 13% to 16% for the full year outlook.

當我們今天坐在這裡時，我們在市場上看到的經濟順風，隨著新立法的複雜性增加和勞動力市場緊張，企業面臨的挑戰。有很多事情讓我們有信心在第四季度繼續執行。因此，我們認為將全年展望的指導範圍縮小至 13% 至 16% 是正確的。

And just as a reminder, when we talk about bookings, and I think Maria mentioned it, and I'm sure all of you remember that we really talk about ES bookings. It was several years ago that we changed our approach to disclosures because we thought that disclosures in the PEO were -- we're better in a format where we really talked about growth of worksite employees. It's very easy to kind of do the math in the PEO when you talk in those terms. But to be crystal clear, if PEO bookings were included in overall bookings, they would have been meaningfully higher for ADP.

提醒一下，當我們談論預訂時，我想 Maria 提到了它，我相信你們所有人都記得我們真的在談論 ES 預訂。幾年前，我們改變了披露方式，因為我們認為 PEO 中的披露是——我們真正談論工作場所員工增長的格式更好。當你用這些術語說話時，很容易在 PEO 中進行數學運算。但需要明確的是，如果 PEO 預訂包含在整體預訂中，那麼 ADP 的預訂量會明顯更高。

Okay. That's helpful. And I know you don't want to quantify fiscal '23 outlook yet, but I'll give this a shot. What are some of the puts and takes we should be thinking about for next year? Anything you want to call out as it may relate to comps or dynamics from this fiscal year that may not necessarily carry forward?

好的。這很有幫助。而且我知道您還不想量化 23 財年的前景，但我會試一試。明年我們應該考慮哪些看跌期權？您想指出的任何可能與本財政年度的補償或動態相關的內容可能不一定會結轉嗎？

Yes. I think that, first of all, no specifics for '23. We're going to wait until the next earnings call we have before we give more color on '23. But as I said earlier, we we're very comfortable with the fundamentals, and we think we're in a good spot. We've overcome some of the challenges that we referenced last quarter in terms of making sure we're appropriately staffed for the bigger business we now have. We did that well going into the busiest quarter of the year. So that's all in good shape.

是的。我認為，首先，23 年沒有具體細節。我們將等到下一次財報電話會議，然後再在 23 年提供更多色彩。但正如我之前所說，我們對基本面非常滿意，我們認為我們處於一個好位置。我們已經克服了上個季度提到的一些挑戰，以確保我們為現在擁有的更大業務配備適當的人員。進入今年最繁忙的季度，我們做得很好。所以這一切都很好。

Certainly, you guys are probably better at the numbers than me on the -- what's the potential impact from flow balances, et cetera. Certainly, it's pretty clear that we will have higher client fund interest next year. However, how much, we were not quite sure yet. Even though we're seeing rates go up, certainly, there's lots of volatility in the rates.

當然，你們在數字方面可能比我更好——流量平衡的潛在影響是什麼，等等。當然，很明顯我們明年會有更高的客戶資金利息。但是，多少，我們還不太確定。儘管我們看到利率上升，但當然，利率波動很大。

There's certainly lots of things going on. So I'll come back to the way I ended my prepared remarks, and that was that we very much will be mindful of what we shared with everybody at the Investor Day in November, and we will make sure that we have those targets in mind as we prepare and we get ready to release more information on '23.

肯定有很多事情要發生。所以我會回到我結束準備好的演講的方式，那就是我們將非常注意我們在 11 月的投資者日與大家分享的內容，我們將確保我們牢記這些目標隨著我們的準備，我們準備發布有關 '23 的更多信息。

And it's a non-GAAP term, but it's safe to say that client funds interest will be up a lot.

這是一個非 GAAP 術語，但可以肯定地說，客戶資金的利息會增加很多。

Our next question comes from Eugene Simuni with MoffettNathanson.

我們的下一個問題來自 Eugene Simuni 和 MoffettNathanson。

I'll start with a macro level question. So ADP obviously has its finger on the pulse, with very large [slice] on the U.S. economy. So it's always very interesting to hear you guys' perspective on kind of a real-time read of what's going on across the different pockets of your client base, especially now that we're experiencing kind of volatile macro environment. Would you mind providing us with a little bit of that commentary, what are you seeing today across your client base markets of strength and weakness?

我將從一個宏觀層面的問題開始。因此，ADP 顯然掌握了脈搏，對美國經濟有著非常大的影響。因此，聽到你們對實時閱讀客戶群不同領域正在發生的事情的看法總是很有趣，尤其是現在我們正在經歷一種不穩定的宏觀環境。您是否介意向我們提供一些評論，您今天在您的客戶群市場中看到了哪些優勢和劣勢？

Sure. As you know, we obviously -- our commentary is generally focused on the labor markets. Like this morning, I was hearing reports about what's happening with consumer spending, which is quite robust. That obviously ends up having an impact on the labor markets because people who are in the service sector or people who are serving consumers end up hiring people in order to fulfill those -- that demand. But generally speaking, our comments are really around labor markets.

當然。如您所知，我們顯然 - 我們的評論通常集中在勞動力市場上。就像今天早上一樣，我聽到了有關消費者支出情況的報告，這是相當強勁的。這顯然最終會對勞動力市場產生影響，因為從事服務業的人或為消費者服務的人最終會僱用人員來滿足那些需求。但總的來說，我們的評論實際上是圍繞勞動力市場。

And as you can see from our pays per control growth, some of which is related to the previous question about comparisons, right? Like the comparisons are easier, and they will get harder next year in terms of percentages. But the percentages don't matter as much as the absolute numbers, right? And the absolute numbers are strong, I think, are robust. And I think as we alluded to, the labor market is almost fully recovered.

正如您從我們的按控制增長支付的費用中看到的那樣，其中一些與前面關於比較的問題有關，對吧？就像比較更容易一樣，明年它們的百分比會變得更難。但是百分比並不像絕對數字那麼重要，對吧？我認為，絕對數字很強勁。我認為正如我們所提到的，勞動力市場幾乎完全恢復了。

We obviously keep an eye also on things like GDP, GDP growth. I mean absolute GDP dollars have already surpassed pre-pandemic levels, and they're kind of in line to get back to trend growth or exceed trend growth on a real basis, right, which -- because you have to factor in, obviously, the fact that we have some higher inflation now. So I mean, our perspective, generally, is that the economy is very strong, like based on things that we're looking at in our business. But we obviously live in the real world that we have to think about the next quarter or 2, but also about 12 months from now and 24 months from now.

我們顯然也關注 GDP、GDP 增長等問題。我的意思是，絕對 GDP 美元已經超過了大流行前的水平，它們在某種程度上符合回歸趨勢增長或在實際基礎上超過趨勢增長，對，這是因為你必須考慮到，顯然，事實上，我們現在有一些更高的通貨膨脹。所以我的意思是，一般來說，我們的觀點是經濟非常強勁，就像基於我們在業務中看到的事情一樣。但我們顯然生活在現實世界中，我們必須考慮下一季度或第二季度，但也要考慮從現在開始的 12 個月和從現在開始的 24 個月。

And Finance 101 would tell you that increase in interest rates that are expected from the Fed and they have already been priced in, which are helping our client funds interest on the 2-year, 5 years, 7 years and 10 years, I think will all slow, at some point, the economy, which is the intention, I think, of the Federal Reserve to get inflation under control. Having said all that, you have to make your own decisions on whether or not that will be navigated appropriately to a "soft landing."

金融 101 會告訴你，美聯儲預期的利率上升並且已經被定價，這有助於我們的客戶為 2 年、5 年、7 年和 10 年的利息提供資金，我認為這會在某種程度上，經濟放緩，我認為這是美聯儲控制通脹的意圖。說了這麼多，你必須自己決定是否會適當地導航到“軟著陸”。

But we had years from 2011 through or, call it, 2010 through 2020 before right before the pandemic of what I would call relatively -- historically speaking, reasonable growth in GDP, call it, 2%, 2.5% GDP growth, gradually recovering employment. So if we go from 3% or 5% GDP growth to 2.5% or 2%, we like that. And I think we've delivered some pretty outstanding results for all stakeholders during that kind of period of time. So we would not like a recession, just like no one else would like a recession.

但是，從 2011 年到 2010 年到 2020 年，在我稱之為相對的大流行之前，我們有幾年的時間——從歷史上看，GDP 的合理增長，稱之為 2%、2.5% 的 GDP 增長，逐步恢復就業.因此，如果我們將 GDP 增長率從 3% 或 5% 提高到 2.5% 或 2%，我們會喜歡這樣。我認為我們在這段時間內為所有利益相關者提供了一些非常出色的成果。所以我們不喜歡經濟衰退，就像沒有人喜歡經濟衰退一樣。

But I think if you believe that the best is behind us, that doesn't necessarily mean that things are not going to be good going forward. Because we -- all the indicators we're seeing right now are really strong underlying labor markets. And we also have in the U.S. an administration that will be in the seat for another, call it, 3 years despite what happens in the midterm, that is generally more favorable towards employment regulation and -- and that, I think, is a favorable tailwind for our business as well in terms of just on a macro -- on a very macro level.

但我認為，如果你相信最好的已經過去，那並不一定意味著事情不會好轉。因為我們——我們現在看到的所有指標都是非常強勁的潛在勞動力市場。而且我們在美國也有一個政府將在另一個席位上任職，稱之為 3 年，儘管在中期發生了什麼，這通常更有利於就業監管，而且我認為這是一個有利的就宏觀而言 - 在非常宏觀的層面上，我們的業務也是順風。

So I think we like the environment. If -- the best scenario for us, frankly, which would be a home run, is that growth gradually slows not to the point where there's a recession, but where interest rates stay at the rates that they're at, particularly like kind of the 3 to 5 and the 7 years, and that really is a pretty large tailwind for us from a bottom line standpoint.

所以我認為我們喜歡環境。如果 - 坦率地說，對我們來說最好的情況是，這將是一個本壘打，是增長逐漸放緩到沒有衰退的程度，但利率保持在他們所處的水平，特別是像那種3 到 5 年和 7 年，從底線的角度來看，這對我們來說確實是一個很大的順風。

Got it. Got it. Very, very helpful. And then quickly for my follow-up, staying with the macro theme, inflation is obviously running high. So maybe for Don, can you give us a quick overview of how inflation you think influenced -- impacted your results this quarter? What were the puts and takes in the P&L from inflation?

知道了。知道了。非常非常有幫助。然後很快我的跟進，停留在宏觀主題上，通脹顯然在高位運行。所以也許對於唐來說，您能否快速概述一下您認為通貨膨脹如何影響 - 影響了您本季度的業績？通貨膨脹帶來的損益有哪些看跌期權？

Yes. So we've done a couple of things over the last quarter. As we said, we were going to on the last call. And we did an off-cycle salary increase to make sure that -- we kept our associates happy in whole. So that was positive. We also had some bonus programs and some sales commissions-accrued programs that were certainly anticipated and booked in the quarter. So we are -- from a cost side, we were able to do those things and still delivered the improved margins. So we think that was very positive for us to do.

是的。所以我們在上個季度做了幾件事。正如我們所說，我們打算參加最後一次通話。我們進行了非週期加薪以確保 - 我們讓我們的員工整體滿意。所以這是積極的。我們還有一些獎金計劃和一些銷售佣金累積計劃，這些計劃肯定是在本季度預期和預訂的。所以我們 - 從成本方面來看，我們能夠做這些事情並且仍然提供提高的利潤率。所以我們認為這對我們來說是非常積極的。

The other side of this, of course, is price increases, and 2 aspects for the price increases. Certainly, we haven't yet -- although planned, we haven't yet initiated large price increases with our installed base. We will make sure that we do those things, accordingly reflecting inflation, and most importantly, reflecting to make sure that our clients still get great value from us in a competitive environment.

當然，另一方面是價格上漲，以及價格上漲的兩個方面。當然，我們還沒有——儘管有計劃，但我們還沒有對我們的安裝基礎發起大幅提價。我們將確保我們做這些事情，相應地反映通貨膨脹，最重要的是，反映以確保我們的客戶在競爭激烈的環境中仍然從我們那裡獲得巨大的價值。

And what we did do, though, and we signaled this in the last call as well, we have increased the pricing on some of our new offers, the offers we -- the sales we had in the last quarter. But that's having a very minimal impact on Q3 and certainly won't have an enormous impact on the full year either.

然而，我們所做的，我們在上次電話會議中也發出了信號，我們提高了一些新報價的定價，我們的報價 - 我們在上個季度的銷售額。但這對第三季度的影響非常小，而且肯定不會對全年產生巨大影響。

So we are making sure that we're focused on pricing, both in the base and with new opportunities and new prospects, and making sure that we're adjusting our wage levels to keep our employees and deliver the good service that we've delivered that is contributing to the high retention rate that we have.

因此，我們確保我們專注於定價，無論是在基礎上還是在新機會和新前景上，並確保我們正在調整我們的工資水平以留住我們的員工並提供我們提供的優質服務這有助於我們擁有高保留率。

And the only other thing that I would add that we may not always directly link to inflation is, with some beating the dead horse here, but the client funds interest, obviously, inflation is what's driving these higher interest rates. It also happens to also drive higher balances. A lot of our balances are driven by our tax business, but wages, some of those taxes capped. But for example, federal withholding taxes are not necessarily capped. So the more people get paid, the more taxes we collect and have to remit to various agencies.

我要補充的唯一另一件事是，我們可能並不總是與通貨膨脹直接相關，有些人在這裡打死馬，但客戶資金利息，顯然，通貨膨脹是推動這些更高利率的原因。它也恰好也推動了更高的餘額。我們的很多餘額都是由我們的稅收業務驅動的，但是工資，其中一些稅收是有上限的。但例如，聯邦預扣稅不一定有上限。因此，得到報酬的人越多，我們徵收的稅款就越多，並且必須匯給各個機構。

And wages are a portion of our float balances. And clearly, there is an impact from there. The overall wage inflation, forget about our own inflation that Don is referring to, but the inflation in our client base in terms of their own wages of their employees, is really driving -- is helping our balance growth, for sure.

工資是我們浮動餘額的一部分。顯然，這會產生影響。總體工資通脹，忘記了唐所指的我們自己的通脹，但我們客戶群的通脹就他們自己的員工工資而言，確實在推動 - 肯定有助於我們的平衡增長。

But more importantly, it's obviously driving a belief that interest rates need to rise rather rapidly, which is now being already factored in into -- even though the Fed controls obviously set funds rate, you can all see what's happening with the 1-year, 2-year, 3-year, 5-year and what the expectation is for -- that's all related obviously directly to inflationary expectations.

但更重要的是，這顯然推動了一種信念，即利率需要相當迅速地上升，現在已經考慮到這一點——即使美聯儲控制顯然設定了基金利率，你們都可以看到 1 年期發生了什麼， 2 年、3 年、5 年以及預期是什麼——這些顯然都與通脹預期直接相關。

Our next question comes from Kartik Mehta with Northcoast Research.

我們的下一個問題來自 Northcoast Research 的 Kartik Mehta。

I was just hoping maybe to get a little bit more on the pricing comments you made. If you look at pricing and compared to what you anticipate getting and compared it to historical levels, what will be a good way to -- are you able to kind of quantify that or maybe just a good way to think about the opportunity ADP has going forward?

我只是希望對您所做的定價評論有更多了解。如果您查看定價並將其與預期獲得的價格進行比較，並將其與歷史水平進行比較，那麼您是否能夠量化這一點，或者只是考慮 ADP 所擁有機會的好方法？向前？

I think the safest thing for us to say right now because, as Don said, we really haven't finalized that yet as we have not finalized our '23 operating plan. So I think Don was giving you kind of directional color, which is 100% accurate.

我認為我們現在說的最安全的話，因為正如唐所說，我們真的還沒有最終確定，因為我們還沒有最終確定我們的 23 年運營計劃。所以我認為唐給了你一種方向性的顏色，它是 100% 準確的。

We've been doing a lot of work, and Maria and the team have been doing a lot of work on what's the appropriate pricing policy, if you will. Don mentioned the fact that on new business, it's relatively easy because that's something that we control timing-wise, whereas price changes to the book of business, we have a cycle that we go through, and we decided not to do anything unnatural or out of cycle. So that decision is still kind of in front of us.

我們已經做了很多工作，Maria 和團隊一直在做很多工作來確定合適的定價政策，如果你願意的話。唐提到，在新業務上，這相對容易，因為這是我們在時間上控制的事情，而業務賬簿的價格變化，我們經歷了一個循環，我們決定不做任何不自然或不正常的事情的周期。所以這個決定仍然擺在我們面前。

But I think Don used the word competitive. We do not live in a vacuum, and so we are going to do what's appropriate based on what's happening with inflation, but also with what's happening with competitors. So we're going to be watching very carefully what everyone is doing from the -- obviously, from the sidelines since we obviously don't have any direct insight into what our competitors are doing. But you get competitive signaling, and you get hearsay here and there.

但我認為唐使用了競爭這個詞。我們不是生活在真空中，因此我們將根據通貨膨脹的情況以及競爭對手的情況做適當的事情。因此，我們將非常仔細地觀察每個人在做什麼——顯然，在場外，因為我們顯然對我們的競爭對手在做什麼沒有任何直接的了解。但是你會得到競爭信號，你會到處聽到傳聞。

So we're looking at all those things, but it's safe -- I guess, the best way to describe it is, whatever our price increase had been historically, and it was probably consistent for almost 10 years in terms of kind of what we were telling you in terms of what it represented and as a percent of revenue, it's safe to say that, that's going to be higher.

所以我們正在研究所有這些東西，但它是安全的——我想，描述它的最好方式是，無論我們的價格上漲歷史上是什麼，而且就我們的產品種類而言，它可能在近 10 年內是一致的告訴你它代表什麼以及佔收入的百分比，可以肯定地說，這會更高。

And you kind of have to draw your own conclusions that if inflation was 2%, and now it's 4% to 5%, you could infer because our costs, not just our wage cost, which Don alluded to, we've already had to kind of build in higher costs for our own associates, we have other costs. We have other services and other things that are being provided to us that are like every other company, and we got to cover those costs. I think our philosophy is we would like to be in line with what's happening in the market.

你必須得出你自己的結論，如果通貨膨脹是 2%，現在是 4% 到 5%，你可以推斷，因為我們的成本，而不僅僅是我們的工資成本，Don 提到，我們已經不得不為我們自己的員工增加了更高的成本，我們還有其他成本。我們有其他服務和其他東西提供給我們，就像其他公司一樣，我們必須承擔這些費用。我認為我們的理念是我們希望與市場上正在發生的事情保持一致。

And then just one last question. Just on the broad portfolio, any thoughts about changing how you manage it or going shorter or longer, just because of where rates are and the volatility, at least, in the near term?

然後是最後一個問題。就廣泛的投資組合而言，是否有任何關於改變管理方式或縮短或延長投資組合的想法，僅僅是因為利率和波動性，至少在短期內？

We get this question often. And at the end of the day, we keep coming back to the same thing, and that's the safety, diversification and liquidity of what we invest in. So it's unlikely we're going to make any major changes to the way we invest funds.

我們經常收到這個問題。歸根結底，我們不斷回到同一件事上，這就是我們投資的安全性、多樣化和流動性。因此，我們不太可能對投資資金的方式做出任何重大改變。

I think we want to be -- we want to certainly do well with our portfolio, but we also want to be prudent, and so we'll continue to do that. So there's really no impeditive or imperative for us to make any changes to the way we've been managing those funds in the near, mid- to long term.

我認為我們希望——我們當然希望在我們的投資組合上做得很好，但我們也希望保持謹慎，因此我們將繼續這樣做。因此，對於我們來說，在近期、中長期內對我們管理這些資金的方式進行任何改變確實沒有任何阻礙或必要性。

And I think it's also safe to say that our philosophy is that we run an HCM technology services company. And this is a really nice side benefit that for however long we've been in this business, we have this float income, and it goes up and down based on interest rates and the economy and so forth. And I think compared to 10 years ago, it's a much smaller portion of our bottom line. And so that is both good and bad, right? I would have enjoyed my life and my tenure a lot more had interest rates not been as low as they were for as long as they were.

而且我認為可以肯定地說，我們的理念是我們經營一家 HCM 技術服務公司。這是一個非常好的附帶好處，無論我們從事這項業務多久，我們都有浮動收入，它會根據利率和經濟等因素上下波動。而且我認為與 10 年前相比，它在我們的底線中所佔的比例要小得多。所以這有好有壞，對吧？如果利率沒有像現在這麼低，我會更享受我的生活和任期。

But having said all that, it puts us in a much better position where it's much more clear now that ADP's core earnings are not driven by fluctuations in interest rates. And the reason we ladder our portfolio is primarily because, as Don said, about safety and security and liquidity, but it's also because philosophically, we're not trying to gain the market. We're not trying to time the market. We are running an HCM technology services business, and that's our focus.

但話雖如此，它讓我們處於一個更好的位置，現在更加清楚的是，ADP 的核心收益不受利率波動的驅動。正如唐所說，我們階梯式投資組合的原因主要是因為安全性和流動性，但這也是因為從哲學上講，我們並沒有試圖贏得市場。我們不是想給市場計時。我們正在經營 HCM 技術服務業務，這是我們的重點。

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

我們的下一個問題來自巴克萊銀行的 Ramsey El-Assal。

Nice results on margins in the quarter. You guys beat our number pretty handily despite, I think, a headcount increase. Could you help us think through the puts and takes with that performance in terms of sales productivity or other drivers? And also sort of how you're thinking about those primary levers for margin expansion as we move forward.

本季度利潤率的良好結果。儘管我認為員工人數有所增加，但你們還是輕鬆擊敗了我們的人數。您能否幫助我們考慮銷售效率或其他驅動因素方面的表現？以及在我們前進的過程中，您如何考慮那些用於擴大利潤率的主要槓桿。

Yes so as I said a few minutes ago, we were very happy with the ability to hire quite a number of service implementation people going into this -- going into the third quarter because that's obviously the busiest time of our year. So we made sure that we got as many people in as we could, and we did quite well.

是的，正如我幾分鐘前所說，我們很高興能夠聘請相當多的服務實施人員參與其中——進入第三季度，因為這顯然是我們一年中最繁忙的時間。所以我們確保盡可能多的人參與進來，而且我們做得很好。

And I think the retention rates are suggesting that we've continued to do a good job on behalf of our clients because they're sticking around. So very, very positive. Going forward, I think as we -- once again, coming back to the plan a little bit that we're still putting together, but certainly, as we continue to grow, we'll continue to make sure that we staff accordingly.

而且我認為保留率表明我們繼續代表我們的客戶做得很好，因為他們一直在堅持。非常非常積極。展望未來，我認為，當我們再次回到我們仍在製定的計劃時，但可以肯定的是，隨著我們的不斷發展，我們將繼續確保我們的工作人員相應地配備。

And really not too much color to add there other than we've been successful at the hiring, as we said we would be. And it's not going to -- it's not going to change dramatically and have any different impact on our overall margin than what we anticipated. And I don't know -- the sales continue to go very well, doing very well. We've talked the last time about productivity and things reverting back to means. And I don't know, Maria, if you want to make a comment about sales productivity, we've had -- said good results.

除了我們已經成功招聘之外，真的沒有太多的顏色可以添加，正如我們所說的那樣。而且它不會 - 它不會發生巨大變化，並且不會對我們的整體利潤率產生任何不同於我們預期的影響。而且我不知道 - 銷售繼續很好，做得很好。我們上次談到生產力和回歸手段的事情。我不知道，瑪麗亞，如果你想對銷售效率發表評論，我們已經 - 說好的結果。

Yes, happy to add there. the investments that we're making into the overall sales ecosystem continues to be very balanced. So it's really all about the seller enablement. So as mentioned many times, we have this world-class sales force that's out there directly distributing our products, and we enable them with an entire ecosystem of modern seller tools.

是的，很高興在那裡添加。我們對整個銷售生態系統的投資仍然非常平衡。所以這真的是關於賣家支持。因此，正如多次提到的，我們擁有世界級的銷售隊伍，直接分銷我們的產品，我們為他們提供了完整的現代賣家工俱生態系統。

That's definitely where we spent the last couple of years investing, especially as clients continue to pivot between wanting in-person and virtual. So seeing great productivity there. Also seeing investments in brand and marketing and advertising. That's a big piece of the balanced approach that we take. And again, I don't see huge shifts in terms of the balanced approach that we're taking, but it is really an area that we continue to invest.

這絕對是我們過去幾年投資的地方，尤其是當客戶繼續在想要面對面和虛擬之間轉換時。所以在那裡看到了巨大的生產力。還看到了對品牌、營銷和廣告的投資。這是我們採取的平衡方法的重要組成部分。再說一次，我沒有看到我們正在採取的平衡方法發生巨大變化，但這確實是我們繼續投資的一個領域。

I should mention, too, in that laundry list, digital advertising. So that's an area that we continue to see significant performance year-on-year in our downmarket and our mid-market in terms of the execution there. So all of these things are really about continuing the approach that we've had to enable the strong sales execution that we've seen this year and going forward.

我還應該在那個洗衣清單中提到數字廣告。因此，就執行而言，這是我們在低端市場和中端市場繼續看到同比顯著表現的領域。所以所有這些事情實際上都是關於繼續我們必須實現我們今年和未來的強大銷售執行的方法。

One last thing on margins that I would add because I think it's something that we've been for years talking about is -- just a reminder that the overall ADP margin does get impacted by the mix of PEO and the growth rate of PEO compared to employer services.

關於利潤率我要補充的最後一件事是，因為我認為這是我們多年來一直在談論的事情——只是提醒一下，總體 ADP 利潤率確實受到 PEO 的混合和 PEO 增長率的影響雇主服務。

So from a GAAP standpoint, we do include zero-margin pass-throughs, and we believe that's the right approach. And I think the SEC believes that's the right approach. But I think, clearly, if you took out zero-margin pass-throughs from the PEO, you'd have a very different margin profile of that business, and hence, you would have a very different margin overall for ADP.

因此，從公認會計原則的角度來看，我們確實包括零利潤傳遞，我們相信這是正確的方法。我認為 SEC 認為這是正確的做法。但我認為，很明顯，如果你從 PEO 中取出零利潤傳遞，那麼你的該業務的利潤率就會有很大不同，因此，ADP 的總體利潤率也會有很大不同。

I only raised that because it is important to look at those 2 separately because you do have a mix shift issue that happens that doesn't necessarily tell you what the underlying strength of those businesses are. And that sometimes helps us in terms of our story, sometimes it hurts us, but it's the appropriate thing to guide you to, to look at. Because in this case, for example, the underlying margin is much higher because of the pressure that we're getting from zero-margin pass-through as a result of that mix.

我之所以提出這一點，是因為分開看這兩個很重要，因為你確實有一個混合轉移問題，它不一定告訴你這些業務的潛在實力是什麼。有時這對我們的故事有幫助，有時它會傷害我們，但這是引導你去看、去看的合適的東西。因為在這種情況下，例如，由於混合導致我們從零保證金傳遞中獲得的壓力，基礎保證金要高得多。

Okay. That's very helpful. And could you comment on or update us on your sort of M&A and/or capital allocation strategy? And just in the context of the current macro backdrop, are you seeing the opportunity -- M&A opportunities change? Or how are you framing that up internally in terms of your priority -- prioritizations?

好的。這很有幫助。您能否就您的併購和/或資本配置策略發表評論或更新我們的信息？在當前宏觀背景下，您是否看到了機會——併購機會發生了變化？或者你是如何在內部根據你的優先級來構建的——優先級？

Yes. So I'll just start with opportunities. Certainly, as always, there is no shortage of things floating around and things to assess and review, et cetera. So we continue to do that. But as Carlos has said, and we've said over a long period of time, if we're ever going to do anything other than a tuck-in here and there, which we had -- we did have one in Q2.

是的。所以我會從機會開始。當然，與往常一樣，不乏漂浮的事物以及需要評估和審查的事物等等。所以我們繼續這樣做。但正如 Carlos 所說，我們已經說過很長一段時間了，如果我們除了在這里和那裡做任何事情之外，我們有 - 我們在第二季度確實有一個。

But other than tuck-in here and there, we're very disciplined in making sure that we're just not adding additional products, where we already have products, and making sure that we can keep our portfolio as clean as possible. So we continue to look at opportunities and evaluate things, and we'll make the right choices when the time -- should the time come.

但除了在這里和那裡塞進，我們非常自律，以確保我們不會在我們已經有產品的地方添加額外的產品，並確保我們可以保持我們的產品組合盡可能乾淨。因此，我們會繼續尋找機會並評估事情，我們會在時機成熟時做出正確的選擇——如果時機成熟的話。

On the -- just in terms of our overall philosophy, I don't think we've changed our philosophy. We continue to be committed to the share buybacks that we've committed to. We have committed to dividends in the 55% to 60% range. Although we were a little bit higher, I think we were 61% last year, but we're committed to that 55% to 60% range.

關於 - 就我們的整體理念而言，我認為我們沒有改變我們的理念。我們將繼續致力於我們承諾的股票回購。我們承諾派發 55% 至 60% 的股息。雖然我們稍微高一點，但我認為我們去年是 61%，但我們致力於 55% 到 60% 的範圍。

The -- even though the markets are off -- just back to opportunities for M& a little bit more. Even though the markets are off a little bit, and I think that the valuations that are out there are still quite high, the expectations at a number of people who are looking to do something with their current operations, their expectations really haven't adjusted to or reflected to what we're seeing in the market. So it's not any easier yet. But we will watch, we will evaluate. And if we see something or things that make sense, we'll do what's appropriate.

- 即使市場關閉 - 只是回到了併購的機會多一點。儘管市場有點偏離，而且我認為那裡的估值仍然很高，但許多希望對當前業務有所作為的人的期望，他們的期望確實沒有調整反映或反映我們在市場上看到的情況。所以這並不容易。但我們會觀察，我們會評估。如果我們看到有意義的事情或事情，我們會做適當的事情。

Our next question comes from Mark Marcon with Baird.

我們的下一個問題來自 Mark Marcon 和 Baird。

I wanted to dig in a little bit on the bookings commentary. Can you talk a little bit about, with RUN, you saw strong growth there how much of that was new businesses versus competitive takeaways? And how would you characterize the competitive takeaways?

我想深入了解預訂評論。您能否談一談 RUN，您看到了強勁的增長，其中有多少是新業務與競爭性外賣？您如何描述競爭優勢？

Are they from your biggest competitor in Rochester? Or are you seeing more from locals and regionals that haven't been able to keep up with the technology changes? Just any sort of depth there.

他們來自你在羅切斯特的最大競爭對手嗎？或者您是否從無法跟上技術變化的當地人和地區看到更多？只是那裡的任何深度。

And then can you also talk a little bit about the retirement service solutions that you have and what you're seeing there. And lastly, can you discuss a little bit what you're seeing with regards to Workforce Now and the mid-market?

然後你能不能談談你擁有的退休服務解決方案以及你在那裡看到的東西。最後，您能否談談您對 Workforce Now 和中端市場的看法？

So happy to be the one to start here in terms of the strength in bookings. So specifically to RUN, Mark, I think in terms of the commentary around the competitors in Rochester and others, what I would say there is, our continued focus on competitive takeaways has not waned. In terms of the strength of actual RUN sales and bookings performance, it's partially anchored in the amount of new business formations that we've continued to see. And so there is definitely strength there, but certainly not for a lack of interest in the competitive side of the house.

就預訂實力而言，很高興成為這裡的起點。所以特別是 RUN，馬克，我認為就羅切斯特和其他競爭對手的評論而言，我想說的是，我們對競爭性外賣的持續關注並沒有減弱。就實際 RUN 銷售和預訂表現的實力而言，它部分取決於我們繼續看到的新業務形式的數量。所以那里肯定有實力，但肯定不是因為對房子的競爭方面缺乏興趣。

To touch on retirement services for a minute as well, since you asked about that, I would say there's definitely tailwinds there in terms of attach specific to our RUN portfolio. And so as you're aware, significant legislative changes that have happened in the retirement environment state by state, and that's yielded, say, a tailwind for us in terms of the offer that we have.

再談一談退休服務，既然你問了這個問題，我想說的是，在我們的 RUN 投資組合特定的附加方面肯定有順風。如您所知，各州在退休環境中發生的重大立法變化，例如，就我們所擁有的提議而言，這為我們帶來了順風。

And certainly, that makes an impact in terms of our ability to sell new logos as well as competitive takeaways because the combination of RUN and retirement and that, in this type of an environment, is an incredibly compelling to compete out there in the market. So I don't know, Carlos, if you have anything else to add to that.

當然，這對我們銷售新徽標的能力以及競爭性外賣產生了影響，因為 RUN 和退休的結合，在這種環境中，在市場上競爭是非常有吸引力的。所以我不知道，卡洛斯，你還有什麼要補充的。

No, I mean, we try to stay away from, obviously, any kind of -- making comments about specific competitors, but I would say that, specifically in SBS, we do watch this kind of balance of trade very carefully. And I think -- I talk about it every quarter in terms of it's important to me, like one of the most important things for us in terms of long-term sustainability and durability of our business is market share, it's really being able to grow units. We also love share of wallet, and we love to sell additional business, et cetera, but that's -- that's important to us.

不，我的意思是，顯然，我們盡量避免對特定競爭對手發表任何評論，但我想說的是，特別是在 SBS 中，我們確實非常仔細地觀察這種貿易平衡。而且我認為 - 我每個季度都會談論它對我來說很重要，就像對我們而言，就我們業務的長期可持續性和持久性而言，最重要的事情之一就是市場份額，它真的能夠增長單位。我們也喜歡分享錢包，我們喜歡出售額外的業務等等，但這對我們很重要。

And at least the figures that we're seeing in terms of our large national competitors, our balance of trade remains positive and improved in the third quarter versus the second quarter. So that, that to me tells me that I think we're still, I think, in a good place competitively and that we're doing all the right things.

至少從我們看到的大型國家競爭對手的數據來看，我們的貿易平衡在第三季度與第二季度相比仍然是積極的並且有所改善。所以，這對我來說告訴我，我認為我們仍然，我認為，在競爭中處於一個好的位置，我們正在做所有正確的事情。

But having said that, it's a very competitive market. There's no question about that. And everyone, I think, has -- including some of our national competitors, have good products and good go-to-market strategies. And we are in the trenches every day competing in trench warfare with some of those competitors. We feel pretty good based on the data that we keep track of, that we are doing well in terms of balance of trade and also in terms of market share.

但話雖如此，這是一個競爭非常激烈的市場。毫無疑問。我認為，每個人——包括我們的一些國內競爭對手，都有好的產品和好的上市策略。我們每天都在戰壕中與其中一些競爭對手進行塹壕戰。根據我們跟踪的數據，我們感覺很好，我們在貿易平衡和市場份額方面都做得很好。

And Mark, you asked about Workforce Now bookings. So we shared color on some of this already. But in addition to the HRO business, which is doing really well and uses Workforce Now, and then the PEO business has also used Workforce Now, there's just the mid-market HCM solution. We didn't call it out, but that also did very well, double-digit growth.

馬克，您詢問了 Workforce Now 的預訂情況。所以我們已經分享了其中一些顏色。但除了做得很好並使用 Workforce Now 的 HRO 業務之外，PEO 業務也使用了 Workforce Now，只有中端市場的 HCM 解決方案。我們沒有說出來，但這也做得很好，兩位數的增長。

And I think the other last one you asked about was retirement services, that business, as you probably know, has some significant tailwinds because of regulatory changes that are going to get -- they're going to become potentially gale-force winds in terms of with the new, I think it's called Secure 2.0 or -- because I think the first one was the Secure Act. It looks like it's going to make its way through Congress with bipartisan support.

我認為你問的最後一個是退休服務，正如你可能知道的那樣，由於即將發生的監管變化，該業務有一些重大的順風 - 它們將成為潛在的強風對於新的，我認為它被稱為 Secure 2.0 或 - 因為我認為第一個是 Secure Act。看起來它將在兩黨的支持下通過國會。

And the first wave and the first version of that has already created some strong demand, in addition to what was already happening at the state level, where several states were requiring small businesses to mandatorily require to provide a retirement plan. So all those things are tailwinds for that business. And that would be one of those businesses that I would describe as doing incredibly well, but trying to keep its head above water to meet demand.

第一波和第一個版本已經產生了一些強勁的需求，除了在州一級已經發生的事情，幾個州要求小企業強制要求提供退休計劃。因此，所有這些事情都是該業務的順風。這將是我認為做得非常好的業務之一，但要努力保持領先地位以滿足需求。

It's a good problem to have. Trust me, like I've been around long enough to know, these are -- this is a good problem to have. But it's still a problem, and so we're busy adding resources and trying to be appropriately staffed in our RF business because it's definitely a growth engine.

這是一個很好的問題。相信我，就像我已經有足夠長的時間知道，這些是 - 這是一個很好的問題。但這仍然是一個問題，因此我們正忙於增加資源並試圖在我們的射頻業務中配備適當的人員，因為它絕對是一個增長引擎。

Can you size it, Carlos, in terms of -- I mean, we were aware of the coming gale-force winds. Just wondering how meaningful it's going to end up being to you on the whole.

卡洛斯，你能根據 - 我的意思是，我們知道即將到來的強風。只是想知道它最終對你有多大意義。

I would say, it is a general range, so you have some sense, it's smaller than the HRO business, for example. So you shouldn't assume that we have a $1 billion business, so you don't start getting too many images of grandeur. But it's a big business, call it, maybe somewhere around half-ish of that business. I don't know if Danny, before I get into trouble...

我想說，這是一個一般範圍，所以你有一定的意義，例如，它比 HRO 業務要小。所以你不應該假設我們有 10 億美元的業務，所以你不會開始獲得太多宏偉的形象。但這是一項大生意，稱它為，也許是該業務的一半左右。我不知道丹尼是不是在我遇到麻煩之前...

We'll just say hundreds of millions.

我們只會說數億。

Hundreds of millions of dollars, but growing, I think, also at one of the faster rates, I think, in terms of our businesses here, and both for bookings and for revenue.

數億美元，但我認為，就我們這裡的業務而言，無論是預訂還是收入，增長速度都是更快的速度之一。

Great. And then the follow-up is just, Carlos, you mentioned your non-GAAP description in terms of interest income on the float for next year. How much of that -- when we take a look at the Analyst Day discussion and the margin discussions, we typically look at the margin expansion ex float, how much of the float would you let flow through? I know you aren't giving us the '23 guidance. But just philosophically, how are you thinking about that?

偉大的。然後，卡洛斯，你提到了你在明年浮動利息收入方面的非公認會計原則描述。其中有多少——當我們查看分析師日討論和保證金討論時，我們通常會查看保證金擴張前的浮動，你會讓多少浮動通過？我知道你沒有給我們 23 年的指導。但就哲學而言，你是怎麼想的？

Well, first of all, philosophically, we don't hide anything. So as you know, there's a nice little schedule that we include that allows everyone to do the math. And so next quarter, you'll -- I'm sure you're going to do the math, and you'll ask us how come you are or aren't allowing x percent to flow through.

嗯，首先，從哲學上講，我們不隱藏任何東西。如您所知，我們包含了一個不錯的小時間表，讓每個人都可以進行數學計算。所以下個季度，你會 - 我相信你會做數學，你會問我們你為什麼會或不允許 x% 流過。

Because the math is actually fairly straightforward. We give you the balances that are maturing in that year because since we ladder, the only relevant issue is really what's maturing as well as new money invested in that year, which is what benefits from the higher rates since we hold to maturity. And you'll know what -- we'll give you a forecast of what our balance growth is going to be, and we'll also give you a forecast of what yields are going to be in the next year.

因為數學實際上相當簡單。我們為您提供那一年到期的餘額，因為自從我們階梯式增長以來，唯一相關的問題實際上是到期的資金以及當年投資的新資金，這是我們持有至到期以來較高利率帶來的好處。你會知道 - 我們會給你一個關於我們的餘額增長的預測，我們也會給你一個關於明年收益率的預測。

So you'll have all that math, and it will be very easy to do. And then what you'll have to do is quiz us on what the other side of the ledger in terms of what are the other factors in terms of that led to the final reported or, in that case, guided net income figures or EBIT figures. And I think one of the things that's changed from Investor Day is that there's no question that interest rates are way up, and client funds interest -- our forecast for client fusions would be much higher. Because you can do the math, just like we can.

因此，您將擁有所有這些數學知識，並且很容易做到。然後你要做的就是向我們詢問分類賬的另一面是什麼導致最終報告的其他因素，或者在這種情況下，指導淨收入數據或息稅前利潤數據.而且我認為與投資者日相比發生變化的一件事是，毫無疑問，利率正在上升，客戶資金的興趣——我們對客戶融合的預測會高得多。因為你可以做數學，就像我們一樣。

The other -- the variable that we want to take another quarter to make sure that we think through and that we finalize our plan before we communicate is that inflation is also way up in multiple ways, including on wages, as Don alluded to, right? So when we had Investor Day, we had not yet taken this action of an off-cycle merit increase or wage increase. We had not yet -- which we are now fully accrued for some of our incentive bonuses, which are driven primarily by performance but come in handy when you are competing for talent and trying to hold on to talent.

另一個——我們希望再花一個季度來確保我們在溝通之前考慮周全並最終確定我們的計劃的變量是，通貨膨脹也以多種方式上升，包括工資，正如唐所暗示的那樣，對?所以當我們有投資者日的時候，我們還沒有採取這種非週期加薪或加薪的行動。我們還沒有——我們現在已經為我們的一些激勵獎金完全累積，這些獎金主要由績效驅動，但在您爭奪人才並試圖留住人才時會派上用場。

And so those are all things that we have to kind of weigh now. And then the last factor being, I think Don talked about price increases, where does that finally land will also have an impact. So there's a few more moving parts than I think is typical for us. And I think it's just -- it's important for us to make sure we add it all up and wrap it all up. But one thing I can guarantee you is you will have transparency.

所以這些都是我們現在必須權衡的事情。最後一個因素是，我認為唐談到了價格上漲，最終土地也會在哪裡產生影響。所以有一些比我認為對我們來說典型的更多的活動部分。我認為這只是 - 對我們來說重要的是確保我們將它們全部加起來並全部包裝起來。但我可以向你保證的一件事是你會有透明度。

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 Mihir on for Jason. I wanted to ask about the competitive intensity and pricing actions. Maybe just talk a little bit about the pricing and promotional environment that you're seeing currently? Are we back at pre-pandemic levels and the pre-pandemic trends? Any changes worth calling out in the mix or aggressiveness of competitors and/or particular segments? Even I know you compete across a lot of different segments, so anything you can help us there?

這是傑森的米希爾。我想問一下競爭強度和定價行為。也許只是談談您目前看到的定價和促銷環境？我們是否回到了大流行前的水平和大流行前的趨勢？在競爭對手和/或特定細分市場的組合或侵略性方面有什麼值得一提的變化？即使我知道你在很多不同的領域競爭，所以你有什麼可以幫助我們的嗎？

Yes. So Carlos alluded to the competitive intensity. I think he called it trench warfare, and that's certainly the case. I think in terms of being back to pre-pandemic levels, with respect to pricing and promos, we're definitely seeing the competitive intensity that would be reflective of prior years, both as it relates to the trench warfare as well as the pricing element of it.

是的。所以卡洛斯提到了競爭的強度。我認為他稱之為塹壕戰，確實如此。我認為，就價格和促銷而言，回到大流行前的水平，我們肯定會看到反映前幾年的競爭強度，因為它與塹壕戰以及定價因素有關其中。

So I think it's fair to assume that it's still very competitive. I think that's part of the reason that, as we think about our price increases, whether it's on the new business side or on the existing client base, we're being incredibly thoughtful market by market, call it, country by country, segment by segment, product by product, to ensure that we continue to remain thoughtful in terms of the overall price value equation that does keep us remaining in a competitive pricing environment.

所以我認為假設它仍然非常具有競爭力是公平的。我認為這是部分原因，當我們考慮我們的價格上漲時，無論是在新業務方面還是在現有客戶群中，我們都在逐個市場、逐個國家、逐個細分市場地考慮周到。逐個產品細分市場，以確保我們在整體價格價值等式方面繼續保持深思熟慮，這確實使我們保持在具有競爭力的定價環境中。

So I would say that the intensity has not waned. It continues and very formidable competitors out there. And we're confident that we continue to win in the market and that we continue to take a balanced approach on the price value equation.

所以我會說強度並沒有減弱。它繼續存在，並且是非常強大的競爭對手。我們有信心繼續在市場上獲勝，並且我們將繼續在價格價值等式上採取平衡的方法。

And then just maybe turning to the growth in average worksite employees. Can you talk about what is driving the strength you're seeing there? Is it in particular verticals? Is it broad-based? Any additional color you can provide there?

然後可能會轉向平均工地員工的增長。你能談談是什麼推動了你在那裡看到的力量嗎？是不是特別垂直？基礎廣泛嗎？您可以在那裡提供任何其他顏色嗎？

Well, I think the -- probably the biggest picture -- the answer is no, there's no specific verticals or we're too big and too diversified to really -- it's not geographic or verticals or all that. It's basically very strong bookings with very good retention and also growth of the client base.

好吧，我認為 - 可能是最大的圖景 - 答案是否定的，沒有特定的垂直領域，或者我們太大而且太多樣化而無法真正做到——這不是地理或垂直領域或所有這些。它基本上是非常強大的預訂，具有非常好的保留率以及客戶群的增長。

This pays per control that we talk about in Employer Services, you have the same phenomenon in the PEO, where the clients themselves are recovering, right, and hiring at a faster rate than they would have been because they had either shrunk or hadn't hired during the pandemic. And so that is a tailwind also for the PEO. But the biggest factors are sales, minus losses, and then what's happening with the base, which is obviously strong.

這按我們在雇主服務中討論的控制支付，您在 PEO 中也有同樣的現象，客戶自己正在恢復，對，並且招聘速度比他們本來的速度要快，因為他們要么縮小了要么沒有疫情期間受僱。因此，這對 PEO 來說也是順風。但最大的因素是銷售額，減去虧損，然後是基礎情況，這顯然是強大的。

We have time for one last question, and it comes from the line of James Faucette with Morgan Stanley.

我們有時間回答最後一個問題，它來自摩根士丹利的 James Faucette。

Great. I wanted to follow up on a question, and it has to do with the competitive intensity. But I guess, previously, you talked about you had some expectation for a slight retention deterioration. But that isn't playing out, and in fact, it seems like your outlook is improving. You mentioned mid-market and international were main contributors, but are you seeing anything also in terms of business closures in the downmarket that's performing better? Or any other contributors that are helping out there?

偉大的。我想跟進一個問題，這與競爭強度有關。但我想，之前，你談到你對保留率略有下降有一些期望。但這並沒有發揮作用，事實上，您的前景似乎正在改善。您提到中型市場和國際市場是主要貢獻者，但您是否也看到了在低端市場關閉業務方面表現更好的東西？或者任何其他正在幫助的貢獻者？

I think the best way to describe it -- that, by the way, was all accurate, like we're really happy with international, but also, in particular, the mid-market. I think we kind of underestimated -- as usual, there are multiple moving parts. So you had the pandemic at work. And so we were looking at kind of our historical trends and thought there will be some normalization within the mid-market.

我認為描述它的最佳方式 - 順便說一句，這一切都是準確的，就像我們對國際市場非常滿意，尤其是中端市場。我認為我們有點低估了——像往常一樣，有多個活動部分。所以你在工作中遇到了流行病。因此，我們正在研究我們的歷史趨勢，並認為中端市場會出現一些正常化。

But we also had forgotten that right before the pandemic -- not right before, but 12 to 18 months before the pandemic, we completed our migrations onto 1 single platform, which is our modern Workforce Now platform, huge process improvement initiatives that were led by John Ayala and the team there that really improved the underlying strength of that business, right? So then you get into the pandemic and you get that noise.

但我們也忘記了，在大流行之前——不是在大流行之前，而是在大流行之前的 12 到 18 個月，我們完成了遷移到一個單一平台上，這是我們現代的 Workforce Now 平台，由John Ayala 和那裡的團隊真正提高了該業務的潛在實力，對嗎？所以然後你進入大流行，你會得到那種噪音。

Now you come out of the pandemic, and there's no scientific way to pull all that apart, but it does feel like our mid-market business has a new floor, if you will -- or not floor, it's not the right way to describe it, but a new level of retention that's higher than it was before. That's at least, right now, the way it looks in our hope going forward. So that's really good news.

現在您已經擺脫了大流行，沒有科學的方法可以將這一切分開，但確實感覺我們的中端市場業務有了一個新的底線，如果您願意的話——或者沒有底線，這不是描述的正確方式它，但是比以前更高的新的保留水平。至少，現在，它在我們的希望中看起來是這樣的。所以這真是個好消息。

The other item on the out of business that you're mentioning, which is really more of a downmarket question, we, again, are big subscribers to the school of common sense, and it's playing out kind of the way we expected. Because if you look at the reported level of bankruptcies from government figures, they're pretty flat. But that really is not the way the small business market works that everyone declares bankruptcy. Like some people get into business, and they stock their business, and they never declare bankruptcy. So that is a good proxy, and it's one indication, but it's not the only one.

你提到的關於停業的另一個項目，這實際上更像是一個低端市場的問題，我們再次是常識學派的大訂閱者，它正在以我們預期的方式發揮作用。因為如果你看看政府數據報告的破產水平，它們是相當平的。但這確實不是每個人都宣布破產的小企業市場的運作方式。就像有些人開始做生意，他們把生意存起來，他們從不宣布破產。所以這是一個很好的代理，它是一個跡象，但它不是唯一的。

And so we have seen some normalization in that downmarket business because of what we call noncontrollable losses, right, which would include out-of-business bankruptcies, all of the above. It's a big enough factor in that segment that it's impossible to believe that it wouldn't normalize, which is why we planned the way we did. The good news is that it hasn't normalized as fast as we thought.

因此，由於我們所說的不可控制的損失，我們已經看到了低端市場業務的一些正常化，對，這將包括停業破產，以上所有。在該細分市場中，這是一個足夠大的因素，以至於無法相信它不會正常化，這就是我們計劃採取這種方式的原因。好消息是它並沒有像我們想像的那麼快恢復正常。

And the other part of our business, the controllable losses have performed better than we expected. And so net-net, we are in better shape than we thought. But just because you have the second best retention you've ever had doesn't mean that it isn't down from the previous year. And so I just wanted to be crystal clear on that because others may have a different perspective on that, which would defy, I think, Finance 101 theories and so forth.

而我們業務的另一部分，可控虧損的表現好於我們的預期。因此，net-net，我們的狀態比我們想像的要好。但是，僅僅因為您擁有有史以來第二好的留存率，並不意味著它沒有比上一年下降。所以我只是想明確這一點，因為其他人可能對此有不同的看法，我認為這會違背金融 101 理論等等。

Because the number of the -- the percentage of losses related to the economy and so forth are just significant in the downmarket. And so when you have this unbelievable tailwind, when you think about the amount of stimulus that was put in with PPP loans and so forth and stimulus checks. Remember, some of these small businesses are just like consumers. They're 1-person companies or 5-person companies. And when they get a stimulus check, that's like a stimulus check going to their company.

因為與經濟等相關的損失百分比的數量在低端市場中非常重要。因此，當您遇到這種令人難以置信的順風時，當您考慮通過 PPP 貸款等和刺激檢查所投入的刺激數量時。請記住，其中一些小企業就像消費者一樣。他們是 1 人公司或 5 人公司。當他們獲得刺激檢查時，這就像對他們公司的刺激檢查。

That stuff is all coming out of the system and interest rates are going up, it will normalize, unfortunately. But you see the outcome, net-net for us, which is still incredibly gratifying and way above what we would have expected.

那些東西都從系統中出來了，利率正在上升，不幸的是，它會正常化。但是你看到了結果，對我們來說是網絡，這仍然令人難以置信的令人滿意，並且遠遠超出了我們的預期。

Just to clarify that. That second best comment, James, was with respect to the downmarket only. Overall, it was an all-time high.

只是為了澄清這一點。詹姆斯的第二個最佳評論僅針對低端市場。總體而言，這是歷史最高水平。

Sorry. Yes, I mean -- thanks, that's right.

對不起。是的，我的意思是——謝謝，沒錯。

Yes. And then -- so does that -- so should we interpret it then to mean like as far as the -- that we should still expect some deterioration, particularly as that downmarket normalizes? Because that hasn't happened maybe as fast as you thought, but the drivers are still there, whereas on the mid-market, you're feeling better that your new platform can actually help prevent or improve that retention versus what you thought. So you kind of have 1 thing that's permanent and 1 that's still to happen, and net-net, there may be still some deterioration, but not as much as you thought. Is that a fair assessment?

是的。然後 - 那麼 - 那麼我們是否應該將其解釋為 - 我們仍然應該預期會出現一些惡化，特別是在低迷市場正常化的情況下？因為這可能並沒有你想像的那麼快，但驅動因素仍然存在，而在中端市場上，你感覺更好的是，你的新平台實際上可以幫助防止或提高留存率，而不是你想像的那樣。所以你有 1 件事是永久的，還有 1 件事仍在發生，而且 net-net，可能還會有一些惡化，但沒有你想像的那麼嚴重。這是一個公平的評價嗎？

I think that is a fair assessment that you should stand by for further details next quarter, for next calendar -- next fiscal year because I think we gave you enough color. We just -- what you just described is exactly what we expect to happen for the fourth quarter, and you see the outcome in terms of our overall guidance for retention. But I think what's more important for you guys is, I hope it's not just next quarter, but the next year, and I think we'll have another several months of information by then.

我認為這是一個公平的評估，你應該等待下個季度的更多細節，下一個日曆 - 下一個財政年度，因為我認為我們給了你足夠的色彩。我們只是 - 您剛才描述的正是我們期望在第四季度發生的事情，您會根據我們對保留的總體指導看到結果。但我認為對你們來說更重要的是，我希望不僅僅是下個季度，而是明年，我認為到那時我們還會有幾個月的信息。

And we have some other businesses. I talked about the -- our HRO business, our FBS, I mean, there's other businesses that are frankly outperforming outside of kind of the economic factors and the mid-market business that are outperforming. So it's really not appropriate yet to jump to any conclusions, but I think your general thesis is exactly correct.

我們還有其他一些業務。我談到了——我們的 HRO 業務，我們的 FBS，我的意思是，坦率地說，除了經濟因素和中端市場業務之外，還有其他業務表現出色。所以現在還真的不適合下任何結論，但我認為你的一般論點是完全正確的。

This concludes our question-and-answer portion for today. I am pleased to hand the program over to Carlos Rodriguez for closing remarks.

今天的問答部分到此結束。我很高興將節目交給 Carlos Rodriguez 做閉幕詞。

Well, thanks for all of you for joining us today. I hate to end on a down note here, but I think it's important for us to acknowledge what's happening in the Ukraine and express our sympathies for the folks that are in the midst of that conflict. We obviously, like everyone else, would like to see the violence end. We have very small exposure from a revenue and business standpoint in Russia and Ukraine, but we do have quite a number of associates and a decent-sized business in Eastern Europe. And so we would love to see this violence end and certainly not to spread.

好吧，感謝大家今天加入我們。我不想在這里以低調結束，但我認為承認烏克蘭正在發生的事情並對處於衝突中的人們表示同情對我們來說很重要。顯然，我們和其他所有人一樣，希望看到暴力結束。從收入和業務的角度來看，我們在俄羅斯和烏克蘭的風險敞口非常小，但我們在東歐確實擁有相當多的員工和規模可觀的業務。因此，我們希望看到這種暴力結束，當然不會蔓延。

We've been doing our part, along with some of our colleagues in other companies, in the humanitarian efforts to provide relief to the people in Ukraine. But what's really been most gratifying to me is not just what we've been able to do through our foundation and through ADP, but what our associates have done globally, kind of reaching into their own pockets, both to help their fellow global citizens.

我們一直在與其他公司的一些同事一起，在人道主義努力中為烏克蘭人民提供救濟。但真正讓我感到最欣慰的不僅是我們通過我們的基金會和 ADP 所做的事情，而且是我們的員工在全球範圍內所做的事情，有點自掏腰包，以幫助他們的全球公民同胞。

We increased our match -- our matching contribution amounts for associates who wanted to provide to various relief agencies. And we had the largest, I think, reactions we've ever had to any global crisis. And it's obvious why because when you see the pictures of what's going on, and it's truly horrifying. And I mean, for me, personally, to see people leaving everything behind and children and families having to flee is personally very painful.

我們增加了我們的配套——我們為想要向各種救濟機構提供援助的員工提供的配套捐款金額。我認為，我們對任何全球危機都做出了最大的反應。原因很明顯，因為當你看到正在發生的事情的圖片時，這真的很可怕。我的意思是，就我個人而言，看到人們把一切都拋在腦後，孩子和家庭不得不逃離，這對我個人來說是非常痛苦的。

So our hearts go out to those folks. And we pray that all of the leaders involved can come to some sort of resolution and end the violence. But with that, I will thank you once again for participating with us today, and we look forward to giving you all the information you're looking for, for fiscal year '23 on the next earnings call.

所以我們的心與那些人同在。我們祈禱所有相關領導人能夠達成某種解決方案並結束暴力。但有了這個，我將再次感謝您今天與我們一起參與，我們期待在下一次財報電話會議上為您提供您正在尋找的所有信息，用於 23 財年。

Thank you very much.

非常感謝。

This concludes the program. You may now disconnect. Everyone, have a great day.

程序到此結束。您現在可以斷開連接。大家，有一個美好的一天。