Asure Software Inc (ASUR) 2022 Q3 法說會逐字稿

Good afternoon, and welcome to Asure's Third Quarter 2022 Earnings Conference Call. Joining us for today's call are Asure's Chairman and CEO, Pat Goepel, Asure's Chief Financial Officer, John Pence and Head of Investor Relations, Randal Rudniski. Following their prepared remarks, there will be a question-and-answer session for the analysts and investors. I would now like to turn the call over to Randal Rudniski for introductory remarks. Please go ahead.

下午好，歡迎來到 Asure 的 2022 年第三季度收益電話會議。 Asure 的董事長兼首席執行官 Pat Goepel、Asure 的首席財務官 John Pence 和投資者關係主管 Randal Rudniski 與我們一起參加今天的電話會議。在他們準備好的發言之後，將有分析師和投資者的問答環節。我現在想把電話轉給 Randal Rudniski 做介紹性發言。請繼續。

Thank you, operator. Good afternoon, everyone, and thank you for joining us for Asure's Third Quarter 2022 Earnings Call. Following the close of markets, we released our financial results. The earnings release is available on the SEC's website and on our Investor Relations website at investor.asuresoftware.com, where you can also find the investor presentation. During our call today, we will reference non-GAAP financial measures, which we believe to be useful to investors, and exclude the impact of certain items. A description and timing of these items, along with the reconciliation of non-GAAP measures to their most comparable GAAP measures can be found in our earnings release. Today's call will also contain forward-looking statements that refer to future events and as such, involve some risks. We use words such as expects, believes, and may to indicate forward-looking statements, and 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. Finally, I'd like to remind everyone that this call is being recorded, and it will be made available for replay via a link available on the Investor Relations section of our website.

謝謝你，運營商。大家下午好，感謝您加入我們的 Asure 2022 年第三季度財報電話會議。市場收盤後，我們發布了財務業績。收益發布可在 SEC 網站和我們的投資者關係網站 investor.asuresoftware.com 上獲取，您還可以在該網站上找到投資者介紹。在我們今天的電話會議中，我們將參考我們認為對投資者有用的非 GAAP 財務指標，並排除某些項目的影響。這些項目的描述和時間安排，以及非 GAAP 措施與其最具可比性的 GAAP 措施的調節，可以在我們的收益發布中找到。今天的電話會議還將包含涉及未來事件的前瞻性陳述，因此涉及一些風險。我們使用預期、相信和可能等詞語來表示前瞻性陳述，我們鼓勵您查看我們向美國證券交易委員會提交的文件，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信息。最後，我想提醒大家，這個電話正在錄音中，可以通過我們網站投資者關係部分的鏈接進行重播。

With that, I would now like to turn the call over to Pat Goepel, Chairman and CEO. Pat?

有了這個，我現在想把電話轉給董事長兼首席執行官 Pat Goepel。拍？

Thank you, Randall, and welcome, everyone, to Asure's third-quarter earnings call. I appreciate your interest, whether you're an employee, partner, investor, analyst, or other interested party. I will begin today's presentation with an update on our business highlights and strategy, and then I'll turn it over to our CFO, John Pence, for a more detailed review of our financial results and outlook for the remainder of 2022 and 2023 fiscal years. We will then conclude the session with time to answer your questions. We had a real strong performance in the third quarter with results that showed improving levels of organic revenue growth as the many initiatives we have undertaken are beginning to see real progress. We grew our third-quarter revenues by 22% relative to prior year and adjusted EBITDA by 71% with adjusted EBITDA margins rising by 280 basis points to 9.6%. Organic revenue growth in the quarter was 4%.

謝謝蘭德爾，歡迎大家參加 Asure 第三季度財報電話會議。感謝您的關注，無論您是員工、合夥人、投資者、分析師還是其他相關方。我將以我們的業務亮點和戰略的最新情況開始今天的演講，然後我將把它轉交給我們的首席財務官 John Pence，以更詳細地審查我們 2022 年和 2023 財年剩餘時間的財務業績和展望.然後我們將在會議結束時回答您的問題。我們在第三季度的表現非常強勁，結果顯示有機收入增長水平有所提高，因為我們採取的許多舉措開始看到真正的進展。與去年同期相比，我們第三季度的收入增長了 22%，調整後的 EBITDA 增長了 71%，調整後的 EBITDA 利潤率上升了 280 個基點，達到 9.6%。本季度的有機收入增長率為 4%。

And from our revised higher revenue guidance, you can see we expect organic revenue growth to come in at roughly 10% annually in the fourth quarter. Momentum is building nicely in the business, giving us confidence in our fourth quarter and 2023 guidance. Our new sales bookings have been strong all year and have accelerated as the year progressed. In the third quarter, new sales bookings grew by 91% relative to the prior year, including 200% growth in recurring new sales bookings with strength across many parts of the business, including HR compliance and tax solutions. Demand for our solutions remain strong in the current economic environment and our pipeline and backlog are very healthy. We anticipate finishing 2022 with strong momentum that will carry through 2023 with continued double-digit organic revenue growth, driving strong adjusted EBITDA margin gains. Margin improvement in 2023 is expected to be driven by revenue growth as well as efficiency improvements that will enable us to convert a high proportion of revenues to adjusted EBITDA.

從我們修改後的更高收入指引中，您可以看到我們預計第四季度的有機收入增長將以每年約 10% 的速度增長。業務發展勢頭良好，使我們對第四季度和 2023 年的指導充滿信心。我們的新銷售預訂全年都很強勁，並且隨著時間的推移而加速。第三季度，新銷售訂單較上年同期增長 91%，其中經常性新銷售訂單增長 200%，業務的許多部門都表現強勁，包括人力資源合規和稅務解決方案。在當前的經濟環境下，對我們解決方案的需求依然強勁，我們的管道和積壓訂單非常健康。我們預計 2022 年將以強勁的勢頭結束，2023 年將繼續保持兩位數的有機收入增長，推動調整後的 EBITDA 利潤率強勁增長。預計 2023 年利潤率的改善將受到收入增長和效率提高的推動，這將使我們能夠將很大一部分收入轉化為調整後的 EBITDA。

In 2022, we have focused our sales activities on bundled sales as well as introducing new products that we expect will add important revenue streams. These include the introduction of integration marketplace, enhancements to our tax platform, as well as our enhanced HR-compliant suite of solutions. I'll talk more about these initiatives in a moment, but we believe our efforts and our focus is really paying off. In the payroll segment, we recorded a 49% increase in new payroll logos added in the third quarter relative to prior year, an increase in average payroll booking size in 2022. And HR compliance demand has been very robust, driving 30%-plus growth in revenues relative to the prior year. There is a very good attachment and revenue enhancement on bundling HR compliance with payroll. We're also effectively utilizing earned [retection] tax credit to cross-sell payroll and other solutions. We are just scratching the surface in our bundling efforts and can generate more recurring revenue from our existing client base with HR compliance and tax solutions leading the way.

2022 年，我們將銷售活動的重點放在捆綁銷售上，並推出我們預計會增加重要收入來源的新產品。其中包括引入集成市場、增強我們的稅務平台，以及我們增強的符合 HR 標準的解決方案套件。我稍後會更多地談論這些舉措，但我們相信我們的努力和我們的關注會真正得到回報。在薪資領域，我們記錄了第三季度新增的薪資標識與去年同期相比增長了 49%，2022 年平均薪資預訂規模有所增加。人力資源合規需求一直非常強勁，推動了 30% 以上的增長與上一年相比的收入。將 HR 合規性與工資單捆綁在一起有很好的附件和收入增加。我們還有效地利用賺取的 [retection] 稅收抵免來交叉銷售工資單和其他解決方案。我們只是在捆綁工作中觸及表面，並且可以通過領先的人力資源合規性和稅務解決方案從我們現有的客戶群中產生更多的經常性收入。

New solutions such as our initiative to leverage our data with integration marketplace are also expected to be important contributors to our sales growth. We believe integration marketplace will be an increasing proportion of our revenue going forward, and it could represent 30% to 40% of Asure's overall revenues over the next couple of years. Integration marketplace provides Asure's clients with integrations to complementary human capital management services and payroll and tax, time and attendance, retirement and workmen's compensation. Its launch was the culmination of efforts made in 2021 and 2022 to upgrade our technology and enhances automation, reduces cost of ownership, and allows us to capitalize on partnerships that will drive high-margin revenue streams. In October, we announced a new integration with Equifax to provide clients and their employees with quicker and more secure employment and income verification. This initiative will reduce client costs through automation and enable them to focus on their core businesses, which is a key part of our value proposition.

新的解決方案，例如我們利用集成市場的數據的舉措，也有望成為我們銷售增長的重要貢獻者。我們相信集成市場在未來收入中所佔的比例將越來越大，未來幾年它可能佔 Asure 總收入的 30% 至 40%。集成市場為 Asure 的客戶提供集成，以補充人力資本管理服務以及工資和稅收、時間和出勤、退休和工人補償。它的推出是我們在 2021 年和 2022 年為升級我們的技術和增強自動化、降低擁有成本並使我們能夠利用能夠推動高利潤收入流的合作夥伴關係所做努力的結晶。 10 月，我們宣布與 Equifax 進行新的整合，為客戶及其員工提供更快、更安全的就業和收入驗證。該計劃將通過自動化降低客戶成本，並使他們能夠專注於核心業務，這是我們價值主張的關鍵部分。

In addition to Equifax, we are actively working to expand our integrations to earn wage access, benefit reconciliation, retirement solutions, and tax preparation. We're very excited about the future of integration marketplace and the benefits that can bring to clients while driving revenue growth for Asure. Another key initiative we've been working on is making enhancements to our tax platform to capitalize on our unique position in the marketplace. Efforts in this area include consolidating to a single tax engine, introducing a new tax portal, and enhancing technology to facilitate integrations. This will allow us to offer a centralized human capital management ecosystem for clients and open up new market segments for our leading tax platform. These efforts are paying off and enabling us to deliver new solutions for clients. We recently introduced 2 new solutions that we're excited about. In October, we launched a new technology that automates back-office processes for tax professionals, enabling them to efficiently prepare amended tax returns for small businesses claiming ERTC stimulus. And in August, we announced an agreement to be a preferred provider, payroll tax filing, software, and services for PrismHR, which is a leading provider of HR solutions, primarily in the PEO market. We believe these initiatives highlight the increasing recognition by clients of the strength of our tax platform and demonstrate our ability to tap into new market segments in an efficient and flexible manner. We see other opportunities that will leverage our tax platform and look forward to discussing those in future quarters.

除了 Equifax 之外，我們還積極致力於擴展我們的集成，以賺取工資、福利對賬、退休解決方案和稅務準備。我們對集成市場的未來以及在推動 Asure 收入增長的同時可以為客戶帶來的好處感到非常興奮。我們一直致力於的另一項重要舉措是改進我們的稅務平台，以利用我們在市場中的獨特地位。在這方面的努力包括整合到一個單一的稅務引擎、引入一個新的稅務門戶網站，以及增強技術以促進整合。這將使我們能夠為客戶提供集中的人力資本管理生態系統，並為我們領先的稅務平台開闢新的細分市場。這些努力正在取得回報，使我們能夠為客戶提供新的解決方案。我們最近推出了 2 個令我們興奮的新解決方案。 10 月，我們推出了一項新技術，可為稅務專業人士實現後台流程自動化，使他們能夠高效地為申請 ERTC 刺激計劃的小型企業準備修正後的納稅申報表。 8 月，我們宣布了一項協議，成為 PrismHR 的首選供應商、工資稅申報、軟件和服務，PrismHR 是 HR 解決方案的領先供應商，主要在 PEO 市場。我們相信這些舉措凸顯了客戶對我們稅務平台實力的日益認可，並展示了我們以高效靈活的方式進入新細分市場的能力。我們看到了其他可以利用我們的稅務平台的機會，並期待在未來幾個季度討論這些機會。

I want to turn now to some of the enterprise efficiency initiatives we're working on. Our initiatives in this area are designed to enhance standardization and centralization of our operations while delivering exceptional client service. Our work plan is well underway and is expected to be implemented through 2023, delivering approximately $5 million in annual savings once it's fully complete. Project streams for our centralization efforts include development of a human capital management platform to deliver state-of-the-art solutions and accelerate product development, driving robotic process automation through the organization to enhance efficiency, process standardization to give us greater flexibility and reduce cost, and upgrades or communications infrastructure. These efforts are already producing efficiency gains across the business, enabling us to convert a higher proportion of revenue growth to adjusted EBITDA. These consolidated consolidation efforts also have benefits to our client fund operations, providing us with increased leverage as we see increases in the Fed funds rate. Our efficiency initiatives also support our acquisition strategy and enable us to expedite synergies and timelines for integrating future assets.

我現在想談談我們正在開展的一些企業效率計劃。我們在這一領域的舉措旨在加強我們運營的標準化和集中化，同時提供卓越的客戶服務。我們的工作計劃正在順利進行，預計將在 2023 年之前實施，一旦完全完成，每年可節省約 500 萬美元。我們集中化工作的項目流包括開發人力資本管理平台以提供最先進的解決方案並加速產品開發，通過組織推動機器人流程自動化以提高效率，流程標準化為我們提供更大的靈活性並降低成本，以及升級或通信基礎設施。這些努力已經在整個企業中產生了效率提升，使我們能夠將更高比例的收入增長轉化為調整後的 EBITDA。這些合併整合工作也有利於我們的客戶基金運營，在我們看到聯邦基金利率上升時為我們提供了更高的槓桿作用。我們的效率舉措還支持我們的收購戰略，使我們能夠加快整合未來資產的協同效應和時間表。

Turning to acquisitions. You may recall, last October, we had 2 reseller businesses that we acquired last year, and they have delivered to our expectations. Their integrations are now complete, on time, and on budget. As those businesses were acquired in September 2021, they will not affect our year-over-year comparisons beginning in Q4, which essentially means that all activity will be organic. For 2023, we'll continue to evaluate acquisition opportunities with assets that fit within our M&A model and that drive value creation for our shareholders. None are imminent right now and no additional revenue has been contemplated in our forward-looking guidance. To wrap up, momentum is really building strongly in the business. We can see the impact on that of third quarter's new sales bookings of 91% year-over-year. Improvements in investment revenue reflecting higher client balances and rates as well as increased sales backlog and increased retention across several product lines. Our performance to date gives us confidence in our outlook for the remainder of 2022 and our preliminary guidance for 2023.

轉向收購。您可能還記得，去年 10 月，我們收購了 2 家經銷商業務，他們的表現達到了我們的預期。他們的集成現已按時、按預算完成。由於這些業務是在 2021 年 9 月收購的，它們不會影響我們從第四季度開始的同比比較，這基本上意味著所有活動都將是有機的。到 2023 年，我們將繼續評估適合我們併購模型並為股東創造價值的資產的收購機會。現在還沒有什麼是迫在眉睫的，我們的前瞻性指導中也沒有考慮額外的收入。總而言之，業務的發展勢頭確實強勁。我們可以看到第三季度新銷售預訂量同比增長 91% 的影響。投資收入的改善反映了更高的客戶餘額和利率以及銷售積壓增加和多個產品線的保留率增加。我們迄今為止的表現讓我們對 2022 年剩餘時間的展望和 2023 年的初步指導充滿信心。

For Q4 in 2023, we expect double-digit organic revenue growth, driven by the initiatives we have discussed. We also believe we will deliver significantly expanded adjusted EBITDA margins in 2023 that reflect the impact of our efficiency efforts in a growing portfolio of revenue streams. 2022 has been a very active year for Asure with strong emphasis on building strength in our business in sales, product, operations. We've introduced several new solutions such as integrated marketplace, and we expect will be important contributors to our performance going forward. We also made significant enhancements to our HR compliance and our tax solutions businesses, which are being well received by the market. Our commitment is to provide leading-edge solutions that drive value to our clients and to be the most trusted partner for small and mid-sized businesses. Our innovative solutions help guide our customers through this dynamic environment so they can focus on their core business.

對於 2023 年第四季度，我們預計在我們討論的舉措的推動下，有機收入將實現兩位數增長。我們還相信，我們將在 2023 年實現顯著擴大的調整後 EBITDA 利潤率，這反映了我們在不斷增長的收入流組合中提高效率的影響。 2022 年對 Asure 來說是非常活躍的一年，我們非常重視在銷售、產品和運營方面建立實力。我們已經推出了幾個新的解決方案，例如集成市場，我們預計這將對我們未來的業績做出重要貢獻。我們還對我們的人力資源合規性和我們的稅務解決方案業務進行了重大改進，這些業務受到了市場的歡迎。我們的承諾是提供領先的解決方案，為我們的客戶創造價值，並成為中小型企業最值得信賴的合作夥伴。我們的創新解決方案有助於引導我們的客戶度過這個充滿活力的環境，使他們能夠專注於自己的核心業務。

Now I'd like to hand off to John to discuss our financial results in more detail. John?

現在我想請約翰更詳細地討論我們的財務結果。約翰？

Thanks, Pat. As Randal mentioned at the beginning of this call, several of the financial figures discussed today are given on a non-GAAP basis. You will find a description of these GAAP to non-GAAP reconciliations in the earnings release that was made available earlier today. The reconciliations themselves are also included on our most recent investor presentation posted in the Investor Relations section of our website at investor.asuresoftware.com. So with that, now on to the third quarter results. We are pleased with our financial performance in the third quarter. Here are some of the highlights. Revenues reached $21.9 million in the third quarter, rising by 22% relative to prior year and 8% relative to the prior quarter. Acquisitions generated the majority of the year-on-year growth but did not affect the sequential quarter-over-quarter comparisons. Both recurring and nonrecurring revenues had strong gains.

謝謝，帕特。正如 Randal 在本次電話會議開始時提到的，今天討論的一些財務數據是在非 GAAP 基礎上給出的。您將在今天早些時候發布的收益報告中找到對這些 GAAP 與非 GAAP 調節的描述。調節本身也包含在我們最新的投資者介紹中，發佈在我們網站 investor.asuresoftware.com 的投資者關係部分。因此，現在來看第三季度的結果。我們對第三季度的財務表現感到滿意。這兒是一些精彩片段。第三季度收入達到 2190 萬美元，同比增長 22%，環比增長 8%。收購產生了大部分同比增長，但並未影響連續的季度環比比較。經常性和非經常性收入都有強勁增長。

As Pat discussed, we had a good bundling success with clients as we saw strong demand for HR compliance and tax processing solutions as well as revenues from new product offerings such as the integration marketplace. ERTC is increasingly becoming a bundled sale that includes products such as HR compliance and payroll processing. Overall revenues grew by 4% organically relative to prior year. Adjusted EBITDA rose by 71% relative to prior year to $2.1 million, driven by revenue growth, operating, efficiencies, and overall continued strong focus on cost. Our adjusted EBITDA margins reached 9.6% in the quarter, rising by 280 basis points relative to last year. We believe we have reached the point in the business where scale and technological improvements will enable a higher proportion of the revenue growth to flow to adjusted EBITDA margins. We ended the quarter with cash and cash equivalents of $10.9 million. We also had $34.4 million of debt, which is comprised of $30 million draw under our senior credit facility, with the remainder made up of seller notes from acquisitions. In the quarter, we paid down $1.7 million of seller notes. We also still have a $7 million tax receivable, which we hope to collect in the next few quarters.

正如 Pat 所討論的那樣，我們在與客戶的捆綁中取得了良好的成功，因為我們看到了對 HR 合規性和稅務處理解決方案的強烈需求，以及來自集成市場等新產品的收入。 ERTC 越來越成為一種捆綁銷售，其中包括 HR 合規性和薪資處理等產品。與上一年相比，總收入有機增長 4%。調整後的 EBITDA 較上年增長 71% 至 210 萬美元，這主要得益於收入增長、運營、效率以及總體上對成本的持續強烈關注。我們調整後的 EBITDA 利潤率在本季度達到 9.6%，比去年上升 280 個基點。我們相信我們已經達到業務規模和技術改進將使更高比例的收入增長流向調整後的 EBITDA 利潤率的地步。本季度末，我們的現金和現金等價物為 1,090 萬美元。我們還有 3,440 萬美元的債務，其中包括根據我們的高級信貸額度提取的 3,000 萬美元，其餘部分由收購的賣方票據組成。本季度，我們支付了 170 萬美元的賣方票據。我們還有 700 萬美元的應收稅款，我們希望在接下來的幾個季度內收回。

Turning now to guidance for the remainder of 2022 and our preliminary guidance for 2023. This guidance reflects our expectation for double-digit organic growth in revenues and adjusted EBITDA, which is bolstered by recent increases in interest rates. This guidance is offered in the backdrop of some continued economic uncertainty and a dynamic labor market. Before I go into the guidance discussion, I want to mention that with the third quarter results, we made some changes to the presentation of our non-GAAP disclosures. Firstly, we relabeled what we previously called non-GAAP EBITDA and now call it adjusted EBITDA, consistent with common industry practices. There have been no changes to the methodology of the calculating adjusted EBITDA is simply a name change. Secondly, we are providing increased disclosure related to one-time expenses by breaking them out into discrete categories. Lastly, we are no longer included in our calculation of non-GAAP net income and non-GAAP EPS and adjustment for taxes at 0% rate due to conform to more common industry practices.

現在轉向 2022 年剩餘時間的指引和我們對 2023 年的初步指引。該指引反映了我們對收入和調整後 EBITDA 實現兩位數有機增長的預期，這受到近期利率上升的支持。該指南是在經濟持續存在不確定性和勞動力市場充滿活力的背景下提供的。在我進入指導討論之前，我想提一下，在第三季度的結果中，我們對非 GAAP 披露的列報方式進行了一些更改。首先，我們重新標記了之前稱為非 GAAP EBITDA 的內容，現在將其稱為調整後的 EBITDA，以符合常見的行業慣例。計算調整後 EBITDA 的方法沒有變化，只是名稱發生了變化。其次，我們通過將一次性費用分成不同的類別來增加與一次性費用相關的披露。最後，由於符合更常見的行業慣例，我們不再包括在我們的非 GAAP 淨收入和非 GAAP 每股收益的計算中，並以 0% 的稅率進行稅收調整。

Now back to guidance for 2022. We are raising our fourth quarter revenue guidance to a range of $23.5 million to $24 million for the full year guidance to a range of $90 million to $90.5 million. For the fourth quarter, we anticipate revenue growth of between 11% and 14%, which is virtually all organic. We have seen growing momentum in the business throughout 2022, as we have introduced technological enhancements, introducing new products, and improved sales execution. We also anticipate higher levels of interest revenues as a result of both our efforts to consolidate our banking footprint and rising interest rates. We anticipate this will contribute positively to our fourth-quarter performance and will give us strong momentum heading into 2023. Our adjusted EBITDA guidance range implies fourth-quarter adjusted EBITDA margins will be approximately 14%. While full quarter 2022 margins will be approximately 12%, both showing positive gains relative to prior year. For 2023, we are introducing preliminary guidance for revenues to reach $98 million to $102 million and for adjusted EBITDA margins to rise to a range of 14% to 16%. The midpoint of our 2023 revenue guidance calls for approximately 10% growth in revenues, all of which would be organic.

現在回到 2022 年的指導。我們將第四季度的收入指導提高到 2350 萬美元到 2400 萬美元，全年指導提高到 9000 萬到 9050 萬美元。對於第四季度，我們預計收入增長在 11% 到 14% 之間，這幾乎都是有機的。隨著我們引入技術改進、推出新產品和改進銷售執行力，我們在整個 2022 年看到了業務的增長勢頭。我們還預計，由於我們努力鞏固我們的銀行業足跡和利率上升，利息收入水平會更高。我們預計這將對我們第四季度的業績做出積極貢獻，並將為我們進入 2023 年提供強勁動力。我們調整後的 EBITDA 指導範圍意味著第四季度調整後的 EBITDA 利潤率約為 14%。雖然 2022 年整個季度的利潤率將約為 12%，但與上一年相比均顯示出正增長。對於 2023 年，我們引入了收入達到 9800 萬至 1.02 億美元以及調整後的 EBITDA 利潤率上升至 14% 至 16% 的初步指導。我們 2023 年收入指引的中點要求收入增長約 10%，所有這些都將是有機的。

Revenue growth in 2023 is anticipated to be driven primarily by a combination of gains in our HR compliance, tax processing solutions, reflecting a strong differentiation we have in those segments, improvements to our technology in 2022, and continued focus on new product introductions in 2023 to drive strong client demand. We are also pursuing numerous additional partnership opportunities with the integration marketplace as we expect to contribute meaningfully to our revenue profile in 2023 and beyond. Interest revenues are anticipated to increase in 2023 due to the increase in rates as well as our success in increasing our investible balances. For 2023, we anticipate the average [investible] balances of approximately $200 million and have modeled Fed fund rates rising to 4.5% in early 2023. We continue to consolidate our banking footprint, and we expect higher investment returns in this area from our efforts and the rising interest rate environment. We also anticipate continued positive trends in revenue churn as a result of our continued focus on operational process improvement.

預計 2023 年的收入增長將主要由我們的人力資源合規性、稅務處理解決方案的收益共同推動，這反映了我們在這些領域的強大差異化、2022 年技術的改進以及 2023 年對新產品推出的持續關注以推動強勁的客戶需求。我們還在尋求與集成市場的眾多額外合作機會，因為我們希望在 2023 年及以後為我們的收入狀況做出有意義的貢獻。由於利率上調以及我們在增加可投資餘額方面的成功，預計 2023 年的利息收入將增加。到 2023 年，我們預計平均 [可投資] 餘額約為 2 億美元，並模擬聯邦基金利率在 2023 年初升至 4.5%。我們將繼續鞏固我們的銀行業務足跡，我們預計我們的努力和這一領域的投資回報會更高利率上升的環境。由於我們持續關注運營流程改進，我們還預計收入流失將繼續呈現積極趨勢。

We are also introducing adjusted EBITDA margin guidance for 2023, which calls for a range of 14% to 16%. This represents a significant expansion in margins relative to 2022, which is already a period where we delivered strong margin growth over the prior year. Margin expansion in 2023 is anticipated to be driven by the additional scale generated by our revenue growth and the impact of the efficiency initiatives that Pat spoke about. These items are anticipated to more than offset the continued investments in our technology platforms and the expansion of our sales force. When we look at the progress made across several parts of the business in '22 as well as the increasing momentum we have achieved, we anticipate 2023 will be a strong year from both a revenue and adjusted EBITDA perspective.

我們還引入了 2023 年調整後的 EBITDA 利潤率指導，要求在 14% 到 16% 的範圍內。與 2022 年相比，這代表了利潤率的顯著增長，而 2022 年我們已經實現了比上一年強勁的利潤率增長。預計 2023 年的利潤率增長將受到我們收入增長產生的額外規模以及帕特談到的效率舉措的影響的推動。預計這些項目將抵消對我們技術平台的持續投資和我們銷售隊伍的擴大。當我們審視 22 年業務多個部分取得的進展以及我們取得的不斷增長的勢頭時，我們預計從收入和調整後的 EBITDA 角度來看，2023 年將是強勁的一年。

With that, I will return the call back to Pat for closing remarks.

有了這個，我會把電話回給帕特，讓他發表結束語。

Thanks, John. In conclusion, I hope that today's call has given you a sense of the enthusiasm we have for the remainder of 2022 and 2023. On past calls, we've given you a sense of the many initiatives we're implementing. I believe the business is positively responding to our efforts. We introduced several new solutions as well as enhancements that are beginning to generate revenues and are expected to be meaningful contributors to our revenues going forward. These include launch of integration marketplace, enhancements to our tax platform, and repositioning of HR compliance. These efforts have driven accelerating new sales bookings in the third quarter, up 91% year-over-year increases in new payroll logos added up 49% year-over-year, and a rising backlog up 180% year-over-year. We're also seeing the positive impact of our investment revenues from rising rates and higher investable assets.

謝謝，約翰。最後，我希望今天的電話會議讓您感受到我們對 2022 年和 2023 年剩餘時間的熱情。在過去的電話會議中，我們讓您了解了我們正在實施的許多舉措。我相信企業正在積極響應我們的努力。我們推出了幾個新的解決方案和增強功能，這些解決方案和增強功能已開始產生收入，預計將對我們未來的收入做出有意義的貢獻。其中包括推出整合市場、改進我們的稅務平台以及重新定位人力資源合規性。這些努力推動了第三季度新銷售預訂的加速增長，新工資標識同比增長 91%，同比增長 49%，積壓訂單同比增長 180%。我們還看到了利率上升和可投資資產增加對我們投資收入的積極影響。

For 2023, we anticipate delivering double-digit organic revenue growth and a strong adjusted EBITDA performance. Our revenue guidance anticipates solid momentum with our HR compliance and tax solutions reflecting the upgrades we've made. Revenue contribution is also expected to come from new revenue solutions, such as integrated marketplace. Interest revenues are also anticipated to increase meaningfully due to the rise in rates and investable balances. We also expect to improve our adjusted EBITDA margins significantly in 2023. This will be driven by organic revenue growth and a positive impact of our efficiency initiatives. These include driving process automation through the business to make operations much more efficient and to enable development of our new products and revenue streams, development of our human capital management platform, and our consolidation efforts. We're pleased about the progress we made to create differentiation in our market using our unique collection of assets, and we're excited about the year ahead of our clients our business, and our stakeholders.

到 2023 年，我們預計實現兩位數的有機收入增長和強勁的調整後 EBITDA 業績。我們的收入指南預計我們的人力資源合規性和稅務解決方案將取得強勁勢頭，反映出我們所做的升級。預計收入貢獻也將來自新的收入解決方案，例如綜合市場。由於利率和可投資餘額的上升，預計利息收入也將大幅增加。我們還希望在 2023 年顯著提高調整後的 EBITDA 利潤率。這將受到有機收入增長和我們效率舉措的積極影響的推動。其中包括通過業務推動流程自動化，以提高運營效率，並促進我們新產品和收入流的開發、人力資本管理平台的開發以及我們的整合工作。我們很高興我們在利用我們獨特的資產集合在我們的市場中創造差異化方面取得的進展，我們對我們的客戶、我們的業務和我們的利益相關者的未來一年感到興奮。

So with that, I will send the call back to the operator for the question-and-answer session. Operator?

因此，我會將電話轉回接線員進行問答環節。操作員？

(Operator Instructions). Our first question comes from Bryan Bergin of Cowen.

（操作員說明）。我們的第一個問題來自 Cowen 的 Bryan Bergin。

Maybe I'll start with just the macro one first. Are you -- it doesn't sound like it, but are you seeing any KPIs that would suggest recessionary behavior or in a slowdown impact. Can you just dig into what underlying macro assumptions you guys are making within that 2023 outlook?

也許我會先從宏觀開始。你是——聽起來不像，但你是否看到任何表明衰退行為或經濟放緩影響的 KPI。您能否深入了解一下你們在 2023 年展望中所做的基本宏觀假設？

Yes, Brian, thanks for the question. Right now, we're not seeing demand environment is strong. We're not frankly -- I think we're watching on our daily calls, we have operational daily calls as well as management daily calls, small business hiring still people -- there's more jobs and people right now. Interest rates obviously are going up. So the key drivers to us, we're just not seeing any recessionary behavior at all. As far as we're going to keep a web on assumptions, but assumptions are on the float around the current Fed funds rate. We didn't model projected increases, but we also did model projected decreases should there be a recession. As far as the demand environment, we think is pretty healthy. We're going to continue to monitor that. But as far as visibility for us, we feel really confident in the visibility of our small business Main Street clients.

是的，布萊恩，謝謝你的提問。目前，我們沒有看到需求環境強勁。我們不是坦率地說——我認為我們正在關注我們的日常電話，我們有運營日常電話以及管理日常電話，小企業仍在招聘人員——現在有更多的工作和人員。利率顯然在上升。因此，我們的主要驅動因素是，我們根本沒有看到任何衰退行為。就我們要保持假設的網絡而言，但假設是圍繞當前的聯邦基金利率浮動的。我們沒有對預計的增長進行建模，但我們也對出現衰退時的預計減少進行了建模。就需求環境而言，我們認為非常健康。我們將繼續對此進行監控。但就我們的知名度而言，我們對我們的小企業主街客戶的知名度非常有信心。

Okay. Very good. And then from a margin standpoint, you did better across the board from a cost standpoint versus what we projected. Can you just talk about really the biggest drivers there? I know there was a list of things you called out. What do you think is the single biggest and if possible, can you segregate the float contribution that you have in there?

好的。很好。然後從利潤的角度來看，從成本的角度來看，你比我們預測的要好。你能談談那裡真正最大的驅動因素嗎？我知道有一份清單，上面列出了你提到的事情。您認為最大的單一貢獻是什麼？如果可能的話，您能否將其中的浮動貢獻分開？

Yes. So there's some incremental float, obviously, this quarter. We really didn't get a huge uplift until September. We negotiated some better rates with one of our banks, and we do expect better rates going into the balance of Q4 and to '23. So that's obviously 100% fall-through helps. But I would just tell you in general, we -- rough numbers were in the 520-ish, 525 in terms of headcount after the acquisitions last year. I think we're end in the quarter around 505, not precise, but in that low 500s. So what we've been able to do is make those acquisitions, get them integrated, obviously, add to the top line with the acquisitions and these other initiatives and then keep our headcount not only steady but actually reducing it.

是的。因此，本季度顯然有一些增量浮動。直到 9 月，我們才真正得到巨大的提升。我們與我們的一家銀行協商了一些更好的利率，我們確實希望更好的利率進入第四季度和 23 年的餘額。所以這顯然是 100% 失敗的幫助。但我只想告訴你，在去年收購之後，我們的粗略數字是 520 左右，就員工人數而言是 525 人。我認為我們在 505 左右的季度結束，不准確，但在 500 左右。因此，我們能夠做的就是進行這些收購，將它們整合，顯然，通過收購和這些其他舉措增加收入，然後不僅保持我們的員工人數穩定，而且實際上減少了它。

So I think that's where you see the biggest contribution from my perspective in terms of the margin improvements. And I think as we think about next year and those -- the EBITDA guidance, we're showing a pretty good fall through for the incremental revenue. It's implicit. And so again, I think the idea is that we've got an operating model that we feel is pretty stable, and that's really given us some comfort in terms of the cost structure.

所以我認為，從我的角度來看，就利潤率改善而言，這是你看到最大貢獻的地方。而且我認為，當我們考慮明年和那些 - EBITDA 指南時，我們顯示出增量收入的相當不錯的下降。這是隱含的。因此，我認為我們的想法是，我們擁有一個我們認為非常穩定的運營模式，這在成本結構方面確實給了我們一些安慰。

Yes. The only thing I would add to John's commentary, I think he's spot on is some of the incremental revenue streams, whether it's the marketplace, whether it's float whether it's some of the consolidation of instances of software, they bring with us a higher flow-through margin. I'm not going to break that out specifically, but that's some of the reason why you're seeing the jump in margin. And then also, we're just getting the scale and John talked about some of the initiatives. I'll point out float a year ago, we were about 120 bank accounts. We're probably approaching less than 20 here as we end the year. That falls through as an example where we can get more scale on our float dollars as well as consolidation of costs internally. So it's a win-win for all of us. So that's just an example of it.

是的。我唯一要添加到 John 的評論中，我認為他的觀點是一些增量收入流，無論是市場，無論是浮動的還是軟件實例的一些整合，它們給我們帶來了更高的流量-通過保證金。我不打算具體說明這一點，但這就是你看到利潤率躍升的部分原因。然後，我們剛剛獲得規模，John 談到了一些舉措。我會指出一年前的浮動，我們大約有 120 個銀行賬戶。到今年年底，我們可能接近不到 20 個。這就是一個例子，我們可以在我們的浮動美元上獲得更大的規模，並在內部整合成本。所以這對我們所有人來說都是雙贏的。所以這只是一個例子。

Our next question comes from Josh Riley of Needham.

我們的下一個問題來自 Needham 的 Josh Riley。

Nice job on the quarter here. How should we think about the relative focus of the sales organization today in terms of organic customer acquisition versus upselling the base? And then does that change at all going forward given you have all these new products to upsell? And what's the optimal mix going forward to hit your growth targets of 10%?

這個季度幹得不錯。我們應該如何考慮當今銷售組織在有機客戶獲取與追加銷售方面的相對重點？那麼，鑑於您要追加銷售所有這些新產品，這種情況是否會有所改變？未來實現 10% 增長目標的最佳組合是什麼？

Yes. I think, Josh, good question. I mean we're continuing to focus on -- first of all, new logo has been really strong. [Al] and the team have done an outstanding job of targeting new logo. We're doing a lot of good bundling. The increase of logos of 49% is really positive. We'll continue to drive cross-sell up over the time. I think we frankly feel really confident we're going to get the sales flow through. If you just look at our projection of sales, reoccurring revenue, bookings have gone up from 40-odd to 80-odd-percent to 91%, and recurring bookings have increased through the year. So we feel like we have a good formula. We feel like we have success, we'll continue to bundle in some of the other revenue streams in addition to cross-sell and new logos would be a big part of the strategy. So right now, we're hitting on all cylinders. We'll continue to grow out the sales team and invest in that. We'd like to see us go up about 15% to 20% per year. Some of that, though, we're not going to compromise from a sales headcount perspective, on quality. We're going to continue to drive that within the framework. So I feel we have a good plan going forward. We have a great execution plan so far this year. Our people are motivated, excited and we think there's going to be a halo effect into the next year, Josh.

是的。我想，喬希，問得好。我的意思是我們將繼續關注——首先，新標識真的很強大。 [Al] 和團隊在定位新徽標方面做得非常出色。我們正在做很多很好的捆綁。徽標增加 49% 確實是積極的。隨著時間的推移，我們將繼續推動交叉銷售。坦率地說，我認為我們真的有信心讓銷售流程順利進行。如果你只看我們的銷售預測，經常性收入，預訂率從 40% 上升到 80% 到 91%，而且經常性預訂在全年都有所增加。所以我們覺得我們有一個很好的公式。我們覺得我們取得了成功，除了交叉銷售之外，我們將繼續捆綁其他一些收入來源，新標識將成為該戰略的重要組成部分。所以現在，我們正在全力以赴。我們將繼續壯大銷售團隊並對其進行投資。我們希望看到我們每年增長 15% 到 20%。不過，從銷售人員的角度來看，其中一些我們不會在質量上妥協。我們將繼續在框架內推動它。所以我覺得我們有一個很好的未來計劃。今年到目前為止，我們有一個很棒的執行計劃。我們的員工充滿動力、興奮，我們認為明年會產生光環效應，Josh。

Yes. I think a couple of points. Some of the growth that we've got contemplated doesn't even require a sale. So if you think about the marketplace and you think about the float just implicit in the model, we're going to start getting some uplift out of those new revenue streams is incremental revenue stream. So that gives us some comfort about next year and about Q4.

是的。我認為有幾點。我們所考慮的一些增長甚至不需要出售。因此，如果您考慮市場並考慮模型中隱含的浮動，我們將開始從這些新收入流中獲得一些提升，即增量收入流。因此，這讓我們對明年和第四季度有了一些安慰。

Got it. That's helpful. And then maybe a follow-up. When you look at the new 2023 guidance here, how much of the difference in improved EBITDA margin versus where consensus was that is due to now including the interest income in the model for a full year versus some of these internal efficiency improvements? And what did you say the timeline was on the $5 million? Was that the end of '23 or '24?

知道了。這很有幫助。然後也許是後續行動。當你在這裡查看新的 2023 年指南時，由於現在將全年的利息收入包括在模型中與其中一些內部效率改進相比，EBITDA 利潤率的提高與共識的差異有多大？你說 500 萬美元的時間表是什麼？那是 23 年還是 24 年的末日？

Yes. Just in general, the $5 million improvement is a plan that goes over, let's say, about 18 months fully baked. But I just want to caution you what the $5 million does we'll probably invest some of that in salespeople that we just talked about. We'll invest some of that in developers. We'll continue to drive efficiency. The real flow-through will come through some of the cross-sell performance, the reoccurring revenue, the float dollars as well as the marketplace dollars that really is a touchless process. So those 3 are already baked in the plan. Some of these initiatives have been 1.5 years into making. They're starting to hit, for example, the marketplace start to went live in August. It'll be increasingly a bigger share. Obviously, the float dollars a year ago, the short-term Fed funds rate was 0. Now it's, call it, 3.75% to 4%. So you can see that the momentum is already there. So it gives us a lot of confidence, Josh.

是的。總的來說，500 萬美元的改進是一項計劃，比方說，大約需要 18 個月的時間才能完成。但我只是想提醒你 500 萬美元的用途，我們可能會將其中的一部分投資於我們剛剛談到的銷售人員。我們將把其中的一部分投資於開發人員。我們將繼續提高效率。真正的流通將來自一些交叉銷售業績、經常性收入、浮動美元以及真正是非接觸式過程的市場美元。所以這 3 個已經在計劃中了。其中一些舉措已經制定了 1.5 年。他們開始受到打擊，例如，市場在 8 月開始上線。它將越來越大的份額。顯然，一年前的浮動美元，短期聯邦基金利率為 0。現在可以說是 3.75% 到 4%。所以你可以看到勢頭已經存在。所以這給了我們很大的信心，喬什。

Yes. Josh, we have a shout-out to a mutual friend, [Frank Stefan], who had a [birdie on '18], make the corn ferry tour. So that was exciting for me to see.

是的。喬什，我們要向我們共同的朋友 [弗蘭克斯特凡] 大喊大叫，他在 [18 年] 抓到一隻小鳥，參加玉米渡輪之旅。所以這讓我很興奮。

Yes. We're very excited. Awesome stuff. Great.

是的。我們非常興奮。很棒的東西。偉大的。

Next question, operator?

下一個問題，運營商？

All right. Next question comes from Eric Martinuzzi of Lake Street Capital Markets.

好的。下一個問題來自 Lake Street Capital Markets 的 Eric Martinuzzi。

It's Eric from Lake Street Capital Markets. I wanted to look into the retention figures. You talked about them improving. Do you have a number as far as Q3 retention versus the prior quarters?

我是 Lake Street Capital Markets 的 Eric。我想調查保留數字。你談到他們在進步。與前幾個季度相比，您是否有關於第三季度留存率的數字？

Yes. Year-to-date, Eric, what I would say is we're going up and we're providing, let's say, an annualized number close to 90%, and it's been a 1% or 100 basis points improvement, and that's been year-over-year the last couple of years. So it's not a perfect science, but somewhere around going from 89% to 90%.

是的。年初至今，埃里克，我想說的是我們正在上升，我們提供的年化數字接近 90%，並且已經提高了 1% 或 100 個基點，這一直是過去幾年逐年增長。所以這不是一門完美的科學，但大約在 89% 到 90% 之間。

Okay. And then are you getting the same message from your reseller partners that you're getting from your direct sales reps? Obviously, the bookings being up 91%. I'm assuming the answer is yes, but just tough to get a feel for the smaller customers maybe versus the midsized customers on the new business bookings.

好的。然後，您從經銷商合作夥伴那裡得到的信息是否與您從直銷代表那裡得到的信息相同？顯然，預訂量增加了 91%。我假設答案是肯定的，但很難對新業務預訂中的小型客戶與中型客戶進行比較。

Yes, the reseller, it's not a perfect correlation. First of all, the product service is good and the resellers are certainly increasing. But in some cases, they're not devoting the resources that we are to an organic sale. So to me, it's not a perfect correlation, but I have been very pleased that our resellers are starting to add more clients and more employees as well coming out of COVID and investing in the business. Not all of them invest in top line quite as much as we have. So they're probably trailing a little bit but certainly making really good progress.

是的，經銷商，這不是一個完美的關聯。首先，產品服務好，經銷商肯定在增加。但在某些情況下，他們並沒有像我們一樣將資源用於有機銷售。所以對我來說，這不是一個完美的相關性，但我很高興我們的經銷商開始增加更多的客戶和員工，以及從 COVID 中走出來並投資於業務。並非所有人都像我們一樣投資於頂線。所以他們可能落後了一點，但肯定取得了很好的進展。

Okay. And then I was pleased to see the guidance here for double-digit in Q4 as well as double-digit growth in FY '23. I'm not used to seeing that foot on the accelerator as far as -- you talked about Q3 organic growth of 4%. And then here, we're jumping up to whatever it is 11% plus 4.8%, the midpoint for Q4. What -- is there -- are there one-time sales? Is there a project worth professional services? Is there a lumpy number in there for Q4?

好的。然後我很高興在這裡看到第四季度兩位數的指導以及 23 財年的兩位數增長。我不習慣看到那隻腳踩在加速器上——你談到第三季度 4% 的有機增長。然後在這裡，我們跳到 11% 加 4.8%，第四季度的中點。什麼——有——有一次性銷售嗎？有沒有值得專業服務的項目？ Q4 那裡有一個塊狀數字嗎？

No. It's what we were talking about. It's a combination of a lot of different things all coming together all at once. So Pat mentioned the fact that HR compliance sales have been really, really strong. We talked about float again. We've got some visibility into the rising interest rates. And then the integration marketplace just kicked off in earnest this quarter. There's a ramp to that. There's additional products and additional offerings coming into that. And we've got pretty good visibility as to what that's going to look like. So I think that's a lot of what's driving that so it's not just one product or one stream, which is a lot of them are hitting all at once.

不，這就是我們正在談論的。它是許多不同事物同時聚集在一起的組合。所以帕特提到了一個事實，即人力資源合規銷售一直非常非常強勁。我們又談到了浮動。我們對不斷上升的利率有了一些了解。然後，集成市場在本季度正式啟動。有一個斜坡。還有其他產品和其他產品。我們對它的外觀有很好的了解。所以我認為這有很多推動力，所以它不僅僅是一種產品或一種流，它們中的很多都同時受到衝擊。

Yes. Eric, and I apologize. The only thing I would add, if you look at our ARR bookings or reoccurring bookings, it really -- it was a 40% increase in the first quarter, 80s% in the second, 91% in the third. Some of the small business churn or bookings turning into revenue is almost immediate to 90 days, the marketplace, depending when that was booked was 90 days plus. Although it did start in August, and it's increasingly going up. And then float, as John mentioned, was 0 and now some of the float revenue is starting to hit at a higher percentage. So it's a culmination, not every booking goes live right away. The organic growth was a little over 0 in the first quarter, a little over 0 in a second. Third quarter, some of the revenue from different streams hit the beach. It was over 4%. Fourth quarter, we have really good visibility. So I don't view this as a lumpiness at all. And then our initial guidance, we want to be thoughtful about potential recessionary environments, et cetera. By the same token, we see the momentum going on with the business, and we feel that guide is a prudent guide going forward.

是的。埃里克，我道歉。我唯一要補充的是，如果你看一下我們的 ARR 預訂或重複預訂，它真的 - 第一季度增長了 40%，第二季度增長了 80%，第三季度增長了 91%。一些小企業流失或預訂轉化為收入幾乎是 90 天，市場，這取決於預訂的時間是 90 天以上。雖然它確實是從八月份開始的，而且還在不斷上升。然後浮動，正如約翰提到的那樣，是 0，現在一些浮動收入開始達到更高的百分比。所以這是一個高潮，並不是每個預訂都會立即生效。第一季度有機增長略高於0，第二季度略高於0。第三季度，來自不同渠道的部分收入出現了下滑。超過4%。第四季度，我們的知名度非常好。所以我根本不認為這是一個腫塊。然後是我們的初步指導，我們希望對潛在的衰退環境等進行深思熟慮。出於同樣的原因，我們看到了業務發展的勢頭，我們認為該指南是一個謹慎的前進指南。

Yes. And I would say, we talked about it on some of the prior calls, we haven't even touched on some of the tax processing work that we have, we think -- so some interesting opportunities ahead of us. And then there's some significant momentum with some of the tax processing and the tax credit processing that we're doing, but we feel pretty excited about. But again, it's just a lot of different things all at once. It's overnight success.

是的。我想說的是，我們在之前的一些電話中談到了它，我們甚至還沒有談到我們擁有的一些稅務處理工作，我們認為 - 所以我們面前有一些有趣的機會。然後我們正在做的一些稅務處理和稅收抵免處理有一些重要的勢頭，但我們感到非常興奮。但同樣，這只是一次很多不同的事情。這是一夜成名。

The overnight sometimes is years in the making.

一夜之間有時是多年的醞釀。

Yes. I'm looking forward to seeing you guys ring the bell when you cross that $100 million mark.

是的。我期待看到你們在突破 1 億美元大關時敲響警鐘。

Operator?

操作員？

Sorry. Next call comes from Richard Baldry of ROTH Capital.

對不起。下一個電話來自 ROTH Capital 的 Richard Baldry。

One of your comments, I think you said that you thought the integration marketplace could be as much as 30% to 40% of revenues over the next few years, which is -- would obviously be a pretty fast ramp. Can you talk a little bit more about that, how many more opportunities you have for partners to go into that? Who spearheads attracting those? How much you can push end-user adoption through either your own sales or marketing efforts? Just to flesh out more about how that opportunity will work over the next few years.

你的評論之一，我想你說過你認為集成市場在未來幾年可能佔收入的 30% 到 40%，這顯然是一個相當快的增長。你能多談談這個嗎，你還有多少機會讓合作夥伴參與其中？誰帶頭吸引那些人？您可以通過自己的銷售或營銷工作在多大程度上推動最終用戶採用？只是為了更多地說明這個機會在未來幾年將如何發揮作用。

Yes, Rich, it's a good question. And we -- will highlight this in our -- we have an investment deck as well and located on our IR website. So I encourage you to look at that as well and future iterations of that. But -- if you think about it, first of all, I give you an example of Equifax, which is one of our companies that spearheaded the marketplace. If you think about the value proposition, the employees, sometimes they want -- they apply for a loan in this case, and they want to touch those process. They don't want necessarily their employer to have to get interviewed and then the employer knows that they're applying for a loan. The employer doesn't want to take 20 minutes to 30 minutes outside of their day to field employee loan questions. The data is available. And then we go through a process of opting in and opting out both at a company level as well as an employee process. And most people appreciate the time, and they want data that's available. And then Equifax doesn't have to do a phone call and then we get some money for monetizing that data. So that's the process.

是的，里奇，這是個好問題。我們 - 將在我們的 - 我們也有一個投資平台並位於我們的 IR 網站上。因此，我鼓勵您也看看它以及它的未來迭代。但是——如果你仔細想想，首先，我給你舉一個 Equifax 的例子，它是我們引領市場的公司之一。如果你考慮價值主張，員工，有時他們想要 - 他們在這種情況下申請貸款，他們想要接觸這些過程。他們不一定希望他們的雇主必須接受面試，然後雇主才知道他們正在申請貸款。雇主不想在日常工作之外花 20 到 30 分鐘來解決員工貸款問題。數據可用。然後我們在公司層面和員工流程中經歷一個選擇加入和退出的過程。大多數人都很珍惜時間，他們想要可用的數據。然後 Equifax 不必打個電話，然後我們就可以從這些數據中獲利。這就是過程。

Now if you think of the categories that have everybody's best interest in that, you could see W-2s, for example, where you have Intuit or H&R Block, they can (technical difficulty) get the actual W-2. The employee loves it because they don't have to recreate the W-2 or put it -- get more paperwork available. They can turn that into a personal tax return. So there's a number of different issues. You might see a sign in a small business saying, "Hey, work today, get paid today.” Millennials like the idea of, “I'll take babysitting,” where they babysit and they get paid right away. They sometimes don't understand the concept that they have to wait 2 to 3 weeks to get paid, especially in an environment where they might need money or not have a lot of savings.

現在，如果你想到每個人最感興趣的類別，你可以看到 W-2，例如，在你有 Intuit 或 H&R Block 的地方，他們可以（技術難度）獲得實際的 W-2。員工喜歡它，因為他們不必重新創建 W-2 或放置它——獲得更多可用的文書工作。他們可以將其變成個人納稅申報單。所以有很多不同的問題。你可能會在一家小企業看到一個標語，上面寫著：“嘿，今天工作，今天就拿錢。”千禧一代喜歡這樣的想法，“我來照看孩子”，他們照看孩子並立即獲得報酬. 他們有時不理解他們必須等待 2 到 3 週才能獲得報酬的概念，尤其是在他們可能需要錢或沒有很多積蓄的環境中。

So there's a whole series of categories that we believe could be beneficial to us. Let's take a 401(k) provider. They would love the idea that they could help employees and clients alike that if somebody quits or leaves a company that they can roll over their 401(k) to the IRA and they don't have to find the paperwork to do that, and they can talk to their trusted adviser being Putnam or Fidelity or whomever a human interest to be able to do that. So there's a series of opportunities. Eyal Goldstein, our President is really spearheading [those], he has done a nice job circling the wagons, Yasmine Rodriguez, our CTO; and [Taboletski], have done a really good job operationally and from a technology perspective, providing this. So this will be a multiyear strategy, more to come on it, but we've had some really good proof points.

因此，我們認為有一系列類別可能對我們有益。讓我們以 401(k) 提供商為例。他們會喜歡這樣的想法，即他們可以幫助員工和客戶，如果有人辭職或離開公司，他們可以將他們的 401(k) 計劃轉到 IRA，而他們不必為此尋找文書工作，而且他們可以與他們信任的顧問（Putnam 或 Fidelity 或任何人類感興趣的人）交談，以便能夠做到這一點。所以有一系列的機會。 Eyal Goldstein，我們的總裁真的帶頭[那些]，他在馬車上盤旋做得很好，我們的首席技術官 Yasmine Rodriguez；和 [Taboletski]，在運營和技術方面都做得非常好，提供了這一點。所以這將是一項多年戰略，未來還會有更多，但我們已經有了一些非常好的證據。

And do you think that all that these broader features that are available then to your customer base? Does that help you start climbing higher on new wins, average headcount or maybe into that lower middle market because of that feature functionality they can extend get more competitive upmarket?

您是否認為您的客戶群可以使用所有這些更廣泛的功能？這是否有助於您開始在新的勝利、平均員工人數上攀升，或者可能因為他們可以擴展的特性功能而進入中低端市場以獲得更具競爭力的高端市場？

I'm not sure that's necessarily in the buying decision for these people. I just think it's a nice incremental revenue stream of already our installed base. So I don't think that at least that's my impression is that this isn't necessarily something that somebody is looking at when they're trying to evaluate their payroll providers that they have these other opportunities, but I could be wrong. I tend to think it's just an incremental revenue stream of that installed base.

我不確定這些人是否一定會做出購買決定。我只是認為這是我們已經安裝的基礎的一個很好的增量收入流。所以我不認為至少我的印像是，當有人試圖評估他們的工資供應商時，他們不一定會看到他們有這些其他機會，但我可能是錯的。我傾向於認為這只是該安裝基礎的增量收入流。

Yes. And Rich, the only thing I'd say we have a strategy, a deliberate strategy around this. I think we'll continue to drive it. Over time, we'll get a market -- we're not in a necessarily a rush to do that. We think we have really good line of sight to some really good growth. But yes, over time, we'll increase our aperture, but right now, we want to just stay focused.

是的。 Rich，我唯一要說的是我們有一個戰略，一個深思熟慮的戰略。我想我們會繼續推動它。隨著時間的推移，我們將獲得一個市場——我們不一定急於這樣做。我們認為我們對一些非常好的增長有很好的視線。但是，是的，隨著時間的推移，我們會增加光圈，但現在，我們只想保持專注。

Next question comes from Daniel Hibshman of Craig Hallum Capital Group.

下一個問題來自 Craig Hallum Capital Group 的 Daniel Hibshman。

This is Daniel on for Jeff. Just a quick question for us on the timeline on marketplace, when we're talking about several year timeline to get to 30%, 40%. Just any ballpark around we think in 2024, 2025, what does several years mean? And then just thoughts on the incremental margins out of that business and how you're thinking about that affecting margins also just where you're seeing that as a percent of bookings right now?

這是傑夫的丹尼爾。當我們談論達到 30%、40% 的幾年時間表時，就市場時間表向我們提出一個簡短的問題。就我們認為在 2024 年、2025 年左右的任何一個大概而言，幾年意味著什麼？然後只是想一想該業務的增量利潤率以及您如何考慮影響利潤率以及您現在將其視為預訂百分比的地方？

Yes. Just on your first question, Dan, we're not going to get into ‘24 or ‘25 right now. We will provide multiyear updates in the future. But right now, we're just focused on initial guidance. We're telling you where it could go. But we'll provide more color as we go on throughout the year. As far as the margin flow through, once you set up the technology and the process, we do think it will be higher margin than our core business. But as far as breaking that stuff out right now, you'll see them more in time. But it does absolutely the guidance starts to reflect that going forward as well.

是的。關於你的第一個問題，丹，我們現在不會進入“24”或“25”。我們將在未來提供多年更新。但現在，我們只專注於初步指導。我們告訴你它可能去哪裡。但我們會在全年繼續提供更多顏色。就利潤率而言，一旦你設置了技術和流程，我們確實認為它的利潤率會高於我們的核心業務。但就現在打破這些東西而言，你會及時看到它們。但它確實確實指導也開始反映了這一點。

All right. And our last question right now comes from Vincent Colicchio. Vincent is from Barrington Research.

好的。我們現在的最後一個問題來自 Vincent Colicchio。文森特來自 Barrington Research。

Pat, a nice quarter. Just a couple of questions here. I may have missed it, but did you break down your bookings growth between new and existing clients?

帕特，一個不錯的季度。這裡只有幾個問題。我可能沒注意到，但是您是否分解了新客戶和現有客戶之間的預訂增長？

Yes. I think overall, we had 47% new logos. About 75% or so was new logos versus existing, really good progress in ARR, I think it was up 180%. So good bookings all the way around, very pleased with our bookings performance, say, that's how we did a nice job.

是的。我認為總體而言，我們有 47% 的新徽標。大約 75% 左右是新徽標與現有徽標相比，ARR 取得了非常好的進展，我認為它上升了 180%。一路上的預訂都很好，對我們的預訂表現非常滿意，也就是說，這就是我們做得很好的方式。

And then is there any -- are you seeing any improvements in the labor market, wage inflation, attrition, is that trending in the direction we'd like to see?

然後有沒有——你是否看到勞動力市場、工資通脹、人員流失方面有任何改善，這些趨勢是否朝著我們希望看到的方向發展？

Yes. Well, I'll tell you, internally, our retention rate is improving, which is always good to see. We feel like we're rewarding people appropriately. We're getting success – breeds success. So that's always a positive thing. As far as the client retention, I think the labor market is still tight. I think some people are a little worried about insert recession coming. I'll tell you, Main Street America, from my perspective, unemployment is still low. I think it's a bigger company potentially lay off. I actually think a recession might bring some people that were out of the workforce due to COVID, due to homeschooling due to that preretirement and their 401(k) is now at 301(k), it drives them back to the workforce. So I actually think that will be a slight positive, but that's what we see today.

是的。好吧，我會告訴你，在內部，我們的保留率正在提高，這總是一件好事。我們覺得我們正在適當地獎勵人們。我們正在取得成功——孕育成功。所以這總是一件積極的事情。至於客戶保留，我認為勞動力市場仍然緊張。我認為有些人有點擔心插入式經濟衰退的到來。我會告訴你，美國大街，從我的角度來看，失業率仍然很低。我認為這是一家可能裁員的大公司。實際上，我認為經濟衰退可能會使一些因 COVID 而失業的人，由於退休前在家上學，他們的 401(k) 現在是 301(k)，這促使他們重返工作崗位。所以我實際上認為這將是一個輕微的積極因素，但這就是我們今天所看到的。

And how confident are you on the $5 million over the next 18 months? I'm just curious if some of the elements like the automation are areas where you've had some disappointment in terms of hitting targets in the past.

您對未來 18 個月的 500 萬美元有多大信心？我只是很好奇某些元素（例如自動化）是否是您過去在實現目標方面感到失望的領域。

So I'll tell you, I feel really confident in the team. I think we got it. Certainly, when you're -- we weren't in this business 6 years ago or 7 years ago, we're continuing to build up the infrastructure. We're hiring good people. We have the plans. You see it even in the second, third, fourth quarter guidance performance, the flow through the fact that we have the initial guidance for next year, EBITDA going up. I think some of maybe just the benefits of scale as we approach, we sold off the space business, we hit COVID. Now we're coming out of COVID. We feel like we have multiyear initiatives are starting to hit the ability to predict the business going forward. And more importantly, the improvement going forward, you see us stack up successes. We're not uncertain that we're going to improve.

所以我會告訴你，我對球隊很有信心。我想我們明白了。當然，當你 - 6 年前或 7 年前我們不在這個行業時，我們正在繼續建立基礎設施。我們正在招聘優秀人才。我們有計劃。你甚至可以在第二、第三、第四季度的指導業績中看到它，通過我們對明年的初步指導，EBITDA 上升這一事實。我認為，隨著我們的接近，我們賣掉了太空業務，我們擊中了 COVID，其中一些可能只是規模的好處。現在我們正在擺脫 COVID。我們覺得我們的多年計劃開始影響預測業務發展的能力。更重要的是，未來的改進，你會看到我們取得了成功。我們不確定我們是否會有所改進。

Nice quarter.

不錯的季度。

Operator, any other questions?

接線員，還有其他問題嗎？

No. I believe at this time, we'd like to hand it back to you, Pat Keppel for closing remarks.

不，我相信此時，我們想把它交還給你，Pat Keppel 作結束語。

Yes. I appreciate everybody's time today. We took a little bit longer today and want to make sure that you had good visibility and understanding in the story. I'd tell you I'm very proud of the team. I'm proud of our employees. I'm really excited about our clients, our stakeholders, our investors. I think we pointed to this day as an inflection point for quite some time. We're continuing to point towards organic growth of 10% plus. We have great line of sight into it. We talked about margin expansion. We have good line of sight into that. I'm just really, really proud of the team. And I think the best (technical difficulty) so thank you so much for your time today, and we'll talk to you next time.

是的。我感謝大家今天的時間。我們今天花了一點時間，希望確保您對這個故事有很好的了解和理解。我會告訴你我為球隊感到非常自豪。我為我們的員工感到自豪。我對我們的客戶、利益相關者和投資者感到非常興奮。我認為我們在相當長一段時間內都將這一天視為一個轉折點。我們將繼續指向 10% 以上的有機增長。我們對它有很好的看法。我們談到了利潤率擴張。我們對此有很好的看法。我真的為球隊感到驕傲。我認為最好的（技術難度）所以非常感謝你今天抽出時間，我們下次再談。

Thank you, guys. This does conclude the program. You may not feel free to disconnect. Thank you.

感謝你們。這確實結束了程序。您可能無法隨意斷開連接。謝謝你。