Dayforce Inc (DAY) 2022 Q3 法說會逐字稿

Hello, and welcome to Ceridian's third quarter 2022 Earnings Conference call, I'm. Matt Wells, Senior Director of Investor Relations, and on the call today. We have our Co-CEOs, David Ossip and Leagh Turner and our CFO Noemie Heuland. (Operator Instructions)

大家好，歡迎來到 Ceridian 的 2022 年第三季度收益電話會議，我是。投資者關係高級總監 Matt Wells 今天接聽電話。我們有我們的聯席首席執行官 David Ossip 和 Leagh Turner 以及我們的首席財務官 Noemie Heuland。 （操作員說明）

Before I hand the call over to David. I want to remind everyone that our commentary may include forward-looking statements. These statements are subject to risks and uncertainties that could cause Ceridian's results to differ materially from historical experience or present expectations. A description of some of these risks and uncertainties can be found in the reports we filed with the Securities and Exchange Commission, such as the cautionary statements in our filings.

在我把電話交給大衛之前。我想提醒大家，我們的評論可能包含前瞻性陳述。這些陳述受到風險和不確定性的影響，這些風險和不確定性可能導致 Ceridian 的結果與歷史經驗或當前預期存在重大差異。在我們向證券交易委員會提交的報告中可以找到對其中一些風險和不確定性的描述，例如我們文件中的警示性聲明。

Additionally, over the course of this call, we will reference non-GAAP measures to describe our performance. Please review our earnings press release and filings with the SEC for our rationale behind the use of non-GAAP measures and for a full reconciliation of these GAAP to non-GAAP metrics. Both our earnings press release and SEC filings are available on the Ceridian Investor Relations website. As a final note, A replay of this call will also be available on our Investor Relations website.

此外，在本次電話會議期間，我們將參考非 GAAP 指標來描述我們的業績。請查看我們的收益新聞稿和提交給美國證券交易委員會的文件，了解我們使用非 GAAP 措施背後的理由，以及這些 GAAP 與非 GAAP 指標的全面對賬。我們的收益新聞稿和 SEC 文件都可以在 Ceridian 投資者關係網站上找到。最後一點，我們的投資者關係網站上也將提供此次電話會議的重播。

And with that, I'd like to turn the call over to David.

有了這個，我想把電話轉給大衛。

Hello, everyone, and thank you for joining our Q3 earnings Today, I'll speak about our very strong performance in the quarter and continued company momentum as well as some exciting product highlights as we prepare for our global customer conference insights taking place next week. Leagh will elaborate on both our market momentum and our continued ability to scale. And then now Noemie will provide commentary on the Q3 results and full year guidance before we open the call for questions.

大家好，感謝您參與我們的第三季度財報今天，我將談論我們在本季度非常強勁的表現和持續的公司發展勢頭以及一些令人興奮的產品亮點，因為我們正在為下週舉行的全球客戶會議做準備. Leagh 將詳細闡述我們的市場勢頭和我們持續擴展的能力。現在，在我們開始提問之前，Noemie 將對第三季度的結果和全年指導進行評論。

Let me start with our financial performance. We had a very strong third quarter. We exceeded the high end of our guidance across all metrics despite the headwind of a stronger U.S. dollar. Our PEPM revenue growth remains strong and float income continues to benefit from a return to a more normalized interest rate environment. On a constant currency basis, Dayforce recurring revenue grew 32% and 27% excluding float.

讓我從我們的財務業績開始。我們有一個非常強勁的第三季度。儘管美元走強的逆風，我們在所有指標上都超出了我們指導的上限。我們的 PEPM 收入增長依然強勁，浮動收入繼續受益於回歸更加正常化的利率環境。按固定匯率計算，Dayforce 經常性收入增長 32%，不計浮動收入增長 27%。

Our business continues to scale very well. I'm pleased to report that adjusted EBITDA was $63.5 million, a 61% improvement year-on-year, and adjusted EBITDA margin was 20.1% of revenue and expansion versus a year ago when the business was operating at 15.3%. Adjusted cloud recurring gross margins of 74.8%, expanded 50 basis points year-over-year. We continue to invest in sales and product innovation to fuel durable revenue growth while also demonstrating our ability to scale operations.

我們的業務繼續很好地擴展。我很高興地報告，調整後的 EBITDA 為 6350 萬美元，同比增長 61%，調整後的 EBITDA 利潤率為收入和擴張的 20.1%，而一年前該業務的運營率為 15.3%。調整後的雲經常性毛利率為 74.8%，同比增長 50 個基點。我們繼續投資於銷售和產品創新，以推動持久的收入增長，同時展示我們擴大業務規模的能力。

Third quarter operating cash flows were $52.1 million in the third quarter, doubling from last year and driven by operating margin expansion and great benefits. Our brand promise has always been to make work life better. The reality of the post-pandemic world is the way people work has permanently changed. And as a result, the demand for Dayforce remains robust. Furthermore, in a difficult market, every organization worldwide is focused on efficient growth and the most significant asset companies have is its people. Dayforce has always promised the delivery of quantifiable value, meaning real money saving and ROI back to our customers.

第三季度第三季度運營現金流為 5210 萬美元，比去年翻了一番，這主要受運營利潤率擴張和巨大收益的推動。我們的品牌承諾始終是讓工作生活更美好。大流行後世界的現實是人們的工作方式已經永久改變。因此，對 Dayforce 的需求依然強勁。此外，在艱難的市場中，全球每個組織都專注於高效增長，而公司最重要的資產是其員工。 Dayforce 一直承諾提供可量化的價值，這意味著真正的省錢和投資回報率回饋給我們的客戶。

We are the engine that helps companies determine the most efficient high-value way of engaging employees across the enterprise while also providing real-time insights and reported. This delivers quantifiable value for the organization. Given the new reality of work and the fact that every organization is striving to operate efficiently in today's market conditions, it's clear why demand for Dayforce is growing. Year-to-date sales are up significantly, and our pipeline remains strong, all of which I will ask Leagh discuss in more detail in a moment.

我們是引擎，幫助公司確定最有效的高價值方式來吸引整個企業的員工，同時提供實時見解和報告。這為組織帶來了可量化的價值。鑑於新的工作現實以及每個組織都在努力在當今的市場條件下高效運營這一事實，對 Dayforce 的需求正在增長的原因顯而易見。年初至今的銷售額大幅增長，我們的產品線依然強勁，稍後我將請 Leagh 詳細討論所有這些。

Turning to technology and product innovation. We are very pleased to report that for the third year in a row. We have been named a leader by Gartner in its Magic Quadrant for Cloud HCM Suites for organizations that have more than 1,000 employees. It's worth noting that we are the only pure-play HCM vendor in a leader quadrant alongside the ERP vendors. We have continually said, our ability to innovate at pace and scale were resulting us separating ourselves from our competition. We believe that been clearly validated and at a point in time when demand for what we do remains strong. A consistent pace of innovation allows us to expand our addressable market across all segments and geographies simultaneously, whether it's serving the world's largest global multinational, delivering full suite capabilities in our native markets or breaking centuries old models around how and when people get paid.

轉向技術和產品創新。我們很高興連續第三年報告這一情況。我們被 Gartner 評為擁有超過 1,000 名員工的組織的雲 HCM 套件魔力像限領導者。值得注意的是，我們是與 ERP 供應商一起進入領導者象限的唯一一家純 HCM 供應商。我們一直在說，我們在速度和規模上進行創新的能力使我們從競爭中脫穎而出。我們相信這已經得到明確驗證，並且在對我們所做的事情的需求仍然強勁的時候。始終如一的創新步伐使我們能夠同時在所有細分市場和地區擴展我們的潛在市場，無論是為世界上最大的跨國公司提供服務，在我們的本地市場提供全套功能，還是打破人們獲得報酬的方式和時間的數百年舊模式。

So far in 2022, we've delivered more than 840 new features to our customers and we're not done. In the quarter, we delivered the following technology that makes work life better for our customers. HR knowledge management, which provides HR professionals with the ability to create knowledge bases that empower employees to find answers to their common HR and compliance questions proactively. HR Knowledge Management is delivered seamlessly to employees through our engaging employee experience hub.

到 2022 年為止，我們已經向客戶提供了 840 多項新功能，而且我們還沒有完成。在本季度，我們提供了以下技術，讓我們的客戶的工作生活更美好。人力資源知識管理，為人力資源專業人員提供創建知識庫的能力，使員工能夠主動找到常見人力資源和合規問題的答案。人力資源知識管理通過我們引人入勝的員工體驗中心無縫地交付給員工。

Mobile Timesheet Management that provides managers with a fast and efficient way to view and edit and manage time information for their teams directly on their mobile devices and Integration Studio which provides self-service enterprise integration capabilities, enabling customers to build, deploy and manage the integration for Dayforce.

Mobile Timesheet Management 為管理人員提供了一種快速有效的方式，可以直接在他們的移動設備上查看、編輯和管理團隊的時間信息，Integration Studio 提供自助式企業集成功能，使客戶能夠構建、部署和管理集成對於 Dayforce。

Integration Studio automates many of the traditional manual integration reporting tasks that companies wrestle with and in doing so makes our customers more efficient. Further, it's the strength of our highly differentiated technology a single solution and continuous calculation engine that allows us to deliver innovation like Dayforce Wallet where we continue to see incredible market momentum.

Integration Studio 可自動執行許多公司難以處理的傳統手動集成報告任務，這樣做可以提高我們的客戶的效率。此外，正是我們高度差異化技術的優勢——單一解決方案和連續計算引擎，使我們能夠提供像 Dayforce Wallet 這樣的創新，我們繼續看到令人難以置信的市場勢頭。

Today, more than 1,340 customers have signed for the Dayforce Wallet and over 750 are live. Average registrations continue to trend at 45% of eligible users and the typical wallet user uses the wallet about 25x per month. These trends illustrate what our customers are telling us, which is that Dayforce Wallet is modern payroll. It's increasingly becoming an expectation from employees across organizations of all sizes and industries.

今天，已有超過 1,340 名客戶簽署了 Dayforce 錢包，其中超過 750 名已上線。符合條件的用戶的平均註冊率繼續保持在 45% 的趨勢，典型的錢包用戶每月使用錢包的次數約為 25 次。這些趨勢說明了我們的客戶告訴我們的，即 Dayforce 錢包是現代工資單。它越來越成為各種規模和行業的組織的員工的期望。

Recall, Dayforce Wallet is differentiated in that it allows employees to get paid when they want in real time with no additional cost to the employee or the employer, thereby improving employees' financial wellness by avoiding costly alternatives and while significantly reducing employee turnover and cost for our customers. All of this and more will be on full display at our annual customer conference held live for the first time in 3 years, starting next week, November 7 to 10 in Las Vegas. Reflective of our market demand, we have a high number of attendees across both customers and prospective customers, and we look forward to introducing you to what I believe will be another paradigm breaking innovation.

回想一下，Dayforce Wallet 的不同之處在於它允許員工在他們想要的時候實時獲得報酬，而不會給員工或雇主帶來額外成本，從而通過避免昂貴的替代方案來改善員工的財務狀況，同時顯著降低員工流動率和成本我們的顧客。從下週開始，即 11 月 7 日至 10 日，我們將在 3 年來首次現場直播的年度客戶大會上全面展示所有這些以及更多內容。反映我們的市場需求，我們有大量的客戶和潛在客戶參加，我們期待向您介紹我認為將是另一種打破範式的創新。

Before passing it over to Leagh to give you more details on our results, let me conclude by saying I'm very pleased to see us continuing to execute on all of our growth initiatives and making meaningful progress on our path to 30% adjusted EBITDA and operating cash flow generation. We have a long committed to being the market-leading global HCM company and this quarter is continued proof of that.

在將其傳遞給 Leagh 以向您提供有關我們結果的更多詳細信息之前，讓我最後說，我很高興看到我們繼續執行我們所有的增長計劃，並在我們實現 30% 調整後 EBITDA 和經營現金流的產生。我們長期以來一直致力於成為市場領先的全球 HCM 公司，本季度繼續證明了這一點。

Leagh, I'll turn it over to you.

Leagh，我會把它交給你。

Thank you, David. As David noted, we're continuing to execute on our growth levers, while at the same time demonstrating our ability to drive scale. In Q3, we saw continued momentum across all segments of our business from emerging to large enterprise and in every region in which we operate.

謝謝你，大衛。正如大衛指出的那樣，我們將繼續執行我們的增長槓桿，同時展示我們推動規模的能力。在第三季度，我們看到了從新興企業到大型企業的所有業務領域以及我們運營的每個地區的持續增長勢頭。

Year-to-date sales are up significantly year-on-year. This is driven primarily by net new customer wins and after 2 years of significant investment in the strength of our sales engine, we continue to see sellers productivity increase. For the 9-month period or year-to-date, deals above $1 million are up over 50% year-over-year, which is indicative of both our move up market and also the breadth and relevance of our offering in the mid market. Global traction continues with a stellar sales performance from our EMEA region in the third quarter, we're in -- we have strong momentum in the mid-market that's becoming consistently augmented by large global transactions with notable large enterprise EMEA-based customers.

年初至今的銷售額同比大幅增長。這主要是由於淨贏得新客戶，並且在對我們的銷售引擎實力進行了 2 年的重大投資之後，我們繼續看到賣家的生產力提高。在 9 個月期間或年初至今，超過 100 萬美元的交易同比增長超過 50%，這表明我們正在向高端市場發展，也表明我們在中端市場提供的產品的廣度和相關性.全球牽引力繼續保持第三季度我們 EMEA 地區的出色銷售業績，我們在 - 我們在中端市場擁有強勁勢頭，與基於 EMEA 的著名大型企業客戶的大型全球交易不斷增強。

Our fourth quarter pipeline is strong, and while our teams are focused on delivering in Q4, they are simultaneously building pipeline on the back of very strong market demand. I'd also like to note that amongst our customer base, 38% now take Dayforce suite, and we maintain a healthy back-to-the-base sales motion, which represents approximately 25% of year-to-date sales.

我們第四季度的管道很強大，雖然我們的團隊專注於在第四季度交付，但他們同時在非常強勁的市場需求的支持下構建管道。我還想指出，在我們的客戶群中，38% 現在使用 Dayforce 套件，並且我們保持健康的返廠銷售活動，約佔年初至今銷售額的 25%。

The customer wins listed in our earnings release illustrate the strong demand for Dayforce. As we've said all along, our platform scales and this is evidenced by several very large global customers selecting Dayforce as their platform of choice over the course of the last quarter.

我們的收益發布中列出的客戶贏得說明了對 Dayforce 的強勁需求。正如我們一直所說的那樣，我們的平台可以擴展，並且在上個季度期間，幾家非常大的全球客戶選擇 Dayforce 作為他們的首選平台就證明了這一點。

As already reported, one of the world's largest shipping and logistics companies chose Ceridian to provide Dayforce Payroll and Dayforce Wallet to modernize its payroll processes and to offer unique recruitment and retention benefits. At seasonal peak, we will handle approximately 700,000 employees on our platform for this single customer, and we have shifted to the critical work of getting them live successfully. As well in Q3, a leading U.K. retailer chose Ceridian to provide its full suite of Dayforce capabilities, including managed services to support 50,000 employees across Europe and Asia Pacific. And the largest flat-rolled steel company in North America selected Ceridian to provide its 25,000 employees with payroll and workforce management in a complex and highly regulated environment.

正如已經報導的那樣，世界上最大的航運和物流公司之一選擇 Ceridian 來提供 Dayforce Payroll 和 Dayforce Wallet，以實現其薪資流程現代化並提供獨特的招聘和保留福利。在季節性高峰期，我們將在我們的平台上為這個單一客戶處理大約 700,000 名員工，我們已經轉移到讓他們成功生活的關鍵工作上。同樣在第三季度，一家領先的英國零售商選擇 Ceridian 來提供其全套 Dayforce 功能，包括託管服務以支持歐洲和亞太地區的 50,000 名員工。北美最大的扁鋼公司選擇 Ceridian 為其 25,000 名員工提供在復雜且高度監管的環境中的工資單和勞動力管理。

In line with our growth lever strategy, we've delivered momentum in the global large enterprise while continuing to win in the mid-market and in selling back to the base. A U.S. financial services company with 8,000 employees globally chose to expand its Dayforce use to include payroll with workforce management already in place, the company was focused on streamlining its payroll processes with the help of Dayforce. The key differentiator in this win with Ceridian's modern technology that provides continuous calculation and the ability to increase payroll accuracy and efficiency. A global leader in packaging machinery manufacturing chose Dayforce as its unified human capital management solution with 5,000 employees in 27 countries, the company was looking for a single system to replace multiple platforms. With pay, time and HR in the single global Dayforce platform, the company will have better visibility into its data and can strengthen security and compliance.

根據我們的增長槓桿戰略，我們在全球大型企業中提供了動力，同時繼續在中端市場和回售基礎市場中取勝。一家在全球擁有 8,000 名員工的美國金融服務公司選擇擴大其 Dayforce 的使用範圍，以包括工資單和已經到位的勞動力管理，該公司專注於在 Dayforce 的幫助下簡化其工資單流程。此次獲勝的關鍵在於 Ceridian 的現代技術，該技術提供連續計算以及提高薪資準確性和效率的能力。包裝機械製造領域的全球領導者選擇 Dayforce 作為其在 27 個國家擁有 5,000 名員工的統一人力資本管理解決方案，該公司正在尋找一個單一系統來取代多個平台。通過單一全球 Dayforce 平台中的薪酬、時間和人力資源，該公司將更好地了解其數據，並可以加強安全性和合規性。

In addition to great sales momentum, we're now operating at 74.8% adjusted cloud recurring gross margin and have a clear path to greater efficiencies ahead as we continue to leverage our global footprint, international shared services centers and as we scale our platform. All of this operational scale is being driven while we continue to improve the core service metrics, our customers have come to expect from us. Customer retention rates remain best-in-class. Customer SAT scores, which we monitor daily continue to exceed expectations. Support tickets, which are a proxy for both customer and product efficiency continue to trend downward despite us supporting a record number of customers. Our SI ecosystem essential to our ability to grow and scale is now comprised of more than 170 partners, many of which are priming our customers' implementations of Dayforce globally.

除了強勁的銷售勢頭外，我們現在的調整後雲經常性毛利率為 74.8%，並且隨著我們繼續利用我們的全球足跡、國際共享服務中心和擴展我們的平台，我們有一條提高效率的明確道路。在我們繼續改進核心服務指標的同時，所有這些運營規模都得到了推動，我們的客戶已經開始期待我們。客戶保留率保持一流。我們每天監控的客戶 SAT 分數繼續超出預期。儘管我們支持創紀錄數量的客戶，但作為客戶和產品效率代理的支持票繼續呈下降趨勢。我們的 SI 生態系統對我們的發展和擴展能力至關重要，現在由 170 多個合作夥伴組成，其中許多合作夥伴正在為我們的客戶在全球範圍內實施 Dayforce 提供支持。

And looking internally, we are so proud of the way that we are growing and developing our people to reflect the customers that we serve and to ensure the long-term health of the business. As examples, more than 50% of our employees globally are female, 50% of our VP level and above our female. As a result of these stats and many more, we were welcomed earlier this year on to the Bloomberg Equality Index, and we have completely eradicated pay disparity inside our 4 walls.

從內部來看，我們為我們培養和培養員工以反映我們所服務的客戶並確保業務的長期健康發展的方式感到自豪。例如，我們在全球範圍內超過 50% 的員工是女性，50% 的副總裁級別及以上是女性。由於這些統計數據以及更多其他統計數據，我們在今年早些時候受到了彭博平等指數的歡迎，並且我們已經完全消除了我們 4 堵牆內的薪酬差距。

By every measure, this is a very healthy business, prime for continued success. And before I pass it on to Noemie, I'd just simply like to thank our customers and partners who have registered for our Insights conference, starting next week. We deeply appreciate customers like Coca-Cola and Blackstone and Danone North America and Fourteen Foods and so many others, taking the stage to showcase how Dayforce has made their people's work lives better while delivering the value and return on investment that is just so critical during these uncertain times that we are all navigating together.

從各方面來看，這是一項非常健康的業務，是持續成功的首要條件。在我將其傳遞給 Noemie 之前，我只想感謝註冊參加下週開始的 Insights 會議的客戶和合作夥伴。我們非常感謝 Coca-Cola、Blackstone、Danone North America 和 Fourteen Foods 等許多其他客戶，他們上台展示 Dayforce 如何讓他們的員工的工作生活更美好，同時提供價值和投資回報，這在這些不確定的時代，我們都在一起航行。

As I do each quarter, I would like to close with a broader thank you to our customers, to our shareholders and to our people. Thank you. Thank you for the faith that you have put in us while we make it our mission to deliver on that in the day-to-day and quarter after quarter and year-over-year. And with that, I'll simply turn it over to Noemie.

正如我在每個季度所做的那樣，我想以更廣泛的感謝來結束我們的客戶、我們的股東和我們的員工。謝謝你。感謝您對我們的信任，而我們的使命是在日常、逐季和逐年實現這一目標。有了這個，我就把它交給 Noemie。

Thank you, Leagh. I'd like to provide additional color on our third quarter performance and full year guidance, which is detailed in the press release published on our Investor Relations website. As David highlighted, our third quarter performance exceeded guidance across all revenue and profitability metrics despite approximately 200 basis points of FX headwinds to growth. Notably, at constant currency, Dayforce recurring revenue, excluding float, grew 27%. Cloud revenue grew 28%, and total revenue grew 25%.

謝謝你，莉。我想為我們的第三季度業績和全年指導提供額外的顏色，這在我們的投資者關係網站上發布的新聞稿中有詳細說明。正如 David 強調的那樣，我們第三季度的業績超過了所有收入和盈利指標的指導，儘管外匯逆風對增長造成了大約 200 個基點的影響。值得注意的是，按固定匯率計算，Dayforce 的經常性收入（不包括浮存金）增長了 27%。雲收入增長 28%，總收入增長 25%。

Adjusted EBITDA margin of 20.1%, exceeded our guidance range driven by revenue upside in the quarter as well as operational efficiencies and as illustrated by our adjusted cloud recurring gross margin of 74.8%, an expansion of 50 basis points. Third quarter operating cash flow of $52.1 million doubled versus last year, driven in part by operating margin expansion and float benefits.

調整後的 EBITDA 利潤率為 20.1%，超出了我們在本季度收入增長和運營效率的推動下的指導範圍，正如我們調整後的雲經常性毛利率 74.8% 所示，擴大了 50 個基點。第三季度運營現金流為 5210 萬美元，比去年翻了一番，部分原因是運營利潤率擴張和浮動收益。

Turning to updated fiscal year 2022 guidance. I want to reiterate that our growth is impacted by additional FX headwinds driven by a stronger U.S. dollar compared to what we previously anticipated. However, on a constant currency basis, we are raising the midpoint and narrowing our full year guidance range across all revenue metrics. For the full year, we now expect Dayforce recurring revenue ex float growth of 27% to 27.5%, Cloud revenue growth of 26% and total revenue growth of 23% at constant currency.

轉向更新的 2022 財年指南。我想重申，我們的增長受到美元強於我們之前預期的額外外匯逆風的影響。然而，在固定匯率的基礎上，我們正在提高中點並縮小我們所有收入指標的全年指導範圍。對於全年，我們現在預計 Dayforce 的經常性收入（浮動）增長 27% 至 27.5%，雲收入增長 26%，總收入增長 23%（按固定匯率計算）。

In reviewing Q4, I want to note that FX impact in the quarter is the greatest we've experienced year-to-date. On average, these FX headwinds impact our growth metrics by 300 to 400 basis points. Now the last point I want to make is we're raising our fiscal year 2022 adjusted EBITDA guidance to reflect revised float assumptions and flow-through of profitability upside in Q3, partially offset by increased sales and marketing spend in Q4, historically, our largest sales quarter.

在回顧第四季度時，我想指出本季度的外匯影響是我們今年迄今為止經歷過的最大影響。平均而言，這些外匯逆風影響我們的增長指標 300 至 400 個基點。現在我想說的最後一點是，我們正在提高 2022 財年調整後的 EBITDA 指引，以反映修訂後的流通量假設和第三季度盈利能力上行的流動，部分被第四季度銷售和營銷支出的增加所抵消，這是我們歷史上最大的銷售季度。

At the midpoint, full year adjusted EBITDA guidance margin of 19% represents a significant improvement year-over-year. As said before, we are committed to investing for future growth while continuing to drive scale and efficiencies across the organization.

在中點，全年調整後的 EBITDA 指導利潤率為 19%，同比顯著改善。如前所述，我們致力於為未來增長進行投資，同時繼續推動整個組織的規模和效率。

Now I'd like to turn the call back over to Matt to open it for Q&A.

現在，我想將電話轉回給 Matt，以打開它進行問答。

Our first question will come from Bryan Bergin of Cowen.

我們的第一個問題將來自 Cowen 的 Bryan Bergin。

Wanted to just start at a high-level demand question. Can you just give us a sense, have you really seen any impact to pipeline or the pace of buyer decision-making? Just given the increasing macro uncertainty. And I'm just curious if you could talk about client segment size and by geography, it would be helpful.

想從一個高層次的需求問題開始。你能給我們一個感覺嗎，你真的看到了對管道或買家決策速度的任何影響嗎？只是考慮到宏觀不確定性的增加。我很好奇你是否可以談談客戶群的規模和地理位置，這會很有幫助。

Alex, we haven't seen any impact as Leagh pointed out.-- Brian, we haven't seen any impact at all. And as Leagh pointed out, in Q3, we had very, very strong sales. Year-to-date, our sales are up significantly, the Q4 pipeline looks quite robust. Leagh, anything you would add?

Alex，正如 Leagh 指出的那樣，我們沒有看到任何影響。-- Brian，我們根本沒有看到任何影響。正如 Leagh 指出的那樣，在第三季度，我們的銷售額非常非常強勁。今年迄今為止，我們的銷售額大幅增長，第四季度的銷售渠道看起來非常強勁。 Leagh，你有什麼要補充的嗎？

No.

不。

Okay. That's great. And then a follow-up, just on the sales force. You talked a little bit about that. Can you dig in a little bit more on productivity levels, how you're feeling about sales force staffing here and just overall retention in the sales force?

好的。那太棒了。然後是關於銷售人員的跟進。你談到了一點點。您能否更深入地了解一下生產力水平、您對這裡的銷售人員配置以及銷售人員的整體保留情況的看法？

Retention has -- it's quite good. We're fully staffed. Sales productivity is up, as Leagh pointed out significantly over the last 2 years.

留存率非常好。我們人員齊備。正如 Leagh 在過去 2 年中顯著指出的那樣，銷售效率提高了。

Our next question comes from Mark Marcon from Baird.

我們的下一個問題來自 Baird 的 Mark Marcon。

Congratulations on the strong sales results. Wondering -- can you talk a little bit about the guidance? You clearly ended up beating here by a fairly material amount in the third quarter. Appreciate the FX. In the commentary, you mentioned Bureau being down 13% to 14%. Can you talk a little bit about what some of the drivers are there and how we should think about it?

祝賀您取得強勁的銷售業績。想知道——你能談談指導嗎？你顯然在第三季度以相當大的優勢擊敗了這裡。欣賞外匯。在評論中，你提到 Bureau 下降了 13% 到 14%。你能談談其中的一些驅動因素以及我們應該如何考慮它嗎？

Sure. On the Bureau side, if I look at the Ceridian payroll business, Bureau payroll business, which in Q3 was about $3 million, it drops down to about $2 million in Q4 that's largely just an end of life of one of our [respected] platforms. There was an accounting true-up on the Excelity side of about $1 million that benefited Q3. And so obviously, there's a drop going down into Q4.

當然。在 Bureau 方面，如果我看一下 Ceridian 工資單業務，Bureau 工資單業務，在第三季度約為 300 萬美元，在第四季度下降到約 200 萬美元，這在很大程度上只是我們[受人尊敬的]平台之一的生命週期結束. Excelity 方面有約 100 萬美元的會計調整，這使第三季度受益。很明顯，第四季度有所下降。

The other line items are largely consistent quarter-over-quarter. So it's mostly those 2 items. One is the movement of end of life in an old Ceridian platform and a onetime true-up for Excelity. Noemie, maybe if you can add anything?

其他項目的季度環比基本一致。所以它主要是那兩個項目。一個是舊 Ceridian 平台的生命終結運動和 Excelity 的一次調整。 Noemie，也許你可以添加任何內容？

Maybe a couple of other things on the Q4 guidance for revenue specifically. We have -- now we're not expecting to grow 18% to 19% at constant currency. As you noted, there's a bit of FX headwinds on a GAAP basis of about $5.7 million versus our previous guidance. On Dayforce recurring ex float, we maintained our 23% to 24% guidance range at constant currency. So that hasn't really changed from last time we issued guidance. Remember, in the second half of 2021, we had some employment level recovery from COVID, which gave us a little bit of a boost. So the good compare on the second half is a difficult one, but we're maintaining our growth rates for Dayforce recurring at slow. We're expecting a bit of float upside as a result of the continued sustained interest rate environment, which we've reflected in our top line guidance. .

也許還有其他一些關於第四季度收入指南的內容。我們有 - 現在我們預計不會以固定匯率增長 18% 至 19%。正如您所指出的，與我們之前的指導相比，按 GAAP 計算約有 570 萬美元的外匯逆風。在 Dayforce 經常性浮動匯率下，我們維持 23% 至 24% 的指導範圍（以固定匯率計算）。所以這與我們上次發布指南時並沒有真正改變。請記住，在 2021 年下半年，我們的就業水平從 COVID 中恢復了一些，這給了我們一點提振。因此，下半年的良好比較是困難的，但我們維持 Dayforce 的增長率緩慢。由於持續的利率環境，我們預計會出現一些浮動上行空間，這已反映在我們的頂線指引中。 .

And the other lines, David touched on them. The other thing I would say is Powerpay is still expected to decline single digit, but primarily due to FX headwinds. The core business on Powerpay is holding very well. We actually had a strong performance in Q3, and we'll continue to maintain that throughout the end of the year.

而其他的台詞，大衛觸及了它們。我要說的另一件事是，預計 Powerpay 仍將下降個位數，但主要是由於外匯逆風。 Powerpay 的核心業務表現良好。事實上，我們在第三季度表現強勁，我們將在今年年底繼續保持這種表現。

Great. And just to be clear, with regards to Ascender and Excelity in terms of new sales and client retention, those continue to go well, correct?

偉大的。需要明確的是，關於 Ascender 和 Excelity 在新銷售和客戶保留方面，這些繼續順利，對嗎？

They do, and we actually are still selling a Ascender in market quite successfully.

他們這樣做了，我們實際上仍在市場上非常成功地銷售 Ascender。

Our next question comes from Siti Panigrahi from Mizuho.

我們的下一個問題來自瑞穗的 Siti Panigrahi。

It's very impressive to see these large-sized deals like another 700,000 users deal. And in the last few quarters, you talked about 100,000, 50,000 users kind of deal. So what's really driving such demand lately? Is it something to do? Have you started seeing disruption by a legacy vendor? Or what's really driving such demand? And could you talk about pipeline of such large deals?

看到這些大型交易像另外 700,000 名用戶的交易一樣令人印象深刻。在過去的幾個季度裡，你談到了 100,000、50,000 用戶的交易。那麼最近真正推動這種需求的是什麼？有事可做嗎？您是否開始看到傳統供應商的中斷？或者是什麼真正推動了這種需求？你能談談這種大交易的管道嗎？

Well, again, Siti, thanks for that. Remember, this has been a journey over the last 3, 4 years, starting with the restructuring of the sales force, building out quite an extensive part in network and obviously, proving to the market through successful deployments that the technology can scale to very large organizations. Our global footprint has also helped differentiate us relative to the other players inside the actual market. So I'd say the combination of those 4 things are coming together, and we're seeing continued traction quarter-over-quarter into the very large enterprise.

好吧，再次感謝 Siti。請記住，這是過去 3、4 年的旅程，從重組銷售隊伍開始，在網絡中建立相當廣泛的部分，顯然，通過成功部署向市場證明該技術可以擴展到非常大的規模組織。我們的全球足跡也幫助我們在實際市場中與其他參與者區分開來。所以我想說這四件事的結合在一起，我們看到這個超大型企業的季度持續增長。

And then typically, December is year one of your big go-live month. How is the pipeline this year? How does it look like? And also, could you comment about some of these large deals you closed recently, when do you expect them to go live?

然後通常，12 月是您重要的上線月份的第一年。今年的管線如何？它看起來怎樣？此外，您能否評論一下您最近完成的一些大型交易，您預計它們什麼時候上線？

Sure. Well, we have a -- the large accounting firm that actually will go live in quarter, I believe, which is actually quite successful. So a very quick deployment of probably it must be about 7 or 8 months or well over 50,000 people. And as you know, we've had quite a few of those going line about the same time period for that. We do expect a strong go-live quarter inside Q4. And from a sales perspective, it's also our largest quarter, and we're expecting another successful sales quarter as well.

當然。好吧，我相信，我們有一家實際上將在本季度上線的大型會計師事務所，這實際上非常成功。因此，非常快速的部署可能需要大約 7 或 8 個月或超過 50,000 人。如您所知，我們已經有相當多的人在同一時間段內上線。我們確實預計第四季度會有一個強勁的上線季度。從銷售的角度來看，這也是我們最大的一個季度，我們也期待另一個成功的銷售季度。

Our next question comes from Bhavin Shah of Deutsche Bank.

我們的下一個問題來自德意志銀行的 Bhavin Shah。

We'll take our next question from Matthew Pfau of William Blair.

我們將接受威廉·布萊爾的馬修·普福的下一個問題。

Wanted to ask on the EBITDA margin improvement. Maybe you can just discuss more specifically what operating efficiencies you're seeing? And then in the future, what operating efficiencies, do you see that are going to get you to the 30% EBITDA target -- EBITDA margin target that you mentioned?

想詢問 EBITDA 利潤率的改善情況。也許您可以更具體地討論您看到的運營效率是多少？然後在未來，您認為什麼樣的運營效率會讓您達到 30% 的 EBITDA 目標——您提到的 EBITDA 利潤率目標？

Sure. We're quite focused as you've heard us speak about this over the last number of quarters. Firstly, we're committed to taking the cloud recurring gross margin from the 74.8% where it is currently to 80% by 2026. The areas that it's coming from as Leagh pointed out, we've seen efficiencies on the customer support and on the operational side coming from having more robust software and better processes in place. She actually mentioned that the number of support calls coming in is actually at a record low. Even though we've had many more customers live, which is one example. We've obviously used a lot of automation and technology to get to that particular type of point. .

當然。我們非常專注，因為您已經聽到我們在過去幾個季度中談論過這個問題。首先，我們致力於到 2026 年將雲經常性毛利率從目前的 74.8% 提高到 80%。正如 Leagh 指出的那樣，我們已經看到客戶支持和運營方面來自擁有更強大的軟件和更好的流程。她實際上提到，打進來的支持電話數量實際上處於歷史最低水平。儘管我們有更多的客戶在現場，這就是一個例子。我們顯然已經使用了大量的自動化和技術來達到那個特定類型的點。 .

On the actual sales and marketing side, P&T side, the goal (inaudible) to hold them relatively flat as a percentage of revenue as we continue to expand. And a lot of the actual margin comes from 2 trends of recurring.

在實際的銷售和營銷方面，P&T 方面，目標（聽不清）隨著我們繼續擴張，使它們佔收入的百分比保持相對平穩。很多實際利潤來自 2 個經常性趨勢。

The first is every year, as you know, the percentage of total revenue that comes from recurring revenue goes up by about 1%. And the second part that happens is the percentage of recurring revenue that come from Cloud versus the Bureau side. Recall that the Cloud has a 74.8% margin, and the Bureau currently has got a 61% margin. As that shifts more towards the Cloud recurring side, it lifts up the overall recurring margin of the actual business. By 2026, we expect that movement to be quite significant, and that drives quite a lot of the improvements.

首先是每年，如您所知，來自經常性收入的總收入百分比上升約 1%。發生的第二部分是來自云與局方的經常性收入的百分比。回想一下，Cloud 有 74.8% 的利潤率，而 Bureau 目前有 61% 的利潤率。隨著它更多地轉向雲經常性方面，它提高了實際業務的整體經常性利潤率。到 2026 年，我們預計該運動將非常重要，並且會推動大量改進。

And our next question comes from Dan Jester of BMO.

我們的下一個問題來自 BMO 的 Dan Jester。

Maybe just to expand on that margin comment, David. Can you just -- it feels like a lot of that is organic, the natural evolution of the business. If we do see a slowdown next year? Are there levers you could pull to sort of accelerate that? Or is that sort of a linear progression as we get to 2026 on the margin opportunity?

也許只是為了擴展邊距評論，戴維。你能不能——感覺很多都是有機的，是業務的自然演變。如果明年我們確實看到經濟放緩？有沒有你可以拉動的槓桿來加速它？或者當我們到 2026 年時，這種線性進展是有機會的嗎？

Our businesses are highly plannable business, as you can see by our guidance for the second half of the year as Noemie spoke about that when we expect about the Q2 results, we said we would grow, the Dayforce recurring by about 25% in the second half, and it remains the same. So we get tremendous visibility, which means we can also control the business quite well. And so if there is a slowdown, which, again, we don't see that in any of the trends in the market, in the pipeline, the buying decisions to go live, et cetera. But if it yes, we can obviously improve the profitability quicker.

我們的業務是高度可規劃的業務，正如您在我們下半年的指導中看到的那樣，Noemie 談到當我們預期第二季度的結果時，我們說我們會增長，Dayforce 在第二季度重複出現約 25%一半，還是一樣。所以我們獲得了巨大的知名度，這意味著我們也可以很好地控制業務。因此，如果出現放緩，我們再一次在市場的任何趨勢、管道中、購買決定上線等方面都看不到這一點。但如果是，我們顯然可以更快地提高盈利能力。

And if you recall, if you go back to Q1, you saw us not being shy about making operational changes to drive efficiencies. And furthermore, if you go back to the acquisitions that we did in APJ in Asia, part of our thesis was that we could leverage the global footprint of those organizations to drive efficiency through our business. And we are doing that, whether it be on the product and technology side, the customer support side, the implementation side, finance, G&A, et cetera, we're taking advantage of the lower footprint -- cost footprint in those offices.

如果你還記得，如果你回到第一季度，你會看到我們並不羞於進行運營變革以提高效率。此外，如果你回到我們在亞洲 APJ 進行的收購，我們的部分論點是我們可以利用這些組織的全球足跡來提高我們業務的效率。我們正在這樣做，無論是在產品和技術方面、客戶支持方面、實施方面、財務、G&A 等方面，我們都在利用較低的足跡——這些辦公室的成本足跡。

Great. That's really helpful. And then just a follow-up on the Wallet. I appreciate providing the detail here about the pace of customer go lives -- it's -- if I look back over the past year, it's been somewhere between 100 to 135 a quarter. Are we now at a pretty stable pace for go lives? Or is there a possibility that we see Wallet further accelerate on a go-live basis from here?

偉大的。這真的很有幫助。然後只是對錢包的跟進。我很高興在這裡提供有關客戶上線速度的詳細信息——它是——如果我回顧過去一年，它每季度在 100 到 135 之間。我們現在的生活節奏是否相當穩定？或者我們是否有可能看到錢包從這裡開始在上線的基礎上進一步加速？

I think it's a constant stream. If I compare it, we've effectively got about 500, 600 accounts in backlog for go live. And so it's just a matter of activating those particular accounts. And then once we do that, there's a bit of a time when we go from taking them live until we get the registrations and the active card users for each of the different clients. When I look at it, we do probably around 700 to 800 registrations on an employee basis per day, and that has been somewhat constant over the last little while.

我認為這是源源不斷的。如果我比較一下，我們實際上已經有大約 500、600 個客戶積壓上線。因此，這只是激活這些特定帳戶的問題。然後一旦我們這樣做了，我們就會有一段時間從讓他們上線到我們為每個不同的客戶獲得註冊和活躍的卡用戶。當我看到它時，我們每天大概會根據員工進行大約 700 到 800 次註冊，並且在過去的一段時間裡這一數字一直保持不變。

We'll take our next question from Mark Murphy of JPMorgan.

我們將從摩根大通的馬克墨菲那裡接受下一個問題。

So David, in your script, you mentioned this focus on quantifiable value. And I'm interested in whether you think the value proposition of the Wallet it's actually going to resonate stronger if we do get into an economic slowdown, perhaps you'd have the typical business with more employees feeling a little strain and maybe wanting to access their pay sooner, maybe there'd be a little extra catalyst to keep moving that registration percentage higher?

所以大衛，在你的腳本中，你提到了對可量化價值的關注。我感興趣的是，如果我們確實陷入經濟放緩，你是否認為錢包的價值主張實際上會產生更強烈的共鳴，也許你會有更多員工感到有點壓力並且可能想要訪問的典型業務他們的工資會更快，也許會有一些額外的催化劑來繼續提高註冊率？

So Mark, a few things. Wallet today has become really the same as modern payroll that I don't think there's any organization out there that's looking for a modern payroll system that doesn't expect to have Wallet embedded in the solution. From a financial wellness perspective, it is definitely a huge benefit to people through the flexibility that the Wallet provides, especially that given that we do not charge the employees any fees to use the Wallet in North America that is paid through the interchange. The benefit that we've seen from a quantifiable value perspective for our customers is that the voluntary attrition rates have improved by more than 20% at those organizations that have rolled out the Wallet which is a tremendous savings to those organizations and cost between $5,000 to $10,000 to replace a person at a typical organization.

馬克，有幾件事。今天的 Wallet 已經變得與現代工資單一樣，我認為沒有任何組織正在尋找不希望在解決方案中嵌入 Wallet 的現代工資單系統。從財務健康的角度來看，錢包提供的靈活性絕對會給人們帶來巨大的好處，尤其是考慮到我們不向員工收取任何通過交換支付的北美使用錢包的費用。從可量化的價值角度來看，我們為客戶帶來的好處是，在那些推出電子錢包的組織中，自願離職率提高了 20% 以上，這對這些組織來說是一筆巨大的節省，成本在 5,000 美元到 5000 美元之間。 10,000 美元用於更換一個典型組織的人員。

So a huge savings, if you can say, hundreds of not thousands of people leaving our organization. We're seeing very, very high attachment rates on to new payroll customers and I don't expect that to change.

如此巨大的節省，如果你可以說，數百而不是數千人離開我們的組織。我們看到新薪資客戶的依戀率非常非常高，我預計這種情況不會改變。

Okay. Great. And as a quick follow-up, again, I clearly understand you're not seeing -- it sounds like you're seeing health, which is impressive, and you're not seeing macro issues. But just to check on it, if the macro does end up manifesting amongst some of your customers at some point in this cycle, do you think they're going to be able to find the resources and the bandwidth to keep the Dayforce go-lives, kind of running on time. Because part of the reason I ask is that it sounds like they are. And I believe you have better capabilities than ever to be migrating the data and providing that deployment help and then providing all the support. So I'm just wondering if you think you're going to be actually in a better place there, for instance, then when the pandemic hit.

好的。偉大的。作為快速跟進，我再次清楚地知道你沒有看到——聽起來你看到了健康，這令人印象深刻，而且你沒有看到宏觀問題。但只是檢查一下，如果宏確實最終在這個週期的某個時刻出現在你的一些客戶中，你認為他們是否能夠找到資源和帶寬來保持 Dayforce 上線，有點準時。因為我問的部分原因是聽起來他們是。而且我相信您比以往任何時候都更有能力遷移數據並提供部署幫助，然後提供所有支持。所以我只是想知道你是否認為你實際上會在一個更好的地方，例如，當大流行來襲時。

From the onset of the Dayforce, the goal always has been to make every employees think like a CFO. So very much a strong, strong focus on return on investment to our customers. In an economy where people may be nervous or more focused on cost and efficiency. Our messaging really resonate nicely. Because as you know, we ranked #1 for payroll, #1 for client compliance by Gartner. We have I believe the fastest return on investment in market, which our customers have spoken about, I think Forrester and others have done case studies on that as well.

從 Dayforce 成立之初，目標就是讓每個員工都像 CFO 一樣思考。因此，我們非常重視對客戶的投資回報。在人們可能緊張或更關注成本和效率的經濟中。我們的信息確實引起了很好的共鳴。因為如您所知，我們在 Gartner 的薪資方面排名第一，在客戶合規方面排名第一。我相信我們的客戶已經談到了市場上最快的投資回報，我認為 Forrester 和其他人也對此進行了案例研究。

So our messaging resonates very, very nicely. We've become quite efficient on the implementation side. Earlier [day, I] mentioned that one of the large accounting firms, probably the leader in the world when it comes to taxes and such, is going live, I believe, with the product in Q4, and that I believe was the Q1 sale.

所以我們的信息非常非常好地產生了共鳴。我們在實施方面變得非常高效。早些時候 [天，我] 提到一家大型會計師事務所，在稅收等方面可能是世界領先者，我相信，第四季度的產品將上線，我相信是第一季度的銷售.

So you're talking about [$100] a year in terms of go live and obviously, tremendous complexity around that. So I do believe that our customers will continue with the implementations will continue to take in life because of the savings that we're able to get from our system. And in addition, the compliance side does lower their liability and payroll and workforce compliance and HR compliant today are becoming more and more difficult.

因此，就上線而言，您談論的是每年 [100 美元]，顯然，這涉及到巨大的複雜性。因此，我確實相信，由於我們能夠從我們的系統中獲得的節省，我們的客戶將繼續實施，並將繼續投入使用。此外，合規方面確實降低了他們的責任和工資單，而今天的勞動力合規和人力資源合規變得越來越困難。

The only other thing I would add is that we aren't constrained either. So we spent the last couple of years as you well know, building out an SI ecosystem. And so there are far more hands in the market to be able to bring our customers live.

我要補充的另一件事是我們也不受限制。因此，正如您所知，我們在過去的幾年裡建立了一個 SI 生態系統。因此，市場上有更多的人可以讓我們的客戶活下來。

Our next question comes from Robert Simmons of D.A. Davidson.

我們的下一個問題來自 D.A. 的羅伯特西蒙斯。戴維森。

How much of a catalyst do you think that the inside conference coming back in person is going to be for you guys, not so much this year, obviously, but for next year?

你認為親自回來的內部會議對你們有多大的催化劑作用，顯然不是今年，而是明年？

First, we're very excited with the Insights Conference. When we look at a number of prospective customers that are attending, the levels are very, very high. I would think that there's probably close to $100 million of recurring revenue in terms of opportunities across the prospective customers that are attending. And in addition, we expect very healthy attendance from our customers. The agenda looks fantastic. The customer speakers, I think, are wonderful as well. And as you know, we've always seen a high conversion rate of prospective customers to live customers. So it should be a very good conference. And hopefully, we'll see you there. Leagh, anything you want to add on that?

首先，我們對 Insights Conference 感到非常興奮。當我們查看許多正在參加的潛在客戶時，他們的水平非常非常高。我認為，就參加的潛在客戶的機會而言，可能有近 1 億美元的經常性收入。此外，我們希望客戶的出席率非常高。議程看起來棒極了。我認為客戶演講者也很棒。如您所知，我們一直看到潛在客戶向實際客戶的高轉化率。所以這應該是一個非常好的會議。希望我們會在那裡見到你。 Leagh，你還有什麼要補充的嗎？

I mean I think all I would say is it does 2 things. It accelerates deals in the current quarter, which is important, and it helps us build pipeline for the future year, which is also important. So what we accomplished in 3 or 4 days is really meaningful to the next year and to the success of closing out this one.

我的意思是我想我只想說它做了兩件事。它加速了本季度的交易，這很重要，它幫助我們為未來一年建立管道，這也很重要。因此，我們在 3 或 4 天內完成的工作對明年和成功結束這一年都非常有意義。

Got it. That makes sense. And then I guess just kind of the competitive landscape, are you seeing anything you call out from the [company] that's different in terms of pricing, marketing, sales approach, product. Anything about that?

知道了。這就說得通了。然後我想這只是一種競爭格局，你是否看到你從 [公司] 提出的任何在定價、營銷、銷售方法、產品方面不同的東西。有什麼事嗎？

I mean, Dave is looking at me. I would not say that there's a demonstrable difference the competitive landscape. What I would say is we were very pleasantly surprised by the Gartner Magic Quadrant and the fact that we are now alone as the single HR-only vendor in the leadership quadrant, which I think will make a demonstrable difference going forward with respect to the way that we compete.

我的意思是，戴夫在看著我。我不會說競爭格局存在明顯差異。我要說的是，我們對 Gartner 魔力像限感到非常驚喜，事實上我們現在是領導象限中唯一一家僅提供人力資源的供應商，我認為這將在未來的發展方式方面產生明顯的不同我們競爭。

And our next question comes from Kevin McVeigh of Credit Suisse.

我們的下一個問題來自瑞士信貸的凱文麥克維。

Noemie, I think you'd referenced some incremental sales and marketing in the fourth quarter. Is there any way to quantify what that incremental investment was relative to initial expectations?

Noemie，我想你在第四季度提到了一些增量銷售和營銷。有什麼方法可以量化相對於最初預期的增量投資？

As you know, we're having -- we just talked about our Insights Conference that we're hosting next week. So that's definitely part of the investments we're making in Q4. We're also increasing, obviously, our travel capabilities for our sellers and implementation teams because we want them in the field talking to customers in the fourth quarter, which is our historically largest quarter.

如您所知，我們正在 - 我們剛剛談到了下週將舉辦的洞察會議。所以這絕對是我們在第四季度進行的投資的一部分。顯然，我們也在增加我們的銷售人員和實施團隊的旅行能力，因為我們希望他們在第四季度現場與客戶交談，這是我們歷史上最大的季度。

So there's a little bit of incremental travel as well, which was expected and which we're supporting fully. So those are the main items. But the rest in terms of adjusted EBITDA guidance for the full year, we're flowing through the excess profitability from Q3 and the additional float upside, and we're continuing to make investments to fuel our largest sales quarter.

所以也有一些增量旅行，這是預期的，我們全力支持。所以這些是主要項目。但就全年調整後的 EBITDA 指引而言，我們正在經歷第三季度的超額盈利和額外的浮動上行空間，我們將繼續進行投資以推動我們最大的銷售季度。

Great. And then just a quick follow-up on that would be, what type of rate assumptions are assumed in the Q4?

偉大的。然後只是快速跟進，第四季度假設了哪種類型的利率假設？

Yes. We're assuming the current rate environment that you're referring specifically to the recent Fed rate hike that's actually embedded. But remember, because our portfolio is laddered and we have half of it invested in core, the effect will be throughout 2023 and beyond. And so that's -- the float guidance embeds the current rate environment and continued ladder of our portfolio.

是的。我們假設您所指的當前利率環境是指最近美聯儲加息，而這實際上是內在的。但請記住，由於我們的投資組合是階梯式的，而且我們有一半投資於核心業務，因此影響將持續到 2023 年及以後。這就是 - 浮動指導嵌入了當前的利率環境和我們投資組合的持續階梯。

(inaudible) answer the question, we ended off Q3 with the float balance of -- sorry, of a rate of 2.19%, and we would expect it to be about 2.7% in the fourth quarter.

（聽不清）回答問題，我們在第三季度結束時的浮動餘額為 - 抱歉，利率為 2.19%，我們預計第四季度約為 2.7%。

Our next question comes from Michael Turrin of Wells Fargo.

我們的下一個問題來自富國銀行的 Michael Turrin。

Our next question comes from Alex Zukin of Wolfe.

我們的下一個問題來自 Wolfe 的 Alex Zukin。

Guys, can you hear me?

伙計們，你能聽到我說話嗎？

Yes, we can hear you.

是的，我們能聽到你的聲音。

Perfect. I guess maybe just 2 or 3 for me. First, I wanted -- there was a deal that you mentioned -- that you talked about in the press release, the diversified metal solutions provider that you guys was 11,000 employees, 40 unique operating companies with multiple products. And that was led by an SI partner. I guess could you talk a little bit more about that deal? What was unique about it? What was interesting, was this a global SI or a strategic partner.

完美的。我想對我來說可能只有 2 或 3 個。首先，我想——你提到了一筆交易——你在新聞稿中談到，你們多元化的金屬解決方案提供商是 11,000 名員工，40 家擁有多種產品的獨特運營公司。這是由 SI 合作夥伴領導的。我想你能多談談這筆交易嗎？它有什麼獨特之處？有趣的是，這是全球 SI 還是戰略合作夥伴。

And the reason I ask about that is, again, it seems like a highly complex deal, not just a single module for a big company, but really an entire suite. And so I wanted to just understand a little bit of is that, do you have more of those in the pipeline? And I've got a quick follow-up.

我問這個的原因是，再一次，這似乎是一個非常複雜的交易，不僅僅是一個大公司的單個模塊，而是一個完整的套件。所以我只想了解一點，你有更多的人在籌備中嗎？我有一個快速的跟進。

Yes, it's a great question. Why don't I grab it and just say, you're right. First of all, I think it was 12,000 employees. I believe there were 315 locations, 12 countries. We replaced 35 separate disparate solutions across to your point, 50 unique operating companies. And yes, it was a full suite, and it was deployed by a partner.

是的，這是一個很好的問題。為什麼我不抓住它然後說，你是對的。首先，我認為是 12,000 名員工。我相信有 315 個地點，12 個國家。我們替換了 35 個獨立的不同解決方案，涵蓋 50 家獨特的運營公司。是的，它是一個完整的套件，由合作夥伴部署。

And you asked I think the subtext is, are our partners capable of doing that? And the answer is, yes, they are. And the partner who did this deployment is actually a long-standing partner. They've been with us for some time. They would be on the further end of the learning curve. So this isn't a brand-new partner to our ecosystem, and they were able to bring that customer live successfully in record time. The question is, is there more of those out there? And the answer is yes, many. And you can imagine that it's our ambition, as you well know, over the course of the next couple of years to shift significantly in that direction. And so what we're doing in many cases, is we're solving in other partners into our projects in order to be able to learn and develop at rapid speed so that we can do even more of that over time.

你問我認為潛台詞是，我們的合作夥伴有能力做到這一點嗎？答案是，是的，他們是。而做這個部署的合作夥伴其實是一個長期的合作夥伴。他們已經和我們在一起一段時間了。他們將處於學習曲線的另一端。所以這不是我們生態系統的全新合作夥伴，他們能夠在創紀錄的時間內讓客戶成功上線。問題是，那裡還有更多嗎？答案是肯定的，很多。你可以想像，正如你所知，我們的雄心壯志是在接下來的幾年裡朝著這個方向做出重大轉變。因此，在許多情況下，我們正在做的是，我們正在將其他合作夥伴解決到我們的項目中，以便能夠快速學習和發展，以便我們可以隨著時間的推移做更多的事情。

Perfect. I guess, maybe also just a broader question. So maybe for David, I know we go back and forth on this. I wish we could get bookings from you guys, particularly when it sounds like they are very, very good. Absent that, is there a way to kind of qualify what you're now -- what you saw in Q3, the incremental opportunity that you see in Q4? And more specifically, again, you're putting up really strong bookings performance in the backdrop of a very, let's call it, scary macroeconomic environment. You're not seeing demand cycles lengthen or anything yet. I want to understand why? And more specifically, you've been through these types of economic cycles before in various companies.

完美的。我想，也許也只是一個更廣泛的問題。所以也許對大衛來說，我知道我們在這個問題上來回走動。我希望我們能從你們那裡得到預訂，尤其是當他們聽起來非常非常好時。如果沒有，有沒有辦法確定你現在的情況——你在第三季度看到的，你在第四季度看到的增量機會？更具體地說，在我們稱之為非常可怕的宏觀經濟環境的背景下，您再次實現了非常強勁的預訂表現。您還沒有看到需求週期延長或任何事情。我想明白為什麼？更具體地說，你之前在不同的公司經歷過這些類型的經濟周期。

Are you just going to see it later? Is there something that is making this space more resilient given the backdrop of coming out of COVID and these deals getting delayed. How do you see this playing out, not just this quarter but over the course of the next year?

你只是要稍後再看嗎？鑑於 COVID 的出現和這些交易被推遲的背景，是否有什麼東西可以使這個空間更具彈性。您如何看待這種情況，不僅是本季度，而且是在明年的整個過程中？

So that's a few things. First pandemic world is much more global than it was beforehand. The work from here is now quickly becoming work from anywhere. And so we're finding the requirement for global capabilities to be greater than before. And there isn't anyone else really in market that has a single system where you can handle the construct of a global employee record with native payroll capability native workforce management capability built into the actual product. And so that's driving a lot of the decisions that we see on the enterprise side where customers are coming to us because I don't think there are other really viable solutions in market.

所以這是幾件事。第一次大流行世界比以前更加全球化。從這裡開始的工作現在正迅速變成在任何地方工作。因此，我們發現對全球能力的需求比以前更大。並且市場上沒有其他任何人真正擁有一個單一的系統，您可以在其中處理全球員工記錄的構造，並在實際產品中內置本地工資單功能和本地勞動力管理功能。因此，這推動了我們在客戶來找我們的企業方面看到的許多決策，因為我認為市場上沒有其他真正可行的解決方案。

In the majors market, which goes for us up to 3,500 employees and even the enterprise space, which goes up to 10,000 employees. There is a significant cost savings when you move to a single application because you don't have to pay for the database, the infrastructure, the employee record across each of the different modules that all come together. So there's tremendous efficiencies just from a subscription payment perspective. And then from an operation of the system, it's obviously much more efficient and much more natural for people to use it. And I think that's driving a lot of the decisions inside the market.

在主要市場，我們有多達 3,500 名員工，甚至企業空間，也有多達 10,000 名員工。當您遷移到單個應用程序時，可以節省大量成本，因為您不必為跨每個不同模塊的數據庫、基礎設施和員工記錄付費。因此，僅從訂閱支付的角度來看，效率就非常高。然後從系統的運行來看，顯然效率高很多，人用起來也自然很多。我認為這推動了市場內部的許多決策。

And then finally, we always have been the strongest in compliance. And in many cases, customers come to us because they've had issues with other vendors in the space about paying people accurately. And we obviously do that very well. In fact, that inside is one of the features that Joe's going to show is now an add-on to the employee hardware there is a compliance dashboard, that provides information by jurisdiction about what the changes are in terms of compliance and payments requirements and such. So I think that's a very big part of it.

最後，我們始終是合規性最強的。在許多情況下，客戶來找我們是因為他們與該領域的其他供應商在準確支付人員方面存在問題。我們顯然做得很好。事實上，裡面是喬要展示的功能之一，現在是員工硬件的附加組件，有一個合規儀表板，按管轄區提供關於合規和支付要求等方面的變化的信息.所以我認為這是其中很大一部分。

And we'll take our next question from Samad Samana from Jefferies.

我們將從 Jefferies 的 Samad Samana 那裡回答下一個問題。

Sorry about that. This is Jordan Boretz on for Samad. David, Noemie, Leagh, congrats on the strong results. So I wanted to maybe touch on the bookings mix. So Leagh, you noted that in the prepared remarks. The number of greater than $1 million deals are up 50%, and obviously, that's extremely impressive. So could you maybe give us some color on how the bookings mix by customer segments or maybe mid-market versus enterprise trended this quarter versus the prior quarter?

對於那個很抱歉。這是 Samad 的 Jordan Boretz。 David、Noemie、Leagh 對取得的優異成績表示祝賀。所以我想談談預訂組合。 Leagh，你在準備好的發言中提到了這一點。超過 100 萬美元的交易數量增加了 50%，顯然，這非常令人印象深刻。那麼，您能否給我們一些關於本季度與上一季度的客戶群或中端市場與企業趨勢的預訂組合的顏色？

Sure. I mean maybe what I'll say, just to pick up the point that you put down is that it is true that a number of million dollar deals are up 50% this year. I would just underscore that those are deals in the upmarket, so let's call it, enterprise and large enterprise. But we're also seeing a significant number of $1 million-plus PEPM deals in the mid-market as customers buy a full suite. So I just put a finer point on that. With respect to momentum, I would say, we are categorically seeing it everywhere. We're seeing it in our emerging market. We're seeing it in our mid-market, that's in North America, EMEA and APJ.

當然。我的意思是，也許我要說的是，只是為了強調你提出的觀點，今年確實有數百萬美元的交易增加了 50%。我只是強調那些是高端市場的交易，所以我們稱之為企業和大型企業。但隨著客戶購買全套產品，我們也看到中端市場有大量超過 100 萬美元的 PEPM 交易。所以我只是對此提出了一個更好的觀點。關於勢頭，我想說，我們在任何地方都可以明確地看到它。我們在新興市場看到了這一點。我們在北美、EMEA 和 APJ 的中端市場看到了它。

We're seeing it in the enterprise, which to David's point, is between 3,500 and 10,000. And we're seeing it in the large enterprise, above 10,000. There is not 1 segment that we operate in, where we are seeing a slowdown or any degradation in our pipeline momentum.

我們在企業中看到它，就 David 而言，它在 3,500 到 10,000 之間。我們在超過 10,000 人的大型企業中看到了這一點。在我們運營的任何一個細分市場中，我們都沒有看到我們的管道勢頭放緩或任何退化。

Great. That's helpful color there. David, I want to ask you a quick question on M&A. So the last acquisition that you guys closed was out of HCM in December last year. And broadly tech valuations have come in quite a bit since then. So has there been any change in how you're thinking about M&A? And maybe for future M&A, are there any specific regions you're targeting more so than others globally?

偉大的。那是有用的顏色。大衛，我想問你一個關於併購的簡短問題。所以你們完成的最後一次收購是去年 12 月從 HCM 收購的。從那以後，科技股的估值總體上有了很大的提升。那麼，您對併購的看法有什麼變化嗎？也許對於未來的併購，是否有任何特定地區比全球其他地區更受關注？

There's been no change. In terms of M&A strategy, obviously, I think there's still a bit of a lag between the expectations of privately held companies versus the public markets. And we don't have any burning buyers we have to jump on. So we're quite patient to wait and see what comes out. Areas that we always see or inquisitive would be around the DAC countries into the Nordics, where we have a bit of white space at the moment. We all, by the way, launching German payroll in 2023, and we have a huge backlog of customers for the German payroll, which is actually quite exciting.

沒有任何變化。就併購戰略而言，顯然，我認為私營公司的預期與公開市場的預期之間仍有一些差距。而且我們沒有任何必須跳槽的急切買家。所以我們非常耐心地等待，看看會發生什麼。我們經常看到或好奇的區域將圍繞 DAC 國家進入北歐，目前我們在那裡有一些空白。順便說一句，我們都在 2023 年推出德國工資單，我們有大量客戶積壓德國工資單，這實際上非常令人興奮。

Congrats on the strong quarter.

祝賀強勁的季度。

Our next question comes from Steve Enders of Citi.

我們的下一個問題來自花旗銀行的 Steve Enders。

I want to ask some more on the channel initiative. I think you called out some good opportunities that you were brought in from channel partners. I guess how much is the channel at this point bringing you into opportunities versus more in a fulfillment engine for you?

我想多問一些關於頻道主動性的問題。我認為你提出了一些從渠道合作夥伴那裡帶來的好機會。我想在這一點上，渠道為您帶來了多少機會，而不是為您提供更多的實現引擎？

It's a great question. I would say, plus or minus 50% of our pipeline is influenced through partners, and that's partners all kinds, that's system integrators, that's brokers, but they're touching a lot of our pipeline now. And what we're seeing when they do that is that our win rates in that segment of the pipeline are increasing quite significantly because the pipeline is better qualified.

這是一個很好的問題。我會說，正負 50% 的管道受到合作夥伴的影響，這是各種合作夥伴，系統集成商，經紀人，但他們現在正在接觸我們的很多管道。當他們這樣做時，我們看到的是，我們在該管道部分的獲勝率正在顯著增加，因為管道質量更高。

Okay. Got you. That's helpful. And then maybe just another quick question on the guide here. Just in terms of EBITDA and how you're thinking about float income kind of flowing in there. I think you mentioned in the past that we're kind of thinking about 50% of float up side, going to the bottom line. Is there any change in and how you're thinking about utilizing the float upside here? And then how you're kind of thinking about kind of further investments kind of beyond 4Q there as well.

好的。明白了這很有幫助。然後可能只是關於此處指南的另一個快速問題。就 EBITDA 而言，以及您如何看待其中流動的浮動收入。我想你過去提到過，我們正在考慮 50% 的浮動，到達底線。有什麼變化嗎？你是如何考慮利用這裡的浮動優勢的？然後你是如何考慮第四季度以外的進一步投資的。

No, there's no change. we've been quite focused, as you know, on what -- when we look towards 2026, we see about $2 billion of top line, [8%] recurring margins and about 30% EBITDA. We also believe that operating cash flow will be very close to the EBITDA numbers, adjusted EBITDA number as well. .

不，沒有變化。如您所知，我們一直非常關注什麼——當我們展望 2026 年時，我們看到大約 20 億美元的收入、[8%] 經常性利潤率和大約 30% 的 EBITDA。我們還認為，經營現金流量將非常接近 EBITDA 數字，調整後的 EBITDA 數字也是如此。 .

Regarding float, we invest the float in a AAA-rated fund, which means that we are quite limited in the types of securities that we can invest in. It's largely government and AAA-rated corps and there are certain rules around the amount of levering that you can do as well.

關於float，我們是把float投資在aaa級的基金，也就是說我們可以投資的證券種類比較有限，主要是政府和aaa級的公司，槓桿的多少有一定的規定你也可以這樣做。

We put about 50% of the balances into a liquidity portfolio. And there, we typically get the overnight. And the other 50% goes into a portfolio that we typically lever out about 2.5 years. And so it gives us -- this is a little bit of time before we get the full impact of the raise of the interest rates. But if they do come down, which I expect they will come down at some point, it takes longer for that to actually kind of wind down as well. The rates that we're in at the moment, I would call that more than normalized rate environment. quite similar to prior to 2008. So -- and it's always been part of the operating model, if you like, of our type of business.

我們將大約 50% 的餘額放入流動性投資組合。在那裡，我們通常會過夜。另外 50% 進入我們通常槓桿化大約 2.5 年的投資組合。所以它給了我們 - 在我們獲得加息的全面影響之前還有一點時間。但如果它們確實下降了，我預計它們會在某個時候下降，那麼它也需要更長的時間才能真正平息下來。我們目前所處的利率，我認為這不僅僅是正常化的利率環境。與 2008 年之前非常相似。因此 - 如果您願意，它一直是我們業務類型的運營模式的一部分。

In terms of investments, we continually invest heavily in product and technology. If you look at the year-over-year investment growth that we've made in products you can actually see what we're actually delivering from that investment as well. Sales and marketing, we continue to invest in sellers. Q4, we have the investment in our Insights Conference, which is probably about a $6 million investment in that particular event alone. But we're very mindful of making sure that we do get return on all the investments.

在投資方面，我們不斷加大對產品和技術的投入。如果您查看我們在產品方面的同比投資增長，您實際上可以看到我們從該投資中實際交付的內容。銷售和營銷，我們繼續投資於賣家。第 4 季度，我們對 Insights Conference 進行了投資，僅對該特定事件的投資就可能約為 600 萬美元。但我們非常注意確保我們確實獲得所有投資的回報。

Our next question comes from Raimo Lenschow of Barclays.

我們的下一個問題來自巴克萊銀行的 Raimo Lenschow。

David, I wanted to go back to one of the earlier questions when people were questioning demand and why demand for HR. What are you seeing post pandemic? You mentioned compliance already, et cetera. But like talking to people in the market, other vendors as well. It does seem like HR got elevated as a pain point post the pandemic and hence, it feels like it's more strategic again. I don't know if you could see that as well as you comment on that one.

大衛，當人們質疑需求以及為什麼需要人力資源時，我想回到之前的一個問題。大流行後你看到了什麼？您已經提到了合規性等等。但喜歡與市場上的人交談，其他供應商也是如此。在大流行之後，人力資源似乎確實成為了一個痛點，因此，感覺它再次更具戰略意義。我不知道你是否能看到它以及你對那個的評論。

So coming out of the pandemic, you had the increase in attrition rates across clients. So it became more important to have things like succession planning, our property outline and have proper strategies around that. There was more of a movement, as I mentioned, more global workforces. And so finding an HR system that could manage a global workforce and report on that. Analytics became very important. Because all of a sudden, you had to think about did you have enough people to handle the capacity that you were trying to put through your business? And without having metrics around your people, that's obviously very, very difficult to do.

因此，從大流行中走出來，客戶的流失率有所增加。因此，制定繼任計劃、我們的財產大綱並圍繞這些制定適當的戰略變得更加重要。正如我所提到的，有更多的運動，更多的全球勞動力。因此，找到一個可以管理全球勞動力並就此進行報告的人力資源系統。分析變得非常重要。因為突然之間，您不得不考慮您是否有足夠的人手來處理您試圖通過您的業務提供的容量？如果沒有關於您的員工的指標，這顯然非常非常難以做到。

So the movement to architectures lighthouse, where it's all 1 database that makes that type of analytics much easier. Compliance has become more difficult. It started during the actual pandemic where tax rules were changing almost weekly. And this continual focus on things like employee privacy, ways that kind of fairness rules for the employees, payment rules for employees, minimum wage rates for the employees. And you need a sophisticated system that can handle those types of requirements. -- yes, in a world of today where we are almost at full employment. You have to make sure that you can get as much as possible from your people. You have to make sure that the experience that you have for those people is as best as possible, so that they want to stay and continue to build out their careers at your organization.

因此，轉向架構燈塔，其中所有 1 個數據庫使此類分析變得更加容易。合規變得更加困難。它始於實際的大流行期間，當時稅收規則幾乎每週都在變化。這種持續關注員工隱私、員工公平規則的方式、員工支付規則、員工最低工資率等問題。您需要一個能夠處理這些類型需求的複雜系統。 -- 是的，在我們幾乎處於充分就業的當今世界。你必須確保你能從你的員工那裡得到盡可能多的東西。您必須確保為這些人提供盡可能最好的體驗，這樣他們才會願意留下來並繼續在您的組織中發展自己的職業生涯。

And if you do have vacancies, you do have to have strategic talent acquisition systems that need to leverage AI and ML to make sure that you have the right candidate experience and that you are bringing on the right people. And when there is churn, you have to rely on learning management systems because you need to have embedded learning throughout the experience of the actual people.

如果你確實有職位空缺，你就必須擁有戰略人才招聘系統，該系統需要利用 AI 和 ML 來確保你擁有合適的候選人體驗，並確保你正在招募合適的人才。當出現流失時，您必須依賴學習管理系統，因為您需要在實際人員的整個體驗中嵌入學習。

So all of that, I think, has become very, very important. And probably the last piece I would add is that, as you know, workforces today are more distributed, there hasn't been a return back to the office. And I think the deal with kind of error is over and people aren't going to go back to cubes. And so you do need to have HR systems that can really help with collaboration and idea sharing new ways of doing performance management in this new world of work.

所以我認為，所有這些都變得非常非常重要。可能我要補充的最後一點是，如您所知，如今的勞動力更加分散，沒有人回到辦公室。而且我認為處理錯誤的事情已經結束，人們不會再回到立方體上了。因此，您確實需要擁有能夠真正幫助協作和想法共享的 HR 系統，以在這個新的工作世界中以新的方式進行績效管理。

The only thing I'd add, if I could, to that very thorough answer, is that we used to manage people shoulder to shoulder inside an office. Given that people aren't returning to the office, organizations are relying on technology to support that work. And as a result, to your question, a direct answer is HR and HR technology has become significantly more strategic post pandemic.

如果可以的話，我唯一要補充的是，對於這個非常徹底的答案，我們過去常常在辦公室裡肩並肩地管理人們。鑑於人們沒有返回辦公室，組織正在依靠技術來支持這項工作。因此，對於你的問題，一個直接的答案是人力資源和人力資源技術在大流行後變得更具戰略意義。

Congratulations.

恭喜。

And that concludes our Q&A session for the evening. Thank you, everyone.

這就是我們晚上的問答環節。謝謝大家。