Insperity Inc (NSP) 2025 Q1 法說會逐字稿

Good morning. My name is Paul, and I will be your conference operator today. I would like to welcome everyone to the Insperity first quarter 2025 earnings conference call. (Operator Instructions).

早安.我叫保羅，今天我將擔任您的會議主持人。歡迎大家參加 Insperity 2025 年第一季財報電話會議。（操作員指令）。

I would like to introduce today's speakers. Joining us are Paul Sarvadi, Chairman of the Board and Chief Financial Officer, and Jim Allison, executive Vice President of Finance, Chief Financial Officer, and treasurer. At this time, I'd like to turn the call over to Jim Allison. Mr. Allison, please go ahead.

我想介紹一下今天的演講者。與我們一起出席的還有董事會主席兼財務長 Paul Sarvadi 和財務執行副總裁、財務長兼財務主管 Jim Allison。現在，我想將電話轉給吉姆艾利森。艾利森先生，請繼續。

Thank you. We appreciate you joining us today. Let me begin by outlining our plan for this morning's call. First, I'm going to discuss the details behind our first quarter of 2025 financial results. Paul will then comment on our first quarter results, the macroeconomic environment, and the ongoing implementation of our workday strategic partnership.

謝謝。感謝您今天加入我們。首先，讓我概述一下我們今天上午的會議計劃。首先，我將討論我們 2025 年第一季財務表現背後的細節。保羅將對我們的第一季業績、宏觀經濟環境以及我們正在實施的工作日戰略合作夥伴關係發表評論。

I will return to provide our financial guidance for the second quarter and full year 2025. We will then end the call with a question-and-answer session. Before we begin, I would like to remind you that Paul or I may make forward-looking statements during today's call, which are subject to risks, uncertainties, and assumptions.

我將回來提供 2025 年第二季和全年的財務指導。然後我們將以問答環節結束通話。在我們開始之前，我想提醒您，保羅或我可能會在今天的電話會議中做出前瞻性陳述，這些陳述受風險、不確定性和假設的影響。

In addition, some of our discussion may include non-GAAP financial measures for more detailed discussion of risks and uncertainties that could cause actual results to differ materially from any such forward-looking statements and reconciliations of non-GAAP financial measures. Please see the company's public filings, including the Form 8-K filed today, which are available on our website.

此外，我們的一些討論可能包括非公認會計準則財務指標，以便更詳細地討論可能導致實際結果與任何此類前瞻性陳述和非公認會計準則財務指標的對帳存在重大差異的風險和不確定性。請參閱本公司的公開文件，包括今天提交的 8-K 表格，這些文件可在我們的網站上查閱。

This morning, we reported first quarter adjusted EPS of $1.57 and adjusted EBITDA of $102 million. These results fell below our guidance range, primarily due to higher-than-expected benefits costs, which I will discuss further in just a minute. The average number of paid work side employees increased by 0.7% over Q1 of 2024 to 306,000 in '23.

今天上午，我們報告第一季調整後每股收益為 1.57 美元，調整後息稅折舊攤提前利潤為 1.02 億美元。這些結果低於我們的指導範圍，主要是由於福利成本高於預期，我將在稍後進一步討論。2023 年，有薪工作員工平均數量比 2024 年第一季增加了 0.7%，達到 306,000 人。

The paid work side employee growth was slightly below our guidance range as some new client starts were delayed or canceled in the second half of the quarter due to mounting uncertainty around the impact of the new administration's economic policies. However, Brookside employees paid from new client sales still increased 3% over Q1 of 2024.

由於新政府經濟政策影響的不確定性日益增加，導致本季度下半段一些新客戶的啟動被推遲或取消，因此有薪工作方面的員工成長略低於我們的指導範圍。不過，Brookside 員工因新客戶銷售而獲得的報酬仍比 2024 年第一季成長了 3%。

In addition, client retention remained a bright spot in the quarter with a total client retention of just 9% in Q1 of 2025 versus 12%. In Q1 2024. Client net hiring was just slightly positive for the quarter but continued to be very weak compared to historical norms and lower than last year. Gross profit for work side employee in Q1 2025 was $338 per month, down from $378 in Q1 of 2024.

此外，客戶保留率仍然是本季的一大亮點，2025 年第一季的總客戶保留率僅為 9%，而去年同期為 12%。2024 年第一季。本季客戶淨招募略有成長，但與歷史標準相比仍然非常疲軟，且低於去年同期。2025 年第一季工作兼職員工的毛利為每月 338 美元，低於 2024 年第一季的 378 美元。

As benefits costs per covered employee increased 8.4% year over year. Other components of gross profit for work side employee, including pricing, payroll taxes, and workers' compensation, were generally in line with our expectations. We are obviously disappointed by the emergence of higher benefits costs on a per-covered employee basis.

由於受保員工人均福利成本較去年同期增加 8.4%。工作側員工毛利的其他組成部分，包括定價、工資稅和工人賠償，基本上符合我們的預期。我們顯然對每位受保員工的福利成本增加感到失望。

Benefits costs exceeded our budget by $28 million of which $12 million was related to higher-than-expected runoff of medical claims related to prior periods and $16 million was related to higher-than-expected medical claims incurred in Q1. Typically, the claims runoff from prior periods includes a mix of positive adjustments and negative adjustments.

福利成本超出預算 2,800 萬美元，其中 1,200 萬美元與前期醫療索賠金額高於預期有關，1,600 萬美元與第一季發生的醫療索賠金額高於預期有關。通常，前期索賠的流失包括正調整和負調整。

And in periods of higher-than-expected runoff, it's typically concentrated in the most recent prior period. Our $12 million adjustment this quarter was much more widespread in that we saw an elevated level of claims adjudication and payment above normal historical levels for virtually all older periods, which is an unprecedented occurrence.

在徑流高於預期的時期，它通常集中在最近的前一時期。本季我們的 1200 萬美元調整範圍更加廣泛，因為我們發現幾乎所有較早時期的索賠裁決和支付水平都高於正常歷史水平，這是前所未有的現象。

To mitigate future exposure to claims from these historical periods. Our adjustment includes both the higher level of adjudicated claims, plus an increase in our reserve for remaining unreported claims. We have analyzed our medical claims history to investigate the underlying causes of the higher than expected claims activity for Q1 and prior periods.

減輕未來對這些歷史時期索賠的風險。我們的調整包括更高水準的裁決索賠，以及增加剩餘未報告索賠的準備金。我們分析了醫療索賠歷史，以調查第一季及之前時期索賠活動高於預期的根本原因。

Our analysis indicates a significant acceleration of claims payment activity for inpatient hospitalization and outpatient services in Q4 and Q1. Pharmacy costs also trended at higher than expected levels, although to a somewhat lesser degree. Looking at large claims, we can see that the frequency of claimants costing more than $100,000 in a quarter has increased by about 10% in Q4 and Q1 compared to recent history.

我們的分析表明，第四季度和第一季住院和門診服務的索賠支付活動顯著加速。藥房成本也呈現高於預期的趨勢，儘管程度略低。從大額索賠來看，我們可以看到，與近期歷史相比，第四季和第一季索賠金額超過 10 萬美元的頻率增加了約 10%。

To summarize, our data indicates that our benefits costs have been impacted by an acceleration of several interrelated factors, claims processing affecting current and prior periods, inpatient, outpatient, and pharmacy costs and the frequency of large claims.

總而言之，我們的數據表明，我們的福利成本受到幾個相互關聯因素加速的影響，包括影響當前和以前期間的索賠處理、住院、門診和藥房成本以及大額索賠的頻率。

As we look to what this means for our expectations for the full year, we have considered a range of possibilities, including whether these factors represent a longer term new normal, a shorter-term increase in utilization that happens from time to time in our plan. Or possibly even a change in the timing of payments or processing speed.

當我們展望這對我們全年預期意味著什麼時，我們考慮了一系列可能性，包括這些因素是否代表著一種長期的新常態，以及我們計劃中不時發生的短期利用率的增加。或甚至可能改變付款時間或處理速度。

In addition, we have taken into consideration the impact of demographic changes and planned migration to lower cost plan options, which should provide a favorable impact to claims trends as we proceed through the year. Based on these factors, we are forecasting a range of benefits cost per covered employee of 6.5% to 7.5% for the full year, from our initial projection of 5% to 6.5%.

此外，我們還考慮了人口變化和計劃遷移到低成本計劃選項的影響，這應該會對全年的索賠趨勢產生有利影響。基於這些因素，我們預測每位受保員工全年的福利成本將為 6.5% 至 7.5%，而最初預測為 5% 至 6.5%。

Based on the higher projected cost trend, we have raised our pricing targets moving forward. We have already started to implement these measures with an emphasis on strategically selected accounts. Assuming our benefits cost trends towards the midpoint of the projected range, we expect to be able to realign our pricing by January of next year.

根據預期成本趨勢的提高，我們提高了未來的定價目標。我們已經開始實施這些措施，重點是策略性選擇的帳戶。假設我們的福利成本趨勢接近預期範圍的中點，我們預計能夠在明年一月之前重新調整我們的定價。

In addition, we are also evaluating benefit plan design and packaging changes that could mitigate healthcare cost trends in 2026. We continue to closely monitor claims activity, and we'll adjust our pricing and plan offerings accordingly. Moving to Q1 operating expenses, they were managed slightly below budget and increased only $5 million or 2% over Q1 of 2024.

此外，我們也正在評估福利計畫設計和包裝變化，以減輕 2026 年醫療保健成本趨勢。我們將繼續密切關注索賠活動，並相應地調整我們的定價和計劃產品。至於第一季的營運費用，其管理略低於預算，與 2024 年第一季相比僅增加了 500 萬美元或 2%。

The small increase was driven by the investment in our workday strategic partnership, which totaled $13 million in Q1 of 2025, versus the initial ramp up of $5 million in Q1 of 2024. Other operating expenses were down slightly year over year. As for income taxes, our effective tax rate was 29% and was generally in line with Q1 of 2024.

這一小幅成長是由於我們對工作日策略夥伴關係的投資，該投資在 2025 年第一季總計 1,300 萬美元，而 2024 年第一季最初增加了 500 萬美元。其他營運支出較去年同期略有下降。至於所得稅，我們的有效稅率為 29%，與 2024 年第一季基本一致。

During the first quarter, we continue to return capital to our shareholders through our regular dividend program and the repurchase of our shares. We paid $23 million in cash dividends and repurchased 224,000 shares of stock at a cost of $19 million in Q1. We ended the quarter with $124 million of adjusted cash, and we had $280 million available under our credit facility. Now, at this time, I'd like to turn the call over to Paul.

在第一季度，我們繼續透過定期股利計畫和回購股票向股東返還資本。我們在第一季支付了 2,300 萬美元的現金股息，並以 1,900 萬美元的成本回購了 224,000 股股票。本季末，我們的調整後現金為 1.24 億美元，我們的信貸額度下有 2.8 億美元可用。現在，我想把電話轉給保羅。

Thank you, Jim, and thank you all for joining our call today. I'll provide comments on four areas. First, I'll discuss the impact of the change in the macroeconomic environment that occurred in the first quarter and the effect on our full year growth outlook. I'll follow with progress on initiatives to build on the growth momentum we established early in the year.

謝謝你，吉姆，也謝謝大家今天參加我們的電話會議。我就四個方面談幾點看法。首先，我將討論第一季宏觀經濟環境變化的影響及其對我們全年成長前景的影響。我將持續關注各項舉措的進展，以鞏固我們今年年初確立的成長動能。

Next, I'll provide some context around the benefit cost issues that develop in the quarter and the three initiatives we expect to mitigate effects in 2026. I'll finish with what I believe is the most significant recent development, the outstanding steps forward on our workday strategic partnership, including our agreement on a go to market plan.

接下來，我將介紹本季出現的福利成本問題以及我們預計在 2026 年減輕影響的三項舉措的一些背景資訊。最後，我將介紹我認為最近最重要的進展，即我們的工作日戰略合作夥伴關係的突出進展，包括我們就市場進入計劃達成的協議。

Our first quarter began with an excellent year-end transition due to a very successful fall sales and retention campaign. We achieved an important inflection point, re-establishing positive growth in paid work site employees. Midway through the quarter, tariff and other government policy initiatives led to turbulence in the market and uncertainty in the marketplace.

由於秋季銷售和保留活動非常成功，我們第一季的開局就實現了極好的年底過渡。我們實現了一個重要的轉捩點，重新實現了有薪工作現場員工的正成長。本季中期，關稅和其他政府政策舉措導致市場動盪和不確定性。

We saw quite a sudden reversal of optimism in our small and mid-size business target market and client base directly affecting decision making. An outcome of the shock factor in the small business marketplace was a number of sold accounts in the queue to become paid work site employees decided not to move ahead or delay the start of their contract beyond the first quarter.

我們發現中小型企業目標市場和客戶群的樂觀情緒突然發生逆轉，這直接影響了決策。小型企業市場衝擊因素的結果是，排隊等待成為帶薪工作現場員工的許多已售出帳戶決定不繼續前進或將合約開始時間推遲到第一季之後。

Although we've already seen some moderation of client and prospect indecision, the dramatic change in sentiment about the economic climate and the impact on their business for 2025 was evident in our recent client survey results. We completed our survey in the middle of April, and 66% of respondents expect the economic climate to have a negative effect on their business this year.

儘管我們已經看到客戶和潛在客戶的猶豫有所緩和，但在我們最近的客戶調查結果中，對經濟環境的情緒以及對其 2025 年業務的影響發生了巨大變化。我們在四月中旬完成了調查，66% 的受訪者預計今年的經濟環境將對他們的業務產生負面影響。

This is up from only 29% in January. Client survey respondents expecting their business to perform better than last year was down to 58% in April from 71% in January, and those expecting to add employees in the coming quarter were down to 34% from 43%. On a positive note, HR priorities continue to support demand for our comprehensive HR services.

這一數字較 1 月的 29% 有所上升。4 月份，客戶調查顯示，預計其業務表現將優於去年的受訪者比例從 1 月份的 71% 下降至 58%，而預計下個季度將增加員工的受訪者比例從 43% 下降至 34%。從正面的一面來看，人力資源優先事項持續支持對我們全面人力資源服務的需求。

As the top three needs identified by respondents were retaining talent, building a strong culture, and keeping employee engagement high. Our new sales booked in the quarter were on track through February. However, March came in below budget. We still had a relatively solid full quarter at 85% of budget, especially considering the uncertainty in the marketplace, but the effect on sales was apparent.

受訪者所確定的三大需求是留住人才、建立強大的文化和維持較高的員工敬業度。我們本季的新銷售訂單截至二月均進展順利。然而，三月的支出低於預算。我們整個季度的業績仍然相對穩健，完成了預算的 85%，尤其是考慮到市場的不確定性，但這對銷售的影響是顯而易見的。

The Q1 book sales numbers not below budget by enough to change our annual sales target. However, the timing of these sales combined with paid work side employee results in Q1 slightly below our expected range has a significant cumulative effect on the year in our residual income business model. The math from this takes the shortfall in work side employees times the nine months of the balance of the year.

第一季圖書銷售量並未低於預算，不足以改變我們的年度銷售目標。然而，這些銷售的時間安排，加上第一季受薪工作員工的業績略低於我們的預期範圍，對我們的剩餘收入業務模式產生了顯著的累積效應。計算方法為，將工作方面員工的缺口乘以全年九個月的餘額。

In this case, in our model, the year over year growth rate comes down by over 1%, and this lower number of employee months reduces gross profit. This is quite a contrast compared to the momentum we have seen in our growth drivers, including client retention and our sales and marketing efforts. Our exceptional start to the year in client retention of 91% has put us on track for a strong year in this key metric at the high end of our historical range.

在這種情況下，在我們的模型中，年成長率下降了 1% 以上，而員工工作月數的減少也降低了毛利。這與我們在客戶保留以及銷售和行銷工作等成長動力中看到的勢頭形成了鮮明對比。我們今年開局就取得了 91% 的客戶保留率，這讓我們在這項關鍵指標上有望取得歷史最高水準的強勁成長。

A recent realignment in our sales and service organizations I discussed last quarter is already showing signs of success. Our sales activity figures creating the opportunity for new sales was excellent with a double-digit year over year increase in total business profiles or opportunities to bid our services.

我上個季度討論過的銷售和服務組織的最新調整已經顯示出成功的跡象。我們的銷售活動數據為新銷售創造了極好的機會，整體業務概況或競標我們服務的機會比去年同期增長了兩位數。

One of the key drivers of this sales activity, excuse me, was a double digit increase in marketing leads over the same period last year. Many aspects of our marketing efforts are gaining traction, and we believe we are in a strong position to continue to feed qualified leads to our more experienced team of business performance advisors, driving sales this year, even in this economic climate.

對不起，此次銷售活動的關鍵驅動因素之一是與去年同期相比，行銷線索實現了兩位數的成長。我們的行銷工作在許多方面都取得了進展，我們相信，即使在目前的經濟環境下，我們也能繼續為我們更有經驗的業務績效顧問團隊提供合格的銷售線索，從而推動今年的銷售。

Now let me provide some context for the benefit cost increase related to our health plan coverage we have with UnitedHealthcare. In our business model, our quarterly accounting requirements for our annual health plan policy is a source of potential volatility in our results. Volatility in the health care market at large has been more pronounced since COVID, and predictability has been affected to a degree.

現在，讓我提供一些與我們與聯合健康保險 (UnitedHealthcare) 簽訂的健康計劃保險相關的福利成本增加的背景資訊。在我們的商業模式中，年度健康計劃政策的季度會計要求是我們業績潛在波動的來源。自從新冠疫情爆發以來，整個醫療保健市場的波動性更加明顯，可預測性受到了一定程度的影響。

But our analysis indicates that this quarter's higher than expected claim activity was due to a variety of factors rather than a primary root cause. UnitedHealthcare is going through a difficult period of their own, and they've told us they've not altered their approach to handling our claims.

但我們的分析表明，本季索賠活動高於預期是由於多種因素造成的，而不是主要的根本原因。聯合健康保險公司 (UnitedHealthcare) 本身正經歷一段困難時期，但他們告訴我們，他們並沒有改變處理索賠的方式。

Based on the data we received, there are indications of accelerated payments, utilization patterns, large claims, or a combination of all three appearing to be part of the mix. We've had times in our history where this type of quarter in hindsight simply reflected the concentration of large claims or other activity that evened out in subsequent periods.

根據我們收到的數據，有跡象表明加速付款、利用模式、大額索賠或三者的組合似乎是混合現象的一部分。在我們的歷史上，曾經有過這樣的情況，事後看來，這種季度僅僅反映了大額索賠或其他活動的集中，而這些活動在隨後的時期內趨於平穩。

We've also had times where a quarter like this was the first sign of a higher trend rate than expected, and at those times pricing and cost management tactics were important to balance price and cost going forward. We're treating this development like the latter case.

我們也曾經經歷過這樣的情況：像這樣的季度是趨勢率高於預期的第一個跡象，在那個時候，定價和成本管理策略對於平衡未來的價格和成本非常重要。我們將這一發展視為後一種情況。

As a result, we're reserving additional amounts we believe are appropriate and factoring in a higher trend in our outlook, which produces a wider range of forecasted earnings for the current year. If there's such a thing as a silver lining here, the timing of this occurrence allows us to begin 3 initiatives that we believe will help address this situation with the goal of mitigating effects in 2026.

因此，我們保留了我們認為合適的額外金額，並在我們的展望中考慮到了更高的趨勢，從而為本年度產生了更廣泛的預測收益。如果這裡有一線希望的話，那麼這次事件發生的時機讓我們能夠啟動三項舉措，我們相信這些舉措將有助於解決這一問題，目標是在 2026 年減輕其影響。

As Jim mentioned, we've already begun a pricing initiative which we believe can balance price and cost by year end at the midpoint of our new expected benefit cost trend. The second initiative is our evaluation and implementation of plan design changes for the next plan year. Plan changes must be decided by mid-year and then implemented over the second half of the year.

正如吉姆所提到的，我們已經開始了一項定價計劃，我們相信該計劃可以在年底前實現價格和成本的平衡，即我們新的預期收益成本趨勢的中點。第二項措施是對下一計畫年度的計畫設計變更進行評估和實施。計劃變更必須在年中之前決定，然後在下半年實施。

Because we have this information about benefits costs now, we are factoring in this information as we evaluate upcoming plan changes. No significant plan design changes were initiated this year, so January 2026 would be a practical time for these changes to occur. The third initiative is also timely. Our multiyear contract with UnitedHealthcare is scheduled to be renewed on January 1, 2027.

因為我們現在有關於福利成本的信息，所以我們在評估即將發生的計劃變更時會將這些信息考慮在內。今年沒有啟動任何重大的計劃設計變更，因此 2026 年 1 月將是這些變更發生的實際時間。第三個舉措也很及時。我們與 UnitedHealthcare 的多年期合約定於 2027 年 1 月 1 日續約。

UnitedHealthcare has been our primary carrier since 2002, and we typically negotiate our new contract before the last year of the current term begins. We've already had a call with the UnitedHealthcare Leadership and agreed to accelerate contract renewal discussions, including possible structural changes.

自 2002 年以來，聯合健康保險一直是我們的主要承運商，我們通常會在當前期限的最後一年開始之前協商新合約。我們已經與聯合健康保險領導層進行了通話，並同意加快續約談判，包括可能的結構性變化。

We also believe there are opportunities to further leverage our workday strategic partnership and our related go to market plan in these discussions. So our most significant short term issue in the first quarter was certainly the benefit cost challenges, and we have a plan in place that we believe will address it in a manner likely to mitigate any effect next year.

我們也相信，在這些討論中，我們有機會進一步利用我們的工作日策略合作夥伴關係和相關的市場計劃。因此，我們在第一季面臨的最重大的短期問題肯定是福利成本挑戰，而且我們已經制定了計劃，相信能夠以某種方式解決這個問題，從而減輕明年可能產生的影響。

The most significant development in the first quarter for the long term was the exciting progress we made on our workday strategic partnership, including our go to market plan, which I will cover in a few minutes. First, we achieved the critical milestone of launching our corporate workday platform in mid-March. I'm very pleased to report that in spite of the complexity and the relatively short period of time to reach this milestone, this launch was nearly flawless.

從長遠來看，第一季最重要的發展是我們在工作日策略合作夥伴關係方面取得的令人興奮的進展，包括我們的市場計劃，我將在幾分鐘內介紹。首先，我們在三月中旬實現了推出企業工作日平台的關鍵里程碑。我很高興地報告，儘管情況很複雜，而且達到這一里程碑的時間相對較短，但這次發布幾乎完美無缺。

Both firms had prepared diligently for any possible issues. And we're very pleased this transition occurred at such a high level of effectiveness. Outside the norm of typical deployments. The launch of Insperity Corporate instance was a significant milestone for the entire strategic partnership for several reasons.

兩家公司都為可能出現的問題做好了充分的準備。我們非常高興這項轉變能夠如此有效率地實現。超出典型部署的規格。基於多種原因，Insperity Corporate 實例的推出對於整個策略合作夥伴關係來說是一個重要的里程碑。

Notably, many of the integrations and development efforts for the corporate instance are also foundational for the client instance. In addition, Insperity now has experienced the efficiency and effectiveness that the Workday solution offers companies like ours with over 44,400 employees. This achievement allows us and our people to become a strong advocate for the joint solution we are developing for clients.

值得注意的是，企業實例的許多整合和開發工作也是客戶端實例的基礎。此外，Insperity 現在已經體驗到了 Workday 解決方案為我們這樣擁有超過 44,400 名員工的公司提供的效率和效益。這項成就使我們和我們的員工成為我們為客戶開發的聯合解決方案的堅定倡導者。

The reaction across disparity from managers and employees alike has been tremendous. People leaders have been commenting that they have much more visibility into their organizations as we move from multiple systems into one with processes that are more efficient and happening in real time as part of a business process workflow.

管理人員和員工對於這種差異的反應非常強烈。人們的領導者一直在評論說，隨著我們從多個系統轉向一個系統，其流程更加高效，並且作為業務流程工作流程的一部分實時發生，他們對組織的了解程度有了更高的提高。

Frontline employee comments have also been enthusiastic about the amount of information available all in one location, the ability to review and complete tasks inside the mobile platform, a fantastic issue resolution process, and the ease of navigation. Now, from the reaction and comments, it's apparent we're off to a great start in developing the advocacy we intended to do to recommend the joint Insperity Workday solution to clients and prospects in the near future.

一線員工的評論也對在一個位置提供的大量資訊、在行動平台內審查和完成任務的能力、出色的問題解決流程以及便捷的導航表示歡迎。現在，從回應和評論來看，我們在進行宣傳方面已經有了一個很好的開端，我們打算在不久的將來向客戶和潛在客戶推薦聯合 Insperity Workday 解決方案。

There's still a hill to climb to launch the new product, but the momentum from the team of both companies working together to achieve such a successful launch of the corporate instance is a leverageable confidence boost. I believe another critical highlight of our efforts so far this year was the completion of our Workday strategic partnership go to market plan for our new joint solution.

推出新產品仍有很長的路要走，但兩家公司團隊齊心協力，成功推出企業實例的勢頭可以增強人們的信心。我認為，今年迄今為止我們努力的另一個重要亮點是完成了與 Workday 戰略合作夥伴的新聯合解決方案的上市計劃。

With senior leadership and other key personnel from both companies together, our teams agreed upon the plan to take our joint solutions to the market. We are aligned on the target market for the joint solution, the product name, messaging and competitive positioning, the sales motion, and most importantly, to form a new product-oriented delivery team focused on achieving the objectives set by leadership of both companies.

在兩家公司高層領導和其他關鍵人員的共同努力下，我們的團隊同意將我們的聯合解決方案推向市場的計劃。我們對聯合解決方案的目標市場、產品名稱、訊息傳遞和競爭定位、銷售動議都達成了一致，最重要的是，組建一個新的以產品為導向的交付團隊，專注於實現兩家公司領導層設定的目標。

This go to market plan contemplates contemplates this team of cross-functional sales support, marketing, and other professionals will execute a plan to co-sell our new joint offering. We plan for this to be a client-centered approach to determine the best path forward for a prospect matching their needs with the offerings of Workday, Insperity, and of course our new joint solution.

該市場計劃考慮由跨職能銷售支援、行銷和其他專業人員組成的團隊執行一項計劃，共同銷售我們的新聯合產品。我們計劃採用以客戶為中心的方法，透過 Workday、Insperity 以及我們新的聯合解決方案的產品來滿足潛在客戶的需求，從而確定最佳的前進道路。

This team is rapidly forming and taking the steps necessary to begin calling on targeted early adopter candidates over the last half of this year. The goals of this team over this period include developing the sales motion and selling accounts to queue up for 2026 when the joint solution is expected to be available.

該團隊正在迅速組建並採取必要措施，準備在今年下半年開始招募目標早期採用者候選人。在此期間，團隊的目標包括制定銷售動議和銷售帳戶，以便在 2026 年聯合解決方案預計可用時排隊。

This team will wake up every day with the responsibility, authority, flexibility, and incentive to achieve the goals of the go to market plan. We believe this new joint offering is a hand in glove fit for this large underserved target market.

這個團隊每天醒來都會帶著責任、權力、彈性和動力去實現市場計畫的目標。我們相信，這款新的聯合產品非常適合這個龐大且服務不足的目標市場。

The target markets comprise of over 40,000 businesses with more than 25 million employees in total. We believe our new joint solution to be a uniquely comprehensive combination of technology and services for this mid-market.

目標市場包括超過 4 萬家企業，總計超過 2,500 萬名員工。我們相信，我們的新聯合解決方案是針對中端市場的獨特技術和服務的綜合組合。

And has the potential to be disruptive, providing greater speed to value and lower cost and complexity. Up to this point, we have not provided any quantification of this new growth driver we expect to begin at some point in 2026.

並且具有顛覆性的潛力，可以更快地實現價值並降低成本和複雜性。到目前為止，我們還沒有對我們預計將於 2026 年某個時候開始出現的新的成長動力進行任何量化。

Now that we have an agreed upon go to market plan, we believe it's reasonable to give some frame of reference for consideration. It's important to note this is not specific guidance in any form, but just some information to help you understand the potential significant impact this new product could have to drive growth and return on investment.

現在我們已經商定了市場進入計劃，我們認為提供一些參考框架供考慮是合理的。值得注意的是，這不是任何形式的具體指導，而只是一些信息，以幫助您了解這款新產品可能對推動成長和投資回報的潛在重大影響。

We expect the average size of prospects in this target market for this new solution to be higher than our historical sales of mid-market accounts, which we believe could double our annual mid-market sales production. As an example, if we sold just 20 accounts at an average of 750 employees, this would produce 15,000 work side employees, adding approximately 5% to our annual growth at our current size.

我們預計，這項新解決方案的目標市場中潛在客戶的平均規模將高於我們中端市場帳戶的歷史銷售額，我們相信這可以使我們的年度中端市場銷售額翻倍。舉例來說，如果我們平均每 750 名員工銷售 20 個帳戶，那麼這將產生 15,000 名工作員工，按照我們目前的規模，年增長率將增加約 5%。

When you also consider the opportunity for current mid-market accounts moving to the new solution and the corresponding increase in our client retention rate, we believe there's potential to double the size of our mid-market business over a reasonable period of time and drive a substantial return on investment.

當您也考慮到當前中端市場帳戶轉向新解決方案的機會以及我們客戶保留率的相應提高時，我們相信我們有可能在合理的時間內將中端市場業務規模擴大一倍，並獲得可觀的投資回報。

I had the opportunity to introduce this strategic partnership and the new solution to nearly 80 mid-market business leaders, owners, or CEOs, both prospects and current clients at a recent event. The reaction included a high level of enthusiasm, but also a clear understanding that in sparsity and work they have made a significant investment of resources to bring a potentially game changing solution to their doorstep.

在最近的一次活動中，我有幸向近 80 位中型市場企業領導者、所有者或執行長（包括潛在客戶和現有客戶）介紹了這項策略合作夥伴關係和新解決方案。人們的反應不僅包括高度的熱情，而且也清楚地認識到，在稀疏性和工作方面，他們已經投入了大量的資源，以便將可能改變遊戲規則的解決方案帶到他們家門口。

Co-branding, co-marketing, co-selling, all part of our go to market plan are key elements of the Workday strategic Partnership. We believe this new joint solution will be well received by the target market and will be a key driver to the growth trajectory of disparity for 2026 and beyond. At this point, I'd like to pass the call back to Jim.

聯名品牌、聯合行銷、聯合銷售都是我們市場計畫的一部分，也是 Workday 策略夥伴關係的關鍵要素。我們相信，這項新的聯合解決方案將受到目標市場的歡迎，並將成為2026年及以後差距成長軌跡的關鍵驅動力。現在，我想把電話轉回給吉姆。

Thanks, Paul. Now, let me provide an update to our full year 2025 outlook. As Paul discussed, we have trimmed our expectations for work side employees paid from new client sales and net client hiring due to the effects of the macroeconomic environment and the small business sentiments.

謝謝，保羅。現在，讓我更新一下我們對 2025 年全年的展望。正如保羅所討論的，由於宏觀經濟環境和小型企業情緒的影響，我們下調了對從新客戶銷售額和淨客戶招聘中獲得報酬的工作員工的預期。

As a result, we have reduced our expected workside employee growth rate by a little over 100 basis points from our initial guidance. For the full year, we are now forecasting work side employee growth of 0.5% to 3% over 2024. Reflecting sequential quarterly growth of 1% to 2%. With regards to gross profits, we are forecasting a range of benefits cost per covered employee of 6.5% to 7.5% for the full year.

因此，我們將預期的員工成長率從最初的預期降低了 100 個基點以上。就全年而言，我們預測 2024 年工作方面員工的成長率將達到 0.5% 至 3%。反映出季度連續成長 1% 至 2%。就毛利而言，我們預測全年每位受保員工的福利成本範圍為 6.5% 至 7.5%。

The lower end of the range assumes that claims for the remainder of the year moderate toward budgeted levels, while the higher end assumes that elevated claims continue through the year. We anticipate that the benefits cost trend will taper down from the 8.4% experienced in Q1 as we progress through the year due to the expected favorable impact of planned demographic changes and planned migration that we have seen.

該範圍的低端假設今年剩餘時間的索賠將趨向預算水平，而高端假設高額索賠將持續到今年年底。我們預計，隨著全年的推進，福利成本趨勢將從第一季的 8.4% 逐漸下降，這是由於我們看到的計劃人口變化和計劃移民的預期有利影響。

In addition, year over year comparisons in the first half of 2025 are impacted by last year's favorability, and that impact should subside in the second half of the year. We are keenly focused on operating expense management as a key priority in the current environment. We expect operating expenses to decline slightly sequentially in each of the remaining quarters.

此外，2025 年上半年的年比情況會受到去年好感度的影響，而這種影響應該會在下半年消退。在當前環境下，我們高度重視營運費用管理。我們預計剩餘每季的營運費用將較上季略有下降。

For the full year, we expect that operating expenses will be an overall reduction compared to 2024. This includes planned spending on the implementation of the Workday strategic Partnership, which we expect to total approximately $62 million in 2025, versus $57 million in 2024. Based on all of these factors, we are forecasting full year adjusted EBITDA in a range of $190 million to $245 million.

就全年而言，我們預計營運費用將與 2024 年相比整體減少。這包括實施 Workday 策略夥伴關係的計畫支出，我們預計 2025 年該支出總額約為 6,200 萬美元，而 2024 年為 5,700 萬美元。基於所有這些因素，我們預測全年調整後的 EBITDA 在 1.9 億美元至 2.45 億美元之間。

We are forecasting full year adjusted EPS in a range of $2.23 to $3.28. As for Q2, we are forecasting the average paid work side employees to be in a range of 308,000 to 311,000, which represents an increase of 0.3% to 1.3% over Q2 of 2024. We are forecasting adjusted EBITDA in a range of $33 million to $53 million and adjusted EPS in a range of $0.29 to $0.67.

我們預測全年調整後每股收益將在 2.23 美元至 3.28 美元之間。至於第二季度，我們預測平均有薪工作員工人數將在 30.8 萬至 31.1 萬之間，較 2024 年第二季度增長 0.3% 至 1.3%。我們預測調整後的 EBITDA 在 3300 萬美元至 5300 萬美元之間，調整後的 EPS 在 0.29 美元至 0.67 美元之間。

As I noted earlier, earnings comparisons to Q2 of 2024 are expected to be significantly impacted by the favorable benefits costs in Q2 of last year compared to the challenging environment this year. We are pleased that our year-end transition has generated year over year work side employee growth and barring a significant change in the macroeconomic environment.

正如我之前提到的，與今年充滿挑戰的環境相比，預計去年第二季的優惠福利成本將對 2024 年第二季的收益比較產生顯著影響。我們很高興看到，儘管宏觀經濟環境發生了重大變化，但我們的年終轉型帶來了員工人數的逐年增長。

We expect some modest improvement over the course of the year. We have a pricing plan in place that we believe will address the benefits cost trend environment, and we have many other options available that could contain or reduce costs and drive improved profitability in 2026. At this time, I'd like to open up the call for questions.

我們預計今年的情況會略有改善。我們已製定定價計劃，我們相信該計劃將解決效益成本趨勢環境，並且我們還有許多其他可用選項可以控製或降低成本並在 2026 年提高盈利能力。現在，我想開始提問。

Thank you. At this time, we'll be conducting a question-and-answer session. (Operator Instructions). And the first question today is coming from Andrew Nicholas from William Blair. Andrew, your line is live.

謝謝。這次，我們將進行問答環節。（操作員指令）。今天的第一個問題來自威廉布萊爾的安德魯尼古拉斯。安德魯，你的線路已通電。

Hi, good morning. Thanks for taking my questions. The first one I wanted to ask was just on the some of the cancels or I guess I should say like onboarding pauses that you cited in the back half of the first quarter. Paul, could you speak a little bit more to that?

嗨，早安。感謝您回答我的問題。我想問的第一個問題是關於一些取消的情況，或者我想應該說像您在第一季後半段提到的入職暫停的情況。保羅，你能再多說一點嗎？

I think you mentioned some moderation in that dynamic since late first quarter, but any more colour there, even quantification of how that surprised you, that would be helpful.

我認為您提到了自第一季末以來這種動態有所緩和，但如果能提供更多的細節，甚至量化這種動態對您造成的驚訝程度，那將會很有幫助。

Yeah, absolutely. Obviously as the year began, the optimism level in the small business community went skyrocketing. It was really strong, post-election, but even post first of the year and the reversal was quite dramatic once the government actions related to tariffs and other things that were happening.

是的，絕對是如此。顯然，隨著新年的到來，小企業界的樂觀情緒急劇上升。選舉後，這種勢頭確實強勁，但即使在年初之後，一旦政府採取與關稅和其他事情相關的行動，逆轉也是相當劇烈的。

And we were, we're surprised by the level of shock factor, if you will, and that lasted, that was basically the last five weeks or so of the quarter. And the level of uncertainty was high enough just to cause a pause. And, we had such a strong fall campaign that it was rolling in. There were just a, more accounts that we would have expected that, half that basically, put it on pause and definitely, basically canceled for now.

我們對這種程度的衝擊因素感到驚訝，如果你願意的話，這種衝擊因素持續了，基本上是本季度最後五週左右。且不確定性程度夠高，足以導致停頓。而且，我們的秋季活動非常強勁，正如火如荼地展開。我們預期的帳戶數量只是其中的一半，基本上已經暫停了，而且基本上已經取消了。

And half that just delayed, beyond the first quarter, so they're coming in, now. But, that was not something really predictable. We did a really thorough client survey that provided good information that I went through and I think it's helpful for all of us. But we have seen some moderation, that basically, people with the mindset that, okay, we still don't know all that's happening yet.

其中一半只是推遲到了第一季之後，所以他們現在才加入。但這並不是一件真正可以預測的事情。我們進行了一次非常徹底的客戶調查，提供了非常有用的信息，我認為這對我們所有人都有幫助。但我們看到了一些緩和的跡象，基本上，人們的心態是，好吧，我們仍然不知道正在發生的一切。

There's still a lot of uncertainty, but, we're moving ahead. So we've been battling through that. Our sales team service team done a great job of supporting clients, communicating with prospects about You know how our service is a benefit to them when they're facing uncertainty.

雖然仍存在許多不確定性，但我們正在向前邁進。所以我們一直在努力解決這個問題。我們的銷售團隊服務團隊在支援客戶、與潛在客戶溝通方面做得非常出色，您知道當他們面臨不確定性時我們的服務如何為他們帶來好處。

How it supports their employees in a way that helps them be more productive and helps the client be able to focus on their profit opportunities that are right in front of them. So, we can manage this. We've done this before and we're on a good track on that front.

它如何以某種方式支持員工，幫助他們提高工作效率，並幫助客戶專注於他們面前的獲利機會。所以，我們可以解決這個問題。我們以前做過這件事，並且在這方面進展順利。

Got it thank you and then switching gears a little bit for my follow up, appreciate all the colour on the workday go to market plan and maybe some of the potential financial impact. I'm curious on the cost side in particular. I think $62 million of cost in '25 is expected only $13 million I believe in the first quarter. Can you walk us a little bit?

明白了，謝謝，然後稍微轉換主題，進行我的後續跟進，感謝工作日上市計劃中的所有細節，以及一些潛在的財務影響。我特別對成本方面感到好奇。我認為 25 年的成本預計為 6,200 萬美元，而第一季的成本僅為 1,300 萬美元。你能帶我們走一小段路嗎？

More through the cadence of that spend this year and maybe more importantly how should we think about. That cost item. In '26 and beyond, is it something that you'd expect to gradually move lower? Is it part of of your ongoing expense base, just trying to figure out now that you have to go to market plan, agreed upon what additional visibility you have on that expense side.

更多透過今年的支出節奏，也許更重要的是我們該如何思考。那項費用項目。在 26 年及以後，您是否預期它會逐漸下降？它是您持續支出基礎的一部分嗎？現在您只是想弄清楚，您必須制定市場計劃，並就您在該支出方面有哪些額外的可見性達成一致。

That's great. I'll let Jim comment on some of the cost side, but let me just say that. The way we look at this, of course, we outlined the significant investment we were making when we started, about $150 million. We spent, we said it was heavily weighted toward the first two years, and you're seeing that it was $57 million last year. We've got a forecast for 62 here.

那太棒了。我會讓吉姆對成本方面的一些問題發表評論，但我只想說這一點。當然，我們看待這個問題的方式是，我們在開始時概述了我們所做的重大投資，約為 1.5 億美元。我們說過，我們的支出主要集中在前兩年，而您會看到，去年的支出為 5700 萬美元。我們這裡的預測溫度是 62。

The investment there is largely the development effort that's going on to launch the joint solution. And so we do anticipate that as, we said at the beginning that investment in years three, four, and five would be, considerably less. However, that all relates to the timing of the launch, etc. And so we'll see that diminished and we'll see revenues start to flow in '26 and beyond, how much we're not sure yet, but I think.

在那裡的投資主要是為推出聯合解決方案而進行的開發工作。因此，我們確實預計，正如我們在開始時所說的那樣，第三年、第四年和第五年的投資將會大大減少。然而，這一切都與發佈時間等有關。因此，我們會看到這種情況減少，我們會看到收入在 26 年及以後開始流入，具體數額我們還不確定，但我認為。

We do have a plan to be pinning that down as we get closer to it and providing more information that will help you all evaluate it. But I think what I want to make sure you understand is that this go to market plan is very straightforward. It is one that doesn't. It's more targeted. It's a rifle shot. Things that we can do on that front are not going to add tremendously to expense.

我們確實有一個計劃，隨著我們越來越接近它，我們會確定它，並提供更多資訊來幫助大家評估它。但我想確保你明白的是，這個上市計畫非常簡單。但它卻不是這樣。更加有針對性。這是步槍射擊。我們在這方面所做的事情不會大幅增加開支。

But are going to be able to, we believe with, closing relatively few accounts really start to have a dramatic effect on the business, and we really do, like I said in my remarks I believe, a track toward, rapidly increasing our sales effort, increasing our client retention that we've already kind of seen signs of and what that relates to doubling the size of our whole mid-market business in a reasonable period of time.

但是，我們相信，透過關閉相對較少的帳戶，我們將能夠真正開始對業務產生巨大影響，而且正如我在發言中所說的那樣，我相信，我們確實朝著快速增加銷售力度、提高客戶保留率的方向發展，我們已經看到了一些跡象，這與在合理的時間內將我們整個中端市場業務的規模翻一番有關。

Really drives that return on investment. So Jim, do you have any other comments on the cost side?

真正推動投資報酬率。那麼吉姆，你對成本方面還有其他評論嗎？

Yeah, when you think about the quarterly pattern, this year, it's going to be relatively stable from quarter to quarter, a little bit higher as we go through the year. Obviously, we're entering a very significant time of testing. There's some new functionality in the workday system that's being deployed, as part of this workday solution that becomes part of things that we have to test and tweak and work through in the setup process.

是的，當你考慮季度模式時，今年，每季的成長率都會相對穩定，全年成長率會略高一些。顯然，我們正進入一個非常重要的考驗時期。正在部署的工作日系統中有一些新功能，作為此工作日解決方案的一部分，這些功能成為我們必須在設定過程中測試、調整和完成的事情的一部分。

So there's a lot of people that are engaged in that in that process, and we expect that that will be the case, as we go through the year and as milestones are hit and, functionality is, deployed, for us to include in our testing. So that's the, that, it shouldn't be a really big difference as far as, the moving forward, and the concept of how much of this repeat or doesn't repeat.

因此，有很多人參與了這個過程，我們預計，隨著我們度過這一年，隨著里程碑的實現和功能的部署，情況將會如此，我們將把這些納入測試中。所以，就前進而言，這不應該是一個很大的區別，以及重複或不重複的程度的概念。

Paul obviously made the first important point, which is that the deployment date is the biggest driver for 2026. Some of the costs that we have right now, could, well, some of them will go away, certainly some people that are on this project are likely to move back towards other projects within the company but some of those projects, particularly on the IT side.

保羅顯然提出了第一個重要觀點，即部署日期是 2026 年最大的驅動因素。我們目前的一些成本可能會消失，當然，參與這個項目的一些人可能會轉回公司內的其他項目，但其中一些項目，特別是在 IT 方面。

Or, we'll be in a position where we'd be able to capitalize some dollars around software development. We may also get to a point where some of the dollars related to this project, are capitalizable. So there's a lot of variables in the mix there, and as we get closer, to the deployment date, we'll have a better line of sight on how all that's going to shake out.

或者，我們將能夠利用軟體開發方面的一些資金。我們也可能會發現，與該專案相關的部分資金是可以資本化的。因此，這其中存在許多變量，隨著部署日期的臨近，我們將更好地了解所有事情將如何發展。

Thank you. The next question is coming from Tobey Sommer from Truist. Tobey, your line is live.

謝謝。下一個問題來自 Truist 的 Tobey Sommer。托比，你的線路已通電。

Thanks, so I wanted to ask a question about your view of the customer base and sentiment. Certainly, in the last 100 days or so, we've had uncertainty increased. Well, Paul, what would you, what do you look for in terms of actions maybe out of Washington that could add stuff to the other side of the ledger to allow for confidence to grow in the customer base and therefore affect the trajectory of the company's sales and retention.

謝謝，所以我想問一個關於您對客戶群和情緒的看法的問題。當然，在過去 100 天左右的時間裡，我們的不確定性增加。那麼，保羅，就華盛頓的行動而言，您會期待什麼呢？這些行動可能會為帳簿的另一邊增添一些東西，以增強客戶群的信心，從而影響公司的銷售和保留軌跡。

Thank you for that question, Tobey. I really had a lot of interaction this quarter, a full week of client interaction every evening at one of our corporate events where I was able to have direct discussions and I have to say I was pretty astonished that the comments about the government action and tariff and uncertainty of the time of the moment.

謝謝你的提問，托比。本季我確實有很多互動，在我們的一個公司活動中，我每晚都有整整一周的時間與客戶互動，我能夠進行直接的討論，我不得不說，我對有關政府行動和關稅以及當時不確定性的評論感到非常驚訝。

Was mentioned but was not the primary topic of discussion. The long-term view of where their businesses were going, the energy around that was still strong. This was just more of a of a common sense pause in decision making. It was, I think very little has to happen for this to turn the other way. In terms of, for example, locking down the, tax system for the going forward.

被提及但不是討論的主要話題。他們對業務發展的長遠眼光以及圍繞這一方向的活力依然強勁。這只不過是決策過程中常識的停頓而已。是的，我認為幾乎不需要發生什麼就能扭轉局面。例如，在鎖定未來稅收制度方面。

I think would have a significant effect, to rebalance the, certainty about the future. I think the, regulatory environment, industry by industry, makes a big difference. And, you, I think we'll be hearing more about that should also flow the other way. But in terms of, us just evaluating what to do this year, I think we've done the right thing to kind of factor in this sentiment level for the immediate decisions about.

我認為這會產生重大影響，重新平衡未來的確定性。我認為，不同產業的監管環境有很大差異。而且，我想我們將會聽到更多關於這方面的消息。但就我們評估今年要做什麼而言，我認為我們做了正確的事情，將這種情緒水平納入當前決策的考慮中。

Hiring people and some of the capital spending that they're not doing right now, based on waiting for some things to turn the other direction. But I don't think it's going to take much, and I think it's going to be, a strong move, the growth direction because there's so much emphasis on supporting growth in the business community.

他們現在沒有招募人員和進行一些資本支出，因為他們在等待一些事情發生轉機。但我認為這不會花費太多，而且我認為這將是一個強有力的舉措，是成長方向，因為商業界非常重視支持成長。

And then I was wondering, I know it's a little bit out in the future, four months or five months from starting. Could you maybe anticipate for us how this year's fall selling campaign may be different from last year's because of perhaps progress and not only the workday implementation at the firm, but also your, kind of tangible working relationship with Workday itself by that time.

然後我就在想，我知道這還有點遠，從開始到現在大概還有四、五個月的時間。您能否為我們預測一下，今年的秋季促銷活動與去年有何不同，這可能是由於公司在工作日實施方面的進展，而且屆時您與 Workday 本身的實際工作關係也有所不同。

Yeah, I think, I tried to mention that a little bit of that in my script about the contrast between some of the recent, happenings, the macroeconomic, etc. And the momentum that we have going in our sales, service, and our workday, team implementation. So it's, I think we're really building some strong momentum. It's too early for me to kind of kind of project out fall campaign.

是的，我想，我試著在我的腳本中稍微提到最近發生的一些事情、宏觀經濟等之間的對比，以及我們在銷售、服務、工作日、團隊實施方面的勢頭。所以，我認為我們確實正在建立一些強勁的勢頭。對我來說，現在預測秋季活動還為時過早。

But I can tell you we're very excited about it, and I think it can be, very favorable, compared to last year's environment, which was in the midst of an election environment. And, we actually saw a slow start last year, followed by a pretty strong finish, had a really good campaign. But I think there's a lot of things that are in place now and happening over the year. That, put us in a good position for the fall and for the start of 2026.

但我可以告訴你，我們對此感到非常興奮，而且我認為與去年的選舉環境相比，情況非常有利。事實上，去年我們開局緩慢，但隨後卻表現強勁，取得了非常好的成績。但我認為現在已經有很多事情發生，而且今年還會有很多事情發生。這讓我們在秋季和 2026 年初處於有利地位。

Thank you. The next question is coming from Mark Marcon from Baird. Mark, your line is live.

謝謝。下一個問題來自貝爾德公司的馬克馬孔。馬克，你的線路已通。

Good morning and thanks for taking my questions. So 2 questions I'll start with one and then have a follow up with regards to, the health care cost. Paul, you know we've seen this before and you've handled it before just wondering, how quickly can you start making adjustments with regards to the pricing? It sounded like, by January of next year we should be.

早上好，感謝您回答我的問題。因此，我將首先問兩個問題，然後再討論醫療費用。保羅，你知道我們以前見過這種情況，你也處理過這種情況，只是想知道你多快可以開始對定價做出調整？聽起來，到明年一月我們就應該可以了。

Relatively well set, in terms of making the adjustments, but just wondering, intra quarter over the course of the year, how quickly can we make some adjustments and when we would start seeing some improvement in terms of the gross margin, per WSC, relative to last year so that's the first question and then I'll have a follow up.

就進行調整而言，安排得相對較好，但我只是想問，在一年中的某個季度內，我們可以多快做出一些調整，以及什麼時候我們才能開始看到毛利率（根據 WSC）相對於去年有所改善，所以這是第一個問題，然後我會進行跟進。

Sure, let me, it brings up the comment I made in the script about the silver lining. Obviously, we never like for this kind of thing to happen. It's disappointing, but we've been through it before. We know how to handle it and frankly, the timing of this happening early in the year like this.

當然，這讓我想起了我在劇本中對一線希望的評論。顯然，我們從來不希望發生這種事。這令人失望，但我們以前也經歷過這種情況。我們知道如何處理這個問題，坦白說，這個問題發生在今年年初，時機恰到好處。

Actually optimizes the likelihood of going into '26 in a favorable environment on this issue because we have the large majority of our client base. In fact, we have the smallest part of the client base that actually goes through their renewal bidding process in Q1.

實際上，這優化了在有利環境下進入 26 年的可能性，因為我們擁有絕大多數客戶群。事實上，我們在第一季經歷續約競標流程的客戶群是最小的。

The rest of the year, north of 80%, 85%, I don't have the exact number, but it's the large majority of our client base will renew over that period. So from a pricing perspective, Jim and his team already started the changes, which we do because we're looking at it month by month and when the quarter ends, that's when we make those kind of pricing, game plan and they've already put that in place.

今年剩餘時間，80%、85% 以上，我沒有確切的數字，但我們的大部分客戶群都會在這段時間內續約。因此，從定價的角度來看，吉姆和他的團隊已經開始了改變，我們這樣做是因為我們正在逐月關注它，當季度結束時，我們就會制定那種定價和遊戲計劃，而他們已經將其落實到位了。

We also, Jim mentioned in the book of business, we actually have had some demographic changes that are favorable. So the pricing as it happens and the demographic change should improve the margin as the year goes on. But the main thing for all of us, I believe to be focused on is, the likelihood of 2026. Being that step up into a different level of profitability, we're going through this investment period.

吉姆在商業書中也提到，我們實際上已經經歷了一些有利的人口變化。因此，隨著時間的推移，定價和人口結構的變化應該會提高利潤率。但我認為，我們所有人最應該關注的是 2026 年的可能性。隨著獲利水準邁向不同的階段，我們正在經歷這個投資期。

We're going to be much closer to the launch of the product. We're going to be selling the new offering in the marketplace over the last half of the year, and, we'll have that picture come together where we can, hopefully be able to time when things are happening into next year that will give us a better picture of how things will look.

我們距離產品的發布就更近了。我們將在今年下半年在市場上銷售新產品，並且，我們會盡可能地將這些情況匯總在一起，希望能夠預測明年事情發生的時間，以便我們更好地了解事情的狀況。

Great and then then for my follow up just are you seeing any sort of regional differences or industry differences both in terms of the you know the healthcare costs as well as the hesitancy with regards to finalize some of the hires that that were initially planned and then are you seeing any sort of any sort of lead generation from the workday partnership as yet or when would you start expecting to see that? Thank you.

太好了，那麼接下來的問題是，您是否看到了任何地區差異或行業差異，包括醫療保健成本以及在最終確定最初計劃的一些招聘方面的猶豫，然後您是否看到 Workday 合作夥伴關係帶來了任何形式的潛在客戶，或者您什麼時候開始期待看到這些潛在客戶？謝謝。

Thank you. So I'll start with the last part of that question. So what's exciting about is that the go to market plan involves putting this pod together, this product-oriented, team, that delivery team that will actually be handling or Handling, actually doing the marketing and the lead generation and the lead management of everything that we're targeting together as a partnership.

謝謝。因此我將從該問題的最後一部分開始。因此，令人興奮的是，行銷計劃涉及將這個團隊、這個以產品為導向的團隊、這個交付團隊整合在一起，該團隊將實際處理或處理、實際進行行銷、潛在客戶生成以及我們作為合作夥伴共同瞄準的所有事項的潛在客戶管理。

And so it's really a whole new approach to that whole effort that makes so much sense. It's such a perfect fit. So we're expecting to see that start. As we go, as we put this new program in place, we're looking at a July 1, kind of effective date of managing those things differently. So, we're positive about that front. Now, the first part of your question, I've lost track of it what was that first part of the question?

因此，這確實是一種全新的、非常有意義的方法。這真是太完美了。所以我們期待看到這一開始。隨著我們實施這項新計劃，我們正在考慮將 7 月 1 日定為以不同方式管理這些事情的生效日期。因此，我們對此持樂觀態度。現在，您問題的第一部分，我記不清了，問題的第一部分是什麼？

In terms of either hiring or just in terms of healthcare cost inflation.

無論是就招聘而言，還是就醫療成本通膨而言。

Yeah, so I mean, I think what we've done is built in to our going forward scenario, both of the stumbling blocks that appeared the first quarter, with the sentiment of the client base, which I believe will get better as the year progresses.

是的，所以我的意思是，我認為我們所做的一切都是建立在我們未來的規劃中的，第一季出現的兩個絆腳石，以及客戶群的情緒，我相信隨著時間的推移，這些都會變得更好。

Like I said, when some of these things move the other way, possibly on taxes or other regulation things. You also were asking, I think about geographic, we actually had some, better results in the Northeast than we'd had, in part of last year. But other than that, it's been, kind of across the board. So it, it's more of nationwide issue than it is any regional type issue.

就像我說的，當其中一些事情朝著另一個方向發展時，可能是稅收或其他監管方面。您也問到，從地理位置來看，我們在東北地區的業績實際上比去年部分地區的業績要好。但除此之外，情況已經全面了。因此，這更多的是全國性問題，而不是任何地區性問題。

Thank you. And the next question will be from Jeff Martin from Roth Capital Partners. Jeff, your line is live.

謝謝。下一個問題來自 Roth Capital Partners 的 Jeff Martin。傑夫，你的線路已通電。

Thanks, good morning. So I wanted to just kind of get your initial view, your feel, the pricing changes historically, and, we've known each other a long time here, so I've seen this happen numerous occasions. But just what's your sense of receptivity of the client base to these pricing adjustments? I would assume that.

謝謝，早安。所以我只是想了解一下你的初步看法、感受、歷史上的定價變化，而且，我們在這裡已經認識很久了，所以我見過這種情況發生過很多次。但是，您覺得客戶群對這些價格調整的接受程度如何？我認為如此。

This is a broader healthcare industry trend and, there's really attrition is not likely to take up as a result because it's, industry rate is going to go up. Just curious your thoughts there.

這是醫療保健行業更廣泛的趨勢，而且，實際上不太可能出現人員流失，因為行業流失率將會上升。只是好奇你的想法。

Yeah Jeff, thanks for the question. I would agree with you that. The healthcare cost trends are elevated and being experienced by very broadly across the whole industry. So the receptivity from a perspective to higher than normal costs is certainly out there. I do think that whenever we do this, our goal is not necessarily just to take up, pricing to every client across the whole book.

是的，傑夫，謝謝你的提問。我同意你的看法。醫療保健成本趨勢正在上升，整個行業都普遍經歷這種趨勢。因此，從某個角度來看，人們接受高於正常成本的可能性肯定是存在的。我確實認為，無論何時我們這樣做，我們的目標不一定只是為整本書中的每個客戶提供定價。

So, when we, when we're looking apricing changes, we're always taking into consideration, You know what the Population of that particular company looks like, how it may have changed from one year to the next, what's the relative level of pricing to that particular client. What is their overall profitability picture look like?

因此，當我們考慮價格變化時，我們總是會考慮，你知道那個特定公司的人口是什麼樣的，它可能在一年到下一年發生了怎樣的變化，以及針對那個特定客戶的相對定價水平是多少。他們的整體獲利狀況如何？

And so there's a lot of different factors that are going in into that and allows us to strategically select customers to implement pricing strategies on, so there's a few different groups that that falls into and kind of helps kind of balance it out a little bit, that also helps, you have to make sure that you're having the least impact on, customers that are in the best profitability, picture.

因此，有很多不同的因素會影響到這一點，使我們能夠策略性地選擇客戶來實施定價策略，因此有幾個不同的群體可以參與其中，這有助於稍微平衡一下，這也有幫助，你必須確保你對盈利能力最好的客戶的影響最小。

Yeah, just to add to that, sorry, I was just going to say just to add that those things that Jim's talking through, help to be certain that our pricing approach does mirror to a great degree, what they're facing in the marketplace. So to not have, more attrition is something that we, we've managed through many times, and we're comfortable, we're in the right position for that today.

是的，補充一點，抱歉，我只是想補充一下，吉姆談論的那些事情有助於確保我們的定價方法在很大程度上反映出他們在市場上面臨的問題。因此，為了避免更多的人員減員，我們已經多次設法解決了這個問題，並且我們感到很安心，我們今天處於正確的位置。

Right. And then with respect to the results or the, potential results from the workday partnership. How should we think about profitability of that book of business relative to what Insperity has done historically? Are we talking, significantly higher potentially contributions here, just any perspective that would be helpful.

正確的。然後是關於工作日合作關係的結果或潛在結果。相對於 Insperity 的歷史表現，我們該如何看待該業務的獲利能力？我們談論的是，這裡的潛在貢獻要高得多，任何觀點都會有所幫助。

Yeah, we haven't locked that down yet. We're going through a very detailed pricing analysis over the course of this quarter. And we anticipate that the value of this offering is a dramatic. Advantage and we believe that we're going to have higher upfront. Pricing for the deployment and implementation and a higher ongoing. Component of price that relates to the what they're receiving and the service support that we're providing.

是的，我們還沒有確定。本季我們將進行非常詳細的定價分析。我們預計此次發行的價值將是巨大的。優勢，我們相信我們將獲得更高的預付款。部署和實施的定價以及更高的持續性。價格的組成部分與他們所收到的產品以及我們提供的服務支援有關。

So we, we're not in a position to anticipate what that is yet. We are going, we're doing even more favorable things for the beta customers and for early adopters to get that launch off the way we want to, but we do expect it to be a margin. Builder in the future and we'll try to lock more of that down as we get closer to launch.

因此，我們還無法預測那是什麼。我們正在為測試版客戶和早期採用者提供更多有利條件，以按照我們希望的方式推出產品，但我們確實希望這是一個利潤空間。未來的建構器，我們將在接近發佈時嘗試鎖定更多內容。

Thank you. And the next question is coming from Andrew Polkowitz from JP Morgan. Andrew, your line is live.

謝謝。下一個問題來自摩根大通的 Andrew Polkowitz。安德魯，你的線路已通電。

Hey, good morning guys. My first question, I just wanted to ask about, within the 2025 outlook, what does assume for the balance of the year as far as net hiring and just as the second part to that question, obviously Insperity has been battle thrust battle tested through several cycles over the years.

嘿，大家早安。我的第一個問題是，在 2025 年的展望中，對於今年的淨招募情況有何假設？正如該問題的第二部分，顯然，Insperity 多年來已經經過了多個週期的考驗。

I was curious if the current period of uncertainty would compare to anything in the past or any past cycles that you've been through.

我很好奇，當前的不確定時期是否與過去的任何時期或您經歷過的任何週期相比。

So relative to employ client hiring, we definitely have diminished it down to a pretty, nominal level. We do have, you have to factor in some summer help that comes on, goes away. So there's, the little factors in there, but, are, at least we're in a growth front. I, compared to the world, having us move to positive growth and having some, growth in the forecast.

因此，相對於僱用客戶而言，我們肯定已經將其減少到相當名義上的水平。我們確實有，你必須考慮到一些夏季援助的到來和離開。雖然這其中有一些小因素，但至少我們處於成長前沿。與世界相比，我們正走向正成長，並且預測會有一些成長。

I think reflects that what we're doing day in and day out is working well, but we're not anticipating much support from the client growth in the model for this year that happens. Well, we'll all be, more excited about that. Let's see, what was the other part of the question?

我認為這反映出我們日復一日所做的事情效果很好，但我們預計今年的客戶成長模式不會帶來太大的支援。好吧，我們都會對此更加興奮。讓我們看看，問題的另一部分是什麼？

Sorry, yeah, the other part of the question was just, obviously Insperity has been through very different cycles over the years. I was curious just if there's any comparisons you could draw as far as the current SMB sentiments of past cycles.

抱歉，是的，問題的另一部分是，顯然 Insperity 多年來經歷了非常不同的週期。我很好奇，您是否可以將當前中小企業的情緒與過去的周期進行比較。

Yeah, so it's kind of the way I'm looking at it, like I said, we don't like when this happens, when there's a benefit cost, happening or instances or issues that come up. But, and it's, we decided to look at this compared to the times when we, felt the likelihood. You had to factor in, a change in trend level.

是的，這就是我的看法，就像我說的，我們不喜歡這種情況發生，當有利益成本、事件或情況或問題出現時。但是，我們決定將此事與我們感覺到可能性的時候進行比較。你必須考慮到趨勢水準的變化。

There are times, of course, when that doesn't actually happen as you, as things lay out, but this had such a variety of contributing factors that we felt it was less likely to be more of a spike that just goes away quickly. So, I think we have properly and appropriately moved toward the direction of saying, hey, let's factor in whatever we think right now and be conservative.

當然，有時這種情況實際上並不會像你想像的那樣發生，但這種情況有各種各樣的促成因素，我們覺得它不太可能出現一個很快消失的高峰。因此，我認為我們已經正確且適當地朝著這個方向邁進了，說，嘿，讓我們把我們現在想到的一切都考慮進去，並且保持保守。

Because, hey, we want to be sure that whatever we do over the course of this year puts us in a strong position for 2026. And so that was why we looked at it that way.

因為，嘿，我們希望確保今年所做的一切都能讓我們在 2026 年處於有利地位。這就是我們如此看待它的原因。

Got it. That makes sense. And just, my one follow up question, Paul, in your remarks you mentioned that, with the acceleration of, discussions with United Healthcare, you believe there's opportunities to leverage the workday partnership as part of those discussions. So I just wanted to know, could you unpack that a little bit for us?

知道了。這很有道理。保羅，我還有一個後續問題，您在發言中提到，隨著與聯合健康保險的討論加速，您認為有機會利用工作日合作夥伴關係作為這些討論的一部分。所以我只是想知道，您能為我們稍微解釋一下嗎？

Yeah, let me just say that this target market for our workday joint solution is clients that have, like we've said before, 300 to or even 150 to 5,000 employees. And let me just say that this is a really underserved market. And as we go upmarket from our small business community, there are many times where we see that their, that this client size, has other considerations to think through.

是的，我只想說，我們的工作日聯合解決方案的目標市場是擁有 300 到甚至 150 到 5,000 名員工的客戶，就像我們之前說過的。我只想說，這是一個真正服務不足的市場。當我們從小型企業社群走向高端市場時，我們多次發現，對於這種規模的客戶，需要思考其他問題。

Some want to have a self-funded benefit plan, some have our employees in so many different places, they want a different environment for their benefit plan than what our standard programs are and so we have, we've had an approach where we can bring them onto our current service where they keep their benefit plan, but us being able to come in the door together with Workday and then actually have some others with us.

有些人希望擁有自籌資金的福利計劃，有些人將我們的員工分佈在許多不同的地方，他們希望他們的福利計劃環境與我們的標準計劃不同，因此我們有一種方法，我們可以將他們納入我們目前的服務中，他們可以保留他們的福利計劃，但我們能夠與 Workday 一起進軍，然後實際上讓其他人加入我們。

For example, UnitedHealthcare, to help evaluate that element as well, is certainly a part of the strategy. We think that this size customer really needs, that person to come in there shoulder to shoulder and help evaluate the entire situation of what relates to their employees, and we believe we can do that, bringing some others to the table with us.

例如，聯合健康保險 (UnitedHealthcare) 也有助於評估這項要素，這無疑是該策略的一部分。我們認為這種規模的客戶確實需要有人與他們並肩作戰，幫助評估與其員工相關的整個情況，我們相信我們可以做到這一點，並讓其他人與我們一起參與討論。

Thank you. That does conclude today's Q&A session. I would now like to hand the call back to Mr. Sarvadi for closing remarks.

謝謝。今天的問答環節到此結束。現在我想把發言權交還給薩瓦迪先生，請他作最後發言。

Once again, I want to thank everyone for joining us today. And even though we had some difficulties this quarter, we believe we've got things on the right track, to get where we need to go through this year and looking forward to, 2026 in so many different ways, with our sales and marketing effort, with our workday relationship.

我再次感謝大家今天的出席。儘管本季度我們遇到了一些困難，但我們相信我們已經走上了正確的軌道，透過我們的銷售和行銷努力以及我們的工作日關係，我們已經達到了今年需要的目標，並展望了 2026 年。

We're on a very good track and looking forward to, giving you an update on how we're progressing, next quarter. Thank you again for participating today.

我們目前進展順利，期待下個季度向您通報我們的進展。再次感謝您今天的參與。

Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束。現在您可以斷開線路。感謝您的參與。