沛齊 (PAYX) 2019 Q2 法說會逐字稿

Welcome and thank you for standing by. (Operator Instructions) This call is being recorded. If you have any objections, you may disconnect at this point.

歡迎光臨，感謝您的耐心等待。（操作員指示）本次通話正在錄音。如果您有任何異議，可以隨時斷開連接。

Now I'll turn the meeting over to your host, Martin Mucci, President and Chief Executive Officer. You may begin.

現在我將會議交給主持人，總裁兼執行長馬丁·穆奇。你可以開始了。

Thank you, and thank you for joining us for our discussion of the Paychex Second Quarter Fiscal 2019 Earnings Release. Joining me today is Efrain Rivera, our Chief Financial Officer.

謝謝，也感謝各位參加我們對 Paychex 2019 財年第二季財報發布的討論。今天和我一起的是我們的財務長埃弗雷恩·裡維拉。

This morning, before the market opened, we released our financial results for the second quarter ended November 30, 2018. You can access our earnings release on our Investor Relations webpage. And our Form 10-Q will be filed with the SEC within the next few days. This teleconference is being broadcast over the Internet and will be archived and available on the website for approximately 1 month.

今天早上，在市場開盤之前，我們發布了截至 2018 年 11 月 30 日的第二季財務表現。您可以在我們公司的投資者關係網頁上查看我們的獲利報告。我們的 10-Q 表格將在未來幾天內提交給美國證券交易委員會。本次電話會議將透過網路進行直播，並將在網站上存檔並保留約1個月。

On today's call, I'll review the business highlights for the second quarter and Efrain will review our second quarter financial results and discuss our guidance for fiscal 2019 and then we'll open it up for your questions.

在今天的電話會議上，我將回顧第二季度的業務亮點，Efrain 將回顧我們第二季度的財務業績，並討論我們對 2019 財年的展望，然後我們將開放提問環節。

Financial results for the second quarter of fiscal 2019 reflect good progress against our objectives and growth across our major product lines. Our total revenue growth was 7% for the second quarter. Management solutions revenue grew a solid 5%. And PEO and insurance services revenues grew a strong 15% compared to the prior-year quarter.

2019 財年第二季的財務表現反映出我們在實現目標方面取得了良好進展，並且我們的主要產品線均實現了成長。第二季總營收成長了7%。管理解決方案收入實現了穩健的 5% 成長。PEO 和保險服務收入較上年同期強勁成長 15%。

Sales momentum has been positive. We added -- we have added to our sales force and are fully staffed for our peak selling season, and we have implemented a number of tools and strategies that are aiding in that momentum. With respect to client retention, we continue to be pleased with current trends in our strong client satisfaction performance.

銷售動能良好。我們已經擴充了銷售團隊，在銷售旺季到來之際人員配備齊全，我們實施了許多工具和策略來幫助保持這一勢頭。在客戶留存方面，我們對目前客戶滿意度強勁的趨勢感到滿意。

On November 26, 2018, we announced an agreement to acquire Oasis Outsourcing Group Holdings, L.P. for $1.2 billion. Oasis is the largest privately held PEO in the U.S. and an industry leader in providing HR outsourcing services.

2018 年 11 月 26 日，我們宣布達成協議，以 12 億美元收購 Oasis Outsourcing Group Holdings, L.P.。Oasis 是美國最大的私人 PEO 公司，也是人力資源外包服務領域的產業領導者。

This acquisition is anticipated to close in this quarter. Oasis is a good fit with our PEO growth strategy adding to our scale, expanding relationships with new insurance partners, creating upsell opportunities into the existing Oasis customer base and augmenting our leadership talent with the addition of an Oasis experienced leadership team.

預計此次收購將於本季完成。Oasis 與我們的 PEO 成長策略非常契合，它擴大了我們的規模，拓展了與新保險合作夥伴的關係，為現有的 Oasis 客戶群創造了追加銷售機會，並透過增加一支經驗豐富的 Oasis 領導團隊來增強我們的領導才能。

This acquisition will slightly -- will significantly advance our leadership position in HR outsourcing. And when closed, Paychex and Oasis combined will serve more than 1.4 million worksite employees through our various HR outsourcing services. We expect to finance this acquisition with $800 million of new debt along with cash on hand.

此次收購將略微——或者說顯著提升我們在人力資源外包領域的領導地位。合併完成後，Paychex 和 Oasis 將透過我們各種人力資源外包服務，為超過 140 萬個工作場所員工提供服務。我們預計將透過新增8億美元債務以及現有現金來為此次收購提供資金。

Our Paychex | IHS Markit Small Business Employment Watch shows the tight labor market continues to create a challenging hire environment for many of our clients. The workplace has been evolving partly due to this tight labor market. And as a result of technology advances, in August, we were named one of the world's most innovative companies by Forbes. And in this vein, we continue to focus on enhancing our products and technology to increase efficiencies for our clients.

我們的 Paychex | IHS Markit 小型企業就業觀察報告顯示，勞動市場緊張的局面持續為我們的許多客戶帶來嚴峻的招募挑戰。工作場所的演變部分原因在於勞動市場緊張。由於科技進步，今年 8 月，我們被《富比士》評為全球最具創新力的公司之一。秉承這一理念，我們將繼續致力於改進我們的產品和技術，以提高客戶的效率。

Recent enhancements to features and functionality in Paychex Flex will simplify the complexity of finding and retaining talent, optimize HR and overall business performance and remove obstacles that stand in the way of our clients' productivity.

Paychex Flex 近期對功能和特性的增強將簡化人才的尋找和留用流程，優化人力資源和整體業務績效，並消除阻礙客戶提高生產力的障礙。

We have enhanced our HR dashboard creating the functionality that will make it the destination for clients looking to manage and develop their workforce. This dashboard includes advanced analytics, seamless access to Paychex learning and a state-of-the-art performance management process.

我們增強了人力資源儀錶板的功能，使其成為希望管理和發展員工隊伍的客戶的理想選擇。該儀錶板包含高級分析功能、對 Paychex 學習資源的無縫存取以及最先進的績效管理流程。

New workflows and approval functionality in Paychex Flex ensure proper checks and balances occur with employee self-service activities, which have also increased. The use of self-service will drive greater efficiency for our clients.

Paychex Flex 中的新工作流程和審批功能可確保對員工自助服務活動進行適當的檢查和平衡，而這些活動也隨之增加。自助服務的使用將為我們的客戶帶來更高的效率。

During the summer, we introduced live reports with turnover and headcount data allowing clients to view consolidated data to quickly identify trends and gain meaningful insights into their business. And we're now adding the ability for clients to compare turnover rates, employee turnover rates with similar companies through our benchmarking live report.

今年夏天，我們推出了包含營業額和員工人數數據的即時報告，讓客戶能夠查看匯總數據，快速識別趨勢並獲得對其業務的有意義的見解。現在，我們新增了一項功能，讓客戶可以透過我們的基準即時報告，將員工流動率與類似公司進行比較。

These significant technology product enhancements in the last quarter support our clients in recruiting, onboarding, training and developing their employees in a market where it is increasingly difficult to find and retain employees, particularly for the small and midsize companies.

上個季度這些重要的技術產品改進，可以幫助我們的客戶在招募、入職、培訓和發展員工方面取得進步。在當前市場環境下，尋找和留住員工變得越來越困難，尤其是對於中小企業而言。

In addition to our technology, our team of over 500 HR specialists around the country serve our clients growing HR needs as states have increasingly made it more difficult and challenging to run and grow their businesses without this expertise.

除了我們的技術之外，我們遍布全國的 500 多名人力資源專家團隊也在為客戶不斷增長的人力資源需求提供服務，因為各州越來越要求企業在沒有這方面的專業知識的情況下運營和發展業務，這變得越來越困難和具有挑戰性。

We also continue to evolve our Paychex Flex API -- APIs to give clients the ability to add new worker using our API. This allows us to continue to develop new partnership opportunities with third parties that our clients engage.

我們也不斷改進 Paychex Flex API——透過 API 讓客戶能夠使用我們的 API 新增員工。這使我們能夠繼續與客戶合作的第三方開發新的合作機會。

I would like to congratulate our Paychex Insurance Agency, which has been named in the Business Insurance magazine's list of Best Places to Work in Insurance for the fourth consecutive year. This ranking improved 1 spot to #12 this year. I'm very proud of the Paychex culture that fosters engagement and growth among our employees.

我謹祝賀我們的 Paychex 保險代理公司連續第四年被《商業保險》雜誌評為保險業最佳工作場所之一。今年的排名上升了一位，排名第12名。我為Paychex的企業文化感到非常自豪，這種文化能夠促進員工的參與和成長。

I'll conclude by saying that our state-of-the-art technology, our full suite of integrated HCM product offerings and personalized service is a powerful combination that positions us for sustainable growth in our markets. Our employees make this combination successful with their hard work and commitment to our clients each and every day.

最後我想說，我們最先進的技術、全套整合式 HCM 產品以及個人化服務，是一個強大的組合，使我們能夠在市場中實現永續成長。我們的員工憑藉著每天的辛勤工作和對客戶的盡心盡責，使這一組合取得了成功。

I will now turn the call over to Efrain Rivera to review our financial results for the second quarter. Efrain?

現在我將把電話交給埃弗雷恩·裡維拉，讓他來回顧我們第二季度的財務表現。埃弗雷恩？

Thanks, Martin. Good morning. I'd like to remind everyone that today's conference call contains forward-looking statements that refer to future events and such involve risks. Please refer to our earnings release that includes a discussion of these statements and related risk factors.

謝謝你，馬丁。早安.我想提醒大家，今天的電話會議包含有關未來事件的前瞻性陳述，這些陳述涉及風險。請參閱我們的獲利報告，其中包含這些聲明及相關風險因素的討論。

In addition, I'll periodically refer to some non-GAAP measures, such as adjusted net income and adjusted diluted earnings per share. These measures exclude certain discrete tax items and onetime charges. Please refer to our press release and investor slide presentation for a discussion of these measures and a reconciliation of the second quarter to their related GAAP measures.

此外，我也會不時提及一些非GAAP指標，例如調整後的淨收入和調整後的稀釋每股盈餘。這些措施不包括某些特定稅項和一次性費用。有關這些措施的討論以及第二季度與其相關 GAAP 指標的調節表，請參閱我們的新聞稿和投資者幻燈片簡報。

I'll start by providing some of the key highlights for the quarter and then follow up with some greater detail in certain areas. I'll touch briefly on results and wrap with a review of our fiscal 2019 outlook.

我將首先介紹本季的一些關鍵亮點，然後再就某些領域進行更詳細的闡述。我將簡要介紹業績，最後回顧我們 2019 財年的展望。

Total revenue and total service revenue both grew 7% for the second quarter to $859 million and $841 million, respectively. The acquisition of Lessor Group accounted for less than 1% of the growth in service revenue.

第二季總營收和總服務收入均成長 7%，分別達到 8.59 億美元和 8.41 億美元。收購 Lessor Group 僅佔服務收入成長的不到 1%。

Expenses were up 10% for the second quarter to $552 million. Lessor accounted for approximately 2% of this growth. The remaining growth related to accelerated investment in sales and marketing, product development as part of our tax reform investments together with growth in PEO direct insurance cost.

第二季支出成長10%，達到5.52億美元。出租方約佔這一增長的 2%。剩餘的成長與加速投資銷售和行銷、作為稅收改革投資一部分的產品開發以及 PEO 直接保險成本的成長有關。

In addition, we incurred some onetime expenses relating to the Oasis acquisition. Operating income increased 1% to $307 million. Operating margin was about 36% for the second quarter. Margins were impacted by accelerated spending and growth in the PEO.

此外，我們也產生了一些與收購 Oasis 相關的一次性費用。營業收入成長1%，達到3.07億美元。第二季營業利益率約36%。PEO（專業雇主組織）支出和成長加速對利潤率造成了影響。

Our effective income tax was 23.8% for the second quarter compared to 34.8% for the respective prior-year quarter. The significant decline year-over-year on the effective tax is due to tax reform legislation. We anticipate that effective tax rate will be approximately 24% for the remainder of the year. Net income increased 19% to $236 million for the second quarter and adjusted net income increased 20%. Diluted earnings per share increased 18% to $0.65 for the second quarter. And adjusted diluted earnings per share increased 20%.

第二季實際所得稅率為 23.8%，而上年同期為 34.8%。實際稅收年減是由於稅改立法所致。我們預計今年剩餘時間的實際稅率約為 24%。第二季淨利成長19%至2.36億美元，調整後淨利成長20%。第二季稀釋後每股盈餘成長18%至0.65美元。經調整後的稀釋每股收益成長了20%。

I'll now provide some additional color in selected areas. Management solutions revenue, which includes our payroll service revenue together with our HCM products included in many of our product bundles, increased 5% to $685 million for the second quarter. This increase was driven by growth in client bases across our HCM services, including payroll ASO, retirement services and time and attendance solution. Retirement services revenue also benefited from an increase in the asset value participant funds.

接下來，我將在選定區域中添加一些額外的顏色。管理解決方案收入（包括我們的薪資服務收入以及我們許多產品組合中包含的 HCM 產品）第二季成長 5%，達到 6.85 億美元。這一成長是由我們 HCM 服務（包括薪資 ASO、退休服務以及考勤解決方案）的客戶群成長所推動的。退休服務收入也受益於參與者資金資產價值的成長。

PEO and insurance services revenue increased 15% to $155 million for the second quarter. In August, we anniversaried the acquisition of HROI. Growth was primarily driven by continued strong demand for combined PEO services, which, along with WSE growth in our existing client base, resulted in double-digit growth in client worksite employees served. Our insurance services revenue benefited from growth in the number of health and benefits applicants.

第二季度，PEO 和保險服務收入成長 15%，達到 1.55 億美元。8 月，我們慶祝了收購 HROI 週年。成長主要得益於對綜合 PEO 服務的持續強勁需求，加上 WSE 在我們現有客戶群中的成長，導致我們服務的客戶現場員工數量實現了兩位數的成長。我們的保險服務收入受益於健康和福利申請人數的成長。

Interest on funds held for clients, it increased 31% for the second quarter to $18 million, primarily as a result of higher average interest rates earned.

為客戶持有的資金利息在第二季增加了 31%，達到 1,800 萬美元，這主要是由於平均利率的提高。

Investments and income. Our goal, as you know, is to protect principal and optimize liquidity on the short-term side, primary short-term investment vehicles were banked demand deposit accounts and variable rate demand notes in our longer-term portfolio. We invest primarily in high credit quality municipal bonds, corporate bonds and U.S. government agency securities. Our long-term portfolio has an average yield of 2% and average duration of 3.1 years. Combined portfolios have earned an average rate of return of 1.9% for the second quarter, up from 1.5% last year. Average balances for interest on funds held for clients were relatively flat for the second quarter, primarily driven by the impacts of wage inflation, offset by lower client employees' withholdings resulting from tax reform.

投資和收入。如您所知，我們的目標是保護本金並優化短期流動性，主要的短期投資工具是銀行活期存款帳戶和我們長期投資組合中的浮動利率活期票據。我們主要投資於信用評級高的市政債券、公司債和美國政府機構證券。我們的長期投資組合平均報酬率為 2%，平均久期為 3.1 年。第二季綜合投資組合的平均報酬率為 1.9%，高於去年同期的 1.5%。第二季客戶資金利息平均餘額相對平穩，主要受薪資通膨的影響，但被稅制改革導致客戶員工預扣稅款減少所抵銷。

Year to date. And let me briefly summarize the 6-month period. Management solutions revenue increased 4%, approximately 1% was contributed by Lessor. PEO and insurance services revenue increased 26%, 17% on an organic basis. Interest on funds held for clients increased 28%, driven by interest rate increases. Total revenue, up 8%. Operating margins were 36.4%, tempered somewhat by accelerated investments in the business and growth in PEO direct insurance costs. Net income increased 70%. And adjusted net income increased 19%. Diluted earnings per share increased 18%. And adjusted diluted earnings per share increased 19%.

今年迄今為止。讓我簡要總結一下這六個月的情況。管理解決方案收入成長 4%，其中約 1% 來自出租人。PEO 和保險服務收入成長 26%，其中有機成長 17%。受利率上升的影響，客戶資金利息增加了 28%。總收入成長8%。營業利益率為 36.4%，但受到業務投資加速和 PEO 直接保險成本成長的影響。淨利潤成長了70%。調整後淨收入成長19%。稀釋後每股收益成長18%。經調整後的稀釋每股收益成長了19%。

I'll now walk you through highlights on our financial position. It remained strong with cash and total corporate investments of $769 million as of November 30, 2018. Funds held for clients as of November 30 were $3.7 billion compared to $4.7 billion as of May 31, 2018. Funds are held for clients, as you know, very widely on a day-to-day basis and averaged $3.7 billion for the second quarter and 6 months.

接下來我將帶您了解我們財務狀況的要點。截至 2018 年 11 月 30 日，該公司現金及企業總投資額達 7.69 億美元，財務狀況仍強勁。截至 2018 年 11 月 30 日，為客戶持有的資金為 37 億美元，而截至 2018 年 5 月 31 日為 47 億美元。如您所知，資金每天都在為客戶廣泛持有，第二季和上半年的平均持有量為 37 億美元。

Our total available-for-sale investments including corporate investments in funds held for clients reflected net unrealized losses of $45 million as of November 30, 2018, compared with $38 million as of May 31, 2018.

截至 2018 年 11 月 30 日，我們可供出售的投資總額（包括為客戶持有的基金中的企業投資）反映出未實現淨虧損 4,500 萬美元，而截至 2018 年 5 月 31 日，該虧損為 3,800 萬美元。

Total stockholders' equity was $2.4 billion as of May -- as of November 30, 2018, reflecting $403 million in dividends paid and $33 million worth of shares repurchased during the first half of fiscal 2019. Our return on equity for the past 12 months is a very respectable 45%.

截至 2018 年 11 月 30 日，股東權益總額為 24 億美元（截至 5 月），其中包括 2019 財年上半年支付的 4.03 億美元股利和回購的 3,300 萬美元股票。過去 12 個月，我們的股本回報率達到了非常可觀的 45%。

Cash flows from operations were $497 million for the 6 months, a decrease of 4% from the same period last year. The decrease was driven by working capital fluctuations related to timing around collections and related tax payments for our combined PEO business and a decrease in accrued liability balances in connection with determination of certain licensing agreements. Other impacts of noncash adjustments were offset within working capital fluctuations.

上半年經營活動產生的現金流量為 4.97 億美元，比去年同期下降 4%。下降的原因是與我們合併後的 PEO 業務的收款和相關稅款支付的時間相關的營運資金波動，以及與確定某些許可協議相關的應計負債餘額的減少。非現金調整的其他影響被營運資本波動所抵銷。

Fiscal 2019 guidance. I remind you that our outlook is based on current view of economic conditions continuing, no significant changes that we give guidance, excluding any anticipated impacts from the Oasis acquisition and then follow with the anticipated impact of Oasis on our results.

2019財年業績指引。我提醒各位，我們的展望是基於對當前經濟狀況持續的看法，沒有重大變化，我們給出的指引不包括 Oasis 收購可能帶來的任何預期影響，接下來我們將討論 Oasis 收購對我們業績的預期影響。

We have tightened some of the guidance we previously provided. Revised guidance is as follow. Interest on funds held for clients anticipated growth 20% to 25%. We assume no interest rate rises after this anticipated December raise. We'll see if that occurs today. Investment income net is anticipated to be in the range of $10 million to $15 million. Net income and diluted earnings per share anticipate to grow approximately 4%. And adjusted diluted earnings per share anticipated to increase now in the range of 11% to 12%.

我們收緊了之前提供的一些指導意見。修訂後的指引如下。為客戶持有的資金預計將成長 20% 至 25%。我們假設在預期的12月升息之後不會再有利率上漲。我們看看今天會不會發生這種情況。預計投資淨收益將在 1,000 萬美元至 1,500 萬美元之間。預計淨利潤和稀釋後每股收益將成長約 4%。預計調整後稀釋每股盈餘將成長 11% 至 12%。

Other aspects of our guidance remain unchanged for what we have previously provided. The guidance is reiterated as follow: management solutions revenue is anticipated to grow by approximately 4% for fiscal 2019; PEO and insurance services revenues anticipated to grow in the range of 18% to 20%; total revenue is anticipated to grow in the range of 6% to 7%; operating income as a percent of total revenues is anticipated to be approximately 37%; the effective income tax rate for fiscal 2019 is expected to be approximately 24%; and adjusted net income, non-GAAP, expected to increase again in the range of 11% to 12%.

其他方面的指導意見與我們先前提供的指導意見保持一致。重申以下業績指引：2019 財年管理解決方案收入預計增長約 4%；PEO 和保險服務收入預計增長 18% 至 20%；總收入預計增長 6% 至 7%；營業收入佔總收入的百分比預計約為 37%；2019 財年實際收入 10% 淨收入約為 24%；

I'll now provide you with a little additional color on the second half of the year. We anticipate that management solutions revenue growth in the second half of fiscal 2019 will be approximately 4%, with Q3 at or above this rate and Q4 below this rate, due primarily to the anniversarying of the Lessor acquisition.

接下來，我將為大家補充一些關於下半年的情況。我們預計 2019 財年下半年管理解決方案營收成長約為 4%，其中第三季將達到或超過該成長率，而第四季將低於該成長率，這主要是由於租賃公司收購週年紀念日所致。

For PEO and insurance services revenue, growth in the first half was significantly higher due to the timing of the HROI acquisition. We anticipate growth for Q3 to be in the range of 15% to 17% and for Q4 to be in the range of 10% to 13%, due to a challenging -- compared with strong PEO growth in the later part of fiscal 2018.

由於 HROI 收購的時機，PEO 和保險服務收入上半年的成長明顯更高。由於面臨挑戰——與 2018 財年下半年 PEO 業務的強勁增長相比——我們預計第三季度增長率將在 15% 至 17% 之間，第四季度增長率將在 10% 至 13% 之間。

Assuming the completion of Oasis, the Oasis acquisition, which we expect to occur in future, we anticipate that Oasis will have an incremental impact on revenue in the range of $155 million to $175 million for the balance of the year.

假設 Oasis 收購完成（我們預計未來會發生），我們預計 Oasis 將在今年剩餘時間內對營收產生 1.55 億美元至 1.75 億美元的增量影響。

We expect that approximately 45% of this incremental revenue will occur in Q3 and the remainder will occur in Q4. Excluding onetime cost related to the acquisition, we anticipate that Oasis will have minimal impact on our diluted earnings per share for the year. With onetime acquisition cost, we anticipate that the acquisition will be approximately $0.03 diluted for fiscal 2019, primarily due, as I said, to the acquisition cost.

我們預計，這部分新增收入的約 45% 將在第三季實現，其餘部分將在第四季實現。除與收購相關的一次性成本外，我們預計 Oasis 對我們本年度稀釋後每股收益的影響微乎其微。加上一次性收購成本，我們預計此次收購將使 2019 財年的每股收益稀釋約 0.03 美元，正如我所說，這主要是由於收購成本造成的。

And now with those comments, I will turn it back to Marty.

現在，說了這麼多，我把麥克風交還給馬蒂。

Great. Thanks, Efrain. Operator, we'll now open the call to questions, please.

偉大的。謝謝你，埃弗雷恩。接線員，現在開始接受提問。

(Operator Instructions) Our first question comes from the line of Kevin McVeigh from Crédit Suisse.

（操作說明）我們的第一個問題來自瑞士信貸的 Kevin McVeigh。

Yes, just real quick -- really good results. Obviously, there's been a lot of unevenness in the market. Any change at the margin in terms of the client discussions. I mean, it seems like the payroll really scaled up nice, so really nothing in the fundamentals. But anything you'd call out just given obviously some of the noise that's been occurring since you last reported?

是的，速度很快——效果非常好。顯然，市場存在著許多不平衡現象。客戶討論中任何細微的變化。我的意思是，工資總額似乎確實大幅增加了，所以基本面方面並沒有什麼問題。但鑑於您上次報道以來出現的一些幹擾因素，您有什麼要特別指出的嗎？

No, I think what we're finding is that we're getting -- we're seeing momentum on the sales side. And we're seeing retention numbers that were very -- that are very positive and heading back toward our all-time best on the client retention. So we're feeling good about the momentum in the first half of the year. Of course, we're heading into selling season. We're in selling season which is really an important time for us. And we're feeling good at this point. We're seeing business kind of environment pretty good and certainly in need of HR outsourcing in particular because of all the things that are going on with state regulations in particular, and I think that's really helping what you're seeing is kind of that double-digit growth in worksite employees, particularly in the PEO business. So we're seeing a good need for the HR Services and all of our products.

不，我認為我們發現的是，我們在銷售方面看到了成長勢頭。我們看到客戶留存率非常高，正在恢復到我們有史以來最高的客戶留存率水準。因此，我們對上半年的發展動能感到樂觀。當然，我們即將進入銷售旺季。現在正值銷售旺季，這對我們來說是一個非常重要的時期。目前我們感覺良好。我們看到商業環境相當不錯，而且由於各州法規的變化，企業對人力資源外包的需求也確實很高，我認為這確實有助於企業實現兩位數的現場員工成長，尤其是在 PEO 業務方面。因此，我們看到市場對人力資源服務和我們所有產品都有很好的需求。

And just, Marty, following up on that client retention at all-time high. What's been driving that? Are you seeing any kind of trend in the smaller businesses as opposed to larger? Just really nice job there. And we -- should we expect that to continue?

還有，Marty，請繼續跟進顧客留存率創歷史新高的情況。是什麼原因導致了這種情況？您是否觀察到小型企業與大型企業之間存在某種趨勢？幹得真棒。那麼，我們應該預期這種情況會持續下去嗎？

Yes, I think, as I said, we're heading -- kind of we're getting close to that all-time high in retention we had. I think we're still seeing the same kind of number of businesses going out of business. I think we're seeing an improvement in those that left for service or price. I would say, the competitive environment is about the same. There's always some pressure there but we seem to be doing very well from a retention standpoint and from a selling standpoint. We've got some momentum there. So I don't think -- we're seeing a lot different competition, and I think we're really holding our own and showing some momentum on the sales side.

是的，我認為，正如我所說，我們正在接近我們曾經達到的用戶留存率歷史最高水準。我認為我們仍然看到同樣數量的企業倒閉。我認為，那些因為服務或價格原因而離開的客戶，情況正在好轉。我認為，競爭環境基本上相同。雖然總是會有一些壓力，但從客戶留存率和銷售角度來看，我們似乎都做得非常好。我們在這方面取得了一些進展。所以我覺得——我們面臨的競爭情況大不相同，我認為我們確實保持了自己的地位，並且在銷售方面展現出了一些勢頭。

Our next question comes from the line of James Berkley from Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 James Berkley。

Just a quick question on Oasis. Could you just talk about what you expect the accretion to look like there on a cash basis? Just given that you tend to accelerate D&A for tax purposes. I would think it looks even more attractive on the cash side. But just wanted to hear your thoughts.

關於Oasis，我有個小問題。您能否談談您預計該區域的增值情況（以現金為基礎）？鑑於您出於稅務目的傾向於加速折舊和攤提。我覺得從現金角度來看，它看起來更有吸引力。只是想聽聽你的想法。

Yes. I -- James, I'll hold that a little bit. We do expect it on a cash basis for it to be accretive. Their margins are at or above our margins on PEO. So that will be a positive going forward. We'll talk more once we have closed the acquisition in Q3. But if -- we think it's going to be a nice add from a cash basis.

是的。我──詹姆斯，我先幫你拿著。我們預計，從現金流角度來看，這將帶來收益成長。他們的利潤率與我們在PEO方面的利潤率持平或更高。所以這對未來的發展來說是個正面的面向。我們將在第三季完成收購後再進行更多討論。但是——我們認為從現金流角度來看，這將是一筆不錯的收益。

Okay. And then obviously, that was the largest private PEO provider in the U.S. And if you could just comment on what other M&A opportunities you see and your thoughts on timing? Your comfort level with leverage and just how you think about your broader PEO strategy going forward? That will be very helpful.

好的。很顯然，那家公司是美國最大的私人PEO（專業雇主組織）提供者。您能否談談您認為還有哪些併購機會，以及您對時機的看法？您對槓桿的接受程度如何？以及您如何看待未來更廣大的PEO策略？那將非常有幫助。

Sure. I think from an acquisition, we're always looking at a number of opportunities. I think certainly there's a number of other PEO opportunities there, and we're looking in. And Oasis was pretty active. As a private company, they were pretty active on the acquisition side, particularly on the smaller ones in being able to integrate those in. So we think that gaining scale on the PEO business is very good. Obviously, that was part of this move. It gains us more scale with the insurance carriers, it picks up new markets. And we've been able to do something -- we'll be able to do some things, I think, with Oasis clients that if they don't fit in the underwriting, we can get them to our insurance agency, which is the 20th largest insurance agency in the country right now. So we feel there's a lot of opportunity on the PEO side. In other areas, there's some acquisitions as well. I think we've been close on a few, not too worried about. I mean, we're always watching for the leverage but from a debt perspective but this was -- I think we will be very successful in getting a good debt placement here, and I think that given our balance sheet and cash flows, that we'll have other opportunity to do more if we need to do it. We're always watching for that shareholder return and be sure that we're using cash obviously in the best way for our shareholders. I think we've got a long track record of that. But acquisitions are certainly always on the table. And we're looking at a number of things.

當然。我認為從收購的角度來看，我們總是會考慮很多機會。我認為那裡肯定還有其他一些 PEO 機會，我們正在考察。綠洲樂隊當時相當活躍。作為一家私人公司，他們在收購方面非常活躍，尤其是在收購規模較小的公司方面，能夠有效地將它們整合到自己公司中。所以我們認為，擴大 PEO 業務規模是非常好的。顯然，這是這次行動的一部分。它能幫助我們擴大與保險公司的合作規模，並開拓新的市場。我們已經能夠做一些事情——我認為我們能夠為 Oasis 的客戶做一些事情，如果他們不符合承保條件，我們可以把他們介紹到我們的保險代理機構，該機構目前是全國第 20 大保險代理機構。因此，我們認為在 PEO 方面有很多機會。其他領域也有一些收購。我覺得我們有些事情做得差不多了，所以不太擔心。我的意思是，我們一直在關注槓桿率，但從債務的角度來看，我認為我們在這裡能夠非常成功地獲得良好的債務融資，而且我認為，鑑於我們的資產負債表和現金流，如果我們需要的話，我們還有機會做更多的事情。我們始終關注股東回報，並確保以對股東最有利的方式使用現金。我認為我們在這方面有著良好的記錄。但收購方案當然始終都在考慮範圍內。我們正在研究很多方面。

Our next question comes from the line of Jason Kupferberg from Bank of America Merrill Lynch.

我們的下一個問題來自美國銀行美林證券的傑森庫柏伯格。

So I just wanted to circle back. If we think about last quarter, you guys had given some kind of quarterly layout on payroll, what you were thinking about the respective growth rates. And I think for Q2 and 3Q, the expectation was to be at, at least 3%, if I'm not mistaken, because that's the high end of the full year 2% to 3% guide. And I think you came in at 2.8% in Q2. Are you still thinking Q3 will be at least 3%? Or any changes around the edges in the thought process there?

所以我只是想再補充一點。如果我們回顧上個季度，你們曾經給過一些關於薪資的季度計劃，以及你們對相應成長率的看法。我認為，第二季和第三季的預期至少是 3%，如果我沒記錯的話，因為這是全年 2% 到 3% 指導目標的上限。我認為你們第二季的成長率是 2.8%。你仍然認為第三季至少會達到3%嗎？或者說，在思考過程的某些方面發生了一些變化？

Yes, Jason, I don't see any reason why that wouldn't be the case. So we feel pretty comfortable about where things are. And just to add a little bit of color about why we feel comfortable. Martin mentioned, I think sales process has -- we've seen some momentum there. Retention has been good. And then pricing has been stable. So I think all of those 3 say we should be certainly in that range.

是的，傑森，我看不出有什麼理由不這樣。所以我們對現狀感到相當滿意。最後再補充一點，解釋一下我們為什麼感到舒適。Martin提到，我認為銷售流程已經取得了一些進展——我們已經看到了一些勢頭。用戶留存率一直不錯。而且價格一直保持穩定。所以我認為這三個人都認為我們絕對應該在這個範圍內。

Okay. And just wanted to go little deeper on some of the macro dynamics. But I know you guys do fairly regular surveying of the small business base. So just in terms of confidence and sentiment in sort of forward-looking indicators like it sounds like everything was fine in this latest quarter but as you head into the new calendar year, are you detecting any changes at all just in terms of hiring intentions or prospects for new business creation?

好的。我想更深入地探討一下一些宏觀動態。但我知道你們會定期對小型企業群體進行調查。所以，就信心和情緒等前瞻性指標而言，聽起來最近一個季度一切都很好，但是隨著新的一年到來，您是否發現招聘意向或新業務創建前景方面有任何變化？

Jason, I think the interesting thing is -- the one thing we keep hearing is it's just tough to get employees. And so for small to midsize businesses, it's tough for them to recruit and retain employees. And one of the positives for us because of that is they're looking for more benefit, they're looking to offer insurance, they're looking to be able to have better benefit enrollment kind of opportunities, better technology, self-service type of technology for their employees. And so generally, I think you still look at like the NFIB optimism, the business indexes are all still near historic highs. And consumer optimism is high, so -- consumer confidence. And so everything is high. But there is this concern about can I get the employees. And we have heard where some small to midsize businesses have -- and some of our surveys have actually said, hey, I've turned down some business because I just can't get enough employees to do it. But there's still -- the good news is there's optimism that there is work to do. It's just, with the low unemployment rate, can I attract enough employees to get the work done.

傑森，我覺得有趣的是──我們一直聽到的一件事就是招募很困難。因此，對於中小企業來說，招募和留住員工是一件很困難的事。對我們來說，積極的一面是，他們正在尋求更多福利，他們希望提供保險，他們希望能夠為員工提供更好的福利登記機會、更好的技術、自助服務技術。因此總的來說，我認為你仍然可以從 NFIB 的樂觀情緒中看出，商業指數仍然接近歷史高點。消費者樂觀情緒高漲，因此──消費者信心也很高。所以所有東西都很貴。但是，我擔心能否招募員工。我們也聽說一些中小企業——我們的一些調查也證實了這一點——表示，嘿，我拒絕了一些業務，因為我根本找不到足夠的員工來完成這些業務。但好消息是，人們仍然樂觀地認為還有很多工作要做。問題是，在失業率這麼低的情況下，我能否吸引到足夠的員工來完成這項工作。

Okay. And just last for me. In terms of reinvestments, I just wanted to catch up on that topic. At least for ESR model, your margins came in better than expected. I know you're not changing the full year forecast. So quarterly cadence of reinvestments, just commentary there for the back half. And then just your latest thinking on whether or not you think these reinvestments could cause a little bit of uptick in underlying revenue growth as we start to think ahead to next fiscal year directionally?

好的。最後，就留給我吧。關於再投資方面，我只是想了解這個主題。至少就 ESR 模型而言，您的利潤率比預期要好。我知道你不會改變全年的預測。所以，季度再投資的節奏就是這樣，這只是對下半年的一些評論。那麼，您最近的想法是，這些再投資是否能稍微提振我們未來一年的潛在營收成長？

Yes. I'd say this. So we did have a little bit lighter spending then we had gated in the quarter. We -- it won't affect the back half of the year. Our perspective is if it wasn't spent, it wasn't spend. But I think the other part of the margin story was that revenue came in a little bit better than our plans had anticipated. And so that dropped down to the bottom line. So we see strength. We'll see what happens in the back half of the year. But it was a combination of both.

是的。我會這麼說。所以，我們的支出確實比本季預期的要少一些。我們——這不會影響下半年。我們的觀點是，如果沒花掉，那就是沒花掉。但我認為利潤率方面還有另一部分原因，那就是收入比我們預期的要好一些。所以，這最終影響到了最基本的因素。所以我們看到了實力。我們拭目以待下半年的發展。但實際上是兩者的結合。

Our next question comes from the line of Ramsey El-Assal from Barclays.

我們的下一個問題來自巴克萊銀行的拉姆齊·埃爾-阿薩爾。

I wanted to ask about the Fed and the path of rate hikes. I know you only have a single additional raise contemplated in your guidance. But would a slower pace of increase by the Fed cause you to change any internal plans about business investment or timing for investment or headcount additions? Or is there any other business impact? Or is your internal plans very much aligned with your sort of external guidance?

我想詢問一下聯準會以及升息路徑。我知道你的指導方針中只考慮過一次額外加薪。但是，如果聯準會升息速度放緩，您是否會改變有關企業投資、投資時機或增加員工人數的內部計劃？或是有其他業務影響嗎？或者說，你的內在計畫與你所受到的外部指導高度一致嗎？

It's pretty much aligned with the external guidance, Ramsey. It really wouldn't change. I think when we came into the year, our thought process was -- we look at the same data you all look at. And we looked at the probability of raises. They were talking about 3 and 4 in calendar '19. We weren't buying it at the moment. And I think now that's become a little bit more uncertain. But it doesn't -- it -- further raises are more uncertain. But it doesn't affect what we do. And I would say, it's interesting the macro backdrop has been uncertain and volatile. A lot of -- if you look at the vectors in our business, they're pointing up, not down. They're not pointing neutral, they're pointing up. And so when we look at the wealth of data that we have, everything from business bankruptcies to the clients who go out of business to sales to new clients, it looks positive to us. So now we're in a situation where things can change rapidly. But nothing that we're seeing says there are clouds on the horizon certainly in the back half of our fiscal year.

這與外部指導意見基本一致，拉姆齊。情況真的不會改變。我認為，年初的時候，我們的想法是──我們關注的是你們都在關注的相同數據。我們也研究了加薪的可能性。他們當時在討論2019年曆上的3和4。我們當時並不認同這種說法。而現在，我認為情況變得更不確定了。但事實並非如此——進一步加薪更加不確定。但這並不影響我們的行動。而且我認為，宏觀經濟背景一直充滿不確定性和波動性，這一點很有趣。很多——如果你看看我們業務的各個方面，它們都是向上發展的，而不是向下發展的。它們不是指向中立位置，而是指向上方。因此，當我們看到我們擁有的大量數據時，從企業破產到倒閉的客戶，再到新客戶的銷售情況，所有數據都顯示情況良好。所以現在的情況是，事態可能迅速改變。但就目前來看，沒有任何跡象顯示本財年下半年會出現任何不利因素。

Good. That's great to hear. And doesn't mean that we can't talk ourselves into a recession.

好的。聽到這個消息真是太好了。但這並不代表我們不會自己導致經濟衰退。

Yes.

是的。

It would do the same. On another topic, I wanted to ask you about sort of the sales process and strategy in PEO. I mean, you just rolled up Oasis. There's a handful of larger players out there like yourselves. There's a bunch of smaller folks out there as well. From the standpoint of prospective customer, how do you close that sale? Is there a price -- a big price discovery process? Is it expectation of service levels? What is it that gets them to go into your camp rather than to one of your competitors?

它也會這樣做。另外，我想問關於PEO的銷售流程和策略的問題。我的意思是，你簡直把綠洲樂團毀了。像你們這樣的大型企業還有一些。還有很多規模較小的公司。從潛在客戶的角度來看，你如何促成交易？是否存在價格——是否存在大規模的價格發現過程？這是對服務水準的預期嗎？是什麼讓他們選擇加入你的陣營而不是你的競爭對手？

Yes, I think it's always -- it's not as much price, I think. It's going to be really the value of the technology and the service. And what -- we've been in this -- Paychex has been in this for 20 years, the outsource -- HR outsourcing through both PEO and ASO. And we have 500 HR specialists around the country that are dedicated to helping small and midsize business clients with their needs. So you have good technology that they can use to enroll benefits -- help their employees enroll in benefit. Good insurance options for them, particularly on the PEO side. The larger you get, the more options you're going to have from carriers. And those are really important benefits right now. As I said earlier on -- because of the competitiveness of attracting and retaining employees. And then it's going to be that service piece. So from a client’s perspective, it is getting more challenging every day whether it's marijuana use and whether it's legal or not whether to do drug testing, how to handle drug testing, immigration, minimum wage, paid family leave, you need an HR support as a small to midsize business. New York just came out with the need for a non-harassment training that has to be done by pretty much the middle of next year for a company of any size basically. I mean, these are a lot of needs. And that's how you sell the HR outsourcing ASO or PEO. And PEO is becoming much more comfortable. And things that -- well, it's not just limited to Florida and Texas, it's a real need. And in this competitive environment for employees, that's how you sell it as your service and your technology.

是的，我覺得一直都是──我覺得價格不是那麼重要。真正重要的是技術和服務的價值。而且——我們一直從事這個行業——Paychex 已經從事這個行業 20 年了，外包——人力資源外包，包括 PEO 和 ASO。我們在全國各地擁有 500 名人力資源專家，致力於協助中小企業客戶滿足他們的需求。所以你們擁有很好的技術，可以用來登記福利——幫助他們的員工登記福利。為他們提供良好的保險選擇，尤其是在 PEO 方面。你的手機容量越大，業者提供的選擇就越多。這些都是目前非常重要的好處。正如我之前所說——這是因為吸引和留住員工的競爭非常激烈。接下來就是服務環節了。因此，從客戶的角度來看，每天都面臨著越來越大的挑戰，無論是大麻的使用及其合法性，還是是否進行藥物檢測、如何處理藥物檢測、移民、最低工資、帶薪家庭假等等，作為中小企業，您都需要人力資源方面的支持。紐約州剛剛發布了一項規定，要求所有規模的公司都必須在明年年中之前完成反騷擾培訓。我的意思是，這需求真是不少。這就是銷售人力資源外包服務（ASO 或 PEO）的方式。PEO（專業雇主組織）也變得越來越舒適。而且，這不僅限於佛羅裡達州和德克薩斯州，而是一種真正的需求。在現今競爭激烈的員工環境中，這就是你推銷你的服務和技術的方式。

A related final question for me, a brief one. You basically also called out this Flex API and increased kind of capability to plug into potential partners. The QuickBooks integration, you talked about Facebook integration, social component on the last call, are you going to lean deeper into sort of a partnership strategy to enhance the client bundle, the value proposition? Or is this just -- is this a trend? Or is this more just sort of a string of kind of one-offs?

最後一個相關的問題，比較簡短。您基本上也提到了這個 Flex API，並增強了與潛在合作夥伴對接的能力。您上次通話中談到了 QuickBooks 整合、Facebook 整合和社交組件，您是否會更深入地發展某種合作夥伴關係策略，以增強客戶組合和價值主張？或者這只是一種趨勢？或者這只是一連串零星的個案？

Yes, it's a great question. I think what we've always had -- kind of the value of Paychex has been I can offer you that full suite of products on our Flex system, everything fully integrated, real time, mobile-first design, single employee record kind of thing. And we still offer that. However, you do find particularly in the mid-market is more clients who say, hey, look, I'm used to having this record keeper for my retirement services or I'm used to this time and attendance solution and I'm just not ready to get off of all of that yet and switch to you. So what we have found over time is particularly in that mid-market we're opening up more and more APIs to say, hey, look, you can stay with who you have if you want it. And of course, partnerships are always powerful from -- if you pick the right ones to grow your base and do what you do best and things like QuickBooks were a good fit particularly for the small and some of the lower end of the midsize for us. So it's just a way of broadening out whatever clients want, they can get from us. However, the real value, I think, we bring still is that on Flex, you can have the full suite of products, you can have retirement. Nobody else provides the suite of products that we provide with a single employee record in the technology and service.

是的，這是一個很好的問題。我認為我們一直以來所擁有的——Paychex 的價值在於，我可以在我們的 Flex 系統上為您提供全套產品，所有功能完全集成，實時、移動優先設計、單一員工記錄等等。我們仍然提供這項服務。不過，尤其是在中端市場，你會發現更多的客戶會說：“嘿，聽著，我已經習慣了用這個記錄員來管理我的退休服務，或者我已經習慣了這種考勤解決方案，我還沒準備好放棄所有這些，轉而使用你們的服務。”因此，隨著時間的推移，我們發現，尤其是在中端市場，我們正在開放越來越多的 API，告訴大家：嘿，如果你願意，你可以繼續使用你現有的服務。當然，合作夥伴關係總是強大的——如果你選擇合適的合作夥伴來擴大你的客戶群並做你最擅長的事情，像 QuickBooks 這樣的產品就非常適合我們，特別是對於小型企業和一些規模較小的中型企業而言。所以這只是擴大客戶需求範圍的一種方式，無論客戶想要什麼，我們都能滿足他們。然而，我認為我們帶來的真正價值在於，在 Flex 平台上，您可以擁有全套產品，您可以擁有退休保障。沒有其他公司能夠像我們一樣，在技術和服務方面，僅用一個員工記錄就能提供如此全面的產品套件。

Our next question comes from the line of Bryan Keane from Deutsche Bank.

我們的下一個問題來自德意志銀行的布萊恩·基恩。

I wanted to ask about Oasis. Just what's the organic revenue growth profile of the company? And then what do you expect going forward? Or is there any synergies between the 2 companies that could push it higher?

我想問關於綠洲樂隊的事。該公司的有機收入成長如何？那麼，你對未來有什麼預期呢？或者說，這兩家公司之間是否存在任何協同效應，可以推動股價進一步上漲？

Yes, Bryan, it's an upper single-digit grower. They also did some inorganic. We think that will be part of the mix which can drive that organic growth higher. There are certainly synergies between the Oasis business and our existing PEO business as we got 2 of them that we'll be working on aggressively. The thing that we're in the process of looking at also is look, there is -- as you've seen our results over the last certainly 3 to 4 quarters, PEO is growing pretty rapidly. And what we want to do is fuel growth not necessarily cut cost out of the business, it's not one of those acquisitions. And one of the issues that we'll -- we're looking very closely at is do we add more sales people to get even greater coverage than we currently have. So we're looking -- we're trying to balance the cost savings with additional investments to fuel even faster growth for Oasis.

是的，布萊恩，它的漲幅在個位數以上。他們也做了一些無機物加工。我們認為這將是推動有機成長的因素之一。Oasis 業務與我們現有的 PEO 業務之間肯定存在協同效應，因為我們有 2 家這樣的公司，我們將積極開展相關工作。我們目前正在研究的另一個問題是，正如您在過去 3 到 4 個季度的業績中所看到的，PEO 的成長速度非常快。我們想要做的是促進成長，而不是削減業務成本，這不是那種收購。我們正在密切關注的一個問題是，是否要增加銷售人員，以獲得比目前更大的覆蓋範圍。所以我們正在努力——我們正在嘗試在節省成本和增加投資之間取得平衡，以推動 Oasis 實現更快的成長。

Yes, I think, Bryan, when you -- this is a kind of a perfect timing from a market standpoint, the need for HR and the acceptance of PEO in particular. Now you got 2 teams. As I said, we've been doing this for 20 years. We got a very experienced team. They have got a very experienced team. They've been doing acquisitions of smaller PEOs. They've got insurance carrier relationships that we haven't had. They've got other markets where they've got more scale that we haven't had. It's a good combination at a good time in the market to really grow. And obviously, through the double-digit worksite employee growth, we've already been doing pretty consistently. We expect this has really got a lot of more, as Efrain said, more revenues in the top line synergies. This isn't so much about cost cutting as it is about growing the business in a perfect time in the market.

是的，我認為，布萊恩，從市場角度來看，這是一個完美的時機，尤其是對人力資源的需求以及對 PEO 的接受度。現在你們有兩隊了。正如我所說，我們從事這項工作已經20年了。我們擁有一支經驗豐富的團隊。他們擁有一支經驗豐富的團隊。他們一直在收購規模較小的專業雇主組織（PEO）。他們與保險公司建立了我們所沒有的合作關係。他們在其他市場擁有我們所不具備的規模。這是個好組合，而且現在正是市場好時機，有利於業務成長。顯然，透過兩位數的工作場所員工成長率，我們已經一直保持著相當穩定的成長。正如埃弗雷恩所說，我們預計這將帶來更多收入，實現更多營收協同效應。這與其說是削減成本，不如說是在市場行情最佳時期發展業務。

Okay. That's helpful. And then just curious to get an update. Marty, I know you talked about increasing the sales force. Just trying to see if you can quantify that going into the selling season here?

好的。那很有幫助。只是好奇想了解最新情況。馬蒂，我知道你之前說過要擴充銷售團隊。我只是想看看你能不能量化一下，尤其是在銷售旺季來臨之際？

I think we've been fully staffed pretty much for this year. So we're up, I think, 3% to 4%, maybe closer to 5% if you put all sales teams in there. And we're feeling very good about that. We have been able to fill those spots particularly in mid-market and in the PEO and ASO services. And they've got some nice momentum as we go into this -- as we're in this peak selling season.

我認為我們今年的人員配備基本上已經全部到位了。所以我覺得我們成長了 3% 到 4%，如果把所有銷售團隊都算進去，可能就會接近 5%。我們對此感到非常滿意。我們已經成功填補了這些空缺，尤其是在中端市場以及 PEO 和 ASO 服務領域。而且隨著我們進入銷售旺季，他們也獲得了不錯的勢頭。

Our next question comes from the line of Lisa Ellis from MoffettNathanson.

我們的下一個問題來自 MoffettNathanson 公司的 Lisa Ellis。

So question on Oasis and HROI. I mean, as you guys know, we'd love these businesses. But I know historically, concerned factor, you guys have raised about doing acquisitions in the space that's been around getting comfortable with the insurance risk and the underlying book. So can you just talk about how, with a company like Oasis, you managed that and get comfortable with that and, I guess, building on the experience with HROI?

所以，關於Oasis和HROI的問題。我的意思是，你們也知道，我們非常希望這些企業能夠進駐。但我知道，從歷史上看，你們曾提出一個令人擔憂的因素，那就是在保險風險和基礎業務方面進行收購。那麼，您能否談談在像 Oasis 這樣的公司裡，您是如何管理並適應這種情況的，以及您是如何利用 HROI 的經驗來發展業務的？

Yes. Sure. I think, obviously, the due diligence, we're very careful on that in how we look at the company. They have not taken risk. And we felt based on some not only our own but some third-party analysis that they were in very good shape from a book of business. And so we are careful about who we pick. But we are very pleased with how Oasis look to us and the way they've been doing business and what their book of business look like.

是的。當然。我認為，很顯然，在盡職調查方面，我們非常謹慎地審視每一家公司。他們沒有承擔風險。我們不僅根據我們自己的分析，還根據一些第三方分析，認為他們的業務狀況非常好。因此，我們在挑選人選時非常謹慎。但我們對 Oasis 的現狀、經營方式以及業務狀況都非常滿意。

Yes, and the other thing, Lisa, that I want to add to that is, they -- while they do attach healthcare, like all PEOs do, all of their business is based on guaranteed contracts. So compared to other acquisitions that we have looked at, they are not taking risk on the healthcare side. So that made it attractive to us, especially given how they had built the business and how they were growing.

是的，麗莎，我還想補充一點，雖然他們像所有 PEO 一樣提供醫療保健，但他們的所有業務都是基於擔保合約。因此，與我們考察過的其他收購相比，他們在醫療保健方面並沒有承擔風險。所以這對我們來說很有吸引力，尤其是考慮到他們是如何建立業務以及他們是如何成長的。

Got it. Okay. And then a question to follow up related to the macroeconomic environment. Can you just describe on how -- if and when we ever do see a slowdown in the U.S. that impacts Paychex's business in sort of a second-order basis, meaning, of course, slowdown in the employment is not good but I mean, do you -- does that end up driving additional demand for things like PEO and ASO when you're in a downturn? I'm just curious kind of what the second-order impacts are in your business?

知道了。好的。然後還有一個與宏觀經濟環境相關的後續問題。您能否描述一下，如果美國經濟真的出現放緩，從而對 Paychex 的業務產生次要影響，那麼就業放緩當然不好，但我的意思是，這最終是否會在經濟低迷時期推動對 PEO 和 ASO 等服務的額外需求？我只是好奇，這些二階影響對您的業務有哪些影響？

Yes, obviously, as you've said, the first order is, fewer businesses more going out of business, that kind of thing. But in second order, you're right. I think particularly in the environment we're in now versus even 10 years ago, there's a much bigger need now when there is a downturn, how do I attract and retain employees, do I have the right technology, so can my employees use mobile apps, can I be -- so when can I be more productive and use my employees to be more productive to help me be more productive. They're going to look for ways to cut cost, and using our technology and a lot of the self service is going to help them to be more productive. On the other side, they're going to have to attract and retain more employees or if they may have to lay off or do something like that, they're going to want to know how to do those things and do them right so that they don't face legal consequences, I think more than 10 years ago. And that's going to be a HR need for PEO, for ASO, time and attendance, you name it. And I think those things will improve. So second order, while there's certainly a first-order hit of businesses out of business, loss of jobs and so forth that second order is, okay, it's more complex now. I need more help in other services.

是的，顯然，正如你所說，首要任務是減少企業數量，增加倒閉企業數量，諸如此類。但從第二層級來看，你是對的。我認為，尤其是在我們現在所處的環境下，與 10 年前相比，經濟低迷時期，我們更需要思考如何吸引和留住員工，我是否擁有合適的技術，我的員工是否可以使用移動應用程序，我何時才能提高生產力，並利用我的員工提高生產力來幫助我提高生產力。他們會想辦法降低成本，而利用我們的技術和大量的自助服務將有助於他們提高生產力。另一方面，他們必須吸引和留住更多員工，或者如果他們不得不裁員或採取類似措施，他們會想知道如何做這些事情並正確地做這些事情，以免面臨法律後果，我認為這在10多年前就已經是常態了。而這對 PEO、ASO、考勤管理等等來說，都將是人力資源的需求。我認為這些情況都會好轉。所以，雖然第一階段的打擊是企業倒閉、失業等等，但第二階段的影響，好吧，現在的情況更複雜了。我還需要其他方面的幫助。

Our next question comes from the line of Tien-tsin Huang from JPMorgan.

我們的下一個問題來自摩根大通的黃天進。

You guys went through a lot already. I'm just curious, just maybe bigger-picture question on Oasis. Why now do a deal of this size? I know Oasis has been around for some time. Just curious why you felt like now was the right time to do such a large deal?

你們已經經歷很多了。我只是好奇，或許只是想問一個關於 Oasis 的更宏觀的問題。為什麼現在要進行如此大規模的交易？我知道綠洲樂隊已經成立一段時間了。我只是好奇，你為什麼覺得現在是進行如此大筆交易的合適時機？

Well, I think -- I just think that timing is by view. We've certainly known them for a long time and been an -- had an eye on the PEO. We felt that our own PEO was -- particularly with HROI now with our PEO, we're really at a very mature level of leadership and sales performance and underwriting. So we felt really good about where we were now than we -- Oasis where it is right now and the need in the market, again, as I've said a couple of times, that HR need has really picked up. And PEO is not just a Florida, Texas kind of thing, it is really taking off now with the need for HR support. And the acceptance of PEO -- of the PEO business has really taken off. So I think we gained more experience. We felt more comfortable with how strong our existing team was, the integration of HROI and how well that's gone and now, it was time to take on the largest private PEO and make ourselves the second largest PEO and frankly, second largest HR outsourcer by worksite employees.

嗯，我覺得──我覺得時機取決於視角。我們早就認識他們了，而且一直關注著這個專業雇主組織 (PEO)。我們覺得我們自己的 PEO 已經——特別是現在有了 HROI，我們的 PEO 在領導力、銷售表現和承保方面都達到了非常成熟的水平。所以，我們對現在的狀況感到非常滿意——Oasis 目前的情況以及市場需求，正如我之前多次提到的，人力資源需求確實有所增加。PEO（專業雇主組織）不僅僅是佛羅裡達州和德克薩斯州的特有現象，隨著對人力資源支援的需求不斷增長，它現在正在蓬勃發展。PEO（專業雇主組織）業務的接受度已真正提升。所以我覺得我們累積了更多經驗。我們對現有團隊的實力、HROI 的整合以及目前的良好進展感到更加滿意，現在，是時候挑戰最大的私人 PEO，成為第二大 PEO，坦白說，也是按工作場所員工人數計算的第二大人力資源外包商了。

Got it. No, that makes sense. I'm just curious then with Paychex now going after growth here, especially on the PEO side and then also investing, as you've talked about in the past, will we be able to break out or appreciate or evaluate the impact of margins from Oasis as well as the impact of margins from your investments? And then the subsequent benefits you might be getting from those investments. Just trying to understand how -- if there's a way that we'll be able to evaluate the return on investments that you're making away from Oasis? Does that make sense? Efrain, I know we've talked about this.

知道了。沒錯，這很有道理。我很好奇，既然 Paychex 現在致力於發展，尤其是在 PEO 方面，而且正如您之前提到的，也在進行投資，我們是否能夠區分或評估 Oasis 的利潤率以及您投資的利潤率的影響？然後是您可能從這些投資中獲得的後續收益。我只是想了解一下——有沒有辦法評估您在 Oasis 之外進行的投資的回報率？這樣說得通嗎？埃弗雷恩，我知道我們之前談過這件事。

Yes, so short answer, Tien-tsin, is yes, we'll get more information as we go through the year so that people can make those judgments on what's going on. So -- and you're right, there are value-enhancing investments that we're doing in the management solutions side that over time, we would expect improved margins there and there is acquisitions that we are doing on the PEO and insurance side that will help to fuel revenue growth and over time also improved margins there. So we'll give more color as we go through.

是的，簡而言之，天津，是的，隨著時間的推移，我們會獲得更多信息，以便人們能夠對正在發生的事情做出判斷。所以——你說得對，我們在管理解決方案方面進行了一些增值投資，隨著時間的推移，我們預計這方面的利潤率會有所提高；同時，我們在 PEO 和保險方面也進行了一些收購，這將有助於推動收入增長，並且隨著時間的推移，這方面的利潤率也會有所提高。所以接下來我們會逐步加入更多細節。

Our next question comes from the line of Tim McHugh from William Blair.

我們的下一個問題來自威廉布萊爾的提姆麥克休。

And just a follow-up on that. I know you said Oasis' margins are similar to your PEO margins. I guess, can you give us a color on what that would be, I guess, as we roll this in?

關於這一點，我還有一點後續問題。我知道你說過 Oasis 的利潤率與你們 PEO 的利潤率相似。我想，您能為我們描述一下，在我們推進這個專案的時候，那會是什麼顏色嗎？

Tim, I'll leave for now the discussions of specific margins. I think we called out where we're going to be for the balance of the year. But from a PEO perspective, I just leave it right now that Oasis is pretty comparable to where we are from a margin standpoint on PEO. And actually, in some cases, a little bit better because they don't take any risk on health insurance. We'll update more once we close the deal and then can provide more definitive information going forward.

提姆，關於具體利潤率的討論我暫時先擱置。我認為我們已經明確了今年剩餘時間我們將要去的地方。但從 PEO 的角度來看，我目前只能說 Oasis 在 PEO 利潤率方面與我們目前的狀況相當。實際上，在某些情況下，情況甚至會更好一些，因為他們無需承擔任何醫療保險風險。交易完成後，我們會發布更多更新信息，並提供更確切的後續信息。

Okay. Given the way they structure their contracts, is there as much pass-through revenue?

好的。鑑於他們合約的結構方式，是否會產生大量的轉嫁收入？

No. So I mean, that's a good point. And that's one reason why -- we'll talk more once the deal is closed. So because -- and as you know, Tim, because you know the space pretty well, everyone accounts for PEO revenue differently. In our case, if it's a guaranteed contract, we don't run that through revenue. We -- we're running, through revenue, the healthcare costs that we're taking risk on because Oasis doesn't do any healthcare, any -- take any risk on healthcare. That revenue does not run through their revenues. They obviously have work comp revenue that they take risk on that runs through their revenues. But -- so there's differences in terms of -- a little bit of difference between their revenues and ours because of that, where we have guaranteed contracts. We don't run it through the P&L either. So margins actually -- and that's why I say, margins on an apples-to-apples basis are at or above our PEO margins.

不。所以，這確實是個好觀點。這也是原因之一──等交易完成後，我們再詳細討論。所以，如你所知，提姆，因為你對這個領域非常了解，每個人對 PEO 收入的計算方式都不同。就我們而言，如果是保底合同，我們就不會將其計入收入。我們—我們透過收入來承擔醫療保健成本的風險，因為 Oasis 不做任何醫療保健業務，不承擔任何醫療保健風險。這部分收入並不計入他們的收入。他們顯然有工傷賠償收入，而這部分收入會給他們帶來風險，併計入他們的總收入。但是——因此，由於我們有保底合同，他們的收入和我們的收入之間存在一些差異。我們也沒有將其納入損益表。所以實際上，利潤率——這也是我為什麼說，在同等條件下，利潤率等於或高於我們的 PEO 利潤率。

Okay. And then going back to -- I think the comment earlier was the sales force kind of depend how you want to count it, up 3% to 5%. Do you mind -- how does that compare to last year and the year before, I guess? How much more resources are you going into the selling season with versus what we have seen in the last couple of years?

好的。然後回到——我認為之前的評論是銷售團隊的成長取決於你怎麼計算，成長幅度在 3% 到 5% 之間。請問您介意嗎？我想問的是，今年的情況與去年和前年相比如何？與過去幾年相比，你們今年銷售季投入的資源增加了多少？

Yes, Tim, we've typically be up around 2% to 3%. And I think this is -- 3% to 5% is more like you're adding the other sales forces in as well. So pretty much have grown across the board. As we've talked about, we've moved some into, what we call, virtual for the -- on the payroll, particularly, the small in payroll side. We've moved inside in telesales. But we've also added a number of sales people on the PEO, ASO side. The mid-market side is up pretty strong as well and -- because we took a little bit of a dip last year. But we're feeling good about the fact that we've got good momentum in the first half of the year. And we're fully staffed as we're in this peak selling season.

是的，提姆，我們通常會上漲 2% 到 3%。我認為這——3%到5%更像是把其他銷售團隊也算進去了。所以基本上各個方面都實現了成長。正如我們之前討論過的，我們已經將一些員工轉移到我們所謂的虛擬職位上——特別是那些在工資單上人數較少的員工。我們已經把電話銷售業務轉移到室內了。但是，我們也增加了一些 PEO 和 ASO 方面的銷售人員。中階市場也表現強勁，而且──因為我們去年經歷了一些下滑。但令人欣慰的是，我們上半年發展勢頭良好。正值銷售旺季，我們人員配備齊全。

Our next question comes from the line of David Grossman from Stifel Financial.

我們的下一個問題來自 Stifel Financial 的 David Grossman。

There's obviously a lot of discussion about the PEO. And you've changed your revenue segmentation. And I guess, what I'm curious about is, if you could give us some insight into the changing business mix in new sales? How much of the new sales are standalone payroll versus a bundled product compared to where we were maybe 2 or 3 years ago?

顯然，關於PEO有很多討論。你們已經改變了收入細分。我想問的是，您能否為我們深入分析一下新銷售中不斷變化的業務組合？與兩三年前相比，新增銷售額中有多少是獨立薪資管理產品，又有多少是捆綁式產品？

Yes, I would say, it's different bundles. I would say, it's more of a bundled product these days in kind of taking that full -- looking for a full product. On the very low end, you're still seeing, hey, I'm looking for basic payroll to help me get started in a business in that 1 to 4 or even 1 to 2 employee size. But above that 5 employee size, you're definitely seeing a larger interest and need for time and attendance solutions, HR support, et cetera. We don't necessarily break out percentages, but it's definitely trended up. And that's one of the reasons to expand on the HR and the PEO side is that where -- 5 years ago, David, you'd see you needed 25 or 30 employees to really say, hey, I'm interested in PEO or in HR outsourcing. Now that is honestly 10 to 15 employees sometimes need that support because of the legal issues today, the requirements of the states, the minimum wage changes. If you're a multistate employer, it is really tough, even if you're small. And these rules don't apply to, hey, you have to be 25 and above. It's typically like this harassment -- non-harassment training that's needed in New York, it's like 1 employee and above, you have to do this training by the middle of next year. So they're seeing a lot more need. And clearly, you're getting much more of the approach. The go-to-market approach in sales is much more about the full package, and the HR, you're leading much more with HR or a time and attendance solution, et cetera, and the payroll is kind of, yes, it includes payroll but the need is for much more of a fully comprehensive solution.

是的，我認為，這是不同的組合。我覺得，現在更多的是捆綁式產品，也就是想要購買完整的產品。在非常低階的市場，你仍然會看到這樣的情況：嘿，我正在尋找基本的薪資管理服務，以幫助我開展一家員工人數為 1 到 4 人甚至 1 到 2 人的企業。但是，當員工人數超過 5 人時，您肯定會看到對考勤解決方案、人力資源支援等方面有更大的興趣和需求。我們不一定列出百分比，但肯定呈上升趨勢。這也是拓展人力資源和 PEO 業務的原因之一，因為——5 年前，David，你會發現你需要 25 或 30 名員工才會真正說，嘿，我對 PEO 或人力資源外包感興趣。說實話，由於當今的法律問題、各州的要求以及最低工資的變化，有時確實有 10 到 15 名員工需要這種支持。如果你是跨州經營的雇主，即使公司規模很小，經營起來也會非常困難。而且這些規則不適用於，嘿，你必須年滿25歲。通常情況下，紐約要求進行反騷擾培訓，要求至少一名員工在明年年中之前完成這項培訓。所以他們發現需求大幅增加。顯然，你正在更多地採用這種方法。銷售中的市場推廣策略更注重整體解決方案，而人力資源方面，則更專注於人力資源或考勤解決方案等，薪資方面，雖然也包含薪資管理，但需要的是一個更全面的解決方案。

And it's shifted to bundles.

而且已經轉向捆綁銷售。

Right. I was just kind of thinking pricing aside, the unit sale. How has that trended over the past couple of years in terms of what kind of revenue you're getting per unit sales versus what you were getting a couple of years ago?

正確的。我當時只是在考慮價格問題以外的銷售情況。過去幾年，您每單位銷售所獲得的收入與幾年前相比，趨勢如何？

You're talking about revenue per client or sale?

您指的是每位客戶的收入還是每次銷售的收入？

Right. Revenue per client on the new unit sale.

正確的。新單元銷售中每位客戶的收入。

Yes, revenue per client has been growing. You look over probably the last 3 years, you're up in the 5%, 6% range.

是的，每位客戶的收入一直在增加。回顧過去三年，成長率大概在 5% 到 6% 之間。

Okay. And then just a follow-up. I think, Marty, actually both of you had mentioned this that the scale of Oasis relative to Paychex in certain geographies may help you. Can you give us a sense of what percentage of your payroll install base is in those geographies?

好的。然後還有一個後續問題。我認為，Marty，實際上你們兩個都提到過，Oasis 在某些地區的規模相對於 Paychex 而言可能對你們有所幫助。您能否大致說明一下，您的員工員工中，有多少比例位於這些地區？

Yes, I would say -- that's an interesting question. I don't have the number off the top of my head. I can tell you that our PEO is certainly covered probably where the majority of our payroll population is. But we definitely have scale of payroll clients and other products in those areas where they are and we don't have PEO. So we think about it more as there is -- in these markets that we're expanding and probably in 10 different new markets where they have some scale and we have not built it up, it's because we haven't built up the PEO in those areas and we haven't had the relationship with the carrier, the insurance carrier who are in -- who are the strongest in those markets. And now we'll have scale with that carrier in those markets and we certainly have enough clients existing to be able to sell PEO into. And remember, we sell PEO directly as well. So we sell to brand-new clients, and as we just talked about, that's a growing need is they're interested in PEO right up front. They're interested in HR outsourcing right up front. They're not -- it's not just the payroll base that we're selling to. So while we have clients there, I'd say the majority of our client base, payroll client base, we have covered with PEO. But these new markets, we certainly have thousands of clients that we can sell into. But again, we sell the PEO directly to brand-new prospects.

是的，我會說——這是一個有趣的問題。我一時想不起來具體數字了。我可以告訴你，我們的 PEO 服務肯定涵蓋了我們大部分員工所在的地區。但我們在這些地區確實擁有規模化的薪資客戶和其他產品，而且我們沒有 PEO（專業雇主組織）。所以我們更多是這樣想的——在我們正在擴張的這些市場，以及可能在 10 個不同的新市場中，它們已經有一定的規模，而我們還沒有建立起規模，這是因為我們還沒有在這些地區建立起 PEO，也沒有與這些市場中最強大的保險公司建立關係。現在，我們與該營運商在這些市場擁有了規模優勢，而且我們現有的客戶數量也足以讓我們向他們銷售 PEO 服務。另外，請記住，我們也直接銷售 PEO。所以我們向全新的客戶銷售產品，正如我們剛才所討論的，他們一開始就對 PEO 感興趣，這是一個日益增長的需求。他們一開始就對人力資源外包很感興趣。並非如此——我們的目標客戶不僅僅是工資領取者。所以雖然我們在那裡也有客戶，但我認為我們的大部分客戶群，也就是薪資客戶群，都已經透過 PEO 服務覆蓋了。但是，在這些新市場中，我們肯定有成千上萬的客戶可以向我們銷售產品。但是，我們仍然直接向新客戶銷售 PEO 服務。

And our PEO, David, as we've talked before, is predominantly a California, Texas and Florida game. And this gives us strength in thinking outside of that. So I don't have exact percentage for what California and Texas and Florida represent there, but this gives us access to a lot of markets that -- or at least strength in a lot of markets we really weren't strong in before.

正如我們之前討論過的，我們的 PEO（專案執行官）David 主要在加利福尼亞州、德克薩斯州和佛羅裡達州開展業務。這賦予我們跳脫固有思維模式的力量。因此，我沒有加州、德州和佛羅裡達州的具體百分比，但這讓我們能夠進入很多市場——或者至少在我們以前並不強大的許多市場中佔據優勢。

Right. And then just 1 last question. Obviously, there's been a lot of kind of headlines about the ACA the last week. So the ACA was obviously a big catalyst for this industry a couple of years ago. And obviously, we've kind of anniversaried and kind of seen the reverse impact of that. So any thoughts on directionally what the possibilities may be for the PEO based on the outcome of what's going on right now?

正確的。最後一個問題。顯然，過去一周有很多關於《平價醫療法案》（ACA）的新聞報導。所以，幾年前《平價醫療法案》（ACA）顯然是推動該產業發展的重要催化劑。很顯然，我們已經慶祝了周年紀念日，也看到了由此產生的相反影響。那麼，根據目前事態的發展結果，對於PEO的未來發展方向，大家有什麼想法呢？

Yes, I think ACA has been very interesting. I think even there is so much confusion in the marketplace among everybody, of course, is to whether it's in or out. We have actually -- there's still been plenty of notices that have gone out to clients and nonclients of ours that have said, hey, you have a penalty and you have to respond to this, and so even though it feels like it's people aren't sure whether it's on or off, clients are still getting penalties from previous years saying that they owe significant sums of money. We've been very successful in helping not only our clients, we've also offered a service where if you weren't a client of ours but you have a penalty notice and you want to come and talk to us, we've been able to help a number of clients and have abated a significant millions and millions of dollars of potential penalties for them. So it still is a very much a talking point to new clients and a retention point to existing clients that they need to report, they need to keep the information to report and that they may get letters from the government saying, you owe something and you're going to need support on how to get out of it.

是的，我認為《平價醫療法案》（ACA）非常有趣。我認為，當然，市場上每個人都對此感到非常困惑，不知道它到底是流行還是過時。事實上，我們仍然向客戶和非客戶發出了大量通知，告知他們「嘿，您有罰款，您必須對此作出回應」。因此，儘管人們似乎不確定罰款是否已經生效，但客戶仍然會收到往年的罰款通知，表示他們欠下巨額款項。我們不僅在幫助客戶方面取得了巨大成功，而且我們還提供了一項服務：即使您不是我們的客戶，但您收到了罰款通知，並且您想來和我們談談，我們也能夠幫助許多客戶，並為他們減免了數百萬美元的潛在罰款。因此，對於新客戶來說，這是一個非常重要的談話主題；對於現有客戶來說，這是一個重要的留存主題，他們需要報告，他們需要保留報告信息，並且他們可能會收到政府的信件，說他們欠了錢，需要獲得幫助才能擺脫困境。

But, David, the other part I've build on from what Marty said, the tailwind we see for PEO really has something to do with. I think it got turbocharged by Affordable Care Act. But really much more -- it's much more now that integrated HR and benefit play. And we saw a strength. We saw a strength starting 2 years or so ago, and that strength has continued. And some of it has to do with ACA-related issues. But a lot of it really is more HR benefits...

但是，David，我從Marty所說的內容中引申出的另一部分，我們看到的PEO的順風確實與此有關。我認為《平價醫療法案》加速了這個過程。但實際上遠不止於此——如今它遠遠不止是人力資源和福祉的整合。我們看到了它的優勢。大約兩年前，我們發現這種優勢開始顯現，而且這種優勢一直延續至今。其中一些問題與《平價醫療法案》（ACA）有關。但其中很多其實比較是人力資源的福利…

Yes, definitely.

是的，當然。

And technology related.

以及與科技相關的。

Yes. And that point I made, you may have heard earlier that in the -- in such a low unemployment rate, these small and midsize companies are really looking to someone to help them have better insurance benefits, offer insurance benefits, help them enroll their employees in these benefits because they're having to compete with really large companies in what their benefit plans are.

是的。正如我之前提到的，你可能也聽說過，在失業率如此之低的情況下，這些中小企業真的希望有人能幫助他們獲得更好的保險福利，提供保險福利，幫助他們的員工加入這些福利計劃，因為他們不得不與大型公司在福利計劃方面展開競爭。

Our next question comes from the line of Samad Samana from Jefferies.

我們的下一個問題來自 Jefferies 的 Samad Samana。

First, I was wondering, on Oasis, so are all of their customers PEO, the 270,000 WSEs? And I know that Paychex historically has included both ASO and PEO clients in their WSE cap. Could you give us maybe an apples-to-apples number of what the PEO-WSE cap looks like following the Oasis acquisition?

首先，我想知道，Oasis 的所有客戶，也就是 27 萬家 WSE，都是 PEO 嗎？而且我知道 Paychex 歷來都將 ASO 和 PEO 客戶都納入了其 WSE 上限。能否提供一個比較準確的數據，說明在 Oasis 被收購後，PEO-WSE 的市值會變成什麼樣子？

Well, you want to -- go ahead.

好吧，你想這麼做——那就去做吧。

Well, we don't break out separately. We'll do that as we close the acquisition. When we give you the 1.4 million WSEs, there is a significant amount of those that obviously are ASO employees. When they -- when you're using the 270,000 figure, they have some ASO employees included in that. They are between 200,000 and 300,000, closer to the midpoint on PEO clients. So some of their clients on the numbers that are floating around really are ASO. So we would count them as ASO clients.

嗯，我們不會單獨行動。我們將在完成收購時這樣做。當我們給出的 140 萬個 WSE 時，其中顯然有相當一部分是 ASO 員工。當你使用 270,000 這個數字時，其中包含了一些 ASO 員工。他們的客戶數量在 20 萬到 30 萬之間，接近 PEO 客戶數量的中位數。所以，從流傳出來的數據來看，他們的一些客戶確實是 ASO（應用程式商店優化）。因此，我們會將他們視為ASO客戶。

Great. And that's why I asked. And then I know that Oasis, I think, they were using a third-party software vendor called PrismHR. I'm curious if you're factoring in the opportunity to migrate those customers over to Paychex Flex? Or if that's something that's further down the road? And maybe help us understand if there is a revenue or margin opportunity and the magnitude of that?

偉大的。這就是我問的原因。然後我知道 Oasis 公司當時使用的是一家名為 PrismHR 的第三方軟體供應商。我很好奇您是否考慮過將這些客戶遷移到 Paychex Flex 平台？或者，如果那是以後才會發生的事情呢？或許還能幫助我們了解是否有營收或利潤提升的機會，以及機會的規模？

I think, yes. Certainly, we'll be looking at that. And looking at how -- what Prism -- the flexibility in the offering of Prism, which, we think, has been very solid for their clients. And certainly, Flex is for ours. So we'll be looking at the 2 platforms. And it'll be further down the road. That is not a necessarily a big savings or anything, a synergy that we're counting on there because this is more of, hey, what provides the best client service and technology for their clients, for our clients and we'll be looking at that, but that's not a big part of the synergy is to try to save on that. We want to make sure it's a great experience for the clients no matter what platform they are on.

我想是的。當然，我們會關注此事。看看 Prism 的產品靈活性，我們認為 Prism 的產品靈活性對他們的客戶來說非常可靠。當然，Flex 對我們來說是合適的。所以我們將考察這兩個平台。而且那還要過一段時間才會發生。這不一定能節省一大筆錢，或者說我們指望的協同效應，因為這更多的是關於如何為他們的客戶、為我們的客戶提供最好的客戶服務和技術，我們會考慮這一點，但協同效應的主要部分並不是試圖在這方面節省成本。我們希望確保無論客戶使用什麼平台，都能獲得良好的體驗。

Great. And maybe just 1 last one. Retention was mentioned a couple of times on the call and improving. And I'm curious if you could just remind us what the peak retention rate was before? And do you think with PEO now in the mix and that being more strategically valuable for customers, holding all else equal, do we think that retention can eclipse the prior highs going forward? Maybe just some color on that would be helpful.

偉大的。或許就剩最後一個了。電話會議中多次提到客戶留存率以及如何提高留存率。我想請問一下，您能否提醒我們一下之前的最高留存率是多少？您認為，隨著 PEO 的加入，以及它對客戶更具戰略價值，在其他條件不變的情況下，我們是否認為客戶留存率能夠超越以往的高點？或許加點顏色會更好。

Yes, I think the all-time best was around 82%. And as I said, we're approaching that best. I think you make a good point that certainly, as you take more products, that's always been part of our model. As you take more products and particularly HR, that drives better retention. But you still have to keep in mind that 80% of our clients are under 20. And many of those still take payroll only. And so that will make it more difficult to get their retention much above that, kind of all-time high. We're always looking to do that. The -- certainly, the possibility is there as they take more products and that their employees are more tied into things like our mobile app and the technology. But I think it's a little bit tough given the dynamics still of the base.

是的，我認為歷史最高紀錄在 82% 左右。正如我所說，我們正在盡最大努力實現這個目標。我認為你說的很有道理，隨著產品數量的增加，這當然一直是我們模式的一部分。隨著你採用的產品越來越多，尤其是人力資源的產品，這將帶來更好的客戶留存率。但您仍然需要記住，我們80%的客戶年齡都在20歲以下。而且其中許多公司仍然只收取薪水。因此，這將使他們的留存率更難遠超過歷史最高水準。我們一直在努力實現這一點。當然，隨著他們推出更多產品，以及他們的員工與我們的行動應用程式和技術等事物聯繫更加緊密，這種可能性是存在的。但考慮到基地目前的動態，我認為這有點困難。

Our next question comes from the line of James Faucette from Morgan Stanley.

我們的下一個問題來自摩根士丹利的詹姆斯·福塞特。

I just had -- most of my questions have been answered. But I was looking for a little bit of color on a couple of things that you've talked about. In addition to strong retention, you've also mentioned new bookings in payroll. Anything to call out by market? Or are you seeing any differences in behavior among mid-market or micro enterprise among your customer base within whether it be retention and new bookings at all?

我剛才——我的大部分問題都得到了解答。但我希望您能就您談到的一些事情提供一些更具體的見解。除了員工留存率高之外，您還提到了薪資單上的新訂單。市場方面有什麼需要特別指出的嗎？或者，您是否發現您的客戶群中，中型企業或微型企業在客戶留存率和新訂單量方面有任何行為差異？

Well, it's always hard to say before we get through kind of this next -- this current quarter, this third quarter because the selling season is such an important part of it. But we are feeling momentum kind of across the board, whether it's on the small end of payroll, the mid-market. We're feeling momentum pretty consistently certainly as well as we've talked a lot about the PEO and ASO, time and attendance, retirement. Really seeing pretty consistent momentum across the board.

嗯，在度過接下來的這個季度，也就是第三季度之前，總是很難說清楚，因為銷售旺季是其中非常重要的一部分。但我們感覺到各方面都呈現出成長勢頭，無論是小規模企業還是中型企業。我們確實感受到了持續的成長勢頭，而且正如我們之前多次討論過的 PEO 和 ASO、考勤制度以及退休制度一樣。各方面都呈現相當穩定的成長動能。

Great. And then second question is just as it relates to your partnerships and wondering if it's far enough along to see a trend of mid-market clients that were exposed to you through partnership, transitioning to complete solutions or how and if they're mixing and matching with partners? And I guess, just trying to get a sense of how you're managing that potential channel conflict besides looking at incremental opportunities?

偉大的。第二個問題與你們的合作關係有關，我想知道目前是否已經出現了這樣的趨勢：透過合作關係接觸到你們的中端市場客戶，正在過渡到完整的解決方案，或者他們是否正在與合​​作夥伴進行混合搭配？我想了解的是，除了尋找新的發展機會之外，你們是如何處理這種潛在的管道衝突的？

Yes, I think definitely, the sale is about what's best for the client and what -- where do they see the most value. We certainly try to make sure that we demonstrate to them. The vast majority of our clients are still taking a full service, full Flex offering because of the great benefit of a single employee record, a unified user interface that whether you have -- you're on 1 platform, no matter how much you grow for payroll and HR and that it's fully integrated. So when you are taking Flex, when you just think about what we just offered in the last quarter, the Learning Management System, Flex learning management is giving you training, we're building that into some of the bundles, some low free training and then you can build and design your own training to tie that into performance management that ties to your payroll, that ties to your workflow for HR. So I would say, the vast majority are still sold as the full bundle, but you do find in the mid-market that there are clients that say, hey, I'm just not ready to make a full switch if I'm already up with a retirement provider or a time and attendance solution and, okay, if that's the way you want to do it, we'll go with an API and we think that's efficient. But in the future, that also gives us an opportunity to go back to them and say, hey, this would be even better if you've bought more services on the Flex platform.

是的，我認為銷售的關鍵在於什麼對客戶最有利，以及他們認為哪裡最有價值。我們當然會盡力向他們進行示範。絕大多數客戶仍然選擇全方位、全方位的 Flex 服務，因為單一員工記錄、統一的使用者介面帶來的巨大好處是——無論您的薪資和人力資源部門發展到何種規模，您都使用同一個平台，而且它是完全整合的。所以，當您使用 Flex 時，想想我們上個季度推出的學習管理系統，Flex 學習管理系統為您提供培訓，我們將其構建到一些套餐中，提供一些低成本的免費培訓，然後您可以構建和設計自己的培訓，將其與績效管理聯繫起來，績效管理又與您的工資單和人力資源工作流程聯繫起來。所以我覺得，絕大多數產品仍然是以完整套裝的形式出售的，但在中端市場，你會發現有些客戶會說，嘿，如果我已經有了退休金提供者或考勤解決方案，我還沒準備好完全切換，好吧，既然你堅持要這樣做，我們就用 API，我們認為這樣效率很高。但未來，這也給了我們一個機會，可以回頭告訴他們，嘿，如果您在 Flex 平台上購買更多服務，那就更好了。

Our last question comes from the line of Jeff Silber from BMO.

最後一個問題來自 BMO 的 Jeff Silber。

It's Henry Chien calling for Jeff. So a lot of stuff was covered. I just wanted to ask sort of big-picture question on the Oasis acquisition. So as we think about the PEO business, and I know you touched on it a little bit, what are the kind of synergies that you get from combining sort of 2 PEO businesses? I know you mentioned there are the carrier relationships. But how does that translate into growth in your business? Is that let you offer better insurance rate or better products? Just sort of what are the benefits of combining 2 PEO businesses?

是亨利·錢在找傑夫。所以涵蓋的內容很多。我只是想問一個關於 Oasis 收購案的宏觀問題。所以，當我們思考 PEO 業務時（我知道您也稍微談到了這一點），將兩個 PEO 業務合併可以帶來哪些協同效應？我知道你提到過存在著運營商關係。但這對你的業務成長意味著什麼呢？這是否意味著你可以提供更優惠的保險費率或更好的產品？將兩家 PEO 企業合併究竟有哪些好處？

Yes, sure. It's -- and it's very much about, again, that top line as we've talked about that really the revenue synergy, the growth synergy. So when you talk about like a carrier relationship, we've had very good carrier relationships but not with all carriers because of the markets that they are in and we're in. And now when you go into a new markets and you have a strong carrier relationship, and now you, let's say, you double the size or you increase the size tremendously, now when you go to those carriers, they're much more interested in giving you more attention to say, hey, let's give you the best benefit packages, let's give you some more support as far as the integration with the carrier, you're dealing with a carrier customer support from the carrier, you're just a larger customer and they're going to give you a lot more support. Therefore, you can offer necessarily more benefit options, packages to clients to be able to give to their employees and a better fit -- a better benefit enrollment experience, and when you -- so just think of it from that sales perspective. And then just when you think about all of the various markets -- so -- and then so there's that, then there's just additional markets where they're in that we're not, as Efrain said. We've been primarily Florida, California, Texas, Georgia and they're in different markets. And now we have some clients there but we weren't scaled enough necessarily to deal with those carriers. Now we're going to be scaled between the 2 of us to be larger in those markets. That opens up a great possibility. And also you're dealing with the PEO that didn't have an insurance agency with it. We have an insurance agency, the 20th largest insurance agency. And when you don't fit the underwriting profile for PEO, they couldn't go anywhere else for that. We now take these clients and say, hey, if we can't underwrite you as a PEO client, I have an insurance agency product that I can offer you for insurance. So now you've just opened up a whole new opportunity for them. And their PEO clients can now buy retirement services from us, they can buy time and attendance solutions from us and a lot of things that we're much larger at that they didn't necessarily offer to a large variety of their customers.

當然可以。關鍵在於——正如我們之前討論過的，關鍵在於營收協同效應和成長綜效。所以，當談到與營運商的關係時，我們與營運商的關係一直很好，但並非所有營運商都如此，因為他們所處的市場和我們所處的市場不同。現在，當你進入新市場，並與運營商建立了牢固的關係，假設你的規模翻了一番或大幅增長，那麼當你與這些運營商接洽時，他們會更願意給你更多關注，比如，我們會為你提供最好的福利方案，在與運營商的整合方面提供更多支持，你將直接與運營商的客戶支持團隊對接，因為你會為你提供更多的支持。因此，您可以為客戶提供更多福利選擇和套餐，以便他們能夠提供給員工，並提供更合適的福利——更好的福利登記體驗，所以——只需從銷售的角度考慮一下即可。然後，當你考慮到所有不同的市場——所以——然後，正如埃弗雷恩所說，還有一些我們沒有進入的市場，他們已經進入了。我們主要在佛羅裡達州、加利福尼亞州、德克薩斯州和喬治亞州開展業務，這些地區屬於不同的市場。現在我們在那裡有一些客戶，但我們的規模還不夠大，不足以與這些業者合作。現在我們將擴大我們兩人的規模，以便在這些市場中做得更大。這開啟了一個巨大的可能性。而且你還要和沒有保險代理機構的專業雇主組織 (PEO) 打交道。我們擁有一家保險代理公司，是排名第20的保險代理公司。如果你不符合 PEO 的承保條件，他們也找不到其他合適的公司了。現在我們會對這些客戶說，嘿，如果我們不能以 PEO 客戶的身份承保您，我可以向您提供保險代理產品。所以你現在就為他們開闢了一個全新的機會。他們的 PEO 客戶現在可以向我們購買退休服務、考勤解決方案以及許多我們規模更大、他們未必能向其眾多客戶提供的服務。

Got it. Okay. No, that's really helpful. And maybe just final question, what's your sense of the -- I mean, it sounds like that the PEO and sort of these combined HR Services are really starting to inflect in. In your view, I mean, what sort of innings or stage, you think, of adoption, you think, PEO is in right now?

知道了。好的。不，這真的很有幫助。最後一個問題，您覺得——我的意思是，聽起來 PEO 和這些綜合人力資源服務真的開始產生影響了。我的意思是，您認為 PEO 目前處於採用的哪個階段？

It's pretty -- I think it's pretty early. It's -- because I don't see the requirements from states or federal government frankly getting that much easier, particularly the states, and I think that more and more client. And then as the economy has gotten more -- has gotten tougher from an unemployment. So unemployment has gotten lower, harder to find workers. You've got a lot of companies, who, for the first time, have said, okay, I really have to offer benefits now. I have to really be sure that I have benefits that I make it easy for my employees to get them or I'm not going to attract the employees. And by the way, I also have to offer more technology and make it easier for employees to do self-service, to talk -- to do things on their mobile phone to enroll in their benefits, change their benefits and so forth. So I think actually it's pretty early innings from adoption of a PEO or frankly any HR outsourcing. Remember that we're very large in both markets. So PEO is great. ASO is great also. And we have over 500 HR people. I -- we're one of the largest obviously. And the second largest we will be in this space. And that gives us a lot of clout in -- to get in front of clients with technology and service.

挺漂亮的——我覺得現在還蠻早的。因為我沒有看到州政府或聯邦政府的要求變得容易多少，尤其是州政府的要求，而且我認為越來越多的客戶。然後，隨著經濟狀況惡化——失業問題變得更加嚴峻。因此，失業率下降了，更難找到工人了。很多公司第一次表示，好吧，我現在真的必須提供福利了。我必須確保我提供的福利能夠讓員工輕鬆取得，否則我無法吸引員工。順便說一句，我還必須提供更多技術，讓員工更容易進行自助服務，透過手機進行溝通——例如註冊福利、更改福利等等。所以我覺得，現在採用 PEO 或坦白說，任何人力資源外包模式都還處於非常早期的階段。請記住，我們在這兩個市場都擁有非常龐大的規模。所以PEO很棒。ASO也很棒。我們有超過500名人力資源人員。我——我們顯然是規模最大的公司之一。第二大，我們將在這個領域有所建樹。這讓我們在與客戶溝通方面擁有了很大的影響力——透過科技和服務贏得客戶。

At this time, we don't have any more questions on queue. You may proceed.

目前我們沒有其他問題需要解答。您可以繼續。

All right. At this point, we will close the call. If you are interested in replaying the webcast of this conference call, it would be archived for approximately 30 days. I thank you for taking the time to participate in our second quarter press release conference call and for your interest and investment in Paychex. We hope you and your families to have a joyful holiday season. Thank you.

好的。至此，我們將結束通話。如果您有興趣重播本次電話會議的網路直播，它將存檔約 30 天。感謝您抽出時間參加我們第二季的新聞發布電話會議，也感謝您對 Paychex 的關注和投資。祝您和您的家人節日快樂。謝謝。

That concludes today's conference. Thank you all for participating, you may now disconnect.

今天的會議到此結束。感謝各位的參與，現在可以斷開連結了。