沛齊 (PAYX) 2023 Q2 法說會逐字稿

Good day, everyone, and welcome to the Paychex Second Quarter Earnings Conference Call. (Operator Instructions). Please note, this call will be recorded, and I will be standing by if you should need any assistance.

大家好，歡迎來到 Paychex 第二季度收益電話會議。 （操作員說明）。請注意，此通話將被錄音，如果您需要任何幫助，我會隨時待命。

It is now my pleasure to turn the conference over to Mr. John Gibson, President and CEO. Please go ahead, sir.

現在我很高興將會議轉交給總裁兼首席執行官 John Gibson 先生。請繼續，先生。

Thanks, [Todd]. Good morning, everyone. Thank you for joining us for our discussion of the Paychex second quarter fiscal year '23 earnings release. Joining me today is Efrain Rivera, our Chief Financial Officer.

謝謝，[托德]。大家，早安。感謝您加入我們討論 Paychex 第二季度財年 '23 收益發布。今天加入我的是我們的首席財務官 Efrain Rivera。

This morning, before the market opened, we released our financial results for the second quarter ended November 30. You can access our earnings release on our Investor Relations website. Our Form 10-Q will be filed with the SEC within the next day. This teleconference is being broadcast over the Internet and will be archived and available on our website for approximately 90 days.

今天上午，在開市前，我們發布了截至 11 月 30 日的第二季度財務業績。您可以在我們的投資者關係網站上查看我們的收益發布。我們的 10-Q 表格將在第二天提交給美國證券交易委員會。此電話會議將通過互聯網播出，並將在我們的網站上存檔並提供大約 90 天。

We'll start the call with an update on the business for the second quarter and then Efrain will review our financial results and outlook for fiscal year '23. We'll then open it up to your questions.

我們將以第二季度的業務更新開始電話會議，然後 Efrain 將審查我們的財務業績和 23 財年展望。然後我們將打開它來回答您的問題。

We delivered solid financial results for the second quarter with total revenue of 7% and adjusted diluted earnings per share growth of 9%. Demand for our comprehensive solution suite remains strong, and we are well positioned to help our clients succeed. Our unique combination of leading HR technology, HR expertise and the wide breadth of solutions we have to address the many needs in the marketplace, continue to help small and midsized businesses navigate this very dynamic and challenging environment.

我們在第二季度取得了穩健的財務業績，總收入為 7%，調整後的稀釋後每股收益增長了 9%。對我們綜合解決方案套件的需求依然強勁，我們有能力幫助我們的客戶取得成功。我們將領先的人力資源技術、人力資源專業知識和廣泛的解決方案獨特地結合在一起，我們必須滿足市場上的許多需求，繼續幫助中小型企業應對這個充滿活力和挑戰性的環境。

We continue to closely monitor the macroeconomic environment and our internal leading indicators. The latest findings from our Paychex | IHS Small Business Employment Watch revealed moderating growth in jobs and steady growth in wages. Our clients continue to be challenged by the continuing impacts of the pandemic, inflationary pressures and the challenges of this labor market. However, small and midsized businesses continue to show their resilience.

我們繼續密切關注宏觀經濟環境和我們的內部領先指標。我們 Paychex | 的最新發現IHS 小型企業就業觀察顯示就業增長放緩，工資穩定增長。我們的客戶繼續受到大流行病、通脹壓力和勞動力市場挑戰的持續影響的挑戰。然而，中小企業繼續表現出韌性。

Our revenue retention remained solid as we focus on retaining clients and driving increased value and penetration of our HR outsourcing, HCM software and retirement solutions. Our overall HR outsourcing business continues to perform well with strong growth in worksite employees and record revenue retention. We achieved a major milestone this quarter. We now serve over 2 million worksite employees across our ASO and PEO business, clearly establishing us as an HR leader.

由於我們專注於留住客戶並推動增加人力資源外包、HCM 軟件和退休解決方案的價值和滲透率，因此我們的收入保留率保持穩定。我們的整體人力資源外包業務繼續表現良好，現場員工人數強勁增長，收入保持創紀錄。本季度我們實現了一個重要的里程碑。現在，我們在 ASO 和 PEO 業務中為超過 200 萬名工作場所員工提供服務，明確確立了我們作為人力資源領導者的地位。

Our industry-leading HR advisory services sets us apart and our certified HR professionals are truly a unique asset as they are advising our clients on HR issues as well as leveraging our HR technology and the analytics from our vast SMB data set to help our clients achieve greater operational efficiency, increase employee engagement and reduce turnover.

我們行業領先的人力資源諮詢服務使我們與眾不同，我們經過認證的人力資源專業人員確實是一項獨特的資產，因為他們就人力資源問題向我們的客戶提供建議，並利用我們的人力資源技術和來自我們龐大的 SMB 數據集的分析來幫助我們的客戶實現提高運營效率，提高員工敬業度並減少人員流動。

While demand for our technology and HR outsourcing solutions remain strong, we continue to see shifts in what offerings clients find are the best fit for their current situation. Both early and during the pandemic, we saw lower demand for adding employer health benefits. We continue to see this trend and also high demand for our ASO solutions, driven by businesses seeking immediate assistance with HR issues and filing for tax credits, but delaying decisions on adding or changing their insurance offering to their employees.

雖然對我們的技術和人力資源外包解決方案的需求依然強勁，但我們繼續看到客戶發現最適合其當前情況的產品發生變化。在大流行初期和大流行期間，我們發現增加雇主健康福利的需求較低。我們繼續看到這種趨勢以及對我們的 ASO 解決方案的高需求，這是由於企業在人力資源問題上尋求即時幫助和申請稅收抵免，但推遲了向其員工添加或更改其保險產品的決定。

In addition, the lower medical plan sales and participant volumes in our health and benefits area of our insurance agency that we discussed last quarter continued in the second quarter, and we saw some similar trends in our Florida at-risk insurance program in the PEO, impacting revenue growth in that area of the business. Awareness and demand of our employee retention tax credit or ERTC service, which helps clients maximize eligible tax credits continues to grow. To date, we've helped more than 50,000 clients secure billions in ERTC.

此外，我們上個季度討論的保險機構健康和福利領域的醫療計劃銷售額和參與者數量在第二季度繼續下降，我們在 PEO 的佛羅里達州風險保險計劃中看到了一些類似的趨勢，影響該業務領域的收入增長。我們的員工保留稅收抵免或 ERTC 服務的意識和需求不斷增長，這有助於客戶最大限度地提高符合條件的稅收抵免。迄今為止，我們已幫助超過 50,000 名客戶獲得數十億美元的 ERTC。

A recent survey actually showed just 63% of business -- that 63% of business owners didn't even know that they were eligible for these credits. We continue to educate existing clients of the benefits as well as leverage this service to attract new clients. We continue to invest and enhance our product suite and customer experiences.

最近的一項調查實際上顯示只有 63% 的企業——63% 的企業主甚至不知道他們有資格獲得這些抵免。我們繼續教育現有客戶的好處，並利用這項服務來吸引新客戶。我們將繼續投資並增強我們的產品套件和客戶體驗。

In November, we released our enhancements to Paychex Flex, focused on further streamlining the recruiting, onboarding, time and attendance, and benefits administration experiences. Through our HR technology, 3 out of 4 Paychex clients surveyed have shortened the time required from recruiting, screening, tracking and onboarding new employees. Those clients reported an average time savings of 26%, indicating that the typical 2-month recruiting cycle has now been reduced to just 6.

11 月，我們發布了 Paychex Flex 的增強功能，專注於進一步簡化招聘、入職、時間和出勤以及福利管理體驗。通過我們的人力資源技術，接受調查的 Paychex 客戶中有四分之三縮短了招聘、篩選、跟踪和入職新員工所需的時間。這些客戶報告說平均節省了 26% 的時間，這表明典型的 2 個月招聘週期現在已經減少到僅 6 個月。

I'm very excited about our Retention Insights offering, which continues to deliver strong results for our clients at a time when businesses remain committed to retaining their existing staff. This feature uses predictive analytics, coupled with our vast data sets to provide insights on potential employee flight risk. Clients leveraging the retention insights offering are showing a 15% reduction in turnover when compared against their industry peers. We're very pleased we received the Bronze Brandon Hall Group Excellence Award for Best Advance in HR Predictive Analytics Technology for this solution. This is the 10th consecutive year they've recognized us.

我對我們的 Retention Insights 產品感到非常興奮，在企業仍然致力於留住現有員工的時候，它繼續為我們的客戶帶來強勁的成果。此功能使用預測分析，結合我們龐大的數據集來提供有關潛在員工離職風險的見解。與業內同行相比，利用保留洞察力產品的客戶營業額減少了 15%。我們很高興憑藉此解決方案獲得了 Brandon Hall Group 卓越人力資源預測分析技術的最佳進步青銅獎。這是他們連續第 10 年認可我們。

During the quarter, we also were recognized with the IDC 2022 SaaS Customer Service Satisfaction Award for core HR. We are honored to have received this award as another confirmation of the power of our HR technology and the quality of our advisory services. These awards continue to validate that Paychex is a technology leader and that our focus on HR is delivering real impact for our clients and our employees.

在本季度，我們還因核心人力資源而獲得了 IDC 2022 SaaS 客戶服務滿意度獎。我們很榮幸獲得這個獎項，這是對我們人力資源技術的力量和我們諮詢服務質量的又一次肯定。這些獎項繼續證明 Paychex 是技術領導者，我們對人力資源的關注正在為我們的客戶和員工帶來真正的影響。

At this time, we're heading into our critical year-end season. We are fully staffed in both sales and service, and we have good momentum. I want to thank all the employees in advance for all their hard work and dedication in making this the best year-end ever.

此時，我們正進入關鍵的年終季節。我們在銷售和服務方面人手充足，發展勢頭良好。我要提前感謝所有員工，感謝他們的辛勤工作和奉獻精神，使今年成為有史以來最好的年終。

Now I'll turn it over to Efrain, who will take you through our financial results for the second quarter. Efrain?

現在我將把它交給 Efrain，他將向您介紹我們第二季度的財務業績。克勞恩？

Thanks, John, and good morning. I'd like to remind everyone that today's commentary will contain forward-looking statements that refer to future events. You know the customary comments, take a look on our press release if you have any questions on that.

謝謝，約翰，早上好。我想提醒大家，今天的評論將包含涉及未來事件的前瞻性陳述。你知道習慣性評論，如果你對此有任何疑問，請查看我們的新聞稿。

Let me start by providing some of the key points for the quarter, and then I'll finish with a review of our fiscal 2023 outlook. Both service revenue and total revenue increased 7% to $1.2 billion. Management Solutions revenue increased 8% to $895 million driven by higher client employment levels and revenue per client. Revenue per client was positively impacted by additional product penetration. HR ancillary services, largely ERTC and price realization, we continue to see strong attachment of our HR solutions, retirement and time and attendance solutions.

讓我首先提供本季度的一些要點，然後我將回顧我們的 2023 財年展望。服務收入和總收入均增長 7% 至 12 億美元。管理解決方案收入增長 8%，達到 8.95 億美元，這得益於更高的客戶就業水平和每位客戶的收入。每個客戶的收入受到額外產品滲透的積極影響。人力資源輔助服務，主要是 ERTC 和價格實現，我們繼續看到我們的人力資源解決方案、退休和考勤解決方案的強大附件。

I will note that revenue from our ERTC service benefited second quarter revenue growth by approximately 1%. We anticipated ERTC revenue would moderate in fiscal 2023, but strong demand and execution have led to better-than-expected results. While ERTC was a tailwind to Management Solutions growth for the first half, it will become a moderate headwind in the second half.

我會注意到，我們的 ERTC 服務收入使第二季度收入增長了約 1%。我們預計 ERTC 收入將在 2023 財年放緩，但強勁的需求和執行導致了好於預期的結果。雖然 ERTC 是上半年管理解決方案增長的順風，但下半年將成為適度的逆風。

PEO and Insurance Solutions revenue increased 4% to $273 million, driven by growth in average worksite employees and revenue per client. The rate of growth was tempered by the impact of factors John previously discussed, including lower medical plan attachment and participant volumes along with the mix shift to ASO. And I would just note on PEO and Insurance Solutions, Insurance Solutions was significantly below the growth rate of PEO.

PEO 和 Insurance Solutions 收入增長 4% 至 2.73 億美元，這主要受平均工作場所員工和每位客戶收入增長的推動。 John 之前討論的因素的影響降低了增長率，包括較低的醫療計劃附件和參與者數量以及向 ASO 的混合轉移。我只想注意到 PEO 和保險解決方案，保險解決方案的增長率大大低於 PEO。

Interest on funds held for clients increased 54% for the quarter to $22 million, primarily due to higher average interest rates along with growth in investment balances. Total expenses increased 7% to $718 million. Expense growth was largely attributable to higher headcount, wage rates and general costs to support the growth of our business.

本季度為客戶持有的資金利息增加了 54%，達到 2200 萬美元，這主要是由於平均利率上升以及投資餘額的增長。總支出增長 7% 至 7.18 億美元。費用增長主要歸因於支持我們業務增長的員工人數、工資率和一般成本增加。

Operating income increased 7% to $472 million with an operating margin of 39.7%, in line with the prior year period. Our effective tax rate for the quarter was 24.2% compared to 24.1% in the prior year period.

營業收入增長 7% 至 4.72 億美元，營業利潤率為 39.7%，與上年同期持平。我們本季度的有效稅率為 24.2%，而去年同期為 24.1%。

Net income increased 8% to $360 million and diluted earnings per share increased 9% to $0.99 per share. Adjusted net income and adjusted diluted earnings per share both increased 9% from the quarter to $359 million and $0.99 per share, respectively.

淨收入增長 8% 至 3.6 億美元，稀釋後每股收益增長 9% 至每股 0.99 美元。調整後的淨收入和調整後的稀釋後每股收益均比本季度增長 9%，分別達到 3.59 億美元和每股 0.99 美元。

Quick summary of year-to-date financial results. Total service revenue and total revenue both increased 9% to $2.4 billion. Management Solutions increased 10% to $1.8 billion. PEO and Insurance Solutions increased 6% to $556 million. Op income increased 10% with a margin of 40.4% with modest expansion year-over-year and adjusted net income and adjusted diluted earnings per share both increased 12% to $731 million and $2.02 per share.

年初至今財務結果的快速摘要。總服務收入和總收入均增長 9% 至 24 億美元。管理解決方案增長 10% 至 18 億美元。 PEO 和 Insurance Solutions 增長 6% 至 5.56 億美元。營業收入增長 10%，利潤率為 40.4%，同比溫和擴張，調整後的淨收入和調整後的稀釋後每股收益分別增長 12% 至 7.31 億美元和每股 2.02 美元。

Let's look at our financial position. It's strong with cash, restricted cash and total corporate investments of more than $1.3 billion and total borrowings of approximately $808 million as of November 30, 2022. Cash flow from operations increased and was $686 million for the first half of fiscal 2023, and this was driven by higher net income and changes in working capital. We paid out quarterly dividends at $0.79 per share for a total of $569 million during the first half of 2023, our 12-month rolling return on equity was an absolutely stellar 46%.

讓我們看看我們的財務狀況。截至 2022 年 11 月 30 日，現金、受限現金和公司總投資超過 13 億美元，借款總額約為 8.08 億美元，表現強勁。2023 財年上半年，運營現金流增加，為 6.86 億美元，這是受更高的淨收入和營運資本變化的推動。 2023 年上半年，我們以每股 0.79 美元的價格支付了總計 5.69 億美元的季度股息，我們 12 個月的滾動股本回報率達到了 46% 的驚人水平。

Now I'll turn to the guidance for the current fiscal year ending May 31, 2023. Our current outlook incorporates our first half results, obviously, in our view of the evolving macroeconomic environment. We have raised guidance in many areas, but moderated the range for PEO and Insurance Solutions based on factors previously discussed.

現在我將轉向截至 2023 年 5 月 31 日的當前財政年度的指導。顯然，從我們對不斷變化的宏觀經濟環境的看法來看，我們目前的展望包含了我們上半年的業績。我們在許多領域提高了指引，但根據之前討論的因素調整了 PEO 和 Insurance Solutions 的範圍。

Updated guidance is as follows: Management Solutions revenue expected to grow in the range of 7% to 8%; PEO and Insurance Solutions expected to grow in the range of 5% to 7%; interest on funds held for clients is expected to be in the range of $100 million to $110 million; total revenue is expected to grow approximately 8%; and other income expense net, and I'd just remind you that the net of our debt service plus earnings on our corporate portfolios, that number is now expected to be income of $5 million to $10 million. Adjusted diluted earnings per share is now expected to grow in the range of 12% to 14%.

更新後的指引如下：管理解決方案收入預計增長 7% 至 8%； PEO 和 Insurance Solutions 預計增長 5% 至 7%；為客戶持有的資金利息預計在 1 億美元至 1.1 億美元之間；總收入預計增長約8%；和其他收入支出淨額，我只想提醒你，我們的償債淨額加上我們公司投資組合的收益，這個數字現在預計為 500 萬至 1000 萬美元的收入。調整後的攤薄每股收益現在預計將增長 12% 至 14%。

Guidance for margins and effective tax rate are unchanged, although we do anticipate meaning towards the upper end of the range on operating margin and the lower end of the range on effective tax rate.

利潤率和有效稅率的指導沒有變化，儘管我們確實預計營業利潤率範圍的上限和有效稅率範圍的下限意味著意義。

Turning to the third quarter. We currently anticipate that total revenue growth will be approximately 6% and that operating margin in the third quarter will be in the range of 43% to 44%.

轉到第三季度。我們目前預計總收入增長約為 6%，第三季度的營業利潤率將在 43% 至 44% 之間。

Of course, all of this is subject to our current assumptions, which could change if there are changes in the macro environment. We will update you again on the third quarter call, and I will refer you to our investor slides on the website for more information.

當然，這一切都取決於我們目前的假設，如果宏觀環境發生變化，這些假設可能會發生變化。我們將在第三季度的電話會議上再次為您更新，我將向您推薦我們網站上的投資者幻燈片以獲取更多信息。

I'll now turn the call back over to John.

我現在將電話轉回給約翰。

Thank you, Efrain. [Todd], we will now open the call for questions.

謝謝你，埃夫拉因。 [托德]，我們現在開始提問。

(Operator Instructions) We'll take our first question from Ramsey El-Assal with Barclays.

（操作員說明）我們將從 Ramsey El-Assal 和 Barclays 提出我們的第一個問題。

Happy holidays to you. I had a question on the insurance business. I'm just curious, you mentioned lower medical plan attachment and the mix of ASO. What do you think is the underlying driver there? Is there any other color or insight that you have in terms of why that -- sort of those dynamics are kind of kicking in right now?

祝你節日快樂。我有一個關於保險業務的問題。我只是好奇，您提到了較低的醫療計劃附件和 ASO 的組合。您認為那裡的潛在驅動因素是什麼？你是否有任何其他顏色或洞察力來解釋為什麼 - 這些動態現在正在發揮作用？

Yes. Look, I think I'll step back a little bit and then I'll (inaudible) on your question. I think our HR solutions, when you look at the combination of ASO and PEO continues to grow at double-digit rates. We're very happy with the progress there. As we said, we surpassed the 2 million employees served. And if you go back and think about that in fiscal year '19, we were at $1.2 million disclosed. So that's a 72% increase and then you think about that, we had 1 year of COVID, where I think is probably like 3%. So very solid growth in both of those products.

是的。看，我想我會後退一點，然後我會（聽不清）回答你的問題。我認為我們的人力資源解決方案，當你看到 ASO 和 PEO 的組合時，會繼續以兩位數的速度增長。我們對那裡的進展感到非常滿意。正如我們所說，我們服務的員工超過了 200 萬。如果你回頭想想 19 財年的情況，我們披露的金額為 120 萬美元。所以這是 72% 的增長，然後你想一想，我們有 1 年的 COVID，我認為可能是 3%。這兩種產品的增長非常穩健。

I think when you look inside the agency has struggled. When you look under, there's a lot of economic pressure, I think, on employers and employees. Most of our insurance agency tends to attract first time employers, who are offering insurance for the first time, a lot of new business start type of driven activity. And I think in this environment, I think even though they would want to offer insurance to their clients, I think they're finding that it's economically difficult for them to think about adding that product.

我認為當你看內部時，該機構一直在掙扎。當你往下看時，我認為雇主和僱員面臨著很大的經濟壓力。我們的大多數保險代理機構都傾向於吸引首次雇主，他們是第一次提供保險，許多新業務開始類型的驅動活動。而且我認為在這種環境下，我認為即使他們想為他們的客戶提供保險，我認為他們發現他們在經濟上很難考慮添加該產品。

And then when we look at the participation rate, the other dynamic there is you need 2 things. when you needed an employer to buy it, and then you need to employees to contribute their fair share. We've also seen some decreases in employees, who are electing not to participate in their employer plans. So you have those 2 dynamics, I can't connect the 2 directly. But certainly, when I look at the hours work, when I looked at inflationary pressure of wages, I wouldn't be surprised if that's some of the economic decision that's being made there.

然後當我們查看參與率時，另一個動態是您需要兩件事。當您需要雇主購買它時，然後您需要員工貢獻他們應得的份額。我們還看到選擇不參加雇主計劃的員工有所減少。所以你有這兩個動態，我不能直接連接這兩個。但可以肯定的是，當我查看工作時間，查看工資的通脹壓力時，如果這是那裡做出的一些經濟決定，我不會感到驚訝。

Got it. Okay. Super helpful. One follow-up for me. You also talked about Management Solutions higher product attachment cross-sell. Can you kind of update us on your strategy there? What levers you're using to execute on cross-sell and what inning we're in, in terms of that broader opportunity?

知道了。好的。超級有幫助。我的一個後續行動。您還談到了管理解決方案更高的產品附加交叉銷售。你能告訴我們你在那裡的戰略嗎？就更廣泛的機會而言，您正在使用什麼槓桿來執行交叉銷售以及我們所處的局？

Yes. Look, what we've seen across the board, our digital offerings, our online solutions continue to attract their driving efficiency inside companies. That's things that are looking for. You think about our time and attendance solutions. They're also dealing with more dispersed workforces. So that's driving demand, onboarding -- recruiting and onboarding. So we still have a very tight labor market for small and medium-sized businesses.

是的。看，我們全面看到的，我們的數字產品，我們的在線解決方案繼續吸引他們在公司內部提高效率。這就是正在尋找的東西。您考慮我們的考勤解決方案。他們還在處理更分散的勞動力。因此，這推動了需求、入職——招聘和入職。因此，我們的中小企業勞動力市場仍然非常緊張。

So our recruiting and onboarding experience has really driven demand, it's in partnership with indeed. As a matter of fact, I think the last time we reported, we were somewhere around 1.8 million employees hired through this new onboarding -- hiring and onboarding, and we're approaching the 3 million mark in just 6 months since we last reported that number. So that's been very attractive as people are trying to attract and retain -- and then our retention and insights.

因此，我們的招聘和入職經驗確實推動了需求，這是與 indeed 的合作。事實上，我認為我們上次報告時，我們大約有 180 萬名員工通過這種新的入職培訓——招聘和入職，而自我們上次報告以來，我們在短短 6 個月內就接近了 300 萬大關數字。所以這非常有吸引力，因為人們試圖吸引和留住 - 然後是我們的保留和洞察力。

So we go out, we have our HR professionals talking to our clients. It's interesting on the Retention Insights. We're actually doing behind the scenes insights to a data analytics team, and they were actually flagging clients that we think have an issue, and then we're proactively going out to them and having our HR consultants engage them in a conversation.

所以我們走出去，讓我們的人力資源專家與我們的客戶交談。 Retention Insights 很有趣。我們實際上是在幕後對數據分析團隊進行洞察，他們實際上是在標記我們認為有問題的客戶，然後我們會主動去找他們，讓我們的人力資源顧問與他們進行對話。

Our next question comes from Bryan Bergin with Cowen.

我們的下一個問題來自 Bryan Bergin 和 Cowen。

One of the thing in here just on some of the leading indicators and the demand environment. So just since you reported last and then over the last few weeks. Can you just talk about what you're seeing in that new demand across employer size as well and offering?

這裡的一件事只是關於一些領先指標和需求環境。所以就在你上次和過去幾週報告之後。你能談談你在不同雇主規模和提供的新需求中看到了什麼嗎？

Yes. Again, what I would tell you is, even though the -- it's a challenging and kind of a mixed macro environment, everything you read about the resiliency that we're seeing in the small and midsized businesses continues to be strong. So when you look at the leading indicators that we would be looking at of kind of the first signs of a downturn, we're simply not seeing those in our indicators at this time, and that's what we've reported here.

是的。再一次，我要告訴你的是，儘管這是一個充滿挑戰和混合的宏觀環境，但你所讀到的關於我們在中小型企業中看到的彈性的一切仍然很強勁。因此，當你查看領先指標時，我們會看到經濟衰退的最初跡象，我們目前根本沒有在我們的指標中看到這些，這就是我們在這里報告的內容。

I think there's certainly been a rollercoaster effect from the COVID perspective. Certainly, when you look under the covers, I think our mid-market customers and larger customers seem to be doing better than our small customers and small customers seem to be doing better than the micro customers in terms of dealing with inflation and the recruiting scene. But when you look at the overall macro perspective, we're not seeing anything at this time in our indicators that would indicate any kind of downturn for small businesses.

我認為從 COVID 的角度來看肯定有過山車效應。當然，當你仔細觀察時，我認為我們的中端市場客戶和大客戶似乎比我們的小客戶做得更好，而小客戶似乎在應對通貨膨脹和招聘方面比微型客戶做得更好.但是當你從整體宏觀角度來看時，我們目前在我們的指標中沒有看到任何跡象表明小企業出現任何形式的衰退。

Okay. Okay. That's good to hear. I guess just a follow-up on that. As you think about the macro assumptions underlying the second half outlook. Can you just talk about what you're thinking about for client employment levels, that a business client loss or things like that?

好的。好的。聽起來還不錯。我想只是對此的後續行動。當你考慮下半年前景的宏觀假設時。你能談談你對客戶就業水平的看法嗎？商業客戶流失或類似的事情？

I think pretty -- at this point, I think we're assuming an environment that's similar to what we saw in the first half. And with this caveat, Bryan, that as we've looked at quarter-over-quarter, you continue to see a pace that is moderating versus the previous quarter. I think that's the trend we think continues into -- through the end of the fiscal. So while it doesn't represent a sharp departure, we still see continuing signs of moderation as we go through the year.

我覺得很漂亮——在這一點上，我認為我們假設的環境與我們在上半年看到的相似。 Bryan 需要注意的是，正如我們逐季查看的那樣，您繼續看到與上一季度相比有所放緩的步伐。我認為這是我們認為持續到財政結束的趨勢。因此，雖然這並不代表急劇偏離，但我們在這一年中仍然看到持續的溫和跡象。

Now that assumes that the impact of the Fed -- Fed's rate raising continues to have the same incremental impact it's had in the first couple of quarters. What do I mean by that? I mean, right now, what we see is it's having the effect of starting to tamp wage pressures. It's not having a dramatic impact on hiring especially in the SME firms that we serve. If that started to change, it would change our assumptions. Right now, we don't see that occurring. But right now, we're not at 5% short-term rates. We're going to have to monitor that. And there is just a note of caution that we have as we approach what they would consider their peak short-term interest. So no dramatic departure from the first half.

現在假設美聯儲的影響 - 美聯儲加息繼續產生與前幾個季度相同的增量影響。那是什麼意思？我的意思是，現在，我們看到的是它正在產生開始抑制工資壓力的效果。它對招聘沒有顯著影響，尤其是在我們服務的中小企業中。如果這種情況開始發生變化，那將改變我們的假設。現在，我們沒有看到這種情況發生。但現在，我們的短期利率不是 5%。我們將不得不對此進行監控。當我們接近他們認為的短期利益峰值時，我們有一個警告。所以與上半場沒有太大的不同。

Our next question comes from Jason Kupferberg with Bank of America.

我們的下一個問題來自美國銀行的 Jason Kupferberg。

I wanted to start just on Management Solutions with the raise of the revenue guidance there. Just -- which of the key operating metrics are you now bullish on? I mean is it pricing, retention, bookings, checks per client?

我想從管理解決方案開始，提高那裡的收入指導。只是 - 您現在看好哪些關鍵運營指標？我的意思是每個客戶的定價、保留、預訂、支票？

Driving that, Jason, is -- let me pick a couple of those out and say where we're stronger, where it's not as strong. So obviously, we expect client retention and revenue retention to remain strong. It's strong and we expect that to occur during the balance of the year. We're seeing a little bit more increase in unit and unit churn on the low end, that's to be expected given the mix of the client base over the last couple of years, but it's coupled with very strong client retention, so higher value clients we're retaining, which is what we want to do.

Jason，驅動它的是——讓我挑出其中的幾個，然後說出我們在哪些方面更強大，哪些方面不那麼強大。很明顯，我們預計客戶保留率和收入保留率將保持強勁。它很強大，我們預計這將在今年餘下時間發生。我們看到低端的單位和單位流失率有所增加，考慮到過去幾年的客戶群組合，這是可以預料的，但它與非常強大的客戶保留率相結合，因此更高價值的客戶我們正在保留，這就是我們想要做的。

On the checks question, that's a good one because in the first half, we saw good checks per payroll or pays per control growth in the first half. We don't expect it to be that strong in the back half of the year. So we expect that it moderates as we get into the second half of the year partly compares partly simply because of the amount of growth that we saw last year. So that -- but it still will be a positive contributor.

關於支票問題，這是一個很好的問題，因為在上半年，我們看到每個工資單的支票或上半年控制增長的支付都很好。我們預計它在下半年不會那麼強勁。因此，我們預計隨著我們進入今年下半年，它會有所緩和，部分原因是我們去年看到的增長量。所以 - 但它仍然會是一個積極的貢獻者。

We think that ERTC will still be a factor in the back half of the year, although I called it out Management Solutions that's moderating. It just won't moderate quite as much as we proceed it to be. And then we consider the demand environment to still be positive and obviously think that sales will remain positive we go through the year. So that's a little bit more color on each of those.

我們認為 ERTC 仍將是今年下半年的一個因素，儘管我稱之為正在緩和的管理解決方案。它只是不會像我們進行的那樣緩和。然後我們認為需求環境仍然是積極的，並且顯然認為我們全年的銷售將保持積極。所以每一個都有一點顏色。

Yes. And Jason, I would probably add to that. I mean we continue to see the demand for our HR solutions, both ASO and PEO. We like the demand, what we're seeing an increase in worksite employees and the retention in those has been very -- I mean, historic record high when you look at our HR outsourcing businesses, both of them at record highs. So we've had solid revenue retention across -- at the macro level. And then when you look at what's going on in the HR area, very, very positive results, and that's certainly helping us as well.

是的。傑森，我可能會補充一點。我的意思是我們繼續看到對我們的人力資源解決方案的需求，包括 ASO 和 PEO。我們喜歡需求，我們看到工作場所員工的增加以及這些員工的保留非常 - 我的意思是，當您查看我們的人力資源外包業務時，它們都處於歷史高位。因此，我們在宏觀層面上保持了穩定的收入。然後，當您查看人力資源領域發生的事情時，會發現非常非常積極的結果，這當然也對我們有幫助。

Okay. Understood. My next question is just on the -- coming back to the insurance side of things. I mean, you talked about -- you talked about some macroeconomic effects that you think are causing that business to be a little softer than you would have anticipated. But are there any execution issues you feel you need to take a look at or anything that could border on structural challenge vis-a-vis cyclical? Just wanted to see if we can unpack that a little more?

好的。明白了。我的下一個問題是——回到事情的保險方面。我的意思是，你談到了——你談到了一些你認為導致該業務比你預期的要疲軟的宏觀經濟影響。但是，您是否認為有任何執行問題需要考慮，或者是否有任何可能與週期性結構性挑戰接壤的問題？只是想看看我們是否可以再打開包裝一點？

Yes. Well, Jason, let's talk a little bit because we've talked about the agency a little bit. I mean P&C has been a continued product. Again, remember, most of our P&C business is workers' comp, a vast majority of it to new start-up businesses. And that's been a very soft market for a period of time. So certainly, that has continued to be a drag and that has not turned around. I think when you look at the H&B side, which has been a little bit more impacted up and down as you went through this pandemic. It's what I kind of say, you have a little slower new business starts, so people -- less people we're talking to, and then you have the economic pressure of adding a benefit at that cost both from an employer and employee side.

是的。好吧，傑森，讓我們談一談因為我們已經談了一點關於該機構的事情。我的意思是 P&C 一直是一個持續的產品。同樣，請記住，我們的大部分 P&C 業務都是工人的補償，其中絕大多數是新的初創企業。一段時間以來，這是一個非常疲軟的市場。所以可以肯定的是，這仍然是一個拖累，而且還沒有好轉。我認為當你看 H&B 方面時，在你經歷這場大流行的過程中，它上下受到的影響要大一些。這就是我所說的，你的新業務開始得有點慢，所以人們 - 我們正在與之交談的人更少，然後你面臨著來自雇主和僱員雙方以這種成本增加福利的經濟壓力。

So I don't think there's anything terribly structurally. Now one of the things we're certainly doing is we're trying to make adjustments to our approach both in terms of driving more digital engagement on the P&C side. We're also doing a lot more going back to current clients on the H&B side, where we think we may have more success in converting them from existing benefit programs. And we're going to continue to look at expanding our insurance product portfolio to meet the demands of the marketplace with some things that may be more economical.

所以我認為在結構上沒有什麼可怕的。現在我們肯定在做的一件事是，我們正在努力調整我們的方法，以推動 P&C 方面的更多數字參與。我們還在 H&B 方面做更多的工作回到現有客戶，我們認為我們可能會更成功地將他們從現有的福利計劃中轉變過來。我們將繼續考慮擴大我們的保險產品組合，通過一些可能更經濟的東西來滿足市場需求。

But I don't think there's anything major that we have those, but -- but again, this is really a continued sluggishness with P&C and then this kind of lack of attachment and lack of participation in H&B.

但我不認為我們有什麼重要的事情，但是 - 但再次強調，這實際上是 P&C 的持續低迷，然後是這種缺乏依戀和缺乏對 H&B 的參與。

We'll take our next question from Kevin McVeigh with Credit Suisse.

我們將接受瑞士信貸凱文·麥克維 (Kevin McVeigh) 的下一個問題。

Happy holidays. And John, congratulations on the first call. Your (inaudible) call. I wanted to go into the puts and takes on the guidance a little bit. I mean, there's been a pretty sizable step-up in float, which is pretty profitable. And then the swing factor on the other income is pretty profitable, too. But we're kind of holding the EBITDA and I know the other income is below the line, but the floats above, is there anything offsetting that, Efrain? Or is that a little conservatism? Just -- because it seems like you're overperforming in some of the more profitable parts of the business as opposed to not and it doesn't seem like that's flowing through. So is there anything I'm missing there or just not thinking about that right?

節日快樂。約翰，祝賀你接到了第一個電話。你的（聽不清）電話。我想進入看跌期權並接受一些指導。我的意思是，浮存金有了相當大的提升，這是非常有利可圖的。然後其他收入的搖擺因素也很有利可圖。但我們有點持有 EBITDA，我知道其他收入低於這條線，但上面的浮動，有什麼可以抵消它，Efrain？還是有點保守？只是 - 因為看起來你在業務的一些更有利可圖的部分錶現超常，而不是沒有而且它似乎並沒有流過。那麼我在那裡遺漏了什麼或者只是沒有考慮到這一點嗎？

No, no, not really, Kevin. I mean I think when you do the arithmetic, what you end up and the color that I gave you was that we saw ourselves more towards the top of the range. So there is flow through on that revenue. And in the back half of the year, we don't assume that 100% floats through. We look at the year position ourselves also to anticipate potential spending going into '24. We may end up outperforming that number, but at this point, we do always approach with an element of caution and conservatism as we go through the year.

不，不，不是真的，凱文。我的意思是，我認為當你進行算術運算時，你最終得到的結果和我給你的顏色是我們認為自己更接近範圍的頂端。因此，該收入有流動性。在今年下半年，我們不會假設 100% 浮動。我們自己也會審視這一年的情況，以預測進入 24 世紀的潛在支出。我們最終可能會超過這個數字，但在這一點上，我們在這一年中始終保持謹慎和保守的態度。

That makes a lot of sense. And then can you remind us, Efrain, just what Fed funds is in that $100 million, $110 million in terms of from a Fed plan perspective?

這很有意義。然後你能提醒我們，Efrain，從美聯儲計劃的角度來看，這 1 億美元、1.1 億美元的聯邦資金是多少？

We assume we're going to end up close to where the Fed is around a 5% terminal rate as we get into the spring. The -- I just caution that you can't simply take the portfolio and put that rate in because it will depend on what the balance between short term and long term is. And I've been saying throughout the year that what I want to do is position the portfolio. So we don't -- so if we're in a situation where the Fed decides to raise and then suddenly sharply cut, we're a little bit more protected than we were during the last cycle when the same thing occurred. So -- but obviously, we're flowing that through the P&L.

我們假設我們將在進入春季時最終接近美聯儲 5% 左右的最終利率。 - 我只是提醒您，您不能簡單地採用投資組合併放入該利率，因為這將取決於短期和長期之間的平衡。全年我一直在說我想做的是定位投資組合。所以我們不會——所以如果我們處於美聯儲決定加息然後突然大幅降息的情況下，我們比上一個週期發生同樣事情時受到的保護要多一些。所以——但很明顯，我們正在通過損益表進行處理。

Our next question comes from Samad Samana with Jefferies.

我們的下一個問題來自 Jefferies 的 Samad Samana。

Maybe just on the record sales performance. I guess, can you comment on bookings activity, both in aggregate and then maybe the linearity of the quarter and what you're seeing as we get closer towards the end of the year and as your clients adjust to maybe the changing macroeconomic environment.

也許只是創紀錄的銷售業績。我想，您能否對預訂活動發表評論，包括總體預訂活動，然後可能是本季度的線性度，以及隨著我們接近年底以及您的客戶可能會適應不斷變化的宏觀經濟環境，您所看到的情況。

Yes. So we -- look, we continue to see very strong demand for our products and services. As I said, continue on the HR side, continue to see strength there. All of our digital products. We're not seeing a lot of change in the competitive landscape at this point at all. Again, we continue to find our clients are really struggling with dealing with inflation. And certainly, our technology solutions are making them more efficient. So we've got a definitely efficiency play there. We're also helping them with the ERTC Again, remember, I think our average is over $150,000 per client that we're helping them. We've helped 50,000 clients, and that's become a big economic help to them. That's helping us.

是的。所以我們 - 看，我們繼續看到對我們的產品和服務的非常強勁的需求。正如我所說，繼續在人力資源方面，繼續看到那裡的力量。我們所有的數碼產品。在這一點上，我們根本沒有看到競爭格局發生太大變化。同樣，我們繼續發現我們的客戶確實在努力應對通貨膨脹。當然，我們的技術解決方案正在提高它們的效率。所以我們在那裡有絕對的效率。我們還通過 ERTC 再次幫助他們，請記住，我認為我們幫助他們的每個客戶平均超過 150,000 美元。我們已經幫助了 50,000 名客戶，這對他們來說是一筆巨大的經濟幫助。那是在幫助我們。

We continue to see strength in the 401(K) business as well as an attachment, a critical benefit that people want to have, their state mandates and that's becoming very popular as well. I mentioned time and attendance and all of our online services, this comprehensive group of online digital experiences that we're rolling out from recruiting. All of those are really resonating with the problems that small businesses are having.

我們繼續看到 401(K) 業務的優勢以及附件，這是人們希望擁有的一項關鍵利益，他們的國家授權，這也變得非常受歡迎。我提到了時間和出勤以及我們所有的在線服務，這是我們從招聘中推出的綜合在線數字體驗組。所有這些都與小企業所面臨的問題產生了共鳴。

Samad, so to your question -- by the way, I think you had me stumped there for a second as to the linearity of it. Here's my answer to that and you can tell me if I answered it correctly. So if I look at first half sales bookings growth, it was certainly solid -- strong. And you have to go back to how are we comparing now on the 2-year stack prepandemic, and we compare favorably certainly to that period of time. But the question for this business is, as everyone on the call knows, Q3 is a really important quarter, our most important quarter.

薩馬德，所以關於你的問題——順便說一下，我想你讓我在那裡難住了一秒鐘關於它的線性度。這是我對此的回答，如果我回答正確，你可以告訴我。因此，如果我看一下上半年的銷售預訂增長，那肯定是穩固的——強勁的。你必須回到我們現在如何比較 2 年堆棧大流行前的情況，我們肯定比那段時間要好。但這個業務的問題是，正如電話中的每個人都知道的那樣，第三季度是一個非常重要的季度，我們最重要的季度。

So generally, when we line up strong in the first half, we end up strong in the second half. When we start to wobble a little bit in the first half, then it will get a little bit tougher in the second half. I think to John's point, we're well positioned for the selling season. The only caveat I would have is that we have to get through the selling season to see how we come out to really kind of get a sense of where the year was by the time third quarter has rolled through, we're pretty much -- we pretty much know where we are for the year. So I think we're lined up well. I think the numbers would suggest that, and we're in the middle of it and we'll report out more in the third quarter.

所以一般來說，當我們在上半場陣容強大時，我們在下半場就會變得強大。當我們在上半場開始有點搖擺不定時，下半場就會變得更加艱難。我認為在約翰看來，我們已經為銷售旺季做好了準備。我唯一要注意的是，我們必須度過銷售旺季，才能真正了解第三季度結束時的情況，我們幾乎——我們幾乎知道這一年我們在哪裡。所以我認為我們的陣容很好。我認為這些數字會表明這一點，我們正處於中間階段，我們將在第三季度報告更多。

That's the color I was looking for, Efrain. And then maybe just, I guess, a follow-up on your own. I think that's about what your customers are doing. Just -- and you said that you're at the expected staffing levels. How are you thinking about your own maybe hiring going forward in the sales and marketing organization? How are you guys planning for based on the assumptions you made in your own guidance as well?

這就是我要找的顏色，Efrain。然後也許只是，我想，你自己的後續行動。我認為這就是您的客戶正在做的事情。只是 - 你說你處於預期的人員配置水平。您如何考慮自己在銷售和營銷組織中的招聘前景？你們如何根據您在自己的指南中所做的假設進行計劃？

Yes. As we said, we're fully staffed, both in sales and service going in to the selling season, which is exactly where we want to be given the demand that we're seeing. And we're going to continue to monitor that. We're being very cautious in adding above that at this point in time. I would say we do see some opportunities for investment as Efrain said, and we will make those investments in the selling season if we see the opportunity to promote certain products and services that we think are resonating in the market. So we're holding back to be able to do that.

是的。正如我們所說，我們在銷售旺季的銷售和服務方面都配備了充足的人員，這正是我們希望滿足我們所看到的需求的地方。我們將繼續對此進行監控。目前，我們在添加上述內容時非常謹慎。正如 Efrain 所說，我會說我們確實看到了一些投資機會，如果我們看到有機會推廣我們認為在市場上引起共鳴的某些產品和服務，我們將在銷售季節進行這些投資。所以我們阻止能夠做到這一點。

If we see some sort of change, we know what the levers are. As we've said, we're the best operators in the business. We're going to continue to do that. We've got our hands on the leverage, but we're not pulling them at this point because we're just not seeing that decrease in the demand that would merit that.

如果我們看到某種變化，我們就知道槓桿是什麼。正如我們所說，我們是業內最好的運營商。我們將繼續這樣做。我們已經掌握了槓桿，但我們現在並沒有拉動它們，因為我們只是沒有看到值得這樣做的需求減少。

Great. Wishing you and your family a great holiday season.

偉大的。祝您和您的家人度過一個愉快的假期。

Our next question comes from Kartik Mehta with Northcoast Research.

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

Just thoughts on pricing, how it's taking. I know, John, you said the competitive environment isn't changing. So I'm wondering how your customers have reacted to the most recent price increases that you had to put in?

只是關於定價的想法，它是如何採取的。我知道，約翰，你說過競爭環境沒有改變。所以我想知道您的客戶對您最近不得不提高的價格有何反應？

Well, Kartik, I would say our average revenue per client is double digits. It's above even any of the pricing levels, and that's really driven by the value we're providing. And we've already talked about it, the attachment, the upgrading we're doing from the HCM to the HR solutions, the attachment we're seeing from our digital experiences that we're adding. So from a revenue per customer as well as a revenue per new sold customer, we actually are doing very, very well there. So I think it demonstrates the value and I think it demonstrates the pricing power that we have.

好吧，Kartik，我想說我們每個客戶的平均收入是兩位數。它甚至高於任何定價水平，這實際上是由我們提供的價值驅動的。我們已經討論過它，附件，我們正在從 HCM 升級到 HR 解決方案，我們從我們正在添加的數字體驗中看到的附件。因此，從每個客戶的收入以及每個新銷售客戶的收入來看，我們實際上做得非常非常好。所以我認為它展示了價值，我認為它展示了我們擁有的定價能力。

And then just looking at the balance sheet. Obviously, the balance sheet is in great shape. And if the economy slows and maybe valuations come down, just your thoughts on maybe buying back stock versus M&A opportunities? What makes more sense for Paychex?

然後只看資產負債表。顯然，資產負債表狀況良好。如果經濟放緩並且估值可能下降，您是否只是考慮回購股票與併購機會？什麼對 Paychex 更有意義？

I don't think anything has changed, Kartik, in the sense that if the right opportunities for M&A came along, we would obviously be constructive on those opportunities. We have a range of opportunities in the funnel that we're looking at. And sometimes we see opportunities that may be worth going after more aggressively. At this point, I think that we have the normal set of opportunities that we have in the funnel.

我認為沒有任何改變，Kartik，從某種意義上說，如果合適的併購機會出現，我們顯然會對這些機會具有建設性。我們正在尋找的漏斗中有一系列機會。有時我們看到可能值得更積極地追求的機會。在這一點上，我認為我們在漏斗中擁有一系列正常的機會。

With respect to buying back shares, I don't think we've changed our outlook in terms of at this point, buying back based on our desire to combat pollution. So I don't think a lot has changed in that sense. I do think the environment and John can also talk to this, but the environment looks more productive for doing both tuck-in acquisitions and a little bit larger scale M&A. And we're very interested in doing that.

關於回購股票，我認為我們目前沒有改變我們的前景，回購是基於我們對抗污染的願望。所以我認為在這個意義上沒有太大變化。我確實認為環境和約翰也可以討論這個問題，但環境看起來更適合進行收購和更大規模的併購。我們對此非常感興趣。

Yes. I think to add on to that, Kartik. Look, I think the market is changing for sure. We've always, I think, had a very similar position. The position has not changed. I think the opportunities are changing, meaning they're presenting themselves a more reasonable valuations. We always are, I think, known to be very conservative and good allocators of capital. And it's not that we've not been interested in doing M&A or going after some technology bolt-ons, but the valuations have just been unreasonable for us to be able to cross that barrier. And at least what we're seeing is we're starting to see some moderation there. And we're going to continue to be as active as we have been in the past. And hopefully, we can get to a point where the market valuations match what we think is a reasonable amount to pay for some of these businesses that we're interested in.

是的。我想補充一點，Kartik。看，我認為市場肯定在變化。我認為，我們的立場一直非常相似。立場沒有改變。我認為機會正在發生變化，這意味著他們正在向自己展示更合理的估值。我認為，我們一直以非常保守和良好的資本配置而著稱。並不是說我們對進行併購或追求一些技術補強不感興趣，而是估值對於我們能夠跨越這一障礙來說是不合理的。至少我們看到的是我們開始看到那裡有一些節制。我們將繼續像過去一樣活躍。希望我們能夠達到市場估值與我們認為合理的價格相匹配的程度，以支付我們感興趣的其中一些業務。

Our next question comes from Bryan Keane with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Bryan Keane。

Just thinking about wage and wage inflation or just inflation in general. What's the direct effect for Paychex? Is it less attachment, less spending from the client that you'll end up seeing?

只考慮工資和工資通脹，或者只是一般的通脹。對 Paychex 的直接影響是什麼？您最終會看到客戶的依戀程度降低，支出減少嗎？

Well, so let's talk about wage inflation. First of all, I'd probably tell you that we have wage inflation, but it's been moderating. If you look at our Paychex IHS index we've been steady for the last 3 months at about 5%. And that's actually kind of moderated a little bit from the increases we were seeing before. When you think about the wages in certain parts of our business and certain pricing models in the PEO in particular, some of our pricing is based on a percentage of wage, similar to what's in the industry. So that can have some uplift. But in general, the wage rate does not have a big impact on our revenue.

好吧，讓我們談談工資通脹。首先，我可能會告訴你，我們有工資通脹，但一直在放緩。如果你看看我們的 Paychex IHS 指數，我們在過去 3 個月一直穩定在 5% 左右。這實際上比我們之前看到的增長有所緩和。當你考慮我們業務某些部分的工資，特別是 PEO 中的某些定價模型時，我們的一些定價是基於工資的百分比，類似於行業中的定價。這樣可以有所提升。但總的來說，工資率對我們的收入影響不大。

And it typically doesn't have a big impact on their appetite to buy attachments or spend more with you guys?

它通常不會對他們購買附件或與你們一起花費更多的胃口產生重大影響？

Not really. I don't see that. I have never seen that analysis that would indicate that. The one thing I would probably say, look, the number of employees, worksite employees is the key driver in our HR businesses, checks in the payroll side of the business, the more people that are employed, the more people that are getting checks, the better. One of the things that I would tell you is that we're seeing in terms of the impact of inflation on employees is they're now working more hours. That's one component that we see.

並不真地。我不這麼認為。我從未見過能表明這一點的分析。我可能會說的一件事，看，員工人數，工作場所員工是我們人力資源業務的關鍵驅動力，檢查業務的工資單方面，僱用的人越多，得到支票的人就越多，更好。我要告訴你的一件事是，我們看到通貨膨脹對員工的影響是他們現在的工作時間更長了。這是我們看到的一個組成部分。

A recent survey of the American Association Staffing actually found is 58% of adults are looking at potentially adding a second job. We are beginning to see people getting checks at 2 different places within the client base, as you can imagine, that's a check as a check. And so again, if you see that type of -- where people are going and working more, working in more places, getting more checks, that's positive for our business.

美國員工協會最近的一項調查實際上發現，58% 的成年人正在考慮增加第二份工作。我們開始看到人們在客戶群中的兩個不同地方獲得支票，正如您可以想像的那樣，這是支票。再一次，如果你看到那種——人們去哪里工作更多，在更多地方工作，得到更多支票，這對我們的業務是積極的。

Got it. No, that's helpful. And then obviously, as you guys talked about the key selling season is happening over the next few months. What are your guys' expectations for new client growth? Is it -- I always think about 2% to 4%. Is it high end, low end of that as you head into the season?

知道了。不，那很有幫助。然後很明顯，正如你們所說，關鍵的銷售季節將在接下來的幾個月內發生。你們對新客戶增長的期望是什麼？是嗎——我一直在考慮 2% 到 4%。當你進入賽季時，它是高端還是低端？

Well, so Bryan, I think typically, we say 1% to 3%. We will see where we come out of the range there. We expect it to be a good season. I think that's about as much what I can say as we're in the midst of it.

好吧，布萊恩，我認為通常情況下，我們說 1% 到 3%。我們將看到我們從那裡走出的範圍。我們希望這是一個好季節。我想這就是我們身處其中時我能說的。

Our next question comes from Eugene Simuni with MoffettNathanson.

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

Eugene. That was a good (inaudible) of your last night.

尤金。那是你昨晚的好（聽不清）。

It's not an easy one. So I always appreciate a good try of it. I wanted to come back to the PEO insurance for a second, if you don't mind. A lot of questions have been answered on the insurance side of things. But I wanted to just double-click on the PEO specifically. So putting the agency aside and even putting the issues with the insurance attachment aside, which we've talked about. Can you just comment explicitly on what you're seeing in the barebones PEO business, literally PEO works at (inaudible) your bookings trend there? I think that would be very helpful.

這不是一件容易的事。所以我總是很欣賞它的良好嘗試。如果您不介意的話，我想稍微回到 PEO 保險。關於保險方面的許多問題已經得到解答。但我只想專門雙擊 PEO。因此，將代理機構放在一邊，甚至將我們已經討論過的保險附件問題放在一邊。您能否明確評論您在準系統 PEO 業務中看到的內容，從字面上看，PEO 在（聽不清）您的預訂趨勢中發揮作用？我認為這會很有幫助。

Yes. So I'll let John talk to sales, but I think that's a great question. And I just want to take a second to kind of, as you said, double click on the PEO and the elements of revenue that affect revenue growth there. So if everyone on the call knows the first thing that revenue in insurance in the PEO is primarily derived from the State of Florida on the health care side. Workers' comp is different, but on the health care side. So it's a big number, but it's primarily going to be influenced by Florida.

是的。所以我會讓約翰與銷售人員交談，但我認為這是一個很好的問題。正如你所說，我只想花點時間雙擊 PEO 和影響那裡收入增長的收入要素。因此，如果電話中的每個人都知道 PEO 的保險收入主要來自佛羅里達州的醫療保健方面的第一件事。工人的補償是不同的，但在醫療保健方面。所以這是一個很大的數字，但它主要會受到佛羅里達州的影響。

To John's point, we anecdotally saw some interesting things in the first half of the year where we had people, who have insurance stayed with the PEO, but decided they didn't want insurance. And it was a little bit of an unusual situation. We didn't call out specific characteristics of the state of Florida in the first half of the year because, frankly, don't want to pile on that excuse as to what happened there, but Florida had an unusual idiosyncratic period in the first half of the year. Long story short, the level of attachment that we expected to see in that state in particular, didn't materialize.

就 John 的觀點而言，我們在今年上半年有趣地看到了一些有趣的事情，我們有一些人，他們有保險留在 PEO，但決定他們不想要保險。這有點不尋常。我們沒有指出今年上半年佛羅里達州的具體特徵，因為坦率地說，不想以那個藉口來解釋那裡發生的事情，但佛羅里達州上半年有一個不同尋常的特殊時期的一年。長話短說，我們特別期望在那種狀態下看到的依戀程度並沒有實現。

As I looked at it and we looked at it, we said what makes sense? Well, we don't expect, we expect the second half revenue in PEO will be stronger than the first half. But we're a little cautious based on what we're seeing with respect to insurance attachment. And so that's why we had an abundance of caution. We lowered the range for revenue on PEO in the second half. I think it's really important, all of that is the punch line to make this point has no impact on margins or on net income.

當我看著它，我們看著它時，我們說什麼有意義？好吧，我們不期望，我們預計 PEO 的下半年收入將強於上半年。但根據我們在保險附件方面所看到的情況，我們有點謹慎。因此，這就是我們非常謹慎的原因。我們在下半年降低了 PEO 的收入範圍。我認為這非常重要，所有這些都是讓這一點對利潤率或淨收入沒有影響的妙語。

So we could easily have 5% or 6% PEO growth and have 8% or 9% depending on the mix of revenue, insurance versus admin that wouldn't have any impact on margins. So that's largely driven by softness on that side of the business, and I could be reporting, and we could be reporting them in the fourth quarter. We had a really sharp spike in insurance attachment. That's the reason we manage the business the way we do. We're not expecting to make money out of there. Obviously, we'd like it to be a bit higher than it is.

因此，我們可以很容易地實現 5% 或 6% 的 PEO 增長，並有 8% 或 9% 的增長，具體取決於收入、保險與管理的組合，這不會對利潤率產生任何影響。所以這在很大程度上是由業務方面的疲軟推動的，我可以報告，我們可以在第四季度報告它們。我們的保險附件數量激增。這就是我們以自己的方式管理業務的原因。我們不指望從那裡賺錢。顯然，我們希望它比現在高一點。

But I think it's really important to remember that worksite employees, that's an important point. What we're seeing is we're seeing solid growth of worksite employees and PEO in the PEO business, which is one thing that encourages me in terms of the back half of the year. So we're not seeing softness in terms of worksite employees, and that's really the driver of profitability in the business. You don't have the work sites, you're not going to have it.

但我認為記住工地員工真的很重要，這是很重要的一點。我們看到的是，我們看到 PEO 業務中工地員工和 PEO 的穩步增長，這是在今年下半年鼓勵我的一件事。因此，我們沒有看到工地員工的疲軟，而這確實是企業盈利能力的驅動力。你沒有工作地點，你不會有它。

So it's a little bit digging in, you asked the right question. When you look at it, it really -- the fundamentals beneath the issue of insurance looks solid. I'll let John talk to what's happening on the sales side.

所以有點深入，你問了正確的問題。當你看它時，它真的——保險問題背後的基本面看起來很穩固。我會讓 John 談談銷售方面的情況。

Yes. No. Look, our deference point, this insurance attachment thing is localized to Florida. Our attachment rate in the PEO for our clients in Texas has no impact on our revenue at all. And so the fact that it does in Florida has an impact. But look, I think the PEO value proposition is still strong. It's still very solid. You look at evidence of that. I look at our revenue retention and our retention of clients there is at near record levels, very strong. We continue to see a strong worksite employee growth.

是的。不，看，我們的參考點，這個保險附件是佛羅里達州本地化的。我們在德克薩斯州客戶的 PEO 中的依戀率對我們的收入沒有任何影響。因此，它在佛羅里達州所做的事實會產生影響。但是，我認為 PEO 的價值主張仍然很強大。它仍然非常堅固。你看看這方面的證據。我看看我們的收入保留率和客戶保留率接近創紀錄水平，非常強勁。我們繼續看到強勁的工作場所員工增長。

And so again, I feel really good about where we are, a position. We're fully staffed there. We're into the selling season. and very confident that we have the right products and services for that market. So again, if dynamics in the market change, I would expect those are going to impact others just like they impact us.

因此，我再次對我們所處的位置感到非常滿意。我們那里人手充足。我們進入了銷售季節。並且非常有信心我們擁有適合該市場的產品和服務。因此，如果市場動態發生變化，我希望它們會像影響我們一樣影響其他人。

Got it. Got it. Well, very comprehensive double-click, very helpful. And then for my follow-up, actually, I wanted to ask on the kind of HR management side of things. On a competitive landscape, I was curious if you can provide your thoughts on any competitive pressure you're seeing from the trend of embedding payroll into software solutions? So we're seeing, obviously, a lot of the payments providers, software providers looking to expand their offerings with other business modules, if you will, and payroll as always at the top of the list. They talk a lot about that. I was curious from you guys side, how successful do you think those efforts are? And are you seeing any competitive pressure?

知道了。知道了。不錯，很全面的雙擊，很有幫助。然後對於我的後續行動，實際上，我想問的是人力資源管理方面的問題。在競爭格局中，我很好奇您是否可以就將工資單嵌入軟件解決方案的趨勢中看到的任何競爭壓力發表您的看法？因此，很明顯，我們看到很多支付提供商、軟件提供商希望通過其他業務模塊擴展他們的產品，如果你願意的話，薪資總是排在首位。他們談論了很多。從你們這邊我很好奇，你們認為這些努力有多成功？您是否看到任何競爭壓力？

I would say that I've not seen a dramatic change in anything and not seeing any type of new entrants that are worrisome in terms of what I think about our growth. I think -- probably the other point I would make is that one of the things I think we will -- it will be interesting to see as we go into the selling season is some of the upstart competitors, who don't need to necessarily make money, whether or not they'll still be able to approach the market and marketing spend, et cetera, in the same way they have in the past. So we've already seen, I think, some of that dialing back. So not that I'm seeing in any of the data that I see that I'm seeing them having an impact.

我要說的是，我沒有看到任何顯著變化，也沒有看到任何類型的新進入者在我對我們的增長的看法方面令人擔憂。我想——我想說的另一點可能是，我認為我們會做的一件事——當我們進入銷售季節時，看到一些新貴的競爭對手會很有趣，他們不一定需要賺錢，無論他們是否仍然能夠像過去一樣處理市場和營銷支出等。所以我認為，我們已經看到了一些回撥。所以並不是說我在我看到的任何數據中看到我看到它們產生影響。

And Eugene, I'd go back probably 3, 4 years ago and one of the fintech providers embedded payroll and our stock traded down, I don't know, like 3% in the day, and I was getting calls about why and said that, such and such as an embedded solution on payroll. I think -- look, the surest way to stumble is to act arrogant, and we're not arrogant about those folks we've looked at, by the way, some of the people that you cover and think there's an opportunity in the market for those solutions. They're just not a dramatic impact.

尤金，我可能會回到 3、4 年前，其中一家金融科技提供商嵌入了工資單，我們的股票交易價格下跌，我不知道，當天下跌 3%，我接到電話詢問原因並說那個，例如工資單的嵌入式解決方案。我認為 - 看，最可靠的絆腳石就是表現得傲慢自大，順便說一句，我們對那些我們看過的人並不傲慢，你所報導的一些人認為市場上有機會對於那些解決方案。它們只是沒有產生戲劇性的影響。

We've never seen a dramatic impact on us because the other thing you need to think about -- the other thing to consider there, too, is depending on what part of the market you're addressing there -- especially in the low end, there's a benefit to having some level of service attached to payroll, not obviously in the enterprise space or in the upper mid -- upper end of the market. And that ability for simple payroll, we've got that pretty much covered with our payroll.

我們從來沒有看到對我們產生巨大影響，因為你需要考慮的另一件事 - 那裡要考慮的另一件事取決於你在那裡解決的市場部分 - 特別是在低端，將某種級別的服務附加到工資單上是有好處的，這在企業空間或中上端市場中並不明顯。以及簡單工資單的能力，我們的工資單幾乎涵蓋了這一點。

We'll take our next question from Peter Christiansen with Citi.

我們將從花旗銀行的彼得·克里斯蒂安森那裡回答下一個問題。

Welcome, John, and happy holidays to all. And front, I want to ask a question, but you called out working capital as a benefit this quarter. Wondering if that's indicative of changing activity with some of your staffing clients? And if that's a (inaudible) perhaps what's going on more macro-wise? And then I just had a quick follow-up.

歡迎，約翰，祝大家節日快樂。前面，我想問一個問題，但是您在本季度將營運資金稱為收益。想知道這是否表明您的一些員工客戶的活動發生了變化？如果那是（聽不清），那麼從更宏觀的角度來看，可能發生了什麼？然後我進行了快速跟進。

Well, great question, Pete. So the short answer to that is if you look at the first -- at the comparable period last year, the staffing business really rebounded significantly. And so we had a net use of working capital as the receivable balances grew. The staffing business continues to be pretty strong, staffing funding business, just so everyone call knows that's our Advance Partners business. But we're not -- we don't have the growth in receivables that we had last year.

嗯，問得好，皮特。所以對此的簡短回答是，如果你先看一下——在去年同期，人員配備業務確實出現了顯著反彈。因此，隨著應收賬款餘額的增長，我們的營運資金出現了淨使用。人員配備業務仍然非常強勁，人員配備資金業務，所以每個人都知道這是我們的 Advance Partners 業務。但我們不是——我們沒有去年那樣的應收賬款增長。

So as a consequence from an unmet change in working capital perspective. We didn't have that use of funds. So that's really what's driving it. And just a quick advertorial on the staffing funding business. It's doing well and we're continuing to see growth in that part of both our business and the market as a whole.

因此，由於營運資本方面未滿足的變化。我們沒有那樣使用資金。所以這才是真正的驅動力。以及關於人員配備資金業務的快速廣告。它做得很好，我們繼續看到我們業務和整個市場的這一部分都在增長。

That's helpful. And then I just want to follow -- dig a little bit deeper into the last question, particularly dealing directly with merchants on the merchant side. How are you -- are you guys pleased or wondering if you just qualify how things are going with channel sales? And I know you have a relationship with Clover, and I think you have some other channel distribution partners. Just if you could talk about the sales efficiency that you're seeing there? That would be helpful.

這很有幫助。然後我只想跟進——更深入地探討最後一個問題，特別是在商家方面直接與商家打交道。你們好嗎——你們高興還是想知道你們是否只是限定渠道銷售的進展情況？而且我知道您與 Clover 有關係，而且我認為您還有其他一些渠道分銷合作夥伴。能否談談您在那裡看到的銷售效率？那會很有幫助。

Yes. I would say in our business development, we're continuing to add additional channels. It's still, I'd say, a small portion still when you look at where we're getting our clients is from our CPA partners, it's from our existing clients referring us. It's from digital marketing. And then we have a cadre of business development, we continue to add to them. So we continue to do that. I'd say I'm pleased, but I'm not saying that I see anything again, it goes back to my prior comments. I've not seen a major shift which says, "Oh, my goodness, this is a big emerging trend or emerging threat." They're incremental, they're helpful. There's obviously a segment of the market that looks for that type of integrated solution and as Efrain said, as their needs get more complex, what we tend to find is they migrate into one of our HCM solutions and are getting into our HR products.

是的。我會說在我們的業務發展中，我們將繼續增加額外的渠道。它仍然是，我想說，當你看看我們從我們的註冊會計師合作夥伴那裡獲得客戶的地方時，還有一小部分來自我們現有的客戶推薦我們。它來自數字營銷。然後我們有業務發展的骨幹，我們會繼續增加他們。所以我們繼續這樣做。我會說我很高興，但我並不是說我又看到了什麼，這可以追溯到我之前的評論。我還沒有看到一個重大轉變說，“哦，天哪，這是一個新出現的大趨勢或新出現的威脅。”它們是漸進的，它們很有幫助。顯然有一部分市場正在尋找這種類型的集成解決方案，正如 Efrain 所說，隨著他們的需求變得越來越複雜，我們傾向於發現他們遷移到我們的 HCM 解決方案之一，並正在進入我們的 HR 產品。

I know -- I don't know if that makes sense. If it's simple, if you're looking for something very simple and the integrated is important, the minute you have one of these modules that sort of add-on and then you get into complexity. That's where the service model kind of breaks down and you kind of see this unbundling start to occur. So there's a portion of the market that I think it makes sense for. We're continuing to look at that. But again, when we look up at particularly our HR businesses and where we're seeing the need for our digital offerings, not so much. I think it's less important to those clients.

我知道——我不知道這是否有意義。如果它很簡單，如果你正在尋找非常簡單的東西並且集成很重要，那麼當你擁有這些模塊之一的那一刻，你就會變得複雜起來。這就是服務模型崩潰的地方，你會看到這種分拆開始發生。所以我認為有一部分市場是有意義的。我們將繼續關注這一點。但同樣，當我們特別關注我們的人力資源業務以及我們看到對數字產品的需求時，並沒有那麼多。我認為這對那些客戶來說不那麼重要。

We'll take our next question from James Faucette of Morgan Stanley.

我們將從摩根士丹利的 James Faucette 那裡回答下一個問題。

Great. And just a couple of follow-up questions for me. First on margins. It seems like we're pretty near peak levels right now. How should we think about the durability of these margin levels going forward? And particularly, a question we get a lot is if we were to see a recession, and revenue growth were to be impacted, what -- how should we anticipate that would impact margins? And what levers do you have to get us to the higher end of your margin outlook versus perhaps come back to the lower end?

偉大的。還有幾個後續問題要問我。首先是利潤率。看起來我們現在已經非常接近峰值水平了。我們應該如何考慮未來這些保證金水平的持久性？特別是，我們經常遇到的一個問題是，如果我們看到經濟衰退，收入增長會受到影響，我們應該如何預測這會影響利潤率？你有什麼槓桿可以讓我們達到你的利潤率前景的高端而不是回到低端？

Yes. Let me get to 2 ways and then I'll put it over to John. Look, I think, James, and we get the question on I think it's part of the transformation that the company has gone through over the last year, last, I would say, 5 years, in particular, especially post I'd remind everyone of the investments that we made post tax reform and that we delivered on. Our intent was to accelerate the transformation to look much more like a technology company than what we had been before, which was certainly a perfectly well-functioning tech services business, but more technology.

是的。讓我介紹兩種方法，然後我會把它交給約翰。看，我想，James，我們得到了這個問題，我認為這是公司在過去一年中經歷的轉型的一部分，我想說，尤其是 5 年，尤其是在我提醒大家之後我們在稅改後進行的投資以及我們交付的投資。我們的目的是加速轉型，使其看起來比以前更像一家科技公司，這當然是一家運作良好的科技服務企業，但更多的是技術。

So you hear a lot of what we say, but don't, I think, see the background of it as much. We deploy a lot of technology in the background. And I say this in many of the calls where today's tech service is tomorrow's technology delivered by a set of technology tools on the back end. And we feel really passionate about the ability to deliver service, but service delivered through state-of-the-art technology.

所以你聽到了很多我們說的話，但我認為，不要那麼多地看到它的背景。我們在後台部署了很多技術。我在許多電話中都說過，今天的技術服務是明天的技術，由後端的一組技術工具提供。我們對提供服務的能力充滿熱情，但服務是通過最先進的技術提供的。

What's the point of all of that? The point of all of that is that if you can do that and if you can do it successfully, then you get margin expansion of the type that we have been driving. We think there's still a long road to go in terms of our ability to fully optimize and digitize everything that we're doing. And as a consequence, we challenge ourselves every year to look at a range of potential investments that can drive margin improvement balanced by investments that also drive revenue growth. So we're trying to play those off.

這一切的意義何在？所有這一切的要點是，如果你能做到這一點，並且如果你能成功地做到這一點，那麼你就會得到我們一直在推動的利潤率擴張。我們認為，要完全優化和數字化我們正在做的一切，我們還有很長的路要走。因此，我們每年都會挑戰自己，研究一系列可以推動利潤率提高的潛在投資，這些投資與也推動收入增長的投資相平衡。所以我們正在努力解決這些問題。

And the short answer is, yes, I think if you were -- 5 years ago, if you said we'd hit 40%, and then we'd be talking about the potential to expand beyond 40%, look, I wouldn't have known that with precision that we were going to be there, but that's exactly where we're at. There may come a day where we say, "Hey, look, I don't think for the growth of the business, the level of investment we need to make in the business, we can really continue to leverage." But we're not at that point at this stage.

簡短的回答是，是的，我想如果你 - 5 年前，如果你說我們會達到 40%，然後我們會談論擴大超過 40% 的潛力，看，我不會'我們並不知道我們會在那裡，但這正是我們所處的位置。可能有一天我們會說，“嘿，看，我不認為為了業務的增長，我們需要在業務中進行的投資水平，我們真的可以繼續利用。”但我們現階段還沒有到那個程度。

I'll turn it over to John for comments.

我會把它交給 John 徵求意見。

Yes. I think you covered -- I mean I've said from the start, we are known as the best operators in the business, and that's something I'm very proud of to have been part of. And it's in our DNA, and we're going to continue to do that. And I do think we have some macro opportunities, and that is the digital adoption that's happening in the marketplace is a benefit. Employees and employers don't want to talk to us anymore. They want to get on our 5-star app, and they want to be able to do it themselves whenever they want to do it. That adoption helps them and it helps us. It provides a better client experience. We're investing in that, looking for ways to drive efficiency there.

是的。我想你涵蓋了 - 我的意思是我從一開始就說過，我們被稱為業內最好的運營商，這是我為參與其中而感到非常自豪的事情。它存在於我們的 DNA 中，我們將繼續這樣做。我確實認為我們有一些宏觀機會，那就是市場上正在發生的數字採用是一種好處。僱員和雇主不想再與我們交談。他們想要使用我們的 5 星應用程序，並且他們希望能夠隨時隨地自己做。這種收養對他們有幫助，對我們也有幫助。它提供了更好的客戶體驗。我們正在這方面進行投資，尋找提高效率的方法。

So that macro adoption and then what we're doing in digitizing our back office is another opportunity at different points, but I think we're still -- we still have runway on and we're still continuing to invest in and push in and continue to move on. So I think there's plenty of opportunity for us to continue to look for ways to not only provide digital solutions to our clients, but also continue to digitize what we're doing in the back office. And that's an (inaudible) of the business. I mean you look at our digital sales, unbelievable growth in that mode of selling over the last decade and over the last 5 years as we've invested in that.

因此，宏觀採用以及我們在後台數字化方面所做的工作是不同點的另一個機會，但我認為我們仍然 - 我們仍然有跑道，我們仍在繼續投資並推動和繼續前進。所以我認為我們有很多機會繼續尋找方法，不僅為我們的客戶提供數字解決方案，而且繼續數字化我們在後台所做的事情。這是一項（聽不清）業務。我的意思是你看看我們的數字銷售，在過去十年和過去 5 年中，隨著我們對其進行投資，這種銷售模式取得了令人難以置信的增長。

We've launched a digital onboarding capability that will be fully operational for the low end of our market across the business starting in January. So looking forward to that test and learn. And we have several other test and learn investments coming out of our November strategy session that are all built around driving additional growth and driving further digital adoption across the business.

我們已經推出了一種數字入職能力，該能力將從 1 月份開始在整個業務的低端市場全面投入使用。所以期待那個測試和學習。我們還有其他幾項測試和學習投資來自我們 11 月的戰略會議，這些投資都是圍繞推動額外增長和推動整個企業進一步採用數字技術而建立的。

That's helpful. And I guess a related question. I mean, it sounds like you guys are going into the selling season well staffed, and I know that has been a point of concern earlier. But I'm just on that topic and more broadly of service levels, I guess, are you seeing that as an indicator of just a little bit of a change in the hiring market generally?

這很有幫助。我猜是一個相關的問題。我的意思是，聽起來你們正在進入銷售旺季，人員配備充足，我知道這在早些時候一直是一個關注點。但我只是在談論那個話題，更廣泛地說是服務水平，我想，你是否認為這是招聘市場總體上發生一點點變化的指標？

And then on -- and as we dig into the efficiencies are the technology investments, et cetera, allowing you to increase the typical client count for an existing account manager? And how has that been trending? Just wondering about kind of the hiring environment for your own needs as well as points of efficiency that you're realizing right now?

然後 - 當我們深入研究效率時，技術投資等是否可以讓您增加現有客戶經理的典型客戶數量？趨勢如何？只是想知道滿足您自己需求的招聘環境類型以及您現在意識到的效率點？

Yes. I would say the hiring environment for us. I think like most people reporting has stabilized, much different than it was probably a year ago. When we were sitting here a year ago, we were not fully staffed to where we would like to be entering the selling season and the year-end season. And we sit here today, fully staffed, fully trained and prepared to execute going into that. So it's a much different hiring environment for us as well. And we are continuing to drive productivity as well.

是的。我會說我們的招聘環境。我認為像大多數人一樣，報告已經穩定下來，與一年前可能有很大不同。一年前，當我們坐在這裡時，我們還沒有配備足夠的人員來進入銷售旺季和年終旺季。我們今天坐在這裡，人員配備齊全，訓練有素，並準備好執行這項工作。因此，這對我們來說也是一個截然不同的招聘環境。我們也在繼續提高生產力。

We'll take our next question from Mark Marcon with Baird.

我們將與 Baird 一起接受 Mark Marcon 的下一個問題。

Happy holidays, John and Efrain. I just want to save you a little -- Efrain, I've got a little gift for you, just to save you some time on all your callbacks, because I'm getting this question a lot online. Can you just break out the PEO and insurance services that $273.3 million? Can you break it out between the agency component versus the PEO component?

節日快樂，John 和 Efrain。我只是想為您節省一點——Efrain，我給您準備了一份小禮物，只是為了節省您所有回電的時間，因為我在網上經常收到這個問題。你能把 2.733 億美元的 PEO 和保險服務分開嗎？您能否在代理組件與 PEO 組件之間進行區分？

And then to break down what you ended up seeing in terms of the year-over-year change within those? And this is more than double clicking, but it will save you a lot of time. Just how much of an impact there was with regards to the change in terms of the uptake of the health insurance and the property and casually, the workers' comp?

然後根據其中的同比變化分解您最終看到的內容？而這不僅僅是雙擊，而是會為您節省很多時間。對健康保險和財產以及工人補償的接受方面的變化有多大影響？

Yes. So Mark, I would point all of the good investors, who are asking you those solid questions to a chart that we included at the beginning of this fiscal year/end of last fiscal year, which broke out PEO and insurance by percentages. So if you go there and look at that, you'll see the exact percentages and the percentages as of the end of the year really didn't change significantly in the first half of the year. So that's the first part.

是的。所以馬克，我會向所有向你提出這些可靠問題的優秀投資者指出我們在本財年開始/上一財年末包含的圖表，該圖表按百分比分解了 PEO 和保險。所以如果你去那裡看看，你會看到確切的百分比和截至今年年底的百分比在上半年確實沒有顯著變化。這是第一部分。

The second part is roughly half and half is H&B and half -- I'm sorry, roughly half of the insurance revenue is H&B and the other half is P&C, as John said, but that's largely workers' comp insurance. And so I will only describe it qualitatively, which is to say that we're still seeing growth low single digits on -- I'm sorry, we're still seeing growth in H&B and on P&C. P&C itself workers' comp in the quarter was flat to down. So the impact of a really soft insurance market, which was different than it was 3, 4 years ago is weighing on that.

第二部分大約一半是 H&B，一半——對不起，大約一半的保險收入是 H&B，另一半是 P&C，正如約翰所說，但這主要是工人的補償保險。所以我只會定性地描述它，也就是說我們仍然看到低個位數的增長——對不起，我們仍然看到 H&B 和 P&C 的增長。本季度 P&C 本身的工人薪酬持平或下降。因此，與 3、4 年前不同的真正疲軟的保險市場的影響正在影響這一點。

So in summary, that word, I'd say look at the end of the quarter -- end of the last fiscal year, I got a breakout on Management Solutions and also one PEO and insurance, it's there. You'll see what it is. And then you can say that in the insurance, roughly, it's half workers' comp and half H&B. We still see growth in H&B, and to John's point, that should grow as smaller clients become more constructive on buying insurance. Workers' comp is the one that's exerting a drag on that entire segment.

所以總而言之，那個詞，我想說看看本季度末——上個財政年度末，我在管理解決方案以及一個 PEO 和保險方面取得了突破，就在那裡。你會看到它是什麼。然後你可以說在保險中，粗略地說，它是一半的工人補償和一半的 H&B。我們仍然看到 H&B 的增長，就約翰的觀點而言，隨著小客戶對購買保險變得更有建設性，這種增長應該會增長。工人薪酬對整個細分市場造成了拖累。

Got it. And if we strip out the insurance component, is the PEO business ex the insurance component still growing high single digits, low double digits?

知道了。如果我們剔除保險部分，除保險部分外的 PEO 業務是否仍在增長高個位數，低兩位數？

I won't split it out that way, because it's a little bit tough with the value proposition, Mark. What I'd point to is what I said earlier in the call that we're getting good worksite employee growth, and that's kind of where we're focusing it. It's hard to strip it out that way because then you'd have to do a deep dive on what's happening in Florida versus other parts of the market. But when you look across the markets that we serve and look at worksite employee growth with -- and certainly in most of the major markets, we're seeing good worksite employee growth.

我不會那樣拆分它，因為它對價值主張有點困難，馬克。我要指出的是我早些時候在電話中所說的，我們正在獲得良好的工作場所員工增長，這就是我們關注的地方。很難以這種方式剝離它，因為那樣你就必須深入了解佛羅里達州與市場其他地區正在發生的事情。但是，當你審視我們服務的市場並審視工作場所員工的增長時 - 當然在大多數主要市場中，我們看到良好的工作場所員工增長。

And what was -- I'm sorry, I'm sure you mentioned it before, it's in one of the releases, but what was the worksite employee growth?

什麼是 - 對不起，我確定你之前提到過，它在其中一個版本中，但是工作場所員工的增長情況如何？

We did not say that. And good try, though, Mark. We didn't say it. We'll report on it at the end of the year. What we did say and what John said is that we've had significant worksite employee growth, both in the ASO and PEO model, and we surpassed 2 million to 1 million employees. Remember, Mark, one other thing for everyone. We don't force a client into either the PEO or ASO, we're unlike a lot of other providers. So we say to a client, you can have either depending on what you value in the bundle. And so what we're seeing across both of those solutions is strong demand.

我們沒有那樣說。不過，好的嘗試，馬克。我們沒有說。我們將在年底報告它。我們和 John 所說的是，無論是在 ASO 還是 PEO 模型中，我們的工作場所員工人數都有顯著增長，我們的員工人數超過了 200 萬到 100 萬。記住，馬克，每個人都有另一件事。我們不會強迫客戶加入 PEO 或 ASO，我們與許多其他提供商不同。因此，我們對客戶說，您可以根據自己對捆綁包的重視程度來選擇其中一種。因此，我們在這兩種解決方案中看到的是強勁的需求。

Great. And then on managed solutions, obviously, solid and better than expected, better than what we've modeled and better than what you've guided. But one question that I got from some investors is basically why did Management Solutions slow in Q2 relative to 1Q?

偉大的。然後在託管解決方案上，顯然，比預期的更可靠、更好，比我們建模的更好，也比你指導的更好。但我從一些投資者那裡得到的一個問題基本上是為什麼管理解決方案在第二季度相對於第一季度放緩？

Okay. That was a good question. I answered that one after first quarter. But the short answer to the question, Mark, I'd say, bucket it 3 ways. And the first thing is that significant growth in pace per control or checks per payroll in the quarter versus the prior quarter. That was one. The second part was that ERTC was a significant contributor in the quarter. It wasn't as great a contributor in the second quarter. In other words, it wasn't as large incremental growth. And then third was everything else, which was positive.

好的。這是個好問題。我在第一季度後回答了那個問題。但這個問題的簡短答案，馬克，我想說，用三種方式來解決這個問題。第一件事是，與上一季度相比，本季度每個控製或每個工資單的檢查速度顯著增長。那是一個。第二部分是 ERTC 在本季度做出了重要貢獻。它在第二季度的貢獻並不大。換句話說，它沒有那麼大的增量增長。然後第三是其他一切，這是積極的。

Got it. Great. And then, John, you mentioned the really cool innovative tools during the last quarterly discussion, particularly the voice activated solution. I'm wondering if you can give us a sense for like for your most innovative tools, what sort of uptake are you currently seeing?

知道了。偉大的。然後，約翰，你在上個季度的討論中提到了非常酷的創新工具，特別是語音激活解決方案。我想知道您是否可以讓我們了解您對您最具創新性的工具的喜歡程度，您目前看到了什麼樣的接受度？

Well, I mentioned one where clients are having the issues, which is really on the hiring and onboarding is one. So if you look at that when we last reported, I mentioned that we had launched that product in beta and then announced it. At that point, we had 1.1 million -- I think 1.8 million, maybe employees that had actually been hired through that process. As I sit here today, we're -- we will approach 3 million people hired to that platform. So give you some idea of the use of that, how frequently that's being used, and that's very popular. The Retention Insights is another one that we've had very good uptake and utilization of and the impact, quite frankly, so getting good reviews there.

好吧，我提到了一個客戶遇到問題的地方，這實際上是在招聘和入職方面。所以如果你看一下我們上次報導的內容，我提到我們已經推出了該產品的測試版，然後宣布了它。那時，我們有 110 萬——我想有 180 萬，也許是通過該流程實際僱用的員工。當我今天坐在這裡時，我們 - 我們將接近 300 萬受僱於該平台的人。所以讓你了解一下它的用途，它的使用頻率，它非常受歡迎。 Retention Insights 是另一個我們已經很好地接受和利用並產生影響的工具，坦率地說，因此在那裡獲得了好評。

Yes. I was talking about the Google...

是的。我說的是谷歌...

(inaudible) right 401(k), the time and attendance, all of those other online traditional products doing well as well.

（聽不清）正確的 401(k)，時間和出勤，所有其他在線傳統產品也表現良好。

Yes. I was referring to the Google voice activated solution.

是的。我指的是谷歌語音激活解決方案。

Yes, yes. So we launched that. It's -- we're just starting to launch that, and we're watching to see how customers adapt to it and utilize it.

是的是的。所以我們推出了它。它是 - 我們剛剛開始推出它，我們正在觀察客戶如何適應它並利用它。

Our last question will come from Tien-Tsin Huang with JPMorgan.

我們的最後一個問題將來自摩根大通的 Tien-Tsin Huang。

I just wanted to ask on the retention side. I know it's Record Retention has been doing really well. And I've been getting a lot of questions around SMB and retention, bankruptcy risk here going into possible recession? I know Efrain, you've shared this before. But can we revisit what it did in past down cycles. And I would imagine that you would do probably a little bit better. I think you always do a little better than people here, but I would think you would do better here given the shifts in the platform, the investments in tech. So -- but I just want to revisit that before we close out the year.

我只想問保留方面的問題。我知道它的 Record Retention 一直做得很好。我收到了很多關於 SMB 和保留的問題，這裡的破產風險是否會進入可能的衰退？我知道 Efrain，你以前分享過這個。但我們能否重新審視它在過去的下行週期中所做的事情。我想你可能會做得更好一點。我認為你總是比這裡的人做得好一點，但我認為考慮到平台的轉變和對技術的投資，你在這裡會做得更好。所以 - 但我只想在我們結束這一年之前重新討論一下。

Yes. Yes. So I mean if you go back to '07, '08, '09, where the business was erupted, you would know this was roughly about 80% payroll and 20% HRS (inaudible) trough, I guess, depending on which side you're looking at, at about 77% retention on a unit basis. I don't know what the revenue retention was back then. But we were down to about 23% attrition. Now there were a lot of reasons why that's certainly a lower, lower, lower band, but not to mention the fact, Tien-Tsin, as everyone on the call knows that right now, if we just isolate pure what we would call payroll, that's less than half of what we sell. So the rest of the stuff when you attach in our model creates and generates better retention. So now you put yourself in a completely different position even in PEO.

是的。是的。所以我的意思是，如果你回到 07 年、08 年、09 年，業務爆發的時候，你會知道這大約是 80% 的工資和 20% 的 HRS（聽不清）低谷，我想，這取決於你是哪一方正在查看，單位保留率約為 77%。我不知道當時的收入保留是多少。但是我們的人員流失率下降到了大約 23%。現在有很多原因可以解釋為什麼這肯定是一個更低、更低、更低的區間，但更不用說這個事實了，Tien-Tsin，正如電話中的每個人現在都知道的那樣，如果我們只是孤立我們所謂的工資單，這還不到我們銷售量的一半。因此，當您附加到我們的模型中時，其餘的東西會創造並產生更好的保留。所以現在你把自己放在一個完全不同的位置，即使是在 PEO 中。

So I think the factors there dictate that you're going to have a very different outcome than you would have back in '07, '08, '09. One other point that I would add to that. I mentioned in the -- during my comments that we did see -- we are seeing more elevated churn in the micro segment than perhaps a year ago. There's a mix element to that, that's not -- if you want to understand and call me, it's not worth going into here. But from the -- and we anticipated that, by the way. But from a revenue retention standpoint, we still are very, very solid. And those are the clients that you're less likely to see churn in a downturn. So that's my long-winded answer to your question.

所以我認為那裡的因素決定了你將得到與 07 年、08 年、09 年截然不同的結果。我還要補充一點。我在評論中提到——在我們確實看到的評論中——我們看到微型細分市場的流失率可能比一年前更高。有一個混合元素，那不是——如果你想了解並打電話給我，就不值得進入這裡。但順便說一下，我們預料到了這一點。但從收入保留的角度來看，我們仍然非常非常穩固。這些是您不太可能在經濟低迷時期看到客戶流失的客戶。這就是我對你的問題的冗長回答。

And my quick follow-up. I know there's a lot of margin questions here. The overperformance in the first half, any priorities or what would you attribute or rank the big contributors to the margin overperforming here so far?

我的快速跟進。我知道這裡有很多保證金問題。上半年的超常表現，有什麼優先事項，或者你認為到目前為止對利潤率超常表現的主要貢獻者有什麼歸因或排名？

Yes. Tien-Tsin, I hate to use kind of a very generic answer to the question, but it is the very generic answer to the question. We had an expense plan and would beat it. So there was some mix effect. I mean, I don't want to say that Management Solutions over performing the way it didn't impact. It did. So I think that's part of it. But also expenses were better in the first half.

是的。 Tien-Tsin，我不喜歡對問題使用非常籠統的答案，但這是對問題的非常籠統的答案。我們有一個費用計劃並且會擊敗它。所以有一些混合效果。我的意思是，我不想說 Management Solutions 以它沒有影響的方式過度執行。它做了。所以我認為這是其中的一部分。但上半年的支出也有所好轉。

Got it. No, look, I like the simple answer. So I appreciate that. Have a best holidays.

知道了。不，看，我喜歡簡單的答案。所以我很感激。有一個最好的假期。

And we have no further questions at this time. I'll turn it back to Mr. John Gibson for any additional or closing remarks.

我們現在沒有其他問題了。我會把它轉回給 John Gibson 先生，徵求任何補充意見或結束意見。

Thank you, [Todd]. Well, at this point, we'll close the call. I would like to thank you for your support during my first call as President and CEO. I look forward to getting to know each and every one of you better in the future. We've got a chance to talk to some of you. I'm sure we'll get a chance to talk to more. If you're interested in a replay of the webcast of this conference call, it will be archived for approximately 90 days.

謝謝你，[托德]。好吧，在這一點上，我們將結束通話。我要感謝你們在我作為總裁兼首席執行官的第一次電話會議上給予的支持。我期待著在未來更好地了解你們每一個人。我們有機會與你們中的一些人交談。我相信我們會有機會與更多人交談。如果您對本次電話會議的網絡廣播重播感興趣，它將被存檔大約 90 天。

Again, I want to thank you for your support of Paychex. I hope all of you and your families have a happy holiday and happy new year.

再次感謝您對 Paychex 的支持。希望大家和家人節日快樂，新年快樂。

Thank you. This concludes today's call. We appreciate your patience. You may disconnect at any time.

謝謝你。今天的電話會議到此結束。感謝您的耐心等待。您可以隨時斷開連接。