沛齊 (PAYX) 2025 Q1 法說會逐字稿

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(Operator Instructions) Good morning and welcome to the first quarter 2025 Paychex Earnings Conference Call. Participating on the call today are John Gibson and Bob Schrader. (Operator Instructions)

（操作員說明）早上好，歡迎來到 Paychex 2025 年第一季財報電話會議。 約翰·吉布森 (John Gibson) 和鮑勃·施拉德 (Bob Schrader) 參加了今天的電話會議。 （操作員說明）

As a reminder, this conference is being recorded and your participation implies consent to our recording of this call. If you don't agree with these terms, please disconnect at this time. I would now like to turn the call over to Bob Swan, our Chief Financial Officer. Please go ahead.

謹此提醒，本次會議正在錄音，您的參與即表示您同意我們對本次通話進行錄音。 如果您不同意這些條款，請此時斷開連線。 我現在想將電話轉給我們的財務長鮑勃·斯旺 (Bob Swan)。 請繼續。

Thank you for joining us for our review of Paychex First Quarter 2025 financial results. Joining me today is our CEO, John Gibson. This morning. Before the market opened, we released our financial results for the first quarter ended August 31, 2024. You can access our earnings release and investor presentation on the SEC website as well as on our Investor Relations website. Form 10 Q will be filed with the SEC in the next few days.

感謝您與我們一起回顧 Paychex 2025 年第一季的財務表現。 今天加入我的是我們的執行長約翰·吉布森 (John Gibson)。 今晨。 在開盤前，我們發布了截至 2024 年 8 月 31 日的第一季財務業績。 表格 10 Q 將在未來幾天內向 SEC 提交。

This teleconference is being broadcast over the Internet and will be archived and available on our website for approximately 90 days. Today's call will contain forward-looking statements that refer to future events and involve some risks. We encourage you to review our filings with the SEC for additional information on factors that could cause actual results to differ from our current expectations.

本次電話會議將透過網路進行廣播，並將在我們的網站上存檔並提供約 90 天的時間。 今天的電話會議將包含涉及未來事件並涉及一些風險的前瞻性陳述。 我們鼓勵您查看我們向 SEC 提交的文件，以獲取有關可能導致實際結果與我們當前預期不同的因素的更多資​​訊。

During our call, we will also reference some non-GAAP financial measures. A description of these items, along with our reconciliation of non-GAAP measures can be found in our earnings release.

在我們的電話會議中，我們也會參考一些非公認會計準則財務指標。 這些項目的描述以及我們對非公認會計原則措施的調節可以在我們的收益發布中找到。

I will now turn the call over to our CEO, John Gibson.

現在我將把電話轉給我們的執行長約翰·吉布森 (John Gibson)。

Thank you, Bob, and good morning, everyone. I'm going to start today's call with an update on business highlights for the first quarter and then turn it back over to Bob for a financial update. And then, of course, we will open it up for your questions.

謝謝你，鮑勃，大家早安。 我將在今天的電話會議中介紹第一季業務亮點的最新情況，然後將其轉交給鮑勃以獲取最新的財務資訊。 然後，當然，我們將開放它來回答您的問題。

As we enter the post-pandemic era of Paychex, we are off to a good start in fiscal year 2025, with total revenue growth exceeding expectations during the first quarter. Excluding the impact of not only of the non-route reoccurring benefits from the RTC. program and having one less processing day in the quarter, revenue growth was 7% as the best operators in the business. We also delivered earnings per share growth despite these headwinds through strong expense discipline, small and midsize businesses remain resilient as the U.S. labor market gradually returns to its pre-pandemic level.

隨著 Paychex 進入後疫情時代，我們在 2025 財年有了一個良好的開端，第一季總營收成長超出預期。 不僅排除RTC帶來的非航線重複收益的影響。計劃以及本季少一個處理日，收入增長 7%，成為業內最佳運營商。 儘管存在這些阻力，但透過嚴格的支出紀律，我們也實現了每股盈餘成長，隨著美國勞動力市場逐漸恢復到疫情前的水平，中小型企業仍然保持彈性。

While growth in hiring has moderated. Hiring within our client base during the first quarter was positive and better than expected across our HCM and HR outsourcing businesses. We continue to make investments and transition our go-to-market capabilities and product suite to meet the post-pandemic market and drive continuous innovation in our technology.

雖然招聘成長放緩。 第一季我們的 HCM 和人力資源外包業務的客戶群招募情況積極，好於預期。 我們繼續進行投資並轉變我們的上市能力和產品套件，以滿足大流行後的市場並推動我們技術的持續創新。

In advisory solutions. We are excited to launch several new products that are specifically designed to address the constant challenge for small and midsize businesses, and that's simply a finding and retaining qualified employees are Paychex Flex Engage offering, combined with Paychex Flex perks, which was named a top HR Product of the Year by HR, Resource Executive Magazine and the recently announced Paychex recruiting.

在諮詢解決方案中。 我們很高興推出幾款專為應對中小型企業不斷面臨的挑戰而設計的新產品，這只是透過 Paychex Flex Engage 服務尋找並留住合格員工，並結合 Paychex Flex 福利（被評為頂級 HR）被HR 、Resource Executive Magazine 和最近宣布的Paychex 招聘評選為年度產品。

Copilot are digitally and a high driven solutions designed to help our clients see and win the war for talent in a very challenging labor market. These are examples how we are constantly looking for ways to bring enterprise solutions for the SMB market to really level the playing field. Flexing gauge is a comprehensive digital solution with generators, AI capabilities to help businesses manage their workflows from a communication within the organization and increased collaboration between employees, many of whom are remote since its launch.

Copilot 是一種數位化、高度驅動的解決方案，旨在幫助我們的客戶在充滿挑戰的勞動力市場中洞察並贏得人才之戰。 這些是我們如何不斷尋找方法為中小企業市場提供企業解決方案以真正創造公平競爭環境的例子。 Flexing gauge 是一種全面的數位解決方案，具有生成器、人工智慧功能，可幫助企業透過組織內部的溝通來管理其工作流程，並增強員工之間的協作，其中許多工作自推出以來一直處於遠端狀態。

We have seen interest from businesses across the spectrum of industries and size groups. Our award winning Paychex perks offering is a digital marketplace that provides employees access to affordable benefits and discounted products and services.

我們看到了各個行業和規模的企業的興趣。 我們屢獲殊榮的 Paychex 福利產品是一個數位市場，為員工提供負擔得起的福利以及折扣產品和服務。

Paychex perks is attractive to employers as it salable at no cost to the employer in the payments are price costless automatically through payroll deductions by the employee. This allows us to establish a long-term customer relationship with our clients employees. Our initial launch includes 17 unique products ranging from voluntary lifestyle benefits to early wage access. We will continue to be opportunistically considering adding other products and services to our marketplace.

Paychex 福利對雇主很有吸引力，因為它可以免費出售給雇主，因為透過員工的薪水扣除，付款會自動無成本。 這使我們能夠與客戶員工建立長期的客戶關係。 我們最初推出的產品包括 17 種獨特的產品，從自願的生活方式福利到提前領取工資。 我們將繼續機會主義地考慮為我們的市場添加其他產品和服務。

This new capability, which we have been investing in for years allows us to engage our clients, employees with a high driven offerings that meet their specific needs in our flex HCM map. It also opens up an exciting new market for us is another example of how we are helping small and midsize businesses compete for talent.

我們多年來一直在投資的這項新功能使我們能夠透過高驅動力的產品吸引我們的客戶和員工，以滿足他們在我們的靈活 HCM 地圖中的特定需求。 它也為我們開闢了一個令人興奮的新市場，這是我們如何幫助中小企業競爭人才的另一個例子。

Again, larger companies recruiting. As we all know, it's a costly and time-consuming process. According to a recent Paychex customer study, 80% of respondents reported that finding qualified candidate is challenging. Last year, we launched a new program in RPO called the employer of choice playbook, which was designed to help our customers find qualified candidates.

再次，大公司正在招募。 眾所周知，這是一個昂貴且耗時的過程。 根據 Paychex 最近的一項客戶研究，80% 的受訪者表示尋找合格的候選人具有挑戰性。 去年，我們在 RPO 中推出了一項名為「雇主選擇手冊」的新計劃，旨在幫助我們的客戶找到合格的候選人。

We are excited to add a new solution to the playbook, not only for the PO., but also all Paychex customers and non Paychex customers with a reach. Recent announcement of an AI. assisted recruiting tool for small in size, business owners and HR professionals called the Paychex recruiting copilot.

我們很高興能夠在手冊中添加新的解決方案，不僅適用於 PO，還適用於所有 Paychex 客戶和有影響力的非 Paychex 客戶。 最近宣布了人工智慧。小型企業主和人力資源專業人士的輔助招募工具，稱為 Paychex 招募副駕駛。

We believe this new solution will revolutionize recruiting and hiring process by enabling Paychex customers to quickly find top 10, Alex, it's still relying solely on traditional recruiting method. Paychex recruiting copilot analyses, millions of potential employees through a natural language search engine to quickly produce an active list of qualified individuals for open positions based upon numerous requirements and other attributes that puts advanced technology that is often only additions along George professional recruiting firms into the hands of small and mid-sized companies so they can more effectively compete for talent.

我們相信這個新的解決方案將徹底改變招募和聘用流程，使 Paychex 客戶能夠快速找到前 10 名，Alex，它仍然完全依賴傳統的招募方法。 Paychex 招募副駕駛分析數以百萬計的潛在員工，透過自然語言搜尋引擎，根據眾多要求和其他屬性，快速生成空缺職位的合格人員的活躍列表，將通常只是喬治專業招聘公司添加的先進技術引入到中小企業手中，這樣他們就可以更有效地爭取人才。

As you know, Paychex has a long history and experience with AI. and we believe generative AI. offers an entirely new set of opportunities. We have a large and growing data set, which we believe provides us with a significant competitive advantage in the years ahead. We have tens of millions of at interactions with our clients and their employees.

如您所知，Paychex 在人工智慧方面擁有悠久的歷史和經驗。我們相信生成式人工智慧。提供了一系列全新的機會。 我們擁有龐大且不斷成長的數據集，我們相信這將為我們在未來幾年提供顯著的競爭優勢。 我們與客戶及其員工有數千萬次互動。

Every month. We have predictive and AI models deployed across the company with a focus on sales and service and the ability to deliver actionable insights based on our vast data set to help our customers succeed. Paychex is uniquely positioned to be a leader in bringing the power of AI to small and mid-sized businesses, the breadth and quality of our solutions of Valassis to solve problems for business owners by leveraging our best in class data set and HR advisory capabilities to help them win in today's economy.

每個月。 我們在整個公司部署了預測和人工智慧模型，重點關注銷售和服務，並能夠根據我們龐大的資料集提供可行的見解，以幫助我們的客戶取得成功。 Paychex 擁有獨特的優勢，能夠成為將人工智慧的力量帶給中小型企業的領導者，我們的 Valassis 解決方案的廣度和品質能夠利用我們一流的數據集和人力資源諮詢能力為企業主解決問題，幫助他們在當今的經濟中獲勝。

We continue to gain recognition for the strength of our HCM technology innovations as well. In addition to winning a top HR Product of the Year for Paychex, for which I would remind everyone in the fourth time at Paychex solution has been named to the top HR product of the year with for the past five years. For the past five years, we also earned an HR Tech award for best small business focus solution in the core HR workforce category for the fifth consecutive year from White House research and advisory business area.

我們的 HCM 技術創新實力也不斷獲得認可。 除了為 Paychex 贏得年度最佳人力資源產品之外，我想提醒大家的是，在過去的五年裡，Paychex 解決方案已第四次被評為年度最佳人力資源產品。 在過去的五年裡，我們也連續第五年獲得白宮研究和諮詢業務領域核心人力資源勞動力類別中最佳小型企業焦點解決方案的人力資源技術獎。

I continue to believe we are not getting our do recognition. Paychex was also recently included in times inaugural list of America's Best midsize companies. Based on the strength of the company's culture, business results and corporate responsibility efforts, paycheck is uniquely well positioned to solve the problems for small and midsize businesses. Based upon our comprehensive suite of HCM solutions, our advisory expertise and the insights gained from our large dataset and constant the interactions with small and midsize businesses. We remain firmly committed to our purpose of helping businesses succeed while also making a positive impact on our clients' employees. Communities and shareholders.

我仍然相信我們沒有得到我們的認可。 Paychex 最近也被列入《時代雜誌》首屆美國最佳中型公司名單。 基於公司文化、業務成果和企業責任努力的優勢，Paycheck 在解決中小企業問題方面具有得天獨厚的優勢。 基於我們全面的 HCM 解決方案套件、我們的諮詢專業知識和從我們的大型數據集以及與中小型企業的持續互動中獲得的見解。 我們仍然堅定地致力於幫助企業取得成功，同時對客戶的員工產生正面影響的目標。 社區和股東。

I will now turn it over to Bob to give you a brief update on our financial results for the first quarter from. Yes.

現在我將把它交給鮑勃，向您簡要介紹我們第一季的財務業績。 是的。

Thank you, John, and good morning, everyone. I'll start with a summary of our fiscal quarter financial results and provide an update on our fiscal 2025 outlook. Total revenue increased 3% to $1.3 billion in the first quarter, which reflects headwinds from the expiration of the ERTC. program and having one less processing day as compared to the prior year period.

謝謝約翰，大家早安。 我將首先總結我們的財務季度財務業績，並提供 2025 財年展望的最新資訊。 第一季總營收成長 3%，達到 13 億美元，反映了 ERTC 到期帶來的不利因素。計劃，並且與上一年相比，處理日減少了一個。

These two items impacted growth by approximately 400 basis points, which is consistent with the expectation we shared with you last quarter. John mentioned, including these headwinds, total revenue in the quarter grew 7%.

這兩項對成長的影響約為 400 個基點，這與我們上季與您分享的預期一致。 John 提到，考慮到這些不利因素，該季度的總收入增加了 7%。

Management solutions revenue increased 1% to 962 million. This was primarily driven by growth in the number of clients served across our suite of HCM solutions and higher client worksite employees and our HR solutions as well as higher price penetration. Those items were partially offset by the ERTC. headwinds that we previously discussed. Peo and Insurance Solutions revenue increased 7% to $319 million, primarily driven by higher average worksite employees and higher PO. insurance revenues. Interest on funds held for clients increased 15% to $38 million.

管理解決方案營收成長 1%，達到 9.62 億美元。 這主要是由於我們的 HCM 解決方案套件所服務的客戶數量的增長、更多的客戶工作場所員工和我們的人力資源解決方案以及更高的價格滲透率所推動的。 這些項目被 ERTC 部分抵消。我們之前討論過的逆風。 Peo 和保險解決方案收入成長 7%，達到 3.19 億美元，主要是由於平均工作場所員工數量和 PO 增加。保險收入。 為客戶持有的資金利息增加了 15%，達到 3,800 萬美元。

That is primarily primarily due to higher average interest rates and higher invested balances. Total expenses for the quarter increased 3% to $772 million, and this is primarily due to higher PEO direct insurance costs related to growth in our average worksite employees within the appeal as well as higher PO. insurance revenues.

這主要是由於較高的平均利率和較高的投資餘額。 本季總費用增加 3%，達到 7.72 億美元，這主要是由於與上訴範圍內我們的平均工作場所員工數量增長相關的 PEO 直接保險成本增加以及 PO 增加。保險收入。

We've also had continued investments in product innovation, AI., our go-to-market strategies. Operating income grew 2% to $547 million with an operating margin of 41.5%. I'd like to remind everyone operating income was also impacted by the expiration of the ERTC. program as well as the one less processing day during the quarter.

我們也持續投資於產品創新、人工智慧以及我們的市場策略。 營業收入成長 2%，達到 5.47 億美元，營業利益率為 41.5%。 我想提醒大家的是，營業收入也受到了 ERTC 到期的影響。計劃以及該季度減少一個處理日。

Diluted earnings per share increased 2% to $1.18 per share, and adjusted diluted earnings per share increased 2% to $1.16 per share in the first quarter. And those items were also impacted by the headwinds that we've previously discussed. Now turning to our financial position, our financial position remains strong. We ended the quarter with cash, restricted cash and total corporate investments of $1.6 billion in borrowings of approximately $818 million.

第一季稀釋每股收益成長 2%，至每股 1.18 美元，調整後稀釋每股盈餘成長 2%，至每股 1.16 美元。 這些項目也受到我們之前討論過的不利因素的影響。 現在轉向我們的財務狀況，我們的財務狀況仍然強勁。 截至本季末，我們的現金、限制性現金和企業投資總額為 16 億美元，借款約 8.18 億美元。

Cash flow from operations was $546 million in the first quarter, driven by net income and changes and working capital influenced by timing. We returned a total of $457 million to shareholders during the quarter. This included 353 million of dividends and $104 million of share repurchases. 12 month.

第一季營運現金流為 5.46 億美元，主要受到淨利潤和變化以及受時間影響的營運資金的推動。 本季我們總共向股東返還 4.57 億美元。 其中包括 3.53 億美元的股息和 1.04 億美元的股票回購。 12個月。

Rolling return on equity remains robust at 46%. Now I'll turn to our guidance for the fiscal year ended May 31, 2025. We have maintained our guidance. I'm pretty much in all of the categories with the exception of updates to our interest rate assumptions for the remainder of the fiscal year.

滾動股本回報率仍保持在 46% 的強勁水平。 現在我將談談我們對截至 2025 年 5 月 31 日的財年的指導。 除了本財年剩餘時間的利率假設更新之外，我幾乎涵蓋了所有類別。

Our outlook now assumes a total of 125 basis points of cuts to the short term right rate on a full-year basis, which directly impacts our interest on funds held for clients. Revenue and other income outlook also assumes a continuation of the current macro environment.

我們現在的展望假設全年短期利率總共下調 125 個基點，這直接影響我們為客戶持有的資金的利息。 收入和其他收入前景也假設當前宏觀環境將持續。

Our current outlook is as follows. Total revenue is still expected to grow in the range of 4% to 5.5%. And now I'd like to remind everyone that does include approximately 200 basis points of headwind from the expiration of the ERTC. program.

我們目前的展望如下。 預計總收入仍將成長4%至5.5%。 現在我想提醒大家，ERTC 到期後確實會帶來約 200 個基點的不利影響。程式.

Management Solutions is still expected to grow in the range of 3% to 4% for the year, no changes to our PP. assurance guidance that is still expected to grow in the range of 7% to 9% to change that we have in guidance are, as I mentioned, are related to interest rates.

預計管理解決方案今年仍將成長 3% 至 4%，我們的 PP 沒有變化。正如我所提到的，我們的保證指導預計仍將在 7% 至 9% 的範圍內增長，以改變我們的指導，這與利率有關。

The first being interest on funds held for clients is expected to be in the range of $145 million to $155 million. That's down from our previous guidance of one 50 to 160 million. Other income net is expected to be income in the range of $30 million to $35 million, and that's down from our previous guidance of $35 million to $40 million. No change to our operating income margin guidance is still expected to be in the range of 42% to 43%. Our effective income tax range is still expected to be in the range of 24% to 25%.

首先是為客戶持有的資金利息預計在 1.45 億至 1.55 億美元之間。 這低於我們之前 50 至 1.6 億的指導值。 其他收入淨值預計為 3,000 萬至 3,500 萬美元，低於我們先前 3,500 萬至 4,000 萬美元的指導值。 我們的營業利潤率指引沒有變化，預計仍將在 42% 至 43% 的範圍內。 我們的有效所得稅範圍預計仍將在24%至25%的範圍內。

And despite the changes to the interest rate that I discussed, our adjusted diluted earnings per share guidance is still expected to grow in the range of 5% to 7% for the year. Turning to the second quarter, provide a little bit of color. We would anticipate total revenue growth in the second quarter to be between 4% to 5%, and this to includes approximately 200 basis points of headwind from the expiration of the ERTC. program than we would also expect operating margin in the quarter to be in this second quarter to be approximately 40%.

儘管我討論過的利率發生了變化，但我們調整後的稀釋每股盈餘指引預計今年仍將成長 5% 至 7%。 轉向第二季度，提供一點色彩。 我們預計第二季的總營收成長將在 4% 至 5% 之間，其中包括 ERTC 到期帶來的約 200 個基點的阻力。我們預計第二季的營業利潤率約為 40%。

Of course, all this is based on our current assumptions, which are subject to change, and we'll update you again when we get to the second quarter call. I will refer you to our investor slides on our website for additional information.

當然，所有這些都是基於我們當前的假設，這些假設可能會發生變化，當我們進行第二季電話會議時，我們將再次向您通報最新情況。 我將向您推薦我們網站上的投資者幻燈片以獲取更多資訊。

And with that, I'll turn the call back to John.

然後，我會將電話轉回給約翰。

Thank you, Bob. And we will now open the call up to your questions.

謝謝你，鮑伯。 我們現在將開始電話會議，回答您的問題。

Thank you. (Operator Instructions)

謝謝。 （操作員說明）

And we will take our first question from Mark Marcon with Baird.

我們將回答貝爾德和馬克馬爾孔提出的第一個問題。

Good morning and thanks for taking my questions. Have come to question first, with regards to any of the environment that you're currently seeing, how would you differentiate from the true small business market relative to the upper end of your target range? You know, companies with 50 to 71,000 employees?

早安，感謝您提出我的問題。 首先要問一個問題，對於您目前看到的任何環境，相對於您的目標範圍的上限，您將如何與真正的小型企業市場區分開來？ 您知道擁有 50 至 71,000 名員工的公司嗎？

Yes, Mark, this is John. How are you great or Ivan, I didn't say this is what we're seeing a pretty consistently across the board is we continue to see moderate growth both in the small and mid market. I would say from a demand perspective, certainly what we're seeing across the board is a lot more demand for driving efficiency.

是的，馬克，這是約翰。 伊万，你好嗎？ 我想說，從需求的角度來看，我們所看到的當然是對提高效率的更多需求。

Our HR outsourcing. I think the pure cat play, particularly up in the mid-market to enterprise. I see a little bit slower decision making going on there, but we're not seeing that in the upper end of our HR outsourcing market.

我們的人力資源外包。 我認為純粹的貓發揮作用，特別是在中端市場和企業中。 我發現那裡的決策速度有點慢，但我們在高端人力資源外包市場上並沒有看到這種情況。

So I think right now what I see across the border businesses are trying to drive efficiency and are looking for opportunities to reduce costs in the business. Great. And then second question is from had the pleasure of of of, you know, reviewing all of your new solutions at HR Tech and the team.

因此，我認為目前我所看到的跨國企業正在努力提高效率，並尋找降低業務成本的機會。 偉大的。 第二個問題來自於我有幸審查了 HR Tech 和團隊的所有新解決方案。

There just did a tremendous job in terms of giving a really proved professional presentation solutions were very impressive on was really struck by the recurring copilot. So one thing that struck me also was that it seems like a lot of the tools like, for example, the flex benefits I think would benefit, you know, every company some of the other tools on seem to be more geared towards companies that were a little bit larger.

在提供真正經過驗證的專業演示解決方案方面，他們做得非常出色，令人印象深刻，反覆出現的副駕駛確實給他們留下了深刻的印象。 因此，讓我印象深刻的一件事是，似乎很多工具，例如我認為會受益的彈性福利，你知道，每家公司的其他一些工具似乎更適合那些稍微大一點。

So what I was wondering, as you know, to what extent do you think you could become an even bigger player in the upper end of your markets? Or how would you characterize, you know, where the tools are our best on the best employed tier markets?

所以我想知道，正如您所知，您認為您可以在多大程度上成為高端市場的更大參與者？ 或者，您如何描述我們在應用最好的層級市場上最好的工具？

I think first of all, I would start with you, we have a very large upper mid-market business on Hassler a decade. I think I said, I don't think we get the recognition of our people recognize the strength that we have there, both in terms of a capability on a from a technology perspective, in an advisory solution perspective, I think when you step back and look at the products and services that we're focused on delivering, we believe is things to really apply across the spectrum of the market that we serve on finding qualified people is a problem that every small businesses having every midsize businesses having.

我想首先，我會從你開始，我們在哈斯勒十年來擁有非常龐大的中高端市場業務。 我想我說過，我認為我們沒有得到我們員工的認可，也沒有認識到我們在那裡擁有的實力，無論是從技術角度還是從諮詢解決方案的角度來看，我認為當你退後一步時看看我們專注於提供的產品和服務，我們相信真正適用於我們服務的整個市場範圍的事情是尋找合格的人才是每個小型企業和每個中型企業都面臨的問題。

And I think what we've had a reputation of doing, what do you look at it on what we did to blame for one came down to the smaller can yield over 20, some 20. Some years ago when you look at what we've done to bring an efficient P & C of workers' comp programs to the small market can do that efficiently.

我認為我們所做的事情享有盛譽，你如何看待我們所做的事情歸咎於一個較小的事情可以產生超過20個，大約20個。為將高效的工人補償計劃引入到小型市場所做的努力可以有效地做到這一點。

That's always kind of been in a DNA. So I think what we are trying to do is take what are typically tools and capabilities that are reserved for large enterprises and figured out how to economically brings down the small business owners so they can succeed. So we took in the big issue.

這一直是我們的 DNA。 因此，我認為我們正在嘗試做的是採用通常為大型企業保留的工具和功能，並找出如何在經濟上打倒小企業主，以便他們取得成功。 所以我們考慮了這個大問題。

We're real excited about the copilot product. On the other thing I would tell you about the copilot product is that not just for Paychex clients, you can go on Paychex.com. Today on our website, you can buy that digitally. You can frame it for a one-time or you can sign up for subscription service. So regardless of vigor, HCM provider may be we want to help small businesses grow.

我們對副駕駛產品感到非常興奮。 關於 copilot 產品，我要告訴您的另一件事是，不僅對於 Paychex 客戶，您還可以訪問 Paychex.com。今天，您可以在我們的網站上以數位方式購買。 您可以一次製作它，也可以註冊訂閱服務。 因此，無論活力如何，HCM 供應商可能都是我們希望幫助小型企業成長的。

And so that said, that's pretty important. The second thing that I think you would say is getting access to affordable benefits and providing affordable benefits both to attract and retain qualified employees, a problem. That's all which I always say, small medium-size businesses. So that's where you get into our Paychex perked up to a product.

話雖如此，這點非常重要。 我想你會說的第二件事是獲得負擔得起的福利，並提供負擔得起的福利來吸引和留住合格的員工，這是一個問題。 這就是我常說的中小型企業。 這就是您進入我們的 Paychex 並為產品感到興奮的地方。

We already have a full suite of insurance, as you know, both in terms of to our agency as well as in our PO. But the breadth of product, I really like it because it gives us employers to maybe can't afford to offer benefits a means to afford it because basically the way that works as we've curated digitally a set of benefits for their employees, that will not will you get onboarded onto our flex that they're going team and open enrollment and all of these benefits cost of the employer, nothing.

如您所知，我們已經為我們的代理商和採購訂單提供了全套保險。 但產品的廣度，我真的很喜歡它，因為它為我們那些可能無力提供福利的雇主提供了一種負擔得起的手段，因為基本上，我們以數字方式為員工策劃了一系列福利，您不會加入我們的彈性團隊並開放註冊，所有這些福利都是雇主的成本，沒有任何費用。

So the word I can tell and importantly, he joined, you're going to get all these benefits and then the employees signed up for these benefits. We do the payroll deduct another meeting we build into. This is the capability that up that employee leaves that employer, they can continue to have a relationship with Paychex and will continue to collect the credit card for them to offer them services silicon. It opens up the new market for us.

所以我可以說，重要的是，他加入後，你將獲得所有這些福利，然後員工也簽署了這些福利。 我們在另一次會議中扣除工資。 這是員工離開雇主後的能力，他們可以繼續與 Paychex 保持關係，並將繼續為他們收集信用卡以向他們提供服務晶片。 它為我們打開了新的市場。

So look, what we see across the board is the problems of from finding in attracting quality employees, getting access to affordable benefits, be able to retain and attract as employees. And then third theme is really around the funding area and getting access to growth. Capital is going to be a big problem, not only in the small micro market, but also in the mid market.

因此，我們看到的問題是從吸引優質員工、獲得負擔得起的福利到留住和吸引員工方面存在的問題。 第三個主題實際上是圍繞著融資領域和獲得成長。 資金將是一個大問題，不僅在小微市場，在中端市場也是如此。

And we're trying to address these problems that sounds really compelling. Are you going to advertise a little bit more because those are compelling solutions? Should it should stay tuned, Mark, but I think as you know, we're just beginning to get into our selling season. And certainly it's not a coincidence that we've launched all the time.

我們正在努力解決這些聽起來非常引人注目的問題。 您是否打算多做一點廣告，因為這些都是引人注目的解決方案？ 如果應該繼續關注，馬克，但我想你知道，我們才剛開始進入銷售季節。 當然，我們一直推出這個產品並不是巧合。

I would tell you, we've been working on this for what we knew during the pandemic that we were going to happen. And when the pandemic ended that we were going to have to come out with a different value proposition because what one business in the last three years isn't going to win in the next three. And it's not going to be a pure tech play is now I'm going to be on bells and whistles. It's truly going to be about solving problems in our in our estimation. And so we've been working on this for some time.

我想告訴你，我們一直在努力解決這個問題，因為我們在疫情期間就知道會發生什麼。 當疫情結束時，我們將不得不提出不同的價值主張，因為過去三年的一項業務在未來三年不會獲勝。 這不會是一個純粹的科技遊戲，現在我要花俏的東西。 這確實是為了解決我們認為的問題。 我們已經為此努力了一段時間。

You look at the perks product, we had a really reengineer a leading design, our core products so that we can actually create the employee to be able to the customer was never been able to do that before. These are all investments we've been making as interest rates were going up as we were getting the benefits of the ELTC. programs kind of behind the scenes. We've been making these investments.

你看看福利產品，我們確實重新設計了領先的設計，我們的核心產品，這樣我們就可以真正創造員工能夠為客戶做到以前從未能夠做到的事情。 這些都是我們在享受 ELTC 帶來的好處時，隨著利率上升而進行的所有投資。程式有點在幕後。 我們一直在進行這些投資。

And so it's not a coincidence that now the win, the post-pandemic era, we're launching these products. And I would expect as we go into selling season here has talked a lot about it.

因此，現在是後流行病時代，我們推出這些產品並非巧合。 我預計當我們進入銷售季節時，這裡已經討論了很多。

Pete Christiansen with Citi Group. Good morning.

花旗集團的皮特·克里斯蒂安森。 早安.

Thanks for that question. It's more churn. But just curious, is there any sense of how seasonal hiring is shaping up? And I know it was a bit of an issue in the December quarter, I'm sorry, the November quarter last year, and any sense of how that's trending?

謝謝你提出這個問題。 這是更多的攪動。 但只是好奇，季節性招募的情況是否有任何意義？ 我知道這在去年 12 月季度是一個問題，對不起，去年 11 月季度，你知道它的趨勢如何嗎？

Appreciate it. Thank you. Yes. So far, P. on. I think we made reference to this in the script in the press release, you know, hiring within our base, both within the ATM base in our HR outsourcing solutions was was positive in the quarter around experts, think events.

欣賞它。 謝謝。 是的。 到目前為止，P.on。 我認為我們在新聞稿的腳本中提到了這一點，你知道，在我們的基地內招聘，無論是在我們的人力資源外包解決方案中的ATM 基地內，在專家認為事件的本季度都是積極的。

We didn't build our plan this year, assuming a lot of growth and those areas. But for the second quarter in a row, hiring has been positive within our base in certainly running ahead of our expectations in our plants have seen.

我們今年沒有製定計劃，假設這些領域會有很大的成長。 但連續第二個季度，我們的基地內部招募情況一直積極，肯定超出了我們對工廠的預期。

I would add to that. We're working on this front very aggressively. And what we're trying to figure out is how do we help make sure that our clients still have vacancies, all these things you see us doing from a recruiting and talked about what we did in the video last year, you mentioned what do you have some seasonal softness. We actually created program there to go out and do that.

我想補充一點。 我們正在這方面非常積極地努力。 我們想要弄清楚的是，我們如何幫助確保我們的客戶仍然有職位空缺，您在招聘中看到我們所做的所有這些事情，並談到了我們去年在視頻中所做的事情，您提到了您做什麼有一些季節性的柔軟。 我們實際上在那裡創建了一個計劃來做到這一點。

And then with this new of copilot product. So we'd been aggressively trying to figure out ways that we can fill every vacancies that our clients have. As you can imagine, having seven 40,000 clients, all of them have two or three vacancies that adds up to a lot of checks.

然後是這款新的副駕駛產品。 因此，我們一直在積極尋找方法來填補客戶的每個職缺。 你可以想像，有七個 4 萬名客戶，他們都有兩到三個空缺，加起來就是很多支票。

And so you look at our in our HR consulting business, already HR consultants on increase there. There will be your interactions on both hiring and retaining by 273%. So we're packaging inflammation. We're using analytics to identify clients that we know we're having turnover problems, and then we'll proactively reaching out to trying to help them developments to build on in this environment to continue to see that the checks and worksite employee there is some exceeded our expectations, and we're going to continue to work on that problem.

所以你看看我們的人力資源諮詢業務，人力資源顧問已經在增加。 273% 的人會在招募和留任方面進行互動。 所以我們正在包裝發炎。 我們正在使用分析來識別我們知道存在人員流動問題的客戶，然後我們將主動聯繫，試圖幫助他們在這種環境中發展，以繼續看到那裡的檢查和工作現場員工有些超出了我們的預期，我們將繼續解決這個問題。

The recruiting to store certainly sounds exciting here. Just curious if this deepens our relationship with with staffing agencies and I know that's a reasonable portion of your based. Just curious if this is this tool has potential to broaden and from a net exposure. Thank you.

商店的招募聽起來確實令人興奮。 只是好奇這是否會加深我們與人才仲介機構的關係，我知道這是您的合理部分。 只是好奇這個工具是否有擴大淨曝光的潛力。 謝謝。

Yes, I don't think we designed this tool specifically for the staffing. Certainly, you know, we do some funding in staffing business. We have staffing companies that are on our HCM platform as a matter of fact. And we also have some staffing companies leverage IPO as well. So this is more on not only all of our clients for business for all small businesses.

是的，我不認為我們是專門為人員配置設計這個工具的。 當然，你知道，我們在人員配置業務上做了一些資助。 事實上，我們的 HCM 平台上有一些人力資源公司。 我們也有一些人力資源公司也利用IPO。 因此，這不僅適用於我們所有的客戶，也適用於所有小型企業。

Again, I'll go out. This is a unique thing for Paychex. Not only is this going to allow us to have for the product penetration inside our base. But this is actually a way for us to begin to have a relationship with a non HX payroll customers. So anyone can go on Paychex.com. Today and sign up in search for a job today. We really want to encourage that and help small businesses attract and retain employees.

再說一遍，我要出去。 這對 Paychex 來說是獨一無二的。 這不僅能讓我們的產品滲透到我們的基地內。 但這其實是我們開始與非 HX 薪資客戶建立關係的一種方式。 因此任何人都可以訪問 Paychex.com。今天就註冊尋找工作。 我們確實希望鼓勵這種做法，並幫助小型企業吸引和留住員工。

Kevin McVeigh, UBS.

凱文麥克維，瑞銀集團。

Great. Thanks so much and congrats on the quarter. If I think about the pacing of the Q1 to Q2 revenue, is that primarily less headwinds from your TC., John? Or is it maybe a little bit better than expected client interaction? Or just any thoughts around that?

偉大的。 非常感謝並祝賀本季。 如果我考慮第一季到第二季收入的節奏，這主要是不是來自您的 TC 的阻力較小。 或者它是否比預期的客戶互動要好一點？ 或只是對此有任何想法？

Yes, Kevin, this is Bob on. So when you look at the I think the answered a lot of questions in and talked a lot until a lot of you over the last quarter about kind of the gating of the plan. And I think it was a little bit misunderstood by some of that's on us as it relates to the ERTC.

是的，凱文，這是鮑伯。 因此，當您查看時，我認為他們回答了很多問題並談論了很多，直到上個季度你們中的許多人都談到了計劃的控制。 我認為我們的一些人對它有一點誤解，因為它與 ERTC 相關。

But when you look at the gating of the plan this year, it is fairly even only gated throughout the entire year. So if we go back to last year, um, we can we saw momentum in the second half of last year. We saw an acceleration of growth in the back half versus the first half, and that really continued in Q1, no extra headwinds.

但當你看看今年該計劃的門控時，你會發現它甚至只在全年中門控。 所以如果我們回到去年，嗯，我們可以看到去年下半年的勢頭。 與上半年相比，我們看到下半年成長加速，這種情況在第一季持續存在，沒有額外的阻力。

We mentioned revenue growth of 7%. And when you look at the gate getting by quarter, it's pretty much the same, you know, is I know the guide implies implies a ramp and performance as we move through the year, but that's really doesn't have to do it this year. It has to do with the comparative last year getting easier. So the ERTC. headwind from 200 basis on a full year standpoint, it was it was pretty large in Q1.

我們提到收入成長7%。 當你看到每個季度的大門時，你知道，這幾乎是一樣的，我知道指南暗示著我們在這一年中的成長和表現，但這實際上不必在今年這樣做。 這與去年的比較變得更容易有關。 所以 ERTC。從全年的角度來看，逆風從 200 的基礎上看，第一季的阻力相當大。

As we move into Q2, it becomes less. I mentioned on that in the prepared remarks, it is about 200 basis points in Q2. It will become less in Q3 and then it basically zero in Q4. So I have two more quarters having to talk about in the RTC. headwind in minutes behind us. But really the there's not a and I assume ramp in performance in our business.

當我們進入第二季度時，它會變得更少。 我在準備好的發言中提到，第二季大約是200個基點。 第三季會減少，第四季基本上為零。 所以我還有兩個季度要在 RTC 中討論。幾分鐘後逆風就在我們身後。 但實際上，我認為我們業務的業績並沒有提升。

We got good momentum that started in the second half of last year has continued into Q1, and we expect that to continue through the through the balance of the year. That's super helpful. And then just the adjustments on the float, where was the offset because obviously nice job being able to reaffirm the margin targets.

我們從去年下半年開始的良好勢頭一直持續到第一季度，我們預計這種勢頭將持續到今年餘下的時間。 這非常有幫助。 然後只是對浮動匯率的調整，抵銷額在哪裡，因為能夠重申利潤目標顯然是件好事。

Was there any offset on that? Or is it just where you think you're going to fall in the range?

這有什麼抵消嗎？ 或者這只是您認為自己會落在該範圍內的位置？

Well, listen, I mean, Q1 was slightly better than what we expected. So I think that that gives us gives us confidence confidence in maintaining the ranges. And we've been able to we roll through the I mentioned 1 25 basis points of cost. Our plan only had 25 basis points because we've now pretty much aligned with where the Fed would expect the short term rate to be at the end of this calendar year, which is another 50 basis points worth of cuts.

好吧，聽著，我的意思是，第一季比我們預期的要好一些。 所以我認為這給了我們維持區間的信心。 我們已經能夠將我提到的 1 25 個基點的成本進行滾動。 我們的計畫只有 25 個基點，因為我們現在幾乎與聯準會預計的今年年底的短期利率一致，這相當於又削減了 50 個基點。

And then we also have another 25 basis points of cost cuts assumed in our in our back half, which is the first half of the calendar year. But just given the momentum in the business, Tom retention was good. Losses were down year over year.

然後，我們也假設下半年（即今年上半年）成本將削減另外 25 個基點。 但考慮到業務的發展勢頭，湯姆的保留率還是不錯的。 虧損逐年下降。

As John mentioned, the demand environment being strong. We continue to see strong demand and performance in our HR outsourcing solutions in our retirement business, basically in three businesses during the quarter that were double digit growers.

正如約翰所提到的，需求環境強勁。 我們繼續看到退休業務中人力資源外包解決方案的強勁需求和業績，基本上在本季實現兩位數成長的三個業務中。

The TPO. retire. And then our funding business organically was a double-digit grower. So just based on the momentum in the business, the Q1 performance, we've been able to kind of cover the changes to the short term rates in really maintained guidance. I wouldn't expect gains to be any any different up part within the ranges and where we were in the beginning of the year .

TPO。退休。 然後我們的融資業務有機地實現了兩位數的成長。 因此，僅根據業務動能和第一季的表現，我們就能夠在真正維持的指導下涵蓋短期利率的變化。 我預計收益不會與年初的範圍內有任何不同。

I think remember, it's got a lot of things in front of us, election of global items. I think that we have to continue to monitor and work, and we'll just really getting into our selling season as everyone knows. So a lot to good starts out started.

我想請記住，我們面前有很多事情，全球計畫的選舉。 我認為我們必須繼續監控和工作，眾所周知，我們將真正進入銷售季節。 所以很多好的開始就開始了。

As Bob says, we like come to set up with our products to all the stuff we've been doing have set ourselves up for the post-pandemic era. We are in place. We've got a lot of changes we've made to our go-to-market approach and strategies, and those investments are showing good signs early on in the fiscal year. And so we like is that there still are sold through.

正如鮑伯所說，我們喜歡用我們的產品來建立我們一直在做的所有事情，為後大流行時代做好準備。 我們就位。 我們對市場進入方式和策略做出了許多改變，這些投資在本財年初期就顯示出了良好的跡象。 所以我們喜歡的是仍然有售完。

So headwinds out there on that with that we're trying to manage around as well. Thank you.

因此，我們也在努力解決這個問題。 謝謝。

Bryan Bergin, Cowen.

布萊恩·伯金，考恩。

Hi, guys. Good morning and thank you. I wanted to dig in a little bit on the modestly better 1Q revenue growth in you noted hiring was better than expected. Can you comment on how bookings and retention, just how those performed versus your plan?

嗨，大家好。 早安，謝謝。 我想深入探討您提到的招聘情況好於預期，第一季營收成長略有改善。 您能否評論一下預訂和保留情況，以及這些預訂和保留情況與您的計劃相比如何？

Yes, Brian, I mean, I would tell you retention was up was positive on continues to be at or near record levels. And particularly in our HR outsourcing business, our client retention on actually was better year over year as well. Both controllable and uncontrollable, the latter being a good sign relative to none, nondiscretionary type of activities, the fact of what you have less kind of our business and financial distress of losses on.

是的，布萊恩，我的意思是，我會告訴你，保留率上升是積極的，並且繼續處於或接近創紀錄的水平。 特別是在我們的人力資源外包業務中，我們的客戶保留率實際上也逐年提高。 可控和不可控，後者相對於沒有、非自由裁量類型的活動來說是一個好兆頭，事實是你對我們的業務和損失的財務困境較少。

So retention was a solid in the quarter.

因此，本季的留存率非常穩定。

Okay. And then on PGRAPO. growth, can you remind us what makes the PO accelerate from here as you go through the year? And maybe just comment on how from a PEO. health enrollment standpoint, how they October one enrollment.

好的。 然後是 PGRAPO。成長，您能提醒我們是什麼讓 PO 在這一年中從現在開始加速嗎？ 也許只是評論一下 PEO 的做法。從衛生招生的角度來看，他們10月招生情況如何。

Yes. Yes. So so so Brian, I mean, the fact that there is a TRO acceleration is going to happen by continuing to see worksite employee acceleration, which we continue to see. And we had solid bookings in the first quarter. As you know, field starts off the first quarter is important because you doubt that the time that we roll out our new benefits plans and actually those plans are on are resonating with our clients and with the marketplace.

是的。 是的。 所以布萊恩，我的意思是，透過繼續看到工作場所員工的加速，我們將繼續看到這一點，這一事實將會發生 TRO 加速。 第一季我們的預訂量很充足。 如您所知，第一季的現場啟動很重要，因為您懷疑我們推出新福利計劃的時間以及實際上這些計劃是否會引起我們的客戶和市場的共鳴。

And we're through the first part of our enrollment. And that enrollment is moving and slightly exceeding our expectations, both in terms of client retention as well as disciplined on penetration as well. So so quickly, we are there. We still have a, you know, where to go on as we as we finish our January. But I would say where we are at this point right now is where we were last year at this point, I feel really good about the setup for the deal.

我們已經完成了註冊的第一部分。 無論是在客戶保留率還是滲透率方面，註冊人數都在變化，並且略超出了我們的預期。 這麼快，我們就到了。 你知道，當我們結束一月份時，我們還有一個繼續前進的地方。 但我想說的是，我們現在所處的位置就是去年此時的位置，我對這筆交易的設定感覺非常好。

Tien-Tsin Huang, JPMorgan.

黃天進，摩根大通。

I think type outside China. Just wanted to ask on the book, definitely some good public velocity. Echo the comments that on the call, just going into the selling season, would you expect some of the new products are showcasing to impact unit growth more? Was it more about upselling and higher revenue per? I just wanted to but understand that.

我認為在中國以外的地方打字。 只是想問一下這本書，絕對是一些很好的公眾速度。 與電話會議上的評論相呼應，剛進入銷售季節，您是否預計展示的一些新產品會對單位成長產生更大的影響？ 更多的是關於追加銷售和更高的收入嗎？ 我只是想了解這一點。

Yes. I think what we're trying to focus on, and I'll keep going back to this from visitors between those three core problem that we're focused on, putting our energy that we think have been consistent problems before the pandemic during the pandemic has accelerated in post-spin, and that is recruiting and retaining quality employees.

是的。 我認為我們正在努力關注的是什麼，我將繼續從訪客那裡回到我們關注的三個核心問題之間，將我們認為在大流行期間一直存在的問題投入精力分拆後加速，那就是招聘和留住優質員工。

And we believe that the solutions that we're applying in that area not only help us drive more unit growth, but we also believe that it improves our retention that have we're helping our clients solve that problem, then that's going to help them see the value of Paychex. And if we can provide value propositions that I can help you find people, you have not been able to find we think that's going to attract new clients as well. So we think it's retentive.

我們相信，我們在該領域應用的解決方案不僅可以幫助我們推動更多的單位成長，而且我們還相信，它可以提高我們的保留率，如果我們幫助客戶解決這個問題，那麼這將幫助他們查看Paychex的價值。 如果我們能夠提供價值主張，我可以幫助您找到人，您無法找到我們認為這也會吸引新客戶。 所以我們認為它具有保留性。

We think it gives us additional upsell opportunity with existing clients to add that module one, we also think it's a way to attract new clients as well. Our my view on the on the copilot, you don't have to be of existing Paychex clients to buy it today.

我們認為這為我們提供了向現有客戶添加此模組的額外追加銷售機會，我們也認為這也是吸引新客戶的一種方式。 我們對副駕駛的看法是，您不必是現有 Paychex 客戶即可今天購買。

And what we certainly hope is that we use common strategy, our small business recruiting tool to find individuals that you're going to get a call from one of our HR advisors and talk to you about what else we could be doing to help you engage our employees and keep them as well. So we also think that's a good thing.

我們當然希望的是，我們使用通用策略，即我們的小型企業招聘工具來找到您將接到我們的人力資源顧問的電話的個人，並與您討論我們還可以採取哪些措施來幫助您參與進來我們的員工並留住他們。 所以我們也認為這是一件好事。

And then you look at the second problem that we're trying do, which is affordable benefits. I mean, I think we're we still have not heard the Sonic boom of the pandemic in health care costs. And I think you'll have a contract negotiations with hospitals and carriers all that's coming through. And what we see from and health inflation perspective is that people are looking for someone who has the scale and the capability and the relationships to be able to help them manage costs go up.

然後你看看我們正在嘗試解決的第二個問題，即負擔得起的福利。 我的意思是，我認為我們仍然沒有聽到醫療保健費用大流行的音速爆炸。 我認為您將與醫院和運營商進行合約談判，所有這些都將完成。 從健康通膨的角度來看，我們看到人們正在尋找有規模、有能力和有關係的人來幫助他們管理成本的上升。

We're not going to buy cheap insurance, but at least we think we can certainly certainly help people manage over the long term because we've demonstrated that in RPO and our agency can do that as well. And then the third thing that we're still working on and more to come on this is trying to help our clients gain access to growth funding. On one of the things I would tell you that's been a headwind for us. It was a headwind this quarter. It's been a headwind for some time.

我們不會購買廉價的保險，但至少我們認為我們肯定可以幫助人們進行長期管理，因為我們已經在 RPO 中證明了這一點，我們的機構也可以做到這一點。 我們仍在努力的第三件事以及接下來要做的更多事情是努力幫助我們的客戶獲得成長資金。 我要告訴你的一件事是，這對我們來說是一個阻力。 這是本季的逆風。 一段時間以來，這一直是逆風。

Typically within our client base, our clients are adding new locations. And so that's why we get a natural growth. We call client referrals, but it's really not client referrals as a client. You know, again, we did with a lot of entrepreneurs. They open a lot of businesses.

通常在我們的客戶群中，我們的客戶會增加新的地點。 這就是我們自然增長的原因。 我們稱之為客戶推薦，但實際上這並不是作為客戶的客戶推薦。 你知道，我們再次與許多企業家合作過。 他們開了很多生意。

The fact that they're not adding additional sites has actually kind of hurt our unit growth a little bit for us for several years. And I think with the Fed rate going down, that's going to help. But we've also been working with fintechs and others.

事實上，他們沒有增加額外的站點，這實際上對我們幾年來的單位成長造成了一些影響。 我認為隨著聯準會利率的下降，這將會有所幫助。 但我們也一直在與金融科技公司和其他公司合作。

And what we wanted to do is create an ecosystem where we can help support our clients, gain access to affordable funding to be able to grow the business because it's a growing the business that's been helping checks. And on the latter, that's a great point because attending a lot of fintech conferences. So this concept, you mentioned early wage access, the concept of, but maybe doing more of that directly versus with with partners.

我們想要做的是創建一個生態系統，在這個生態系統中我們可以幫助支持我們的客戶，獲得負擔得起的資金，從而能夠發展業務，因為業務的成長一直在幫助支票。 對於後者，這是一個很好的觀點，因為參加了很多金融科技會議。 所以這個概念，你提到了早期工資獲取的概念，但可能直接比與合作夥伴做更多的事情。

Has your view changed on on that?

您對此的看法有改變嗎？

No, I think I think that's what we're trying to do is create a way to think about it this way you like, as you know, in our app today, if you're an employee and you're going to onboard and employee, we want to Crane onboarding experience like you are with the large company like Paychex, you're going to come in and you're going to give us your information inside your your tax inflow nation for so we can load you up and then we're going to offer you an open enrollment experience to look at benefits that you can buy on your own.

不，我想我認為我們正在嘗試做的是創建一種方式來思考它，就像你知道的那樣，在今天我們的應用程式中，如果你是一名員工並且你要入職並且員工，我們希望像您在Paychex 這樣的大公司一樣獲得入職體驗，您將進來並向我們提供您的稅收流入國家/地區的信息，以便我們可以加載您，然後我們將為您提供開放註冊體驗，以了解您可以自行購買的福利。

You don't need your employer chipping in the same thing we're trying to do for the employer when they're going to run your payroll because for most small businesses, the payroll is the largest expense. So what we're trying to do is set up an acre, the system that when it comes time to fund your pain goal, we want to bring a set of partners right there in the app with your ability to say, look, you're prequalified for $10,000 of loan or you could potentially get access to funds if you needed to float your payroll for a period of time.

當雇主要管理你的薪水時，你不需要你的雇主像我們試圖為雇主做的那樣，因為對大多數小型企業來說，薪資是最大的開銷。 因此，我們正在嘗試建立一英畝的系統，當需要為您的痛苦目標提供資金時，我們希望在應用程序中引入一組合作夥伴，讓您能夠說，看，您'您已獲得10,000 美元貸款的資格預審，或者如果您需要在一段時間內浮動工資，您也有可能獲得資金。

So we're trying to create that ecosystem. Nothing yet, but that's the vision we have in talking to our small business owners about how we can help them. We have a program called Paychex promise. We'll have a lot of our long-standing clients that have demonstrated that they're still good risk that will actually work with them a little bit on the table that payroll basis a lot we can do.

所以我們正在努力創建這個生態系統。 目前還沒有，但這就是我們與小企業主討論如何幫助他們的願景。 我們有一個名為 Paychex Promise 的計劃。 我們將有很多長期客戶，他們已經證明他們仍然具有良好的風險，實際上會在工資單的基礎上與他們合作，我們可以做很多事情。

So again, just wondering two things, but we believe that we do that it's going to attract more customers is going to retain more customers. It's really addressing equivocal need the debt that the small business owners, app mix returns.

再說一遍，只是想知道兩件事，但我們相信我們這樣做會吸引更多客戶，從而留住更多客戶。 它確實解決了小企業主、應用程式組合回報的債務的模糊的需求。

James Faucette, Morgan Stanley.

詹姆斯‧福賽特，摩根士丹利。

Ron and Mike on content for James. Thanks for taking the question. I just wanted to go back to some commentary that you provided last quarter, just in terms of in some of some of the challenges that you maybe saw just in terms of your capacity to serve, get deals across the finish line and how pricing and discounting is playing into that. Was that sort of one-time in nature? Or did you see any of that in the quarter? And how should we expect that to play out over the near to medium term? Thanks.

羅恩和麥克討論詹姆斯的內容。 感謝您提出問題。 我只是想回顧一下您上季度提供的一些評論，就您可能看到的一些挑戰而言，這些挑戰包括您的服務能力、完成交易以及如何定價和折扣正在發揮作用。 這本質上是一次性的嗎？ 或者您在本季度看到了這些情況嗎？ 我們該如何預期這種情況在中短期內會發生什麼？ 謝謝。

Yes, I would say that the that the competitive environment is stable in terms of that, certainly it's a highly competitive environment, but I'm not seeing anything relative to anything dramatically different in terms of that. In terms of the pricing environment. Time is helpful.

是的，我想說的是，競爭環境在這方面是穩定的，當然這是一個高度競爭的環境，但我沒有看到任何與這方面顯著不同的事情。 從定價環境來看。 時間很有幫助。

Maybe just to piggyback on Brian's earlier question, just in terms of bookings composition, if you sort of how to stratify it between our two buckets, payroll and HCM versus insurance and retirement, I think insurance and retirement or sort of some of the key drivers last quarter, but that's and of what's driving the relative strengths, how is it fairly broad-based? And how do you think that our strength is going to persist over the near term?

也許只是藉用布萊恩之前的問題，就預訂組成而言，如果你想知道如何在我們的兩個部分（工資和HCM 與保險和退休）之間進行分層，我認為保險和退休或一些關鍵驅動因素上個季度，但這就是推動相對優勢的因素，它的基礎如何相當廣泛？ 您認為我們的優勢在短期內將如何持續？

Thanks. Yes, I think what I would say, I think the demand is out there across the suite. Actually when we look at proposals are proposals and almost all segments are up year over year. Anything again, as we know, we're just entering our selling season for most of our market segments is when people really are making their decisions.

謝謝。 是的，我想我想說的是，我認為整個套件都有需求。 實際上，當我們查看提案時，提案就是提案，幾乎所有部分都在逐年增加。 再說一遍，正如我們所知，我們剛剛進入大多數細分市場的銷售季節，這是人們真正做出決定的時候。

But I do think there's a lot of a lot of people that are out there, shopping and working. And in comparing our providers have seen that, I see that in the numbers that we see analysis a matter of giving them the compelling value proposition to close as we get into the selling season.

但我確實認為有很多人在外面購物和工作。 在比較我們的供應商時，我發現，在我們分析的數字中，我們需要為他們提供令人信服的價值主張，以便在我們進入銷售季節時完成交易。

So I see a very stable demand environment and feel good about how we're positioned going into on into the selling season. But we have a lot of work to do. And that's really what we're going to see over the second and third quarter.

因此，我看到了非常穩定的需求環境，並對我們進入銷售季節的定位感到滿意。 但我們還有很多工作要做。 這確實是我們在第二季和第三季將看到的情況。

Samad Samana, Jefferies.

薩馬德·薩馬納，杰弗里斯。

Hi, good morning and thanks for taking my questions. First, just on the on the new kind of benefit to our financial wellness solutions. Could you just remind us how the monetization works there and what type of contribution you have embedded in cash into the fiscal 2025 outlook? And just what from I just want to segment. It doesn't love and have one follow-up.

你好，早安，感謝您回答我的問題。 首先，我們的財務健康解決方案將帶來新的好處。 您能否提醒我們貨幣化的運作方式以及您在 2025 財年展望中以現金形式做出的貢獻是什麼？ 我只想細分什麼。 它不愛，也沒有後續。

Well, I'll do. I'll describe what this is something we're just beginning to launch. We've been we've been worth dwelling were only eight weeks into it. I'm pleased with the initial on initial results. We've been testing this for awhile, but it basically works like this. You're an employee of our client. You get onboarded, you're moving oil coming on.

好吧，我會做的。 我將描述我們剛開始推出的產品。 僅僅八週後，我們就已經值得停留了。 我對初步結果感到滿意。 我們已經對此進行了一段時間的測試，但基本上它是這樣工作的。 您是我們客戶的員工。 你上船了，你就開始輸送石油了。

We go through the onboarding process where you are voting, your address your information, your tax information. We didn't put you into a traditional open enrollment at screen where you didn't have a menu of choices, both in terms of benefits as well as our earned wage access. You sign up for those.

我們會完成您投票的入職流程、您的地址、您的資料、您的稅務資訊。 我們並沒有讓您進入傳統的公開註冊螢幕，在螢幕上您沒有選擇菜單，無論是在福利還是我們的工資方面。 你報名參加那些。

And then we deduct that from your from from the wages of each payroll. And I guess I forget that if I don't know yet, we'll just on the second part of your questions. And I mean, it's early innings. We do have some dollars assuming the plan.

然後我們從每個工資單的工資中扣除該金額。 我想我忘了，如果我還不知道，我們只會回答你問題的第二部分。 我的意思是，現在是早期幾局。 我們確實有一些美元來承擔這個計劃。

But I would say at this point in time, it's not material. And a lot of that is insurance related and hit the in the PEO and insurance category. But it's small dollars assumed in the plan. As John said, we're just we're just kicking this off in its early innings, but we think it has a lot of potential.

但我想說，在這個時候，這並不重要。 其中很多與保險相關，屬於 PEO 和保險類別。 但這只是計劃中假設的小額資金。 正如約翰所說，我們只是在早期階段開始，但我們認為它有很大的潛力。

Yes, Jim, I would continue to look at these type of things, have been items that we look for that or not only going to increase revenue and profit, but also going to improve our ability to attract by differentiating ourselves for new clients and creating a retainer factor with existing clients because we're providing something that's not being offered in the market cash.

是的，吉姆，我會繼續關注這些類型的事情，這些都是我們尋找的項目，或者不僅會增加收入和利潤，而且還會通過使自己在新客戶中脫穎而出並創造新客戶來提高我們吸引的能力現有客戶的保留因素，因為我們提供的東西是市場上現金無法提供的。

And then maybe just a follow-up. I know the last couple of quarters you guys to talk about the discounting environment and the pricing environment. I'm curious what you saw in this most recent quarter from us from a discounting perspective. And I mean the frequency and magnitude that you're having to discount it and what trends you've observed, then there's been any change from what you've observed from the prior couple of quarters?

然後也許只是後續行動。 我知道過去幾季你們談論了折扣環境和定價環境。 我很好奇您在最近一個季度從折扣角度看到了我們的情況。 我的意思是你必須折扣的頻率和幅度以及你觀察到的趨勢，那麼與你在前幾個季度觀察到的情況相比有什麼變化嗎？

No, I would say that what we're seeing is a little more stability to what what we've seen over the last probably couple of quarters. It's still a competitive environment. But what I would say, it's a little more stable in terms of what we've seen now.

不，我想說的是，我們所看到的情況比過去幾季的情況更加穩定。 這仍然是一個競爭環境。 但我想說的是，就我們現在所看到的情況而言，它更加穩定一些。

We say that without at the end of the selling season and we'll see what things come up with, I looked I do think up an interesting phenomenon is is is running itself across our industry and something that's called our profitability.

我們說，在銷售季節結束時，我們會看看會發生什麼，我確實認為一個有趣的現像是在我們的行業中運行，這就是我們的盈利能力。

And that seems to drive rationality as well.

這似乎也推動了理性。

Andrew Nicholas, William Blair.

安德魯尼古拉斯、威廉布萊爾。

Hi, good morning. And wanted to first follow up on that last question, just specific to the PEO. business, want to make sure that you could speak to its competitive dynamics in the pricing there? It seems like at some of your peers, both public and private are talking about increased aggressiveness on pricing front. You've had very good growth in that business now for several quarters in a row. So just curious if your comment about is it being a little bit more stable also applies to that part of your business?

嗨，早安。 我想先跟進最後一個問題，專門針對 PEO。企業，想要確保您可以談論其定價方面的競爭動態嗎？ 似乎在某些同行中，無論是公共部門還是私人部門都在談論在定價方面加強。 現在該業務已經連續幾個季度取得了非常好的成長。 所以只是好奇您關於它是否更加穩定的評論是否也適用於您的那部分業務？

Yes. I guess that I would say cost across each one of our business segments. I would say that's true in particularly the deal.

是的。 我想我會說我們每個業務部門的成本。 我想說，尤其是在這筆交易中，情況確實如此。

Okay, understood. And then for a follow-up, just curious on on the agency business or the Insurance Solutions business specifically, I know you've had some growth headwinds on the rate side over the past couple of years. Just curious if there's any signs of stabilization there or that bottoming and what that could potentially mean and for growth in the back half of this year or into future years is if there is a trough in that part of the business.

好的，明白了。 然後，對於後續行動，我只是對代理業務或保險解決方案業務特別感興趣，我知道過去幾年您在利率方面遇到了一些成長阻力。 只是好奇是否有任何穩定或觸底的跡象，以及這對於今年下半年或未來幾年的成長可能意味著什麼，即該部分業務是否出現低谷。

Thank you. Yes. I mean, entered unfortunately, Andrew, that when continued on into Q1 on the workers' comp rate side, I think it gets picked up on the comment that I that I made earlier it their way through the strength of the PEO business. I mean, overall, the category grew at 7%, but deal with the double digit growth or was strong sales performance, three retention on in just overall, really good strength in that deal. Business Insurance continued head factor that into the plan, Palm.

謝謝。 是的。 我的意思是，不幸的是，安德魯，當繼續進入第一季的工人補償方面時，我認為我之前透過 PEO 業務的實力所做的評論得到了重視。 我的意思是，總體而言，該類別增長了 7%，但處理了兩位數的增長，或者是強勁的銷售業績，總體而言，留存率為 3%，該交易的實力確實不錯。 商業保險繼續將這一點納入該計劃，Palm。

So I don't see a lot of risk as we move forward to what we're calling out here from from a guidance standpoint. But the print numbers here that don't really do the Justice for the PEO business because it's combined with insurance performer for us again this quarter.

因此，從指導的角度來看，當我們朝著我們在此呼籲的方向前進時，我認為沒有太多風險。 但這裡的印刷數字並沒有真正為 PEO 業務帶來公正，因為它在本季度再次與我們的保險執行者結合在一起。

And as we mentioned, we're going to we're going to continue to innovate around the insurance business on the perks up launches, one example extending that market now that includes being able to have a relationship with the with our clients employees directly on. And we're going to continue to look look for ways that we can expand the market opportunity for the insurance business because certainly to the 2.5 million workers' comp market, it has been challenging for several years. We keep thinking it's going to turn around in the macros. They're just not happening.

正如我們所提到的，我們將繼續圍繞保險業務在福利推出方面進行創新，現在擴大該市場的一個例子包括能夠直接與我們的客戶員工建立關係。 我們將繼續尋找擴大保險業務市場機會的方法，因為對於 250 萬工人補償市場來說，多年來它一直充滿挑戰。 我們一直認為宏觀經濟將會好轉。 它們只是沒有發生。

So we've got to take control of our own destiny and we're going to continue to work on that businesses and come up with ways to add revenue there.

因此，我們必須掌控自己的命運，我們將繼續致力於這些業務，並想出增加收入的方法。

Ashish Albert Chao, RBC.

Ashish Albert Chao，加拿大皇家銀行。

Hi, this is David page on fresh. Thanks for taking our question. Just a quick follow-up on was discussed earlier, the 5.5% European growth and cost of service revenues were just can you provide more color on what was driving that growth year over year? And then I guess half we think of that line item aggressive?

大家好，這是新鮮事的大衛頁。 感謝您提出我們的問題。 之前討論過的快速跟進，歐洲 5.5% 的成長和服務收入成本只是您能提供更多關於推動這一同比增長的因素嗎？ 然後我想我們有一半人認為該訂單項目具有侵略性？

Yes, thank you. I mean, we don't specifically break break that out and provide guidance on and on expenses, I would tell you over between the different lines, David, I think I mentioned in the prepared remarks from expenses were up three, 3% in the quarter. A lot of that was driven by the performance in the PEO business on the higher insurance revenues that we've seen. I think tax ex those higher costs on our expenses were essentially flat in the quarter.

是的，謝謝。 I mean, we don't specifically break break that out and provide guidance on and on expenses, I would tell you over between the different lines, David, I think I mentioned in the prepared remarks from expenses were up three, 3% in the四分之一. 這在很大程度上是由我們所看到的 PEO 業務較高的保險收入所帶來的業績所推動的。 我認為，除稅外，我們的支出成本在本季基本持平。

And within, as John mentioned earlier, we spent a lot of time last year on our cost structure, getting our costs in line from knowing that we had a fairly big headwind this year front from an earnings standpoint and margin standpoint with the RTC. from. So we spent a lot of time last year in obviously, we announce our comp cost optimization project at the end of the last year to really get costs in line.

正如約翰之前提到的，我們去年在成本結構上花了很多時間，因為我們知道今年從盈利角度和 RTC 的利潤角度來看我們遇到了相當大的阻力，因此我們的成本保持一致。從。 因此，我們去年顯然花了很多時間，我們在去年年底宣布了我們的補償成本優化項目，以真正保持成本一致。

So we can continue to invest in the business. And I think you're seeing the fruits of those investments with a lot of the new solutions that John highlighted that we were able to showcase of last week at HR Tech and really still being able to deliver some margin expansion.

這樣我們就可以繼續投資這項業務。 我認為您已經看到了這些投資的成果，約翰強調了我們上週在 HR Tech 上展示的許多新解決方案，並且確實仍然能夠實現一些利潤成長。

The midpoint of the guide assumes about a 50 basis points of margin expansion on enabling us to it best and deliver margin expansion in the face of that ERTC. headwind, which has a fairly significant on earnings headwind as well.

該指南的中點假設利潤率擴張約 50 個基點，以使我們能夠在 ERTC 面前做到最好並實現利潤率擴張。逆風，這對獲利也有相當大的逆風。

Bryan Keane, Deutsche Bank.

布萊恩‧基恩，德意志銀行。

Hi, guys. This is it makes sense. And on for Brian, I just want to follow up on the margin comments there. So you're expecting 2Q margins of 40%, maybe a little bit lower than we had expected and still maintain the full year guide complemented 2% to 43% .

嗨，大家好。 這就是有道理的。 至於布萊恩，我只想跟進那裡的邊際評論。 因此，您預計第二季的利潤率為 40%，可能比我們的預期略低一些，但仍維持全年指導補充 2% 至 43% 的水平。

So I know there's seasonality in the business and the backup tends to be stronger for you guys in terms of the margin. But maybe you can talk about your confidence in realizing, I guess, some pretty material margin sequential margin experienced in the back half, particularly as it looks like there's still going to be some ERTC. headwinds in the third quarter.

所以我知道業務存在季節性，就利潤而言，備份對你們來說往往會更強。 但也許你可以談談你對實現後半段經歷的一些相當大的連續利潤率的信心，特別是因為看起來仍然會有一些 ERTC。第三季的逆風。

Yes. I mean, it's really the same story as the on the revenue. I mean, it's really that compare Tom margins, actually the RTC. margin expansion in Q1 was about 200 basis points of margin expansion in Q1, actually, RTC. I gave you that 40, 40% for Q2 color, which implies a slight contraction in margin versus last year. But again, if you exclude ERDC. is between 150 to 200 basis points of margin expansion in Q2 as well. And then obviously the headwinds subside the back half of the year, and that's where you did you get the margin expansion on the full year basis, still similar to the revenue accelerate acceleration that appears to be in the plan. I mean, it's the same story with margin expansion. It really relates to the prior year compare.

是的。 我的意思是，這與收入的情況確實是一樣的。 我的意思是，這實際上是在比較 Tom 的利潤，實際上是 RTC。第一季的利潤率擴張約為第一季利潤率擴張的 200 個基點，實際上是 RTC。我給了你第二季度顏色的 40%，這意味著利潤率與去年相比略有收縮。 但同樣，如果你排除 ERDC。第二季的利潤率也擴大了 150 至 200 個基點。 然後顯然，不利因素在今年下半年消退，這就是您在全年基礎上實現利潤率擴張的地方，仍然類似於計劃中似乎出現的收入加速加速。 我的意思是，利潤擴張也是同樣的情況。 這確實與前一年的比較有關。

Got it. That's helpful. And then for the follow-up, you mentioned update on the go-to-market strategy a couple of times in the prepared remarks. And I so I know last quarter, we talked about some maybe some rollout issues with the digital channel, but assume those are behind us now maybe beyond that, are you starting to see some traction on the changes you made with your go-to-market approach?

知道了。 這很有幫助。 然後，對於後續行動，您在準備好的評論中多次提到了上市策略的更新。 我知道上個季度，我們討論了數位管道的一些可能的推出問題，但假設這些問題現在已經過去了，也許超出了這個範圍，你是否開始看到你對你的首選所做的改變有一些吸引力？

Or there are there any lessons you've learned maybe positive proof points on the things that you've changed and some early progress that you're seeing there?

或者你學到了什麼教訓，也許是你已經改變的事情的積極證據，以及你在那裡看到的一些早期進展？

Yes. Good question. Um, you learn something new every day on the on this front, which is one of the things that we're very pleased about. So I would say when I looked at the at the quarter, we started we started in the PO. a year ago, but beginning some of these go to market, which includes a total, we revised up marketing and sales technology stack implementation.

是的。 好問題。 嗯，你每天都會在這方面學到一些新東西，這是我們非常高興的事情之一。 所以我想說，當我查看本季的情況時，我們從採購訂單開始。一年前，當其中一些產品開始進入市場（包括總計）時，我們修改了行銷和銷售技術堆疊的實施。

So think about the margin story. Bob just told been delivering these margins while investing significantly in preparing for the post-pandemic world. So why interest rates were going up and and we were having the benefit of the RTC., we have been putting money into the business to prepare for what we knew was coming.

所以想想保證金的故事。 鮑伯剛剛告訴我們，我們要在實現這些利潤的同時進行大量投資，為疫情後的世界做準備。 那麼，為什麼利率會上升，而且我們受益於 RTC。

And so I'm most pleased in the quarter with the results that we're seeing from these numerous investments that we proved in the PO. that we've now extended across all of our market segments. But we've changed our marketing approach.

因此，我對本季最滿意的是我們從採購訂單中證明的大量投資中看到的結果。我們現在已將其擴展到所有細分市場。 但我們改變了行銷方式。

We changed our sales technology stack on it. We're exceeding our expectations in these new go-to-market teams. We've put together, we've refined our segmentation on, and we're going to continue to refine that. one of the things that we're doing digitally, collecting all of our interactions, and we're working on a daily basis about what's resonating with our clients.

我們改變了我們的銷售技術堆疊。 我們對這些新的市場推廣團隊的表現超出了我們的預期。 我們已經整合，我們已經完善了我們的細分，並且我們將繼續完善它。 這是我們以數位方式做的事情之一，收集我們所有的互動，我們每天都在努力尋找能引起客戶共鳴的內容。

And Howard sales teams are executing. So I'm very pleased with the execution that go to part go-to-market transformation team's been working on. When you think about that, it's really about lead retooling and reach training will over 3,000 salesforce in the marketplace.

霍華德銷售團隊正在執行。 因此，我對市場推廣轉型團隊一直致力於的執行工作感到非常滿意。 當您想到這一點時，您會發現這實際上涉及到市場上 3,000 多名銷售人員的領導重組和培訓。

And we've actually increased our segmentation. And so well, I think the question was asked earlier about a little bit more in the bid at the upper market. We have a lot of confidence we can do that. We've actually added hundreds in that particular segment.

我們實際上增加了細分。 好吧，我認為這個問題早些時候就被問到了關於高端市場出價的更多內容。 我們非常有信心能夠做到這一點。 實際上，我們在該特定細分市場中添加了數百個。

And given the results that we've seen in the first quarter, any go to market pilots that we've done across the various other segments, we are actually accelerating sales hiring. So we're going into the selling season, not only fully staffed, but given the results we've had, we're going to be accelerating accelerating into this new go-to-market strategy.

考慮到我們在第一季看到的結果，以及我們在其他各個領域所做的任何進入市場試點，我們實際上正在加速銷售招募。 因此，我們即將進入銷售季節，不僅人員配備齊全，而且考慮到我們所取得的成果，我們將加速實施這項新的上市策略。

Ramsey El-Assal, Barclays.

拉姆齊·阿薩爾，巴克萊銀行。

This is Alan on for Ramsey. I appreciate you taking our question this morning. You just touched on kind of your sales team and wanted to get an update on sort of the growth drivers, which within management solutions.

這是拉姆齊的艾倫。 感謝您今天早上回答我們的問題。 您剛剛談到了您的銷售團隊，並希望了解管理解決方案中的成長動力的最新情況。

Just wondering if the focus has shifted a bit from new client wins to further penetration in your existing client base with the additional HCM services, any of your expectations going forward with, given all the new product rollouts switch to expect going into more one versus the other? Any insight there would be helpful. Thanks.

只是想知道重點是否已經從贏得新客戶轉向透過額外的 HCM 服務進一步滲透現有客戶群，考慮到所有新產品的推出都轉向期望進入更多產品，您對未來有何期望其他？ 任何見解都會有幫助。 謝謝。

Former hasn't changed. It's a grow clients drive further penetration of new products continue to innovate.

以前的沒變。 這是客戶不斷成長推動新產品不斷創新的進一步滲透。

We have more products to drive into the client base and continue to provide value to our clients that we have pricing, pricing of capacity, the ability to pass on price on. And I would say that that's been Paychex's 52 year history of that.

我們有更多的產品可以進入客戶群，並繼續為我們的客戶提供價值，我們有定價、定價能力、傳遞價格的能力。 我想說 Paychex 已經 52 年的歷史了。

That's what we're going to continue to work against. Got it. And that just on cost of service revenues, you touch on that a bit early in the call. Just also interested on the benefits side, if for any increase in costs associated with the kind of the utilization in that kind of claims costs to any color there and kind of expectations going forward would be helpful as well.

這就是我們將繼續努力克服的問題。 知道了。 就服務收入成本而言，您在電話會議的早期就談到了這一點。 只是對好處方面也感興趣，如果與這種索賠中的使用類型相關的成本增加，對任何顏色的成本以及未來的期望也會有所幫助。

Thanks.

謝謝。

Yes. I'd just add to my my comment overall, I think what you're seeing there is cost being driven by on not so much higher claim, but really a worksite in player in higher insurance attachment that we see no over the last year. So worksite employee growth in the PEO. was strong.

是的。 我只是補充我的總體評論，我認為你所看到的成本是由沒有那麼高的索賠驅動的，但實際上是一個在去年我們沒有看到的更高保險附件的玩家的工作場所。 因此，PEO 中的工作場所員工成長。很堅強。

That's what we're focused on is driving a worksite employee player growth. And I think when you do that, coupled with the insurance attachment, you get some wage inflation and myself inflation, then you're able to put together a PO business that's growing in the double digit range like like ours did this quarter and has for the past couple of quarters. And that's what's really driving the higher cost is just the performance of the business, not so much for unfavorable claims history here or anything like that. Understood and appreciate the clarity there.

我們關注的重點是推動工作場所員工玩家的成長。 我認為，當你這樣做時，再加上保險附件，你會得到一些工資通膨和我自己的通膨，然後你就能夠將PO 業務放在一起，以兩位數的速度增長，就像我們本季度所做的那樣，並且已經過去幾個季度。 真正推動成本上升的原因只是業務績效，而不是不利的索賠歷史或類似的事情。 理解並欣賞那裡的清晰度。

Kartik Mehta, Northcoast Research.

Kartik Mehta，北海岸研究中心。

Hey, good morning, John and Bob Fitzgerald, heart and say just get your thoughts on acquisitions versus buyback. Are you guys talked a lot about some of the new products you have the card chain chip of what businesses want and need.

嘿，早安，約翰·菲茨杰拉德和鮑勃·菲茨杰拉德，請聽聽你們對收購與回購的看法。 你們談論了很多關於企業想要和需要的卡鏈晶片的一些新產品。

And so I'm wondering, you know, as you look look forward, just your thoughts on maybe what you're trying to prioritize and Palm prior you might to allocate capital.

所以我想知道，當你展望未來時，你對可能要優先考慮的事情以及 Palm 在你可能分配資本之前的想法。

Yes. I would say kind of things to thanks for your question has to do well on. I wouldn't say that we are constantly and have always been looking at. We talked about the growth formula grower clients, increase our product penetration will provide value so that we can get up a copper price for what we deliver for our clients and then you tuck in inorganic growth on top of that. That's always been kind of what we've looked at.

是的。 我想說一些感謝你的問題一定做得很好。 我不會說我們一直在關注。 我們討論了種植者客戶的成長公式，提高我們的產品滲透率將提供價值，這樣我們就可以提高為客戶提供的銅價，然後您可以在此基礎上進行無機增長。 這一直是我們所關注的。

I think we thought we saw some time the market, I would say over the last 12 months has changed a little more rational of what we're seeing. I would tell you that our pipeline is will, but at this point in time, and I think there's more rationality coming in to the industry at this point in time. It's in terms of a willingness to look at potential combinations.

我想我們認為我們看到市場在過去 12 個月裡變得比我們所看到的更加理性了一些。 我想告訴你，我們的管道是願意的，但在這個時間點，我認為在這個時間點，這個行業出現了更多的理性。 這是因為願意考慮潛在的組合。

I just I can just see it in our pipeline and the way deals are coming together for what we're looking at hasn't really changed. We're looking at opportunities there that scale in our existing markets where we can drive our advisory and really the full breadth of our services number. We're just not a tech company with a ton of other products and services that we can bring up to those markets.

我只是可以在我們的管道中看到它，我們所關注的交易的方式並沒有真正改變。 我們正在尋找在現有市場中擴大規模的機會，在那裡我們可以推動我們的諮詢以及真正全面的服務數量。 我們並不是一家可以向這些市場推出大量其他產品和服務的科技公司。

We're looking for opportunities to expand our product suite on Salazar, which we can continue to add products and services that we can sell to all of our clients. And we're continually looking at digital capabilities on where we can add that into our business. And then I was looking for adjacent growth platforms. So all of those right there. What I told you, I would have said three years ago, we had a lot of interest in prices were unreasonably high for the value.

我們正在尋找機會擴展我們在 Salazar 上的產品套件，我們可以繼續添加可銷售給所有客戶的產品和服務。 我們不斷研究數位化能力，以便將其添加到我們的業務中。 然後我一直在尋找相鄰的成長平台。 所以所有這些都在那裡。 我告訴過你的是，三年前我會說，我們對相對於價值而言不合理的高價非常感興趣。

And we're very, as you know, very concise derivative in looking at deals that we're going to do. What I've seen over the last two years is more rationality last 12 months, even more rationality. And now I think on one more individuals are willing to have serious conversations.

如你所知，我們在研究我們將要做的交易時非常簡潔。 過去兩年我看到的是過去12個月更理性，甚至更理性。 現在我認為更多的人願意進行認真的對話。

And so again, we're out there, we're looking, but we're going to make sure it's a smart deal on one. It is going to come the accretive for our shareholders long-term. And just one follow-up maybe, Bob, I think when you initially gave guidance, you anticipated it kind of five pays per control. Seems like things are going a little bit better than you expected.

再說一次，我們在那裡，我們正在尋找，但我們將確保這是一筆明智的交易。 從長遠來看，這將為我們的股東帶來增值。 也許只有一個後續行動，鮑勃，我想當你最初提供指導時，你預計每個控制項會支付五筆費用。 看來事情進展得比你預想的要好一些。

And just one follow-up maybe, Bob, I think when you initially gave guidance, you anticipated it kind of five pays per control. Seems like things are going a little bit better than you expected. Any thoughts in terms of. Okay.

也許只有一個後續行動，鮑勃，我想當你最初提供指導時，你預計每個控制項會支付五筆費用。看來事情進展得比你預想的要好一些。任何方面的想法。 好的。

As you look out of those expectation need to be changed or maybe feel better about the guidance for pays per control? Yes, I would say it's more the latter card. We feel better. Again, we it wasn't assumed in the plan to be a big contributor to growth.

當您看到這些預期需要改變時，或者可能對按控制付費的指導感覺更好？ 是的，我想說的是後者更多。 我們感覺好多了。 同樣，我們在計劃中並沒有假設它會對成長做出重大貢獻。

We had it, I would say in the checks per client part of the business on the ATM side, we had assumed it was going to be flattish on a full-year basis in the trend. It's a little bit more positive there. So that I think that gives us confidence in the guide. And again, we're maintaining the guide in the face of some interest rate headwinds on the top line as well.

我們擁有它，我想說的是，在 ATM 業務的每個客戶檢查部分中，我們假設全年趨勢將持平。 那裡的情況比較積極一些。 所以我認為這讓我們對指南充滿信心。 再一次，面對營收方面的一些利率阻力，我們仍維持這項指引。

And then when we look at our bigger pie and sizes, particularly our HR outsourcing models, we did assume a little bit of growth there in the plan. Again, not a huge contributor to growth, but certainly expected it to be positive. And it was slightly better than than than where we expected to be in Q1.

然後，當我們看到更大的蛋糕和規模，特別是我們的人力資源外包模式時，我們確實在計劃中假設了一點增長。 同樣，這並不是對成長的巨大貢獻，但肯定會是正面的。 它比我們在第一季的預期略好。

And I think that gives us confidence in kind of maintaining the guide in where we're at. But again, these neither one of them were big contributors to revenue growth on a full-year basis. Thanks, Rob. John, I appreciate it. Yes.

我認為這讓我們有信心將指南維持在我們所處的位置。 但同樣，這些都不是全年營收成長的主要貢獻者。 謝謝，羅布。 約翰，我很感激。 是的。

Jason Kupferberg, Bank of America.

賈森‧庫普弗伯格，美國銀行。

Thanks, guys. Good morning. I wanted to start on the management solution. You give us a sense of what you expect for our second quarter growth there. I know you will still have the ERTC. headwind, but you won't have the processing day headwind. And then just any comments on visibility and the second half accelerate operation in place and the guide, it doesn't sound like you're assuming any improvement in underlying performance, but just any other color on that aspect, TAP. Thanks.

謝謝，夥計們。 早安. 我想從管理解決方案開始。 您讓我們了解了您對第二季成長的預期。 我知道您仍然擁有 ERTC。逆風，但你不會有處理日的逆風。 然後，只要對可見性和後半部分加速到位和指南的操作進行任何評論，聽起來您並沒有假設基礎性能有任何改進，而是在這方面有任何其他顏色，TAP。 謝謝。

Yes, Jason, I mean, I think you might have asked me a similar question last quarter. I think it could be wrong, but I don't want to get into giving quarterly guidance, particularly on the splits. We're trying to maintain our approach, which is to provide annual guidance and provide updates on a quarterly. I tried to give you guys a little bit of color on the next quarter to help you out with your model. But it but I don't want to get into the specifics.

是的，傑森，我的意思是，我想你上個季度可能問過我類似的問題。 我認為這可能是錯誤的，但我不想提供季度指導，特別是在拆分方面。 我們正在努力維持我們的方法，即提供年度指導並每季提供更新。 我試著在下個季度為你們提供一些色彩，以幫助你們完善模型。 但我不想討論具體細節。

As I mentioned, we'd expect that Q2 to be 4% to 5% from the headwind is in management solutions, ERTC. it some 200 basis points and total revenue. So I'd like to come to stick to that. And again, I'll just reiterate my prior comments as it relates to the acceleration in the back half.

正如我所提到的，我們預計第二季將因管理解決方案 ERTC 的逆風而成長 4% 至 5%。它大約有 200 個基點和總收入。 所以我想堅持這一點。 再次，我將重申我先前的評論，因為它與後半段的加速有關。

When you look at the gating by quarter and you exclude the RTC. headwind, the gating by quarter from a gross standpoint is very consistent quarter to quarter and is in line with kind of where we were exiting and last year, which again was an acceleration versus where we were in the first half of the business.

當您按季度查看門控時，您會排除 RTC。逆風，從總體角度來看，每個季度的門控在每個季度都非常一致，並且與我們退出時和去年的情況一致，這與我們上半年業務的情況相比又是一個加速。

So again, that we feel like we've got a lot of positive momentum in the business, lots of great things to talk about certainly from new product and solution introductions that have rolled out here in the last month or so. And we expect that momentum to continue to the balance of the acceleration. I assumed it's really the comparison here that makes it look like the growth accelerates in the back half.

再說一次，我們覺得我們的業務有很多積極的動力，有很多值得談論的好事情，當然來自上個月左右推出的新產品和解決方案的介紹。 我們預計這種勢頭將繼續加速平衡。 我認為這確實是這裡的比較，使它看起來像是後半段的成長加速。

Okay, understood. Just on operating margins, I think you came in above the guide for the first quarter. Were there any expense timing, the dynamics there are other factors?

好的，明白了。 僅就營業利潤率而言，我認為您第一季的業績超出了指導值。 有沒有費用時間、動態還有其他因素嗎？

I mean, I know you're in the full year outlook yet. Yes, a couple of things. I mean, rent revenue was a little bit favorable to our expectations so that that certainly helped and we put together expenses, we have investments that we want to make your headcount that we're adding.

我的意思是，我知道您還處於全年展望。 是的，有幾件事。 我的意思是，租金收入對我們的預期有點有利，因此這肯定有所幫助，我們將支出放在一起，我們希望透過投資來增加我們增加的員工人數。

And maybe that takes us a little bit longer than what we assumed in the plan, like we thought we were going to get in the 1st month and it takes a little bit of a little bit longer. So I'd say we had a little bit of expense favorability a little bit of revenue favorability in those two things combined will provide a little bit better margin than what we had guided to. Okay.

也許這比我們在計劃中假設的時間要長一點，就像我們認為我們會在第一個月達到的那樣，而且需要的時間會稍微長一點。 因此，我想說，在這兩件事上，我們有一點費用優惠和一點收入優惠，這將提供比我們指導的更好的利潤率。 好的。

Scott Wurtzel, Wolfe Research.

史考特‧沃策爾，沃爾夫研究中心。

Hi, guys. Thanks for your answer. Anything obviously, guidance implies a similar year over year change, I guess, relative to what you reported in first quarter, but we have a little bit of improving our better ERTC. headwinds. Just wondering if there's any kind of items we should think about. And with respect to the two key margin understand we're getting to the selling season, if there's any items around that or others that we should contemplating?

嗨，大家好。 感謝您的回答。 顯然，我想，相對於您第一季報告的情況，指導意味著類似的同比變化，但我們有一點改進我們更好的 ERTC。逆風。 只是想知道是否有任何我們應該考慮的事項。 關於兩個關鍵利潤，我們即將進入銷售季節，是否有任何相關項目或其他項目值得我們考慮？

Yes, I think if you look at the beginning of the margin that you know throughout the year, it's not exactly the same quarter by quarter. I think someone had referenced is higher in the back half is typically higher in Q3 because of some of the year end processing that is high margin that occurs in that quarter. But I would say nothing specific to call out that other than you know, the guide implies a slight contraction versus prior year. But again, that's really coming from the headwind from ERTC.

是的，我認為如果你看看全年的利潤率，你會發現每季的利潤率並不完全相同。 我認為有人提到後半段較高，通常在第三季度較高，因為該季度發生的一些年終處理利潤率較高。 但我不會說任何具體的內容來指出，除了你知道的之外，該指南暗示與前一年相比略有收縮。 但同樣，這確實是來自 ERTC 的逆風。

When you exclude that, you're seeing good margin and you know, we would expect to see good margin expansion in Q2 between 150 to 200 basis points that I think if you did the math, that's what you would get to a do exclude the on the RTC headwind, but nothing specific to call out. Yes, we're going into selling season want to make sure we're gearing up.

當你排除這一點時，你會看到良好的利潤率，你知道，我們預計第二季的利潤率會在150 到200 個基點之間良好擴張，我認為如果你做了數學計算，這就是你會得到的排除RTC 的逆風，但沒有什麼具體值得指出的。 是的，我們即將進入銷售季節，希望確保我們做好準備。

And we feel like we're in a good position to fully staffed and making the investments that we're going to have a successful. So we can have successful selling season.

我們覺得我們處於有利的位置，可以配備充足的人員，並進行我們將取得成功的投資。 這樣我們就能擁有成功的銷售季節。

Got it. And then just as a just a follow-up and just looking at that presentation, you called out a high single-digit growth in HR outsourcing, WSEs mature seems pretty impressive. And I just want to maybe understand the drivers there are a little bit better. And if you can talk about maybe some of the growth that you saw a national business during the quarter would be very helpful.

知道了。 然後，作為一個後續行動，看看該演示文稿，您指出人力資源外包實現了高個位數增長，WSE 的成熟似乎相當令人印象深刻。 我只是想更了解那裡的司機。 如果您能談談您在本季看到的全國性業務的一些成長，也許會非常有幫助。

Yes, yes, I would I would say that's what's driving that is the power of the value proposition. Like I said, I don't think what one the last three years in our industry is going to be what is going to win in the next three years. And I think it's not about the bells and whistles. And I think when you look at our comprehensive HR outsourcing offering in the assistant, so we provide that beyond just the tech play. And that seems to be resonating.

是的，是的，我想說，這就是價值主張的力量。 就像我說的，我不認為我們這個行業過去三年的表現會成為未來三年的勝利。 我認為這與花哨的東西無關。 我認為，當你看到我們在助理中提供的全面人力資源外包服務時，我們提供的不僅僅是技術方面的服務。 這似乎引起了共鳴。

And I do think the outsourcing message of IPOs once again, what's holding back. And you know, with this a page where a and so it was a little more tilted Dempsey deal. We now see that come back to the P value proposition. And the team has done a great job of putting together a powerful set of, I think, benefit offerings and and execution in the PEO market. So that that's been what's driving that. It is important.

我確實認為首次公開募股的外包資訊再次阻礙了我們。 你知道，在這個頁面上，所以這是一個更傾斜的登普西交易。 現在我們回到 P 值主張。 我認為，團隊在 PEO 市場上整合了一套強大的福利產品和執行方面做得非常出色。 這就是推動這一趨勢的原因。 這很重要。

Thanks. Is that as there are no further questions at this time. Okay. Well, listen, thanks, everyone. At this point, we're going to close the call. If you're interested in a replay of the webcast, it will be archived for approximately 90 days. Again, I want to thank you for your interest in Paychex and hope everyone has a great day. Same here. That concludes today's first quarter 2025 Paychex Earnings Conference Call. Have a wonderful day.

謝謝。 是這樣嗎，目前沒有其他問題了。 好的。 嗯，聽著，謝謝大家。 此時，我們將結束通話。 如果您有興趣重播該網路廣播，則該網路廣播將存檔約 90 天。 我再次感謝您對 Paychex 的興趣，並希望每個人都有愉快的一天。 同樣在這裡。 今天的 2025 年第一季 Paychex 收益電話會議到此結束。 祝你有美好的一天。