ADP - Earnings call transcript Q2 2018 | Automatic Data Processing, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. My name is Christine, and I will be your conference operator. At this time, I would like to welcome everyone to ADP’s Second Quarter Fiscal 2018 Earnings Call. I would like to inform you that this conference is being recorded. And all lines have been placed on mute to prevent any background noise. there a remarks, session. speakers’ the will question-and-answer be After [Operator you. Instructions] Thank the like to now would conference to I turn over Mr. Christian Greyenbuhl, Vice President, Investor Relations. ahead. go Please

Christian Greyenbuhl

Thank and Rodriguez, for for fiscal Siegmund, ADP’s ADP’s everyone. joining morning, and Chief Vice us and and Financial webcast. and Christian earnings President here XXXX Christy, Jan Officer; I’m Carlos ADP’s Relations, President, quarter Officer. This with our today Chief second Executive Greyenbuhl, call Investor you, is good Thank you

will reference believe in we comparable non-GAAP website. financial to During A the we today, our is these our their certain measures, which and Relations in measures supplemental to investors. included call release GAAP measures to useful slides be earnings Investor non-GAAP on reconciliation of financial our

to review that contain everyone the begins, findings Before from results such, today’s to events, to like our to Carlos differ statements materially SEC forward-looking additional that some on expectations. and I’d you our actual will involve encourage future risk cause as refer current factors that information could with for We call risks. remind

turn me Carlos. call let Now over the to

Carlos Rodriguez

in you, our This thank Christian, billion, for interest all our XXXX. morning, this fiscal reported Thank morning. XXXX your progress appreciate we’ve we of you made that $X.X call growth was reported in results fiscal second we We the up quarter joining with with first slightly This half and to ADP. X% X% revenue revenue and so organic. pleased above our are expectations, the far

lower fewer $X.XX from share earnings share diluted to effective shares and rate a per adjusted tax Our and per outstanding. XX% benefited grew

through are recently the and And more diligently from detail including the this grow-over XXXX strong Jobs additional with take which overall some enacted shortly, We continue results, we our Tax second you our on Act. will difficult Jan quarter work information to in fiscal quarter overcome performance. pleased to Cuts

on demanding payment of dynamic of more, functionality the been More DNA it delivered the of is to the execution strategy. operational efforts. of workforce our help insights our world. HCM the always and by evolving our we and I’d strategy rapidly innovation the worker is to of further continue access Innovating of see ease to cloud a needs the and the I strategy workers the a highlights, app, our core solutions, our data greater, our continues clear is digital very and convenience meet Before be at mobile our focus in center of increasingly, like that has it with clients to of offerings the flexible solutions tomorrow. the Whether optionality or, ADP offered at by our

with payroll clients, of very level and strengths, expansion we the recall of support you tax platform, with in ADP core HCM proprietary a our that our in acquisition, allows the services. for only this provider seamless acquisition operational we of client freelance. continue thus, the also to and traditional payments Card with options digital and with to offerings. announced payroll needs further lives, and client efficiency interest workforce or their improve compelling broaden our engagement will became as to clients' evolving October, further the This pay digital flexible us they While Furthermore, Cash our will With Global expect our a their with opportunity be service such processing payment pleased was greater offering needs their flexible exciting enabling through payment experience. allow strengthened financial we our next-gen to platforms, Cash innovate and of are an announced we us acquisition Global recently digital our which the around that accounts Card,

so changing, work With of the world our are needs. clients'

global obligations. evolution center market, of cloud-based compliance large worker solutions. worker, WorkMarket leading a and this increasingly management of in build freelance have to or industry-leading the help solutions workforce. gig We solutions uniquely manage source talent specifically while provider them the maintain and management toward it comprehensive our and announced worker actively multinationals mind quo of And moving composition performance. we technology-based our differentiate studies to and continues grow, and expected engagements with economy growing With proud small- leading acquisition use believe work the with using for freelance the workers, to is is The and HCM offerings our medium-sized and X we compliance WorkMarket, to and the we our force important position. are expand with today’s the we XX% include having suggesting have Along we is evaluate gig solution of workers manage solutions innovative next order to and aiding be between entire majority and their vet pursued integrative the upmarket across are our on beyond lines, serving to continued allowing clients in strategy businesses, status going that them third-party these service the their already increase to some gig with that both with of demand. XX% in their the years, of freelance to positioned over to their believe labor workforce, this and and their the recently XX% mid at next-gen

freelance Cash receive already Global platform their solutions using addition, payments WorkMarket on In a the pay to card. Card workers permit

am just pace TMBC manage one acquisition flexibility payment reporting labor Global like entire the WorkMarket acquisition the compliance the talent with management and with robust management for is clients of ADP investments solutions way that across to with talent. flexible and adopted and monitoring are Acquisitions develop our demand way strategic WorkMarket space be any client. the last in work in strategic Our the Card, strategy to provider increasing of with fit that right sustainable will and pursuing market-leading needs I can pool. establishes of the their in in and mix that change believe and manage year’s first date to foster proud our innovation-focused people meet Cash keep to the of ADP as open growth. deliver insight progress We helping and HCM investment us with how of is worker organizations our clients combination a acquisitions freelance priorities, functionality, capabilities for approach to innovation, align that organically-driven with healthy

expectations. highlights, operational Now with to to retention, some of and progress our new like which show I’d cover both against bookings business stability and continue starting

new recurring sales revenues metric represents drive and to existing and annualized anticipated which a As clients. growth, a bookings that new ability to as from we business view reminder, demonstrates organic our

New for the quarter. business bookings grew X%

helping are for X% our We with growth, And to business progress bookings pleased with growth line as headcount our consequence, we a in the X% are our forecast our and product, investments expectations. in new fiscal are of from reaccelerate which maintaining XXXX.

we improvements pleased our in net with the service our on are We are promoter with the progress making continued scores. investments and

now our than clients left mid-market substantially have X% less with complete We upgrades to of and are migrate. our mid-market

with this loss to declined We on Employer locations. points, see the footprint XX new basis retention our this basis with onboarding Services client of by to points. our real quarter’s metrics. slightly an strategic plans our while volatility We And given our with metric, improving XX in in course associate consolidate quarterly retention trend pleased our our remain and improvement remain across year-to-date we estate continue

have transfer our we in deliver Cross-functional service our offer robust to and streamline best-in-class pressure service in teams continuing and these the associates. of despite organization. new career are a see to our calendar cost-efficient our clients centers, spectrum time, tools these proud both speed processes formed and infrastructure service As this knowledge clients deliverables. service we teams the these the among scale service opportunities of same we sites within and and manner. that comes benefits leveraging from new to year-end execution across us the I’m are service HCM to client of exceptional to At the our efforts allows service better the

surpassed as of XXX,XXX employee December moment XX PEO like I’d to the recognize to take worksite business, Now a the which mark.

private if States. ADP fact, employer, it second were TotalSource United independent employers the would among sector rank In currently an in

success outsourcing of which our market the with with growth, compliance-oriented demonstrates value the this We continued solutions. of pace and HR pleased are its broad-based, healthy in business'

half a We have in XXXX, accelerate to lot and first made continuing remain the on of remainder through of and we progress focused of the the year strategy change our beyond. executing of pace in against our

particularly am financial Jan to Before of associates, Companies the the review, I how over am call their especially the I note time. of to XXth the detailed list name see Admired this who us clients is our to place results. today want the solutions Fortune And for proud for of was proud I quarter because our magazine continued our commitment and with dedication the our a unwavering for I and how I us Most turn to our over review further turn work for second associates of call provide of testament now a confidence to to tomorrow. it stakeholders in tirelessly I’ll best the that, to Jan to and proud

Jan Siegmund

to certain press items non-GAAP year measures much, of items quarter in will and release In impact as description my be year non-GAAP measures the website. and slides fiscal of our follow, XXXX of Thank second of morning’s these fiscal can you quarter found everyone. I in well on the second reconciliation Carlos, XXXX. Investor excludes good referencing commentary this as be morning, that very A and the Relations of the in the supplemental these

taxes, approximately pretax X EBIT, it to impact the CHSA to second our points quarter X% and million. of fiscal businesses, reported basis. pressure to FX. basis, of declined and million in ADP XXXX and X% U.S. from and due year This on gain CHSA well to COBRA related prior our includes foreign benefit the interest related in mentioned, And earnings acquisitions, grew better net a point the fiscal basis, see as the constant-dollar pressure basis on of second $XX a year was COBRA disposition approximately billion, increased $X.X XX.X% by in continue tax from adjusted Carlos businesses year X% $XXX X% On reform or percentage of revenues or points last EBIT benefit we quarter onetime X increased net tax from the though pass-throughs largely quarter quarter. a decreased a of XXX of XXXX approximately second compared before As and earnings as acquisitions. Adjusted than from second growth to reported quarter expectations, stronger-than-anticipated our year’s Adjusted sale decrease margin slightly offset corporate about included of the currency. to

financial long-term into effective believe these compared financial year system, constant-dollar we our and tax a as a tax repeal investments domestic basis, includes including deductibility December federal benefits compensation. of During The distribution, diluted grew – on with the to a a and in the per the the among us provisions, and as XX% to reduction Tax objective. strategic and fewer XXXX service to production share executive of Cuts quarter, we corporate to the rate long-term XX% of ago. significant benefited XXX other continue have from earnings Adjusted rate well limitations changes on tax activities the new Jobs Act $X.XX. deduction U.S. shares a maintained innovation, corporate of and enactment from deliver and, Section lower helping our investments XX% outstanding in against XX%

blended was became on positively lower offset credits. Our the benefit and XX.X%, stock-based adjusted effective XX.X% year. beginning to tax by impacted for our This tax fiscal of at rate of which access compensation by tax foreign a rate partially was quarter adjustments effective statutory benefits the of

results accumulated and the earnings liabilities make continued benefit which foreign our $XX reminder, tax tax a allowance adjusted benefit to on a progress this transition of reevaluation net of tax million onetime and the assets on Overall, valuation a for of good tax As credits. deferred exclude have items, approximately we encompass and overseas quarter.

the quarter, take before year In segment, on XXXX revenues Employer our X% updated Let moving me fiscal X% to outlook. organic. you our through results segment for grew our now Services

the points in from continued in growth This acceleration worksite in This in growth was quarter. as work included this approximately multinational decline from of to margin per volumes our points the of we metric second second growth the our the about health our pass-throughs performance in FX. the grew the I’m while, points both our U.S. decreased impact to higher resulting and of XX of growth to primary businesses. the from in was to operations in in revenue in – of of the quarter, acquisitions control growth the Carlos PEO payroll Our Average Employer higher U.S., This compared to care accelerate client by performance was year. driven employees pleased solid growing average the and reported worksite payrolls quarter. average basis higher-than-expected see and in international with quarter. X.X% bonus and we year continued growth ago. revenues XX from pace the Outside average employees double-digit balances same-store pass-through the of from driven basis for the higher revenue basis driver XX% XXX,XXX. a quarter, X% a grew revenues margins this remainder mentioned, Services with in December, continue PEO’s in premiums acceleration quarter pays change XX% worksite grew with for XX pressure the segments activity. the fund of by

Before to highlight this guidance. results I of in updated XXXX additional be regarding business disclose to are WorkMarket. not – segment revenue will acquisition fiscal our our detail Employer expected of wanted materially discuss Services outlook, our and operations impact included some the I year The of the

acquisition from anticipate have year, this fiscal into second acquisition-related costs. to pressure we our anticipate some impacts these also Cash future synergies Card, operational we Accordingly, we Global slight and this updated by outlook. of While margins acquisition driven our year XXXX factored largely quarter

mind, moment through I revised take in walk to outlook items now these With will you. a with our

growth full $X.XX the of sold billion we are First, XXXX. X% guidance fiscal in to our X% year year as Carlos bookings on mentioned business new earlier, reaffirming

XX% X% XX%. during the revenues to to higher-than-anticipated have first to our prior we half our to the With XX% forecast compared consolidated year XXXX, both our of in our of forecast revenue to pass-through growth to PEO to revenue fiscal forecast X%, updated XX% growth X% and from X%

remains to Our Employer Services X% of X% unchanged. revenue guidance

be our growth also strategy of slides is from $XX to impact $XX are million now million. forecast to in million $XX expected total Relations increase We of with forecast now $XX investment fund fund extended million to details our compared to interest client $XX revenues this increase Investor to can $XX found of million The compared be up website. The client expecting prior to $XX increase in to supplemental forecasted prior million on million the $XX the million. the

And be in is XX.X% XX% XX fiscal to basis forecasted approximately now and the to to from also XX contraction year now tax to of to includes lap Services As effective from the basis previously we to of forecast we revenues, beyond progresses. XX costs corporate pressure further equity basis of a forecast from margin to Adjusting year impact, compared to points XX.X%. and growth share year our compared approximately up margins compared continue tax primarily to a consolidated now to basis does year a XX compensation anticipated easier to we points, adjusted basis At to of pass-through pressure, X%. pass-through points. our margin stronger to anticipate to now the updated points level, benefits Accordingly, FX. our of contemplate XXXX, our investments in XXXX not Overall, compares anticipate XX This of dilution we the any of per our we flat continue finish as be the in attributable plans. anticipate as due growth to result XX to make the contract our anticipate Employer an previous basis prior segment XX.X% to diluted fiscal PEO related forecast begin rate expect anticipated XX fiscal federal EBIT in earnings points have expect share of X% This down we of to U.S. buybacks statutory to to fiscal year reform, points we XX adjusted XX% and margin adjusted XXXX. corporate benefit XX.X% acquisitions, forecast, which for the XXXX. our lower blended compared forecasted rate contraction XX of

intent excess to to continue market our conditions. remains it However, subject shareholders, return to cash to

Q&A, Before allocation cash on acquisitions shareholders and touch through the moving briefly business, capital in in that pursuing our involves to and would to reinvesting to share order. buybacks like I dividends which long-standing returning strategy,

currently this beneficiaries As while effective participate an interpretations financial forward, I earlier, anticipate possible have excluding rate to XX.X% any remain tax IRS return one our – XX% currently change XXXX. And we strong of to additional total rate which are XXXX. flexibility us shareholder U.S. anticipate said future And performance year while Clearly, fiscal effective we adjusted year delivered reform. of new XX% things, we or may items priorities, of the tax unchanged. shareholders, offers onetime for a fiscal tax corporate of going beyond our guidance

So your take it to operator with over that, turn I will to questions. the

Operator

Thank you. first of will [Operator Kupferberg our question Merrill We from America the line Jason Bank of Instructions] Lynch. of take

open. is line Your

Jason Kupferberg

wanted to a of than obviously, year-over-year can Thanks move perhaps the mean, PEO if also half. as what wanted margins. comment past there? little comment, the you’re we are about far bit as in second if floating underlying I accurate and trends measure the side start to like on modest looks year-over-year talked being profitability, – trend margins you’re the on a more exclude guys, outlook, underlying increases in PEO pass-throughs this see in I you the I first you’ve it this seeing with good the the question growing some going But the from just to half pass-throughs expected. in with a margin morning. the on in of the XXXX are faster to you declines understandable still

Carlos Rodriguez

think maybe I other maybe think some I Because didn’t can of happening positive is what’s add couple Jan think really kind trends. in I the specifics. factor in factor understand to that – But which a general, make you have answer I’ll more do the covers. mention, to you comments, then of underneath the

besides PEO a you couple of putting and holding for must and little we full-year have as the positive so EPS are can acquisitions So pretty pass-throughs, to that forecast see, underlying of bit do if pressure. And margins are our forth. now a we trend be the

basis Services the which think sense the And somewhere I of to I think was it trends you able that I it underlying as most acquisitions was fact pressure, of note order segment, it between that think that Employer XX in before I think some the and and important comparisons I are think and grow-overs. FX, along of we’re acquisitions absorb gives to mentioned is previously this So I we’ve the positive. was to that is the that think related said some points

recurring a gives believe, quarter, and it year’s as sense growth EPS. had, I around reminder, nature was that we our last you the the Just which year have around somewhere and EBIT ACA, the size, issues I that of a gave our revenue on because lapped company business we us results were before revenues the of the last of of expenses. XX% tailwind in result some And think second those

little now little I for talking So going this forward it think to bit what get clear a the be for – to And we’ve more a happening. bit it about is starts been quarters. easier eight

Jan of a So couple I’ll comments. maybe add let

Jan Siegmund

Yes.

haven’t calculate acquisitions a XX% that we clearly guidance year. think did you And of from to pressure, pressure, pressure. at kind were the XX like historically, pressure our bps XX XXX we anticipated, of from pass-through you very if XXX, out if of full-year like Jason, – to amounts bps you it if So beginning ADP-wide, about the the strong comes

is rest the So operational scale.

of leaped. see our year-plus now benefit we’re initiatives result. that a benefit, launched in of going And ago to the are some we that And increased

So consistent. last entire think system. out there’s operations, anticipate can the operational really the fairly goes scale specific is, I the across year. I we function that because And not There’s across that really trend business a point

Carlos Rodriguez

on easier thing two. really and ES think is think really last focus It’s what’s PEO which going – there’s to focus I is for, fairly understand. probably add one to do should all only I There’s And on that separately. would we I straightforward forward,

well is the the And color ES, is ahead which of that you pass-throughs. not pace. excluding around and grew from what can really if of you excluding So margin PEO to be the giving additional a your only expectations issue, and we’re than so clear, at the the profitability you and anticipated. take at the and giving about ES creates are very call And and ahead grew information of that here figure a acquisitions we’re forth, you out also a transparent the revenues, issue. separately, issue if our pass-throughs, But about, look in the processing expectations. And faster FX probably PEO, than is we very pressure pass-throughs everyone the healthy which we negative PEO, revenues that PEO, the grew faster performing

of And necessarily so is underlying both the shouldn’t segments, performing us the and the well. I mix mathematical of strength think, get you business. that way get And understanding the are in

Jason Kupferberg

all that’s helpful. Okay,

follow-up a Obviously, quarter. recovery the bookings. see good to Just in there second some quick fiscal on

somewhere second So to to the I easier. deliver, full-year get in Obviously, achieve high half the you in forecast. the single-digit range comps the need guess,

the We’re selling now key past more or season. less

directionally? visibility sense to provide like target see ago, on that X% to to visibility Thanks. you January might at characterize least be trended X% you able just can that any including on the have looked compared how wanted if might affirmed I a the So quarter what to bookings

Carlos Rodriguez

on our guess, what wouldn’t to we our, I forward, know, maintaining call quarter. happened really bookings going you As last of the about X% X%. you where And really is comment to our – talk have

time, this one and at the and at are is week one time. able be of obviously, a unknown – at a the deliver. So revenue. you recurring that that most an there’s unknown. lot there’s that bookings Bookings I But a are always, as And give the – month of business rest think always a have numbers some confidence sense to we’ll day time, we number, one would

the product, those see just – comments, growth think was But we��re ahead will in things to our of I the some to we’ve expectations. growth wait additions for results. It mentioned as we that our and you strong. was us And had, have confidence. like the X% headcount So give

And business is feels just – new that highest So second ever number quarter that feels the out bookings also it I’ll the just happens good. it we’ve so had. point that

it’s do. So But a think, very sales that’s, our – lot think still I It’s I to to our to force turn of around. ability still of a really things work there’s testament a competitive market.

So I think the sales in our we good of several our in give wood lot also really to a results as of of multinational had really quarters. well, chop, have a front sure. good I of had downmarket, bit lot But additional we’ve in had last still results We us. for still to did quite And a our color. PEO, little just for also there’s think, you business. We

Operator

our Thank of Morgan. Tien-tsin question you. And JP next Huang is from

line open. is Your

Tien-tsin Huang

bookings good morning. good here. Hi,

what mean of pace et change curious couple of you and you can terms elaborate differently strategy, might what you mentioned do cetera. I’m times. in of on your exceeding if guess, guys there a maybe I Just, you

Carlos Rodriguez

scope unfortunately, a of brief Yes. It’s, But a had things because it’s good going Well, going on. we we’ve on. a lot things answer have beyond of lot question. probably a the always of

talking been I yet. about with of some some not – of we initiatives So think have we’ve you, all to probably number a of discussing have start which ready been that quite we’re

our You comments alignment about strategic our heard in initiatives.

fall which last really about year. the heard until hadn’t of our discussed up platforms, You’ve we next-gen

the margins our market very, to what they, much I in the we’re that with on. including think I think, couple for us pretty do, excited sales have on we you of are of going that acquisitions possibility things they we’ve other So a of the And gives short-term, our sense mentioned, had about distribution very a we existing well, slight our how call of wider pressure and opening as go force. significant terms going on some sense – in despite the of after that in terms in up

might And complete But just to the go I for mid-market. could our a so we’re than wish trying initiatives. done kind think of have I which we take to with list, in number have upgrades, and call. we down I but it the the longer move we’re almost of

our quickly a and – are do we’re as also go-to-market it’s as pace pace, We possible anticipate of because we to that the at trying right the going do accelerating recognize platforms. of that next-gen trying want accelerate our we to to We it investors for but competitive to well discussed stuff, talk tax, some as this the also of road went advantage which platform, in back-office next-gen create And to as our us. the on we is local we the as our back platform payroll including to fall.

just lot about excited a and fronts. trying of we’re a on of things happening, So number great accelerate to

Tien-tsin Huang

Great.

plus X% I you the Jan, for the little to Just was just balance surprised for quick that. follow-up maybe reform. tax – just prior. you big a on if year picture on see my impact just the Can on have of – sort the X% a growth question from

Jan Siegmund

Yes.

there accelerated than bit that. I for gotten it. We was Tien-tsin, about FX of balance appreciate for quarter haven’t long to in a and a little X%, percent time, The so growth a a more question balance the

was And excluding X% we is that to So balance actually. give growth the X.X% FX, guidance X%. the

So you effective year, tax fund see, client taxes, the a the represent balances, out balance lower a rate. about you we for total bit that remainder of growth. our And impacted are of X/X anticipate little by which point slower

attribute to see corporate bonus behavior to And outlook, we December, before which activity, tax the about that maybe so talk the corporate higher the did in – payment related I we is estimates reform.

but the also So balances. quarter relative run in the was rate, also payroll the growth we had inflated maybe for basically to performance the good slightly

X% in rates X that’s anticipate we the bit year, personal going think growth a the the impact for knows So on exactly uncertainty. little nobody have. on anticipated. rates, reform I don’t – There’s that corporate but the to and general to be that how tax is tax the kind – to of really X% potential could big of retail impact

includes – still this on we tax X% the is to lower to basically. hence, So had, X% rough better balances X% than is it the estimate X% but

Operator

Sachs. next you. Jim our from of Schneider question Goldman Thank And is

Your open. line is

Jim Schneider

terms wondering Thanks in business. clients? the the reform all? and/or tone what the seeing my was overall if it I either in generally sizes the for taking different that segments How business maybe the comment question. on economy, generally of and different could at tax of on translate bookings, the across is of And you’re the different their kind is on optimistic? if broader you environment speaking, of terms of client impact And feedback, into in speaking, does client

Carlos Rodriguez

have So we our of also trends. the anecdotal and to disbursement our of macro – the think we again, our and sales kind clients, geographic give think I our company because I on But and – of it’s guess, best focus of folks size size of like can I you some the force information. we

And so employment we inflation. do lot national lot have report we the and around obviously, And macro of a of look our trends. information, at a wage

things look very looks And we’re for important in are – directions. in to business – terms so I seems anecdotal stories, to new far, when of indicators, also, think drivers positive pretty and particularly of happy. the are all downmarket, and stories be everyone bankruptcies look you that us But very these at think, our Everyone But formations. like Small that anecdotal I in Business positive the confidence, the pointing optimism, looking into gives numbers are very us at business, of at, our We very potential than to which understand positive. around kind else rather getting all consumer some that at all because very the insight.

pointing a just economic growth. that are strong number underlying of So indicators to

to a been One is today. that’s surprised, I are Employment had I think of by Jan would this the where both in of second strength slightly surprise our think think And National the us, things employment positive we Report but we growth issued and still. strength, the say quarter underlying I pleased, the that I

our to positive we’re of bullish that So strong very, economy. advantage kind force able of very sales a still take and underlying what’s be will

tailwind ongoing kind beneficiaries Business hopefully this our business PEO Our Small especially and strong other should around and new be beneficiaries things downmarket – formation. should notwithstanding, business of optimism be of

positive. So all I think it’s

as they in up, factor which which a core that well, fluid us down business. I road, inflation that to is obviously we believe the think other is us. then that SEC and happen doesn’t to part extent the obviously extent our begin helps interest wage the business, to will into that rates picks maybe turn income to tick agrees it up are, of our and with also us help the The negative

again terms – or if it’s many fight you know, looked our in years hundred of last that just face seven absorbed the several in headwinds. way results. you business to dollars spent And operating years, in we ADP having – over million and And of As or the if and managed still part slightly either margin the of six margins overall at look improve to the maintain headwind the you at our we margin.

in perspective, $XX yield to So around now, QX was it we’re our X.X. looking around put balances XXXX, and the $XX are were balances our on little of Today, billion, around help. And of yield average just average and to bit is in billion. X.X%, forward balances our a the getting hopefully

So income quarter. or $XXX it obviously, – $XXX than margins this sense today and higher, or we million so it and million then. of are $XXX was – And a our had so million in they just then you back were gives about float

that’s looking here So economic that a we basis. kind are from another of forward to go-forward factor on benefiting

three but two the an last would – happen. that spent We environment it improvements does interest where perspective, balances we’re to some our like, improvement least finally, have expecting at healthier not look in from bring it I in it rates quite didn’t wage we’ve and that – will years with will our caution interest which But because that at happen, hopefully inflation, higher you only of or a rate growth rates. is

Jim Schneider

I you then a that one how know have of maybe for intend capital or tax more another. policy, reform? the reiterated a some benefits as little a reinvesting of use called And Thanks. portion the overall competitors your the can be way allocation of substantial bit you maybe but explicit you corporate about savings follow-up, to in

you you back that do So most reinvestment? you more of to would maybe Or intend CT what clarify would to shareholders? can

Carlos Rodriguez

stated what who’s contradicting Jan of Jan, I that accurate. think would CFO, risk I quite the is At say our actually

several long haven’t time not are a for We a We capital-constrained – been for never decades. we business.

So created our And companies created we’ve in been six different it’s or pressure pressure I ago. it other But communicated years maybe some XXXX, investing five guess, in and in situations. of bit are that. we’ve and business, a little fiscal year

because opportunity. has investment a situation, if in time. with for company and might for in And a have good growing rates and tax ADP it’s policy different economy, reform for specific lot constrained. you And in we’ve U.S. tax it’s differences ADP we not always think perhaps a our that’s multinational we capital- as of long well. rates markets So been in been good specifically But allocation hence, we’ve operations, manufacturer competitiveness, are for our to mode tax that – good lead welcome tax strategies. the But is capital

folks in having increases for some of in also, a fiscal anticipate and contributions, to increasing $XX the would tax And line. some next dividends modest wages some higher reform of like the pool from below Having we flow And hour. and things are XX perhaps And we should year. anticipate that. our who – our subject buybacks approval, so will merit-based to of said that flow at looking benefits bottom at we the the share are majority the the merit increases of an that, our charitable of board’s

line hear through, of bottom think, shareholders. that tax to, majority So is business. investments make in But think Jan should which delivered, I doing we the reform one is the the the you message flow are to think, some some I to I benefits should of ADP’s things our

Operator

our David is Thank with you. And Stifel. question Grossman from next

open. is line Your

David Grossman

Carlos, you. the least you right markets. at kind maybe three that but question perhaps strong seeing or the Thank Could of the relatively we’re per if isn’t stable in And to years. over has to you in the stayed control metric? underlying the your back about at, markets just that labor go last this look pays in relatively labor what make the particular between connection metric last macro

Carlos Rodriguez

Yes.

also I because you been the reflect that’s always think everything unemployment doesn’t rate – what has I the is consistent happening because, it’s know, it’s honestly, coming think down. as underemployment happens rate

into the pulled labor market, in create that that So government’s growth in reported get labor as the people reflected can underlying back rate. unemployment might not be

NER I are been into think hired doesn’t quarters. said, there have the each Our people month. account take and many strong number, pure for you as – how consistent, it’s just obviously, And trends getting number of a several

one rate. willing think not opinion, metric, for better I So pays labor and are data go growth, unless or on our you’re control proxies unemployment level the my focus per NER, deeper in just government’s to the in measuring underlying

So I don’t couple a probably know, comments. has of Jan

Jan Siegmund

hovers is the think delta believe, the I David, between and control X%, growth I around per national employment, our consistent. X.X% which fairly pays

So our type client has mix and a outgrown attract. we and tiny of historically bit, do to has clients the base company that economy with the

And this of of and labor rates. comments really the for of question types market. how in you his market the increasing I the growth And beginnings think pool long are wage a the strong. think that those So earlier see the in is tighter type indicating Carlos is I levels was U.S. trends providing of what labor

point, happen. could are at consistent But trends very far, overall consistent the and economy. so So with the that some our reports of

David Grossman

how point Or the those base? this numbers But sorry, basis last rate And year, I’ve growth of you the still eliminated that the historical points is one is divested about that forgotten – was just if of I’m this when benefits so, accounted in your are And consumer-directed for. clarification. Right. business base? to year? just headwind XXX from

Carlos Rodriguez

but a no It treatment discontinued ops back. That more – there’s is while changed – is correct. more, not no

help things of we standpoint an ins guys outs. making is that that and and so all both to from you sure understand you have that acquisition And the disposition with, one the of

And disposition. one last will it on four our point but lapping a our that basis, on growth rates. put And has so go-forward we just quarters numbers pressure not for finished it of the in about be

Jan Siegmund

revenue acceleration the growing driven see thing of by acceleration And the we you’ll growth out, by our is but part organic right. driven That’s acquisitions that two did. of also then we that incremental have that

the quarter activity impact in slightly M&A both was the So X%. below from

the And so out all in quarter. netted

David Grossman

Thanks very much.

Operator

you. Thank

Our next Eskelsen Wells of Rick is question Fargo. from

line Your is open.

Rick Eskelsen

bolt that for for you to on I you a could know I sort just while taking your if you’d to it Just where really simplifying environment? business. Thank circle you if morning. made these back tie my into these prior stressed of in comments you to business made just you comments a your wanted the you’ve of acquisitions, now about Carlos, the Did strategy. simplification. get prior earlier it the on? sense wondering question. can Good tie And to together acquisitions. I’m help about internal it point things things Did us your see sort

Carlos Rodriguez

It’s can a people convince of great question anything. again, themselves because,

front. this our I frankly, on a still strategy think to of that we that we around not a have do because, departure believe from simplification work is lot So

– business, Card have in clear the quick Global card a migrating did a platform. onto that Cash are but fairly acquisitions is plan these we case So we the of very have the Global Cash Card, around

that have hanging side to keep which thing So we into a as with clear the plan off we to very very a some and over integration, have and challenges a bought that with acquisition, is There’s the on sell it out no and separate time another benefit. not got us just clear business, what here a years. clear very go line maybe

we platform that a go-forward feel I distribution is the acquisition. And Cash Card. and of we shortly plan we our So after terms that use to Global in on And lot like efficiency, mentioned think gained basis. a innovation with

added very in. be already we added that that different a another product maybe cases, another that just acquired product in historically that basically So lineup some many from were in into we things would and, the business

or accumulated opening new big freelance contractors than as over which these acquisitions WorkMarket are we example, accumulating, and The fast-growing So payroll platforms assets up the rather administration a are entering independent us, years, really workers. with markets in upside several platforms benefits, that an category for existing is additional new just I guess, whole businesses. and acquisition several is

we a anything back now that we right X all to added came again, the going top that just complexity. on acknowledge years – on look about But and out could So what more the bookings we rationalization, our line that it could say incredibly X and business like in forward. life, or here from risk/reward investments. make the and these do they think our side to was definitely new And we’re growth right was excited

Rick Eskelsen

helpful. Very you. Thank

net Just talk that’s debt a is to sort due saw and net balance you. sheet the to with of balance for just and Unusual Thank potentially probably the you follow- position. payments. my up about – acquisition of staying in comfort a your some put know on timing I Jan, position. But sheet, guys. some you debt

Jan Siegmund

Yes.

with generates had I free short-term would think really, We that nothing few themselves. balance there’s receivable a that just We The nothing balance growth. our resolved had happen. cash on concern payment. accounts operating The movements on flow the earnings acquisition sheet in the fundamental business line sheet, movement us. the is

have operations. in which I’m rate gains the loss, observe to rate market embedded seeing on fund so now rates. a than and our client environment, since the the not these is, are basically, fund hold What anything. means, shifted And But portfolio you securities to all be lower you impact will maturity, see our the we portfolio rising our will to client in there no due what

have expected So of just That should our to mathematical the we assets on basically. fund that this client the sheet. for portion is be balance be

Carlos Rodriguez

exactly And think of did, that’s which our is I the do. think I would around. the last the we just of And I balance see few now I that conservative as down, cash offering think to what the going sheets have that most years, you share dollars that back still comment buybacks we wanted that in billion returned form we’ve one several debt – over we balance

structure. capital our optimize to trying We’re

of very still would agencies. I we credit flexibility have we are that with world rating So argue sheet, a the little financial think we’re I in we capacity. And need. the have balance bit as the happy And all debt our

through our down dividends frankly, it, balances. see that cash worked buybacks I as we’ve So and positive or both balances a acquisitions, share

Operator

you. our question James Berkley of Thank And is Barclays. next from

open. now is line Your

James Berkley

and that push new the Just solutions synergy to particularly what for on expand spoke well. do your is know – touching cost percent you? Global this cloud-based into pertains to Cash revenue opening towards deals, speak and as opportunity TAM it continue its markets? and could deal WorkMarket up business helping side, in of recent the you Just on touching? ADP as there you opportunities revenue I of see the deal’s And terms what new size to you the

Carlos Rodriguez

of color. a probably I’ll question. the a it’s of bit the scope Again, beyond it’s you call, Listen, try great but little to give

lot of immediately to not our a saying things line ADP hate does, are As of obvious. going with bottom the keep short- but size, to that because in I impact be it, revenues the term on

only of margin result a dilution. that’s short- pressure our So as But bit little then term. of some a really on

ballpark, On Cash in terms the a sense. think revenues. gives business it’s of $XXX around probably we’ve That million a Global you given some side, I Card

impact with the acquisitions We that, average in our business. combined our impact about a than it’s I had expect previously pay of of line X% acquisition grow mentioned card comments to We’ve, our when business, our that think, growth. faster about the on revenue

States use for contractors small client United every market. that, is a domestic to modern you workers. small, it an stack. or anticipate – the bit touch think of it Almost independent could was I but little technology opportunity in first and base companies So the you technology large gives will. our if the of freelance in WorkMarket company platform a is sizing, the We entire platform that all, in cloud-based from

work. us and are people it’s make have solutions. But that as with freelance up the to And our the WorkMarket, rest the we that, think Global HCM Card so, the an enormous which take traditional work, with proposition we before Cash going right that we obviously, sure some of to value the combination work of compliance of of way us time around market that, kind through in opens

a The people. to huge cover the faster the freelance workers, opportunity I of up well market as ability than growing think is freelance as I employees ADP. think WX WX having opens employing So way both WX, this for traditional

the allows I market, of than think employer which segment of to – that so part WX faster is us traditional the And capture also traditional employee. that clearly the the is which economy, growing

Jan Siegmund

Yes.

sizing, think, research. million market workers the to million approximately, U.S. our have with to XXXX XX WX according workers I Just market XX XXX we million and about in

account accounts, about worker and national the have of meaningful So XX% – employments. major clients contingent our

kind early that clearly is today So so interesting stage, very acquisition strategically small that of makes to us. very the

will it X do And so things.

will take then – revenue a will little offer, to think those offerings our over part integrated core bit the we’ll deeply I it of because, integrate, And time, of will of enhance become core service it a while our competitiveness obviously, this incremental platforms. gig HCM opportunities to workers. our into but

meaningful XX – next immediate for not think the the size impact today, given time So during this months, differentiation small over business as is going probably I much, forward. but a

James Berkley

– margins the old the color expectations thank be on can you from looks segment, all? benefit there helpful. on give some they of think, mid-market see just shift it platform margin time, would over just the as Yes. are of the the I and on entire should we terms the Okay fact progress for would the at guys given to or a But meaningful timing like. any U.S. end and to in as side, shutting nearing your cloud, you ES there’d migrations, well Or opportunity a upmarket down you. be follow-up, your the touch quick just ample can the

Carlos Rodriguez

typically, to to Small we legacy had in is over best our improvement platform. the a platforms of at as think I they really and the the way the when downmarket, cost. ability single result a evolves platform, simplification an experience largest cost, and impact have improvement our time. our to in and the which see comes are – And margins of the occur look is shutdown in they process usually on focus of largest on it But focus that Business

and did. quarter that last Small you an downmarket, the we’ve and for or massive legacy X the shut we think the over So margin what day you’ve every or improvement X X the given every years, But incredible next Business in reduction as down X in we years, we platform, day, year ensuing have cost. color the the seen didn’t I this

platform; business a right driving relatively significant or really a onto that of to, the flat. we X headcount one migrating improvement process first, developing take clients that third, all out has technology; the activities so X the in the And and remained way last for the lot and create has second, to attribute its clients. non-value-added increased and And value in years, volume

And the same mid-markets. in so happening the we thing anticipate

So if is Small that experience the at end look is, news good to we’re one. in Business on close the historical you that phase

technology. the have We

We we over the real next several and now, to the complete. anticipate years, almost upgrades to simplification have benefits from And the the us quarters accrue and focus.

Jan Siegmund

as few clients we that to rates very, But continue. unnecessarily. have process mid-market, the quite migrate keeping and you But in retention really the will mid-market important we clients factor opportunity more is frankly, the you – so most that when approach, of to a reminder, don’t lose just come the indicated And have the but economically in the saw a then a never improvement, incremental drive longer. in And the by we this, as in careful end. improvement know profit will in so hopefully, past, third we we in still quarter. we as have take retention in clients stabilization seen And that the probably very the

Carlos Rodriguez

back simplification. things point. that rates Business, efficiency improvement incredible fair one is improvements, to did Jan But that have that up main It’s the client And experience economics these of businesses. we leads brought all margin the seen these retention we’ve if Small of we That��s because to or go about platform X mentioned in a I much improvements great clearly, improvements in higher reason we years why and than a X downmarket ago. because obviously

Operator

ISI. of question next David Our Togut Evercore is

open. now is line Your

David Togut

those ES there’s morning. nice drives tax increased seen ADP’s talk you. simplicity both about U.S. reform complexity created changes I complexity, more term impact PEO. And code. terms more it in reform in you tax have demand. major demand Carlos, which impacted a in think you tax Could and how the longer or pickup the historically, Thank in the demand more for services, Good think, of in might corporate creates whenever and Historically, whether changes ADP

Jan Siegmund

point here, I business Yes. ahead the would neutral impact this relatively David, time. at of jump tax our Carlos in rate if filing as I on

the So don’t payroll think implement, relatively has the fundamentally the that changes easy of were and I to changed business. complexity

attitude it I Going theory, But think tax as evaluate steps of constituencies, speculative in a their of consequent uncertainty degree And created. states bundle there’s overall could the compact their of it complex. want is states to forward, very If overall today. their I think that they of changes how make reactions the to was it to high and the change could. their tax that’s going

So neutral my point. answer would be this at fairly

tax not changes big was implemented that rate implementing a and And trigger those quickly. point. itself We’re fairly

results overseas And in that seeing immediate liquidity the and in from be cash from I read U.S. all reactions all certainly stimulus stuff and think inflow also the the from think should economy. I we’re that the newspaper. increased increased the a that you

the overall that kind that economy, for That’s us. help my overall assessment. of So and positive will should be

David Togut

just a And as it. quick follow-up. Got

Could an downmarket national multinational both and also You accounts? and U.S. bookings quarter, called in on in accounts. strength us in in out you mid-market update trends demand the in give the

Carlos Rodriguez

this about when as all I mention they Yes. a basis again, tell them strength. again, about we didn’t number, But quarter, I can relativity. quarter-to-quarter. on – but the talked mean, number, from I say relative say you I the I’d that, it’s And mean, if strong, our can retention I bookings fluctuate compared that – obviously, our I’d held weren’t because, it’s like own.

think nice a that in quarter, offering we’ve have We clients. compete business new upmarket the that our above the in where quarter. types of and upmarket businesses upmarket, this I which quarter driven particular competes segment for of growth I was really that note upmarket are of the to it relative in example, platform on that increase had of last by that businesses very happy in taken. from and we important are our better for a product So that with Workforce But direction previously. bookings to mid-market But itself year’s mid-market our the reinvigorated much Now very, performance is mentioned the and it the a second very than the trend-wise strongest in well X,XXX, – kind

we year platform. the So versus had upmarket growth of on – year count Workforce in units a on Now say previous I terms versus of would our in sales. we the nice the And new of terms held in prior total Vantage, the our then number client own we

last business. and year working grow-over we’re was issue the last that I’d ACA pleased sales our say a meaningful the quarter quarter through where still we in So second of saw

it’s And It so mathematically that gives mathematically positive you some sense because of difficult. why I just can’t was be as difficult.

Operator

Thank you.

Citi. Shirvaikar Ashwin from is question next of Our

open. is line Your

Ashwin Shirvaikar

services. Carlos, question a you. on PEO Thank

growth. continued strength this XX% worksite in employee pretty obviously, past It You’ve the about solid the in a commented, was quarter.

with next both the off might rate, you any late Given thoughts of on on in get years what’s taper PEO cycle? And and as couple happening funding unemployment view of the do low growth the that? ACA into we sort think multiyear

Carlos Rodriguez

had it’s a I crystal think wish and I ball. a great question, I

not We’re planning it. on

investments, for deceleration. So headcount think, planning our plans I a are and not our

growth, we the top is to is we of read. opportunity margin still to it in is you’re the to the double-digit really for it’s growth have which worksite that impact, is a The is something fair have think the an I us I I that to hard think, proposition to line pass-through quite strong gives be on. obviously and value think on, But absolutely very employee and, which makes has a asking quite very eye But – to growth be that keep place us. and is cautious count think strong. and We’re continue terms question, But growth. to things right because healthy this I we to there. going satisfying place focus a But strong to growth happen us try still have

that lot not we those result were afterwards, have it our have as of said We a tailwinds during I felt a have obviously, just like And in tailwinds business it, of ACA. getting abated. tailwinds. some

it’s PEO just the So become harder business. think in I

Jan Siegmund

one care thought clients. I clients' and that be think experience, my is the if inflation, causes, in renewals, might also that obviously, health more higher benefit helpful you thinking see that basically, means our

pay to you attention think, to on which in and be And why thoughtful. be offerings. so we very inflation, benefit faster it have just focus But that thoughtful committed I overall, will to exactly the have you proposition, value remain your is create

Ashwin Shirvaikar

a flow as metric vis-a-vis employee? is be And for of you play. out? on economy technology one, and them economy that. permanent WorkMarket thank one activation. the pays this think in gig included but good Understood, how Will seems control gig your per And in they follow-up this, I It workers the in question’s a mean, like a the more I general. should treat then addressed you

assume scale. don’t go similar many build have acquisitions you I make So to to

Carlos Rodriguez

subsegment pays technology in a ADP per as that is think talked order be want our control, of because That use to our is to pays able a platform to sales same-store I It’s per one we we’ve in pays growth. control And about correct. total acquisition. always isolate

business anticipate every WorkMarket that report And example, that has few doesn’t to we as But including find for to a for control I of it a platform hence so, think, it’s because rapidly, Because market. very interest metric not we And external my with. road, WorkMarket in begin you going important. that the our I pays is per probably is give ADP right, that. metric the becomes years now, And and usual. be might we’ll that’s separately, grow include as way sense to this down to think would bigger, it’s

Operator

Thank you.

of Silber next question is from Jeff Our BMO.

is line open. Your

Henry Chien

Services correctly. I follow of Is I’m I’m there, any pass-through to premiums? that It’s product wanted in revenues thanks. mix any or just changes more trying underlying either rate if and, just growth a Hi, uptick PEO sure understand just change to Jeff. the for and on Henry there, think. to there’s in Chien up understanding Employer say, function increases this the make I for just is the

Carlos Rodriguez

say us our And of and There’s we’ve clients not care this that not there’s other serve pass-through." had in here, from think a would health higher, say mix to big don’t proposition immune or for. we we’ve the itself, treat a part have probably PEO health we we’ve X and higher that, but and because that come really think has of would as, "a hence, safe Jan it’s that, immune general, health let’s simple. that inflation of from been clients ago. Act, Affordable but And I a employees, just owned it’s care the value want given years was statement than a inflation. so we to not – that and it’s think think And which be XXX,XXX political is most health X care, the this either accelerating our I of by not as to I periods the care issue And that be I especially make I time, details, for say, it’s it way, worksite Care long would inflations. result I it’s here, some – that – through – law

in not So context. is unusual this the historical

Jan Siegmund

growing pass-throughs worksite than employee faster The Yes. are count. our

lowest inflation the slight a harder is faster that chunk care also we now choose then a choosing that’s away – enrollment because drive then mixed that with above have period. number obviously, reason, employee of and clients, to employee health growth that the that mix actually the XXX they this. get have is which what and policies. plans pass-throughs the employees slightly with they employees, offering And For factors and bit are renewal employers renewals, seen our a the the little the our forecast richer our a But plans, plan we of have the then, higher in choosing the growth. starts and mentioned, on of richer to to comes inside seen their shift offer are It And worksite mix. lineup there’s that we Carlos and actual plan that large that from

enrollment season. we what – that’s have seen So throughout

mixed And through health pass- shift so there’s but majority little vast the care some inflation, the well. is in growth as

Henry Chien

Great so actually it much. Okay. Thanks had helpful.

Operator

time the And Marcon of for comes R. Mark of more you, from which have one W. Baird. line question, Thank we

Your is line open.

Mark Marcon

California, York, a When regulations? regs all take thanks taking compliance. we’re like if fronts. at starting in maybe you’ve like secondly, was look, think PEO wondering be Texas, markets country outside see of That terms mature. in are One for about seeing then to Florida, couple et be different your a obviously, in penetrated, maturation of you sorts terms New the take to And states a would we on up. where got And And more we’re think those of Carlos, or of the we the morning. regards are where my about the we other difficult of But country, that make X share states, well the specifically you side, cetera, think Good when the of a long could the are history with when on question. do we could balkanization you it across bit must we and concept? perspective I you a evolution? little look broadly PEO do popping comment to speaking that

Carlos Rodriguez

Yes.

to owned years think I has I it, the just to foremost, and XX certainly last few PEO, of work think underlying in the lot still business and from value first the strength, as about are what’s – could ADP that think immediate I And if drove difference I a point, people, is a success, pride, proposition for So trends. reaction lot execution say, that my is I of those good those, was the question first a the a right? do think reaction make we And of the on besides of about company. my or the the what happened XX hard lot a fundamental and the intact. would

in over the about by you some comments the years, made that’s it’s really still So of market part relatively despite PEOs. improving states small penetration the served a

the to But of your states deal now Jan forward very are ADP your an the And clearly that good a it’s employer a it’s have about, little intended take without of second all have tax up second what things to of complexity you other be of perspective. the or to what employer And in that in their has task appropriately just an we that part a I either around local that you so a this that in tax some of level the and making you unless matters. from sudden again, deregulation have safe difficult one public to touched being the existed focus going there’s state doing, this level, the is and different on at bit about that get cases, also since easier even a not fact to current the and energy talking or and if the at question, of around is economy, keeping a for question, and – political say employer task trend is So tied various the the – it’s how employer not part around to context. views is, being all corporation. which and you’re that reform an headlines ADP push probably. since government around sectors you’re it’s to tying from federal being more towards federal believe administration. might to think It’s with states, around if on has state existed, then of federal of the non-ending is regulations country policy been an the multiple level. with the level at But have A it lot statements, because that on

of be on regulation. of in the compliance their business and with ADP And companies a And to companies executing regulations. majority focused these trying situation, that because deal will, with dream the is you should these on all all of on on their so if to in want core kind changes for be companies not

greater the DNA benefit with than have. in as deal orientation, describing. have So industry but ever you’re probably its we with even I general ADP, an growing not And faster of because think why affects we GDP. strong PEO, helping as remain clients I just the That’s ADP that business. it the the has in is HCMs the affects complexity probably around overall we compliance that today it think optimistic general, the And

important that opportunity be rest is number I mathematics. PEO’s So also And done the think being think the then just difficulty the still of guarantee definitely the don’t terms there. one simple mean an which will there I still execute. complexity That of kind secondly, has touched because the doesn’t I on, is, of the because not of employer the abatement a in that’s there But States. answer see think out to very Jan to any you we in execute, I we touched opportunity and point the of on the or execution and in United that think is industry have

Mark Marcon

on Or inning it it if would at. PEO you where or the runway. I boil is you terms I it? the how precisely would of in That’s mean, maybe just third in terms, I then, characterize penetration? baseball fourth to down And you were was getting long putting mean, Great. say in

Carlos Rodriguez

can shouldn’t I question. that in answer to think let Jan he’s answer in innings an because going how there forecast. are don’t I baseball. do I’m baseball? be that’s expert – to the that in Jan, business it many know you probably trying we’re question

X the PEO I says I XXX,XXX. private PEO would of to I – we downmarket number sector our better – value I as every And about probably think a a basis. think under maybe million really, people always the million. industry the – this arrangements, you know employees. of own like obviously, and are we There’s Mark, proposition. XX there’s people The says X.X type We that that payroll systems, million – on industry million math, I And there’s X know million you do, report think XXX said on there total right? Jan than about focus market that, regular – mid- the but on have is I do, the

think years. at remind But for for I XX it’s to So look probably baseball think of there’s I dangerous because a plenty it, it it or next analogy the X of me you’ll use me like opportunity. looks you anyway

Mark Marcon

I won’t do that.

Okay, congratulation.

Carlos Rodriguez

Thank you.

Operator

any pleased closing our over for session conclude does Rodriguez hand the this I’m Carlos portion for And to question-and-answer today. to program remarks.

Carlos Rodriguez

Thanks.

I I half success on and the And our with that forward the that progress initiatives you transformative see, commitment acquisitions to our ADP, these, demonstrate also to we we’ve think our to just reiterate to as year. during with in It’s and next-gen pleased first our along we’re made strategy. going welcome we’ve we investments colleagues can solutions to we’re to made WorkMarket have look very commitment the think from strategic together. our like to the of the the want progress our

a important. with you of experience begin say leadership they strengthened quo we lastly, We’ve and ADP. shareholder little As learned. the acceleration. think things think learned conviction. pace anything bit tell on with talked because the from I we engagements I of our from call, to the we all accelerate decided was of to here retention that I’ll carefully resolve at listened execution care And and intend think also urgency, moving nothing client with. the and the We the there’s I but And contest. with during right to about – our path strategy are also can to wrong also proxy move also probably with But that our It forward our with our rates but are incredibly status

Our is changing. markets The changing. are work nature of

that think complexity cases, employers. And creates, creates I that’s for ADP. opportunity. good think I it we for as some And said, in

forward you in continuing the our of the and your road, look the for appreciate thank joining interest details So call down to journey ADP. I with share we you We to today.

Operator

program, day. Everyone, Ladies and may and thank today’s in have you great gentlemen, does This today’s you conclude a conference. for disconnect. all participating

Automatic Data Processing (ADP) 31 Jan 182018 Q2 Earnings call transcript