ADP - Earnings call transcript Q4 2019 | Automatic Data Processing, Inc.

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Operator

Good morning. My name is Carmen, and I will be your conference operator. At this time, I would like to welcome everyone to ADP's Fourth Quarter Fiscal 2019 Earnings Call. [Operator Instructions] I would now turn the conference over to Mr. Christian Greyenbuhl, Vice President, Investor Relations. ahead. go Please

Christian Greyenbuhl

and and at we on joining investors.adp.com, XXXX. as Carmen, and the year everyone. thank fourth Officer. history our you And With Winters, accompanies and and Thank Chief our our fourth good results fiscal quarter These for Financial Investor earnings earnings pretax Relations are that President our full Rodriguez, Carlos reportable revenue of ADP's today find this website website SEC's call Executive well also fiscal segment. available where you Officer and will quarterly me Kathleen presentation morning, you, the on quarter materials Earlier and are by morning, as Chief investor our released XXXX webcast. call the earnings today's for

materially as our our encourage call we involve which non-GAAP additional items that items. their During in found Today's comparable also of and, will forward-looking the some from financial that will investors believe factors most that measures the timing to the on release. information results we refer A our events differ future impact be current risk. actual call our statements measure We filings review to non-GAAP and reconciliation useful GAAP you of of with certain to for a to and exclude reference measures, can to to today, contain with description earnings along such, SEC cause could be these expectations.

do questions. out always, should not please you reach to any As hesitate have

me to let turn over that, Carlos. And call with the

Carlos Rodriguez

constant line our call. currency XXXX the We billion our quarter thank ended $XX.X constant year revenue $X.X results and total and organic X% organic you full expectations. with the currency. for with our This we and morning, reported X% in fiscal of Christian, fourth up and billion X% you, revenue with up of reported year reported quarter everyone for Thank joining

transformation We our efficiencies. with adjusted of and share a top-line ability balance we effective points of XX% expansion from tax the combined also to year. as well strong are voluntary benefiting our EBIT ahead executed a initiatives, we early the growth expansion on adjusted including margin revenue for pleased delivered basis was This operating expectations our with XXX margin very retirement with When lower while this buybacks substantial increased EPS program, adjusted our rate, growth strong year.

year. with new X% core bookings Our and drivers strong growth fourth growing quarter also for are the business Employer Services in the of XX%

in full given pleased We this performance grew and X% fiscal quarter are especially difficult year. bookings for the XX% with the the compare XXXX in when fourth

testament we our put new bookings To results our the scale a approximately Services $X.X bookings, of this revenues, of to perspective, which sold recurring is of business performance you and our into double-digits strength XXXX. force. in sales Employer the When new in year which grew annualized billion add PEO

as June improvements product well expectations, in new worldwide sales productivity. Investor our investments opportunities targeted incremental benefiting with perform in overall in from to as XXXX our force, line business Our continue our Day and selling in bookings investments our

grow have expect are Employer bookings our XXXX. in Services XXXX this bookings fiscal strong Employer X% years record and pleased our in X% fiscal mind, XXXX. in and currently track We distribution to very recent in of we With to with Services continued to invest

anticipate fiscal performance second half the a in related following in XXXX the completed fiscal recently compare a quarter this fiscal XXXX. a fourth strong our in difficult half list acquisition, XXXX, strong sales incremental half with of benefited of latter second XXXX, fiscal As organic performance reminder, client from to we

year you will we another of provided our the Our for first business. guidance is the of this indicator Employer rate as important it. Services revenue And health is retention recall,

our late with of transformation to points This in basis been us our organization. which change service an given to completion fiscal in puts are XX.X%, XX.X% benefiting XXXX, in from closer following our rising We line by platform increase our continuous migrations amount investments platform pleased Now we've XXXX, was XX was scores improvement in of no Workforce small high of rate an expectations. as midmarket accomplishment which undergoing to the is our in the all-time This initiatives. is NPS of report retention and our related primarily business, now driven which

service the migrating years is on solutions our three of service strategy to working, closing through overall level by improve and scores client our strategic and the our ability clients broader to our contributed experience, software model costs. also our client locations while sub-scale Our to alignment transforming them satisfaction service over the past a efforts our in in service simplifying have service improvements initiatives and cloud-based

investments You more But and anticipated efforts discuss to will benefits. recent of related innovation. Kathleen like of would I before our on some our hear recent more from that, around transformation briefly and our shortly product some

and elevates payment evolution were take differentiated their the the identified of by attract war America HR Institute some capital in remain recognize the benefit of study strategic of business XX% increasingly a as to talent. in ADP North the evolving recent and options is employers value for to is payments One order financial regulatory for from At wellness offerings partner. talent. the how will to to nearly companies that these retain shared Research need believe advantage trends. we intend that an position payments continues trend Investor human A ourselves June competitive we landscape customize such employers and employee in of strong global market The Day, our management of to to XXXX that increasingly need

pay offer. when While such the job a frequency two-thirds a of employees choose say would off-cycle pay make as difference ability considering to options

now, proprietary our invest we which evolving their our complement clients At enabling a the and my helps to which and enhanced off-cycle wisely wisely as ADP, Payments mobile in our are HR employees Recently, and address payment of to ADP's provide financial Instant automation such is tool solution new to their we termination through in we functionality continue risks launch with with tackling organizations we solutions bringing wellness the companion payment electronic compliance fee. widely with fully electronic trends by app. departments pay the

these to With requirements. or wages range expertise leverage of order unscheduled solutions the organizations local ADP's to compliance in diverse pay can off-cycle employer employee meet

ADP the importance the -- with employers process. identify enable of therefore talent in effectively also market into with competition. helping that of allows tools recruiters to markets Linkedln a Providing increased looking management candidate Organizations recently servicing data easily more stay objective them top effective labor profile equips and the real-time all-in-one with integrated ahead while is Tight and ADP our recruiting in integrated offering management, utilize recruiting. recruiting basic technology LinkedIn recruitment recruiter the to The platform labor mind recruiter. an export increasingly with are connect that seamless ADP and automated tight has is that critical into recruiters this system that paramount integration It in connect. recruiting information

or ensuring workflow pleased products, to be commitment manual they to data recruiters This single entry, between just large-sized of employee in repetitive their example Innovations most earlier With how experience to today both that best-in-class leader our systems recognized a respective businesses is need recruitment manage this as to candidate outsourcing systems saving to Group by demonstrate process Everest time access one and The is a use have these the and critical of outreach. like without we delivering in were of and their solutions everything inconvenience this workforce integration NelsonHall moving executed multiple flawlessly. needs. assessments. is integration, vendors month, mid-and seamless

strategy, generation to more needs. enables HR approach is to flexible markets As our ADP the digital this fit share We of second therefore our This HCM management for and were largest us solutions, for providing build for pleased to to HCM the this integral host open Annual solutions. to while recognize best and partner in which is people partners their our foundation solutions, also creativity open source quarter our marketplace to a allowing an ecosystem their them to allowed practices. ecosystem summit, Marketplace API ADP success employers next

the pleased total HCM the number proud this spectrum, partners to past our grow ADP Marketplace to growth across first been we're XXX months. launch XX% see vendor representing of the to We year marketplace over a with by now solutions HCM almost and have XX% are offering XX

by possible without accelerate me saying company would remarks our our dedication Let HCM my and are conclude associates, of that us pace be integral an not becoming of who great our towards change. provides technology helping the that service evolution

ensure our are for deliver these the like their transformation of of initiatives. to to success to their solutions We efforts innovative our and clients proud efforts

Kathleen for to fiscal I'll with our turn in outlook. commentary And over the XXXX results it that, her on

Kathleen Winters

the morning good and call. on Carlos, you, Thank everyone to

Carlos our we're for financial with results said, As pleased year. the

in our software improving the service transformation delivering cloud-based and client our initiatives. We ongoing through solutions continue leading to make to clients progress experience and

delivering on top-line and while operations is improving the also creation of to order revenue long-term drive sustainable growth in effectiveness focus efficiency our working. Our value

reported in currency an expectations basis organic and on our growth revenue X% constant X% we at morning, full-year This with basis. on reported line a

efficiencies. larger improvement ahead both fiscal increased included EBIT was of and basis from XXX will The transformation of points points margin I to of various Adjusted basis XX up in This EBIT unfavorability about details you adjusted with operating now our and XX% Our initiatives through. expectations. from XXXX, margin compared discrete acquisitions. which take benefited

recurring completed a line with $XXX with retirement million expectations. voluntary our annualized program cost original early an in First, of we saving

benefit XXXX. this We fiscal timing the XXXX. full expect in However, backfill savings due realize to fiscal incremental hiring the do in initiative we of not our from any

benefited in costs. fully our dual initiative. Second, remainder our line million. expectations approximately in Having annualized from locations identified most $XX approximately of alignment savings remaining realize XX fiscal fiscal from This recurring was cost in as while previously subscale completed XXXX, of XXXX the service the in cost achieved lapping XXXX, we of this saving service of we hiring we our benefits $XX these our for operating needs year, an fiscal exited million the with

saw recent These more this that IT of platform savings a year, we cost further also our by drive business. supplemented number within have across projects transformation helped benefits smaller continued from improvements tactical following initiatives to infrastructure. our collectively productivity migration Finally, efficiencies the efforts were

client system. relationship an initiatives these management of enhanced examples include Some

Our our together were from automate elevating initiatives platform investments manual and ongoing in which partially and The expenses. client. tasks help the of in artificial the offset per selling use brand reduce by investments contacts new to these benefits intelligence, growth

Our per share and shares was loss in growth, our XX% certain of benefited our fiscal tax tax XX.X% earnings margin from federal tax diluted impact of reform, to tax compares by revenue to for was statutory by rate This due the to rate deductions. Adjusted grew to tax and XXXX and the adjusted for lower corporate adjusted benefiting rate rate offset a effective from tax compared the effective fiscal partially XX.X% a XXXX. expansion also addition fewer year to ago. $X.XX effective lower outstanding aided rate

segment Now results. for our

Employer grew and and revenues in X% expectations currency. Services, constant with line reported For were organic

this inflation our to of of driven client offset $XX.X FX. wage Interest percentage As growth funds X.X% acquisitions, client balances of fiscal lower from average by point This a the collections. investments and in and XX a fund a client of experienced year XX% by was in which client yield approximately in our control, was billion. income impact average and improvement on partially growth SUI earned point grew by one combination per balances impact to growth, pays we of in growth X% the on funds offset benefited reminder, from basis benefit the

X.X% per for Our the metric fiscal same-store US year. pays grew in control the

The X% revenues our Services by Employer from included with margin, that enabled the points of I to the of performance employees line year acquisitions. factors consolidated year XXX which both to some billion impact X% our approximately we average XX points of an about results. growing XXX,XXX the with of to was our this on of earlier Moving year, basis basis saw increase in unfavorability strength same discussing worksite $X.X when in expectations. grew mentioned PEO for the

the operating workers' billion, benefit in benefits also margin within line retirement impact year due excluding pricing. from and basis to Revenues and lower of from pass-throughs SUI grew for Margins early the with zero to expectations program. increased X% despite efficiency the voluntary compensation $X.X pressure points our business XX continued

indemnity compared of ADP than saw points also estimate to estimates unfavorable about XX better We previous impact with of a expected our changes loss to fiscal basis in our year-over-year XX XXXX basis points. reserve as

now year liquidity. our of results with with us, share behind a to And strength financial our XXXX. sheet, thoughts We flow in balance and the are fiscal cash few I pleased the to want related

We have our innovative operating to that supplement is We strategy these competitive investments believe market our first M&A. and the cash position our levels approach leverage strengths of strengthen to a distribution foremost offerings. robust solutions, balancing business. our client by with tools to leading high in critical flow, in And through helping business reinvesting reinforce a investments service of is model model disciplined the and we and to

committed We approximately returning shareholders $X.X also buybacks. and this year, we to cash remain disciplined through excess to share billion. returned dividends And

client multiple money of global ratings movement and credit operations liquidity portfolio. our all for sources investment help Finally, AA support client fund's in our strong and $X.X balance strategy our our sheet trillion

control X% expect segment, per move to revenue now with of XXXX in about which fiscal Services, Employer includes Services X% growth we Starting pays to Let's our growth X.X%. anticipated our outlook. Employer

business to to to X% Employer for Employer X% retention expect improve also points up our We growth points. Services revenue XX XX basis basis bookings and Services new

margins; Moving points Services basis to to expect XXX XXX points. margin on by in to we basis expand our segment Employer

growth leverage with operating our of together margin continues a various benefit from initiatives. impact transformation combination Our from to the

experienced some a bookings X% employee and lower our of X% in average we the growth at X% beginning our and pass-throughs, fiscal of progresses. worksite in we growth our churn of high and end we Accordingly, quarter. margin driven XX% in on to fiscal expect average growth revenue gradual anticipated, XXXX. to pleased with range as as the we in remains of revenues both segment, to with anticipate fourth benefit our the volatility being inflation reacceleration strength X% healthcare But of our anticipated the zero year We're rate the PEO employees. care Regarding year, guidance health X% PEO PEO an worksite by PEO excluding in growth XXXX

total continue meanwhile an have impact We expect growth. our lower pricing to compensation on workers' to and SUI revenue PEO

fiscal following margin XX our to margins we PEO loss points down adjustments unfavorability indemnity XXXX, ADP to a which reserve approximately from estimates. anticipate includes XXXX, strong in be points fiscal For flat basis to XX of basis

revenue fiscal We approximately $XXX total growth on I'll in consolidated go the to interest X% outlook. outlook This funds now $XXX than $XXX for XXXX $XX approximately income interest million. million extended fiscal XXXX. $XXX our outlook our of income client strategy This anticipate of XXXX. to from June million estimates Investor investment and contemplates to to of is X% net million million Day lower

operating to expect fiscal margin XXXX through more points given in some in second income to points XXXX. of basis very XXX we said, that overcome fiscal anticipate With half this interest adjusted the and expansion we to our basis performance 'XX. in efficiency, strong margin half With EBIT XXX pressure first fiscal of increase

the XXXX In benefit from initiatives. benefiting from fiscal to addition two to leverage is operating our transformation our margin anticipated following growth

$XX control broad-based workforce million throughout layers effort charge spans on recorded approximately of of focused First, and fiscal we to organization. the severance management related optimization during 'XX, of quarter the fourth a a

benefit tax related we're a QX two option about year accelerating XX estimated combined does in last it vendors year, adjusted XXXX, tax line efforts with benefit number $XXX our in initiatives to in this fiscal rate about stock excess aimed management. vesting third-party from and tax not transformation our internal points of related estimated stock of effective basis at XXXX. restricted to include compensation based but expected this includes to through potential exercises. anticipate are any XX.X% stock of Second, fiscal be We savings of These initiatives generate to expense million rate procurement

on Given benefit the the of timing of dependency exercises. that

of per in earnings XX% XXXX. share diluted to XX% adjusted in growth fiscal expect We

over challenges have share thoughts of pleased including to business a share a be on associates XXXX strategic share year date. particular, to to we resulting at my been you XXX. and have our June It's the fiscal I've and from and set ADP. that through here with how had In things months now few happened some a responded might our of few discussions are our progress the few I'll Investor with is doing since target been we've ranges set we first our 'XX, little pleased have how we with Day, that the ASC adoption a since plan. Therefore, couple felt helpful we then, those now with a of executing it targets, we the reminders. At

you First, and targets XXX, XXX anticipated Day we the on provided ASC with you that we Investor impacts will margins. ASC our to recall based on

mid-point exceeded guidance time XXXX Second, reported XXXX fiscal that we results subsequently off our fiscal baseline the expectations. our were growth our at the of and targets of our better

So targets of targets presentation Investor our June recast re-issuance the a you or we Day providing today's XXXX find and will using XXX basis of our in earnings To provided Day. XXXX better walk accounting. not the are of of reported and you although results an we a ASC update certain assist Investor fiscal at

in pleased progress Taking our we fiscal a great our And XXXX. are to initiatives. back, step performance make we with continue transformation on

a have of excited an and continue to challenge ourselves us ahead to to even lot We opportunities stronger organization. of we're become

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

Operator

question first [Operator of Jason we'll America. Kupferberg line the take with Instructions] And Bank from of our

Jason Kupferberg

over in even the your typical guys. of to bookings guidance. just maybe half. actually in fiscal prepared things, especially remarks, start 'XX the on the wanted line highlighted your Good looking annual as in grow that I have morning, you do was side It's at though just second target with tough

of the the of clarify if deconstruct to were you coming market the stronger can than what if comp go the you was part in into visibility contribution maybe And guide from. can issue on expecting just you light I will? target. So strength QX in where the a mean it's that you quasi-acquisition, if I just terms sustained bit just wanted we see bookings in as of that that, a see from

Carlos Rodriguez

Sure.

-- start quantification But the come just the guess question next of we with numbers terms look bookings of and by guess, the I up fourth then of in of the year. objective I in the address trying me a quarter. terms for Let in the first our to forecast things maybe Kathleen part can number -- the at

This which As terms our having a in zero new you month, least have the that, the know, rest on, from recurring quarter, is is revenue. of around. that number every because business information bookings. have it's historical every we that start unlike business week, the visibility of we every said is lot of But

example, model cases on you new goes and subjectivity into and force product number that three sales all top the so hired be past productivity, of productivity into some we a that's and really how with and may months, sales so acquired and strength or sales or feeling For of are our add bookings. we around that for in that, that then come system have per number call we over we people have sales four products we that the some diem average have the up

changes works. the this We've economy So way shock borrowing I in external and think it borrowing kind doing been -- and factor. kind decades of or for of some

get certain we have productivity we amount count amount we toward that new We up productivity kind also we of in order certain then of have and marketplace. to a productivity to them our had, sales of we ratchet and force that then improvements. us incentives introduced products competitively drive that our head help change in a we have those to try drive that help the And

to as changes there, other insinuated Even of fronts big segments, on big here relatively are remain and other So tweaks all factors kind than other pricing, though business constant. report on you of the usual. in no as kind changes depending no but there

have the we the that in is it I feel of approach I'm and number we it adds tested exact a if target. think bit I that the create underestimates more think of selling grow good can the hiring behind was. did a ahead and difficulty sales business client think kind little of I and headcount little of and generally fully I game, amount flavor on with tried how variable if us the the address? think of that's for build over a momentum Although our new of you the little a acquisition an And a with year to every was, in in from it's historically the sell about where the list, exactly fourth were gives you of I exiting our we head year issue us our bit because gives bookings or staffed to quarter a hiring shape are planet's in hit count bit -- our that order sure good but we probably have know, to X% challenge we're good our even range, our confidence of not but one would and want it and a Kathleen, in organization. count that head we But

Kathleen Winters

bit kicked through on a looking tires functionality this new eyes I'm just head months new I or How bottoms we to What productivity count solid here in the for product And Yes. maybe to been eyes very really I really, and a of terms of, to can process set look market on at at different with go detailed that like. looking really mean, comment little I process happy in of or the the as improvements. couple also a of process mean, does is at add the a see and we've is said, process. growth. conditions product that. having Carlos attest coming in the come fresh up looking and the set now I'll process.

In list Because out acquisition. and organization, identify acquisition. result year-over-year mean, fiscal client that about impact really, list we I the performed particularly exact of and growth organization little a of with it's how end XXXX, sales look, we're parse the the had it's those with client really dedicate and got a -- terms it we and force on for exactly that sales we've the and the outlook to organic, And we pleased very terms to think of happy the got really for really conversions outcome and out of work we've we've and sales associates close just go we're look the had sales XXXX. balanced those to in solid a XXXX. think in truly hard balance

Carlos Rodriguez

And so notes, I stronger just is listen head -- over and little X% terms went back our bit around, in is little a my of. bit a actually count

discussions obviously, that's and we're to a economy better etc. So take before, insurance difficulties little we of our have did -- is conversations and an the policy add out probably than discussions historical little the the six organization. about we in bit headcount economy rates more and norm about actually bit in difficulties months sales that market with ago lower given a And about that decided external going the the potentially

in I headcount position a think standpoint. So we're entering the a from year very good

Jason Kupferberg

Okay.

Christian Greyenbuhl

is line about point add to put investments, on. they Carlos' our what focused that on in that sales, are in to which Jason, briefly more at Day we Investor just with I to going focused were inside try headcount would outlined we

Carlos Rodriguez

think comment to a quasi-acquisition. about And referred one last because that, I as you

best no right assets, had We platforms, initiatives no flawlessly. ever executed resold That virtually and So it to of was convert client be planning, was just to very it difficult re-implemented. to of we executed and bought -- was execute I've be and just so every and clients clear one an incredibly seen. bought was a is clear, because no to months was the months people, that single well the be and probably

Jason Kupferberg

just on PEO. Analyst back Day we Okay, if reflect that's good for I wanted switch to I a mean, really over the color. to year. just last gears second

revenue PEO was at know the on looking year X% two, I in to midpoint in three year the think, year we think CAGR the to XX%. serves. I at memory and one, I about we're there XX% if XX% guidance did

WSE that attributable our So at versus CAGR variations you kind a little pieces day, to the was perhaps of SUI on just in plus what realistic three some thought of in the the the growth ago opposed and bit the as the or as more pass-through end what how to year recalibrate process is is, terms expectations pricing the of should reflect we a of year today.

Carlos Rodriguez

Sure.

that guidance margin that's it So that of Kathleen on more the our XXXX, changes way we billing our that later XXX in kind time was Investor and we of change because started to highlighted. are Day, fiscal when things we've a we in PEO the as year when really take biggest pass-through. because was give and of works open to so as month place talking zero year when But just our from the that's really the benefit renewals it our a visibility about some to was thing that things the pass-through every we fiscal is which another highlight tried our needed things takes since Day benefits place provide quarter clarification Investor for gave one 'XX, June, cycle our on given ASC because was goes In for enrollment PEO. timing other words

than kind revenue. Investor was in happening this had low on as Day. renewals, with given certainly we inflation, what we And last zero margin, an have so growth but had our total mentioned surprised no certainly impact lower in care pleasantly PEO 'XX healthcare were of EPS, health we gotten time, impact of year Again around on anticipated,

guidance health renewal items a of component But margin benefits lower those performance. impact Day compensation in PEO than That our two in policy was we combination of between XXXX care the Investor the had ended also really zero pass-through. of smaller a being up the workers' largest is again We had difference anticipated. that the

we Now, to on move XXXX.

versus little now give with in 'XX care depends of renewals, want line have combination a in a mentioned in bit also it come historical prepared slightly health the 'XX. factors. of the Now those impact so employee to -- what is slower to slower you of combination start but her we pass-through And of really on as Kathleen expectations. you do get a because worksite it's growth, growth, which color, just remarks 'XX I of two that our

in So for is historically. what line had more portion we've with that XXXX

zero it coming was XXXX. 'XX workers' compensation have still the comes pass-through, anomaly but pricing down So pass-through margin, also to and from in SUI down coming really we when pressure

And again, price pass-through these for a in PEO. zero margin is low thing generally or or down the costs margin cost competitively good coming

has on of very But impact the number. relatively overall the impacts little the small profitability and revenue impact on PEO certainly profitability it the headline of overall So ADP.

Jason Kupferberg

you. Thank

Operator

next you. MoffetNathanson. Thank question Ellis And Lisa from comes our with

Lisa Ellis

And morning, great results. guys. Hi, good

in I believe clients. if with would handful an your Could XXXX give peaking as update that of on the Could of rollout? product are the really high-end of Thank timeline where beta Here, testing correctly, What call I type most what rollout? out what's that you new our you. a kind you you're and us features clients in for into -- hearing is the liking now. about product feedback you

Carlos Rodriguez

Sure.

There simple works can if us and mind kind very up get bit. We solution brought are that that You're as the "simpler" segment some of for of we've Now really you we unmet has clients, about clients just that, Workforce for global platform we've don't relatively also market competitively into benefits will the of on upmarket our been are a is Workforce color really well needs and helped a before market needs. space, a working Now which where into we're larger that that have have the as today. imagine, larger little I keep very those quite in several excited a years bit obvious -- the address needs of in

Vantage the unit is Workforce a combination think the approach been be it's consider led upmarket, the I use to in two Those so, things continuing investing to Vantage interim two-pronged good in Now we growth bringing and satisfying have and into in -- using of in also upmarket. very us. for up to And which

we But obviously, believe with new lot there's our upside platform. a Lifion of

which have And recently. year pilot. sales where so, first We just team, clients we've this have in the is we had very a expanded do

think maybe new in I but sales general are exceeded safe that availability, line in expectations. clients, would and our been not So we -- say have expectations our to even are I it's to say, selling we

clients have and approach about clients. a got, believe we work add now But to bring as four development or lot are and that front. improve it's to ahead I that the of are and us, the in platform five continuing on we happy very of we're obviously we live, because So on implemented agile we've

in get this fully we that of have to so, to exponential need We've can gradual and we just are in process with the of I we've where get the year. that ready the is adding that resources think been sure second implementation sure we and for expect making where platform to sales point XXXX market, in we that And the we're the particularly been we make can of adding people. year half a traction resources, growth our implementation

But very ADP's over caution long-term have to shouldn't financial pressure, on not our and that really because short This is horizon made is that, the that we is is or a very, is impact competitiveness. years in in to say, the four this in I putting investments the is term and create given investment fair the be a story, -- lot it something we've But a some we're of or R&D years. of would five fact, again, revenue. a the say it's impact a long-term if last of our positive besides one course expected expecting billion size -- ADP in and on $XX year it's terms two

distribution XX, X, Now in size know, on translate upmarket until that we're months sales of depending doesn't down the implementation. investing you the in And the heavily and XX complexity revenues as client. the into especially and road

Kathleen Winters

Yes.

So had said, as we we range that high that of sales we've given of been and we'll sure. had there, during to the XXXX implementation do sales course were at of we the for end continue range units we that we so to had adding expected Carlos given did and a team -- but

feedback So and keep during start on these that. course we'll to the as with year yes, we'll you of pilots the do we get updated the more clients

Carlos Rodriguez

projects think, I worth about I we But as other progressing very -- Lifion. have talking you specifically quite well. well couple since think, that mentioned, think of also it's next-gen are I And

our for progressing them But it generation to gains and of of tax flexibility efficiency real it's exciting, well. for is back clients. more service there also some also I engine, scale but next solution our One more should kind think, because, and new is our organization or office lead payroll very payroll

clients with have we engine. think global dozen That's around pilot. it platform a I rules-based in a again also a

in the we progressing on payroll sales, ramp also and intending to well. about excited around of implementation I us in very terms our And that will are are quite terms think up that We give flexibility that also. front it resources our that's business of core

Lisa Ellis

topic, outlook that's you're pays tax about the about of forecasting robust Okay. new which XXXX excited economy. underlying what Can XXXX. a Well, implies you your you into guidance, Thanks. your X.X% in seeing confidence as growth, Different out I'm that giving pretty level in again control your look per numbers highlight US you you're engine. on

Carlos Rodriguez

-- I'm trend crystal It's that And we something the think X.X% I ball, I momentum. was very before X.X% if And point have factor quarter we had economists don't -- a and fourth mistaken, in at we're and the I'd it check. probably not fair biggest given a is that. not question. two the just say to look think

quickly of So we're economy the which comes don't it overnight, when some shocks. things is behaves course, the is economy, change ADP, similar believers of unless to external to kind that that there somewhat

the in think, economists exiting So it we're just by what that's jobs. to like the I issued to think this we employment report our will, end up morning, mean, the it slowdown. up could the and was kind lower a number again, of end year rate trends was once seeing economic target to based the if you in the to on momentum due and XXX-something that at but I an thousand the predict, of forecasting actually I

are there there And like surprised into yes, baby though even and tank, bit it is not and should look the people participation the but I harder the is still it people, there little that find by a do we're we bring gas feels unemployment look in still to these that government appears a retiring explanations boomers workforce. do, ability to it is forth, labor around things. economists, we at low force some lot of at and everyone else make And there. but the out every So more very so the and you people we month know when

next the beyond So quarters we think to the bet. at least couple that I of think, economists. probably that for that feels good like And a up

Lisa Ellis

thank Thanks, Perfect, guys. you.

Operator

Thank question Deutsche you. Keane And our Bank. comes from with Bryan next

line Your open. is

Bryan Keane

we some X% well? growth. also at know year. Analyst you to just into about from the different Kathleen, and And going to revenue bit services on guys, I talked expectations X%, X%. only wanted modestly beating just Day the I Hi, factors about what over guide X% as it's ask And had talked now a employee that think, different now we've to little impact learned last Thanks. which a

Carlos Rodriguez

there think we -- about picture. mix Investor Kathleen the get from into that but math, Again, Services. as there's for things I of Yes, are big away the go let as an a just Employer overall further talk Day, lot

Services. funds client include now Employer do in interest we example, For

and contribution from slightly that so, we're Investor 'XX. less And versus versus getting Day 'XX in

Investor FX We pressure an something not also Day. that that little forecasted we obviously, it's of a have bit

Services and over of Day. explain, say those So I Employer I two growth 'XX in years the with generally is 'XX, Investor that would would I think think line

Kathleen Winters

is and those takes. to in those don't But with generally factors, I anything the have are as Carlos expectations. further. puts I Yes, really mean, add various mentioned, that line

Bryan Keane

follow-up might ask to the and Thanks M&A much. what one the add portfolio? and continue be Okay. to pipeline supplement at And guys so just to looking about as to you a

Carlos Rodriguez

few our we, in using list more our than And acquisition did kind Well, just client acquisitions. in the we made fashion. organic we this quarter capital that I piqued think, interest fourth of traditional a do

Card. acquired just acquired Cash we Celergo, We Global recall, you If WorkMarket.

seeds, the future. some really to were investments planned and of some in we those So

call So, an numbers Today, it road, doesn't We're and incredibly for size change very so. just down its WorkMarket five, it's as could really it's but ADP. our but the of freelancers a two, large excited it, of strategically, the the size a lot, market years out about down example. XX three, road relation it the because to there

that use would platforms, So platforms migrate and because that the onto question can or certainly for you right a terms we're that, the hard interested kinds kind in for rationalize bar is the revenue, requiring greater as if us our we is capital you to adding lot clients we've of very additional and besides But looking. the short-term right working our things also bars of been highly avoid will, are strategic impact have is, that the disciplined we're -- in on And the very, our a we returns. know, platforms. trying one to of of of

of of create with Cash some time the wouldn't clients may a but it of bit onto example. we high spend an strategic little we platform we does that was be the opportunity, willing extraordinary So a as doesn't to very effort migrate that an Card our circumstance a did off mean to platform, and to Global be willing like an bar, make exception existing

Bryan Keane

much. so Thanks helpful. Okay,

Operator

our next Baird. with And you. Thank W. comes question from Mark Marcon R.

open. Your line is

Mark Marcon

morning. Good

progress some the it talk was, for But good extended then, really improvement extent the about there you I'm on retention base be should wondering that looking how client we is other to if to with if regards think what can like to you're based about going to sounds the nice You forward. have wondering improvement. improvement that's that? I'm broad midmarket? or wondering expected And broad that areas. more how really

Carlos Rodriguez

performing rest the bit the that So, two as we whether call one other is significant yes, is out at that numbers, very the or try kind or moving a the are little we hard parts of called terms improvement. generate to usually the of it's business of but retention our that business it's most of of in relatively reason the do, color well, to things we --

we an example, it of terms high was retention, had additional our SBS as a very record already rate. what in retention So of business, high but color, in off was

trying call were very to already the satisfying, trying I'll in they but we're those discussions or improve segment because -- very of of about on business top what retention, from after retention it there So, in was modest retention, quarterly improvement to can frankly numbers. satisfying. five where be But because specific stay years improvement away there to is, SBS volatility we're see

the really and was business midmarket it to script. our according But real really standout performed

trying had downmarket single for platform XXXX healthy current just times and for where after there fiscal middle combination very our five increases script very we're Workforce margins our in very performance the wanted of associates very -- platforms and benefits business that difficult so, we're follow called of this had that what our our you followed the and our of was that time said of simpler that And great midmarket happened healthy we're So four wanted taking in a happening business at migrate and all as run, the our we -- script we we happy in clients environment legacy and year been migrated we in version Now. our of both gas was in of we of with onto for is years clients have off more to in we what right what we once that really retention, business and or and business to the hoping part the of a tank. for 'XX to one bookings the consolidated some in clients increases know, our onto new around ACA

will don't we rest And any mentioning don't business Employer to have any of would a say, that -- -- the rise in in the we there Services. dip of places where we have retention we think occasion well, had big I I performed, the in us

Mark Marcon

excitement hold. around That's How we How five it's revenue? relative pay. actually to that when over great. of do terms promise going think in demand the rolling realistic out two there's generate material envision and being to of that you next that should it lot about the wondering a And we the when like I'm that then, sounds on concept years? really gauge to

Carlos Rodriguez

important would very My it instinct and impact, me could be tell but with slowly competitively. little

think very up large And where we we number to that, need already bookings a number, solutions weapon have a year so, again business have every every provide these I arsenal. we grow in being able new to and market the that in

I a still over impact. do we to years, was minds look in a it have this the sound in we potential a at But would very of ADP, that couple I lot Card optimistic Longer Cash than -- for buy term, the broken going that large positive again, course expectations the Global keeping are didn't us without about we business. opportunity but very all record, things in hate what's years and And, but our would back financial course have I years. seven we So of around the say, modest road. over of these a like of down of to to the size the three, next rather relation of five, couple of

Mark Marcon

with PEO you changes on a there? differences when the to take All in market right. or regional Carlos just to with growth the lastly, look at can I WSE appreciate expect the that. just regards any anything to that changed we unfold any on trends side, discern promise that's we should and And then how regards

Carlos Rodriguez

same of every little No, a that I say still we but I the mean, the a bit same, relatively true similar thing under still do in it's says the industry think it's it's where a story year, still, market. it's penetrated

in market there no So addressable think out is I no, is terms opportunity there. lack of there of

to compensation, have follow truly comp to workers so And or no think the which I your risk provides risk. approach business by think also indemnity tried about we you're frankly sustainable is PEO, have long-term on a model. very that by very workers offload on being care and where we health our we've key of run taking which the most pricing disciplined is viable corporate, and that you and I disciplined and really careful our being health and that benefits

disclose fully to As the you risk basically know in our XX-K, that color small a we relatively way number. we

I of key fluctuations by and volatility served health and continue focusing really value the costs. not is short-term us to the think on going I the care And think, distracted that's to we're getting that's well, in So proposition just do.

-- the base and referral of inherent try PEO. We very the exploit large very advantage that installed sales called outside we large having have ADP force in network to obviously a a of

the heard about talk tweaking double-digit midmarket last referrals growth us you results from had had from so, We We incentives these that. midmarket. And and in year business. our great

really it saw results you our business think new translate I bookings. good into and

think growth the double-digit I for in talked about PEO we bookings the year.

there. four is three or issues environment target environment there it's there pretty -- we're very go forth traditional business about to The small I small companies local or for less good around I that. on people It's It's and our years nothing out rhetoric employer ACA regulation of ago, dramatically. that, is obviously back hard PEO changed see regulatory compared whether think enough So services. and with a can other feeling has a a state the that and deal that rich be and but some PPO to

Mark Marcon

appreciate I color. the Thank you.

Operator

from Samana you. Thank And our Samad with question next comes Jefferies.

Samad Samana

then morning. you Thanks good maybe can 'XX. give billion for curious when about added What Hi, $X.X think fiscal payroll strong Employer drove in of to core think curious bookings some taking -- in my color I relative composition, have what you questions. I'm Services. you that on offerings you are question. and as expectations. I'm the in that of the versus And follow-up when it the was particularly about one the additional outperformance some

Carlos Rodriguez

the to of you're XXXX? beginning your question, about Back sorry. I'm telling

Samad Samana

performance strong Employer 'XX within fiscal of Services. the about bookings Yes, think you as

in the -- outperformance. particularly by Services offered are strong drove that the anything particular If in that you there that as stood or by think product services and/or Employer out was

Carlos Rodriguez

where of client we in between last about year trajectory think that even they that of terms the from we line the of of that in couple the the a market, think talked our upsell that's years kind SBS Yes. the A we And we places of about great I generally on at list we of XX-XX results, to with the with. about did "acquisition" begin down had other good were helped historic end conversion more. opportunity, couple in breakdown numbers. and I not were and kind of were terms off And where far new in

great So because we of International global SBS, that but did sales MNC view Celergo streamline. in well, multinational also our the really have we results business particularly had with just

bookings. did was that a business our we business big good they So upmarket new year well, also pretty had good, positive. a domestic a on had And frankly,

with So that. pleased we were

-- some client is based tailwind acquisition. SBS So I of strength. would probably because with I list broad we think probably we had had the the say, standout But

Samad Samana

on to the maybe the needed just from things $XX you part restructuring Great. of that more additional structure efficiencies the savings And how million of additional the my million that part taking by that Thanks or then drive -- driving of that efficiencies can should think million again new $XXX we question. the driven context savings with seems the there $XX is and as that that in that's perspective. company expected about the for what in of to then what come, make a the or of see is streamlined. changes something to internally as if curious follow-up I'm that's a last more that's from

Kathleen Winters

questions, the for thanks Yes, Samad.

the was workforce at charge related to looking Just $XX million XXXX clarify, of layers. optimization, -- charge severance the terms will you spans in the the and span took in to we if efforts QX of

in will drive will we're the in forth, $XXX so addition drive plus of work And procurement to that XXXX. doing that about savings million fiscal

Carlos Rodriguez

with And kind no. done we to because is efficiency of would to little with trying for The of or color to comment gains a add just look done the I bit about your are restructuring. you, answer say we that,

we're opportunity and have in probably very lot -- a think an think and for we organization that improvement. highlight complex just opportunity a large platforms for think global the of I digitization think we what We have of of automation for really they new short-term, the the -- I opportunities because our I for But of we as lot example, with seeing always efficiency. I will. capabilities have

path for And to stay come. here so continue some we to intend that to on time

So -- the we're done. we're I is, answer think not

I that. think, still are working on we

Kathleen Winters

those on a execution energy of of lot little alignment. together is work more facilities areas important, there's a transformation of on, Yes, on of like, projects. procurement, is to the organization potentially work, of there I a in there doing this a more we two more It's a bit kind lot And next and is the add-on those. really that in going there's developing mean, around lot is alignment our work the hard but of What in really lot a and things automation and doing utilize how we're of work projects pipeline. lot set of energy around there also terms just

can whole think I of here. there at we things look is a host that

Samad Samana

detail. That's helpful Great. again really additional added Thanks color. for

Operator

Thank you.

question next from with David Our Stifel. [ph] is

Your open. is line

Unidentified Analyst

Thank operational Carlos, about initiatives a you've the XX of the that system done well underway. years months. good two revenue the last these how new over next the XX will be most you. there to as growth ADP job outlining in product to changes of think How impactful describing we which should over as

Carlos Rodriguez

kind like, thinking bookings from of don't And hopefully of at a a spend lot is made think to business -- the that, the said I over But recent that insult the terms of is that our and I spend to when the at we standpoint, momentum beyond that business. some at I right revenue the the you, this months of momentum new about you you couple having recurring years. the a but on because retention, of don't ADP XX we time you XX mean more in time look months, of last look have timeframe. discernible is next look tend and acquisitions we thing

just the implemented -- to of actually our the because next-generation moving have getting size really new I on are sold product overall products getting the of modest But the our think bookings. needle relatively the impacts have that that those really I start business. and business on ability strengthening line, think revenues, our now

the of it's that are been around horizon that spend I a done. that it's it's on couple not of change of little around last voluntarily on. years. couple something We number moving the through we've terms I really the over things is in of becoming say time doing for, on increasing the some of retirement a of years pace more just the think of focused that that the we've But faster and I math also efficient strategic or that the way XX-month incrementally because we working operates. alignment a not just really lot bit of whether things and of other lack things the the of So kind initiative excitement not the lot It's we that, a of last math have because through that the

products at improvement, But of our because I getting we're the reasonable and of actions those that force, high business we've our rest continues of that a execute some margin execution sales of level. now these we're think plus Unfortunately, our benefit that getting -- to very the taken.

satisfied with months. less very to performance the don't satisfied I we're So very next be over and happy and expect the XX any

Unidentified Analyst

Right.

or impactful, is I some I service guess could think more sales. been not going always which the trying do that kind in if initiatives the understand also fair. retention job, months The of question to was an new or think just impacts you over kind over which years. operationally, XX obviously be the obviously, it's whether be so, you've impacted done levels, I'm or a fact contribution great and last to as of will of even it's several next product you

Carlos Rodriguez

Well, that's a since story. you mentioned different XX months,

that Workforce example a if would the over Now kind done of that the XX-month the moving the we kind we've particularly ramp timeframe, measurable I you around will next-gen. bookings for next-gen on from charts will, we expect in So be from impact business what the upmarket. XX-month horizon, on the the have But into the products. there things new of and think do the expect the our on lines I given that grass,

it think the helpful incredibly business, platform has been I PEO impactful Now which also competitively incredibly upmarket our and in now and us. in Workforce been We're using the in has for our impactful. HRO

competitively. next-gen now consider Now a be we as be next-gen to there Workforce to So have we out and well platform, because very large

and that the and that satisfaction sales and impact is scores, has probably beneath single I client reputation really for of So force I that referenceability. surface about distribution helpful. because we improvement think improvements tailwind, NPS talked the I on that because very that's got and referenceability big really This of of the a potential out our retention very we've needle. large have growth network And think our tailwind, alone satisfaction in move there. And that productivity client improvement kind and any any them and provide can think biggest

have in run the downmarket cooking marketplace incredibly the platform a hand to then in could just well well continue terms And execute as there our innovate also lastly, things we there. that well in downmarket continues platform of as to they couple think the and of and our strengthen things we

Unidentified Analyst

or really labor with just will typical on for reports Great, stage we cycle? And at paychecks that any seen this one just like have hiring last the clarification. you over is I of that the this headlines other in fee? report looks small from it the morning months, in and just question, downmarket the of tight of that business for is several markets. their and looking your cyclicality. impact the And some thanks monthly And the challenged business reports

Carlos Rodriguez

I thousand, like I little business -- a even but the I there, employment employment we to own of disadvantage, question control could go -- business, feel it's we're and not positive, was growing. I that have which kind that economists of at a my have think you it, turns of prior there's is we XXX-something that to, think more that data our hiring issue about I small that have SBS, back but first report, from and looked around in that's look the big number at there that in large roughly will it's on it, on that slowing the would look of we employer kept over is SBS the compare true multiple really pays year. my, there pay, control question you was if probably one it's of headline or which our of pays that small sounds fingertips, it's if It have comes it a I think something the is at a a at, have hiring but it subset I nothing, cycle And based Not probably don't mean I don't is growth bit as really payroll my I some -- I for auto SBS. there's does down if for tip anything anything number, don't -- terms but comparable. per I what a a months. read our there. in engine, not the but per impact seeing -- sure years not would of But to largely sure include that trend, I is really about be X.X

So comparable -- it's roughly

Unidentified Analyst

rate per control year's pays to Last roughly SBS in year. growth comparable this

Carlos Rodriguez

report. the fluctuate Yes, doesn't that that I I so contradict per can want much But consumer in the part happening just small saw that anytime out that business believe to of it's pay what's control of demand lot in of that from economy, don't to hard is consumer here because It's there don't is feels spending employment near have the yes, -- similar-ish, and a business it economy. month-to-month, to kind employment small mean numbers just you future. serve dramatic our so, it -- slowdown a going and you think this sector, in the there see

Unidentified Analyst

you. Thank Great.

Operator

Thank you. James from Goldman And our next question with is Schneider Sachs.

James Schneider

for morning. the see retention my basis 'XX, question. Thanks in improvement to the taking fiscal Carlos, Good points. good XX

downmarket what If about you the And improvement do of clearly the look 'XX And 'XX, talked your line retention downmarket the expectations. retention haven't and share fiscal better kind midmarket as and segment to time. performed from? you midmarket to expect into kind for the come Did done back of go by some upmarket. you've look you and fiscal at

Carlos Rodriguez

we is are way the there some there. even plan in or year build outperformed The probably midmarket though fiscal our 'XX, our tweaks expectations here for 'XX really

would a just retention to kind to and change. business various our are to we flattish, retention, call -- expected of I back potential realistic of I modest would some the example, getting record be of want would in be others kind absence client because about for improvements high the there in considered, for close of We parts large so

we as the me. get platforms So to of in expect our benefits the from Excuse an further example we improvements migrations consolidation still there. in continue the midmarket because

Kathleen Winters

XX as the business where at we record board harder puts pretty and segments incremental modest, particularly get across basis terms in and go focus that improvement but points pretty to that we're It's points The continuing something basis takes, pretty in is always obviously from to and retention evenly spread at next being market different year there's said XX evenly it's improvement across the of and to for on. small highs. higher comes you're levels, and the you improvement, high these but spread as it

Carlos Rodriguez

retention are little years. were higher look we piece at didn't last, rates XX a the and it just then at And we back color. now of And last pre-crisis. retention over rate, were I where one go call our

if and rate heavily our and in business retention So Services was part downmarket you if tilted a business is mix now outperformance than is towards the it at look fact more 'XX, than Despite result Employer our large that's our you of the of upmarket the that as business, our lower 'XX actually in today. will.

our has natural out So XX has so midmarket is upmarket last And forth. than the we business are over because in downmarket business. of business bankruptcy grown downmarket rate, the a business retention faster years and and of just lower

is the we've retention rate. though than you rate record even upmarket told lower midmarket so before highs at And SBS still that retention is and the

the think what downmarket that pre-crisis, a is fact ADP I is impressive. larger very, retention despite was today much a it's overall the higher it than So business,

James Schneider

to see. business. then the good on PEO It's And

talk Specific that called you competitive, out some next of of I and of some how you the Carlos, quarter. increased offerings of in was improving a metric think, couple client forward the what kind items to in feel guess, it. a about kind about was going couple related may I drove quarters? churn a that pricing, do be was of Can you

Carlos Rodriguez

this. etc. now where a bullet have there some was had renewal impact and kind the are the care back renewal of I silver health the what no some of good terms say costs And health on with care the relatively of looked it cost. think and question. industry, feels we kind a was for health renewal, that overall may us And norms 'XX some not it, time find in part hard standpoint by That's find a it and of which of I by large to is diced We more of kind like at drove by care we we that a of it's normal client risk anomaly, spent of we employer size because from to care, lower-than-normal have. pass-through remember and sliced out terms to a trying that shopping health it's pattern. employment, then health we so just client care a in had line health whatever geography, take But care we historical would of we

the that with think we and our think to will in that renewals because the way out expectations. happen work of But it something that news, can reaccelerate growth means we actually good were our line Now potentially that's there.

of themselves year. news because for little the about excited with currently grow-over when the we last the So last year's good a got a we of story surprised be were clients a issue old may little bit and over

are the my of finger anything mentioning. I even these Now, of though norms rates inflation put with better healthcare in that the But system, historical aware year. really what may previous was permanent kind but or kind what's there be back compares still can't previous, noise not to I'm the to other that's on

James Schneider

you. Thank

Operator

we question. question from And And just more next our for time you. Huang will Thank have with Tien-tsin one Morgan. JP be

Tien-tsin Huang

know time. it's Appreciate much. I the Hi, late. so thanks getting

alignment that go to on do margin Curious XX%. have left you done it where early done I'm Just XXX outlook. it you the provided what Day. mostly the we XX%, is to I you, retirements do and margin another back mostly at get service with to re-basing the to what's the know curious Analyst were here walk that but to to nice if left like here? from what's focus sounds voluntary

Kathleen Winters

Yes.

And be okay, out so what things to side. So, some as working if I years have, will but go will. around bit put and do the some we're else help got but in and organization the doing is in us really out, helps structure, really think it's saying lot work to procurement a whether two term pipeline? just office. there organization, And what you we where a not we've pipeline think near can energized across years we the after looking we're can that and will say, and layers little kind three on us. So spans term then hard near or the we the I I what at we and could benefit of front-line at that, there And lot procurement back automation mentioned is more that a only org of looking earlier, executing as work, we've said, been that us

opportunities. is of yet those I in think identifying terms a there to go lot

of So identifying lot on be to. we'll a execution working things have lot and still new we do a to work

Carlos Rodriguez

the set pace more that change. the bit be office more committed team, think to I think, of is -- to be up. I of transformation increased mentioned And I a even this whole as think we've kind little management to explicit Kathleen

we've think about. that been talking I

actually clear, 'XX So we already. to be for very initiatives have

that's we didn't that -- there. -- 'XX So wasn't misspeak

yet. XXXX, an and things them we're about not now number meeting have will financial And initiatives, talk talking even working it's we're that 'XX some built about But during guidance we're that well. ramped impact expect along our though about process we're to we're fiscal operating in you So terms plan to just talking not a should working on different getting of 'XX. talking stage be ready those them and we're investments about what of of on into things of because on year in that of at lines the things that's that and have us Kathleen mentioned, we up require and already as

one back the is you investor to stay rates us asking to levels the Since and side, On in done at today. heavy were is not a even same the interest 'XX. though help That would things reasonably positive getting all headwind these Investor negative Day the are us for going as about we've be if to thing margin, they days.

something time. you math you the Day, be seeing forward the we're forward the expected go to with you we Investor at back provided we and I now. If saying balances are unfortunately do what can what curves think curves And the the to different

Of impact might kind though That's we the short-term of have rate. us less on, optimistic an come rates course, than our hats down. of and on mid-term even

if I were get and Day. Xs for that clear you we 'XX relatively bit bigger activity very 'XX And a as we But I can million about math a little very and versus the a poor. up we Xs, recovery result it's continued Xs if think some of a in for is it's number more about for future So million and guarantee delta hopefully $XX inflation, there. $XX today, think as 'XX, have I outlook move could stands the positive the and economic Investor about a it

Kathleen Winters

in we same you interest of today, same see that the you we're just in you'd client expecting 'XX as that in fund I curve think if forward the be assume level assume 'XX. if about

Tien-tsin Huang

Yes.

Carlos Rodriguez

are stuff Yes, of I of we lot have cooking. stuff, said, lot like we a a

out we be will And that So some learned a of notes last I debt I'll able of we're here environment, just not point being point a took necessary. adjust be a to funds now yield all reference the yield to on pre-crisis the -- we've to $XX terms agile, the just and our X.X% if adjust it in to we've billion night was learned I to client the $XX before billion our down yield, on X.X%. was think on that approximately getting balances. in way funds to in to And X.X% average back our we went client when as

X.X% And X.X%. good and going from to less margins yield we to X.X% is I news improved than profit were X.X% an grow improved be Because from to to X through okay. the able X.X%, so, is will think if

to So continue find margin. go zero, along. We'll will we grow continue even if will chug ADP to to and continue ways to to generate

Tien-tsin Huang

know you can what I you're Yes, control. about thoughtful

So promise. just really, really quick, I

on Just last know year. in of of lot side, We've trade assets questions. a the couple I a Carlos seen PEO the

curious that one changed if just scale So in your thinking I'm maybe up PEO. on

Carlos Rodriguez

I'm sorry. more Say one time.

Tien-tsin Huang

take Yes. acquisitions, We've maybe seen did or on to your the right, deal front a in I just I'm right, counting months the do couple on place curious it. want PEO last here so. of changes If nine that thinking

Carlos Rodriguez

thought I you I referring to misunderstood. were I something. heard and trading I

Tien-tsin Huang

my I [indiscernible]. is -- which Yes,

Carlos Rodriguez

alright, alright. That's that's

paying quality position sensitive have capital again, I volatility discipline deploy modest business think it. again, we after to that But do business, terms we've broken a have risk think think -- in another that and and valuation. of what and terms we that is of we're I along, after all for capital the the the of same you business. we around the than of love is I creates matters but at dimension buybacks, buying, record, competitors their a most the had we have more of the in the which in you're we disciplined we price, PEO and we dividends share love And excess highly would PEO our risk which take more potential there of because about in business, pay

only or are we this will these that. tell, And history that trading -- so we'll whether I I or that's recognized contemplated leave understand at not it assets are guess, we fairly fully well but business and

that think and it I it. that's sure due any is it diligence, just I'm factored into kind careful we what about of

But arise. So an would grow the we opportunity are opportunity PEO business to to where were our we inorganically love find we if are. to

Tien-tsin Huang

clean it. Got Congrats a results on guys. Thanks. good

Carlos Rodriguez

Thank you.

Operator

concludes and today. ladies his over Rodriguez program am pleased hand to our for I And gentlemen, for remarks. the closing portion Carlos Q&A you. to this Thank

Carlos Rodriguez

year hear for could our So to want came obviously had through. I joining us a today. We thank optimism it you strong and everybody hopefully

new as we We're platform, which solutions, make global lot talked power think on to in going could is It it's is, the next all retirement voluntary and bit excited. come our our on important, going years we brand with call. stuff a on. ADP incrementally them more didn't have force And and next something to We years help the sales I up that I five, of us have a think, company generation come think about platforms. executed But very is program. We our hopefully early new should our productive. that a for these XX we I three, think with little more that and

it to company we back just is those a coming it's so allowed was you and value every changes that organization who actually And And that last our say about thing it not service. it thought commitment cycles. focus a reached them our survive second through And many say I'll And that for it long. deliver to is, are reflect has XXth year birthday thing on ADP, make to company. I'd keep not this that aware, the to is as economic many what and through the that our I on to deliver to technology to of one so clients I

by reiterate, thing I key the probably what our to outstanding our that I to and returns outstanding for products the of our shareholders. deliver the on by stick staying by then associates, on great all my they focused and would success think listening is clients. and deliver service that done need focused that with predecessors is say, staying them they would We the supporting deliver and we around we've then and them us to and our

think your take to We work the and our it's so seven optimistic our today, Thank torch incredibly great it. interest we us remain carry associates future and in hard and I positive of continue years ADP. Thanks your execute support appreciate for to been and forward. for strategy our really us who, a joining the Company, about and continue again appreciate to and you. run And on all for

Operator

gentlemen that And the ladies and with call. we conclude

day, everyone. may Good disconnect. You now

Automatic Data Processing (ADP) 31 Jul 192019 Q4 Earnings call transcript