Automatic Data Processing (ADP) 30 Oct 242025 Q1 Earnings call transcript

Good morning. My name is Michelle, and I'll be your conference operator. At this time, I would like to welcome everyone to ADP's First Quarter 2025 Earnings Call. I would like to inform you that this conference is being recorded. [Operator Instructions] I will now turn the conference over to Matt Keating, Vice President, Investor Relations. ahead. go Please

this and XXXX Michelle, our to First CFO. ADP's and for our Thank quarter. the Call. welcome, Participating Fiscal Earlier our McGuire, Earnings and Black, we today Quarter released CEO; results you, Don everyone, morning, are President Maria

earnings available presentation investor SEC's that today's call. on Our website Relations Investor the our materials also investors.adp.com, at find are website where the and you will accompanies

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

excited strategic highlights. and our with first share growth, of across let me This joining everyone, the you, we reported to begin the margin expansion X% made morning, EBIT adjusted first considerable in some we additional three EPS strong Thank for I'm XXX adjusted quarter, Matt, quarter you, growth. included financial thank that points progress results us. revenue priorities basis but XX% and

perspective in business Employer as with performance an portfolio year first was small from bookings strength broad-based retirement solid record business our benefited quarter. We start a had a the new This from services. to volume our continued for Services

and business the at pipelines demand Overall, our our Our HR its growth, end steady, momentum from showed of year. quarter. remained the business were outsourcing businesses maintained healthy HCM last strong international mid-market and good and also new

retention rate Services only Employer slightly. QX expectations and declined exceeded Our our

driven client in all-time mid-market, Our and reached quarter, enterprise by improvements a a first businesses. overall new our outsourcing score satisfaction high for HR

expect the we our to continue hire forward, as pace. for Employer strong control X% first satisfaction moderate to employees continue Moving at levels clients Services quarter record pays retention increased to our a support our per results. client

Finally, of growth expectations pays PEO our as X% worksite of X% per the than average business more modest growth first new in deceleration bookings revenue PEO of further PEO exceeded the control and impact growth strong offset for quarter employee growth.

our excited first are the quarter We significant by strong equally progress and financial made priorities. proud of very results our across strategic business

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and take And associates shareholders. to all. performance us with I'd outstanding recognize moment for I'll like our are deliver positioning that, now And to turn you our and over clients a whose consistently to it Thank our to Don. efforts

first provide fiscal issuance. Thank for which more I'll our Software our recent acquisition the our update you, Maria, our everyone. on morning, color and XXXX outlook debt and some good results quarter then and now includes WorkForce

with ahead and Let segment increased ES both me our in organic a expectations. reported outlook. our basis results Employer and coming basis currency Services of begin revenue constant on X%

and modestly new the better came healthy year. X% prior growth As business versus the start guidance. bookings backdrop anticipated. a to retention solid demand full to stable With slightly Maria year, X% maintaining but in were than in ES year still our declined pipelines, ES we are QX shared,

our basis due to to X% met pays forecast full an growth in We X% X% in on losses control of business small the and full a continue are retention XX expected forecast for ES continuing decline higher out based to quarter, XX per expectation year. we of point to the increase year growth business to rates. for

funds average funds we in QX, interest growth. a more bit Client anticipated increased revenue by balance helped stronger client than

declined impact curve is broadly has update, offset since the growth. partially last our this balance stronger yield client our While by funds

revenue we For client reducing the year, interest full by million. forecast our are $XX funds

maintaining from strategy our funds client as borrowing offset impact costs. However, entirely almost we are lower rates extended lower net reinvestment average are by investment forecast

WorkForce revenue performance to fiscal X%. growth from the acquisition, QX we to ES range expected revenue are X% and our on growth our contribution ES Based XXXX increasing the Software

Our ES outlook impact are fiscal adjusting the incorporate On basis to margin now points in year of an funds basis, full revenue and by basis and a continued for QX, operating client 'XX. expected points acquisition margin our increase to of ES driven forecast we leverage increased XX the XXX interest both growth. XX

Moving on our average exceeded to X% and of expectations. PEO. Revenue the of growth growth worksite X% employee

than PEO pays Maria As the growth. new of modest per mentioned, bookings strong in impact deceleration control growth business further PEO more offset

XX a result, the and which are X% average each growth fiscal midpoint our we X%, basis employee X% As XXXX from of revenue of at ranges X% up PEO to worksite forecast. to prior points growth the now of expect

per per control pays growth ES PEO control slower fiscal We in to continue expect than to 'XX. growth pays be

in revenue points growth. than QX, basis compensation stemmed is we stronger anticipated margin mainly versus last growth. XX The year decreased program decline which due workers' from less higher costs margin primarily PEO zero-margin to points revenue outlook. basis to and prior XX is better benefits higher We which down basis XX our now fiscal points in margin and be expect pass-through between XX PEO 'XX, than

revenue together, forecast X%. increasing to all fiscal XXXX to consolidated X% it our growth we Putting are

basis expansion we to We EBIT While year we margin WorkForce anticipate points. our now from revenue expect full adjusted synergies to forecast it margin Software acquisition, year. this future the XX fiscal pressure EBIT XX adjusted of

$X issuing interest in September, million In notes. fiscal enhanced corporate billion our XXXX. will And capital by for XX-year by structure expense addition, we increase subsequently, about $XX in our

tax After issuance, X% anticipated expect debt the growth full for a XXXX. continue We fiscal EPS to year of now XX%. forecast impacts around incorporating our of X% the acquisition to recent and adjusted we rate effective

I'll to now back for Michelle Q&A. And you. Thank it turn

[Operator comes TD Bryan Instructions] Cowen. Bergin with first from Our question

for on Zack Bryan. is This Ajzenman

First question bookings and backdrop. Employer just Services, on the is demand

just kind And we it quarter? have in the dig areas the follow-up. then QX can you into progressed and of of strength through a If how

Sure, today. us for joining Zach. Thanks

had good We about about the demand demand. good feel overall, We we it. a So feel sales great quarter. HCM

We and broad-based. and have organization. sales a was solid, was It marketing it great

retirement called of our demand is down I a out think one market. from offering few areas in perspective, strength, which of a I the services

to and our there execute continue strategy. opportunity against We

And in international. offerings in then them continued to saw mid-market, our so strength the excited Certainly great the outsourcing progress. see we well. as continue And HR

great that's international the the quarters a strength that last X heels year. think I saw we in on all of story

think demand I And result. broad-based the the with remains pleased consistent. pretty really So

down-market, companies the think buying. are hiring and still I they're

the the certainly do in complex. in reach tech-only well. into think offerings result It's PEO was offerings. still you not that And our extend those mid-market also heard beyond the outsourcing mid-market, have easier. as getting very solid We HR any I the

the we bookings as are be pleased So is with why we international. what's -- execution as in we're global new to space, which in watching the always business again, happening and on continue

retention. it. PEO Got a then And follow-up on

above in in came retention employee worksite like plan QX. sounds it So

balance improvement As we anticipating in the worksite offset you fiscal -- 'XX? employee PEO is an to control? retention pays an still the year, think for about are of offset enough decel per it and And growth the year-over-year

So the the in biggest contributor employees, was to worksite average really employees bookings. worksite outperformance

saw as generally deceleration pays modestly retention So compared bookings is as contributed what to the we so the or that we that. did contribute. first quarter piece bookings. business to the well. year-on-year and contributes to quarter, but biggest pays new really relatively laser-focused and PEO control. that modestly we per That very really for really first the only 'XX still accelerating PEO strong Retention saw focus. light business in for It that have in that been That's was expect execute on the that's up, was overcome a the We've new is contributor, 'XX We be control And worksite is case. what that albeit well. can does fiscal remains employee have the on we per PEO year,

in but about, slowing of just PEO But We're add color in maybe for definitely sure, lower what ES, little just to is of we pays Employer the Maybe expect in a later. the of that the to color going bit terms outside out some control growth. called talk to Yes. showing growth the than pays PEO I'm growth, see we -- add to to per control growth Services. do That's

Our next Markets. question RBC Capital from with comes Ashish Sabadra

revenue double-click follow-up on a This for could of profile revenue the in Software then annualized Paige And maybe and margin what's is growth the WorkForce was we that. David Ashish. profile? on I terms the after the business, if wondering financial

Yes.

do we maybe prudent let the acquisition. I'll David, Don that, before on element, of through kind talk the rationale financial So strategic comment maybe behind to it's the but just

aware As they're company you excited their for to it of of support can is we've aware imagine, have very speak of capabilities, some opportunity a able This WorkForce we're that marquee how pretty clients. aware today. been to Software time, quite to the to some

have serve well-known the about about the remarks, talked around X,XXX -- they in we companies global marquee These prepared think brands. I are world. they

couple excited really to it's whole. We're have on I and we're ago X. pretty clients. an day we're excited as a great October excited So pretty of set. to great also a clients, And about a incredible tell weeks addition I a for But of you, the a set was product fantastic XX, this team. organization domain the expertise about there out about in too, in space. product marquee team with It's the

ADP's deep incorporate we're add how that to so -- overall really our further management to opportunities. And we expertise with this organization to workforce and we're solutions really excited drive

strategically about about future, for kind implications. walk of But story growth you it. and through Don pretty excited let I'll we're a is the this us financial So that, with the

Yes.

I we're get question this going expect later David, to on. So

a maybe the just elaborate acquisition. impact on of WorkForce So more little I'll Software bit the

So we took Software, a is of just service on certainly serve of a that see We the through, ability companies as if the the the outlook, time marketplace. or to revenue global as payroll at about the offer attendance the with throughout Out HCM but remainder you that And up 'XX more complex the from growth broader WorkForce X% of of the results the now is now we're consolidated look increase to expecting certainly And and business. quarter. us transaction had gives revenue and strong from the is this our much FY rest in side. for management to half us, to well. Maria first year strategic -- coming coming our good ES expectation, balance a WorkForce strength went in

expectations, some the move weeks transaction only X we that some of look things ago. the causing when on EPS additional we so of and some closed drag the And are and at on expenses our about

we're not to be point. terribly going So on precise this

remember to some So intangibles, the to biggest are expect do the we modest itself. cost of deal important integration debt It's pressure. coming from pieces

relatively large So look do a they respectively. a that you lean run from this when adjusted to And very expense -- our want is themselves transaction it's nothing -- they're on to small out a that, synergies relatively midpoint did not at with And in effective. expecting significant our move this I were I we and because what unusual. XX pretty capability. of the company XX our of we're pretty ES point when say a then and points, down and you margin EBIT margin amount and

as WorkForce actually And is could more is so drag? the from WorkForce of And anticipated that question is from Software coming all the answer Software. be drag the

are compensating So for businesses other the somewhat that.

anticipate do in margin the a we point X.X EBIT transaction So about of result of fiscal a pressure 'XX. as

be X% of it's a drag. growth expected to So you look if more well, bit the at if EPS the -- we as than

to couple transaction X early line, very a ADP? get and be we'll stories closed is, sharing us weeks to business, couple quarters, we coming the back I about that. short And amortization question and and we come and of we'll answer that as next client costs, things of going some when in overcome the I'll of it's most from this dilution to I said do give given only is quarters think and And think earlier, wins interest parts And a be intangibles accretive about we've this success the of is have, the ahead I but then of bit ago. integration outperformed over jump So of expense. so is the in anticipated excited other of

Mark question comes next Our Baird. with from Marcon

all, really do you on on a of quarter bit And scores drove Can little the First congratulations client about a results, mentioned follow-up factors particularly. are of some Software. like to satisfaction first at I'd strong the that? Maria, highs. WorkForce you that then talk all-time

very you much NPS excited that the pretty as quarter about well. you thank the congratulations. the had. And We're Yes. To for question

high So first had And see the a remarks it what was strength. Again, in broad-based. we prepared all-time quarter. I an we for is mentioned did

I specifically across last it's as broad-based, that kind the levels record been been of couple near we've really and relates making the the various call-outs has years, of think it to the business some over really been that businesses. of

in the A I about think we've product, we've about mentioned the the Workforce from service talked lot mark some product quite comes as our extend bit a those the We've the we've of the the to of reach we to of that I making Now. talked the that the last mid-market. couple making we've mid-market. and that speaking we tools organization. provide been investments some been been investments into years of in

itself done During the SBS And mentioned the it AI the thesis remarks, of and more invest specifically, the and for that again, favorable PS resulting in the I we've and results extension organization. it's pretty into as generative making some other be greater frictionless, work also be proving what to of we results, our in behind true clients the easy retention service tools seems things SBS well. is to the our in it

the kind for year-on-year, enterprise kind was outsourcing on of and an record a And businesses did from year-on-year from record would basis, it from a the at say broad-based quarter. almost a NPS mid-market, business is HR I perspective, rounded out. biggest year-on-year So a perspective, see improvements, of just first We have every but a those perspective levels.

you When terms how in soon Got walk Liberec, of much of market going it. the that little penetrating bit How can of to international demo upward continuing sales? tool end to chance surge potentially go regards WorkForce with start you go-to-market will you see fully seems that's marquee fairly imagine But We aren't? obvious. it's to and me of was those as I joint integrate plan? well already we a talk of impressive. opportunities be to mean when clients? in terms within do the the as ADP their how able doing terms Can how rationale include similar client in that? pretty are and plan? NPS. that you to What some I to what's a with about integration which we to does the them had the long just you whether domestic the a -- up strategic going will quickly Wondering be base, regards Software,

Yes, single every really sure. I they're By because at we the the we of we've love way, exact will, this kind same ourselves if questions Mark, also post all comparing been all have. as of what great organization and one questions, you signature, as looked the we asking your that started

nature. And you But it's I have most comment of and things the of so imagine you probably you full perspective exact too of clients types on imagine, some formidable clients. if think overlap the a enterprise the that marquee well it, that call to ADP that global, early on they clients, of and know serves

imagine only overlap there's that can You there.

to heels me of we on the So mentioned We're adding Walk we're because excited, you what and enterprise really and Lyric. and we're excited conversation today get HR focused about you're offering tech. with growth that the our you Lyric on I pretty opportunity. is is is go-to-market where Lyric what exactly it, saw global which to, into referring hope what with this call

great now global call extend to as opportunity enterprise story of for that space. MNC, Software, an that's Lyric marrying it, reach WorkForce we into the imagine you If our us exciting

the intention. is today. an sits is offer where It it that's So that

ADP the that have across it does to does I solutions. workforce think of our offerings add management plethora

in you imagine, if we have already products that space. So

space. in partnerships We have that also

We have the products mid-market. in

and have And market, down-market. have partnerships we attendance down time the offerings XXX well marketplace certainly, also over we of, We I almost inclusive the also have there. in in partners think

it's So that be is to excitement. overall a global in space. our and that enterprise great a to married And this suite, Lyric to offering for is our addition going growth us, directly story specifically

of one and as that's so each questions And every speak. working through you the and the asked intent, we're we

comes Scott from with Research. Wolfe question Our Wurtzel next

to the and to very segment back to I the start, were go to bookings wanted the side. PEO results there on encouraging, thought especially

a to be both. that bit on your to love And little packaging benefits just So been that bookings very a there a I about the sort of has little color bit would combination change to sales and any of would helpful. hear Any of strategy outperformance. offering

Sure.

I think it's focus and execution. intense

been And in speaking We've so reaccelerating has the think team bookings. I on the pandemic. the been been since this focused. very We've very about focused post PEO strangeness

I execution team. think great it's the so by And

gain the bullish the pretty about proposition, proposition, value value to I've probably offering, I PEO listen, since about this. think continues only it the But been and strength. XXXX. Well, in

mentioned that nature that space. offerings and You health in sits things of that squarely

need of are company retirement industries of of It's benefits. best-in-class the target with a PEO target you here PEO ADP, the things competitive best-in-class If a types services that It's offers, offerings. offering our at that's PEO we the the health workers' our in compensation program. you market that

continuing think clients always say, employers that's And earlier I into I not types for said lean proposition. that it it's I more getting today, and those complex. only of easier any so as be getting to And value to

laser-focused it's a execution. think I so organization it, we're of I sales think to strong our byproduct And on be and aligning

there That's helpful. opportunity think maybe sort customers Got maybe about as is acquisition. the your an incremental opportunities. as to on And it's I to then WorkForce an a serve enterprise-focused well? it. I Software And also solution. we this just revenue -- down bring Is there as mean know of follow-up mid-market

question. I the bucket as again, Mark's think So in that's same

of think big is a through piece that time. we what are at I working this

that space. in their think have they I have they clients, certainly across thousand clients

the of the have you in-country varied across word we go each offerings. mid-market, again, segment, one back the plethora, if big that upmarket use through offerings I describe to way again I sort the down-market, each it, global think, I the across to businesses,

Asia Pac. ago, a not offering were too in attendance long we fact, bought In actually

offerings. we market of And to and array sort and how through in go We that. so this have have proprietary we partner and we offerings giant we organic

way the think I easiest by think client. about I it that is client

clients kind so client are sure the that And solutions Software's And clients. think of possible we center, put we ecosystem making I offerings will into be taking time it, a the have we of our the by sure look making certainly, absorb offering call allowing and for client right mid-market client, -- best and our that close attendance we the as the at at at time. right they WorkForce the

comes question Jefferies. next Samana with from Our Samad

echo congrats Don, I'll maybe quarter. on good the a first one for you.

M&A Just kind the as take that's size signal the WorkForce Any in strategy your if signal? multiples transactions. that I we of or is about bigger up in of I be acquisitive have a one a this think the is that one-off to Maria. of a more overall? ramping are whether as willing then a deal, where a part it's state Or more broadly follow-up a for ADP maybe broader of should or And company

Okay.

acquisitions the of the So dollars, terms Yes, acquisition question. ever ADP or the in done. larger thanks definitely for largest absolute of one has

did back. number think of acquisitions I a we is the some lot when those Although than was it a bigger of company years

So I precise I think M&A than in our be don't more it -- fits think that. squarely.

they're to We make need for last platforms over we fewer the changed. the to time, we've thing. so, for hasn't making strategy our sure to make we do cleaning our We look and get time that same offer for sure they and complement opportunities been a M&A need our quite sure of and opportunities, Our years they or XX don't some portfolio looking additive. lot complicate up offer. Spent but

good making that recurring particularly model be at so those go are as to important the and we at important And us was will to way is looking continue adjacencies things important acquisition business to is things looking and us. the to model, this additive that in sure us, the revenue tight to are all market,

move certainly, things And our opportunity, us for an haven't on all up we that terms at have So continue be really and But we're we additive again. how to going we'll looking will to and show of if what we M&A. are changed approach we think look. in philosophy we to

then, us question is Great. on And to a investors just This lot talked have Lyric. a Maria, maybe that something about.

there's thinking now? is from Lifion, market we've moment an the and with I And that Is now it should it a maybe rebranding particular going what Just about is, builds the it about led right, maybe this Is product And this gotten was it inflection demand perspective, how which focus to revolutionary what see question we're an was before. rebranding, -- a the on inflection reaching? that evolutionary guess is the moment? fit go-to-market at to in finally we forward? like led or

I'm so time. Lyric talk to I've to some asked glad about Samad. been you excited for quite

Gen name So just Next HCM. the new everyone's just is Next saying clear, And Gen we're to level set, Lyric for HCM. I think all of tired

we're listen, Lyric couldn't market. part I bring into more But Personally, love I -- we all thrilled it. be aside, to think HCM of ADP that name. kidding the was the

worker of alive in with it the to like perhaps something the static have comes emotion. a rhythm that's didn't sure was making it's of past in and looks that a right ultimately Lyric type to name. evokes to that name think that It I the the what speaks environment today's it be

And name so I think at right it's right the the time.

I think answer the why the now.

I detection ready designed it's its It's HCM we of space. world in it's humanity design about allows what from and really anomaly for orchestrated nudges. as that allows mentioned I drive person. earlier, that things, that flexible workflows. And that how next human-centric in it. product, It's to intelligent. offer around And flexible, is speak with is think the is This for this is and It this the can everything for such mind. as groundbreaking inserting AI generative

and a unique, is a it global call married and strengths unique pretty of so That's payroll global is to, and it, service. global ADP. the we're And other HCM, that excited. it It's offer

is of And it think ready. is the so part market I

ready. I think other we're part is the

And been there's so as we unveil this, from clients. the tremendous demand

we seeing Tech. reviews. saw We of heels of the great some Mark just think analyst I in functionality. the saw mentioned HR

see We also so think that And you days. But I as can is there. -- pipelines. early still it's out the the buzz imagine, in

opportunity financials. So with time contributes to it's to offering right ADP. it's growth ADP time Married Software we're the at that a great that lean the take some right it to right the story. think until going a product overall from I into perspective, product the it's the in, now pretty growth WorkForce We're folding excited to But name. for

next comes Ramsey Barclays. Our El-Assal from question with

to driver. not here, us fewer rate was on you also, I'm maybe the Retention what in the drivers And sure the technology, expectations. products, outperform bankruptcies. continues Can quarter? if an SMB important still update new retention that's

Sure.

So I them a of I some we is yielding all set, talk better things make it into best-in-class investments earlier. happy drivers. product to mentioned service, experience. that the think about the the Listen, we're doing, our of

You NPS that correlates on the to see retention. directly NPS.

So down will to perspective or I have held. in businesses like we some quarter, or we we that the think the SBS see small are results slightly did say of see, from was the outperformance while slightly, the that first I'd structural. retention an did declined

business kind all normalized. 'XX, looking for belief is how in our back we're at the rates are year normalized rest the we the out we're not while that of the outlook fiscal way of so the from to And of almost

the we've businesses were do also still we so some at our highs so it, year on could many that pullback. be how retention. record of specifically, Part there expect of And modeled last

will best-in-class strong highs, businesses We're at business. this of see out and we're specifically guide road in of and around continued kind that -- modeled the that those market, is that favorability, to relates record we were the as ultimately on it that Listen, assuming in think with I first didn't the yield quarter. at assuming in the some strategic down of kind So we pullback hoping between small believe we best-in-class coupled products our but time the strength execution service retention business, map environment, prudent. those

Could reserve the better expectations And me also margin main they listed expected full came then And elaborate for the in your for on you PEO around comp. drivers is full Great. a and margins, anticipating segment. there? follow-up for are releases year, quarter on you year any the you than in workers' the

in last that this year think don't I recall, I at As time.

curious. was I So

Yes.

had the So based better PEO Ramsey, and firstly, the quarter. really revenue struggle we the on were margins in that certainly

based -- revenue So wage rates. also stronger employee some stronger worksite rates and growth from on help

quarter. for but So small contributed of in $X that did in compensation bit not driver a the the prior PEO. releases for years. anticipating see biggest margin the reserves as certainly, million did in in little And improvement workers' release to was as a are well, that have we really We we

forecast. something not is into that that balance for our factored So the we

wage strong strong So growth employees, in strong margin. worksite growth in rates,

Huang Our next with from question comes JPMorgan. Tien-Tsin

before on comment. elaborate surprises change a pause pipeline in elections. can just any a of of that want hoping I the of we markets, Any around kind visibility across Can lot market a or change bit the of I strong we questions to back all we up in your get get Maria know little decision-making, see thing. normal

So the really answer change. no question is to your

strong So pipelines. the talked feeling We exited confident this in fourth quarter. we pipelines. exiting strong quarter, about We're

it that keeping as eye. not behaviors watchful are changes to a we're across any if to that relates suggest That's will. happening the in buying any things of seen you the not haven't world, We

deal specifically And spoken in think new the we're come mentioned, where the the normal. that in in a think I you cycle, about upmarket space. as we've questions I of lot that's because

looks the to I it like think back used it in pre-pandemic.

look Listen, exiting and the overall, every quarter, as ebb of bit it's But think a normal we quarter appointments. also little the strength relates exiting the the mid-market in net always, enterprise the and I It's the it pipeline the year-on-year was is things has I about pipeline businesses. these in broad-based on the about different, so fourth just are side compares as first And obviously, some quarter it's and a just the market, to space, It's about cycle. activities. pipelines strength reminder, into and flow about feel the new down think broad-based. those And pipeline. solid

Terrific.

going Mark to my follow-up. when site it's got you synergies and asked but the cross-sell I about Just first some this. nice logos potential WorkForce quick Software, announced know others really with

is in? So consideration important asset and an bring decision cross-sell the to

by and very are the familiar brand perspective. and marquee way, those the would logos I many also with from course, think many -- of a be exciting logos

how is exciting story. market we to an go I together think

to only clients this has marquee way them. be think some company win in that to brand and continued really of ADP So the the the marketplace. behind execute have them will and helps I'd it able of been scale that the like to

And global if to think more of get a brand, going get in about all so to and And to to we our product say And very I optimistic distribution to our narrative. it, growth hopefully, get scale is simple to of leads on -- all invited you the between parties. and think the way going their out think, their marquee clients I be exciting our parties. we're part they and strength the our invited us

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

investment on you call-outs just AI. progress a Latta on Caroline question potential have generative had of rolling further is the coming any on I and over cadence year? on I out of Jason. some Do you that know initiatives. mentioned for This those

real call-out -- for I'll start further the real investments. No thanks on Carolyn, question. with no

the last as We good coding tools appointments, the earlier. success have appointments, some live appointments been deployed of sales our to we've and are area, which Copilot salespeople in on when preparing those quarters. in results opportunities in We've to that Maria tools are good technology see our we go few modestly are continuing are results. they're of shared showing touched we're for there. and good over setting already calls, of to available summarization and some And to to the continuing call continuing seen results. coaching area, that some deciding Certainly, invest see

just quarters. more investments and of investment, continuing the coming to a more not course and over looking get lot returns really really we've on the the So made incremental

Our Mehta question comes Northcoast Research. Kartik next with from

little of health maybe months? the it change last customers, you seen if as at anticipating small few think the over talked and Maria, you a and of you're about wondering you've for business, normalized. do what about KPIs SMB And out bit I'm any But the businesses? your you look completely hasn't

Sure.

listen, yes, So there. it's pretty close almost to We're being normalized.

nondiscretionary In we it the of of serve. we type overall, at lot We call indexes. health look small offerings serve at organizations terms of look that that the businesses of, similar other a

overall health of couple watchout of a think is items. There strong. I are business small

of business ones new we to One the attention that close is pay formations.

it's so out even down item. And year-to-date, that while a down and fiscal it's watch is That elevated. it's said, still year-on-year

it's elevated call from where, it, So used to sit, pre-pandemic.

strong. so still it's And considered arguably

it's So strong. hand, on one

On all we bit of pulled the it's these a used But other from the strength one that just hand, look That's it have. at things. tiny to thing. back

it across as as and is it strong. small it to be down the demand the the think sentiment I to general relates market business side to relates continues

and last see spoke think I to strength. quite small we and overall good businesses we a down execution year, continue the bit among about market

Don, I'm the any change coming a strategy the some know been there's thoughts want yields wondering kind of might changes on portfolio just just on on And up do follow-up. other I the or for maybe have bit. a of thoughts for of if Any any you based changing portfolio? little duration the But to yield?

we've did as we've as on years starting bit benefited slowly last of with we yield inverted and that or is over the we to our Kartik, an looked shared think that, done a But the curve And significantly cost, last curve. No, have dealing been normalize. couple we've opportunity we of XX years laddering at we've yield that so. over

So we expect see benefit. to should more

guidance interest the We to end, the taking or net do be think are year. million, the but out we our short at think client flat we down also borrowing investment expensive called in because number fund that the now is by initial impact we're less $XX our going our in to for we prepared remarks, --

see to don't portfolio. the compelling change we any structure reason our So of

Our from Dolev Mizuho. next with Dan question comes

here. results good Really

how . of the able of to drag quick result a Just housekeeping as any amortization? incremental EBIT question. Would much a quantify be you

get I don't disclose value averages neighborhood of want we making did industry of at sausage XX%. somewhere the And the are too $X.X of into here, the deal the billion. Well, to much think but I in

go amortization think all out. period and anyway. look that But the X- can and numbers, of you kind from in figure already I'm ballpark. would a you of sure rough it you get it at have So there done I X-year to

really I discuss a follow-up. quick pricing I joined if bit just And a top little had the environment it. already mean, doing well your you're pricing Got deals? for been Can late. the on you asked, you and the I'm And of Okay. sorry maybe strategies line.

over So basis pricing, XXX last we points have couple years. to had the XXX of

basis to where closer somewhat, year, this sitting. as think we're and XXX I inflation points moderates to expecting get that's we're

came our European since quarter. a price. pricing of spoke inflation the changes no tied couple small on revenue in last strategy the a indices countries have color we various And to to time. in where and We the had a we'll small price increases really make impact though mid and those It upmarket, for are So the higher. in indices do

amount, for literally a no we so bp of XX our but So the we no weren't real significant range that contribution get for bit in not little a the But pricing nothing change did change, quarter, from significant. like price expecting, strategy.

Our comes next question Christiansen Citi. with Pete from

Software top quick housekeeping bit quarter. of that. one One this a trends on of and WorkForce on Nice a

understand Just I the I rationale, -- curious, Maria, of in totally the terms strategic understand.

that, through your solutions things. it You're framing you adds a about opportunity. But and see we more hypothesis do existing on or from new logo is opportunity if on the sizing base, the function working customer think upside their upside set their still about of just more the there scaling

Yes. Thanks, Pete.

I answer look serve right? TAM their is the the perspective, think the today. it's a market, space, at you right? TAM But ADP's look this, lot sits leveraging I question also our brand. So of lot opportunity, to your our a think our distribution, sizable in that scale, if both, from scaling billions. strength addressable the management We it at total of a workforce a I

are billions obviously of domestic. Some those

this as companies or they perhaps international quarter area you about offering next world new the an over even and quarter new expand the in going the not ways will all is and year, companies think, of an if talking this those of the look ADP, what I'm next needs will, the expand. year, and ADP I company. you places, in at is both, global growth the workforces about the when that to And are but and it, at continue as future across demand Some try can and as the that global think decade, expands, I an grow this area will their also call for there that story continue solve demand grow to of I to also across next space. in the is that think about about having look to of

this space. I an not So meaningfully step like looks their X. successful that's our ideal X growth really continuing And here X, execution growth plus And world, space. think successful this to that equals right, in excited in into X about. the more and But it's what certainly

Sure, a And sure. That makes Don. a modeling lot of then housekeeping sense there. question quick for

debt And from for helpful. to size impact Just curious would that could the the if earnings the expense transaction. us, be plans you interest assumed for potentially

billion. at Well, billion X.XX%, this I was guess of our We in I'd issued $X and point you to earlier $X.X year release. the notes transaction

there. can you interest So impute the

McVeigh UBS. comes from with Our next question Kevin

be the revenues, Just scale acquired one your across you what of I existing WorkForce can the scales, effect the it versus, could guess, how as off on base? sense it acquisition. much revenue client potentially multiplier contribute that Any business

company. But and palpable. we of the Good here. able actually question as a certainly when expectations it's the the out case business decision work excitement sales looked together have signed. this forces together. earlier, drawing to at There putting little I are our bit that making do lot until pursue are The early a The we're question things start said deal to can't a is you you to and

earlier. lots said think And I trying And think bit opportunity, And at it, happened. of work weeks a that's so to there's opportunities. it's are Maria really as I teams hard identify X since been and the

that We with don't the that have smaller And have, in it certainty to go logos perhaps this I a pursue. and can we to growth here. we don't they clients think is going bunch of clients whole with financial contribute great and out have a have, they Software ADP's came there's behind WorkForce there more company technology strength new

little but more, to and it, to the about out be numbers. this excited we're there's we going point So call bit a think early at

Our with next from question comes FT Gunn Zachary Partners.

second. for going understand Lyric smaller, it's to impact. to to bit meaningful back go take to a a wanted just I a I have still

a there's of numbers? commentary client wondering before to how give that? any meaningful last impact count to increasing points some can any And it take starts there I data have thought was it know of Just long just around process think if year-over-year. quarter, will you I XX%

So just any commentary there would be great.

increase. to live very out in we're HR of continue coming excitement Zach, about as of we clients And have, Yes. the an and excited Tech Maria Las Vegas. awful there they said, was lot

it's lot. needle. So $XX to to to revenue, time take lot. takes the pipeline move has again, little billion of Once increased of pretty do. It a going work bit dramatically. needle move the a that to Lots we're a of trying

the of and little we up solutions along global WorkForce once as expecting early these time. good once with we bit package the our Software, have, we're payroll, again, the offers, But to a things. share Lyric compliance and give other So specifics. a little again, bit tax And

question, from question Faucette and for Morgan time Stanley. last that have We with comes one James

couple a nuanced guess, had of, Just I questions.

control pays per that . with suggested it PEO control this employer be there's would growth still believe PEO than that per services, you had pays this First, year? quarter, lower you of downticking last do in quarter,

Yes.

growth this end expect year. do control we So Services. for than be growth, growth there's Employer the to it short the we per and PEO quarter, to that it be answer the have at in but is high yes, softer in expect we we the continued X% was believe pays There

yes, lower Services. than growth, Employer yes, So

pretty make I -- the this, that like following And And range? missed it. did but Got understood quarter you bookings then if the year you're for I quantify up about sounds but it for and Okay. front, specifically? full that I you constructive Employer growth how to that. want still just sure sorry think on Services

to established the not our outset quarter, we we're sticking No, the X% we at still the to year. that quantify of did for guidance X% and

landed, we lumpy. we're is on Demand new and know, business a the you where happy Maria things bookings, had and strong. can As pipelines. comfortable But bookings, said, with we get with record quarter first we're

X% thinking still we're to X% So that range.

just it. some that the the maybe Got last one is, there of upside And either it. one are or of to what towards question Got you that to lower just end range factors push the end? would swing

It's all about execution.

that what payroll. for need strong. demand we People remains Demand and work have what We we nondiscretionary don't for think a HCM sell. in I remains industry. strong, demand

at solid is things us. got demand happy any of can't things go. have behind But we numbers, cetera, look et think point anticipating. massive first that numbers, watch which of look of other the all we specific and than see do if we We're changes, numbers, are think stable look the labor pretty some and with they at inflation the and the GDP quarter. macro how none consistent, solid We've to quarter we to quarter, us I we'll Certainly, one at So demand.

So I the think with we're to X% for being. time going to stick our X%

There Black to for are to Maria this no questions over call I'd closing further remarks. like time. the turn at back

about the business, it's solid performance and and you, but say our priority talk get you not get both Michelle, on also have for thank Thanks, respect with to everyone, of making us. to overall in joining such meaningful a quarter, I agenda. the every steps to strategic day

execution want specifically. across did want ADP leads to future Really We're to thank, us. company. thank I the of And just want to comes that my I to lot a started. WorkForce what quarter. excited entire Software. execute the broader There's organization, I to did. then see proud really team, about obviously, excited we the to welcome the getting really where thank again, I earlier, So team once as together the just my

participation. your you Thank for

now You disconnect. a have Everyone, great may day.