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Ceridian HCM Holding (CDAY)

Participants
Jeremy Johnson Vice President, Finance & Investor Relations
David Ossip Chairman & Chief Executive Officer
Noemie Heuland Chief Financial Officer
Matt Coss JPMorgan
Siti Panigrahi Mizuho
Dan Jester Citi
Michael Turrin Wells Fargo
Samad Samana Jefferies
Bryan Bergin Cowen & Company
Mark Marcon Baird
Raimo Lenschow Barclays
Matthew Pfau William Blair
Yao Chew Credit Suisse
Scott Fletcher CIBC
Chris Silvestre Veritas
Call transcript
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Operator

Again, thank you all for joining me. We'll get started in just a moment.

Okay. Jeremy, I'll turn it over to you.

Jeremy Johnson

Thanks, Nicky. Johnson, of Jeremy Relations and it's Ceridian. at and Vice Finance President Investor Greetings welcome our everyone Call. to like I'd to Third Earnings Quarter All remarks. listen-only will a participants a are session question-and-answer mode, follow and formal the in

As a is conference reminder, being recorded. this

Ceridian's we Noemie On Ossip; David have call and CEO, the today, CFO, Heuland.

on no deliver risks performance and to as except our law. and affect statements. developments. plans, David or future that the materially refer forth statements by revise actual assumptions risks information statement is any statements goals and of This us. cause certain remarks, place or call results expectations on assumptions, could forward-looking update regarding to include other some forward-looking allow such achievements in outlook, to future regarding reliance me these cautioned on factors our the of I beliefs We hand to for look based disclaimer future information statements. to Before to other this call or reasonable statements. events you management's ability our Each are such or forward-looking differ available and current about to that to to Listeners the guidance, undertake in statements call filings any to significant levels These performance, previous results, and brief forward-looking provide a obligation SEC subject and forward-looking on with intentions, for set made those currently may statements. uncertainties underlying could light from are statements maybe We required not and undue activities,

over in will Investor to investors.ceridian.com. quarterly furnished call SEC filed or turn with as Ceridian Form I have US the With database the quarter XX-Q and the letter, Relations on on SEDAR database Third website Canada report well the that, available EDGAR in will the earnings on SEC's and David. in the stockholder release, be been at

David Ossip

Thanks, staying I joining everyone, thank is and for Jeremy, evening, and you earnings healthy our and everyone call. that safe. good hope

want minutes a letter. few Before go some to points Q&A, I our we important to stockholders from spend on

we recurring revenue, XX.X% above float revenue, float by adjusted COVID-XX Dayforce margin expectations. were headwinds, and XX.X% excluding recurring EBITDA our to points. strong recurring basis gross excluding and XX Despite expanded grew and had First, total Dayforce increased cloud a quarter. revenue XXX basis revenue points by by

and the as Second, for accelerated the were for we with pandemic. expectations third expected, sales line business had the quarter COVID-XX the in before

double-digit sales expect growth, history. quarter largest our we quarter, sales year-over-year fourth the the in For

grow Dayforce customers remain have strategy. the implemented. than signed Wallet very up, we XX confident wallet using in Third, to continues not over XXX more more we have and well that are wallet Today yet and the

customer quarter XX%, between the of compounded been sales to employment we to both it gradual Dayforce back call levels. above expect XXXX, continued to lead for as to the Our approximately which taken in quarter would currency questions-and-answers. to recurring third in to those for hand assuming has excluding Dayforce's growth, fourth improvement the XX% XX% up to adoption rate and of constant new basis on And customers expect float revenue a finally, are attachment we live. I like and open XX% Jeremy

Jeremy Johnson

David. Thanks,

your and question we announce please portion name unmute your line, we will your ask then ask As re-mute line. your this I to the at go Q&A you through call, point, and of that

Thank limit you. time We one one also to and ask follow-up you please please. your question

comes from of question Alex first ahead, go Please Zukin now the line [ph]. Alex. The

Unidentified Analyst

the QX. quarter? about both of through just there You look furloughs? as as quarter then so the seeing the in for And that quarter Okay, had Can you into and it what What pipelines? What What thanks Jeremy. seen you layoffs win guys Dave. have for evolved, environment you has - and third in guidance would in - taking kind have the Thanks, you you're Thanks, you're and the fourth talk seen through the the question. what the even pandemic customers you selling gave rates? we're in now be also far that have had seen kind sales cycles, great. of retention seeing you

David Ossip

Sure.

five So question. questions I think one about in that

Alex the that. Sales recovered last thanks speak And So great you. in to pre-COVID quarter, to for QX with always levels.

had we're look And momentum aggressive targets January, QX. in we had we line continued if the into with came So for in we sales obviously again, QX also year. numbers back seeing very at the that. budget, And

back very say, would So COVID that far selling as I I a to robust is the pre-COVID environment selling as environment. levels. goes, believe And

wins, expansion So our you enterprise North only We and significant as if a in as letter, saw see encouraged. our America, global market we're quite the the through stockholder evidence move globally. is we you into on of well which go basis not wins but can well, had

In addition, Excelity the acquisition. benefit we some saw from

increased So populations seeing we're seeing increased influence we global on customers increased now are acquisition. and influence, have APJ conversion pipeline, where based that in across the Excelity

So of pleased we're very that.

employment employment probably have levels of come levels, quarter. another back last since terms about In X%

customer. still we average they down measured So were on employee when per an basis

about obviously rate of recurring. paid XX% up the that approximately number system Dayforce However, we Dayforce the see Hence, of aggregate is year-over-year. in growth employees the on

Unidentified Analyst

as to? attention are of will rates are made of from we what could see on we a level, at attention growth think partnership to you team level. should bring the level, XQ to that to? sequentially, follow-up, Perfect. COVID and big you about the as executive number put that you XQ the if sales kinds things pay be thinking the able hires you hires, lapping you up, we that new you to from And tailwinds those start the at some think growth When to start at even the What for pay to the compares think thinking as the start investors about then, a focus of the technical about - initiatives you've

David Ossip

Yes.

the mentioned and we As all hires in have the scale. experience at global letter, stockholder experience

continued thing heroics that scale a processes scale, into you go should of moving continue brought to are And growth as we that second two the perspective, revenue in the should on culture things. what I'd way from an the of next pre-COVID will sales cultural allow have describe that startup see is you in you translate year. that one profitably. into so group the the And One, improved because second as from acceleration go half to And levels. you to profitability year, company Dayforce the to see of we as back from from a improvement

Unidentified Analyst

guys. thank Perfect, you,

Jeremy Johnson

next the going ahead, Matt of from from is come The question Matt. Coss to Alex. Thanks, line Go JPMorgan.

Matt Coss

Excelity, from deeper And Hey, Excelity It's standalone partnership Murphy. at vendors, Ceridian into good look on David, the with a combination deals, you vendors the it with digging do regional Mark XX enterprise these ones? have of global large - were from global Coss takeaways you Matt could won these little were afternoon. Excelity? these global behalf of your as they were think or is really takeaways

David Ossip

often companies incumbents. are larger UK, combination, deals example, some Germany might we about So incumbent in there still or the often a have as the expand in globally, ERP we in we they When talk technologies APJ local and we replacing in for replacing place. that are is

as Dayforce they one, And from software. between the mentioned seeing, and cases components. sales some standalone added sales payroll in the Excelity, separate we from of Excelity have deals are in addition, crossover I Dayforce terms In

Matt Coss

economy. should much it's And you guess, good. follow-up to pre-COVID really are return than very maybe was, higher that of given I maybe so But bit is levels little still Okay, so question, than there although then it's unemployment better a the sales, some obvious hurting, in and I just think the is of on improvements Alex's it industries pre-COVID levels.

of see do sort sort Ceridian how you of… So you

David Ossip

Yes.

sales clarification; one pre-COVID to were I sales at level. Just QX don't see levels. In returning pre-COVID

a the mode. believe market type of back shifted already I has into So buying

We are tabled being the industry. seeing It's described would as surge or only what not industries. in have across we purchases

are impacted bit or that buying like but health seeing us. seeing some from still a transportation and quite of recreation in we're obviously, a industries - been So have the we systems still

Matt Coss

Thank you.

Jeremy Johnson

The Mizuho. going Panigrahi is line come next Siti go from the question ahead. of to from Siti

Siti Panigrahi

very question. trend you clients. have this I'm quarter expanded that how about fact in product my a to revenue And taking is incremental quarter? from David, wondering, last new for you portfolio. talked Thanks strong robust

increased you sort within new base? see of traction modules what your So client

David Ossip

buying we about XX% strong our the in, base. add-on happy believe So, were customers see very I modules, new The still sales materially. Obviously, of continuing are to sales being new We're we're existing add-on to don't that changed from seeing has with of in trend QX. sales customers. brought these

although seeing Wallet, side LMS changed recently - rate to surveys. are XX% fee, XX% It's More what Dayforce I engagement new think subscription don't the As that's we we either. modules, sales. performance compensation. to charge a have don't obviously attachment an we

Siti Panigrahi

to is December And your that. go month then, Historically, follow-up busy live. a for

So now this I'm implementation, pipeline doing go a that wondering how live is year? you for the looking virtual

David Ossip

were QX. go happy We very the lives with in

we Obviously the you And the we lives will timeframe. on the in quarters terms would sales, as take December on that in year two go we QX, first of if some there in into year-over-year, typically expect QX, go we so of it know as budget. come the compare is because QX, impact live

from our productivity working home of go of any haven't live in We terms impact terms seen our core working in and remotely. issues

Siti Panigrahi

That's great. you. Thank

David Ossip

competitors. one the you; tech was we peer of I months. went what, it that away from company And give Two think two one top three must examples [ph] is live. take been have I'll that Jeremy, our a

So that was very encouraging.

and organization other about given live The almost healthcare period. remotely, employees. with across implementation And a done entire nine-month that's a large X,XXX we XX,XXX just went obviously And are the now, was would locations. home about where one be different they in

worked is I to tonight Zoom like using our would say we're have remain customers productive. that use to what that how out and we technologies So very

Siti Panigrahi

That's congratulation. great. And Noemie,

to forward you. with working Looking

Noemie Heuland

you. Thank

Jeremy Johnson

Go to question is ahead. at Dan Dan. Thanks Siti. The come Jester Citi. from going next

Dan Jester

high wallet, just everyone. Thanks, think attach you the ability new level a client, of the look at roadmap add question. today, here, hire the at new could guess a sort to rate, level Right. had I David, like the I of mean opportunity sort in the on and ask from about - the but Maybe you to higher like terms from look about what here? roadmap wallet year of us high can help a big Appreciate a new it. first you what's features talked now? to

David Ossip

wallets a customers the already It's wallet started we wallet but about customers XX as that only XX we for have aggressive additional the ago. And are the than more that have remember well. year using actively or customers XXX a and roadmap, have over up building very signed we

go The pay new wallet that to In the banked functionality will will means organization paper capabilities, the locations terms check-in pay traditional out, of unbanked card, be be people individuals a and allows believe those low or that. give a pay month. the card having getting Dayforce to for they a functionality used through pay card we'll this to be come of or I to to card which able will cash instead able have checks

expecting pay we're of card so functionality. through see the use to And volume increases the

we're Second, to believe well. customer later I this it. will first And launch using about that Canada. Ceridian the month as in be the Dayforce happens Wallet

would be [ph] that so bill am wellness, actual I ability moving like adding more will On savings bearing into interest we do inside then we're be We're to secondary up, basis, the as wallet. a and actual adding things pay coming features financial top And below automatically so and automatic the actually is use like them cards, up. out, buckets which transfers much accounts, in quarter, to it actual Starbucks peer we'll excited it. with peer you we're They will personally I a typical coming to are system. quite be particular tops you call there the like longer-term be quite out. aspects There the when goes the certain things like; also card, that that And wallet So expect, of excited to will a the believe now well. great. level, this it

which in large We're two our weeks, with excited is conference. have very that. INSIGHTS We customer

be from attendance to when a such. digital that over lot the expect about marketing remotely and last over working attendees, saw we'll which strategy to talk We XX,XXX is can how proper payments. year. actually We'll working boost just beyond a a a have the of about extension bit pipeline we about little home, the attached But and wallet Xx increase talking

Dan Jester

in your cetera. this came Great, and prepared guidance, your business and above of about Appreciate regards that's profitability scaling it. then EBITDA a very couple et helpful the And times with to talked remarks color. profitability quarter you

lack of the you you year sort I So scale, in flip rate, and about next you're on but think low have mean of the the over takes other being [ph] margin. the of us clearly, terms interest help low at the impacted of puts and investments. can the by income side, benefits

So from evolving how here? margins should we Thank think about you.

David Ossip

employment flow levels adds down revenue line. back, only complete but as a come bottom not is almost First that to the to

So customer a a X,XXX employees no to for has if X,XXX say there us X,XXX. versus between difference is or example cost X,XXX employees,

per inside which So as costs you as we hosting well continuous lower actual should lower employee as side. the and well. support application employment employee cost mentioned, improvement back, lift come scale as profitability see per levels the see slight come on from to We'll a down effectively

are we making going continue of EBITDA, year. In to investments next terms

side, to global, well. call in that discussing at the in invest enterprise, that out be extension wallet is of So probably point wallet we we'll INSIGHTS do bonuses, as the on the as in the the on just staff. did bonus the for performance for we accrual we'll continue should and One EBITDA the based we an based did for accrue impact, QX, payouts of second COVID in on where our not in company, quarter,

were results these very So strong. actually

Dan Jester

much. very you thank Great,

Jeremy Johnson

Wells Next question Go line Turrin the ahead. Michael Fargo. of comes at from Michael.

Michael Turrin

the everyone. obviously even on you business I metrics okay. see mean upmarket upmarket look hear wanted in the seeing. Thanks I'm focus there. Hey, you're kind trends and just to of assuming the I and me both maybe strong. can small

just We smaller you've as seen continue letter looks and Cloud to the to to losses that of of you're increase shareholder some side. talking in speak also we size kind weigh like retention want that or about businesses two is your customers and expect Thank note heavier the sides? of net-net, the those But would to the some commentary change to There that on continuing churn to It some no just pull of customer you. well. market expectations. that of around push

David Ossip

we enterprise levels. let higher revenue at our XX% Mike, population of me from is In obviously is Dayforce targeted seen a so in that and what of Yes, call largely nice a just bit we've that. Cloud major Dayforce and little space. up employment About improvement start terms markets

in down would the we So QX it or headcount up end terms last go from average of seen we've year. of what slightly was from have seen

employment waves number not Powerpay using impacted because is pattern. earning been as small of by obviously whereas and In the level Canadian across but a types and did our V-shaped of AG, X you think there attendance And called more which some at that the they're levels the clients, recovery different about product, is similar we we were more are, prior there I terms resilience. of time COVID. the a In lockdowns business, that expect the X, we went see in levels, of yet the to payroll out companies as same terms recovery letter larger impact has in see of saw shareholder business. have the typically out Powerpay customers jurisdiction, companies I The of Dayforce would and smaller recovery, wave Dayforce

Michael Turrin

want Helpful. a to role. Maybe live David and we and follow-on, quick I new break you Since have Noemie, in a person, congrats on second. may. just here almost if the for

of coming Just on and any focus initial into or the new you're for key ramping board priorities areas observations, yourself role? as

Noemie Heuland

find here the share. very is am a mentioned, enterprise we Thanks. growth place thanks the very that opportunities that culture and increase the experience actually. David very lot question. the bring amazing. from expansion, happy further of the I can serve and drivers, the well, our the innovated excited. global our I'm I'm come about be to excited market I I'm and customers growth team, right, All the are SAP very amazed as to think I of to I I by to where the The as a a from leadership company. for here areas move

Michael Turrin

Excellent. Thank you.

Jeremy Johnson

from go comes of question Samad line from Samana ahead. next Samad Jefferies. the Our

Samad Samana

for evening. taking good question. Hi, Thanks my

So David, quarter. on you have if sector didn't curious, I'm first the on curious just know can I'm about push investments it hear following were curious much both you just I'm then one just this saying Canada's modernization into you updates And front? more in any public if we made public side. other But I progress that follow-up. broadly dovetail sector opportunities. had

David Ossip

Yes.

obviously much with no Canadian updates COVID. So, there, over government, on slower the

we However, a will government, traction I of that lives and continue. seeing some had nice wins are nice we've at where expect some the little and go level municipal

Samad Samana

follow quarter, Great. like leadership a know maybe And there kind level? make if we a were sales I'm there structure. change. to it wrong, any feedback changes There if the then, were you if And how working that that's or of regional during sales sure if I a but that the as is just - leadership on right just us, heard that's remind don't or - me. some maybe for regional just we could want we just curious was understand

David Ossip

Sure.

workforce. So that as scale this continuing has our regional. culture one as not are transition to know, quality to it's more predictability in and and so founder-led we much type own you more from more organization, of we But inside invest the

so made organization. uplift changes was the And there we effectively over sales to the

more at do organization a saying sales quarter. that the executed in we of believe see last potential high that the can we with performing even organization. much sales that out Remember, level we productivity for we're pre-COVID As see can - very more very,

Samad Samana

and joining look thanks on let the to echo well. as you to Noemie, know everyone. forward better for Great, me getting congrats others just

Noemie Heuland

you. Thank

it. to forward Looking

Jeremy Johnson

Thank you.

go of Cowen. Bergin at Bryan Bryan, comes question the ahead. Next line from

Bryan Bergin

can ask I that us had, And there? strategy any an give success considerations regions? given any international expansion guys. you wanted Thanks accelerating update to particular on the you've Good the evening. of

David Ossip

thanks for on Bryan, the that. question

know, out and Germany We inside building actual product. XX,XXX quite was the with Mexico the at had the current the a already done of Henkel lot on largest of we've We've a up global building basis. We with letter, about ever actually are in employees we're over success sales spoke as Germany you which one time. stockholder

encouraged we're that. with So quite

the two we Dayforce to We to of from. go and out types building opportunities - migrate continue more different to take with types that have obviously can of side, countries, are major over Dayforce believe the we platform Excelity acquire,

come we all look up, they as at So do opportunities.

Bryan Bergin

just Okay. on as And the end, the that? are around financing that then on wallet, of considering back the you scales, what

David Ossip

we funds So of much the load. to haven't XX basis than spoken other the too is actual X moment points about at probably per about cost our actual finance points basis

compare that XXX we when management fees. about is interchange, program points, So basis that the less to the

So net on that basis $X about X.X% on [ph] profit. type we a XX points of spent particular

we banking I half forward, structure year. go are we of speak the ways of second of at kind wallet various for next in the looking a about if think As lot we'll like actually back you'd that avenues. the And types more to end of

Bryan Bergin

thank you. Okay,

Jeremy Johnson

Bryan. Thanks,

Next ahead from Marcon question Baird. comes go the line Mark, of Mark with please.

Mark Marcon

as particularly in with you you've place everybody. regards I can the you have I'm the wondering, then progresses, clients the the the for with year pipeline, on-demand and unfolding this And year payroll? a question to how little Hey, about a bit period? see more taking implementation time calendar question. start-up put that Thanks talk

David Ossip

so Mark. Sure,

revenue is next is asking what think into build I year. up you're the what

And so…

Mark Marcon

Correct.

David Ossip

impact the mention recognizing QX Right. still back to QX recognize goes we beginning our COVID, saw do do majority late of XXXX. did year. sales the we levels start we we at when as had sales live. our revenue March. obviously QX above impact in end, from Because came QX - QX in levels think in And the you of in that a I QX, customer call, QX, the but of the at as in very would expect of sales we're know, - terms we kind we recurring

customers. [ph], obviously to timeline implementation at and you reward to months typically You for six look most nine a can have

coming of So trough out. the in we've was terms QX really just revenue, that

You impact from will an acceleration, the a see QX. but still sales slight into QX

of into go little saw. a we we the see will should next you rates back that half previous be As and start year, by more to we QX, to the growth second bit acceleration,

Mark Marcon

the wallet, of And with have great. that That's what there the rates or then just and smooth? What work behavior has that like the changes feedback clients sort the put are of sort ease any it XX clients, handling you department the of in you requests, to place, regards in the in terms fairly are what's you mentioned. take-up is terms digital getting been the the seeing of payroll additional of the And seeing? from

David Ossip

on pay start is from let with me that staff. demand for there way in reconciliation is payroll that the just The other differentiate no So back base the [ph]. vendors we the pay

commercial wallet have is So wallet. without act payroll the the customers way know either. a it's customers. the it payroll the the we players, as that same the as with to as change to don't fund you And lender We their

So process. in actual no change

very seeing responses. we're Second, good

just also - are Google our search discussing care, you come job in who about using testimonies. Wallet. you of quick have wallet, the Wallet, number we a do a see to for If talking talking Dayforce their do And leading by Dayforce then people and postings people the their so INSIGHTS and search now word you of the will how you INSIGHTS, experience if their we customers payroll Facebook the of attend about have people, many also the if if put and a HR are videos

the built We pleased with improve are way that the very, to from an people that wallet. was we're having wallets, obvious reasons the that experience of So and one the saw very technology it it perspective, construct construct pay experience of payments. seems XXXXs the us, to our an To a period. like the And employee came from from question when we that. on antiquated we

are still piloting the uptake, In we terms of wallet. remember,

see that the pilot which populations, expected, uptake the research of done somewhere rate, had I we so is to we between the what And the in across uptake seeing XX% about had which industry what kind thought we're pickup get of have The when pay speak originally. people receiving discussed. non-bank previously as piece in low we bank, XX% are XX% of from paper believe the Paycard have uptake we can on-demand functionality would we also And unbanked we that, we still who to and addition and we type was will people. once checks had

Mark Marcon

And your competitive then, in one dynamics to Kronos last Ultimate it They're we of change competitors, Great. think steps, about as UKG any of Are going terms rates? dynamics your change Any in of obviously one both may. key competitive going sort consolidated. seeing of terms I regards ADP impacting to if win if terms and relates multiple with HCM? of you management, having a in [ph] sort lot obviously those is on through the workforce through

David Ossip

through obviously - as from to changes. I quite tremendous One think service-based to lot other what a of are little have vendors and trying of merger strong. our I organization going you challenges obscurity transition strategy of rates software quite the bit remained into organization win product and through Obviously, be pointed a going tremendous the two types a would as in market. expect a out,

continuous high very with people immediately. so, where stable calculation have those live customers we to we of have satisfaction engine, fortunate We can this all product pay be the customer the our which into leads ability been And And competitive have very situation obviously scores. to a very we predictably, position. take and we in a strong led to a have are,

Mark Marcon

you much. Great, very thank

Jeremy Johnson

Thanks, Mark.

Lenschow Next question the comes line of Go with Barclays. Raimo from ahead.

Raimo Lenschow

virtually us you understand already working a there? got going international, seeing David, not if into bit can like like little will expansion potentially you bit, kind help obviously, cetera, look lockdown And the of et you you that back is a given impact about, Thanks. there for quite you talk at that or - little little anyway? look potentially while at scenarios a have you've what a bit impact you're Europe how and been

David Ossip

our is of where growth out the moment lot of global coming native A the at we really payroll. have countries

very that we're terms activity where a seeing QX the traction UK. in we we we're robust product. got as the APJ. The a in still very seeing and and ANZ the across we're positive pipeline is and lot in And so And of have UK, the from same of I with sales a the impact Dayforce true native mentioned, pleased QX

pay We have, Dayforce Excelity connected completed believe with components. integration the I

we're that perspective. we've So next year. to but payroll Germany remember not until I Germany; been think okay for from launch we're successful, going native

I that think we're somewhat perspective. fine from

Raimo Lenschow

on don't had X,XXX and one really And you Yes. big below, in actually, I cetera. they was we CDAD the follow-up, see one. know interesting And saw there in conference. was maybe than very obviously more to guys Tech so you kind go higher, the of last customer way feet - kind for thing week, actually And in the as that then potential down HR had customer some if et survey well? moving XX it the up Is also some showed because of historically you've but X,XXX that Just like direction around of me. the satisfaction, was that lot was terms one to strong X,XXX more surprised a that, in and slightly [ph] spend stronger to you notion that been interesting in demand comments customers around

David Ossip

a and very shouldn't company. whole and do we application we solve that the or employee in you're XXX workflows company that - product the was, market truly identify a remember today's matter that, employee them can if the of with [ph] And technology, a can is space differentiated exist if is design you elegantly. look, it And doesn't market Yes, it XX,XXX

And way of to the of improvements. duplicate those I get system processes you're frustration of the to other or entry out mentioned for efficiency or having as batch-based the going tremendous pay, if You're you're user on improvements reconciliation. the user experience a means with taking efficiency wait demand data by unnecessary

if have we one take that. to reconciliation you pay our you have used product a competitors different example, don't any full time For Friday; of product of

kind demand of strong ours very for it's So of system yes, regardless like segment.

are we go comes an us what as to EBITDA ROI forward. where it that and unit given really For improve to trying economics we get do per are are down still we

Raimo Lenschow

Okay, Thank you. perfect.

Jeremy Johnson

from Matthew Pfau the from line Matthew, Next question comes of go William Blair. ahead.

Matthew Pfau

guys. question. Hey my taking Thanks for

of Just environment competitors that merged. the now of quick terms in has one one your competitive

Just change has perhaps you terms there? you've Any sales at in product seen change or any of wise guys that if all? competitively turnover wondering impacted

David Ossip

Again technology of differentiation strong, have terms we in very our clear a we rates remain and believe markets. win in

of use pay. particular of of comparative, deliver that and And together, you to you they your employees. don't have experience, to In bring cases terms modern unless of between systems, those process, customers still think their can of time separation a data, I and

Matthew Pfau

guys. Thanks, Great.

Jeremy Johnson

Next ahead. at Credit go question line of Yao, Chew from the comes Suisse. Yao

Yao Chew

for capital Hey, to safe. is question. my great everyone. Again, taking hope and everyone had the execution question staying allocation. around a I see Thanks

Given do there M&A the especially the dedicated success and [ph] areas Ritek is Excelity, And of potential the in in is opportunistic growth think overseas? current opportunities? you more where M&A, be enterprise efforts you've up more this environment either with opens done time to this or right

David Ossip

X%, we of major in debate something terms That's markets. great X% you internally thank much and global. question that that that actually have a share less time, for all in and we than that It's about And know a we the asking. enterprise market

space, the And into have them into current so, just Wallet. moving additional acquiring into have are adjunct we and we to our true the and Dayforce new Excelity extending pieces base the native and markets like customers, going strategies, selling customer again enterprise going payroll APJ global modules, which back where then staying to growth

can focusing still by five growth. drive on Just we those avenues, tremendous

into don't the like else look to we we opportunities and markets, that budget or we allow have build we to we it to across what we discussions our have of as where unlimited new like have integration because that that's And do, sales to come do necessary proper expenses, emerging get and Excelity for entrance those, can all we accelerate up, to do marketing but like at time. that would each us the Ritek piece. give Sometimes have the increase everything returns internally to

Yao Chew

there here. employees. up comment small customers about out wanted clarify be forward? churn the of customer Is think helpful. we I the have frame isolated geographic business losses And the all vertical can smaller worst it? you. or Is the XXX few it issue a Thank past That's how I we of losses? here? or each to competitive the any in to great. going follow them exposure XX guideposts of a or with of any due Obvious this would should letter going there Are around And Just any customers? quick to if

David Ossip

Yes.

This it. put let true Canadian relation payroll give use who me is workforce of around box just proper management. So Dayforce Powerpay in kind customers to - a

we're predominantly are the capabilities, that customers few a COVID. they in impacted customer product, customers they and Powerpay So the Powerpay were time they need various It's isn't which typically management. use and are that These attendance talking very employees, about. most Dayforce with because workforce by the

survive that about COVID. and and the - the pop retail pop you're of simply not talking small mom did kind So outlets, mom hospitality shops, very

Yao Chew

thank Great, very you much.

Jeremy Johnson

of Scott Fletcher question the line ahead. Next go Scott, at comes CIBC. from

Scott Fletcher

Hi, think on I list for end close I covered I the questions got mute there. to of I've - sorry here, a being the up. all was actually second. my

Thank okay. I'm So you.

David Ossip

Thank you, Scott.

Jeremy Johnson

next of go Arvind Veritas. I at the apologize, Arvind Sandler. comes now. Chris, ahead. Silvestre on Our Piper next of line right Ramnani is question from the The from comes Chris not actually question at line

Chris Silvestre

I've off. you. covered questions got my Thanks. everyone. also Thank Hey,

Jeremy Johnson

forward to other soon. Look We to everyone joining talking in third quarter queue. And questions have Thank for you today. call that concludes the XXXX call. you no the our for earnings

David Ossip

Thanks, everyone. night. Have a good