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Ceridian HCM Holding (CDAY)

Participants
Erik Zimmer Executive Vice President, Head of Mergers & Acquisitions
David Ossip Chairman & Co-Chief Executive Officer
Leagh Turner Co-Chief Executive Officer
Noemie Heuland Chief Financial Officer
Mark Marcon Baird
Bryan Bergin Cowen
Siti Panigrahi Mizuho
Samad Samana Jefferies
Matt Pfau William Blair
Michael Turrin Wells Fargo
Arvind Ramnani Piper Sandler
Ryan Krieger Wolfe
Robert Simmons D. A. Davidson
Pinjalim Bora JPMorgan
Bhavin Shah Deutsche Bank
Raimo Lenschow Barclays
Dan Jester BMO
Call transcript
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Erik Zimmer

I would like to welcome everyone to the Ceridian’s Fourth Quarter 2021 Earnings Call. All participants are in listen-only mode and a question-and- answer session will follow the formal remarks.

As a reminder, this conference is being recorded.

Joining me on the call today, we have co-CEOs, David Ossip and Leagh Turner; and CFO, Noemie Heuland.

Before I hand the call over to David and Leagh for some brief remarks, allow me to please provide a disclaimer regarding forward-looking statements. any forward-looking expectations our of and goals achievements include outlook, and activities, may or or plans, events guidance, intentions, and call statements current about future performance, developments. This future other results, levels These beliefs light statements us. of and to in available are management's currently assumptions on based reasonable information place not Listeners on statements. are to cautioned such reliance undue statements. from Each actual results cause forward-looking that those forth uncertainties set could statement is and subject in such differ to materially risks to with the certain We for to factors refer on previous filings underlying performance and you the these regarding statements that future assumptions deliver risks SEC significant ability our our information other to and statements. could forward-looking affect and may no revise update or law. obligation made any undertake on to required except be by statements We as forward-looking this call have stockholder or available on quarter letter furnished the and in release database EDGAR earnings and the will been SEC fourth U.S. the be with filed The SEC's database at on in website Relations Canada SEDAR as Ceridian Investor well as investors.ceridian.com. and the on the That concludes the statement. I that, call will the with And David. over to turn David?

David Ossip

Thank Hello, today. call Erik. joining the you Thanks, for everyone.

to we the a Q&A, into I spend go for want the few highlights minutes quarter. Before on

above momentum performance. volume we and are of X% high First, of strong activated levels rate in revenue and with report were has Professional record increased recurring Services Fourth in a cloud the value Customer XXX year-over-year. record transactions. pre-COVID of in in continued quarter. well satisfaction a which customers I'm quarter levels representing quarter, our XX.X%, single retention that reflected closed with industry-leading both momentum the sales and very to pleased XXXX size live took

on Total $X we milestones $X.XXX and important our billion revenue employees X was our the And which Second, I billion, Dayforce platform. want to X surpassed active guidance. for exceeded million mark exceeded also the celebrate company.

by differentiator us Dayforce with XXX margin, the XX% Third, relating grew call want to very year-over-year XX.X%, excluding recurring year-over-year. basis Wallet Cloud gross quarter ex-float continues following: our our financial for fourth by I and revenue be float, and recurring Dayforce a resonates out performance, customers. to to points grew to well

wallet transactions continues up we the customers. have Registration to is top over over of have QX in of We rates from QX. continue which XX% XX% behavior, XXX average in for have to user We quarter-over-quarter XX% quartile eligible in of see live across up employees, XX% more And top to an sell XX X wallet XXX increased customers live XXX continue customers from card than for month year. new versus sold base. now to XXX maintaining customers, per QX. The and exhibit than more Dayforce through

in the million XX% a we're the first of to $XX float, XXXX, expected excluding expected adjusted the range million. Adjusted and on currency to full to is following $XXX basis. Dayforce's XX% $XX range XX% recurring GAAP year-over-year, XX% year-over-year, in is providing ahead of we're Dayforce to both expected the of to constant revenue and EBITDA $XXX year. 'XX, a be grow to revenue, ex-float million. is guidance: And following EBITDA guidance the the expected issuing quarter to recurring is fiscal grow million in to Looking for be for

she XXXX, to Before has our in Directors. of welcome a a co-CEO instrumental joining been driving same Board Leagh time, we the our team. I'm Since and throughout execution company. strong And questions, into excited a at member as our built world-class growth get in of Leagh and the has the as Ceridian

be In Gross increased count margin increased on same customer I'm role, average expanded while looking not strong report and Revenue has to almost to I I love execution going than growth. at by will anywhere. me some are that than of by Just stockholder fully operations Ceridian, To letter. the in end-to-end Leagh years. as Customer increased fundamental has the over to XX%. X.X%. numbers and Ceridian's will to size drive has more and the XX% continue clear, at time, the last continue has X recurring mentioned by doubled. our the more

and of fact, as In excited much product about the more driving been never I've continue new time company. on innovation, with to possible future I will this focus as sales spending and employees. I'm with customers will continued what and a growth my focused partnership look should modern this believe is and Leagh confident lead We our to future company that success. like,

a Before say few words questions, we of you Leagh, introduction? take could

Leagh Turner

Yes.

David. can, I course, Of

a our on to all, X you, the the you of last built wave world to partnership the years. over what and thank next a am we and growth. working continue really continue an you team we've honored to continue big First with focus to just to amazing is the as around thank I Board. of that

the have current and say, Dayforce X echo I'll really levers, momentum in expanding the the platform, markets. are comments extending to again business. customers years, enterprise, accelerating his markets, incremental revenue in been growth Just adjacent for strong continuing of new really saw across the incredible the drive expansion the the last they entire to We're global acquiring summary same operating David's we which in and well great our across strategic year. quarter our and

we and looking what really levers continue combine growth to And we closing XXXX platform. the of customers we And our simultaneously. have market dynamics, help to ahead all and example, this of will to the be transform that we people future against out As always-on executing now those which focused of execution and to continue and as current Wallet. driving we when potential adapt is team believe Dayforce XXXX, build the great X an we're vision out our are that we work, incredible that saw

us have team vision expectations that and David aligned serves about I have last about as company partnership our for I our and of behind this as value increase unbelievable years, to the X to we really this and excited leadership of which the just continue the grow. about are I'm and So been strengthen potential to our business, that customers and their

with that, back it you and much. very thank I turn So to will David,

David Ossip

Thanks, And get Q&A, to once Leagh. Erik, congrats please. let's again.

Erik Zimmer

Thanks, the David. point, announce then your please have ask we Instructions] to And unmute call, As I Q&A go finished [Operator and please we so that line don't the you're noise. line portion -- any that your we Leagh. asking, name through remute ask analyst. will the at of of the the background once Thanks, question. equity And you of your

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

of the Mark question Marcon first with from Baird. So line that, of the comes today

Mark Marcon

particularly attach Dayforce start penetration you great the And A clearly from investors that perspective is 'XX, way congratulations see rate really continue of year. traction impressive regards framing Congratulations the of is out going 'XX? could of to the there. of of to from Wallet. sort a One wins to the to mean, lot questions. How Wallet, the as Dayforce on a revenue what you're seeing because like should I one finish the frame terms continuously you. Leagh, to couple and the a with we question as of that there expect contribution get we in I

David Ossip

I feature is rates. of the question. wouldn't great that. system the helped Obviously, in impact our has that of understate us a it Mark, a And it's win

year, minimal. contribution be this revenue terms it's still In going largely to of

end year, out bit the overall start as more reporting So the becomes at material it the of a numbers we'll the to little business.

bit each a revenue report you little as individual need get out line we can business. expect at the revenue the billion to up of of As reporting start items $X before don't our there it of out run rate, we we

Mark Marcon

clients, that And to look has at revenue when in the mean, How wins the continuous from internationally. the the of take little new about you're because is both domestically well to of to as you a going class-leading succeeding talk it interesting you're how one been PRO calc. management And Unlimited getting? to in average, achieving your solution a the important I we the clients, that's is can terms bit in terms terms temps. element workforce clearly clearly, of offering that systems, basically that always-on, incremental as their win, last relative important enterprise

David Ossip

Yes.

successful the few inside full the Wallet And So very instant the more a is which now deliver Dayforce that. selling buy illustrate -- there Dayforce customers. in access new wage as be new Approximately pieces do. The others are really a the component been of you the out, in to can't does fact, in engine, suite that pointed there. full very way always-on to important, we've suite. Look, able customers than a to XX% of time it is pay

because, extend exciting our increase substantially. of differentiate is good which is the to service the highlight quite and now companies. and very Wallet those well, a as types Unlimited is for beneficial for does we us does think them So allows both The it you Dayforce does workforce of workforce contingent. the win percentage PRO to contingent this rate people And know, and as

see too. the in PRO read market, differentiates and through it if press you with can you -- release, how So Unlimited, actually them

Erik Zimmer

Great. Thanks, Mark.

Next up from Bergin Bryan in the Cowen. queue is

Bryan Bergin

Leagh, congratulations. echo let my me

Can XQ, talk inorganic embedded to business be you think bit in know dig little you're there? Dayforce included on expect about but well. Dayforce how integration for assumption lapping do ADAM a should bureau. about is Ascender outlook for wanted of first, what in of you we us ADAM HCM So in a growth. versus XXXX HCM? partially to the Maybe And sense as I give that going the where

David Ossip

Yes.

the a high allows native has for Noemie it to manufacturing has the numbers. accelerate in bat. start So hand Brazil, just also with you on America and over in solution to which customers the off then as importance with our Latin to North of a significant let ADAM, the us I'll American Caribbean. presence and me ADAM at actual level Mexico, a know, offering ADAM,

to over so even engines more will Dayforce the add us allow platform. onto native it time, And

size, not you Noemie, overall clarity. the to do that? actually of a actual will It's really it's Noemie so line contribute the revenue business, to and the through small terms to overall want go In going give relatively or Dayforce again, more line.

Noemie Heuland

Yes. was March of if of may take way Maybe if Ascender looking at since months acquisition X, you're the the you X -- is in revenue about XXXX, April best additional you that it think incremental as effective sorry. remember to from M&A the

additional XXXX. So take million of months below revenue additional ADAM, from M&A $XX get you cloud and X you those to if versus

Bryan Bergin

maybe then going investments, to can investments and as to G&A? sales, it lot There's the broadening incremental growth you just as international a on And Okay. you're going speak the magnitude you're obviously of platform. relates product across

the outlook. projected within in of that kind us step-up a margin So maybe spend sense that you've give of making you're that

David Ossip

we XXXX, If $XX.X management expense, year-over-year. were of product $XX.X and QX I look to development increased XXXX, at it of million from a million. We in sort that

a So we from significant. quite step which is of to XX.X% up took revenue, revenue XX.X% of

what capabilities. global. market And we're opportunity a building durable by major company to we're the for the XXXX, payroll obviously go we're nice is growth launching and Now In on obviously focusing out engines. X of global new creates us doing that

If expect, not you that if the ask global increase me XX%, that X the revenue more, would about expect would I payoff within to I will years.

out, growth further growing I on for think And company And durable focusing the differentiate really as us. so business. really, the we're said, will as we're that I

Noemie Heuland

bit And add little investments if color maybe for of XXXX. can the on a I

guided the of XX% we've saw, you As of revenue. to in XX% range EBITDA adjusted

the with product roll capabilities, the in the new for our direct wallet out rewards in later in to also in cashback we're David the planning We're also as to global investments Beyond features, early U.K. such mentioned, deposits. year. investing

to So HCM we're really user in investing experience in extensibility. We're invest well, our as platform design, platform. committed

we're brand. a demonstrates attracting that I'd P&T. say of in so our think strength also tight talent I labor that's to I the important successful And in want market, very highlight in because and

expect On continuous improvement. we the cloud recurring gross margin,

on the product You improvement be and going shifting shared again QX. working in into we've saw as some showed our that more support services support the center people the labor organization APJ. efficient of in to in our automation We're through as well

accelerate sales and in our well invest marketing We as continue to PEPM to growth.

are quota productivity bake expected have to above be a in level in We of that And events. will additional bit level XXXX. in-person travel carrier also pre-COVID and

Erik Zimmer

the in Panigrahi next Up Mizuho. Bryan. you, Thank Siti from is queue Great.

SitiPanigrahi

congratulations I extend Leagh, my as well.

But wondering longer so you the a for you what side. enterprise enterprise when understand part and the that sales growth. well. and that of I this are to business, see average trend good cycle the It's I'm joined So on also revenue customer as cycle implementation seeing started it's

live versus So XXXX? how trend about current and XXXX should we pipeline bookings versus think go in

David Ossip

enterprise a segments in quite our to saw actually XXXX. to we large relative significant QX, enterprise in Siti, shift

So quite a nice step up.

we've go section that implementation enterprise. what side, are see the out examples if that you'll the letter, that out highlight shareholder the through the you is stands there On actually large customer of all called

care XX,XXX for So we managed leading took with about example, live provider a employees.

reference, Just months. to them put that live we X.X in in took

very, for implementation of So successful lot quite employees. very a

On side, would large mentioned, called the are success we're I having anything had as as global the accounts, of you that add well. sales that with in with shareholder the them enterprise we tremendous and success Leagh, about the letter out color many segments? enterprise and in

Leagh Turner

think would And management it's better it's the and just Rocky his ever I with than been. say of wonderful I team, been. the is greater addition qualified pipeline it's ever than

area we our to And business. as of will a result, so in momentum real this continue gain

Siti Panigrahi

for you unlike And follow-up Okay. expansion. vendors. to one That's driver international growth guys, other the then of

as do revenue? a think that of international in the So percentage you years? represent what grow right next how percentage And now few

Noemie Heuland

Yes.

we So years. of as outside range XXXX. that's selling road of our upmarket America have have XX% about America, to customers we to of next map about moving the a said, revenue of as in to presence XX% David X for a outside right North revenue get total and North we're now, And with

going capabilities, -- countries payroll in released, to in live time. some X live year heavily being take payroll, next going new that's countries some We're investing So building sorry. -- going including

and around that's of And help so outside accelerate to with large going America. the presence really momentum enterprise North customers

David Ossip

XX% about bureau as does the only cloud next the that do to thing time. of over to a -- over years. period actually that not from one going move quite would XX% lot is we We well moment The in include Remember the XX% point that few the I that of out and at to are expect revenue.

to over currently the And if over at we solutions. international the next all our onto native couple the where years. payroll of over So XX is of have today, I look engine move those we countries business at have intent Dayforce

Noemie Heuland

Yes.

Siti Panigrahi

bureau follow-up David, sort uplift if think a the when ask see of [at-work] what this Dayforce? business I you of your statement, to may to moving you companies of

David Ossip

It's several you the only know, as HCM And and in there because typically, multiplier, management, from core the workforce loading going Siti, to components you talent the full start suite. we're once payroll is the upsell times potential and significant. HR quite

Erik Zimmer

questions. Siti. you, Thank the Great. Appreciate

Jefferies. in queue Samad is the from up Next Samana

Samad Samana

will XXXX never end.

ask line. question to we being a directly? and how for partnership should work versus on I follow-up Unlimited Zoom like phone because on see was like Ceridian opportunities the it that wallet to not partnership directly -- my versus economics the I customers? Sorry, there line if more PRO selling on partners through think I to about the want a just about more And to distribution think this do doing wallet the

David Ossip

we healthy the as the get PRO, First of us, with get two that partnership We that all, platform. for revenue revenue the then a is with for one streams PEPM there's interchange And HCM Dayforce side. from well.

of Wallet if for real who the I that actual wallet we'll on business, you like. both for deposit, for work allowing So is customers sides not be to next capabilities. look people wallet of early at use we When the do types focusing for the direct cash-back the the get area and Dayforce register it,

by direct our we like life platform being directly consumer. also see can going but nice as quite So PRO, a the sales play through we that bring partners through do to wallet the to force also

Samad Samana

there given what there see you're via those that kind of risk? when flows you that a type a are? the customers, that's doing own it payroll risk for -- of is element involved underwriting what And partnership can different Is your any in

David Ossip

look a also visibility at we are when same payroll they We remember, customer. because PRO have the

actually a So do from rather business understand perspective, credit well. the we

Samad Samana

you company guide then business. maybe remind bureau much -- know Just And we Great. question uplift done? how in potential already like does over remind revenue has converted ending maybe Could within can we be switching last days? you the about was When should for what to XXXX, core is is -- has think contribution maybe conversion? us? think just how gears asked. recurring look what conversion acquisitions about us Dayforce the bureau to few Dayforce think the 'XX And the I the to TAM we of the about the M&A the for as these But

David Ossip

Yes.

components would and big Ascender those, do So if revenue would QX, totaled there towards totaled side, Dayforce. play. when the be Those expansion Typically, million; are I look we at is Ascended $XX. and Excelity, legacy payroll able bureau million. a X $XX. especially flow Bureau to on million; X X%; the footprint Excelity the be then that X. $X.X over

for activating fact, the we engine the first the Dayforce the core at of payroll go then is actually components. developed typically year or through we customers, call HCM look headless those which what that in payroll so. interface over And and the we capabilities with last In we've talent HR [Titanium], a

quite kind the the the from from I So I that -- next years, that will XX% that's going of in to component, which and by nice that to few over a over largely expect And there would to multiply move uplift what today, significant times. earlier is the I that. has when Bureau cloud large several a look at is alluded call

Erik Zimmer

Pfau Great. Thanks, from Samad. Up Matt next, William Blair. we have

MattPfau

your so services And have sufficient been Nice implementation haven't capacity enough partners, end you of a for with been to provide wanted able able ask Have and your and services retain bottleneck the implementation to I implementations year. capacity? on been of that and they side business. the hire then to growth?

David Ossip

Yes.

the plan. ahead implementations QX, it came me of just by let in in saying So preface well

XXX very they did asset nicely. all levels side the higher-end the adjustment issues the no a or from adjustment customer sat at side In And perspective. I was We've really a fact, record are recurring or at very, retention as to service had contract there component. through the a slight mentioned, on But levels.

to implementation. enterprise addition, gone a little into you the what the In lead the expect we prime to the actually you and could accelerate SIs nicely know, make of we're side the transition, to started add SI Leagh, as And there? bit success side on large having especially into that's XXXX. as seeing And I that over in well. color

Leagh Turner

look in HR, provider note care live, in veterinary Yes. lines at The you U.K. go them, shareholder attendance, and one more or was with thing by have when based in a and those Europe's that more in of queue letter, our those managed now across gone live. pay, primarily And specifically led largest particular, actually examples are live go of X time are the we that would I whether these go is the to having one practices live XX,XXX partner. seeing gone the employees in that

for frankly, over lift significant organization. globally a seeing better term. customers services own the we're our support our what so long for And And

Matt Pfau

Great. workforce. in you you us a make And detail just could a little did Maybe are was follow-up, give mentioned adjustments realigning you sticking some terms just on what -- there? that workforce. global your It with of your you did bit more

David Ossip

integration. the the is of final stages This

number As the of that, offices levels. And year. know, over and last with very got that you Ascender high service have a acquisitions Excelity the we did global services of we

shift certain a North So global America roles basis workforce to really the what rebalancing seeing the with from of offices. our a on of you global are is

but real moving there's it's just no the perspective, change, -- from across a geographies. movement So headcount

Erik Zimmer

from Thanks, next, Michael Up Fargo. got Turrin Matthew. we've Wells

Michael Turrin

talk evolution it a David, good since it's time, structure. the of hasn't leadership been just the asked, to through Maybe

long time sharing in it's just is the think this you're pretty the to about start letter some the you're clear think to right for responsibilities. it haul, communicating, but I in

just be -- could of can up So maybe can how talk additive overall executive this and you to about about or the frees you talk what this both team? change

David Ossip

spend sales I same cycle organization. customers it run you through been And really events the on it's Leagh the a the running our excel and it customers, at this spectacular an that So number as be be business of side. management successful formalizing with or CWT. unbelievable allows of through I She's and how spend scale, and the I time And of team time she's focus whether lifted our over to durable during us last that knows in at that allows the going of the end-to-end this focus also way the we business. quite spending I I team. townhalls a component, also whether lot does on while offices team our that at Michael, bringing think know, is lot during that various it's is growth build and to I the really a people time, product good at the to have operates first that, thing, types on well. really the And key focus existing with area innovation very business the of as the an like. up years, employees to also one like implementation. really us where to -- time with as operations, operate a is at run benefit which

sales Leagh from competent end-to-end an very a So expert. also is perspective.

sales as unmatched industry So her sales probably is well. strategy on are execution and in

continue the I some in and it have color company. excel add is leveraging tremendous. your me maybe that And just allows It continue helped really focusing to Leagh allows from So really Leagh, areas for ways on me, that to us perspective.

Leagh Turner

the driving even you have combination. it. team, already to And more our get has I and formalization this largely And time spend our that To mean, real prospects, X more with what I customers how it do we of is done, what said is winning experience which innovator management fantastic equals a gets X think globally. is, which it's and of David. in He Yes. founder to read who leverage he's at growth a scale plus it working. me, you a X, it's world-class that hope been for have we in I things

a it. So as just And significant are really of not I'm and a walls X change of be grateful things it's I the said, business. X the to inside those part wonderful

Michael Turrin

the Noemie, there moving assumptions, guide, still Great. in full some some year just macro pieces. framing are still

You've talked but the number XX% of grew over about looks employee course it the the year. headwinds, like employment

context efforts come in just, you rebalancing on of of can call have the those the just kind for some that call? EBITDA provide So of of some context the up assumptions, through step the on employment guide, and us the rates, additional

Noemie Heuland

Absolutely.

So recurring the of XXXX, in Dayforce employment impact significant for expect terms ex-float any from don't COVID. levels from we

think I we're done, and we're back level. to pre-COVID

we of recall, $XX primarily had XXXX, may half first which You about XXXX. the million in impact was in of

done with So we're and levels going XXXX. from talk COVID to we're not that, about employment in

primarily I bit of mentioned, live contribution M&A incremental revenue. to the And a Ascender sales the $XX obviously, related revenue main that QX And the the and had. previous from the just significant months of items. those below additional we really As have X are million we go

Erik Zimmer

Piper from All Arvind Ramnani next, got right. you, Up we've Michael. Sandler. Thank

Arvind Ramnani

to to guidance? terms to some better provide closer wanted your to X%? you're wallet of as a FY guide? understanding not part the closer of really is your a how get guidance, get how much year's your trying 'XX X% next I'm of Is just it it numbers? estimate it I right? just of much part that, Is like in of your able of If to was 'XX

David Ossip

do take that? to Noemie, want you

Noemie Heuland

It's XXXX. said us mature for a that half not We would now. disclose towards to Yes. we start enough back number of the disclosing

more as we'll -- year there we increase provide and our throughout what the that's registration color well. for it now as leave so rates And

Arvind Ramnani

a guidance. of really go. rate sort Okay. sense Great. on is have hikes guide? some sort What And there the it just of But including of rationale I in -- them include the where the for this to mean, can the was in reason we

Noemie Heuland

Yes.

of improvement -- XXXX, it what is it's terms primarily expect from a we in increased was So float driven balances. XXXX, in for float by which modest

said, significantly of drive really XXXX. as from it's for be have the as XX% still, But Actually, to a in as saw that's our to levels improvements. and macro the slightly of employment don't slight QX, higher increase float what's You float overall a factor We going by increased expect to of strategy. investment a result up in is I result down be balances yield XXXX. which going our simply

have you portfolio. which about investments As are our recall, held of may we short XX% in liquidity

portfolio reprices reprice those or with the which rest is held much lag in higher immediately at fixed a So more income, slowly. But yield month's so. the of a

see won't yield in from XXXX. you real So improvement a

Arvind Ramnani

Just the one bps going margins puts XXX on question Can year-on-year. on last give what's on margins. sequentially, the on Certainly, just XXX declined and color kind of you of bps some takes about margins? us some or with

Noemie Heuland

number exceeded in was our record is live. So we -- EBITDA by referred QX, a David of our in revenue We driven higher which adjusted going about $X primarily professional higher record services. million, PEPM than guidance to, as by revenue. We had go live,

margin. additional yield revenue this So incremental doesn't

So do mix and investments QX. We'll revenue to that some of see make of well to as and in continue continue you here we'll sales in marketing. And technology that that's a kind in XXXX. product,

in before, we're said X out invest wallet. And we new XXXX. have in marketing. also in sales payroll So technology rolling we're as -- taking Dayforce We're to product and countries in continuing I and

Erik Zimmer

Great. Thanks, Arvind.

Robert from we Simmons have D. Next Davidson. A. up,

Robert Simmons

of How PEPM commonly from of are or needed to discounts you And provisioning pushback kind kind customers? that have to getting you concessions any give it other charge able Like win to to arrangement? are nowadays? much you how

David Ossip

type step-up we're think and step-up similar XXXX expecting XXXX I XXXX. significant We actually a a successful. of XXXX, quite between between and it's saw and been

we've which honestly, part teach the think is, we most And PEPM I first that really through quite norm for this had The provisioning our of to is that sales the to obviously companies. very And cloud sellers as on position how Leagh, getting and to still that? what some concessions, on out successful add but turned would instances, well. the make are some it's provisioning. being do leadership to yes, very, very PEPM we you be In team, we done

Leagh Turner

I think things. X I add would

The now conditioned. well the market is, that think first I is

is, totally second selling year have David's we're proposition partnerships our sales which go we organization that live, and through same now to obstacles months is our So XX software the value own accelerate faced facing to may in the the on team. a And of through us fluent versus growth or our not point, allows ago.

David Ossip

One thing hand-in-hand enablement. that success seen have we that I together. side. on SI They we've for the I prerequisite the SI that's provisioning would add. is think and PEPM a why And go

Robert Simmons

other expectations for Got deals? Do to term? it. then do in near you for the have you need digest your more you And than capacity Or M&A think small what are recent further lock-ins?

David Ossip

XXXX. we acquisitions Look, X in did

been One already of with of the there Dayforce IPO is of been have to which to did back again, flavors the had consistent the allow terms XXXX, what Global, on with is copy we in messaging Ceridian XXXX. a accelerate growth us back X time has in acquisitions, at to In date. which

So mentioned. and a as we we as works We market, capability, up very HCM well. revenue, them the payroll And we actually quickly well That's go build knowledge, upsell very was out the move native across model customers' the the as important acquire know discount. customers then capabilities. on

XXX add that for global that success we a has at Our is which employees. side, probably differentiated the any because you more would company is to are anything this? than market rate Leagh, on base requirement

Leagh Turner

anything, David. add wouldn't I No,

it said well. You

Erik Zimmer

Thanks, the questions. Robert. Appreciate

up Next from JPMorgan. Bora Pinjalim is

Pinjalim Bora

congrats ask -- native in on sitting a Leagh, bit David, question high-level payroll. role. a here. Murphy for to of well, wanted new on multi-country Just Mark the little I you

lot added a have You of capabilities.

APJ LatAm and side. side one, Excelity live. HCM the new on adds going X adds the ADAM on said the You

differentiating competitively surfacing it XX,XXX, of as if the when fair kind Workdays that's So to of top an logos kind against native kind the to SAPs that read capabilities Is of point of XX,XXX, I added, the and payroll a Oracles being multi-country of say you're that you going big and important lot are the correctly. world?

David Ossip

true. That's very

you by that you're If #X of we're where And and from capability. look Gartner less -- What is with nature. say global for where us the And concentration the today's they rebalancing in allows seeing hand-in-hand in to that workforce obviously, reliance the the much a are important also post-COVID tight a people. world. office more labor or head of a that much at large management, of that taking perspective, world companies are we're doing go navigate much same across of us -- across our workforce advantage exactly global in thing. wage available It's market a would companies world, companies I very a payroll of seeing inflation. our example are other people become more have for offices. perfect There's you in and is of the It

So balances went by XX%. you numbers, float by went Noemie’s Employee at if XX%. up look up count

the in your do the you actual if that's out math, So inflation market. basic that's wage

I'm increase on similar the I'm we labor internally planning that and need if by Very to in want contribution our our to revenue. can recurring. we're basis increase my for. is hit to to margin we our global doing offices gross what that margin do leveraging at that make rate Hey, my ends recurring EBITDA to what out our on workforce, local I in targets look on So to global meet geographic a order looking

becoming definitely So piece. a yes, it's big

say, I The it’s and not talent HR actually its other just as core time well. and component, payroll would

goes into In you of acquisition, a set management. development, learning values. a type talent have globally, So thinking of company the order consistent to have to the same grow

of doing products have And help company to equity management ways true like consistent ours have across creating and organization. your a that performance has You that.

system important. country, across move of allows constructs employment very a someone global like to are We that have

you that about If of business same. intelligence at features all look some we've launched, the the it's

Pinjalim Bora

your And And cadence so it. you resignation the great are is you do you about XXXX, a of everybody headcount given thinking and the Got the about kind tight hiring. forward look helpful. all into XXXX, -- it. market sales Got just how on as that labor Very guess? And follow-up growth? in of the I kind sales hiring how far sales that, characterize talking

David Ossip

Look, really sales change in from which our a organization. of the XXXX, did inside we of of lot came lifting up a organization, leadership

market. successfully. first pipeline. that of in behavior pipeline. was qualities said, see of needed like she levels. As previously, provisioning, think on can the very record and enterprise we She it's that selling not And to and to as the And PEPM company, we enterprise about selling software a results mentioned did spoke had, we tremendous. alongside required transition SIs, Leagh you change company, X that And all, QX that of at the discussed the a service we the sell a large I as

more as it's than As has ever important, it been well. beforehand qualified

you So we've think have performance the the we sales is done This base organization, the would done last the year. because beginning typically in and sales over organization change, a year, year team, we just any do in of brought I expect see the that at as talent regular that. sales Obviously, And you I the of unbelievable less will kick-off. management nicely. be before performing is there obviously, think to a sales very you'll

Erik Zimmer

Thank you.

Alex up, on Ryan Next from for Wolfe. we've Krieger Zukin got

Ryan Krieger

just kind topic. like productivity right of and now on talk to sales how how is continue to about it you same compares force levels? sales Can Just that pre-COVID

David Ossip

we from on in did side fantastic take do would the a to We nicely Well, in again, year think and Leagh, sales expect well. what feel QX. XXXX? quite you it as you I last perspective want productivity

Leagh Turner

just I'll productivity qualify things. to your pipeline, ability Yes. correlated to generate deliver a directly your mean I few to predictably. it ability say Sales and it ability your to is

They customers. point, so results global to we year. seeing. that increasingly hiring, leadership customers, region our large XXXX able So is the seeing result our you're and our sales team, increasingly expectation is continue large the said sell that every what of in to in to full the take you're the that deliver full and was sales the customers, be QX exceptional it's we and what they advantage organization to tuned suite frankly, ability, And could to will performance market. And we exceptional did, the an David's for

should you to think to and press that. expect in continue I So do really us

Erik Zimmer

Ryan. Thanks, Great.

Bank. Next up from is Shah Bhavin Deutsche

Bhavin Shah

spoke to that terms any elaborate can Leagh. just landscape can the market? then if high-profile a given security touch a but you also and on I environment little David, just know on competitive recently? incident you And is you this shareholder changing demand anything labor letter, Congrats your maybe in you, the bit given about maybe in changes the happened in

David Ossip

shown side, the competitor enterprise have And in the we comes would On say space, and would I the our quite year-over-year. our that particular the that's to results. it dominate increased that believe markets best in rates to into product have I of upper end when win us expect do I major market substantially and segment.

We also saw significant year. of enterprise movement second half especially the large into in base, the the

valuations those know, bit longer. take you As a

going we've think that I date. qualified levels, nicely. that's at pipeline had Pipeline record best actually to very

the over me we're year. this to on so let Leagh confident it And again. hand But sales

Leagh Turner

Sorry, say was David, to to trying I get mute off nothing.

think I what said I exactly you said. would have

Bhavin Shah

Awesome.

this the additional kind material business? follow-up quick on to have for Noemie. your a versus philosophy you back you that the what's further profitability XXXX, into into XX get But that know of talked to being impact Just reinvesting drop not projected increases versus we the kind I about year. rate float bottom of bps letting the line extent a that

Noemie Heuland

that's Yes, question. a good

portfolio of we investment First I additional revenue because on rate what -- lag time a translate float, going into of all, those strategy. before said our really to don't be is there's increase

if we've million that In terms changed a revenue would XX-month you $XX XXX I market basis float said increase points. of about data give by sensitivity yields over want by another is that period point analysis, to

an how on give you So hikes rate that's of of to point have float idea another long-term income. can data our the effect

terms of if reinvesting in at our we'll looking the get that in for part be additional we obviously, In upside some growth. the most year,

to Cloud said, lot I We payroll of to continue do of also as with in We've as over we've the each we capabilities wallet, gross we'll lot that investment of improve. terms seen the margin. improve go recurring quarter. sequential also it. can of a have that there's Quite after And with after, after quota after our go as pipeline. things carrier additional and our improvement cloud will recurring certainly well to pipeline global to gross go if But over go frankly, we'll a seen to margin. initiatives try gross margin

profitability to So us. be that's long-term a going driver for

that's we're for so go what going And XXXX. after to

David Ossip

bank if on and the the Canadian rate were March look basis that points, increases XX, investment XXX beginning One both EBITDA. And XXX revenue about thing, We to mentioned, page each seeing rate at and both million of we points and clearly. Noemie quite amounts you as in in of June. $XX fed outlined the basis

Erik Zimmer

is on up Next queue Lenschow Raimo Barclays. from the

Raimo Lenschow

two have questions. I

respect, operating are now coming at table et as you? Noemie, kind the -- kind I again, for that if at one look a cetera, -- coverage, in that's as see of there? is starting the that driven post-pandemic fit that good this and these of your back situation and like pipeline, quarter suited then of And look are so could more pipeline First you're workforce that how multi a on fit the David some of good and And that very areas is people to actually and more first in we post-pandemic, much much improvements industries in by question.

-- continuous side. terms offer and can some to that one you one have David you competitive of drive of that. do wallet payroll something a you it's on other But say, that only it the to of the The guys and terms see What they because second have out competitive obviously “I only differentiating system. roundabout market the What you're one because similar,” that see but reaction do in it can question, or your of purest factor? of try a there in on advantage kind towards do will need likely reaction in the solution the

David Ossip

with start first to the it going then question part the for and the of I'm the to of part second hand Leagh question.

the which those the cases, have us, seeing day but the agreement reconciliation And the the stuff. makes on difficult. charge launch as with period products between are very, wallet of to end know, in free we only as products, at membership you the similar require holder the rates then we effectively major On side, the types is of competitors tech, very are in any we all use all interest built don't wallet know don’t an an fees we you the and wallets and regards, or employee employer. And the agreement for differences,

is which deposit, is early to can direct is quite of the loan, pay, companies know, as they going well. access can't do they up. where well can a But the we you industry other wage streaming do effectively really the as which early land So do which do

of win on the nice said, I as customers. has it so, had our rates And a impact

your question, of Lee. first hand over terms it In before I to

as in being XX% customers talent are of buying our side new the Over suite. full successful are the well. We very

seeing cetera. and to want we're back so And time speak clients. workforce actual honestly, a the up the do from attendance, significant that coming differentiation a getting our bit in et our payroll, the management in economy more quite Leagh, pattern you the And impact about we're and lift strengths

Leagh Turner

the Yeah, I begins all market. I it with think mean,

David the employer said the with in wrestling as changing earlier, market every dynamics. is single world So

results. way, fact that in employees globalization, want fact distributed our to facing. employer able grow pipeline, to support them, they a frankly turning every frankly, is in And culture So they're evidenced that be and work the a like result, in a all the companies to is phenomenon, and to distributed to us order These fashion. that as continue in in which our to need are

largest Human human and an to now and able in management the over letter go there. the have see you lives, from going us. American David wedge Capital back is in as base same to have plant opportunity expand be go revenues. there’s an And we North example as time then seeing time, back sell massive of shareholder the some the suite, At would opportunity bought an of employees our it, global across of have we're by earlier, doing case a XX% traction in and opportunity a into two full selling do to go from noted Australian the region and with us capital company and we we XXXX full Management things, the really from So operating to that

do continue So to we that. will

Erik Zimmer

up is next from BMO. And Dan Jester

Dan Jester

think you help need sort wallet have we be global U.S., obviously here, journey trajectory pace help Just to David, about term Thanks think us in for the to country taking coming wallet, you in us just medium payroll the year? thinking and you question. this UK of use a going my you globally? should be engine could there? native before able Canada the launch the about to are How Do it? which the about on the

David Ossip

Dan. Thanks,

there will Australia more from Getting will down UK a It's wallet We nine drops then U.S. on New we you be of we followed know, use as we’ll [Indiscernible] in into almost different slight go it the type when the and It there’ll it in in well. the difference pricing XX market dropped tiers. into and the this by a financial Canada. well down other in into and in interchange have kind disappears, take keenly bring Zealand significantly that we'll the Australia the next we engines. as -- when of market go be UK it And for the you by such model as native those those that year payroll APJ the year. market as models

Dan Jester

when of remember with that exciting really if you were back, that take the introducing they change them was one is years I the a if wallet employees to think And things I the then wallet employers. few

customers examples we've when they the of market seeing the player? it's the seen at or use the pretty but I And wallet employees know so take in early, given wallet that new change year. labor are jobs, the you churn and over the

David Ossip

that -- your next the that a moment, that of this we're where is, year. at not actually that onto and to a of basis, mentioned deposit able bit wallet financial wallet bringing We of on the being application talking earlier we're be use the offerings and some the I to little wellness but place wallet we'll as and are who seeing program it irrespective in terms of reward download in having for constructs cash for the direct the global the well as employer early only

of the part So strategy. that is very much

Erik Zimmer

Good and and of Great, and that XXXX. to the discussion look evening. this the thank night. everyone quarter the for attending I actually concludes to throughout rest throughout for questions forward our really want

David Ossip

Thanks, everyone.

Noemie Heuland

Bye, everyone.