Core Insights - Dayforce, Inc. has been selected by Hubexo to consolidate its HR systems and provide a unified platform for people operations [1][2] - The implementation of Dayforce is part of Hubexo's broader digital transformation strategy, which includes restructuring under a unified brand [2][3] - Hubexo aims to optimize its workforce and standardize people processes across 25 countries using the Dayforce platform [3][4] Company Overview - Dayforce is a global leader in human capital management (HCM) technology, focusing on improving work life for employees and organizations [5] - The company offers an AI-powered platform that integrates HR, Pay, Time, Talent, and Analytics, enabling organizations to unlock workforce potential [5] Implementation Details - Hubexo will utilize various features of the Dayforce platform, including Time and Attendance, Reporting and Analytics, Compensation Management, and Performance Management [2] - The platform is expected to support over 2,400 Hubexo employees across Europe, North America, and Asia Pacific once fully implemented [3] Strategic Importance - The partnership with Dayforce is seen as a critical step for Hubexo to enhance decision-making and operational efficiency through real-time data [3][4] - Dayforce's capabilities are positioned to address the unique challenges faced by global organizations, such as managing a diverse workforce and ensuring compliance [4]

Core Insights - Dayforce, Inc. reported strong financial results for Q1 2025, with total revenue of $481.8 million, representing an increase of 11.7% year-over-year, or 13.6% on a constant currency basis [6][9] - The company's recurring revenue, excluding float, was $323.1 million, up 14.4% year-over-year, or 15.9% on a constant currency basis [6][29] - Dayforce's net income for the quarter was $14.9 million, compared to $7.1 million in the previous year, reflecting a net profit margin increase to 3.1% from 1.6% [6][23] Financial Performance - Total revenue of $481.8 million, up 11.7%, or 13.6% on a constant currency basis [6][29] - Recurring revenue, excluding float, was $323.1 million, an increase of 14.4%, or 15.9% on a constant currency basis [6][29] - Operating profit was $31.0 million, down from $40.7 million, while adjusted operating profit rose to $132.3 million from $109.1 million [6][23] - Adjusted EBITDA was $156.7 million, compared to $129.9 million, with an adjusted EBITDA margin of 32.5% [6][23] Cash Flow and Shareholder Returns - Net cash provided by operating activities was $49.6 million, significantly up from $9.1 million in the prior year [6][25] - Free cash flow for the quarter was $19.5 million, compared to a negative $18.8 million in the previous year [6][39] - The company repurchased approximately $30 million worth of shares during the quarter under its $500 million repurchase program, returning over $66 million of capital to stockholders to date [3][6] Customer Growth and Market Position - As of March 31, 2025, Dayforce had 6,929 customers live on its platform, a 5.4% increase year-over-year [6][29] - Dayforce recurring revenue per customer was $167,600 for the trailing twelve months, an increase of 11.5% [6][29] - The company announced an expanded partnership with Microsoft, making its platform available in the Microsoft Azure Marketplace [12] Business Outlook - Dayforce provided guidance for Q2 2025, projecting total revenue of $454 million to $460 million, and full-year revenue of $1,929 million to $1,944 million [13][14] - The company anticipates continued growth in recurring revenue, with expectations of an increase of approximately 12.1% to 13.1% on a GAAP basis for the full year [13][14]

Core Viewpoint - ADP has announced a public offering of $1.0 billion in senior notes with a 4.750% interest rate, maturing in 2032, aimed at refinancing existing debt and supporting general corporate purposes [1][2]. Group 1: Offering Details - The public offering consists of $1.0 billion aggregate principal amount of senior notes due in 2032 [1]. - The expected net proceeds from the offering will be received around May 8, 2025 [2]. - The proceeds will primarily be used to refinance existing debt, with any remaining funds allocated for general corporate purposes [2]. Group 2: Regulatory and Legal Information - ADP has filed a registration statement with the SEC, which includes a prospectus and preliminary prospectus supplement for the offering [3]. - The press release clarifies that it does not constitute an offer to sell or solicit offers to buy the debt securities [4]. Group 3: Company Overview - ADP is a leading global technology company specializing in cloud-based human capital management solutions, focusing on HR, talent, time management, benefits, and payroll [5].

Core Insights - Automatic Data Processing (ADP) reported strong fiscal 2025 Q3 earnings, exceeding analysts' expectations with adjusted EPS of $3.06 and revenue of $5.55 billion [2][3] - The company demonstrated solid financial efficacy despite competitive challenges and economic conditions [2] Financial Performance - Adjusted EPS for Q3 2025 was $3.06, surpassing the estimate of $2.97, and increased by 6.3% from Q3 2024's $2.88 [3] - Total revenue reached $5.55 billion, exceeding the estimate of $5.49 billion, and reflecting a 5.7% increase from $5.25 billion in Q3 2024 [3] - Adjusted EBIT margin remained stable at 29.3%, with adjusted EBIT rising 6% to $1.6 billion [3][7] - Net income for the quarter was $1.25 billion, a 5% increase from $1.18 billion in the previous year [3] Segment Performance - The Employer Services segment revenue increased by 5% to $3.77 billion [6] - The PEO Services segment reported a 7% revenue increase to $1.79 billion, contributing significantly to total revenue [6] Strategic Focus - ADP aims to reinforce its technological dominance and expand international outreach while maintaining strong compliance and risk management capabilities [5] - The company continues to enhance its service offerings through technology-driven tools and AI platforms, such as ADP Assist [7] Future Outlook - Management raised full-year fiscal 2025 guidance, projecting adjusted diluted EPS growth of 8% to 9% and total revenue growth of 6% to 7% [9] - Adjusted EBIT margin is expected to expand by 40 to 50 basis points from the 2024 margin of 25.5% [9] - Average client fund balances are forecasted to grow by 5% to 6% from the 2024 figure of $35.4 billion [9]

Core Points - ADP is set to release its financial results for the third fiscal quarter ending March 31, 2025, before the Nasdaq opens on April 30, 2025 [1] - A conference call will be held at 8:30 a.m. ET on the same day to discuss the results, featuring key executives including the CEO and CFO [2] - Financial results will no longer be published via news wire service but will be available on the Investor Relations section of ADP's website [3] - Investors can listen to the conference call and view a slide presentation via live webcast, with a replay available afterward [4] Company Overview - ADP is a leading global provider of Human Capital Management (HCM) solutions, focusing on HR, Talent, Time Management, Benefits, and Payroll [5]

Financial Performance - Total revenue increased by 5% to $1,509 million in Q3 FY25 compared to $1,439 million in Q3 FY24[7] - Adjusted operating income increased by 9% to $708 million in Q3 FY25 compared to $650 million in Q3 FY24[7] - Adjusted diluted EPS increased by 8% to $1.49 in Q3 FY25 compared to $1.38 in Q3 FY24[7] - For the nine months ended February 28, 2025, total service revenue increased by 4% to $4,027.9 million[40] - Interest on funds held for clients decreased by 2% to $42.9 million for the three months ended February 28, 2025[40] Revenue Breakdown - Management Solutions revenue increased by 5% to $1,101 million in Q3 FY25 compared to $1,050 million in Q3 FY24[10] - PEO & Insurance Solutions revenue increased by 6% to $365 million in Q3 FY25 compared to $345 million in Q3 FY24[10] Acquisition of Paycor - Paychex announced a definitive agreement to acquire 100% of Paycor for $22.50 per share, reflecting approximately $4.1 billion of enterprise value[16] - The acquisition is expected to close in April 2025 and is expected to be accretive to adjusted diluted EPS in fiscal 2026[17,18] - Including Paycor, the company expects revenue growth of 10% to 12% in fiscal 4Q25, with a neutral impact to adjusted diluted EPS[17] Fiscal Year 2025 Outlook (Excluding Paycor) - Total revenue is expected to grow by 4.0% - 5.5% year-over-year[37] - Adjusted diluted EPS is expected to grow by 5% - 7% year-over-year[37]

Financial Data and Key Metrics Changes - Total revenue for the third quarter increased by 5% to $1.5 billion, with a 6% growth excluding the impact of the discontinued ERTC program [22][24] - Diluted earnings per share rose by 4% to $1.43, while adjusted diluted earnings per share grew by 8% to $1.49 [24] - Adjusted operating margins increased by approximately 180 basis points to 46.9% due to improved productivity and cost discipline [24] Business Line Data and Key Metrics Changes - Management Solutions revenue increased by 5% to $1.1 billion, driven by growth in the number of clients and higher revenue per client [23] - PEO and Insurance Solutions revenue grew by 6% to $365 million, primarily due to an increase in average worksite employees [23] - Interest on funds held for clients decreased by 2% to $43 million, attributed to lower average interest rates [23] Market Data and Key Metrics Changes - Client retention improved, with losses down across all employee size segments, and revenue retention remained above pre-pandemic levels [14] - The pace of U.S. job growth has moderated, with customer employment levels softer than expected due to weather-related challenges and lower bonus checks [19][44] - Year-to-date checks per client remained flat compared to the prior year, indicating stable labor market conditions [19] Company Strategy and Development Direction - The company is focused on integrating the acquisition of Paycor, which is expected to strengthen its competitive position and enhance its HCM portfolio [10][11] - Plans to operate Paycor as a standalone business unit while leveraging synergies to achieve cost efficiencies exceeding $80 million [13][29] - Continued investments in automation and technology are aimed at boosting efficiency and driving innovation in HR solutions [9][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the acquisition of Paycor and its potential to be accretive to adjusted earnings per share next fiscal year [29] - The macro environment remains stable, with strong retention performance and improvements in client losses year over year [84] - Management acknowledged the challenges posed by natural disasters and economic fluctuations but remains confident in the company's value proposition [19][83] Other Important Information - The company was named one of Fortune's most innovative companies for the third consecutive year, reflecting its commitment to becoming a digitally driven HR leader [15] - The company has made significant progress in integrating Paycor and is focused on ensuring a smooth transition for clients and employees [60] Q&A Session Summary Question: Updates on preference between ASO and PEO models - Management noted that both ASO and PEO models are performing strongly, with no significant switch in preference observed [35][37] Question: Client hiring lower than expected - Management indicated that hiring was broadly based, with some specific impacts from natural disasters in California [43] Question: Expectations for revenue synergies from Paycor acquisition - Management is optimistic about revenue synergies but emphasized the need to finalize integration before providing detailed guidance [56][58] Question: Changes in demand environment - Management reported consistent demand levels, with strong bookings and a solid pipeline going into Q4 [82] Question: Pricing power in a potential macro downturn - Management expressed confidence in their pricing power, indicating that they can maintain strong revenue per client even in downturns [96][98]

Financial Data and Key Metrics Changes - Total revenue for the third quarter increased by 5% to $1.5 billion, with a 6% growth excluding the impact of the discontinued ERTC program [22][24] - Diluted earnings per share rose by 4% to $1.43, while adjusted diluted earnings per share grew by 8% to $1.49 [24] - Adjusted operating margins increased by approximately 180 basis points to 46.9% due to improved productivity and cost discipline [24] Business Line Data and Key Metrics Changes - Management Solutions revenue increased by 5% to $1.1 billion, driven by growth in the number of clients and higher revenue per client [23] - PEO and Insurance Solutions revenue grew by 6% to $365 million, primarily due to an increase in average worksite employees [23] - Interest on funds held for clients decreased by 2% to $43 million, attributed to lower average interest rates [23] Market Data and Key Metrics Changes - Client retention improved, with losses down across all employee size segments, and revenue retention remained above pre-pandemic levels [14] - The overall checks per client remained flat compared to the prior year, indicating stable U.S. labor market conditions [19][20] Company Strategy and Development Direction - The company is focused on integrating the pending acquisition of Paycor, which is expected to enhance its competitive position and expand its customer base [10][11] - The acquisition is anticipated to yield over $80 million in cost synergies and be accretive to adjusted earnings per share in the next fiscal year [13][29] - The company aims to leverage AI and technology to drive innovation in human capital management solutions [15][16] Management's Comments on Operating Environment and Future Outlook - The management noted that U.S. job growth has moderated but remains stable, with some impacts from weather-related challenges and lower bonus checks [19] - The company expects total revenue growth for the fiscal year to be in the range of 4% to 5.5%, primarily due to headwinds from the expiration of the ERTC program [27][28] - Management expressed optimism about the future, citing strong client retention and a solid pipeline for the upcoming quarter [20][85] Other Important Information - The company was recognized as one of Fortune's most innovative companies for the third consecutive year, reflecting its commitment to innovation [15] - Paychex was named one of the world's most ethical companies for the seventeenth time, highlighting its corporate values and community impact [18] Q&A Session Summary Question: Updates on preference between ASO and PEO models - Management indicated that both ASO and PEO models are performing strongly, with no significant preference shift noted [34][37] Question: Client hiring lower than expected - Management clarified that the hiring slowdown was broad-based, with specific impacts from natural disasters in California and lower bonus distributions [43] Question: Expectations for revenue synergies from Paycor acquisition - Management is optimistic about revenue synergies but emphasized the need to finalize integration before providing detailed guidance [46][56] Question: Pricing power in a potential macro downturn - Management expressed confidence in their pricing power, noting strong price realization in the third quarter [98][100]

Core Insights - ADP announced the winners of the 2025 HCM Distinction Awards, recognizing five companies for their excellence in human capital management and workplace innovation [1][2] Group 1: Award Winners - RSG Group (Gold's Gym) won the Agility at Work Award for enhancing efficiencies and streamlining HR functions across 50 locations with approximately 1,700 employees [4] - BrightPath Early Learning and Child Care received the Culture at Work Award for fostering a dynamic workplace culture with over 7,000 employees across 236 centers in North America [5] - Stanley Black & Decker was honored with the Global Solutions at Work Award for centralizing payroll and HR processes to deliver a consistent global employee experience for approximately 48,500 employees [6] - Tillys earned the Innovation at Work Award for automating HR solutions and adapting to fluctuating staffing needs across 248 store locations in 33 states [7][8] - Academy Bank was recognized with the Talent at Work Award for unifying HR processes and enhancing recruitment and onboarding experiences [9] Group 2: Industry Trends - The awards highlight the importance of leveraging HCM technology to drive organizational agility, build people-centric cultures, and enhance employee experiences [2][3] - Companies are increasingly focusing on automating HR functions and utilizing data insights to improve efficiency and employee engagement [4][5][6][9]