Maria Black: Yes, absolutely, Mark. I’ll give it a shot and certainly happy to have Don chime in. Maybe he can talk a little bit about our growth opportunity in international, but I think, broadly speaking, when you think about the total addressable market of the HCM space and where we all play and we all compete and it’s highly competitive and there’s been a lot of investments coming into the space over the past few years. What I would suggest is there’s still tremendous amount of growth and growth upside for all of us, and as you mentioned, we continued to deliver that and the results that we see on the new business booking side. And so, I think overall there is still runway, there’s still plenty of space. I think the part for us outside of our incredible distribution organization which has always been a competitive advantage in how we go to market, that distribution is also anchored to our ability to upsell to the base.
So you mentioned this ability to upgrade and how much has upgraded and are we all the way there? What I would suggest to you is, we’re still at about 50% as it relates to new business bookings coming from, call it, new business, net new business versus upgrades, which suggests to me that we still have a tremendous amount of opportunity even within our base. And that’s a lot of the focus that we have as an organization, whether it’s in the PEO getting smarter about which clients within employer services that we target to offer to the PEO or it’s the work that we’re doing on generative AI to try to get upsell and offering the right product to the right client at the right time. And in my mind, bending the curve and continuing to focus on attach rates whether that’s on the point of sale or omni-attach at a later time is definitely an opportunity for us to continue to deliver bookings in a very broad market that still has a tremendous amount of opportunity for all of us, but moreover, where we continue to execute and deliver on that.
So, I don’t know, Don, if you want to comment a little bit on international in terms of the opportunity there?
Don McGuire: Yes, perhaps to add a little bit more color, I think we’re very still very optimistic about growth opportunities beyond the U.S. or the North American market. So, Mark, I think we’ve talked before we’re on the ground in 40 plus countries outside of the U.S. We’re present in multiple segments in those markets as well. We’ve got some great things happening in Southeast Asia where we’re rolling out a single platform across beginning in India but many countries surrounding India and the Southeast Asian market. We’re excited, we often talk about the fact that we pay over a million people in India, every payroll, every payday. Price points are still a bit low, but we expect those things to work for us and work in our favor in the future. So, I think still lots and lots of opportunity for ADP from a growth perspective and certainly we don’t worry about saturation being a limiter to our future.
Mark Marcon: That’s what I thought. Thanks for — appreciate the complete answers.
Operator: Thank you. Our next question comes from Scott Wurtzel with Wolfe Research. Your line is open.
Scott Wurtzel: Hi, good morning, and thanks for taking my questions. I just wanted to go back to some of the early thoughts Don that you provided on fiscal ’25 and talking about the GenAI investments and I think you had mentioned that there could be some margin pressure associated with that, and just wanted to clarify were you talking about potentially leading margin to be down year-over-year or are there other offsets with general operating leverage and interest income that can potentially offset the margin pressure from those investments? Thanks.
Don McGuire: Yes, Scott, thanks for the question. I think it’s still early. I think the intent here was to give some very early guidance on what ’25 could look like. So, we still expect to see some improvements in margins. It’s just, do we expect to see as much of an improvement given some of the GenAI pressures, expense pressures that we may see. Of course, CFI, at this point in time, depending what the yield curve does, once again things have changed a fair bit in the last 90 days, and if I was to, not that I have a crystal ball, but I don’t think many folks right now are expecting anything to change from the rates perspective in the U.S. before September, so I think we’re going to get some tailwinds from that. So, we’re not really trying to signal here — not signaling a decline in our margins, what we’re signaling perhaps is perhaps a slower growth in the margins as we look into ’25.
Scott Wurtzel: Got it. That’s super helpful. And then just wanted to go onto the PEO segment and going back to some of the verticals that we’ve talked about over the last year in technology and professional services, just wondering if you can update us on some of the trends you’ve seen there with pays per control growth. I mean, even looking at the employment report that you guys released this morning, it looks like professional services is stabilizing and increasing, but technology information seems a little bit choppy. So, just wondering if you can talk about trends in the PEO with respect to those verticals?
Don McGuire: Sure, so if I, you know, Maria talked a little bit about bookings, I think, so we’ve been, we were happy with our bookings. They softened a little bit in Q3, but we had a very, very strong Q2 on PEO bookings. We can move on kind of to the PPC growth. Back in Q1, it decelerated a little bit more than we anticipated, and a significant amount of that deceleration was attributed to the technology and professional services sector. And in Q2, that stabilized. So that was good for us. While there’s still some headwinds in PPC, including from technology and service sectors, there were no surprises in Q3. So it’s important to note that worksite employee growth accelerated, about 1% over Q2, despite the modest incremental pressure we had from PPC pressure. And so, and that, of course, is a function of the year-to-date booking success that we’ve had. So nothing really to call out. More stability, if you will, in PPC pressure than we’ve talked about previously.
Scott Wurtzel: Great, thanks, guys.
Operator: Thank you. Our next question comes from Tien-Tsin Huang with JPMorgan. Your line is open.
Tien-Tsin Huang: Thanks, good morning. Thanks for going through all this. Anything on the pricing side worth sharing, Maria? Just thinking about some of the peer commentary out there. Any call-outs or interesting observations?
Maria Black: In terms of, from a standpoint of our price, or pricing in the market from a demand?
Tien-Tsin Huang: Yes, your pricing, or as you’re thinking about resetting prices as you go into the usual seasonal time changes, price changes, any thoughts there? So both for new renewals as well as new deal bids?
