Maria Black: Yes, absolutely. So I think my general sentiments, and then Don can give the kind of a little more directional, but my general sentiments around price remain that we’re very thoughtful, and very measured as it relates to how we think about price, whether that’s on the new business side, or it’s on the renewal side, as you mentioned. And so for us, it’s about understanding kind of by segment. So you heard my commentary in the prepared remarks, just how broad and deep and diverse ADP is, with respect to our client base. As you can imagine, we think about a down market, price increased differently than perhaps an enterprise. Some of those are also long-term contracts that have indexes attached. And so all of that lends itself to a very surgical approach, right?
To ensure that the price value equation remains the right one, for the market and for our clients. And obviously at the same time, what we’re doing is also monitoring what’s happening in the HCM space with respect to the peer group and pricing overall. And I would say from a competitive lens, we haven’t seen anything unusual as it relates to price from us or the others, even though it continues to be a highly competitive environment. And so as such, our approach this year to price, which I’ll let Don comment on, has been very thoughtful and I would expect us to take that same measured approach as we had into ’25.
Don McGuire: Yes, so the price increase this year was relatively well-received. We’re in the 100, 150 basis point range. We’re closer to the 150. So happy with where we’re at. But back to Maria’s comments, we’re in the middle of our planning cycle right now, and we’ll look very carefully at that whole value equation, making sure that we keep our retention up. Our NPS is supporting that, and we’ll make sure that we’re mindful and thoughtful about what we do with pricing going forward.
Tien-Tsin Huang: Yes, no I’m sure it’d be thoughtful about it. Thank you for that. Just on the GenAI front, I respect the investments there. I’m curious if you were to classify it as either driving expense efficiency versus driving better sales efficiency, what are you really aiming for with some of these investments here for fiscal ’25?
Maria Black: Oh. The answer is both. So I think it’s really about solving for, again, all of the users that interact with ADP, right? So if you think about all the personas, our clients, our clients’ employees, and our service agents, our sellers, it’s really about putting GenAI in every part of our ecosystem. So in terms of what are we solving for, the answer is both. We’re trying to drive greater service efficiency. I think, we’ve proven out that through digital transformation and taking friction out of our products and making those investments, we have the ability to drive up our NPS results and record client satisfaction tends to lead to similar record retention. So definitely working on ensuring that we’re driving up retention.
Obviously, the more happy clients we have, the easier it is for our sellers. We’re also investing into generative AI for our sellers, to become more productive. So it is about service productivity. It’s about seller productivity. It’s about client experience. Client experience lends itself to retention. So I guess it’s just one happy virtuous cycle, but I think – my answer is both, and all of it is what we hope to gain. Now, again, kind of back to the investments we’re making and what Don alluded to in terms of any pressure we would have with respect to margin on those investments. Some of these investments, we know they’re the right thing for ADP, but they will take time to ultimately garner all of the results, in all of these categories that I just mentioned.
And so, as it stands today, we have some really exciting things that we’re seeing. If you think about something, like call summarization that I’ve spoken about in the past. And we’re shaving off roughly a minute per call, that doesn’t probably sound that exciting. But you think about a minute per call over time, and you think about how many calls we take broadly across ADP in a given year. The math lends itself to over time, tremendous efficiency, and again, hopefully a better experience, right? So I think the answer is all of it. We’re solving for all of it.
Tien-Tsin Huang: Understood. Thank you.
Operator: Thank you. Our next question comes from James Faucette with Morgan Stanley. Your line is open.
Unidentified Analyst: Hi, everyone. It’s [indiscernible] for James. Thanks for taking our question. Just one for me today. You mentioned coming in at the higher end of the range on ES for the full year, which makes sense given some of your commentary on booking strength, better retention, pace for control, improvement in the float benefit that we’re seeing. But given all of those factors, it looks like ES in the quarter came broadly in line with our expectations, despite all of those tailwinds. So I’m curious, given your commentary about price coming in towards the higher end of your historical range, what does that imply just in terms of what you’re seeing on the net new side, as well as cross-sell and upsell? Thanks.
Don McGuire: Yes, Michael, thanks for the question. I think that, first of all, the price, there’s no change in that. I think we’ve been calling that out for most of the year, certainly in the one to 150 range. So not much of an incremental impact, if you will, for Q4 and therefore for the year in total. So not a lot of change from that. Yes, I mean, bookings, we called out, we’re still in the hunt for delivering on the range as we declared, so we’re still in that so. But not really a lot to drive incremental revenue, other than some of the float, but as the year shortens or we have fewer months, days left in the year, the impact from higher CFI is going to be somewhat muted as we look to finish the year.
Danny Hussain: Hi Michael, it’s Danny. If you’re wondering whether there is some offset somewhere else, there’s a little bit from FX moving adversely relative to our prior expectations.
Unidentified Analyst: Got it. Thank you both.
Operator: Thank you. Our next question comes from Pete Christiansen with Citi. Your line is open.
Pete Christiansen: Good morning. Thank you for the question. Maria, you gave great explanation of the wallet share opportunity that still left earlier, PEO, propensity modeling with GenAI and then international. I want to dig into the international side a little bit, particularly some of the newer markets that you’re getting into. I’m just hoping you can give us a bit of a progress report on a lot of the last mile infrastructure that, you’ve been putting in place, go-to-market, ramping that up. And I’m just curious, should we think of like the deployment of PI, the next-gen payroll engine in the international, as a real catalyst – for the next leg of booking growth? Thank you. I appreciate it.
