We’ll continue to knock around some ideas, and some models and see what the impact could be. But I don’t want to signal exactly what we think we’re doing, because we’re still, as I said earlier, in the midst of our planning cycle here. But we always look at it. We take price usually every year where we can, not including some of the contractual commitments we have with some of our larger clients, but just something we’re very, very careful and cautious about doing shots a lot of color.
Unidentified Analyst: Awesome, thank you. That adds a lot of color.
Operator: Thank you. And our last question comes from Kartik Mehta with Northcoast Research. Your line is open.
Kartik Mehta: Good morning. Maria, as you look at the mid-market and the success ADP is having, who are you winning market share from? Is it traditional payroll companies? Are there companies that are maybe using other software products that you wouldn’t consider payroll companies? I’m just wondering where the success is coming from?
Maria Black: Everywhere. Candidly, listen, from a mid-market perspective, again, the demand is healthy. The competitive environment is competitive, and we continue to remain laser-focused on all of the competitors specifically. The ones that have been talking a lot about us over the last few years. And I think the way that we’ve been focused is really about the investments we’ve made, investments into a best-in-class product. Investments into focus on distribution investments into a digital transformation that’s driving great client satisfaction. And so, that really has allowed us to have a winning story, as it relates to really all of the players.
Kartik Mehta: And then just one follow-up. Just on the PEO business, as you look at the long-term growth perspective of that business, obviously, there’s been – a couple of things that happened that maybe have slowed the growth down in the last year or so. I’m wondering just your outlook on the PEO business and if you think anything has changed in that business, or demand for the product?
Maria Black: Yes. So I’m happy to start and certainly happy to have Don chime in too on the PEO. I’m always very, very bullish on the PEO value proposition. I’ve been close to that business for a long time, and I will tell you it’s stronger than it’s ever been. So despite the strangeness that we’ve had in the PEO, from a kind of the componentry heading into the pandemic, during the pandemic after the pandemic and then now, call it, a little bit post, post pandemic. What I would suggest to you is it has nothing to do with the fundamentals of that business, and what we would expect over time from a growth perspective long-term. And so the value proposition is strong. Nothing from our end has changed there, as it relates to the overall demand from the business.
And we see that just in the – we continue to have 50% of our clients into the PEO coming from the base. So it’s resonating with our existing clients. It’s resonating with the open market, and it continues to be a very strong offering for us. So I don’t know, Don, if you want to add anything there?
Don McGuire: Nothing to add then the value proposition is as strong as ever, and the fundamentals in the business are continue to be quite strong.
Kartik Mehta: Thank you very much. I really appreciate it.
Operator: Thank you. We have one more question from Dan Dolev with Mizuho. Your line is open.
Dan Dolev: Hi guys, thank you for taking my question. And apologies, I was on a different call. But I know it’s kind of maybe early, but do you have any news about – your next fiscal year, maybe something like early views as we head into the fourth quarter? Thank you.
Don McGuire: Yes. Dan, just a couple of things, thinking about next year. We do think that it’s early, so we didn’t share too much, although we did say that the pace per control will continue to be under a little bit of pressure, given the fullness of the labor market. So that’s kind of continuing story that we’ve been telling. We will continue some of our GenAI spending related spending, making the right investments for ADP. And of course, we’re going to get some tailwind from interest rates. So I think those are the three primary things. And of course, we always remain very, very focused on bookings and our strong client retention and client experience. So, I think those would be the highlights for ’25.
Dan Dolev: Okay. Appreciate it. And apologies again if this was already addressed. I was on a different call. I appreciate it.
Operator: Thank you. There are no further questions. I’d like to turn the call back over to Maria Black for any closing remarks.
Maria Black: Yes. Thank you, and thank you once again to everyone who joined us today, whether the full time or late. We always appreciate the questions, the interest, and we certainly look forward to speaking with all of you again soon, and look forward to the close of the year. Thanks.
Operator: Thank you for your participation. This does conclude the program, and you may now disconnect. Everyone have a great day.
