So the reception we heard from our customers at INSIGHT was one of really collaboration and promise to help them in this time of efficiency and productivity. And so whether it’s the co-pilot capabilities on our report writer and analytics, whether it’s what we’re doing with Autonomous Pay and taking out some of the inefficiencies that happen in some of the people, processes and people operations. So it was incredibly warming to connect with our customers. And most importantly, like David said, we have an advantage with some of the technology choices that we’ve made in our architecture, which is a single data platform that’s allowing our customers to really invent and co-create with us today. And so we’re starting to really listen and give that feedback today.
So quite promising, and I’m incredibly bullish about the transformation that’s happening in our industry.
Steve Enders: Okay, perfect. Thanks for taking the questions.
Matt Wells: Our next question comes from Samad Samana with Jefferies.
Samad Samana: Hi, good morning. Thanks for taking my questions. Congrats to the strong results and Leagh, congrats on the new opportunity. It sounds incredible. David, no one knows the HR payroll industry as well as your just for a few people like you. Wanted another company in the ecosystem last night noted that increased automation and improving the payroll rides is creating a significant revenue headwind for them as they improve the payroll process. I think one of the big questions we’ve got from investors for Ceridian and every other company, frankly, in the industry is, is there a significant amount of fee revenue or subscription revenue that’s generated by having to either rerun payrolls or fixed payroll errors or whether it’s filing in their own categories?
And does Ceridian have a revenue stream that’s associated with that? And maybe just how should we think about automation and the impact on a revenue stream like that. I think it would be very helpful for everybody listening with somebody like you that’s payroll industry stalwart to illuminate us on that?
David Ossip: Let me just begin by saying this. We’re a cloud human capital management company, and we don’t charge on batch processing. And I suppose for the kind of batch-based payroll companies or the legacy types of companies that used to charge on the payroll run process, which I guess is what they are doing in payroll controls or something like that. It’s a very archaic way of actually charging it isn’t how I would think of any cloud company actually charge in inside. I didn’t fully understand the other competitors or other players a dialogue in terms of automation I think when they talk about automation, they are talking about employees being able to view their pay slips online which I would think would be a base capability of a payroll system.
And I can’t see how that should impact the revenue of a company. In terms of us, we’re going the other direction. We’re beginning to use now generative AI and autonomous payroll whereby we can make the payroll processes even more efficient. The entire continuous calculation engine was all designed around delivering efficiencies, 80% to 90% of time reduction across the payroll team, and we’ve been very successful since the start of depots and focusing on that. When we talk about innovation, we talk about making work life better for people. We talk about expanding the product across the full human capital management. We’re talking about real innovation into it. So no, we do not have any, as I’d say, sensitivity to batch-based process and processes impacting our revenue.
That would be crazy.
Samad Samana: Great. I really appreciate that. I think that was an important topic to address for a lot of investors that are keenly focused on that. And I want to shift back to Ceridian and your key strategic initiatives. I’m curious maybe on the Wallet side of it. I know that you guys get some updated metrics, but how should we think about the traction towards the company’s targets that you’ve previously talked about there? And any puts or takes that have maybe changed the trajectory for better or for worse, especially as we think about maybe what’s going on in the broader macro environment? And thanks again, David.
David Ossip: Yes. The one is on track, will hit the ARR number that we spoke about previously. If I look at registration rates are now above 55%. We’ve also seen the percentage of eligible people kind of go up quite nicely as well. We’re about to release some new capability on the Wallet and around instant transfer and peer-to-peer transfers that will come out probably in Q1 of next year. If you look at the App Store, you’ll see the rating on the round the Wallet is exceptionally high. Steve spoke a bit about the actual amount of money that’s moving through the wallet, which is very helpful. We’ve also got the ability now to do direct deposit for customers that our employees that are not eligible for on-demand pay. So again, a very good program executing as planned.
Samad Samana: Great, thanks. Congrats on the strong quarter.
Matt Wells: Our next question comes from Bhavin Shah with Deutsche Bank.
Bhavin Shah: Great. Thanks for taking my questions. I guess, David, first, just on Autonomous Payroll or some of your generative AI announcements. Can you just maybe elaborate a little bit on how you’re thinking about monetization of both these services?
David Ossip: So, one, I think it will increase our win rate as we actually go forward. There maybe a possibility for us to actually increase the platform fees. So, we are going through the sensitivity analysis of that right now. We do believe that we will have a lead in the industry when it comes to generative AI and the copilots that Joe showed at INSIGHTS. Joe, anything that you want to add?
Joe Korngiebel: Yes. In general, Co-Pilot itself will be an additional product in our overall product suite. And so you can really enhance the productivity and the effectiveness of your employee by giving the ability to make tasks, complete faster. We demonstrated examples of being able to automatically send notifications to employees and managers when they need to close the end of a quarter or so or end of a pay run. We demonstrated what we can do to have questions answered simply to not backlog your people operations department with a bunch of the same questions being asked over and over again. With what we are doing where you can ask a simple question in natural language, get that answer. It will self-learn from itself. And so then the next question that comes in gets answered instantly and quickly instead of having to answer the same question multiple times.
So, these type of efficiencies we see as a powerful way to enhance your employees, and we are looking to monetize that by saying, yes, you can have our core suite and you can add on top of it our Co-Pilot as a SKU and provide even more efficiency and productivity. So, you will start to see that as new SKUs showing up in our overall product suite as another important vector in terms of what we can grow from a revenue standpoint.
