The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst
: First one I had was just on the pricing environment in the PEO business specifically. Are you seeing any noticeable change in the
aggressiveness of your competitors when it comes to price? And if so, is that something that's had any impact on new business
generation or competitive win rates to this point?
Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst
: No, that's helpful. And part of why I ask is because some of the conversations we've had indicate maybe, maybe there are some other
players that are being aggressive on that front. So not specific to Paychex. In terms of my follow-up, Efrain, I think you mentioned
in your prepared remarks towards the end that you intend to take some additional investment actions in the fourth quarter. Could
you spend a little bit more time talking about areas of interest there? Just to give us a little bit more insight on what to look out for
going forward?
Question: Eugene M. Simuni - MoffettNathanson LLC - Analyst
: Marty and Efrain. Two quick follow-ups. One, just on retention. I just wanted to clarify separating between out-of-business churn
and competitive losses. Can you maybe elaborate a little bit on how those 2 things are trending in relation to the still near-record-high
retention levels overall? Is it across both of those metrics? Or is it 1 of them, now picking up in terms of churn versus the other?
Question: Eugene M. Simuni - MoffettNathanson LLC - Analyst
: Yes. Got it. And yes, sorry, just to a -- so out-of-business in terms of like bankruptcies as we maybe move away from government
stimulus, you're not really seeing that pressure yet in your business?
Question: Eugene M. Simuni - MoffettNathanson LLC - Analyst
: Interesting. And then -- great. And then another quick 1 on the PEO. Just wanted to see if you can provide some color on what drove
the 21% growth in revenue across the major drivers that you call out, which is worksite employees and [maybe] contribution of the
Insurance revenue to that number?
Question: Eugene M. Simuni - MoffettNathanson LLC - Analyst
: Yes. Got it. Got it. So sorry, so your worksite employee growth, was it -- how was it relative to this maybe 21% number? I assume it
was lower since there were other factors, but can you give us a sense of where it was?
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