Automatic Data Processing Inc Q4 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Eugene M. Simuni - MoffettNathanson LLC - Analyst : I want to come back to the PEO for a second. So great to hear about strong PEO bookings in the fourth quarter and going into the new year. Can you provide a bit more color on what helped generate this reacceleration in bookings? I know you talked in the past, Maria, about some of the actions you guys have taken to generate PEO sales. I would love to hear what caused the acceleration in bookings? And are those initiatives that those kind of levers you're pulling now completely pulled or is it still work in progress and will continue into FY '24?

Question: Eugene M. Simuni - MoffettNathanson LLC - Analyst : Got it. Okay. And then for my follow-up, probably for Don. You talked about margin costs a little bit. So you expect another year of robust margin improvement next year, but obviously, you're not going to have as much tailwind in revenue growth as you had this year. And if you kind of do some of the back of the envelope math, it looks like your adjusted OpEx will need to grow slower next year than it did this year for you to hit your goal. So just hoping maybe you can talk a little bit what are the areas of spend where you will temper next year or maybe pull back, especially if macro conditions are not as good as kind of we expect them to be.