Next up, we have Ceridian. David Ossip is the Chairman and CEO of Ceridian. Really, really thrilled to have David. It's a pleasure to really host him. You've been a thought leader in this sector for a very, very long time. Very innovative rather, terrific, terrific industry leader. What I want to do over the course of this is to try to keep this as iterative as possible. I've got a lot of questions, but I want to try to open it up to the audience, too. There's if you either can put questions through the iPad or we can send around a mic, or alternatively, you can email me kevin.mcveigh, M-C-V-E-I-G-H, @ubs.com. We'll get those questions. But, David, I think we started the same way last year, and it sounds basic, but I think, you know, the way you've transformed Ceridian over the course of time, I want to start there because I think it's been such a, a powerful transition. M aybe talk about, you know, what you saw in Dayforce that enabled you to essentially transition, and essentially, it's essentially all done at this point, the business of Ceridian into Dayforce, and why that's been so important, particularly given, you know, the next phases of growth, which, you know, the generative AI, which we'll get into in a minute. But, you know, that's going to be incremental growth drivers for you. Maybe start there because I think it's important and it really helps underscore why you've had the execution and success this year, where there's been some, you know, not as much success in the market across all of HCM today. So Kevin, the opportunity we saw was a very large homogeneous market, and we saw that market cut right across segment and across geography. And when you look at the actual growth profile of our business, it is very durable in that we're able to diversify our risk across segments. We focus really on three different segments, one being major markets, which goes 300... sorry, 700 employees to 3,000. The enterprise market that goes 3,000 to 10,000, and large enterprise that goes beyond a nd we wait about a 1/3, a 1/3, a 1/3, and that allows us to adjust the business as the macro actually changes. We also get diversification by focusing not only on the U.S., but also on global. And we've got very strong capabilities in terms of global HR, global workforce management, global talent, and global payroll. That also allows us to adjust the business based on what we see in terms of strength or weakness across the world. The final area of diversification comes to product. We're not a payroll-only product, we're not a time-only product, we're not a talent-only product. We have all of them. We do a lot of full suite HCM products, but it also allows us to focus based on industry need. Currently, the need that we're seeing is really tied to quantifiable value and time to return, and we do very well on that because some of the tools that we have in terms of talent acquisition, in terms of workforce management, labor planning, compliance, allows our customers to get returns very quickly and sizable returns, a nd that's effectively. In terms of your original question, the opportunity I'd seen was this very large market, and I felt if I could differentiate in the market in a sizable and meaningful ways to the customers, that we could acquire a lot of new customers a nd the opportunity we saw was the separation of HR systems. When I did the research about 10+ years ago, I found that the typical company had over 12 different HR type systems, each with its own database, and that made it very difficult to do any type of analytics. It made all of the workflows really batch-based in nature. It could only go so far in each individual module before you had to export the data, import the data. F inally, there was a demand for one system globally, as opposed to all of these different regional systems across the world. So the design of Dayforce was really around that. One database, continuous calculations, global in nature, with a full suite of HCM capabilities across all the different product areas. That has differentiated us. Since the launch of the product in about 2013, we have over 6,000 customers live on the product, right across industry, right across the actual globe. We still only have probably about a 4% market share in North America, such as tons and tons of land grabs still available for us. If I look on a global basis, well below 1%. So we think we can, according to that durable growth profile and design, continue to build the company. We're focused, obviously, at the moment on the 2025, of hitting that $2 billion total revenue and 30% adjusted EBITDA with an 80% margin on cloud recurring. But we're beginning to think now about what's next, how do we get to that $4 billion level? And the market definitely is there for that. It's one of the things that's, I think, always been impressive about the Ceridian story, too, David, is the amount of ability you have to kind of determine how much growth as opposed to maybe margin as you think about the business. And one of the, I think big growth factors where you've seen a lot of success more recently, and maybe we could talk about in a minute, is with your SI effort, and how important that's been, not only from help driving the margin, but also I think, you know, probably help start monetizing additional revenue opportunities a nd again, I think that starts with, to your point earlier, the continuous payroll calculation and the optionality. But, you know, you've created, I think, intrinsic optionality, particularly in the enterprise space, that may not have been there through some of the efficiencies, particularly on the implementation side. I think that's Ceridian, one of the IP you've created, but maybe talk to that a little bit, and because I think the SI is a big part to the story that maybe the market doesn't fully appreciate. So, SIs are the system integrators. You get the Tier One players like, PwC, Deloitte, EY, Accenture. You get, kind of BDO, who's almost in that category, and then you've got the Tier Twos, like AXL, THinK Best Practice, and the list goes on. We started building out the system integrators probably about three years ago. Where we are today, about 40%-50% of the projects that we now kick off are primed by the SIs, meaning that they do the implementation. And one thing, it's actually a statement on the quality of the product, that the SIs now can handle the product as well as we can. The importance of the SIs is it allows us to grow the company without becoming a service company. We can focus on the recurring software, which has a very high margin, versus the services, which often has a negative type of margin, at least in our business. You see that reflected today. If you look at our results year to date, you'll see Dayforce recurring, doing really well, but we're pulling away from the total revenue growth because we're actually giving the services work to the SIs as opposed to us doing that work. Today, we probably have around 350 trained SI resources across our partners. Next year, we're expected to be up, I don't know, 7 x or 8x. It's, you know, significant growth. The SIs are all doing very well. They've been able to build nice practices. They're running, I would say, at proper capacity and proper utilization. The next phase will be the SIs building out the go-to market. In other words, they're sellers around our product, and I would expect at that point in time, you'll get a lift in terms of net new customers coming to us. So it's something we obviously are very encouraged on. I think it'll be a big differentiator for us in the future as well. Maybe, David, spend a moment on the competitive dynamics in terms of enterprise versus mid versus down, because I think, you know, there's sometimes I think that gets lost in the market, but I think it's a really important differentiator in terms of your go-to-market strategy and enterprise and where you compete relative to maybe some of the other players, and if you can maybe tie that into some of the ERPs as well. So, we started about 700 employees, which is the bottom end of our majors. That's typically above the Pays in the market. So, if you're looking at Paycor, Paylocity, Paycom, the Workforce Ready product by UKG, the Workforce Now product by ADP, the Paychex product, the Rippling product, and there's a whole group in that lower end. We, we don't really compete against them. In our major segment, we largely sell the full suite HCM, so that's single system altogether, continuous calculations, and that just resonates very, very nicely a nd that continues into the enterprise space, which goes 3,000-10,000, where we're becoming very, very competitive. Typically, the competitors we would see would be UKG and ADP in the major space, and as we go into the enterprise space and the large enterprise, it shifts over to mostly the ERPs that we compete against. Our value proposition against the ERPs would be time to value, quantum of value, and if they have a high percentage of frontline workers, the capabilities that we have around time and attendance in doing those wage and hour compliance calculations properly, in handling payroll all the way down to the actual payments. The ability to handle the global payroll component, global workforce management component, typically gives us a strong advantage. Again, the advantage comes down in both the quantum of the value that we can deliver to those customers, and equally important today is the time to value. So with us, it'll take about six to nine months to get a customer live. ERP is much longer. When a customer goes live with our systems, they're fully versed on our system. They can handle the system right off the bat. Whereas with some of the ERPs, it takes a lot longer, and you still are very dependent on third-party resources to manage your system. And maybe switching gears just to- b ecause really, year to date, you, you've had really, really good results, and there's been some unevenness across the sector. And I think part of that is the average client size, but maybe talk to that a little bit and some of the pricing dynamics versus, you know, there's some of the other competitors in the space. There's, there's been talk about some potential slowing mid-market, things like that. Just any, any thoughts on that? Look, I can't speak to the particulars of the others in the marketplace. We charge on a per employee per month basis, as most cloud companies do. We don't charge on a control basis, so I can't speak about what was going on there or why. You know, we don't operate towards that. We've done very well because, as I mentioned in the very beginning, across the diversification, across the three different segments, which allows us to be agile, it allows us to be nimble inside the actual market. And also the focus on the diversification across the products, that has helped us a lot as well, that we can basically move the lever as to how do we emphasize net new customers versus sales back to the base, gives us another piece. In terms of tail and headwinds, you know, I encourage people to look at it really on kind of like the first derivative. You have to look at what was the growth in the prior year to see if you're lapping in an easy or difficult quarter. I suspect with some of the lower-end players who charge on a per pay basis, not on a cloud basis, they had a very, I suspect that they had a benefit from employment coming back. Whereas with us, we charge on furloughed employees, so we get paid regardless of if they're furloughed or not, whereas the smaller vendors don't get paid on that. So, they may have had very high growth quarters the year before that they're now beginning to lap, and so that might be part of the actual impact, but I don't know. That makes a lot of sense. I may pause here, open it up, see if anyone... We're about halfway through. Anyone in the audience or online have any questions? I'm going to keep going then. Maybe we'll talk about the Gen AI. I mean, it's something that has come up in the last six months, but you've been working at it for years. Maybe talk about where you're seeing in the business today on both the revenue and expense side, and where you think the opportunity for that is longer term. I also want to talk about Dayforce Wallet, too, as an aside, but just maybe start with the Gen AI. So we have a very modern platform, probably about 10 years newer than anyone inside the market, and we're built on the Microsoft stack. So we use the Microsoft Public Cloud, we use all of the Microsoft kind of cloud services, and that allows us to really take advantage of the Generative AI capabilities a lot easier than others in market. So, for us, it's largely leveraging the large language model of OpenAI, and for us to focus on how we curate the documents that we actually give to the engine. So, areas that you can see it is, we have intelligent search, and if you look at our overall user experience, we have what we call The Hub. And The Hub really is a content management system that allows a non-technical person to really create a very engaging and beautiful landing page for the application, and for them to actually build out the navigation using their colors and their icons, and the areas that they would like to focus. If you load up a document to The Hub, we're able to index it and to provide that over to the generative AI. And so you could do something like load up a paternity document, and then someone, through intelligent search, could say, "Hey, how much time can I take off? When do I have to come back?" And we're able to answer that kind of using the OpenAI APIs, and to get that type of immersive experience. The Copilots as well allow us, again, to leverage the fact that we have this really single data model that's been very well curated. By providing information to it, again, it allows us to leverage the OpenAI through the Copilot that we built. So, you could do things like, which are my most expensive locations from a wage percentage perspective? Which of my locations have the highest attendance issues? Which of my locations are the slowest to hire people? And you can start to actually engage in natural kind of language, and using that kind of single data model, you get back the data. Then we also leverage Microsoft Power BI for visualizations. So you can now actually ask to see that data, show it to me as a pie chart or show it to me as a trending chart. And again, for us, it's easy for us to deliver that type of capability because we're leveraging the Microsoft platform and t he whole product is built on it. In terms of monetization, we'll obviously charge for the actual Copilots, w e're still going through that exercise. Every year when we actually look at the pricing algorithm for next year, there's a lot of different variables that you basically have to weigh off against each other. And so, as we get further in towards the end of the year, into the beginning of next year, we'll have a bit more clarity as to what the pricing will be. Switching gears, and again, I think one of the most differentiated parts of this written story is really the technology, right? The continuous payroll calculation and, you know, s o maybe talk to that a little bit, but then also the within the context of the Dayforce Wallet, because I think it's that technological innovation that really helps differentiate. And, you know, you see that in the core software margins. And again, as you remix the business more away from the professional services and the traditional bureau, there's a real nice tailwind due to the margin trajectory that's part of that 30% target in 2025. And then as you think about $4 billion in revenue and beyond that 2025 target, there's a lot of powerful drivers embedded in the model that just feel somewhat mechanical, if you would. Okay. As I said, it's a business where you have a lot of visibility, and you can design this kind of durable growth and profitability profile for the business. There are some decisions that you make in terms of each year as to how much you have to want to weight each of the different types of components. But I think we, you know, we have a good confidence level around it. Then, obviously, you saw an opportunity to accelerate some of that with some of the floating benefit you saw in 2022, which helps create- again, I think you folks are real disciplined in not being, put a lot of fixed cost against that, but rather use an opportunity to accelerate some initiatives as opposed to fixed expense against that float. Yeah, look, if I look at the growth rate of Dayforce this year, the true growth rate, I would say, is in the low 20s. You know that I could take that the Dayforce recurring revenue growth rate of 29% constant currency, but if I subtract out the benefit we got from the tax business, and if I take out the benefit that we actually got from float as, as well, you probably get to the low 20s. And when we look on a go-forward basis, it's a similar type of profile. You'll see us, increase the adjusted EBITDA. This year, we'll end off probably around 28%, around that mark, 27%. So you've got a straight line, if you like, towards 30%, which we'll have to see next year, halfway there in the remainder of the year after. Then on the revenue side, the, if you do the math backwards from the $2 billion in 2025 to where we are today, it's probably on a total revenue basis, kind of just under 20%. And eventually, Dayforce becomes the entire company. So that's kind of the focus level we're targeting at this point. If the financial markets change again, where there's more emphasis on growth versus profitability and operating cash flow, then we can make an adjustment, invest more in pipeline development, marketing, which obviously comes out of your EBITDA in the current year, but gives you a bit more growth, if you like, a year later. So again, it's, there's a lot of kind of control that you have in terms of the growth rate that you're trying to get and the profitability. What we do know is, given our market share being 4% and differentiation of the product, there's a hell of a lot we can still grab in North America. So we're not constrained from a growth perspective in terms of market availability. It's more really being driven by what we're trying to do on the profitability side. Very helpful. Maybe, David, a minute or two just on the rebranding. Like, just the- I see this T on your shirt first reading, we're going to Dayforce. Just any thoughts? I know that the expense is in the guidance, but just what drove that decision? Is it just where you are in the evolution of the company? So when we looked at it, it wasn't an easy decision. We don't really have very strong unaided brand awareness on either Dayforce or Ceridian, and so we have to develop that, but we can't build it with two separate brands. The second part is that the business today is an HCM business, not a payroll business. And a lot of the awareness around Ceridian is too much on the payroll side, which isn't what the product is today. So we felt that moving to the Dayforce as the brand, one, creates simplicity, and it makes it easier to tell the story. The second part, it reflects better who we are today. And if I look at it on a total revenue basis, almost about 90% of the business today comes from Dayforce. By next year, it's almost, I don't know, 95%. That's the actual reasoning behind it. And maybe switching gears again, any questions in the audience, or we keep going? I don't see any. Let's check the filter. Maybe we'll talk about capital allocation for a minute. And again, I always try to ask this question because I think the inherent complexity of the models from a regulatory perspective sometimes doesn't get fully discounted. So, you've done some M&A in the past, particularly regional M&A. Talk about that a little bit and where you are in that process. And I think a lot of that had to do with acquiring local expertise that, again, you pivot across the Dayforce engine, drives a lot of incremental upsell and of revenue and ultimate incremental profitability b ut talk to that strategy a little bit and how you're thinking about that longer term. So from a global payroll perspective, we've got our native capability, which covers a lot of different countries, especially when we get into Africa and the Middle East. We've got very broad coverage there now. We have the engines that we acquired in APJ and in Mexico. And as you know, we've made them headless, and we have the global payroll interface. And we use that same global payroll interface now with parties where we don't own the payroll engine, like in countries like France and the Benelux countries. It's the same user experience, regardless of the engine that we're using from a customer perspective. In terms of acquisitions, we don't have any global payroll projects on the go at the moment. If companies did come up, we would look at them, would be opportunistic, but currently, it's not in the 2024 plan. Helpful. David, I always like to end with, what part of this Ceridian story do you think is it or soon to be Dayforce, do you think the market doesn't fully embrace? Look, it's a very broad market, right? You're dealing with a market that is probably about a $40-$50 billion market space. There's a tremendous amount of value in our client base. We've got over 6,000 of them, and the white space in our client base, when we look at penetration of the HCM modules, is very low. Our client retention rate, I think, is best in class, at about 97% on a gross basis and over 100% on a net basis. And I think that really talks about the strength of the actual product. It's a lot higher than you see from the lower-end players and even from the ERPs. So obviously, we've got a very, very good product that is very differentiated in a very large global market. I think the client needs, to your point of an enterprise client, as opposed to mid to down, are much different from a module perspective as well. We find that the module density from majors and the enterprise is that's our sweet spot. Those are the clients that typically are going to be buying that full suite product. And if they buy the full suite product, the PEPM, the per employee per month fees that we can get from those segments is actually high. And so, there's a lot of opportunity over there. And again, the customers buy from us for a number of reasons. The first is they're looking for simplicity, IT simplification, going from, say, 12 different systems to one system. The second comes down to decision-making. If you get the data all nicely formatted with generative AI and the visualizations we can do, we can allow an organization to understand where their labor costs are, what their time to hire is, where they're short of people, and that makes a very big business. The third area comes down to wage and hour and compliance. And so that is: Are you paying people correctly? Can you avoid the very expensive penalties and class action lawsuits? Do you have the data available for internal audit for SOX compliance?" From a GDPR perspective, from a cyber perspective, is your data protected and well run, which you have to be in the public cloud to do that. Fourth area comes down to globalization, which is effectively a lot of our customers have grown through acquisition or even organically, to the point of complexity. At some point, you have to do job harmonization, standardization, and from there you typically move to shared services. If you have the shared service, you can move to a lower cost jurisdiction, which allows you to lower your operating costs. We see quite a lot of that happening as well. Then we get into more of the strategic areas, where we do things like labor planning, which would be: How many people do I require in order to service my customers? And can I do the allocation of that more cleverly, so that I have lower labor costs, at the same time, I can generate more revenue? We see a lot of that coming through as well. The last area comes down to engagement of employees, which is: H ow do I have this immersive platform across geo, across type of employees, where I can put on my branding, and I can do that without being this technical guru or having a design background, and effectively meet the employee where they're at, so they interact with our system daily? They're in our system, looking at their schedules, clocking in, clocking out, looking at their wallet balance. Can I take advantage of that engagement with the person to communicate better with them? We're seeing a lot of that. With that, our tools aren't just web. We're very effective on mobile. In fact, if you look at the Dayforce mobile app on the App Store, you'll see an app that has a rating of about 4.7 across... I think it's 500,000 reviews or some crazy, huge number. That just talks about how frequently our products are used and how they are liked. The Dayforce Wallet, I think, has a 4.9 rating, which is just, you know, exceptional. And these are highly, highly used apps. We never reset the rating. So, a lot of vendors play the game that they don't like the rating. You have the option of, hey, rebooting it back to nothing. We don't do that. It's just the rating over the life, which is, it talks about the engagement. There's the capability, and then there's a meaningful cost savings for your clients, too, right? Because if they're not supporting 12 systems, if they're fully outsourcing that to you, there's a significant internal savings within their human resource departments as well. Yeah, and the last point would be, I think as an organization, we service our customers really well. Our Net Promoter Scores across implementation and customer support are probably the highest in the industry. You can tell from myself, I'm a technical person. I know the product, I know the customers, I know our employees, and we act really responsibly to our customers, that they feel valued, and they are truly valued. I think even the SIs, the way they embrace the product, I mean, it's... They want it, they're going to sell it, they're- not only on the implementation, but now they're selling it as well. All right then. Anything else? Okay. Great. Well, thanks, everyone. Appreciate the time today. Thank you.