Q4 2021 Ceridian HCM Holding Inc Earnings Call

Speaker 1: head of M&A and investor relations at Ceridian. I would like to welcome everyone to the Ceridian fourth quarter 2021 earnings.

Installations at Ceridian, I would like to welcome everyone to the Ceridian fourth quarter 2021 earnings call.

Speaker 1: All participants are in listen-only mode, and a question and answer session will follow the formal remarks. As a reminder, the...

All participants are in listen only mode and a question and answer session will follow the formal remarks as a reminder, this conference is being recorded.

Speaker 1: Joining me on the call today, we have co-CEOs David Offit and Lee Turner, and CFO Noemi Yulian.

Joining me on the call today, we have co Ceos, David Ausopen, Lee Turner, and CFO Nuomi Ewen.

Speaker 1: Before I hand the call over to David and Leigh for some brief remarks, allow me to please provide a disclaimer regarding forward look.

Before I hand, the call over to David Lee for some brief remarks allow me to please provide a disclaimer regarding forward looking statements.

Speaker 1: This call may include forward-looking statements about our current and future outlook, guidance, plans, expectations and intentions, results, levels of activities, performance, goals or achievements, and any other future events or developments.

This call May include forward looking statements about our current and future outlook guidance plans expectations and intentions results levels of activities performance.

<unk> achievements and any other future events or developments.

Speaker 1: These statements are based on management's reasonable assumptions and beliefs in light of information currently available.

These statements are based on management's reasonable assumptions and beliefs in light of information currently available to us.

Speaker 1: Listeners are cautioned not to place undue reliance on such.

Listeners are cautioned not to place undue reliance on such statements. Each forward looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those set forth in such statements.

Speaker 1: Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the

Speaker 1: We refer you to our previous filings with the SEC for information regarding the significant assumptions underlying forward-looking statements and certain risks and other factors that could affect our future performance and ability to deliver our future performance.

We refer you to our previous filings with the SEC for information regarding the significant assumptions underlying forward looking statements and certain risks and other factors that could affect our future performance and ability to deliver on these statements.

Speaker 1: We undertake no obligation to update or revise any forward-looking statements made on this call, except as may be required by a-

We undertake no obligation to update or revise any forward looking statements made on this call except as may be required by law.

Speaker 1: The fourth quarter stockholder letter and earnings release have been furnished or filed with the SEC and will be available on the SEC's EDGuard database.

The fourth quarter as stockholder letter and earnings release have been furnished or filed with the SEC and will be available on the SEC's Edgar database in the U S and on the SEDAR database in Canada.

Speaker 1: and on the CDAR database in Canada, as well as on the Ceridian Investor Relations website at investors.ceridian.com.

As well as on the Ceridian Investor Relations website at investors Dot Ceridian dotcom.

Speaker 1: That concludes the statement. And with that, I will turn the call over to David. David?

That concludes the statement and with that I will turn the call over to David David.

Hello, everyone.

Speaker 2: Thank you for joining the call today. Before we go into Q&A, I want to spend a few minutes on the highlights for the quarter.

Thank you for joining the call today.

Before we get into Q&A I wanted to spend a few minutes from our highlights for the quarter.

Speaker 2: First, I'm very pleased to report that we closed 2021 with strong momentum and performance. arbitrarydecl 640.

First I'm very pleased to report that we closed on in 'twenty, one with strong momentum and performance.

Fourth quarter sales were.

Speaker 2: were well above pre-COVID levels with continued momentum in both the size and volume of transactions.

We're well above pre COVID-19 levels with continued momentum in both size and volume of transactions.

Professional services too.

Speaker 2: took live 207 customers in the quarter.

<unk> 207 customers in the quarter.

Speaker 2: representing a record value of recurring revenue activated in a single quarter.

Representing a record value of recurring revenue activated in a single quarter.

Customer satisfaction levels are record high and reflected in our industry, leading cloud retention rate of 96, 8%.

Speaker 2: customer satisfaction levels are record high and reflected in our industry leading cloud retention rate of 96.8%

Speaker 2: which has increased 1% year over year.

Which has increased 1% year over year.

Second.

Speaker 2: Second, I want to celebrate two important milestones for the company.

I want you to celebrate two important milestones for the company.

Speaker 2: Total revenue was $1 billion and $24 million, which exceeded the billion dollar mark and exceeded our guidance.

And the total revenue.

$1 million and $24 million, which exceeded the $1 billion, mark and exceeded our guidance.

Speaker 2: And we also surpassed five million active employees on our day fours platform.

And we also surpassed 5 million active employees on our <unk> platform.

Speaker 2: Third, relating to our fourth quarter financial performance, I want you to call out the following.

Third relating to our fourth quarter financial performance.

I want to call out the following.

Speaker 2: Therefore, recurring revenue, ex-float grew by 32% year For yen to tyre loan information, capital gains were 85%

They enforce recurring revenue ex float grew by <unk>, 2% year over year.

Speaker 2: Cloud recurring gross margin excluding float grew by 170 basis points year over year to 72.2%.

Cloud recurring gross margin excluding float.

Grew by 170 basis points year over year to 72, 2%.

Speaker 2: And Data Force Wallet continues to be a differentiator for us and resonates very well with our customers.

And Dave both wallet continues to be a differentiator for us and resonates very well with our customers.

Speaker 2: We continue to sell wallet to 80% of new customers.

We continue to sell wallets to 80% of new customers.

Registration rates have increased quarter over quarter.

Speaker 2: Registration rates have increased quarter over quarter to 34% of eligible employees, which is up from 29% in Q3.

34% of eligible employees, which is up from 29% in Q3.

Speaker 2: And we continue to see 50% for top quartile customers live for more than one year.

And we continue to see 50% or top quartile customers live for more than one year.

Speaker 2: We now have over 425 customers live versus 219 Q3, and have sold over 970 customers up from 800 in Q3.

We now have over 425 customers live.

290 in Q3 and have sold over 970 customers up from 800 in Q3.

Speaker 2: The Day 4 card continues to exhibit top wallet behavior, maintaining an average of more than 25 transactions per month across the user base.

Hey, Dave both card continues to exhibit top quality behavior.

Maintaining an average of more than 25 transactions per month across the user base.

Speaker 2: Looking ahead in 2022, we're providing the following guidance for the full year.

Looking ahead in 2022, we're providing the following guidance for the full year.

Speaker 2: In May 4, recurring revenue, excluding float, is expected to grow 26-28% year over year, both on a gap and a constant currency base.

Examples recurring revenue, excluding float is expected to grow 26% to 28% year over year, both on a GAAP and a constant currency basis.

Speaker 2: Adjusted EBITDA is expected to be in the range of $180 to $195 million.

Adjusted EBITDA is expected to be in the range of $180 million to $195 million.

Speaker 2: And for the first quarter of fiscal 22, we're issuing the following guidance. Day four's recurring revenue explode is expected to grow 29 to 31% year over year.

And for the first quarter of fiscal 'twenty, two we're issuing the following guidance.

<unk> recurring revenue ex float is expected to grow 29% to 31% year over year.

Speaker 2: And adjusted EBITDA is expected to be in the range of 41 million to 47 million.

And adjusted EBITDA is expected to be in the range of 41 million to $47 million.

Speaker 2: Before we get into the questions, I'm excited to welcome Lee as co-CEO and as a member of our board of directors.

Before we get into the questions.

I'm excited to welcome Lee as co CEO and as a member of our board of directors.

Speaker 2: Since joining Ceridian in 2018, Lee has been instrumental in driving our growth and our strong execution throughout the company. And at the same time, she has built a world-class team.

Since joining ceridian in 2018, Lee has been instrumental in driving our growth and our strong execution throughout the company.

And at the same time, she has built a world class team.

Speaker 2: Just looking at some of the numbers over the last three years, revenue has more than doubled. Gross margin on recurring has increased by 6.1%.

Just looking at some of the numbers over the last three years.

Revenue has more than doubled gross margin on recurring has increased by six 1%.

Speaker 2: Customer count has increased by almost 60%, while at the same time, average customer size has increased by more than 80%.

Customer count has increased by almost 60%.

While at the same time average customer size has increased by more than 80%.

Speaker 2: In her expanded role, Lee will continue to report to me and will continue to fully drive the end-to-end operations and strong executions that are fundamental to Ceridian's growth. To be clear, as I mentioned in the stockholder letter,

And our expanded role Lee will continue to report to me and will continue to fully drive the end to end operations and strong execution that are fundamental to <unk> growth.

To be clear as I mentioned in the stockholder letter.

I Love Ceridian, and I'm not going anywhere.

Speaker 2: In fact, I've never been more excited about the future of this company. I will continue to focus on product...

In fact, I've never been more excited about the future of this company.

I will continue to focus on product innovation.

Speaker 2: driving new sales and spending as much time as possible with customers and our employees.

Driving new sales and spending as much time as possible with customers and our employees.

Speaker 2: We believe this is what a modern, future-focused company should look like, and I'm confident that my partnership with Leigh will lead to continued growth and success.

We believe this is what a modern future focused company should look like.

I'm confident that my partnership with Li <unk>.

Will lead to continued growth and success.

Speaker 2: Before we take questions, Lee, could you say a few words of introduction?

Before we take questions Lee could you say a few words of introduction, yes, Chris I can David first of all a big Thank you to you and thank you to our board.

Speaker 3: Yeah, of course I can David, first of all, big thank you to you and a thank you to our board. I am really honored to continue the partnership that we've built over the last 3 years and to continue working with what is just an amazing team around the world. As we continue to focus on the next wave of growth, just to echo David's comments.

I'm really honored kicking <unk> the partnership that we felt over the last three years and to continue working with what is just an amazing team around the world as we continue to focus on the next wave of growth.

Echo David's comments and his summary.

Speaker 3: and his summary of the great quarter and the incredible year. I'll again say we saw really strong momentum across the entire business.

<unk> quarter end, the incredibly year I'll again say, we saw really strong momentum across the entire business, we're operating really well across our strategic growth levers, which are the same they have been for the last three years acquiring new customers in our current markets.

Speaker 3: We're operating really well across our strategic growth lever.

Speaker 3: which are the same they have been for the last three years, acquiring new customers in our current.

Speaker 3: extending the dayforce platform, expanding in the enterprise, accelerating global expansion, and continuing to drive incremental revenue in adjacent markets. As an example, dayforce wallet.

Extending the day force platform expanding in the enterprise accelerating global expansion and continuing to drive incremental revenue and adjacent markets. As an example, Dave who are slowly.

Speaker 3: And what we saw closing out 2021 and now looking ahead to 2022, is that we're really executing against all five of those growth levers simultaneously. And when we combine focused execution of this great team and the current market dynamics which are driving the future of work. We believe that we have incredible potential.

Yes.

What we saw at closing out 2021, and now looking ahead to 2022.

Is that were really executing against all five of those growth levers simultaneously and when we combine focused execution of this great team and the current market dynamics, which are driving the future of work, we believe that we have incredible potential.

Speaker 3: and that we will continue to help our customers adapt and transform as we continue to build out our vision to be the always on people platform.

And that we will continue to help our customers adapt and transform as we continue to build out our vision to be the always on people platform.

Speaker 3: So just as I have been for the last three years, I'm really excited about the potential of this business, about the partnership that David and I have, and about our unbelievable leadership team and company that are aligned behind this vision and which serves to strengthen our value to our customers and increase their expectations of us as we continue to grow.

So.

Just as they have been for the last three years I'm really excited about the potential of this business about the partnership that David and I have and about our unbelievable leadership team and company that are aligned behind this vision.

And which serves to strengthen our value to our customers.

And increase their expectations of us as we continue to grow.

Speaker 3: So with that, I will turn it back to David, and thank you very much.

So with that I will turn it back to David and thank you very much.

Speaker 2: Thank you and congrats once again. Alright, let's get to Q&A.

And congrats once again.

To get to the Q&A period.

Speaker 1: Thanks, David. Thanks, Lee. As we go through the Q&A portion of the call, I will announce the name of the equity analyst. And at that point, we ask you to please unmute your line and ask your question. And then once you're finished asking, please remute your line so that we don't have any of the back

Thanks, David Thanks, Lee as we go through the Q&A portion of the call I will announce the name of the equity analysts and at that point. We ask you to please on mute your line and ask your question and then once you're finished asking please re mute your line. So that we don't have any of the background noise.

Speaker 1: We also ask that you limit your time to one question and one follow.

We also ask that you limit your time to one question and one follow up.

Speaker 1: So with that, the first question today comes from the line of Mark Marcon of Baird. Please go ahead, Mark.

So with that the first question today comes from the line of Mark Mark Cohn of Baird.

Please go ahead Marc.

Speaker 4: Good afternoon and congratulations on the great finish to the year. And Lee congratulations to you.

Hey, good afternoon.

And congratulations on a great finish to the year.

And Lee congratulations to you.

Speaker 4: Couple of questions. I mean, really impressive in terms of the wins and particularly the attach rate with regards to the day force wallet. One question that I, you know, continuously get from investors is as you continue to see the penetration of the day force wallet, is there a way of framing like what sort of contribution one could expect?

A couple of questions I mean really impressive in terms of the wins and particularly the attach rate with regards to de force wallet one question that I.

Continuously get from investors is as you continue to see the penetration of the <unk> wallet is there a way of framing like what sort of contribution one could expect.

Speaker 4: from a revenue perspective as we start going out to 22, 23, how should we frame that? Because you're clearly seeing a lot of traction there.

From a revenue perspective, as we start going out to <unk>.

'twenty two 'twenty three how should we frame that because youre clearly seeing a lot of traction there.

Speaker 2: Yeah, Mark, it's a great question. Obviously, it is a feature of the system that has helped us enough.

Our markets the growth question, obviously it is.

Feature of the system that has helped us in our win rates and I wouldn't understate the impact of that in terms of revenue contribution this year, it's still going to be largely minimal.

Speaker 2: And I wouldn't understate the impact of that. In terms of revenue contribution this year, it's still going to be largely minimal.

Speaker 2: So at the end of the year, we'll start reporting out the numbers as it becomes a little bit more material to the overall business.

At the end of the year, we will start reporting out the numbers as it becomes a little bit more material to the overall business as you can expect a $1 billion of revenue run rate.

Speaker 2: as you can expect at a billion dollars of revenue run rate.

Speaker 2: We need the revenue to get up there a little bit before we start reporting it out, as we don't report out each of the individual line items of others.

Need the revenue to get up there a little bit before we start reporting it out as we don't report out each of the individual line items of our business.

Speaker 4: How important has it been in terms of, you know, achieving the wins that you're getting? I mean, clearly when we take a look at the average, the incremental revenue from the new clients, you're clearly succeeding in terms of going to enterprise clients, both domestically, as well as internationally. How important is that relative to your class-leading, you know, workforce management systems, always on continuous Cal.

And how important it hasnt been in terms of achieve.

Achieving the wins that you're getting I mean, clearly when we take a look at the average the incremental revenue from the new clients.

Clearly succeeding in terms of.

Going to enterprise clients, both domestically as well as internationally.

How important is that relative to your class leading.

<unk>.

Workforce management systems always on continuous calc.

Speaker 4: And one last element to that is, can you talk a little bit about the pro unlimited win? Because that's interesting in terms of.

And one last element to that is can you talk a little bit about the pro unlimited wind because thats interesting in terms of.

Speaker 2: you know, basically offering the solution to their temps. Thank you. So there are a few pieces inside there. Look, we've been very successful in selling the full suite to the new Day of Force customers. Approximately, in fact, more than 35% of new customers now buy the full suite.

Basically offering a solution to their terms.

Well, it's a very few pieces inside.

Look we've been very successful in selling the full suite.

The new day pools customers.

Approximately in fact more than 35% of new customers now by the full suite.

Speaker 2: The Data Force Wallet is a component of that. And as you pointed out, it really does illustrate the always on pay time engine, which is very important to be able to deliver the instant wage access in a way that others can't do. So it does differentiate, and it does highlight, and it does increase our win rate quite substantially. The Pro Unlimited is very exciting, because as you know, a good percentage of the workforce is contingent.

The growth was warranty as a component of that and as you pointed out it really does illustrate the always on a time engine, which is very important to be able to deliver the instant wage access in a way that others can't do so it does differentiate it does highlight and does increase.

Win rate quite substantially.

Pro unlimited is very exciting because as you know a good percentage of the workforce is contingent.

Speaker 2: And this allows us now to extend the Dayforce wallet to service those types of people as well, which we think is both beneficial for them and for the content and workforce companies. So if you read through the press release with Pro Unlimited, you can actually see how it differentiates them in market Here.

And this allows us now to extend the day pools wanted to service those types of people as well, which we think is both beneficial for them and for the contingent workforce companies.

You read through the press release.

With Peru on limited you can actually see how it differentiates them in market too.

Thank you very much.

Speaker 1: Great, thanks Mark. Next up in the queue is Brian Bergen from Cowan. Brian ?

Great. Thanks, Marc next up in the queue is Bryan Bergin from Cowen Brian .

Yeah.

Speaker 5: All right. Thank you, Lee. Let me echo my congratulations.

Alright, well. Thank you Lee let me Echo my congratulations so first one.

Speaker 5: So first one, I wanted to say on 2022 outlook for day force growth. Can you give us a sense of the inorganic embedded assumption there? I know you're partially lapping a sender in one queue, but what do you expect for Adam HCM and how should we think about where that business is going to be included in a day force versus Bureau? Maybe talk a little bit about the integration of that MHCM as well.

One of the day on 2022 outlook for de force growth can you give us a sense of the inorganic embedded assumption there I know you partially lapping a center in <unk>, but what do you expect for Adam HCM and how should we think about where that business is going to be included in pay for us versus Bureau, maybe talk a little bit about the integration of Adam HCM as well.

Speaker 2: Yes, so let me start just with at a high level on Adam, then I'll hand it over to Naomi for the actual numbers. Adam, as you know, allows us to accelerate the offering of a native solution to...

Yes, So let me start just with at a high level on item, then I'll hand, it over to Miami for the actual numbers.

The numbers are.

Adam as you know allows us to accelerate the offering of a native solution to Mexico.

Speaker 2: which has significant importance with our North American manufacturing customers of the bat. Adam also has the presence...

Which has significant importance with our north American manufacturing.

Customers off the bat.

I am also has a presence in Brazil, Latin America, and the Caribbean and so over time, it will allow us to add even more native engines onto the <unk> platform.

Speaker 2: Latin America and in the Caribbean. And so over time, it will allow us to add even more native engines onto the Davos platform.

Speaker 2: In terms of the overall size, and again, Naomi will give more clarity, it's a relatively small business.

In terms of the overall size and again, you will give more clarity, it's a relatively small business.

Speaker 2: So it's not really going to contribute to the actual day force line or the overall revenue line. And Naomi, do you want to actually go through? Yeah, maybe the best way to think about it is if you're looking at the incremental revenue from M&A in 2022, if you take the additional two months of a sender, since you may remember that acquisition was effective as of March 1st. So if you take those two additional months and ADAM, you get to below 10 million of additional cloud revenue from M&A versus 2021.

So there's not really going to contribute.

Two the actual day falls line haul vehicle revenue line and Amy do you want to actually go ahead, Scott maybe the best way to think about it is if youre looking at the incremental revenue from M&A in 2022 weeks you take the additional two months of offender.

Since you May remember that acquisition was effective as of April March 1st sorry. So if you take those two additional month and eight of them you've got to below $10 million of additional cloud revenue from M&A versus 2021.

Speaker 5: Okay, thank you for that. And then just as, as relates to growth investments, you know, can you speak to maybe the magnitude incremental investments across product sales, G&I, there's obviously a lot going on as you're going international and you're broadening the platform. So maybe give us a sense of the step up and spend that you're making that you've kind of projected within that margin.

Okay. Thank you for that.

And then just as it relates to growth investments can you speak to maybe the magnitude of incremental investments across product sales G&A. There's obviously a lot going on as you go international and Youre broadening the platform. So maybe give us a sense of the step up in spend that you're making.

You've kind of projected within that margin outlook.

Speaker 2: Yeah, yeah, yeah, if I look at it from a product development management expense.

Yeah I'll go ahead.

If we're looking at from a.

Our product development and management expense in Q4 of 2021 through 2020, we were at $26 2 million, we increased that to $39 8 million year over year. So we took a step up from 11, 8% of revenue to 14, 1% of revenue which is quite significant.

Speaker 2: In Q4 of 2021, sorry, of 2020, we were at $26.2 million. We increased that to $39.8 million year over year. So we took a step up from 11.8% of revenue to 14.1% of revenue, which is quite significant.

Speaker 2: Now what we're obviously doing is we're focusing on durable growth of the company by building out the global capabilities.

What we're obviously doing is refocusing on durable growth of the company my ability now to global capabilities in 2022, we're launching nine new nature payroll engines.

Speaker 2: In 2022, we're launching nine new nature payroll engines.

Speaker 2: And that obviously creates a nice market for us, an opportunity to go global.

And that obviously creates a nice market for us and an opportunity to go global.

Speaker 2: If you'd ask me the payoff that I would expect, I would expect that the global revenue will increase to about 25% if not more than two years.

If you ask me the payoffs and I would expect I would expect that to global revenue will increase to about 25% if not more within CMS and so as we're growing the company. So I think that will further differentiate us and as I said already we're focusing in on really durable growth for the business and then if I can add a little.

Speaker 2: And so as we're growing the company out, I think that will further differentiate us. And as I said, really, we're focusing on really curable.

Speaker 3: are great for the business. And maybe if I can add a little bit of color on the investments for 2022. As you saw, we've got adjusted EBITDA in the range of 15% to 16% of revenue.

Color on the investments for 2022.

<unk> always guided adjusted EBITDA in the range of 15% to 16% of revenue.

Speaker 3: Beyond investments in products for our global capabilities, like David mentioned, we're also investing in wallets.

Beyond investments in products, where our global capabilities. David mentioned, we're also investing in wallets.

Speaker 3: with new features such as the cashback rewards, early direct deposit.

New features suggest the cashback rewards today Elie direct deposits were also planning to rollout in the UK later in the year and so we're really committed to invest in our HCM platform, we're investing in user experience as well as design platform extensibility.

Speaker 3: We're also planning to roll out in the UK later in the year. So we're really committed to invest in our HCM platform. We're investing in user experience as well, design platform extensibility.

Speaker 3: And so I say we're very successful also in attracting talents in PMT. I want to highlight that because I think in a tight labor market, that's important and demonstrates the strength of our brand.

And so I'd say, we're very successful also in attracting talents in PMT I want to highlight that because I think in a tight labor market, that's important and demonstrates the strength of our brand.

Speaker 3: On the Cloud Recurring Growth Margin, we expect a continuous improvement. You saw the improvement that we've again showed in Q4. We're going to be more efficient in our support organization through product automation, as well as shifting some of the labor and people working on the support into our show services that are in APJ.

On the cloud recurring gross margin, we expect a continuous improvement that you saw the improvement that we've again showed in Q4, we're going to be more efficient in our support organization through product automation as well as shifting some of the labor.

And people working on the support into our shared services center in a P. J.

Speaker 3: We continue to invest in sales and marketing as well to accelerate our PEPFEM growth. We have quarter carrier productivity level that I expected to be above pre-COVID level in 2022 and we're also based in a bit of additional travel and in-person events.

We continue to invest in sales and marketing as well to accelerate our pepam growth.

Quota carrier productivity level that I expect it to be above pre COVID-19 levels in 2022, and we're also baked in a bit of additional travel and in person events.

Okay. Thank you for all the detail.

Yeah.

Speaker 1: Great, thank you, Brian . Up next in the queue is Sidi Panagrahi from Mizzouho. Sidi, over to you.

Great. Thank you Brian up next in the queue is <unk> <unk> from Mizuho city over to you.

Speaker 6: Well, thanks for taking my question, and please extend my congratulations as well.

Alright, Thanks for taking my question and then Lee extend my congratulation as well.

Speaker 6: So when you started this enterprise part of the business, so wondering, you know, what are you seeing the trend on the enterprise side? It's good to see that average revenue for customer growth, but I also understand that it's a longer sell cycle and implementation cycle as well. So how should we think about current pipeline and booking spend versus go live in 2022 versus 2021?

So when you joined it started this enterprise.

Part of the business. So wondering what are you seeing that trend on the enterprise side. It's good to see the average revenue for customer growth, but I also understand that it's a longer sales cycle and implementation cycle as well So hospital piece about current pipeline.

Bookings trend versus go live in 2022 versus 2021 server sitting in Q4, we actually <unk>.

Speaker 2: So in Q4, we actually saw quite a significant shift to enterprise and our large enterprise segments relative to 2020. So quite a nice step up. On the implementation side, if you actually go through the customer highlight section of the shareholder lecture, what you'll see that stands out.

Quite a significant shift to enterprise on our large enterprise segments relative to <unk>.

2020.

Nice step up on the implementation side, if you actually go through the customer highlight.

Section of this shareholder letter, what Youll see that stands out.

Speaker 2: Is that the examples that we've caught out are all large enterprise.

Is that the examples that we've called out or large enterprises.

Speaker 2: So for example, we took live a leading managed care provider with about 50,000 employees. Just put that in reference, we took them live in 7.5 months.

A simple example, we took live a leading managed care provider.

With about 50000 employees.

Preventing referenced we took them live in seven five months.

Speaker 2: So very, very successful implementation for quite a lot of employees. On the sales side, we had tremendous success with global accounts, as I mentioned, and many of them are called out in the shareholder lecture as well. Lee, anything that you would add with color about the success that we're having in the large enterprise and enterprise like this?

So very very successful implementation for quite a lot of employees.

On the sales side, we had tremendous success with our global accounts as I mentioned and many of them are called out.

In the shareholder letter as well.

Anything that you would add with the color about the success that we're having in the large enterprise and enterprise segments.

Speaker 3: I think I would just say the pipeline is greater than it's ever been. And with the addition of Rocky and his wonderful management team, it's better qualified than it's ever been. And so as a result, we will continue to gain real momentum in this area of our business.

I think I would just say the pipeline is greater than it's ever been and with the addition of Rocky and Kids Wonderful management team is better qualified than it's ever been and so as a result, we will continue to gain real momentum in this area of our business.

Speaker 6: Okay, and then follow up to international expansion. That's one of the growth driver for you guys, unlike other vendors. So what percentage right now, international, as a percentage of revenue, and how do you think that grow in next few years?

Okay, and then follow up to international expansion. That's one of the growth driver for you guys. Unlike other vendors so what percentage right now international with Brazil.

A percentage of revenue and how do you think that throw in next few years.

Speaker 7: Yeah, so right now we have about 14% of our total revenue that's outside of North America for 2021. And as David said, as we're moving upmarket and selling to customers with presence outside of North America, we have a roadmap.

Yeah. So right now we have about 14% of our total revenue that's outside of North America for 2021, and as David said as we're moving up market and selling to customers with presence outside of North America, we have a roadmap to get to a revenue range of about 25% in next three years. So that's going to take some time we're investing.

Speaker 7: to get to a revenue range of about 25% in the next three years. So that's going to take some time. We're investing heavily in building some new capabilities, including payroll countries going live in, nine-favorals countries going live next year being released, sorry. And so that's going to help really accelerate the momentum around large enterprise and customers whose presence outside of North America.

We're heavily in the building some new capabilities.

Including payroll countries going live and online payroll countries going live next year being released sorry and.

So that's going to help really accelerate the momentum around large enterprise and customers, which presence outside of North America.

Speaker 2: The one thing that I actually would point out is not only are we going from about 14% to 25% in the next few years, but remember that the 14% at the moment does include quite a lot of Bureau revenue. We do expect to move that to the cloud as well.

Uh huh.

The one thing that <unk>.

Would point out is and not only are we going from about 14% or 25% in the next few years.

Remember, that's a 14% at the environment does improve quite a lot with Bureau revenue.

Do you expect to move that to the cloud as well.

Speaker 2: over that period of time. So if I look at our international business set today, we have over 57 countries where we currently have native aerial solutions. And the intent is to move all of those over onto the day-to-force engine over the next couple years.

For that period of time, so if I look at our international business at today.

We have over 57 countries, where we currently have nature payroll solutions and the intent is to move all of those move onto the <unk> engine over the next couple of years.

Speaker 2: David, if I may ask a follow up to your statement, what sort of uplift you see when you think of moving that deal of business of this aqua company to their force? If for several times multiplier, city, specifically we're going from payroll only.

If I may ask a follow up to your shipment what sort of uplift you see when you think of moving that bureau of business of the acquired companies to deferrals.

Several times multiples multiplies city crucifix anywhere again from payroll only.

Speaker 2: to the full HCM suite. And as you know, once you start loading in the core HR and the talent components and workforce management, the upsell potential there is quite significant.

The full HCM suite and as you know once you start loading in the core HR and the talent components and workforce management.

So potential there is quite significant.

Great. Thank you.

Right.

Speaker 1: Great. Thank you, Siddy. Appreciate the questions. Next up in the queue is Samad Samana from Jefferies. Samad?

Great.

Appreciate the questions next up in the queue is some odd Simona from Jefferies Smart.

Okay.

We can't hear you yet.

Speaker 1: 2020 will never end. Sorry, I was on mute on my phone line, not on the Zoom line. I will review the questions. I want to ask a follow-up question on the Pro Unlimited partnership more, because if I think about the, how do the economics through a partnership like that work versus doing wallet directly? And, you know, should we think about there being more opportunities like this for wallet to see distribution through partners versus Ceridian just selling it directly to customers?

This is 2020 will never end sorry, I was on mute my phone line not on the zoom right.

Okay. Thanks.

I wanted to ask a follow up question on the pro and limited partnership more because if I think about the how did the economics through a partnership like that work versus doing wallet directly and should.

Should we think about there being more opportunities like this for wallet to see distribution through through partners versus ceridian, just selling directly to customers.

Speaker 2: First of all, with the partnership with Pro, there are two revenue streams for us. One is for the Dayforce HCM platform. We get a healthy pattern from that side. And then there's the interchange revenue that we get as well. So we get both sides of it if you like. When I look at the actual wallet business...

First of all with the partnership with <unk> enrollment of the screens for US one is I pull the data pools HCM platform.

Get a healthy pattern from that side and then there's the interchange revenue that we get as well so we get both sides of it if you like.

When I look at the actual wallet business.

Speaker 2: The next real area that we'll be focusing on is allowing people who do not work for day four's customers.

The next real.

Area that we'll be focusing on is allowing people who do not work tour de force customers.

Speaker 2: to register for the wallet and use the wallet for the early direct deposit for the cash back types of capabilities. So we do see the wallet as being quite a nice platform play that we can also bring to life through our direct sales force, through partners like Pro, but also by going directly to the consumer.

To register for the wallet and use the wallet for the 30 direct deposit for the cash back.

<unk> our capabilities. So we do see the wallet has been quite a nice platform play that we can also bring to life through our direct sales force through partners like pro but also by going directly to the consumer.

Speaker 1: And is there a different type of risk? Is there any kind of risk underwriting element that's involved in that when you're doing it via a partnership, given that for your own customers, you can see what the payroll flows are? We have the same visibility when we look at Pro, because remember, they also are a payroll customer. So from a credit perspective, we actually do understand a business rather well.

And is it is there a different type of risk is there any kind of risk underwriting element that's involved in that when youre doing it by a partnership given that for your for your own customers you can see what does what the payroll flows are we.

We have the same visibility when we looked at pro because remember they also are a payroll customers. So from a credit perspective, we actually do understand the business for all of the loan.

Speaker 1: Great. And then maybe just switching gears to the core business. When we think about the Day Force Recurring Guide for 2022, I know the M&A contribution question was already asked, but how should we think about the, can you remind us how much of the ending Bureau revenue in 2021 has potential to be converted over to Day Force as we think about maybe the last

Great and then maybe just switching gears to <unk>.

Core business.

When we think about the de force for current guide for 2022.

I know the M&A contribution question was already asked but how should we think about the can you remind us how much of the ending Bureau revenue in 'twenty. One is has potential to be converted over to Dave for us as we think about maybe the last few acquisitions. The company has done just what is maybe the Tam within Bureau for.

Speaker 1: few acquisitions the company has done. Just what is maybe the TAM within Bureau for conversion and what is conversion uplift look like these days? Could you remind us?

And what is the conversion uplift look like these days could you remind us what I'll.

Speaker 2: Yeah, so if I look at Q4, Bureau revenue total of 40.7 million.

So if I look at Q4, <unk> revenue totaled $40 7 million as loan growth totaled $23. Three <unk> 7.5, and then we've obviously payroll Bureau would be for one that has.

Speaker 2: I send the total 23.3, excellency 7.5, and then the legacy payroll bureau would be 4.1. Those are the components that would be able to flow over towards Staples.

All the components that would be able to deploy over towards staples.

Speaker 2: Typically when we do those especially on the ascender and excellency side, there is a big footprint expansion play.

Typically when we do those especially on the <unk> side.

There is a big footprint expansion play in.

Speaker 2: In fact, for those customers, we typically go in first with the Dayforce Core HR and the HCM capabilities of the talent components.

In fact for those customers, we typically going first with DJ for core HR in the HCM capabilities of the talent components and then we actually look at activating the payroll through what we call titanium.

Speaker 2: And then we actually look at activating the payroll through what we call Itanium, which is a headless payroll engine interface that we've developed over the last year or so.

He is the head was pay payroll engine aimed at a pace that we've developed over the last year also and so there is quite a nice significant uplift from that and that's kind of what I alluded to earlier in the call.

Speaker 2: So there is quite a nice significant outlook from that. And that's kind of what I alluded to earlier in the call, that when I look at going from the 14% today, which is large, we have a large bureau component.

We're not looking at going from the 14% today, which is largely has a large bureau component that will move over to the cloud over the next few years and I would expect that to multiply by several times.

Speaker 2: That will move over to the cloud over the next few years, and I would expect that to multiply by several times.

Great. Thanks, so much for taking my questions.

Great. Thanks.

Speaker 5: Thanks, Samaad. Up next, we have Matt Fow from William Blair.

Thanks, Tim on up next we have Matt Pfau from William Blair.

Speaker 8: Hey guys, nice end of the year and thanks for taking my questions. I wanted to ask on the services and implementation side of your business. Have you been able to hire and retain enough capacity? And then with your partners, have they been able to provide sufficient services and implementation capacity so that implementations haven't been a bottleneck for growth?

Hey, guys.

Nice ended the year and thanks for taking my questions I wanted to ask on the services and implementation side of your business have you been able to hire and retain enough capacity and then with your partners have they've been able to provide sufficient services and implementation capacity. So that implementations haven't been a bottleneck for growth.

Speaker 2: Now, let me just preface this by saying in Q4.

No.

Pricing in Q4.

Speaker 2: The implementations came in well ahead of time.

The implementations came in well ahead of plan.

Speaker 2: In fact, there was a slight adjustment to the recurring through a 606 adjustment from a contract asset perspective, but they really did very, very nicely. We've had no issues at all on the hiring side or the retention side of the service component. And as I mentioned, customer staff levels are at record levels.

In fact, there was a slight adjustment to the recurring through ASIC for instance adjustment.

From a contract asset perspective, but they really did very very nicely.

We've had no issues at all.

On the hiring side on the retention side of the service component interim as I mentioned customer SaaS levels on a record level.

Speaker 2: In addition, as you know, we started to make the transition, especially in the large enterprise side, to having SIs lead the implementation. And that's actually gone nicely as well. And I'd expect that to accelerate into 2022. Lee, could you add a little bit of color into the SI success and what we're seeing on the prime side of it?

In addition, as you know we started to make the transition, especially in the large enterprise side to have an <unk> lead the implementation and that's actually gone nicely as well and not expect that to accelerate.

In Q2, 2022 lead could you add a little bit of color into the ESI success.

Success in what we're seeing on the prime side over that.

Speaker 3: Yeah, the one thing I would know specifically is that when you look at the go lives in the shareholder letter, one of them in particular Europe's largest veterinary care provider.

Yeah. The one thing I would note specifically is that when you look at the go lives in the shareholder letter one of them in particular, Europe's largest veterinary care provider.

Speaker 3: based in the UK with eight practices now having gone live, 14,000 employees across

Based in the UK with eight practices now having gone live 14000 employees across HR time, and attendance managed pay with.

Speaker 3: HR, time and attendance, managed pay was led primarily by a partner. And we are seeing more and more of these examples in our go live.

Led primarily by our partner and we are seeing more and more of these examples in our go lives.

Speaker 3: whether those that have actually gone live or those that are in queue to go live. And so what we're seeing is significant lifts.

Those that have actually gone live or those that are in queue to go lives and so we're seeing a significant lift for our own services organization and frankly better support for customers globally over the long term.

Speaker 3: for our own services organization, and frankly, better support for our customers globally over the long term.

Speaker 8: Great. And just to follow up, sticking with your workforce, it was mentioned that you did make some adjustments in terms of realigning your global workforce. Maybe you could just give us a little bit more detail on what you did there.

Great and just a follow up sticking.

Sticking with your workforce. It was mentioned that you are.

You did make some adjustments in terms of realigning your global workforce, maybe you could just give us a little bit more detail on what you did there.

Speaker 2: So this is the final stages of the integration. As you know, we did the acquisitions of Expelli and Ascender.

This is the final stages of the integration as you know we could be acquisitions of its priority.

Fender.

Speaker 2: over the last year. And with that, we got a number of global services offices that have very high service levels. And so what you really are seeing is a rebalancing of the workforce on a global basis with the shift of certain roles from North America to our global offices. So from a headcount perspective, there's no real change, but it's just the movement across geography.

Over the last year and with that we've got a number of global services offices that had very high service levels.

You really are seeing is the rebalancing of the workforce on a global basis with the shift of certain roles from North America.

Two our global offices, so from a head count perspective, Theres no real change, but it is just the move in a car movement across geography.

Great. Thanks, guys I appreciate it.

Speaker 8: Thanks, Matthew. Up next, we've got Michael Turin from Wells Fargo.

Okay.

Thanks Matthew.

Next we've got Michael <unk> from Wells Fargo.

Speaker 9: Hey there, I hope everyone can see me. I empathize with Samad and what he just went through. But maybe since it hasn't been asked, it's a good time, David, just to talk through the evolution of the leadership structure. I think it's pretty clear in the letter you're communicating. You're in it for the long haul, but this is the right time to start to think about.

Hey, there I hope everyone good feeling empathy.

<unk> just weren't there but.

Maybe maybe since it has been it's a good time, David just to talk through the evolution of the leadership structure I think it's pretty clear in the letter you're communicating your in it for the long haul, but this is the right time to start to think about.

Speaker 9: just sharing some responsibilities. So maybe you can just talk about, or both of you can talk about what this frees up.

Just sharing some responsibility. So maybe you can just talk about or both of you can talk about what this frees up.

Speaker 9: and how this change could be added to the overall executive team. Thank you.

And how this change could be a lift to the overall executive team. Thank you.

Speaker 2: So the first thing I call that this really is formalizing the way we run the business and have run the business over the last number of years.

So the first thing.

Online course this release former line zone the way, we run the business and have run the business over the last number of years.

Speaker 2: where I really focus on the innovation, so product side. I focus on key customers, whether it be during the sales cycle or whether it be during implementation. I spend a lot of time with our customers for events like CWT. And I also spend a lot of time going to our offices and spending time with employees through various types of town halls and the like.

We're already focused on the innovations and product side, our focus on key customers, whether it would be during the sales cycle or whether it be during implementation.

Spend a lot of time with our customers through events like CWT and I also spend a lot of time getting to our offices and spending time with employees through various types of town halls, and the like and as you know I think I had settled with that.

Speaker 2: And as you know, I think I excel with that. It's quite a good area that really does benefit the organization. Lee is spectacular.

It's quite a good job.

You know, it's an area that really does benefit the organization.

Lee is spectacular AD operations at running the end to end of the business.

Speaker 2: at operations, at running the end-to-end of the business.

Speaker 2: She's been also very successful at bringing in an unbelievable management team, while at the same time, she's also lifted up our existing people as well.

He has been also very successful at bringing in an unbelievable management team while at the same time. She has also lifted up our existing people as well.

Speaker 2: And this allows us really to focus on that durable growth component, which allows us to build a team that knows how to operate a scale that operates as one team. So, from an end-to-end perspective,

And this allows us really to focus on that durable growth.

Component, which allows us to build a team that knows how to operate a scaled that operates as one team. So any comment from an end to end perspective.

Speaker 2: Lee also is a very confident sales expert. So the strategies on sales and sales execution are probably unmatched in industry as well.

Lee also.

A very.

Our confidence our sales experts are their strategies on sales and sales execution are probably unmatched in industry as well.

Speaker 2: So for me, it is really tremendous. It allows me to continue focusing on areas that I excel and it allows us to continue leveraging Lee in ways that have really helped the company. Lee, maybe just add some color from your perspective.

So for me. It is really tremendous allows me to continue focusing on areas with IDE cel and it allows us to continue leveraging <unk> in ways that have really helped the company and Lee maybe just add some color from your perspective, Yeah. I mean, I think you said it to me, it's largely the formalization of how things have been working and.

Speaker 3: Yeah, I mean, I think you said it. To me, it's largely the formalization of how things have been working. And I hope that you read it for what it is, which is, it's a real 1 plus 1 equals 3, in that we have a world class innovator and founder in David. He gets to do even more of what he's already done, spend more time with our customers and our prospects, which is a winning combination.

I hope that you read it for what it is which is it's a real one plus one equals three in that we have a world class innovator and founder and David.

He gets to do even more of what he has already done and spend more time with our customers and our prospects, which is a winning combination and we get to leverage the fantastic management team, who has experience driving growth at scale globally. So those two things are wonderful and I am just grateful to be at.

Speaker 3: And we get to leverage this fantastic management team who has experienced driving growth at scale globally. So those two things are wonderful and I'm just grateful to be a part of it. And as I said, it's really not a significant change inside the four walls.

Part of it and as I said, it's really not a significant change inside the four walls of the business.

Speaker 9: Great, thank you. Noemi, just in framing the full year guide, there are still some macro assumptions, still some moving pieces. We've talked about employment headwinds, but the employee number looks like it grew 21% over the course of the year. So can you just, in the context of the EBITDA guide, kind of step through employment assumptions, rates, and then just kind of go through the whole process?

Great. Thank you.

I mean, just in framing the full year guide there is still some macro assumptions still some moving pieces you've talked about appointment headwinds, but the employee number it looks like it grew 21% over the course of the year. So can you just in the context of the EBITDA guide kind of step through employment assumptions rates. Some of the rebalancing efforts that have come up on the call and just provide.

Speaker 7: some of the rebalancing efforts that have come up on the call and just provide some additional context for those of us on the call. Thank you. Absolutely. So in terms of day-first recurring explode for 2022, we don't expect any significant impact from the employment levels from COVID. I think we're done, and we're back to pre-COVID level. You may recall we had about 17 million of impact in 2021, which was primarily in the first half of 2021.

Some additional context for those of us on the call absolutely. So in terms of de force recurring <unk> for 2022.

Don't expect any significant impact from the employment levels from Covid I think we're done and we're back to pre Covid level. You may recall, we had about $17 million of impact in 2021, which is a problem, which was primarily in the first half of 2021. So we were done with that and we're not going to talk about the employment levels are from Covid in 2022 as I.

Speaker 7: So we're done with that and we're not going to talk about employment levels from COVID in 2022. As I mentioned, we have a bit of M&A incremental contribution below 10 million related primarily to the two months of additional ascender revenue.

And we have a bit of M&A incremental contribution below $10 million related primarily to the two months of additional ascend their revenue.

Speaker 7: And those are really the main items and obviously the revenue from the previous sales and the significant Q4 go light that we just had.

And those are really the main the main items are and obviously the revenue from the previous sales and the significant Q4 go lives that we just had.

Okay.

Thank you.

Speaker 5: All right, thank you, Michael. Up next, we've got Arvind Ramnani from Piper Sandler. Arvind. Hi, hey, thanks for taking my questions. I just wanted to really get a better understanding of your

Alright. Thank you Michal up next we've got Arvind <unk> from Piper Sandler Arvind.

Hi, Thanks, Thanks for taking my questions.

Just wanted to Attunity data.

Understanding of you are.

Speaker 6: Your guidance, right? I'm just trying to get some estimate of how much is your wallet part of your next year's guidance. Is it closer to 1% or closer to 5% in terms of the 23 guide? If you're not able to provide that, how much of it was it as part of your FY22 numbers?

The guidance right I understand that some estimate of how much of their wallet.

Part of your <unk> guidance is it like closer to 1% of those are two 5%.

In terms of the <unk> not able to provide that.

Much of it wasn't.

As part of your FY 'twenty two numbers.

Okay.

Speaker 7: No, you want to take that? Yeah, we said we would start disclosing a number towards the back half of 2022. It's not mature enough for us to disclose that now. And so that's what we'll leave it there for now and provide more color as we increase our registration rates throughout the years.

I mean do you want to take that yeah. We said, we would start disclosing a number towards the back half of 2022.

It's a it's not material enough for us to disclose that now and so that's where we'll leave it there for now and provide more color as we increase our registration rates throughout the year as well.

Speaker 10: Okay, great. And just just on this guidance, what was the rationale for including to read hikes in the guide? I mean, we.

Okay, Great and then just just on the guidance.

What was the rationale for including two rate hikes in the guide.

We have some.

Speaker 7: sort of sense of where it has to go, but was there a reason to really include them? Yeah, so in terms of float for 2022, we expect a modest improvement from what it was in 2021, which is primarily driven by increased float balances. You saw in Q4 our float balances have increased significantly by 28% as a result of higher employment levels and simply as a result of macro improvements.

Samsung varied yeah Robert.

What was the reason because of really include them.

Yeah. So in terms of flows for 2022, we expect a modest improvement from the from what it was in 2021, which is primarily driven by our increased float balances you saw in Q4, our float balances have increased significantly by 28% as a result of higher employment levels.

And simply as a result of macro improvements.

Speaker 7: But that's really what's going to drive the slight increase in float for 2022.

That's really what's going to drive the slight increases in Florida for 2022.

Speaker 7: We don't expect the overall yield to be up from 2021. Actually, it's going to be slightly down still, which is a factor of our investment strategy. As you may recall, we have about 55% of our investments, which are held in short liquidity portfolio. So those reprice immediately at a higher yield with a month's lag or so. But the rest of the portfolio is held in fixed income, which reprises much more slowly. So you won't see a real improvement from yield in 2020.

We don't expect the overall yield a two to be up from 2021 actually it is going to be slightly down still.

<unk>, which is a factor of our investment strategy as you may recall, we have about 55% of our investments which are held in short liquidity portfolio. So those reprice immediately at a higher yield with the month cycle. So but the rest of the portfolio is held in fixed income which were prices are a lot more worried than what much more slowly. So you won't see a real.

Improvement from yield in 2022.

Speaker 10: Just one last question on margins. Certainly margins declined about 160 bits sequentially, 120 bits year on year. Can you just give us some color on some of the puts and takes on what's going on in margins?

Okay.

One last question on margins.

Margins declined over 160 bps sequentially to 120 bps year on year can you just give us some color on some of the puts and takes on.

Kind of what's going on in the margin.

Speaker 7: So in Q4, our adjusted EBITDA was higher than our guidance by about a million dollars.

So in Q4, our adjusted EBITDA was higher than our guidance by about $1 million, which is primarily driven by a higher revenue we as David referred to weeks. He has exceeded revenue in professional services. We had record go life a record number of patents going live. So these incremental revenue it doesn't.

Speaker 7: which is primarily driven by a higher revenue. We, as David referred to, we exceeded revenue in professional services. We had records go live, a record number of PEPFMs going live. So this incremental revenue doesn't yield additional margin. So that's kind of a mix of revenue that you see here in Q4.

The additional margin so that's kind of a mix of revenue that you see here in Q4.

Speaker 7: We've continued to make some investments as well in product technology and sales and marketing, and we'll continue to do that in 2020.

We've continued to make some investments as well in product technology and sales and marketing and we'll continue to do that in 2022.

Speaker 7: So as I said before, we have product and technology in wallet. We're taking, we're running out day for spiral in nine new countries in 2022. And we're also continuing to invest in sales and marketing.

So as I said before we have product and technology and while it's a we're taking we're running out of date force payroll and nine new countries in 2022, and we are also continuing to invest in sales and marketing.

Okay. Thank you mhm.

Yeah.

Okay.

Speaker 9: Great, thanks, Marvin. Next up, we have Robert Simmons from DA Davidson. Robert.

Great. Thanks, Kevin next up we have Robert Symons from D. A Davidson Robert.

Speaker 5: Thanks for taking the question. So how calmly are you able to charge PEPM upon provisioning nowadays? Like how much pushback are you getting into it from customers?

Thanks for taking the questions. So.

How currently are you able to charge them upon provisioning nowadays how much pushback are you getting used to some customers.

Speaker 5: And have you needed to get any kind of discounts or other concessions to win that kind of arrangement?

Yeah.

Have you needed to give any kind of discounts or other concessions to two when that kind of arrangement.

Speaker 2: I think it's actually been quite successful. We saw a significant step up between 2020 and 2021 and we're expecting a similar type of step up between 2021 and 2022.

I think it's actually been quite successful we saw a significant step up between 2020 in 2021, and we're expecting a similar type of step up between 2021 and 2022.

Speaker 2: The first part of this is that we had to really teach our sellers on how to position as Peppermant provisioning, which is quite honestly the norm for most cloud companies.

The first part of <unk> that we had to really teach our sellers on how to position.

Just type them on provision and which is quite honestly the norm for most cloud companies and I think we've done that obviously through the sales leadership team and it's turned out to be very well.

Speaker 2: And I think we've done that obviously through the sales leadership team and it's turned out to be very well.

Speaker 2: In some instances, yes, we do make some concessions, but we still are being very, very successful on getting the e-pep on provisioning. Ali, what would you add to that?

In some instances, yes, we do make some concessions that we still are being very very successful on getting the pep on provisioning and what would you add to that.

Speaker 3: I think I would add two things. The first is I think that the market is now well conditioned. So we're not facing the same obstacles that we may have faced a year or 18 months ago. And the second is to David's point, our sales organization is now totally fluent in the value proposition of software versus selling on go live which allows us to accelerate our growth. Through partnerships and

Yes, I think I would add two things. The first is I think that the market is now well conditions. So we're not facing the same obstacles that we may have faced a year or 18 months ago and the second is to David's point. Our sales organization is now totally fluent in the value proposition of software.

Versus selling on go lives, which allows us to accelerate our growth.

Through partnerships and through our own team.

Speaker 2: One thing that I would add, peppermint provisioning is a prerequisite for SI enablement. They go hand in hand together. And that's why I think we've seen the success that we have on the SI slide.

The one thing that I would add peppa on provisioning is a prerequisite for ursine airborne. They go hand in hand, together and Thats why I think we've seen the success that we have on the ESI side.

Speaker 5: And then what are your expectations for further M&A in the near term? Do you need to digest recent deals or do you think you have capacity for more other than small tokens?

Got it and then what is your expectations for further M&A in the near term.

Just the recent deals or do you think maybe your capacity for more other than small buckets.

Speaker 2: We did four acquisitions in 2021.

Look we did for our core acquisitions in 2021.

Speaker 2: In terms of the acquisitions, there already have been two flavors to date. One is to allow us to accelerate the growth on global, which has been consistent with the messaging we had at time of IPO back in 2018, which again is a copy of what J-Force did with Ceridian back in 2013. So we know the model works very well. We apply payroll revenue, customers' knowledge at really a discount.

In terms of the acquisitions. They already had been two flavors to date, one is to allow us to accelerate the growth on global which has been consistent with the messaging. We had at time of IPO back in 2018, which again is a copy of what April has stayed with ceridian.

Back in 2013, so we know the model works very well.

Acquire payroll revenue customers knowledge actually.

Speaker 2: And then we very quickly built out the native capability, moved the customers across and up-sell them on the HCM capability.

A discount and then we very quickly build up to date of capability move the customers across an up sell them on the HCM capabilities.

Speaker 2: That's important as well as we go up market as was mentioned. Our success rate up market is because we are differentiated on the global side, which is a base requirement for any company that probably has more than 500 employees. Lee, anything that you would add to this?

That's important as well as we go up market as was mentioned our success straight up market is because we are differentiated on the global side, which is a base requirement for any company.

He has more than 500.

Alright.

Noise.

Anything that you would add to this.

No I wouldn't add anything David you said it well.

Great. Thank you very much.

Speaker 8: Thanks, Robert. Appreciate the questions. Next up is Pinjalim Bora from JP Morgan.

Thanks, Robert I appreciate the questions next up is that pendulum.

<unk> from J P. Morgan.

Speaker 11: So great. Thank you. I'm just sitting in for Mark Murphy here. Thanks for taking my questions and the congrats on the new role. David, I wanted to ask you a little bit of a high level question on multi country, well native payroll.

Oh, great. Thank you just sitting in for Mark Murphy here.

Thanks for taking my questions and congrats on the menu David I wanted to ask you a little bit of a high level question on multi country.

When maintenance payroll.

Speaker 11: You have added a lot of capabilities, you said nine going live, Excel, Excel T ads on the APJ side and the new one, Adam, HCM ads on the LabAm side. I saw a lot of big logos being added 73,000, 50,000 if I read that correctly. Is this fair to say that multi-country kind of native payroll capabilities...

You have added a lot of capabilities, you said nine going live excel access.

On the EBITDA side, and the new one Adam <unk> has on the Latam side and so a lot of big logos being added 73000 50000.

That's critically is it's fair to say that more multi country kind of me too payroll capabilities on <unk>.

Speaker 11: are surfacing to the top as an important kind of a

Surfacing to the top as an important kind of.

Speaker 11: point that's kind of differentiating you competitively when you're going against the work days and oracles and recipes of the world.

Point, that's kind of differentiating you competitively when you are going to use the word days in North Dakota and Smbs in the world.

Okay, that's great.

Speaker 2: If you look at us from a Gartner perspective, we're in number one for payroll and obviously for workforce management. They go hand in hand in that capability.

If you look at us from a Gartner perspective, we ranked number one or two.

And obviously for workforce management that go hand in hand.

And that capability.

Speaker 2: What I would say is that in a post-COVID world, companies have become much more global in nature. There's much less of a reliance of where head office is and concentration of people.

What I would say is that in a post COVID-19 world companies have become much more global in nature.

It's much more much less of a reliance of where our head office is.

Concentration of people and you're seeing companies, where a perfect example of that with the rebalancing of our workforce across our global offices. It allows us to navigate the tight labor market by taking advantage of the people that are available across the world and other large companies are doing exactly the same thing.

Speaker 2: And you're seeing companies, we're a perfect example of that with the rebalancing of our workforce across our global offices. It allows us to navigate the tight labor market by taking advantage of the people that are available across the world and other large companies are doing exactly the same thing.

Speaker 2: It's also very important in today's world where you are seeing wage inflation. So if you look at Naomi's numbers, float balances went up by 28%. Employee count went up by 20%. So to do the basic math, that's your wage inflation that's out in the actual market.

It's also very important in today's world, where you are seeing wage inflation.

If you look at <unk> numbers float balances went up by 28% employee count went up by 20%. So if you do the basic math, that's your wage inflation that's out in the actual market share behind planning out my global workforce I need to look at what is my local labor rate on a geographic basis in order to make ends meet.

Speaker 2: So if I'm planning out my global workforce, I need to look at what is my local labor rate on a geographic basis in order to make ends meet and to hit the targets that I'm looking for. Very similar to what we're doing internally in that we want to increase our gross margin on recurring. Well, hey, we can do that by leveraging our global offices to increase our contribution margin on our recurring revenue. So yes, it's definitely become

To hit the EBITDA targets that I'm looking for very similar to what we're doing internally is that we want to increase our gross margin on recurring one way, we can do that by leveraging our global offices to increase our contribution margin on our recurring revenue.

<unk> is definitely becoming a big piece or the other compounds I would say, it's not just payroll and time HD core HR and talent as well. So at the same type of thinking goes into Thomas acquisition. The development learning management in order to grow our company globally, you have to have a consistent social values.

Speaker 2: The other component I would say as much as payroll and time is actually core HR and talent as well.

Speaker 2: So the same type of thinking goes into talent acquisition, the development, learning management. In order to grow a company globally, you have to have a consistent set of values. You have to have consistent ways of doing performance management and creating true equity across your organization. And a company like Els has products that help that. We have constructs like a global system of employment that allows someone to move across country.

Do you have to have consistent ways of game performance management, and creating true equity across your organization and a company like ours.

<unk> has products that help truck, we have constructs like a global system.

Of employment that allows someone to move across country.

Speaker 2: Very important if you look at some of the business intelligence features that we've launched is all about the same

Very important if you look at some of the business intelligence features that we've launched is all about the same.

Speaker 11: Got it, got it. Very, very helpful. Thank you. And just to follow up on sales hiring, and given the kind of the tight labor market that everybody is talking about, the great resignation and all that, how do you characterize your kind of sales hiring cadence so far in 2021, I guess, and as you look forward into 2022, how are you thinking about the sales headcount growth?

Got it got it very very helpful. Thank you and then just a follow up on sales hiring even given the kind of the tight labor market that everybody is talking about the great resignation and all that how would you characterize your kind of sales hiring cadence so far.

In 2021, I guess and as you look forward into 2022, how are you thinking about the sales head count growth.

Speaker 2: In 2021, we did a lot of lifting up of our sales organization, which really came from a change of leadership within the organization. As we discussed previously, we needed to sell as a token of revenue. So we have put the jpeace fund on us already with what we call this plan, which is 2022 one O V

In 2021, and we did a lot of lifting up our sales organization, which really came from a change of leadership with inside the organization.

As we discussed previously we needed to sell as a software company not as a service company and that required a change of behavior like definitely on provisioning selling alongside the size selling to the large enterprise and enterprise market and I think we did that transition various successfully and you can see that in the results.

Speaker 2: software company, not as a service company, and that required a change of behavior like Bethlehem on provisioning, selling alongside the SIs, selling to the large enterprise and enterprise market.

Speaker 2: And I think we did that transition very successfully. And you can see that in the results that we had, Q4 was tremendous. Lee spoke about the pipeline. And she mentioned two qualities of the pipeline. She said, first of all, it's at record levels.

We had Q4 was tremendous Lee spoke about the pipeline as you mentioned two policies with a product launch. It takes first of all is at record levels as.

Speaker 2: As important, it's more qualified than it ever has been beforehand as well.

As important its more qualified general ever has been beforehand as well so we've done that.

Speaker 2: So we've done that. And I think we've brought in just unbelievable sales talent over the last year. This year, there will be less a change, obviously, to the sales organization because I think we have the base and it's performing very nicely. Obviously, you'll see the regular performance management of the sales team, as you would expect in any organization, that is typically done at the beginning of the year before you do sales kick-off. But I guess we're daddy-p my daddy's a daddy, isn't he? Yeah. So just to set up a started level of sales, the

Thank reporting just unbelievable sales talent.

Over the last year this year there'll be less a change obviously to the sales organization because I think we have.

The basin is performing very nicely, obviously youll see the regular performance management of our sales team as you would expect in any organization that is typically done at the beginning of the year before you do sales kickoff.

Mike.

Thank you for taking my questions.

Okay.

Speaker 5: Thank you. Next up, we've got Ryan Krieger on for Alex Yoo-kin from Wolf. Ryan? Yeah, thank you for taking the question. And just to kind of continue on that same sales topic, can you just talk about how like Salesforce productivity is right now and how it compares to Greek COVID levels?

Thank you your next step we've got Ryan Krieger on for Alex Zukin from Wolfe Ryan Yeah. Thank you for taking the question just to kind of continue on that same sales topic can you just talk about how like Salesforce productivity.

He is right now and how it compares to pre COVID-19 levels.

Speaker 3: Well, again, I think we did fantastic to forward just quite nicely last year on the sales side as well. Lee, do you want to take it from a productivity perspective on what you would expect in 2022? Yeah, I mean, I'll just say a few things. Sales productivity is directly correlated to your ability to generate pipeline, your ability to qualify it, and your ability to deliver it predictably.

Well again, I think Q4, we did quite nicely last year on the sales side as well Lee do you want to take it from a productivity perspective, and what you would expect in 2022.

Just a few things.

Productivity is it is directly correlated to your ability to generate pipeline your ability to qualify it and your ability to deliver it predictably. So to Davids point, we said 2021 hiring what is an exceptional leadership team they tune the sales organization.

Speaker 3: So to David's point, we said 2021 hiring what is an exceptional sales leadership.

Speaker 3: team, they tuned the sales organization so that we could take advantage of the market. They did, and the result was exceptional in Q4 and for the full year. And it's our expectation that we will be able to continue to deliver the results that you're seeing. And what you're seeing is increasingly large customers, global customers, our performance in every region, and our ability, frankly, to sell the full suite.

<unk>, so that we could take advantage of the market.

I did and the result was exceptional in Q4 and for the full year and it's our expectation that we will be able to continue to deliver the results that youre seeing and what youre seeing is increasingly large customers global customers our performance in every region and our ability.

<unk> frankly to sell the full suite.

Speaker 3: to increasingly large customers. So I think you should expect us to continue to really press in and do that.

To increasingly at large customers. So I think you should expect us to continue to really pressing and do that.

And thank you very much.

Speaker 1: Great. Thanks, Ryan. Next up is Bavin Shah from Deutsche Bank. Bavin?

Great. Thanks, Brian next up is <unk> Shah from Deutsche Bank bother.

Speaker 5: Great, thanks for taking my questions and congrats to Lee. David, I know you spoke a little bit about this in your shareholder letter, but maybe you can elaborate on the demand environment, and if anything is changing in terms of just giving the labor market, and then maybe you can also just touch on any changes in the competitive landscape, given a high profile security incident happened recently.

Great. Thanks for taking my questions and congrats Julie David I know you spoke a little bit about this in the shareholder letter, but maybe you can elaborate on the demand environment and if anything is changing in terms of just given the labor market and then maybe you can also just touch on any changes in the competitive landscape given.

High profile security incident happened.

Speaker 2: On a competitive side, I would say that our win rates have increased quite substantially year over year.

We are on the component side I would say that our win rates have increased quite substantially year over year.

Speaker 2: I do believe when it comes to the upper end of major markets and into the enterprise space, we have the best product in market and that's shown in our results and I would expect us to dominate that particular segment.

I do believe when it comes to the upper end of our major markets and into the enterprise space. We have the best product in market are not shown in our results and I would expect us to dominate that particular segment.

Speaker 2: We also saw significant movement into the large enterprise space, especially in the second half of the year. As you know, those evaluations take a bit longer. So I think that's actually going very nicely. Pipeline, record levels, best qualified pipeline that we've had to date. And so we're confident on the sales this year. But let me hand it over to Lee again.

We also saw significant movement in the large enterprise space, especially in the second half of the year.

Those are evaluations take a bit longer so I think that's actually going very nicely.

<unk> record levels as quantified pipeline that we've had to date and so we're confident on our sales force here, but let me hand, it over to Lee again.

Speaker 3: Sorry, David, I was trying to get off mute to say nothing. I think you said exactly what I would have said.

Sorry, David I was trying to get off mute to say nothing I think you said exactly what I would have said.

Speaker 5: Awesome. Just a quick follow-up for Naomi. I know you talked about float not being a material impact this year, but to the extent we get further rate increases versus the 50 bits that you have kind of projected into 2022, what's your philosophy on letting that additional profitability drop to the bottom line versus kind of reinvesting that back?

Awesome, just a quick follow up for Friday night, I mean, I know you talked about floating that being a material impact this year, but to the extent, we get further rate increases versus the 50 bps that you have kind of projected into 2022, what's your philosophy on letting that additional profitability to drop to the bottom line versus kind of reinvesting that back into the business. Yeah. That's a good question first of all on <unk>.

Speaker 7: Yeah, that's a good question. First of all, on float, what I said is, we don't, there's going to be a time lag before those rate increase really translate into additional revenue because of our investment portfolio strategy.

Well, what I said is we don't expect we're going to be a time lag before those rate increases really translate into additional revenue because of our investment portfolio strategy.

Speaker 7: In terms of sensitivity analysis, another data point that I want to give you is we said that float revenue would increase by about 23 million over a 12 month period.

In terms of sensitivity analysis and other data point that I want to give you as we've said that our float revenue would increase by about $23 million over a 12 month period.

Speaker 7: Period, if market yields change by 100 basis points. So that's another data point to give you an idea of how.

If market yields change by 100 basis points. So that's another data point to give you an idea of how the long term effect of the rate hikes can have on our on our float income in terms of what you forget some some additional upside in the year, obviously, where we will be looking at reinvesting that for the most part in our in our growth.

Speaker 7: the long-term effect of rate hikes can have on our float income. In terms of if we get some additional upsides in the year, obviously we'll be looking at reinvesting that for the most part in our growth. We also have a lot of things to go after in terms of investment initiatives with the wallet, as I said, with the global payroll capabilities, as well as additional Kodak carrier to go after pipeline. And quite frankly, if there's a lot of pipeline to go after, we'll certainly go after it.

So.

A lot of things to go after in terms of our investments initiatives with the wallet as I said, we see the global payroll capabilities as well as additional quota carrier to go after pipeline quite frankly, if there is a lot of pipeline to go after will certainly go after it.

Speaker 7: but we'll also try to improve our gross margin. Cloud recurring gross margin will continue to improve. We've seen that we can do that over and over. Each quarter, we've seen sequential improvement of our cloud recurring gross margin. So that's going to be a long-term profitability driver for us. And so that's what we're going to go after for...

But we're also trying to improve our gross margin cloud recurring gross margins will continue to improve.

Seeing that we can do that over and over each quarter, we've seen sequential improvement of our cloud recurring gross margin. So that's going to be a long term profitability driver for us and so that's that's what we're going to go after for 2022.

Speaker 2: One thing if you look at the letter on page 12, we outline that quite clearly. We've seen that they're going to be two 25 basis points increases in both the trade rate and the Canadian bank rate in March and of June . And as Naomi mentioned, each 100 basis points amounts to about $23 million of both revenue and EBITDA.

One thing if you look at that right now.

Ill, let her on page 12, we outlined that quite clearly we've assumed that they are going to be $2 25 basis points increases in both the fed rate and in Canadian banking.

Bankrate.

March end of June .

And as Miami, you mentioned, each 100 basis points announced here about $23 million of.

Both revenue and EBITDA.

Perfect. Thanks for taking my question.

Speaker 1: Great, thank you. Next up on the queue is Remo Lengchao from Barclays. Remo? Hey, thanks for tweeting me in.

Great. Thank you our next up on the on the Q is raimo and Chow from Barclays Raimo.

Thanks for squeezing me in.

Speaker 11: The first question, I have two questions. First one is, David and Leer, if I look at the improvement in pipeline coverage, et cetera, how much of that is that driven by the improvement in pipeline coverage?

The first question I have two questions first one is.

As David and if I look at the improvement in pipeline pipeline coverage et cetera, how much of that is is that driven by your operating he will work full force and some of the industries that are coming back now post pandemic kind of a much more searches in a more like a good fit for you.

Speaker 12: You are offering people and work force and some of the industries that are coming back now post pandemic.

Speaker 12: kind of are much more suited in our like, you know, good, good fits for you. And so in that respect, you know, we could see this as a multi quarter situation that, you know, post pandemic people are starting to look at these areas again, and you were kind of actually a very good fit in there.

Sure.

So in that respect we could see this as a multi quarter situation.

Post pandemic people are starting to look at these areas again, and youre kind of actually a very good fits in there.

Speaker 12: And then that's the first question. The second question, David, on the wallet side, what do you see in terms of competitive reaction? Because

And then that's the first question the second question.

David on the on the wallet side, what do you see in terms of competitive reaction to crews Youre, obviously, the only one that one of the students are the only one that can offer it because you have to be continuous payroll and drive it out of your system, but it is a competitive advantage of our guys will likely try to kind of say all I can do something similar but they need to have some.

Speaker 12: You're obviously the only one that can offer it because you have to continue with it and drive it out of your system.

Speaker 12: But it's a competitive advantage and other guys will likely try to say, oh, I can do something similar, but they need to have some roundabout solution around that. What do you see in terms of reaction there in the market towards that differentiating factor? Thank you. I'm going to start with the second part of the question and then hand it off to Lee for the third part of the question.

Some roundabout solution around that what do you see in terms of reaction. They are in the market to watch that differentiation factor. Thank you.

Start with the second part of the question and then hand, it off to link or first part of the question on.

Speaker 2: On the wallet side, we are seeing the competitors launch

On the water side, we are seeing in the competitive launch similar types of products, but those products as you know our bolt on tech, which makes the reconciliation at the end of the pay period very very difficult and in all cases. They are the major differences, we don't require an agreement between the wallet holder.

Speaker 2: similar type of product, but those products, as you know, are built on text.

Speaker 2: which makes the reconciliation at the end of the pay period very, very difficult.

Speaker 2: And in all cases, the major difference is we don't require an agreement between the wallet holder

Speaker 2: And us, we only have an agreement with the employer. And then the wallet, as you know, is free, effectively for the employee to use in all regards. We don't charge any membership fees or interest rates.

<unk>.

And as we are.

Do you have an agreement with the employer and then the wallet as you know is free effectively 40 employees to use in all regards we don't charge any membership fees or interest rates and stuff.

Speaker 2: So the other companies can do early wage access, which is effectively a loan. They can do early direct deposit, which as you know we do quite well as well, but they can't do the streaming of pay, which is really where the industry is going to land up. So as I said, it has had a nice impact on the...

So the other companies can do early wage access which is effectively a loan. They can do early direct deposit, which as you know we do quite well.

Well, but they can't do the streaming of pay which is really where the industry is going to land.

And so as I said it has had a nice impact.

On the win rates of our customers in.

Speaker 2: In terms of your first question before I hand it over to Lee, we are being very successful on the talent side as well. Over 35% of our new customers are buying the full suite.

In terms of your first question before I hand, it over to Lee.

We are being very successful on the talent side as well.

75% of our new customers are buying the full suite.

Speaker 2: And so we're seeing a significant lift up in the pattern that we're getting from the actual client.

So we're seeing a significant lift up in the peplum that we're getting from the actual clients.

Speaker 2: Lee, do you want to speak a bit more about the impact that the economy coming back in our strength and our differentiation, quite honestly, in peril of time and attendance workforce management is having?

Do you want to speak a bit more about the impact that the economy coming back and our strength and our differentiation quite honestly in payroll time and attendance workforce management to southern Yeah, I mean, I think it all begins with the market. So.

Speaker 3: Yeah, I mean, I think it all begins with the market. So as David said earlier, every single employer in the world is wrestling with the change in market dynamics, the globalization, the fact that employees want to work in a distributed way, the fact that they need to continue to grow culture in a distributed fashion. These are all phenomenon, frankly, that every employer is facing, and as a result, they're turning to companies like us in order to be able to support them, which is evident.

As David said earlier every single employer in the World is wrestling with the change in market dynamics, the globalization and the fact that in place went to work in a distributed way. The fact that they need to continue to grow culture in a distributed fashion.

These are all phenomenon frankly that every employer is facing and as a result, they are turning to companies like us in order to be able to support them, which is evidenced in our pipeline.

Speaker 3: in our pipeline and frankly in our results. So we have an opportunity really to do two things. We have an opportunity to go in and sell a full human capital management suite. You would see us doing it. There's examples in the shareholder letter of an Australian company with 9,500 employees operating across the region that bought full human capital management from us.

And frankly in our results.

So we have an opportunity really to do two things we have an opportunity to go in and sell our full human capital management suite, you would see us doing it as examples in the shareholder letter, it's an Australian company with 9500 employees.

Operating across the region.

<unk> full human capital management from Us.

Speaker 3: At the same time, we have the opportunity to be able to go in and plant a wedge, as is the case in some of our largest North American and global go-lives, and then expand from there. And as David noted earlier, we're seeing massive traction by going back and selling back into the base over time, now 31% of revenue. So we will continue to do that.

At the same time, we have the opportunity to be able to go in and plant a wedge as is the case in some of our largest north American and global go lives and then expand from there and as David noted earlier, we're seeing massive traction by going back and selling back into the base over.

Time now 31% of revenues. So we will continue to do that.

Speaker 12: Congratulations. Thank you and good luck. Thank you.

Jeff Congratulations thank you and good luck.

Speaker 8: Thank you. And next up is Dan Jester from BMO. Dan.

Thank you and next up is Dan Jester from BMO Dan.

Speaker 13: Great. Good afternoon. Thanks for taking my question. David on the wallet. Could you just help us think about the global journey here? Obviously, US, Canada, UK is coming this year. How should we be thinking about the pace in which you are going to be able to

Great. Good afternoon, Thanks for taking my question.

David on the wallet could you just help us think about the global journey here, obviously, the U S. Canada UK is coming this year, how should we be thinking about the pace in which you are going to be able to use the wallet globally do you need to have a native payroll engine in the country before you launch it just help us think about sort of the medium term trajectory there.

Speaker 13: use the wallet globally, do you need to have a native payroll engine in the country before you launch it? Just help us think about the medium term trajectory there. Thanks, Daniel. We launched the wallet in the UK this year. That'll be followed by Australian New Zealand next year.

Thanks, Danielle we launched in the water in the UK. This year that'll be followed by Australia, and New Zealand next year.

Speaker 2: And then we'll take it from there as we bring on the other nine NATO payroll engines. So going into kind of more of the APJ type of market as well. There's a slight difference in the financial model as well. As you know, we have interchange in the US and Canada. It drops down by 60 significantly when we go into the UK market. And when you go into kind of the Australia market and such, it almost disappears. So it'll be a different pricing model that we'll use for the wallet in another year.

And then we'll take it from there as we bring on the other nine major payroll engines, so going into kind of more of the PGA type of market as well.

There is a slight difference in the financial model as well as you know we are into change in the U S and Canada.

<unk> it drops down quite significantly.

When we go into the UK market and when you go into kind of the Australia market and as such it almost disappears. So it'd be a different pricing model that we use for the royalty tiers.

Speaker 13: Great. And then if I remember when you were introducing the wallet a few years back, I think one of the things that was really exciting is that...

Okay, Great and then if I remember when we were introducing the wallet a few years back I think one of the things that was really exciting is that employees could take the wallet with them if they changed employers and so given the churn that we've seen in the labor market over the year I know, it's pretty early but are you seeing examples of customers are.

Speaker 13: employees could take the wallet with them if they changed employers. And so given the churn that we've seen in the labor market over the year, I know it's pretty early, but are you seeing examples of customers or employees when they change jobs, take the wallet and use the wallet at the new employer? Thank you. Yeah, Dan, we actually are seeing some of that. And I mentioned that a little bit earlier in terms of where we're taking the wallet next, not only on a global basis.

Employees when they change jobs take the wallet and use the wallet at the new employer. Thank you Dan.

We actually are seeing some of that and I mentioned that a little bit earlier in terms of where we're taking the wallet mix not only on a global basis.

Speaker 2: But the constructs have been able to download the wallet application irrespective of who your employer is and to use it for early direct deposit for the cash reward program that we have in place at the moment and the financial wellness offerings that we'll be bringing onto the wallet as well this year. So that is very much part of the strategy. Great. Thanks.

But the cost structure of being able to download the wallet application irrespective of who your employer is and to use it for early direct deposit.

For the the cash reward program that we're having in place at the moment and the financial wellness offerings that we'll be bringing onto the wireless as well as this year. So that is very much part of our strategy.

Thank you very much.

Yeah.

Yeah.

Yeah.

Speaker 8: Great, thank you. And that actually concludes our questions for this evening. I want to thank everyone for attending and really look forward to the discussion throughout the rest of the quarter and throughout 2022. Good night.

Yeah.

Great. Thank you and that actually concludes our questions for this evening I want to thank everyone for attending and really look forward to the discussion throughout the rest of the quarter and throughout 2022.

Good night once everyone hi, everyone.

Okay.