Automatic Data Processing Inc (NASDAQ:ADP) Q2 2015 Earnings Conference Call - Final Transcript

Feb 04, 2015 • 08:30 am ET


Automatic Data Processing Inc (NASDAQ:ADP) Q2 2015 Earnings Conference Call - Final Transcript


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Good morning. My name is Ashley and I'll be your conference operator. At this time, I'd like to welcome everyone to ADP Second Quarter Fiscal 2015 Earnings Webcast. I'd like to inform you that this conference is being recorded, and all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. (Operator Instructions)

Thank you. I'll now turn the conference over to Ms. Sara Grilliot, VP, IR. Please go ahead.

Sara Grilliot

Thank you. Good morning. This is Sara Grilliot, ADP's VP, IR and I'm here today with Carlos Rodriguez, ADP's, President and CEO, and Jan Siegmund, ADP's CFO. Thank you for joining us for our second quarter fiscal 2015 earnings call and webcast.

Before we get started with Carlos' commentary on the quarter, I want to give you an update on our Investor Day. The event will be held on March 3, in New York City and we have an exciting agenda plan that will showcase our new products and include an update on our business and strategic initiatives. We look forward to seeing you there.

(Forward-Looking Cautionary Statements)

With that, I'll now turn the call over to Carlos.

Carlos Rodriguez

Thank you, Sara and good morning, everyone. This morning we've reported solid results for our second quarter of fiscal 2015, including revenue growth of 7% and worldwide new business bookings growth of 15%. During the quarter, we increased the number of businesses in the cloud to 480,000 and migrated 22 million users to our new user experience, providing them with a new way to access their pay information. And since last year, we have more than doubled the number of mobile users to 3.6 million. And we are on track with our client migrations and are pleased that we have migrated almost all of our small business clients to ADP RUN. We now have fewer than 2,000 clients left from the legacy EasyPay platform. We're excited as we prepare to sunset this platform in the coming weeks.

Our continued progress was made possible by our investments in innovation and our laser focus on leading in the Human Capital Management or HCM market. We remain optimistic as our strengthened portfolio of strategic platforms continue to experience success in recent months. This success is evidenced by our year-to-date record client revenue retention in both the US and internationally in our strong new bookings growth as clients of all sizes are seeing the value in ADP's integrated offerings and the value we provide in helping them manage their workforce.

In US, we continue to be focused on growing our suite of integrated cloud-based HCM solutions and we are pleased with the number of new clients choosing our flagship platforms ADP RUN, Workforce Now and Vantage as well as the adoption rates of additional modules by our existing client base. Our HR Business Processing Outsourcing Solutions, especially our PEO, continued to perform quite well as businesses look to fully outsourced, increasingly complex HR processes to ADP.