Listen, I think in the interest of time, we'll get going. We're thrilled. I'm Kevin McVeigh for the UBS research department here. We're thrilled to host Dayforce CFO, Jeremy Johnson. I think this might be your first conference, right? No. According to UBS. Maybe second or third. Second or third. Second or third. Second or third. Yeah. But in a while. So, we're actually absolutely thrilled to have Dayforce here. What I typically do with most of these is start with the initial introduction on the company. I think a lot of you folks know the company, but I think it's always so helpful to do that, Jeremy, not only for folks in the audience, but also for the folks online. And just as a reminder, I try to keep these as collaborative as possible. So if there's any questions in the room, we've got folks that can pass around a microphone, and I also have an iPad for anybody online. So if you have any questions, they'll come in through the iPad, and we can ask them on your behalf. But maybe start a little bit, you know, I think you've got a unique view on Dayforce in particular, since you were the CFO at one point and have come back more recently. But just talk to the Dayforce story today a little bit, because I think one of the things that have been really unique and underappreciated is some of the real meaningful transformation the company's gone through, which I think really underappreciates the predictability of the model. But just maybe talk to that a little bit, little bit competitive positioning, because the question we get a lot is, you know, where you folks sit relative to the mid to down market players. So maybe start there a little bit, and you've got a ton more questions, but I think that's a good place to start, particularly given we had a really effective Investor Day a couple of weeks ago, which we'll get into as well. That's great. Well, first of all, thanks for having me. Sure. It's great to be here, and it's good to see everybody. Look, I think Dayforce has been through quite a transformation, and that transformation really started when we brought together Dayforce and Ceridian back in 2012 time, and that's actually when I started at Dayforce. From 2012 to really 2018, the idea was to bring the compliance and payroll of Ceridian in with the workforce management expertise of Dayforce and put it onto a single application. That single application allows you to do what we call the Continuous Calculation of net pay. That allows for things like the Dayforce Wallet and some of the adjacencies that we do, and essentially allows anyone to see their earned wages during the active pay period. It's a pretty unique innovation in payroll and probably the only innovation in the payroll workforce management space in the last 20 or 25 years. From 2012 to 2018, we focused on building the product. That is the combined, you know, platform of Dayforce with the Ceridian payroll engine and tax engine and the Dayforce Workforce Management. We also knew that beyond that, it allowed us to do some pretty interesting things, like build out the entire HCM suite onto the single application of Dayforce, and also build out native global payroll applications to allow you to do the continuous calculation in native jurisdictions as well, so we built it out with U.S. and Canada in mind. We then expanded into U.K. and Ireland, and now we're going into Germany and Europe. We've got Australia, New Zealand, Singapore, and a few other territories where we can go native and then build a full platform play across the globe. In 2018, we had our IPO, a very successful IPO, and from 2018 to now, it's basically been about building out that full HCM suite. We brought in Joe Korngiebel from Workday, who basically did the same thing at Workday, building out their HCM suite, and came in and filled out all the edges. So we now go beyond just the compliance. We have the entire talent modules as well. The way we think about it and the way we compete is really in two segments. We call it major markets. It's about 500 to 3,500 employees. In that segment, it's a full HCM suite that we're selling. We typically go in with an ROI or consolidation play, and we're delivering quantifiable value by replacing, on average, 12 different solutions with one Dayforce solution. That seems to be resonating really nicely, and we're having good success in the major markets this year. In the large enterprise segments, enterprise and large enterprise, so 3,500 and above, we go all the way up into the hundreds of thousands of employees. We still start with compliance modules, and that's the pay workforce management. Benefits is really where we start, and then we can land and expand as we move on with that relationship and move and mature that relationship with the customers. The competitive set for us is, you know, largely the same, and it's always been. It's UKG, it's Workday, it's ADP. As you move up, you still see the SAPs and the Oracles of the world. And that really hasn't changed. There's a lot there. Very helpful. The one thing I want to unpack a little bit, because I feel like it gets lost on the market sometimes, is how unique the technology is, right? Like, your ability to kind of pay almost real time is unique to your tech stack. So maybe talk to that a little bit, and I think one of the more effective ways I've tried to articulate it is, you can almost, y ou do pay literally real-time because the technology allows you to do that, as opposed to a lot of your competitors, it's essentially a payday loan, right? Because of the, s o maybe talk to that technology a little bit. And you know, with that, you know, you've obviously gone through a meaningful client transformation, where a lot of the legacy. Ceridian clients were on-prem. You've shifted them into the cloud. So, you know, your cloud business is about 85% of revenue today, up from about 25%, I think, back in 2018. So it's a real meaningful shift, and I'm gonna go somewhere with that after you answer this question, just because there's a real margin opportunity for cash flow. But maybe we talk that a little 'cause I think the technology is probably one of the more underappreciated parts of the story, particularly given the complexities in the enterprise space. Yeah, and you know, we realize the benefits of kind of our technology innovation through the Dayforce Wallet, but we also, you know, use it to win new business. And there's kind of we built this the product so that you could do the continuous calculation. And the reason we ultimately built it was because we knew payroll and HR people were feeling pain in their existing products. And we built it because, in a historical world, you had time and pay in separate systems, and you can't start pay until you run time. And your time system needs to be imported into your pay, and then you can start, and guess what? You have about two days, a really tight crunch to finalize your payroll, and ultimately, you kind of commit pay when you run out of time, as opposed to when you're ready. And so you lead to errors, you have risk from a compliance standpoint, you might have the Department of Labor you know knocking on your door, which is something that nobody wants. So we built it for that purpose, really, to solve a pain point that our you know prospective customers and our existing customers. And we actually realized that I think it's shown nicely through the Dayforce Wallet, as you mentioned, because when you have this ability to, you know, now do a continuous calculation, you can do those audits, not only do those audits throughout the active pay period, but you can also allow people to access their earned wages during the active pay period. And and we built out the product called the Dayforce Wallet. Essentially, it's you can, you know, download the application, see a card, request a card, and see your earned wages during the active pay period. Access those wages for free, move them onto your card for free, and then when you go spend, that's when Dayforce makes our money, on the interchange, when you go spend. We also have, if you wanna move it off to a different, you know, bank account or a different wallet, you can do so with some fees, and it's a really unique differentiator for Dayforce in that, you know, it started with, you know, nothing. Last year, we had about $12 million in revenue on that product. It's gonna be above $30 million in this year, and it's a really nice way to kinda highlight our competitive differentiation. Yeah. No doubt. No doubt. I wanna talk about the 2024 guidance, 2025 guidance a little bit, and then the longer term, the 2031, the Investor Day. But one thing I wanted, 'cause we get the question a lot, is to kinda what the addressable market is. And one of the things that was really, I think, brought to light at the Investor Day was how much the TAM has grown, right? And I think you expressed that through kind of, you know, the per employee per month. The common metric that we kind of focus on is PEPM. Now, that's kind of shifted from about $12 up to $48. So maybe talk to that a little bit, and within that, talk to the incrementals, 'cause obviously, the sellback to the base is a much higher margin than the kind of, you know, new logo. So maybe talk. We're gonna talk about the targets a little bit, but I want to start there, 'cause I think the growth is one of the things that helps solve some of the competitive questions we get. Yeah. The HCM TAM itself is growing. You know, depending on what you look at, it's growing, you know, around 10% a year. Our ability to access that TAM is also expanding, and it has expanded. When we started with payroll and time, you know, we could only access a certain portion of that HCM market. As we build out the HCM suite, we can now access more and more of that and more TAMs available. What that looks like for us is not only our global expansion, but also our product expansion, and our expansion into managed services, allows us to go back and sell into the base of customers that we have, you know, gotten over the last few years, where we didn't have that ability. So we have a bunch of white space inside our customer base that we can go back and cross-sell, and it's an area of focus for us. The way I kind of think about it is two ways. One, at about, you know, kind of 1,500 to 2,000 employees, which is our average customer size, we sell them the compliance modules, which is pay, benefits, and time, and that's about $10 to $12 per employee per month. As you add on the talent and analytics functionality, you can get that same customer double, so now, another $10 to $12 or $20 to $24 per employee per month. We can also now sell them managed services, which is essentially us being the payroll team for you. Payroll, it's not a fully outsourced product, but it's outsourcing your payroll functionality to us, and we can get another $10 to $12 per employee per month at that, you know, kind of 1,500 to 2,000 employee range. We now have the ability, we think, to go back and sell additional, call it intelligence, so Copilot and automated agents, which can get another 5 to 7% on top of that. So that's the first way we kind of see this TAM expanding. I think the second way is, you know, in the past, we probably sold about 30% in 2023. It was actually 30% of our total sales were add-on sales to the base, so customer base sales. This year, we're around the 40%. We chose to invest this year because the product is ready. And we think our managed margins are at a spot where we can lean in. We know the product has some the ability to go and realize some of that white space there. And so we built out a customer-based sales team and are having a lot of success this year on that. So I kinda look at it in both ways there. Just to wrap up this point, I think you also talked about some real potential margin expansion in Managed Services, and that, where that is today, and what you can. I think the hope is we get it closer to corporate average. Maybe help frame what drives that. Yeah, that's right. Look, managed services is something that we've had a demand for, for a number of years, but we haven't leaned into proactively until now, and the reason we hadn't leaned into proactively is because we hadn't had the margin profile yet. You know, the margin profile was pretty ugly, when you first started selling it, and we really did it as almost a favor to some customers that said, hey, we really want this, but we saw an opportunity to expand margins through both automation, lower cost jurisdictions, of some resources there, and then using technology to solve the problem and scaling, you know, one person over multiple clients, and we've gotten the margin profile that close to that of the software margin profile. So if we're at about 80% on the cloud recurring gross margin this year, the margin profile is, you know, kind of in the low 70s% range of the managed. And so now we feel comfortable leaning into it, and it's certainly a nice boost to revenue, and it's a nice cross-sell opportunity, and there's not really much downside anymore. Makes a lot of sense. I may stop there, see if there's any questions in the audience. Keep going then. Maybe we'll talk about the 2024 guidance a little bit, the initial 2025, and then 2031. And I think a big area of focus for the market's obviously been on the margin expansion, as well as the free cash flow conversion. And, you know, I think one of the things we took comfort in was, you know, the buyback that you announced earlier in the year. So maybe remind us, 'cause obviously there's only one quarter left in the year, 2024. It was really encouraging to see the initial or implied, I don't want to be too specific, whatever the term was on 2025, but maybe talk to some of the thought process on that. You know, particularly I think you're talking about a 12% plus free cash flow margin in 2025, scaling up to 20% plus. And maybe just talk about some of the puts and takes within the context of, you know, the revenue build and then the margin and cash flow, because it's obviously been an area. And then to the extent, I don't know if you can comment on obviously, there's one quarter left in 2024. But one thing I wanted maybe on, just on 2024 is, I don't think sometimes the market appreciates how predictive some of the revenue is, right? And I think part of that is just, you know, the average client size is a lot larger, the implementation's a little bit more involved. You know, I'm not trying to put words in your mouth, but there's a fair amount of visibility, particularly as we've got one quarter left. Maybe talk to that a little bit, and then, you know, some of the building blocks on 2025 and then into 2031 as well. That's good. Yeah. So in, we do have a lot of visibility in our business, and it comes from the fact that we invoice our customers on a per employee, per month basis at go- live. And it that allows us, and we try to pass that visibility down to the investors and the investment community through our guidance. It allows us to set very tight ranges, it allows us to, you know, feel confident, and then it allows us to plan the business from a cost perspective really nicely. We've put an outsized or an emphasized focus on profitability this past year. And it's, you know, I think, it's an area of focus for me. It's something that I hear from investors, it's something that I know that we can improve profitability. And included in that is also a transition to free cash flow and a focus on free cash flow, as opposed to just on Adjusted EBITDA or other profitability metrics. So the guidance that we gave for next year, on a prelim basis, or you know, kind of a quarter earlier than we normally would, is revenue growth of 14 to 15%, excluding float on a constant currency basis. Adjusted EBITDA margins above 31%, and free cash flow margins above 12%. And both of those profitability metrics are pretty significant expansions over 2024. It's also expansions when we can see a headwind coming from float, which, you know, for us, is a nice tailwind to our business, but when rates come the other way, you know, it kind of hurts us from a profitability perspective. So if you think about how we're driving profitability in the business, we're actually driving through that the float headwind that we expect for next year. I think when I think about profitability, it really comes in the form of kind of two or three things. The first one is the recurring gross margins. You know, we're nearing 80% on the cloud recurring gross margin. We don't look at that as a ceiling. We think there's still room to go there. We think there's room for, you know, obviously expanding through the cross-sell motion that we have, and the upsell motion. So as you add products, you don't necessarily have to add people at the same rate. We certainly think there's room to get more efficient from a scales perspective, from a low-cost geography perspective, and from an automation perspective as well, and that can all help our cloud recurring gross margins. As you think about G&A, it should be an area of consistent scale for us, a nd that's what you've seen in the past, and you'll should expect it in the future. And then specifically, as you think about next year, this year was an area of investment in sales and marketing for us, and we invested in customer-based sales. We invested in some major market sales teams. You know, next year, I think you'll see us reap the productivity of those investments. We also invested in brand this year as well, and we'll continue that investment, but we're gonna start to reap the productivity from some of that investment, and you should see that in our free cash flow and Adjusted EBITDA. Yeah. One of the things, too, I think you talked to a little bit, but maybe just any thoughts on how, you know, our view on GenAI is we think there's, it's more an operational opportunity in terms of expense leverage, as opposed to, and this is across HCM, you know, I don't think there's a step function change in revenue from it, but maybe talk about how that factors into just implementation. Then, you know, again, I think one of the things that we appreciate is how much the revenue is remixed, right? I mean, the on-prem business has been a little bit of a headwind, right, because that's revenue running off as the cloud scaled. You know, that becomes smaller and smaller and actually should help the revenue. Then, the professional services dynamic, because obviously, there's been, I think, a little bit of an initiative to shift some of that capacity to GSIs, which should help the margin as well. So, you know, maybe just, I know there's a lot there, but it all factors into, I think, the margin progression, particularly to your point against. Maybe just remind us, because I can't even remember, like, what some of the float assumptions were for 2024 as opposed to 2025, maybe the headwind you're working through there. Yeah. Maybe I'll start with GenAI and then move into some of the professional services dynamics, and then we can talk about float. On some of the AI products we have, we've got a really nice, I think, head start there because of the way our product is platformed. We have a single application with a kind of a single code base across our entire platform. And what that means is that it sets us up really nicely to build things like a Copilot, which is out in the market now. Obviously, you heard us talk about some of the agents and the agent approach that we're taking as we move forward here, and we expect that to be in market in 2025. But I think we have a nice head start because of the way we're architected there. Anytime our customers can realize quantifiable value, we think we have a sales opportunity. And what we've seen so far with the Copilot in its early days is that our customers are, you know, realizing quantifiable value there. They're able to kind of save time from maybe it's their HR team's time. Employees are able to save time from doing some of the same tasks that they normally would have done very manually and taking a lot of manual time. So there is quantifiable value there, and we're confident that we can realize that and then take that to the next level with some of this agent approach there. As I mentioned, we think there's about a 5% to 7% uplift opportunity from some of the, on the revenue per customer at, from an AI side of things. I think the second one was we wanted to talk about professional services. Yes. Professional services, if you think about longer term, we kind of plan on growing professional services slightly slower than our Dayforce recurring services. That's, it might be a little bit lumpier than normal recurring services. But I do think that, you know, over on average, you should see it kind of just slightly lag the Dayforce recurring side of things. That's because we are continuing to use global SIs to do a good chunk of our implementations, and that we've had a lot of success there. I think this year, year to date, about 40% of our sales have been SI partner influence sales. You'll likely see that continue. It won't get to 100. I think you'll see us do a lot of the implementations in the major market space ourselves. Budget envelopes in that space really, you know, I think, work nicely there because of that, and bringing an SI in becomes a little bit cost prohibitive for our customers. We have a nice leg up that we've already built out a lot of those implementations internally, and that implementation team. In the larger enterprise side of things, we're leveraging the SIs to not only, you know, do the implementations, but also bring us pipeline. That's where you'll see us kind of lean in on the implementation side of things there. I think over time, you should expect the professional services and other gross margin to get towards breakeven. Right now, we're just under breakeven, in kind of the low negative teens, and we can get more productive in our own implementation efforts, and we'll also, you know, use the global SIs a little bit more in the larger enterprise side of things. And I, I'm glad you mentioned that. I want to follow up on it because it's important, too. It becomes its own distribution channel for you. Right. So maybe talk about, r ight, because as they scale, right, their partners become more entrenched in the product, and they're able to sell it, and you have a pretty meaningful multiplier effect. So maybe talk to the pacing of the numbers you quoted, 40%, maybe where that's been historically. And again, that becomes its own, you know, the distribution becomes pretty powerful as, you know, one CFO leaves and then goes to another organization, and says, well, this is a terrific platform. We need to implement it here. Maybe talk to that dynamic a little bit, too. Yeah. I'll tell you what, it's been built from the ground up. We had almost zero SI influence deals, you know, at IPO time. We had a few partners here and there that you can, you know, kind of talk to as partner influence, but from an SI perspective, we built that up since our IPO. And if one of our growth levers is to move it dramatically into the enterprise space. We knew it was an area where we could be successful, and we hadn't really been. Historically, it had all mostly been major markets, and we had opportunistically competed in the enterprise space. And when we made the decision to move up into the enterprise, we had to build out the global SI partnerships. And so we've taken, you know, kind of, the largest SIs that you can think of, you know, the Accenture, Deloitte, PwC, as well as some of those second tiers. So then the BDO is a big partner of ours and a few of the more regional players, and we built out, you know, helped them build out practices, train their staff. And now we're moving, you know, with some of them even more into a, you know, a partner sell, where they're actually selling on our behalf. And that's kind of early phases, but ultimately, with some of them, that's where we can go. So we think it's a good opportunity for us, and it's something we've been successful in, and you need to be successful in when you're competing in the enterprise there. And one thing, I think maybe just for the audience, that I think gets underappreciated sometimes, too, is the professional services are a function of the client size, right? So if you've got a big enterprise client, and you can see it in kind of the revenue mix across the folks that are more enterprise centric, yourself, kind of the Workday, the ADPs of the world, Alight before they sold their business, right? There's a reason the professional services is the size they are, and it's the complexity, implementations, ongoing support. So as you're able to kind of lean into that distribution channel, and meaningfully lower margin, again, just can be a real another additive aspect of the story that we don't think gets fully appreciated, particularly as you kind of work through it and scale it. I think it's a really good point. Yeah. You know, I think it is probably underappreciated, the work that we've had to do to go into the large enterprise and build out these SI relationships. And it's been a heavy lift, but we're actually starting to reap the benefits on that. Obviously, you can hear from some of the metrics, you know, 40% of our deals were partner led this year. And we didn't talk about maybe just any assumptions, well, not assumptions, but toward anything you'd call out, and it's hard, but just, you know, with the new administration, I know any type of a change in benefits can be good for the business, but anything you'd highlight, potential changes? And just how are you thinking about the macro as you thought about the 2025-2031's obviously pretty hard, as is 2025, but maybe just any thoughts on just what type of macro assumptions are embedded in the 2025, and then anything from a regulatory perspective, potentially? I mean, obviously, nothing's changed, but, you know, that we should monitor. You know, I think it's a wait and see for us. It's pretty early to tell, and certainly there's some areas that you could see changes happening that we could be the benefactor from. But ultimately, you know, you don't know at this point. We haven't built, you know, any kind of tailwinds in from any of this into a model. And I think we just got to take a wait-and-see approach right now. I don't think we saw much negative from past administration. And we really haven't seen much positive or negative at changes in administrations over time, but we'll see. This one could be different. I think from a like any way to think about like what type of unemployment assumptions just as is and you know typically I think when you got on the float it's floats maybe what type of assumptions you have from a 10-year perspective or just you know in 2024 and 2025. Yeah. So unemployment levels, obviously, if, as you know, customers add more employees, we benefit from that. You know, I this year haven't gotten much of a benefit from it at all. As employment levels at our customers have remained flat, I think there's probably some pockets of strength and pockets of weakness, but at the highest level, it's kind of remained flat, which was what our expectation was. But it's a nice one-for-one benefit, and if the employment or the economy improves and the macro improves, certainly we can be a benefactor of that. I think from a float perspective, you know, the way we kind of think about it is we take our kind of float portfolio, which grows the average funds, which is, you know, $4.5 billion or so on an average basis, grow 5% to 6% on an annual basis, and that's been historical. We expect that to continue in the future, and then rates, you know, yield this year, we're yielding about 4.1% on that balance. We'd expect those to come down next year to probably where they were in 2023, which was about 3.7%, and that should get you, as I talked about at the Investor Day, probably about a $10 to $20 million headwind next year. Now we invest our float funds pretty. I think I guess we invest them in a core portfolio and a liquidity portfolio. It's about 50% in core, which is in kind of longer duration investments, two and a half years on average, and we hold to maturity there. So we're actually still working our way up the yield curve there, even as rates are coming down. And then obviously in the liquidity portfolio, it's overnight. So we think, you know, there longer term, probably I would model around a 3% yield. Cool. Maybe the mic just. Kevin, appreciate the time. Of course. I know we've talked about just profit being a big focus this year, especially with the free cash flow guides, and that's been pretty strong. I mean, as you think about that in terms of revenue, I know things can always change. Like, how are you all thinking, like, if you need to make a change? How much would you focus on preserving some of the profit stuff as goes through the year? Yeah, it's a great question. And I, you know, it always is a balance between growth and profitability. I do believe that if we wanted to grow faster and invest, we could invest more and grow faster. We've kind of taken the approach that profitability is a pretty, you know, big focus area for us and somewhere that I think we can improve on. And because of that, I think you've seen us kinda, you know, limit some investment. Obviously, this year with investment in sales and marketing, but in the future, we should, you know, expect that to remain relatively flat. And we should, you know, reap some nice profitability out of both the growth of the business, but then also our kind of constrained investment. It's probably the right move to make right now, just given where the market is, but if things change, you may see us pivot a little bit. And that could be, you know, change more towards profitability if we find some more opportunities that we can get more productive. And you could also, you know, see us say, hey, we see a ton of opportunity here and maybe it's not gonna be. But, you know, I think right now, our guidance is 100 to 200 basis points on average a year in free cash flow margin expansion. And I think that's a good way to think about it, that we should be able to deliver that with just the things that I mentioned on cloud recurring gross margin, on G&A scale, and then kind of scaling the rest of the business. Yeah, and on that free cash flow margin guide, that delta between the free cash flow expansion that we have and the EBITDA expansion, what's causing that difference? Ultimately, it's, you know, I think we've talked about 100 to 150 basis points of Adjusted EBITDA expansion and 100 to 200 basis points of free cash flow expansion. Really just the free cash flow is a little bit lumpier than Adjusted EBITDA. I think our Adjusted EBITDA is quite high already, so we've got a little bit of room in some of the balance sheet that we can continue to reap. Thank you. Yeah. I think we're running up on time, but Jeremy, anything we didn't ask or, you know, obviously, just terrific event, but just anything to kind of highlight as we close it out here? I think we ran the gamut in questions. I appreciate it, and appreciate you all taking the time and obviously for hosting us here. It's a great event, and you know, we really like it. Yeah, thrilled, thrilled to have you, for sure. Yeah. Thank you, all. Thanks, everybody.