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  "documentTitle": "Automatic Data Processing (ADP) (ADP)",
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  "authorName": "William Ackman",
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  "presentationDate": "2017-08-17 00:00:00",
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  "notes": "Uses a scenario analysis to demonstrate how client mix shifts mask revenue stagnation.",
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      "text": "While ADP would report 3.7% total client growth under this scenario, client mix-adjusted revenue would be flat (before sell-in, price, pays-per-control, mix, etc.)",
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      "text": "Note: See appendix for supporting analysis. (1) Assumes international grows clients 2%. Assumes flat revenue per client (excludes sell-in, price, mix, etc.) across all business units.",
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      "text": "While ADP would report 3.7% total client growth under this scenario, client mix-adjusted revenue would be flat (before sell-in, price, pays-per-control, mix, etc.)",
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      "text": "If ADP lost 7% of Enterprise clients, and Mid-Market client growth was flat, ADP would need net +4.5% client growth from SMB to hold revenue flat(1)",
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      "text": "ADP needs ~185 SMB accounts or ~13 Mid-Market clients to replace the loss of just one Enterprise client",
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      "text": "Revenue for the year was up 7% on an organic basis, benefiting from a solid 6% client growth and from the continued strong performance of our downmarket, PEO and multinational solutions.",
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      "text": "Revenue for the year was up 7% on an organic basis, benefiting from a solid 6% client growth and from the continued strong performance of our downmarket, PEO and multinational solutions. — Carlos Rodriguez (Q4 2017)",
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      "text": "While ADP’s total client count appears to be growing, the loss of larger clients disproportionately impacts overall performance",
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