{ "docId": "019dd923-622c-750b-8b9b-d9b3dd5a51e8", "docSlug": "1c9c0f306991", "documentTitle": "Automatic Data Processing (ADP) (ADP)", "authorId": "01_Pershing_Square", "authorName": "William Ackman", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "activist_investor", "sourceTypeLabel": "Activist investor", "presentationDate": "2017-08-17 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 48, "pageCount": 168, "prevPage": 47, "nextPage": 49, "slideType": "expose_contradiction", "function": "expose_contradiction", "density": "overcrowded", "nDataPoints": 1, "notes": "Uses CEO/CFO quotes as evidence of strategic shift and potential growth headwinds.", "elementsJson": [ "headline_text", "callout_box", "quote_block", "footnote" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b9b-d9b3dd5a51e8/48", "deckHref": "/decks/019dd923-622c-750b-8b9b-d9b3dd5a51e8", "deckJsonHref": "/decks/019dd923-622c-750b-8b9b-d9b3dd5a51e8.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b9b-d9b3dd5a51e8#slide-48", "components": [ { "bbox": { "h": 0.08, "w": 0.92, "x": 0.04, "y": 0.00165 }, "kind": "callout", "text": "Sell-in has recently been >50% of bookings; ADP's growth rate is decelerating as the Company now needs to focus on “new logos” (new clients)", "attrs": null, "subkind": "primary", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "dfb553da-9b54-43d9-b044-82429a885d4a", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "callout", "text": "Recent sell-in was a market-driven opportunity as HCM Beyond Payroll gained widespread adoption. Future growth will be challenged without a best-in-class HCM product suite driving “new logos”", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd952-ee38-728b-98d5-0aff5dccdcc1", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.92, "x": 0.04, "y": 0.74 }, "kind": "paragraph", "text": "Recent sell-in was a market-driven opportunity as HCM Beyond Payroll gained widespread adoption. Future growth will be challenged without a best-in-class HCM product suite driving “new logos”", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "739395d3-f23e-4336-98a2-ee91a40d14bb", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.18, "w": 0.88, "x": 0.06, "y": 0.49 }, "kind": "quote", "text": "[W]e've kind of tilted our focus now more towards new logo growth and new share from kind of the traditional approach... But this is a fairly significant change from a sales force mentality standpoint where we were for several years, focused on upgrades and on incremental sales of other modules to the existing client base as we upgraded them, combined with selling something called ACA, which to some extent, was a significant tailwind. So we're moving into a different environment.” – Carlos Rodriguez (Q3’2017)(2)", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "2d196de9-8213-459e-a115-e2ce6373eadd", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.88, "x": 0.06, "y": 0.31 }, "kind": "quote", "text": "[H]istorically our mix has been 50/50 -- about 50% of bookings roughly towards new client counts and new logos, and 50% of upsell. And but obviously, at the elevated levels of ACA selling, the mix has shifted a little bit because most of the ACA has been really selling to our existing client base. So in the current year, that mix is a little shifted [more than 50% sell-in].” – Jan Siegmund (Q2’2016)(1)", "attrs": null, "subkind": "testimonial", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "def8fc97-72f3-4c14-8537-3e728c64fd09", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "[H]istorically our mix has been 50/50 -- about 50% of bookings roughly towards new client counts and new logos, and 50% of upsell. And but obviously, at the elevated levels of ACA selling, the mix has shifted a little bit because most of the ACA has been really selling to our existing client base. So in the current year, that mix is a little shifted [more than 50% sell-in]. — Jan Siegmund (Q2’2016); [W]e've kind of tilted our focus now more towards new logo growth and new share from kind of the traditional approach... But this is a fairly significant change from a sales force mentality standpoint where we were for several years, focused on upgrades and on incremental sales of other modules to the existing client base as we upgraded them, combined with selling something called ACA, which to some extent, was a significant tailwind. So we're moving into a different environment. — Carlos Rodriguez (Q3’2017)", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd952-ee38-728b-98d5-0dd5eb4c7aca", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.04, "w": 0.25, "x": 0.04, "y": 0.95 }, "kind": "source-note", "text": "(1) Q2’2016 Earnings Call. February 3, 2016. (2) Q3’2017 Earnings Call. May 3, 2017.", "attrs": { "numbered": true }, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "51e7f37e-4735-43b2-8d51-871d8d64cf5b", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.45, "x": 0.04, "y": 0.08 }, "kind": "title", "text": "Sell-In Won't Last Forever...", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "bb0dd534-14f2-4db3-a3ae-c77b22fd7616", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [ { "name": "ceo-quote-contradiction", "slug": null, "matchId": "31ca0718-c310-446f-8eb7-3ea5aff00019", "evidence": "Uses executive quotes to highlight a shift in strategy and potential future headwinds.", "confidence": 0.9 } ], "arcBeats": [], "loops": [], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }