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  "documentTitle": "Automatic Data Processing (ADP) (ADP)",
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  "authorName": "William Ackman",
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      "text": "Implies a ~$1.3 billion gross profit uplift opportunity on current revenue",
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      "text": "In our analysis, we adjust for modest business-mix differences between ADP and competitors due to ADP's lower-margin HR outsourcing revenues and lower-margin, growing international markets",
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      "text": "Implies a ~$1.3 billion gross profit uplift opportunity on current revenue\nAdditional opportunity below the gross profit line in other P&L items (discussed later in the presentation)",
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      "text": "Net operational revenue per employee (ADP $161k vs. $223k competitor median)\nAdjusted gross margins (ADP 60%(1) vs. 74% recurring median(2))",
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      "text": "Our due diligence suggests ADP's underperformance is largely in Employer Services (not the PEO), due to poor software and technology, bloated support, and broad organizational inefficiency",
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      "text": "(1) ADP's gross margins adjusted to exclude float income... (2) Excludes services and implementation revenue / associated gross profit.",
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      "text": "Apples-to-Apples Benchmarking to Competitors Shows Dramatic Underperformance",
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