Slide 1: ADP Earnings Call & Webcast Q3 Fiscal 2023
ADP Earnings Call & Webcast Q3 Fiscal 2023 April 26, 2023 Copyright © 2023 ADP, Inc.
Slide 2: Forward Looking Statements; Non-GAAP Measures
Forward Looking Statements This document and other written or oral statements made from time to time by ADP may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by
Slide 3: Highlights and Perspective
Highlights and Perspective Strong overall momentum continued in Q3 • Revenue increase of 9%, 10% organic constant currency1; adjusted EBIT margin1 increase of 110 basis points, and adjusted diluted EPS1 growth of 14% • Record Q3 ES new business bookings • ES retention continues to exceed our expecta
Slide 4: Q3 Fiscal 2023 Financial Highlights
Q3 Fiscal 2023 Financial Highlights (unaudited) Total Revenues Adjusted EBIT1 Adjusted Diluted EPS1 h 9% h 14% h 14% h 10% Organic Constant Currency1 Adjusted EBIT1 Margin h 110 bps $1,372M $2.52 $4,928M $1,208M $2.21 $4,513M Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 Q3 FY22 Q3 FY23 1. For a reconciliation of
Slide 5: Employer Services Segment Results
Q3 Fiscal 2023 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q3 ES Highlights h 11% h 80 bps • Strong revenue growth supported by healthy bookings, retention, pays per h 12% Organic Constant Currency1 control growth, and higher client funds interest revenue $3,339M 36.5% 37.3%
Slide 6: PEO Services Segment Results
Q3 Fiscal 2023 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q3 PEO Highlights h 5% h 140 bps • Average WSE growth decelerated in Q3 as anticipated • Demand environment remains stable; PEO bookings re-accelerated in Q3 vs prior $1,592M 16.4% quarter $1,514M 15.0% FY23 PEO Outlook
Slide 7: Fiscal 2023 Outlook
Fiscal 2023 Outlook Fiscal 2022 July 27, 2022 October 26, 2022 January 25, 2023 April 26, 2023 1 1 1 1 (unaudited) Fiscal 2023 Outlook Fiscal 2023 Outlook Fiscal 2023 Outlook Fiscal 2023 Outlook Revenues $16,498M 7 to 9% 8 to 9% 8 to 9% 8 to 9% 2 Adj. EBIT Margin 23.5% 100 to 125 bps 125 to 150 bps
Slide 8: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Average Balances ($) Average Rates Interest Income / (Expense) ($) April 26, 2023 April 26, 2023 April 26, 2023 Fiscal 2022 Fiscal 2022 Fiscal 2022 Fiscal 2023 Fiscal 2023 Fiscal 2023 (unaudited) (unaudited) (unaudited) Outlook Outlook Outlook Client