Slide 1: Second Quarter Highlights and Financial Results Fiscal 2022
Second Quarter Highlights and Financial Results Fiscal 2022
Slide 2: Forward Looking Statements
Forward Looking Statements You should be aware that certain written and oral statements made by management may constitute “forward-looking statements” within the meaning of the safe-harbor provisions of the United States (“U.S.”) Private Securities Litigation Reform Act of 1995. Forward-looking stat
Slide 3: Paychex Overview
• Comprehensive technology-driven Paychex Overview HCM software and solutions company • Leading-edge technology platform A leading provider of integrated backed by HR and compliance human capital management expertise (“HCM”) software for human resources (“HR”), payroll, benefits • Leader in comprehe
Slide 4: Second Quarter Highlights
Second Quarter Highlights
Slide 5: Second Quarter Financial Highlights
Second Quarter Financial Highlights Service Revenues Adjusted Operating Income(1) Adjusted Diluted EPS(1) 13% 24% 25% $440M $0.91 $1,094M $969M $355M $0.73 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 FY21 Q2 FY22 (1) Adjusted operating income and adjusted diluted earnings per share (“EPS”) are not U.S. gener
Slide 6: Second Quarter Service Revenue
Second Quarter Service Revenue (In Millions) Key Drivers Management Solutions $1,094 • Client base growth driven by strong retention and sales performance $971 $969 • Increase in the number of client employees throughout our HCM solutions suite • Higher revenue per client due to price realization an
Slide 7: Second Quarter Business Highlights
Second Quarter Business Highlights Achieved double-digit revenue and earnings growth o Continued momentum from the first quarter with positive trends across the business o Strong internal execution driving growth with tailwind of positive macroeconomic trends o Adjusted operating margins expanded 36
Slide 8: Recent Product & Technology Launches
Recent Product & Technology Launches Designed to simplify common HR and payroll challenges Retention Insights Utilizes predictive analytics to help businesses identify employees that may be more likely to consider leaving the organization. Total Compensation Summary A report that helps employers com
Slide 9: Product & Technology Horizon
Product & Technology Horizon Innovation to meet our customers’ evolving business needs Artificial Intelligence Data Analytics Expanded (including Paychex Flex Integrations (APIs) Intelligence Engine) Wearable Voice Personalization Solutions Recognition 9
Slide 10: Recent Awards and Recognition
Recent Awards and Recognition Paychex honored for its innovative technology and solutions Brandon Hall Group NelsonHall Brandon Hall Group HCM Excellence Award Gold NEAT Vendor Evaluation Report - HCM Excellence Award Silver Excellence in Technology Human Capital Management Excellence in Technology
Slide 11: Sustained Financial Performance
Sustained Financial Performance (In Millions, Except Per Share Amounts) Total Service Revenue Adjusted Diluted EPS(1) $3.00 $3.04 $3,954 $3,997 $2.84 $3.00 $3,692 $2.84 $2.55 $3,314 $991 $974 $2.55 $3,102 $814 $2.23 $556 $2.23 $422 $2.03 $2,878 $2,963 $3,023 $2,680 $2,758 FY17(2) FY18(2) FY19 FY20 F
Slide 12: Balance Sheets and Cash Flows
Balance Sheets and Cash Flows November 30, 2021 May 31, 2021 ($ in Millions) Cash, Restricted Cash, & Total Corporate Investments $ 1,101.6 $ 1,127.3 • Strong liquidity position with no Total Debt, Net of Debt Issuance Costs (1) $ 806.4 $ 804.7 net debt Return on Equity 43% 38% • $800M of private pl
Slide 13: Fiscal 2022 Outlook
Fiscal 2022 Outlook
Slide 14: Fiscal Year 2022 Outlook
Fiscal Year 2022 Outlook June 25, 2021 September 30, 2021 December 22, 2021 Fiscal 2022 Outlook Fiscal 2022 Outlook Fiscal 2022 Outlook Year-over-Year Growth Year-over-Year Growth Year-over-Year Growth Management Solutions Revenue ~7% ~8% 10% - 11% PEO & Insurance Solutions Revenue 8% - 10% 8% - 10%
Slide 15: Fiscal 2021 PEO and Insurance Solutions Revenue
Fiscal 2021 PEO and Insurance Solutions Revenue Fiscal 2021 PEO and Insurance Solutions revenues for the third and fourth quarters of fiscal 2021 were impacted by the timing of notification of changes in state unemployment insurance rates. This creates comparability issues for the third and fourth q
Slide 16: Financial Results
Financial Results 16
Slide 17: Financial Results
Financial Results For the Three and Six Months ended November 30, 2021 Three Months Ended % Six Months Ended % (In millions, except per share amounts) November 30, 2021 Change November 30, 2021 Change Management Solutions $ 832.0 14% $ 1,637.5 15% PEO and Insurance Solutions 262.4 11% 525.3 13% Tota
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three and Six Months ended November 30, 2021 (In millions, except per share amounts) Three Months Ended Six Months Ended November 30, % November 30, % 2021(1) 2020 Change 2021 2020(1) Change Operating Income $ 440.3 $ 354.3 24% $ 883.2 $ 638.3 38% Non-GAAP Adjustm
Slide 19: Investment Portfolio Results
Investment Portfolio Results Three Months Ended Six Months Ended November 30, % November 30, % ($ in millions) 2021 2020 Change 2021 2020 Change Average Investment Balances: Funds Held For Clients $ 3,917.5 $ 3,581.4 9% $ 3,907.5 $ 3,544.3 10% Corporate Cash Equivalents and Investments $ 1,182.8 $ 9
Slide 20: PAYCHEX - The Power of Simplicity
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 20