Slide 1: ADP Earnings Call & Webcast Q4 Fiscal 2024
ADP Earnings Call & Webcast Q4 Fiscal 2024 July 31, 2024 Copyright © 2024 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 Perspectives
Highlights and Perspectives Posted strong overall FY24 financial performance: • 7% revenue growth • 70 basis points of Adjusted EBIT1 margin expansion • 12% Adjusted diluted EPS1 growth 7% ES new business bookings growth for FY24 with exceptional Q4 results; $2.0 billion ES bookings for FY24 Better-
Slide 4: Executing on our Strategic Priorities
Executing on our Strategic Priorities Lead with Best-in-Class HCM Technology ✓ Launched ADP Assist, our generative AI-powered cross platform solution ✓ Advanced next-gen payroll and next-gen HCM initiatives Provide Unmatched Expertise & Outsourcing ✓ Deployed generative AI tools to support service a
Slide 5: Q4 Fiscal 2024 Financial Highlights
Q4 Fiscal 2024 Financial Highlights (unaudited) Total Revenues Adjusted EBIT1 Adjusted Diluted EPS1 6% 10% 11% 7% Organic Constant Currency1 Adjusted EBIT1 Margin 80 bps $1,111M $1,009M $2.09 $4,768M $1.89 $4,478M Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 1. For a reconciliation of t
Slide 6: Fiscal 2024 Financial Highlights
Fiscal 2024 Financial Highlights (unaudited) Total Revenues Adjusted EBIT1 Adjusted Diluted EPS1 7% 9% 12% 6% Organic Constant Currency1 Adjusted EBIT1 Margin 70 bps $9.18 $4,890M $8.23 $19,203M $4,468M $18,012M FY23 FY24 FY23 FY24 FY23 FY24 1. For a reconciliation of these non-GAAP financ
Slide 7: Employer Services Segment Results
Q4 Fiscal 2024 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q4 ES Highlights 7% 220 bps • Strong revenue growth driven by exceptional bookings, solid retention, and 7% Organic Constant Currency1 client funds interest revenue growth $3,021M $3,219M 33.0% 30.8% FY24 ES Hig
Slide 8: PEO Services Segment Results
Q4 Fiscal 2024 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q4 PEO Highlights 6% 240 bps • Moderate acceleration in PEO revenue growth from the prior quarter despite continued same store pays per control headwinds $1,552M 15.8% $1,460M 13.4% FY24 PEO Highlights • 4% revenue g
Slide 9: Fiscal 2025 Outlook
Fiscal 2025 Outlook Fiscal 2024 July 31, 2024 1 (unaudited) Fiscal 2025 Outlook Revenues $19,203M 5 to 6% 2 Adj. EBIT Margin 25.5% 60 to 80 bps Total ADP 2 Adj. Effective Tax Rate 23.0% ~23% 2 Adj. Diluted EPS $9.18 8 to 10% Revenues $12,981M 5 to 6% Margin 35.1% 100 to 120 bps Employer ES New Busin
Slide 10: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Average Balances ($) Average Rates Interest Income / (Expense) ($) July 31, 2024 July 31, 2024 July 31, 2024 Fiscal 2024 Fiscal 2024 Fiscal 2024 Fiscal 2025 Fiscal 2025 Fiscal 2025 (unaudited) (unaudited) (unaudited) Outlook Outlook Outlook Client Sh
Slide 11: Appendix: Client Fund Portfolio Maturities
Appendix: Client Fund Portfolio Maturities Client Funds Investment Strategy Portfolio at June 30, 2024 Available for Sale Securities Maturities and Book Yields $8,000 1.6% $7,000 2.2% $6,000 2.5% $5,000 3.8% $4,000 3.8% $3,000 3.0% $2,000 3.0% 4.5% 2.8% $1,000 $0 FY25 FY26 FY27 FY28 FY29 FY30 FY31 F