Slide 1: Third Quarter Highlights and Financial Results Fiscal 2022
Third 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: Third Quarter Highlights
Third Quarter Highlights
Slide 5: Third Quarter Financial Highlights
Third Quarter Financial Highlights Service Revenues Adjusted Operating Income(1) Adjusted Diluted EPS(1) 15% 20% 20% $1,262M $563M $1.15 $1,097M $469M $0.96 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 Q3 FY21 Q3 FY22 (1) Adjusted operating income and adjusted diluted earnings per share (“EPS”) are not U.S. gene
Slide 6: Third Quarter Service Revenue
Third Quarter Service Revenue (In Millions) Key Drivers Management Solutions • Client base growth driven by strong retention and sales performance $1,262 • Increase in the number of client employees throughout our HCM solutions suite $1,122 $1,097 • Higher revenue per client due to price realization
Slide 7: Third Quarter Business Highlights
Third Quarter Business Highlights Achieved double-digit revenue and earnings growth o Continued momentum from the first half of fiscal 2022 with positive trends across the business o Strong internal execution driving growth with tailwind of positive macroeconomic trends o Adjusted operating margins
Slide 8: Recent Product & Technology Launches
Recent Product & Technology Launches Designed to simplify common HR and payroll challenges Vaccination Management Employees can confidentially upload proof of vaccination or COVID-19 test results. Employers have access to see which employees have supplied information, and the ability to send notific
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 is being honored for its innovative technology and corporate culture Training Magazine Ethisphere 2022 Training Apex Award World’s Most Ethical Companies #5 on the list of top training Paychex recognized for the 14th time, organizations in the world. Our highest
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 $2,758 FY17(2) FY18(2) FY19 FY20 F
Slide 12: Balance Sheets and Cash Flows
Balance Sheets and Cash Flows February 28, 2022 May 31, 2021 ($ in Millions) Cash, Restricted Cash, & Total Corporate Investments $ 1,439.9 $ 1,127.3 • Strong liquidity position with no Total Debt, Net of Debt Issuance Costs (1) $ 806.3 $ 804.7 net debt Return on Equity 44% 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 March 30, 2022 Fiscal 2022 Outlook Fiscal 2022 Outlook Fiscal 2022 Outlook Fiscal 2022 Outlook Year-over-Year Growth Year-over-Year Growth Year-over-Year Growth Year-over-Year Growth Management Solutions Revenue ~7% ~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 Nine Months ended February 28, 2022 Three Months Ended % Nine Months Ended % (In millions, except per share amounts) February 28, 2022 Change February 28, 2022 Change Management Solutions $ 959.9 13% $ 2,597.4 15% PEO and Insurance Solutions 301.7 21% 827.0 16% To
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three and Nine Months ended February 28, 2022 (In millions, except per share amounts) Three Months Ended Nine Months Ended February 28, % February 28, % 2022 2021 Change 2022 2021 Change Operating Income $ 562.8 $ 468.6 20% $ 1,446.0 $ 1,106.9 31% Non-GAAP Adjustm
Slide 19: Investment Portfolio Results
Investment Portfolio Results Three Months Ended Nine Months Ended February 28, % February 28, % ($ in millions) 2022 2021 Change 2022 2021 Change Average Investment Balances: Funds Held For Clients $ 5,046.0 $ 4,459.6 13% $ 4,287.0 $ 3,849.5 11% Corporate Cash Equivalents and Investments $ 1,341.6 $
Slide 20: PAYCHEX
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 20