Slide 1: Fourth Quarter Highlights and Financial Results Fiscal 2023
Fourth Quarter Highlights and Financial Results Fiscal 2023
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 solutions company • Leading-edge technology platform backed by HR and compliance A leading provider of integrated expertise human capital management • Leader in comprehensive HR (“HCM”) solutions for human outsourcing solutions with resources (“
Slide 4: Fourth Quarter Highlights
Fourth Quarter Highlights
Slide 5: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Total Revenue Operating Income Adjusted Diluted EPS(1) 7% 15% 20% $453M $0.97 $1,230M $1,144M $394M $0.81 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 (1) Adjusted diluted earnings per share (“EPS”) is not a U.S. generally accepted accounting principles (“GAAP”
Slide 6: Fourth Quarter Service Revenue
Fourth Quarter Service Revenue Service Revenue Key Drivers Management Solutions • Increase in the number of clients and client employees served for HCM and worksite 7% $1,205 employees for HR Solutions $1,130 • Higher revenue per client resulting from price realization and product attachment, includ
Slide 7: Fourth Quarter Business Highlights
Fourth Quarter Business Highlights Achieved milestone of $5B in total revenue for FY23 o Solid revenue growth and operating margins in uncertain environment for SMBs o Strong internal execution and stable client employment levels o Continued demand for HR technology and HR outsourcing solutions Achi
Slide 8: Product & Technology Horizon
Product & Technology Horizon Innovation to meet our customers’ evolving business needs 8
Slide 9: Recent Awards and Recognition
Recent Awards and Recognition Paychex was honored for its innovative technology and corporate culture FORTUNE® Magazine 2023 Ethisphere FORTUNE® Magazine 2023 America’s Worlds’ Most Admired Companies World’s Most Ethical Companies Most Innovative Companies Paychex was named to the list of the Payche
Slide 10: Sustained Financial Performance (in uncertain times)
Sustained Financial Performance (in uncertain times) (In Millions, Except Per Share Amounts) Total Service Revenue Adjusted Diluted EPS(1) $4.27 $4,907 $4,554 $3.77 $3,997 $1,177 $3,954 $3,692 $1,111 $3.00 $3.04 $2.84 $991 $974 $814 $3,730 $3,443 $2,878 $2,963 $3,023 FY19 FY20 FY21 FY22 FY23 FY19 FY
Slide 11: Fiscal 2024 Outlook
Fiscal 2024 Outlook
Slide 12: Fiscal Year 2024 Outlook
Fiscal Year 2024 Outlook Year-over-Year Growth Management Solutions Revenue 5% - 6% PEO & Insurance Solutions Revenue 6% - 9% Total Revenue 6% - 7% (1) 9% - 10% Adjusted Diluted EPS Anticipated Result Interest on Funds Held for Clients $135M - $145M Operating Income, as a Percent of Total Revenue 41
Slide 13: Financial Results
Financial Results 13
Slide 14: Financial Results
Financial Results For the Three Months and Full Year ended May 31, 2023 Three Months Ended % Twelve Months Ended % (In millions, except per share amounts) May 31, 2023 Change May 31, 2023 Change Management Solutions $ 905.2 7% $ 3,730.5 8% PEO and Insurance Solutions $ 299.5 5% $ 1,176.8 6% Total Se
Slide 15: Balance Sheets and Cash Flows
Balance Sheets and Cash Flows May 31, 2023 May 31, 2022 ($ in Millions) Cash, Restricted Cash, & Total Corporate Investments $ 1,649.0 $ 1,304.7 Total Debt, Net of Debt Issuance • Strong liquidity position with no Costs (1) $ 808.4 $ 806.4 net debt Return on Equity 48% 45% • $800M of private placeme
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three Months and Full Year ended May 31, 2023 (In millions, except per share amounts) Three Months Ended Twelve Months Ended May 31, % May 31, % 2023 2022 Change 2023 2022 Change Net Income $ 350.4 $ 296.4 18% $ 1,557.3 $ 1,392.8 12% Non-GAAP Adjustments: Excess T
Slide 17: Investment Portfolio Results
Investment Portfolio Results Three Months Ended Twelve Months Ended May 31, % May 31, % ($ in millions) 2023 2022 Change 2023 2022 Change Average Investment Balances: Funds Held For Clients $ 4,504.3 $ 4,558.2 -1% $ 4,392.7 $ 4,354.8 1% Corporate Cash Equivalents and Investments $ 1,649.8 $ 1,491.7
Slide 18: Supplemental Information
Supplemental Information
Slide 19: FY23 Revenue Composition
FY23 Revenue Composition Management Solutions PEO & Insurance Solutions 5% - 10% 15% - 20% Other Insurance Solutions 25% - 30% HR Solutions (ASO) $3.7B $1.2B 5% - 10% Retirement 55% - 60% 80% - 85% Payroll & HCM Software PEO 19
Slide 20: Paychex: The Power of Simplicity
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 20