Slide 1: ADP Earnings Call & Webcast Q2 Fiscal 2023
ADP Earnings Call & Webcast Q2 Fiscal 2023 January 25, 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 • Healthy momentum continued in Q2: • Revenue increase of 9%, adjusted EBIT margin (a) increase of 120 basis points, and adjusted diluted EPS (a) growth of 19% • Strong ES new business bookings growth • ES retention improved year-over-year to a near-record level for the qu
Slide 4: Q2 Fiscal 2023 Financial Highlights
Q2 Fiscal 2023 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) h 9% h 15% h 19% h 10% Organic Constant Currency (a) Adjusted EBIT (a) Margin h 120 bps $1,069M $4,391M $930M $1.96 $4,025M $1.65 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 (a) For a reconc
Slide 5: Employer Services Segment Results
Q2 Fiscal 2023 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q2 Highlights • Revenue growth supported by strong h 8% h 170 bps bookings, retention gains, continued h 10% Organic Constant Currency (a) strong pays per control growth, and $2,892M 32.3% higher client funds interest
Slide 6: PEO Services Segment Results
Q2 Fiscal 2023 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q2 Highlights • Average WSE growth decelerated in Q2 h 11% h 130 bps • Demand environment remained healthy; well-positioned to re-accelerate growth $1,503M 17.0% $1,359M 15.7% FY23 PEO Outlook Prior Current Revenues 10 t
Slide 7: Fiscal 2023 Outlook
Fiscal 2023 Outlook July 27, 2022 October 26, 2022 January 25, 2023 Fiscal 2022 Fiscal 2023 Fiscal 2023 Fiscal 2023 (unaudited) (a) (a) (a) Outlook Outlook Outlook Revenues $16,498M 7 to 9% 8 to 9% 8 to 9% (b) Adj. EBIT Margin 23.5% 100 to 125 bps 125 to 150 bps 125 to 150 bps Total ADP (b) Adj. Eff
Slide 8: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Average Balances ($) Average Rates Interest Income / (Expense) ($) January 25, 2023 January 25, 2023 January 25, 2023 Fiscal 2022 Fiscal 2022 Fiscal 2022 Fiscal 2023 Fiscal 2023 Fiscal 2023 (unaudited) (unaudited) (unaudited) Outlook Outlook Outlook