Slide 1: Second Quarter Highlights and Financial Results Fiscal 2024
Second Quarter Highlights and Financial Results Fiscal 2024
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 An industry-leading human capital expertise management (“HCM”) company • Leader in comprehensive HR delivering a full suite of technology outsourcing solutions with
Slide 4: Second Quarter Highlights
Second Quarter Highlights
Slide 5: Second Quarter Financial Highlights
Second Quarter Financial Highlights Total Revenue Operating Income Adjusted Diluted EPS(1) 6% 7% 9% $1.08 $1,258M $506M $1,190M $472M $0.99 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 (1) Adjusted diluted earnings per share (“EPS”) is not a U.S. generally accepted accounting principles (“GAAP”)
Slide 6: Second Quarter Revenue
Second Quarter Revenue Total Revenue Key Drivers 6% Management Solutions $1,258 • Growth in the number of clients served across $1,190 our suite of HCM solutions +44% $31 $22 • Higher revenue per client from price realization $296 and product penetration, including HR $273 +8% Solutions and retireme
Slide 7: Second Quarter Business Highlights
Second Quarter Business Highlights Sustained financial performance o Revenue growth of 6% and adjusted diluted EPS(1) growth of 9% o Operating margin expansion of 50 basis points year-over-year to 40.2% o Strong performance in PEO, mid-market, and retirement Solid execution across key operational me
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 recognized for its innovative technology and market leadership Brandon Hall Group 2023 HCM Excellence Award Paychex earned a silver Brandon Hall Group 2023 HCM Excellence Award for the Best Unique or Innovative Learning and Development Program for our HR Bus
Slide 10: Sustained Financial Performance
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 December 21, 2023 September 27, 2023 June 29, 2023 Year-over-Year Growth Year-over-Year Growth Year-over-Year Growth Management Solutions Revenue 5% - 6% 5% - 6% 5% - 6% PEO & Insurance Solutions Revenue 7% - 9% 6% - 9% 6% - 9% Total Revenue 6% - 7% 6% - 7% 6% - 7% (1) Adjus
Slide 13: Financial Results
Financial Results 13
Slide 14: Financial Results
Financial Results For the Three and Six Months ended November 30, 2023 Three Months Ended % Six Months Ended % (In millions, except per share amounts) November 30, 2023 Change November 30, 2023 Change Management Solutions $ 930.7 4% $ 1,886.2 5% PEO and Insurance Solutions $ 295.7 8% $ 593.5 7% Tota
Slide 15: Balance Sheets and Cash Flows
Balance Sheets and Cash Flows (In millions) November 30, 2023 May 31, 2023 ($ in Millions) Cash, Restricted Cash, & Total Corporate Investments $ 1,447.0 $ 1,649.0 Total Debt, Net of Debt Issuance • Strong liquidity position with no Costs (1) $ 812.0 $ 808.4 net debt Return on Equity 47% 48% • $800M
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three and Six Months ended November 30, 2023 (In millions, except per share amounts) Three Months Ended Six Months Ended November 30, % November 30, % 2023 2022 Change 2023 2022 Change Net Income $ 392.7 $ 360.3 9% $ 811.9 $ 739.5 10% Non-GAAP Adjustments: Excess
Slide 17: Investment Portfolio Results
Investment Portfolio Results Three Months Ended Six Months Ended November 30, % November 30, % ($ in millions) 2023 2022 Change 2023 2022 Change Average Investment Balances: Funds Held For Clients $ 4,036.3 $ 4,012.7 1% $ 4,096.6 $ 4,065.4 1% Corporate Cash Equivalents and Investments $ 1,540.3 $ 1,
Slide 18: PAYCHEX
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 18