Slide 1: Second Quarter Highlights and Financial Results
Second Quarter Highlights and Financial Results Fiscal 2025
Slide 2: Forward Looking Statements
Forward Looking Statements Certain written statements in this presentation may contain, and members of management may from time to time make or discuss statements which constitute, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation
Slide 3: Paychex Overview
• Digitally-driven HCM solutions company Paychex Overview • Leading-edge technology platform backed by decades of HR and compliance expertise An industry-leading human capital • Industry leader in comprehensive HR management (“HCM”) company outsourcing solutions with delivering a full suite of techn
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) 5% 6% 6% $1,317M $538M $1.14 $1,258M $506M $1.08 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 (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 5% Total Revenue: +7% excluding ERTC $1,317 Management Solutions $1,258 $36 • Growth in the number of clients served across $31 our suite of HCM solutions and client worksite +15% employees for HR Solutions +7% $318 • Increased product penetration, in
Slide 7: Second Quarter Business Highlights
Second Quarter Business Highlights Sustained growth in revenue and earnings o Solid revenue growth of 5% and adjusted diluted EPS(1) growth of 6% o Excluding the expiration of ERTC, revenue grew 7%, consistent with Q1 FY25 and Q4 FY24 o Strong performance in HR Outsourcing, Retirement and Funding So
Slide 8: Recent Product & Technology Launches
Recent Product & Technology Launches Designed to simplify common HR and payroll challenges HR Analytics Premium Plus with Built-in GenAI Insights • Offers analytics and insights for workforce distribution, cost, attrition, turnover, and retention • Includes access to advanced workforce and compensat
Slide 9: Product & Technology Horizon
Product & Technology Horizon Innovation to meet our customers’ evolving business needs 9
Slide 10: Recent Awards and Recognition
Recent Awards and Recognition Paychex was recognized for its innovative technology, market leadership, and corporate culture NelsonHall Neat Leader 2024 Human Resource Executive 2024 TIME America’s Best Mid-size Paychex was recognized as a “Leader” in Top HR Product of the Year Companies 2024 Payrol
Slide 11: Sustained Financial Performance
Sustained Financial Performance (in uncertain times) (In Millions, Except Per Share Amounts) Total Service Revenue Adjusted Diluted EPS(1) $4.72 $5,132 $4.27 $4,907 $4,554 $3.77 $1,266 $3,997 $1,177 $3,954 $1,111 $3.04 $3.00 $991 $974 $3,730 $3,866 $3,443 $2,963 $3,023 FY20 FY21 FY22 FY23 FY24 FY20
Slide 12: Fiscal 2025 Outlook
Fiscal 2025 Outlook
Slide 13: Fiscal Year 2025 Outlook
Fiscal Year 2025 Outlook December 19, 2024 October 1, 2024 June 26, 2024 Year-over-Year Growth Year-over-Year Growth Year-over-Year Growth Total Revenue 4.0% - 5.5% 4.0% - 5.5% 4.0% - 5.5% (1) Adjusted Diluted EPS 5% - 7% 5% - 7% 5% - 7% Management Solutions Revenue 3% - 4% 3% - 4% 3% - 4% PEO & Ins
Slide 14: Financial Results
Financial Results 14
Slide 15: Financial Results
Financial Results For the Three Months and Six Months ended November 30, 2024 Three Months Ended % Six Months Ended % (In millions, except per share amounts) November 30, 2024 Change November 30, 2024 Change Management Solutions $ 962.9 3% $ 1,924.6 2% PEO and Insurance Solutions $ 317.9 7% $ 637.2
Slide 16: Financial Highlights
(In millions) November 30, 2024 May 31, 2024 Financial Cash, Restricted Cash, & Total Highlights Corporate Investments $ 1,303.2 $ 1,554.3 ($ in Millions) Total Debt, Net of Debt Issuance Costs (1) $ 817.1 $ 817.3 Net Cash Position $ 486.1 $ 737.0 • Strong liquidity position with no Return on Equity
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three Months and Six Months ended November 30, 2024 (In millions, except per share amounts) Three Months Ended Six Months Ended November 30, % November 30, % 2024 2023 Change 2024 2023 Change Net Income $ 413.4 $ 392.7 5% $ 840.8 $ 811.9 4% Non-GAAP Adjustments: E
Slide 18: Investment Portfolio Results
Investment Portfolio Results Three Months Ended Six Months Ended November 30, % November 30, % ($ in millions) 2024 2023 Change 2024 2023 Change Average Investment Balances: Funds Held For Clients $ 4,252.3 $ 4,036.3 5% $ 4,269.2 $ 4,096.6 4% Corporate Cash Equivalents and Investments $ 1,471.4 $ 1,
Slide 19: PAYCHEX
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 19