Automatic Data Processing, Inc. · NASDAQ:ADP
Automatic Data Processing — Q2 2024 Earnings Presentation
8 slides from Automatic Data Processing's earnings presentation, Jan 31, 2024
Slide 1: ADP Earnings Call & Webcast Q2 Fiscal 2024
ADP Earnings Call & Webcast Q2 Fiscal 2024 January 31, 2024 Copyright © 2024 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 Perspectives
Highlights and Perspectives Strong Q2 financial and operating performance: • 6% revenue growth and 9% adjusted diluted EPS1 growth • Q2 solid ES new business bookings growth; strong acceleration in PEO new business bookings • Strong ES retention and record ADP client satisfaction Progress on strateg
Slide 4: Q2 Fiscal 2024 Financial Highlights
Q2 Fiscal 2024 Financial Highlights (unaudited) Total Revenues Adjusted EBIT1 Adjusted Diluted EPS1 h 6% h 7% h 9% h 6% Organic Constant Currency1 Adjusted EBIT1 Margin h 20 bps $4,668M $2.13 $4,391M $1,147M $1.96 $1,069M Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 1. For a reconciliation of the
Slide 5: Employer Services Segment Results
Q2 Fiscal 2024 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q2 ES Highlights h 8% h 170 bps • Strong revenue growth supported by solid new business bookings, better-than- h 7% Organic Constant Currency1 expected retention, pays per control growth, and increase in client funds
Slide 6: PEO Services Segment Results
Q2 Fiscal 2024 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q2 PEO Highlights h 3% i 50 bps • Delivered very strong PEO new business bookings growth • PEO pays per control growth decelerated from prior quarter but continues to 17.0% 16.5% gradually stabilize $1,503M $1,546M FY24
Slide 7: Fiscal 2024 Outlook
Fiscal 2024 Outlook Fiscal 2023 July 26, 2023 October 25, 2023 January 31, 2024 1 1 1 (unaudited) Fiscal 2024 Outlook Fiscal 2024 Outlook Fiscal 2024 Outlook Revenues $18,012M 6 to 7% 6 to 7% 6 to 7% 2 Adj. EBIT Margin 24.8% 60 to 80 bps 60 to 80 bps 60 to 70 bps Total ADP 2 Adj. Effective Tax Rate
Slide 8: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Average Balances ($) Average Rates Interest Income / (Expense) ($) January 31, 2024 January 31, 2024 January 31, 2024 Fiscal 2023 Fiscal 2023 Fiscal 2023 Fiscal 2024 Fiscal 2024 Fiscal 2024 (unaudited) (unaudited) (unaudited) Outlook Outlook Outlook
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