Slide 1: ADP Earnings Call & Webcast Q1 Fiscal 2023
ADP Earnings Call & Webcast Q1 Fiscal 2023 October 26, 2022 Copyright © 2022 ADP, Inc.
Slide 2: Forward Looking Statements and 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 • Strong Q1 FY23 results driven by revenue and margin outperformance versus expectations • Revenue increase of 10%, adjusted EBIT (a) margin increase of 30 basis points, and adjusted diluted EPS (a) growth of 13% • New business bookings showed continued momentum • ES reten
Slide 4: Q1 Fiscal 2023 Financial Highlights
Q1 Fiscal 2023 Financial Highlights (unaudited) Total Revenues Adjusted EBIT (a) Adjusted Diluted EPS (a) h 10% h 11% h 13% h 11% Organic Constant Currency (a) Adjusted EBIT (a) Margin h 30 bps $1.86 $4,216M $1,017M $1.65 $3,832M $915M Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 (a) For a reconc
Slide 5: Employer Services Segment Results
Q1 Fiscal 2023 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q1 Highlights h 9% h 50 bps • Revenue growth and outperformance vs expectations supported by h 11% Organic Constant Currency (a) 30.9% retention improvement, continued 30.5% $2,790M strong pays per control growth, and
Slide 6: PEO Services Segment Results
Q1 Fiscal 2023 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q1 Highlights h 13% h 80 bps • Continued strong Average WSE growth driven by healthy demand environment and ongoing hiring $1,429M 15.3% 16.1% trends within client base $1,264M • PEO new business bookings momentum contin
Slide 7: Fiscal 2023 Outlook
Fiscal 2023 Outlook Fiscal 2022 July 27, 2022 October 26, 2022 (a) (a) (unaudited) Fiscal 2023 Outlook Fiscal 2023 Outlook Revenues $16,498M 7 to 9% 8 to 9% (b) Adj. EBIT Margin 23.5% 100 to 125 bps 125 to 150 bps Total ADP (b) Adj. Effective Tax Rate 22.5% ~23% ~23% (b) Adj. Diluted EPS $7.01 13 to
Slide 8: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Average Balances ($) Average Rates Interest Income / (Expense) ($) October 26, 2022 October 26, 2022 October 26, 2022 Fiscal 2022 Fiscal 2022 Fiscal 2022 Fiscal 2023 Fiscal 2023 Fiscal 2023 (unaudited) (unaudited) (unaudited) Outlook Outlook Outlook