Slide 1: First Quarter Highlights and Financial Results Fiscal 2023
First Quarter Highlights and Financial Results Fiscal 2023
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 software and solutions company • Leading-edge technology platform A leading provider of integrated backed by HR and compliance human capital management expertise (“HCM”) software and solutions for human resources (“HR”), payroll, • Leader in com
Slide 4: First Quarter Highlights
First Quarter Highlights
Slide 5: First Quarter Financial Highlights
First Quarter Financial Highlights Service Revenues Operating Income Adjusted Diluted EPS(1) 11% 12% 16% $1,188M $1.03 $496M $1,068M $443M $0.89 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 Q1 FY23 (1) Adjusted diluted earnings per share (“EPS”) is not a U.S. generally accepted accounting principles (“GA
Slide 6: First Quarter Service Revenue
First Quarter Service Revenue (In Millions) $1,188 Key Drivers $1,068 Management Solutions $917 • Increase in the number of client employees throughout our HCM solutions suite $905 • Higher revenue per client due to price +12% realization and increased product penetration +17% $805 $687 • Expansion
Slide 7: First Quarter Business Highlights
First Quarter Business Highlights Achieved double-digit revenue and earnings growth o Positive trends continued across the business, though at moderating rates o Strong internal execution and continued high client employment levels drove growth o Operating margins expanded 20 basis points to 41.1%,
Slide 8: Product & Technology Horizon
Product & Technology Horizon Innovation to meet our customers’ evolving business needs Artificial Intelligence Data Analytics Expanded (including Paychex Flex Integrations (APIs) Intelligence Engine) Wearable Voice Personalization Solutions Recognition 8
Slide 9: Recent Awards and Recognition
Recent Awards and Recognition Paychex was honored for its innovative technology and impressive corporate culture NelsonHall NEAT Leader 2022 Selling Power Paychex was recognized as a 50 Best Companies to Sell “Leader” in payroll for the 6th For consecutive year Paychex has once again been named as o
Slide 10: Sustained Financial Performance
Sustained Financial Performance (In Millions, Except Per Share Amounts) Total Service Revenue Adjusted Diluted EPS(1) $3.77 $4,554 $3,997 $3.00 $3.04 $3,954 $3,692 $1,111 $2.84 $3,314 $991 $974 $2.55 $814 $556 $3,443 $2,878 $2,963 $3,023 $2,758 FY18(2) FY19 FY20 FY21 FY22 FY18(2) FY19 FY20 FY21 FY22
Slide 11: Fiscal 2023 Outlook
Fiscal 2023 Outlook
Slide 12: Fiscal Year 2023 Outlook
Fiscal Year 2023 Outlook Current Previous September 28, 2022 June 29, 2022 Year-over-Year Growth Year-over-Year Growth Management Solutions Revenue 5% - 7% 5% - 7% PEO & Insurance Solutions Revenue 8% - 10% 8% - 10% Total Revenue 7% - 8% 7% - 8% (1) Adjusted Diluted EPS 11% - 12% 9% - 10% Anticipate
Slide 13: Financial Results
Financial Results 13
Slide 14: Financial Results
Financial Results For the Three Months ended August 31, 2022 Three Months Ended % (In millions, except per share amounts) August 31, 2022 Change Management Solutions $ 905.5 12% PEO and Insurance Solutions 282.8 8% Total Service Revenue 1,188.3 11% Interest on Funds Held for Clients 17.9 24% Total R
Slide 15: Balance Sheets and Cash Flows
Balance Sheets and Cash Flows August 31, 2022 May 31, 2022 ($ in Millions) Cash, Restricted Cash, & Total Corporate Investments $ 1,326.6 $ 1,304.7 Total Debt, Net of Debt Issuance • Strong liquidity position with no Costs (1) $ 808.1 $ 806.4 net debt Return on Equity 46% 45% • $800M of private plac
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three Months ended August 31, 2022 (In millions, except per share amounts) Three Months Ended August 31, % 2022 2021 Change Net Income $ 379.2 $ 333.6 14% Non-GAAP Adjustments: Excess Tax Benefit Related to Employee Stock- Based Compensation Payments (1) (7.3) (10
Slide 17: Investment Portfolio Results
Investment Portfolio Results Three Months Ended August 31, % ($ in millions) 2022 2021 Change Average Investment Balances: Funds Held For Clients $ 4,118.0 $ 3,897.5 6% Corporate Cash Equivalents and Investments $ 1,394.6 $ 1,197.1 16% Average Rate of Return Earned: Funds Held For Clients 1.7% 1.5%
Slide 18: PAYCHEX
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 18