Slide 1: Second Quarter Highlights and Financial Results Fiscal 2023
Second 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
Paychex Overview • Comprehensive technology-driven HCM solutions company • Leading-edge technology platform A leading provider of integrated backed by HR and compliance human capital management expertise (“HCM”) solutions for human • Leader in comprehensive HR resources (“HR”), payroll, benefits out
Slide 4: Second Quarter Highlights
Second Quarter Highlights
Slide 5: Second Quarter Financial Highlights
Second Quarter Financial Highlights Service Revenues Operating Income Adjusted Diluted EPS(1) 7% 7% 9% $1,169M $472M $0.99 $1,094M $440M $0.91 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 Q2 FY22 Q2 FY23 (1) Adjusted diluted earnings per share (“EPS”) is not a U.S. generally accepted accounting principles (“GAAP
Slide 6: Second Quarter Service Revenue
Second Quarter Service Revenue (In Millions) $1,094 $1,169 Key Drivers Management Solutions • Increase in the number of client employees throughout our HCM solutions suite $896 • Higher revenue per client due to price $832 +8% realization and increased product penetration • Expansion of HR ancillary
Slide 7: Second Quarter Business Highlights
Second Quarter Business Highlights Achieved solid Q2 revenue and earnings growth o Solid revenue growth and operating margins in challenging environment for SMBs o Strong internal execution and higher client employment levels drove growth o Continued demand for HR technology and HR outsourcing solut
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 customer satisfaction Brandon Hall Group Brandon Hall Group Technology Excellence Award Technology Excellence Award IDC 2022 SaaS Customer Service Best Advance in AI for Business Best Advance in HR Predictive Satisfa
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 December 22, 2021 September 28, 2022 June 29, 2022 Year-over-Year Growth Year-over-Year Growth Year-over-Year Growth Management Solutions Revenue 7% - 8% 5% - 7% 5% - 7% PEO & Insurance Solutions Revenue 5% - 7% 8% - 10% 8% - 10% Total Revenue ~8% 7% - 8% 7% - 8% (1) Adjuste
Slide 13: Financial Results
Financial Results 13
Slide 14: Financial Results
Financial Results For the Three and Six Months ended November 30, 2022 Three Months Ended % Six Months Ended % (In millions, except per share amounts) November 30, 2022 Change November 30, 2022 Change Management Solutions $ 895.3 8% $ 1,800.8 10% PEO and Insurance Solutions $ 273.3 4% 556.1 6% Total
Slide 15: Balance Sheets and Cash Flows
Balance Sheets and Cash Flows November 30, 2022 May 31, 2022 ($ in Millions) Cash, Restricted Cash, & Total Corporate Investments $ 1,334.2 $ 1,304.7 Total Debt, Net of Debt Issuance • Strong liquidity position with no Costs (1) $ 808.0 $ 806.4 net debt Return on Equity 46% 45% • $800M of private pl
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three and Six Months ended November 30, 2022 (In millions, except per share amounts) Three Months Ended Six Months Ended November 30, % November 30, % 2022 2021 Change 2022 2021 Change Net Income $ 360.3 $ 332.1 8% $ 739.5 $ 665.7 11% Non-GAAP Adjustments: Excess
Slide 17: Investment Portfolio Results
Investment Portfolio Results Three Months Ended Six Months Ended November 30, % November 30, % ($ in millions) 2022 2021 Change 2022 2021 Change Average Investment Balances: Funds Held For Clients $ 4,012.7 $ 3,917.5 2% $ 4,065.4 $ 3,907.5 4% Corporate Cash Equivalents and Investments $ 1,349.3 $ 1,
Slide 18: PAYCHEX
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 18