Slide 1: Fourth Quarter Highlights and Financial Results Fiscal 2024
Fourth Quarter Highlights and Financial Results Fiscal 2024
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 HCM solutions company Paychex Overview • Leading-edge technology platform backed by 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 t
Slide 4: Fourth Quarter Highlights
Fourth Quarter Highlights
Slide 5: Fourth Quarter Financial Highlights
Fourth Quarter Financial Highlights Total Revenue Adjusted Operating Income(1) Adjusted Diluted EPS(1) 5% 15% 15% $521M $1.12 $1,295M $453M $0.97 $1,230M Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 (1) Adjusted operating income and adjusted diluted earnings per share (“EPS”) are not U.S. general
Slide 6: Fourth Quarter Revenue
Fourth Quarter Revenue Total Revenue Key Drivers 5% Total Revenue: Lower contribution from ERTC service impacted growth by approximately 300bps $1,295 $1,230 $38 $25 +54% Management Solutions • Growth in the number of clients served across $300 $327 our suite of HCM solutions +9% • Higher product pe
Slide 7: Fourth Quarter Business Highlights
Fourth Quarter Business Highlights Sustained financial performance o Revenue growth of 5% and adjusted diluted EPS(1) growth of 15% o Excluding ERTC, revenue growth accelerated in Q4 to 8% o Adjusted Operating margin(1) expansion of 330 basis points year-over-year to 40.2% in Q4 o PEO momentum conti
Slide 8: Product & Technology Horizon
Product & Technology Horizon Innovation to meet our customers’ evolving business needs 8
Slide 9: Recent Awards and Recognition
Recent Awards and Recognition Paychex was recognized for its innovative technology and market leadership FORTUNE® Magazine 2024 Ethisphere Worlds’ Most 2024 G2 Best Software Award America’s Most Innovative Ethical Companies Paychex was recognized for having Companies Paychex recognized for the 16th
Slide 10: 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 11: Fiscal 2025 Outlook
Fiscal 2025 Outlook
Slide 12: Fiscal Year 2025 Outlook
Fiscal Year 2025 Outlook Year-over-Year Growth Total Revenue 4.0% - 5.5% (1) Adjusted Diluted EPS 5% - 7% Management Solutions Revenue 3% - 4% PEO & Insurance Solutions Revenue 7% - 9% Anticipated Result Interest on Funds Held for Clients $150M - $160M Operating Income, as a Percent of Total Revenue
Slide 13: Financial Results
Financial Results 13
Slide 14: Financial Results
Financial Results For the Three and Twelve Months ended May 31, 2024 Three Months Ended % Twelve Months Ended % (In millions, except per share amounts) May 31, 2024 Change May 31, 2024 Change Management Solutions $ 930.3 3% $ 3,866.4 4% PEO and Insurance Solutions $ 326.6 9% $ 1,265.6 8% Total Servi
Slide 15: Financial Highlights
Financial (In millions) May 31, 2024 May 31, 2023 Highlights Cash, Restricted Cash, & Total ($ in Millions) Corporate Investments $ 1,554.3 $ 1,649.0 Total Debt, Net of Debt Issuance Costs (1) $ 817.3 $ 808.4 • Strong liquidity position with no Net Cash Position $ 737.0 $ 840.6 net debt Return on Eq
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three and Twelve Months ended May 31, 2024 (In millions, except per share amounts) Three Months Ended Twelve Months Ended May 31, % May 31, % 2024 2023 Change 2024 2023 Change Operating Income $ 481.8 $ 453.3 6% $ 2,174.1 $ 2,033.1 7% Non-GAAP Adjustments: Cost Op
Slide 17: Investment Portfolio Results
Investment Portfolio Results Three Months Ended Twelve Months Ended May 31, % May 31, % ($ in millions) 2024 2023 Change 2024 2023 Change Average Investment Balances: Funds Held For Clients $ 4,679.1 $ 4,504.3 4% $ 4,462.0 $ 4,392.7 2% Corporate Cash Equivalents and Investments $ 1,647.4 $ 1,649.8 –
Slide 18: Supplemental Information
Supplemental Information
Slide 19: FY24 Revenue Composition
FY24 Revenue Composition Management Solutions PEO & Insurance Solutions 5% - 10% 15% - 20% Other Insurance Solutions 25% - 30% HR Solutions (ASO) $3.9B $1.3B 5% - 10% Retirement 55% - 60% 80% - 85% Payroll & HCM Software PEO 19
Slide 20: Paychex: The Power of Simplicity
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 20