Slide 1: First Quarter Highlights and Financial Results Fiscal 2025
First Quarter Highlights and Financial Results Fiscal 2025
Slide 2: Forward Looking Statements
Forward Looking Statements Certain written statements in this presentation may contain, and members of management may from time to time make or discuss statements which constitute, "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation
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: First Quarter Highlights
First Quarter Highlights
Slide 5: First Quarter Financial Highlights
First Quarter Financial Highlights Total Revenue Operating Income Adjusted Diluted EPS(1) 3% 2% 2% $1,319M $547M $1.16 $1,286M $536M $1.14 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 (1) Adjusted diluted earnings per share (“EPS”) is not a U.S. generally accepted accounting principles (“GAAP”) m
Slide 6: First Quarter Revenue
First Quarter Revenue Total Revenue Key Drivers Total Revenue: +7% excluding ERTC and 3% having one less payroll processing day Management Solutions $1,286 $1,319 • Growth in the number of clients served across our suite of HCM solutions and client worksite $33 +15% $38 employees for HR Solutions •
Slide 7: First Quarter Business Highlights
First Quarter Business Highlights Sustained growth in revenue and earnings o Solid revenue growth of 3% and adjusted diluted EPS(1) growth of 2% o Excluding expiration of ERTC and one fewer processing day, revenue grew 7% o PEO momentum continues with strong results in sales and retention o Stable t
Slide 8: Recent Product & Technology Launches
Recent Product & Technology Launches Designed to simplify common HR and payroll challenges Paychex Recruiting Copilot • New AI-assisted talent acquisition solution powered by unique and robust data set • Analyzes millions of potential employees through a natural language search engine • Quickly prod
Slide 9: Product & Technology Horizon
Product & Technology Horizon Innovation to meet our customers’ evolving business needs 9
Slide 10: Recent Awards and Recognition
Recent Awards and Recognition Paychex was recognized for its innovative technology, market leadership, and corporate culture TIME America’s Best Mid-size Selling Power 60 Best Human Resource Executive 2024 Companies 2024 Companies to Sell For Top HR Product of the Year Paychex ranked 29th out of 500
Slide 11: Sustained Financial Performance (in uncertain times)
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 12: Fiscal 2025 Outlook
Fiscal 2025 Outlook
Slide 13: Fiscal Year 2025 Outlook
Fiscal Year 2025 Outlook October 1, 2024 June 26, 2024 Year-over-Year Growth Year-over-Year Growth Total Revenue 4.0% - 5.5% 4.0% - 5.5% Adjusted Diluted EPS(1) 5% - 7% 5% - 7% Management Solutions Revenue 3% - 4% 3% - 4% PEO & Insurance Solutions Revenue 7% - 9% 7% - 9% Anticipated Result Anticipat
Slide 14: Financial Results
Financial Results 14
Slide 15: Financial Results
Financial Results For the Three Months ended August 31, 2024 Three Months Ended % (In millions, except per share amounts) August 31, 2024 Change Management Solutions $ 961.7 1% PEO and Insurance Solutions $ 319.3 7% Total Service Revenue $ 1,281.0 2% Interest on Funds Held for Clients $ 37.5 15% Tot
Slide 16: Financial Highlights
(In millions) August 31, 2024 May 31, 2024 Financial Cash, Restricted Cash, & Total Highlights Corporate Investments $ 1,552.9 $ 1,554.3 ($ in Millions) Total Debt, Net of Debt Issuance Costs(1) $ 817.6 $ 817.3 Net Cash Position $ 735.3 $ 737.0 • Strong liquidity position with no Return on Equity 46
Slide 17: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three Months ended August 31, 2024 (In millions, except per share amounts) Three Months Ended August 31, % 2024 2023 Change Net Income $ 427.4 $ 419.2 2% Non-GAAP Adjustments: Excess Tax Benefit Related to Employee Stock-Based Compensation Payments (1) (6.2) (4.1)
Slide 18: Investment Portfolio Results
Investment Portfolio Results Three Months Ended August 31, % ($ in millions) 2024 2023 Change Average Investment Balances: Funds Held For Clients $ 4,286.1 $ 4,156.9 3% Corporate Cash Equivalents and Investments $ 1,619.9 $ 1,706.7 -5% Average Rate of Return Earned: Funds Held For Clients 3.5% 3.2%
Slide 19: PAYCHEX
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 19