Slide 1: First Quarter Highlights and Financial Results
First 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 Paychex Overview HCM solutions company • Leading-edge technology platform backed by HR and compliance A leading provider of integrated expertise human capital management • Leader in comprehensive HR (“HCM”) solutions for human outsourcing solutions with resources (“
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) 7% 8% 11% $1.14 $536M $1,286M $496M $1.03 $1,206M Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 (1) Adjusted diluted earnings per share (“EPS”) is not a U.S. generally accepted accounting principles (“GAAP”)
Slide 6: First Quarter Revenue
First Quarter Revenue Key Drivers Total Revenue Management Solutions • Growth in the number of clients and client employees served for HCM and worksite 7% $1,286 employees for HR Solutions $1,206 $33 • Higher revenue per client resulting from price $18 +83% realization and product penetration, inclu
Slide 7: First Quarter Business Highlights
First Quarter Business Highlights Sustained revenue growth and double digit earnings growth driven by strong execution o Revenue growth of 7% and adjusted diluted EPS growth of 11% in an uncertain environment for SMBs o Operating margin expansion of 60 basis points year-over-year to 41.7% o Market d
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 honored for its innovative technology and corporate culture PLANSPONSOR Magazine Constellation Research ShortList Recordkeeping Survey 2023 Paychex was named to the 2023 Largest 401(k) Recordkeeper Constellation Research Short List for Paychex was recognized
Slide 10: Sustained Financial Performance
Sustained Financial Performance (in uncertain times) (In Millions, Except Per Share Amounts) Total Service Revenue Adjusted Diluted EPS(1) $4.27 $4,907 $4,554 $3.77 $3,997 $1,177 $3,954 $3,692 $1,111 $3.00 $3.04 $2.84 $991 $974 $814 $3,730 $3,443 $2,878 $2,963 $3,023 FY19 FY20 FY21 FY22 FY23 FY19 FY
Slide 11: Fiscal 2024 Outlook
Fiscal 2024 Outlook
Slide 12: Fiscal Year 2024 Outlook
Fiscal Year 2024 Outlook September 27, 2023 June 29, 2023 Year-over-Year Growth Year-over-Year Growth Management Solutions Revenue 5% - 6% 5% - 6% PEO & Insurance Solutions Revenue 6% - 9% 6% - 9% Total Revenue 6% - 7% 6% - 7% (1) Adjusted Diluted EPS 9% - 11% 9% - 10% Anticipated Result Anticipated
Slide 13: Financial Results
Financial Results 13
Slide 14: Financial Results
Financial Results For the Three Months ended August 31, 2023 Three Months Ended % (In millions, except per share amounts) August 31, 2023 Change Management Solutions $ 955.5 6% PEO and Insurance Solutions 297.8 5% Total Service Revenue 1,253.3 5% Interest on Funds Held for Clients 32.7 83% Total Rev
Slide 15: Balance Sheets and Cash Flows
Balance Sheets and Cash Flows (In millions) August 31, 2023 May 31, 2023 ($ in Millions) Cash, Restricted Cash, & Total Corporate Investments $ 1,743.0 $ 1,649.0 Total Debt, Net of Debt Issuance • Strong liquidity position with no Costs (1) $ 812.0 $ 808.4 net debt Return on Equity 47% 48% • $800M o
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three Months ended August 31, 2023 (In millions, except per share amounts) Three Months Ended August 31, % 2023 2022 Change Net Income $ 419.2 $ 379.2 11% Non-GAAP Adjustments: Excess Tax Benefits Related to Employee Stock-Based Compensation Payments (1) (4.1) (7.
Slide 17: Investment Portfolio Results
Investment Portfolio Results Three Months Ended August 31, % ($ in millions) 2023 2022 Change Average Investment Balances: Funds Held For Clients $ 4,156.9 $ 4,118.0 1% Corporate Cash Equivalents and Investments $ 1,706.9 $ 1,394.6 22% Average Rate of Return Earned: Funds Held For Clients 3.2% 1.7%
Slide 18: PAYCHEX
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 18