Automatic Data Processing, Inc. · NASDAQ:ADP

Automatic Data Processing — Q4 2023 Earnings Presentation

11 slides from Automatic Data Processing's earnings presentation, Jul 26, 2023

  1. Slide 1: ADP Earnings Call & Webcast Q4 Fiscal 2023

    ADP Earnings Call & Webcast Q4 Fiscal 2023 July 26, 2023 Copyright © 2023 ADP, Inc.

  2. Slide 2: Forward Looking Statements and Non-GAAP Measures

    Forward Looking Statements This document and other written or oral statements made from time to time by ADP may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by

  3. Slide 3: FY23 Highlights and Perspectives

    FY23 Highlights and Perspectives Strong Q4 results contributed to very strong overall financial performance for FY23: • 10% organic constant currency1 revenue growth • 130 basis points of Adjusted EBIT1 margin expansion • 17% Adjusted diluted EPS1 growth 10% ES new business bookings growth for FY23

  4. Slide 4: Strategic Priorities

    Strategic Priorities Lead with Best-in-Class HCM Technology Provide Unmatched Expertise & Outsourcing Benefit our Clients with our Global Scale Copyright © 2023 ADP, Inc.

  5. Slide 5: Q4 Fiscal 2023 Financial Highlights

    Q4 Fiscal 2023 Financial Highlights (unaudited) Total Revenues Adjusted EBIT1 Adjusted Diluted EPS1 h 8% h 23% h 26% h 9% Organic Constant Currency1 Adjusted EBIT1 Margin h 270 bps $1.89 $4,478M $1,009M $4,128M $1.50 $819M Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 Q4 FY22 Q4 FY23 1. For a reconciliation of th

  6. Slide 6: Fiscal 2023 Financial Highlights

    Fiscal 2023 Financial Highlights (unaudited) Total Revenues Adjusted EBIT1 Adjusted Diluted EPS1 h 9% h 15% h 17% h 10% Organic Constant Currency1 Adjusted EBIT1 Margin h 130 bps $8.23 $4,468M $18,012M $7.01 $16,498M $3,872M FY22 FY23 FY22 FY23 FY22 FY23 1. For a reconciliation of these non-GAAP fin

  7. Slide 7: Employer Services Segment Results

    Q4 Fiscal 2023 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q4 ES Highlights h 11% h 480 bps • Strong revenue growth supported by healthy bookings, retention, pays per h 11% Organic Constant Currency1 control growth, and client funds interest revenue growth $2,723M $3,021M 30.

  8. Slide 8: PEO Services Segment Results

    Q4 Fiscal 2023 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q4 PEO Highlights h 4% i 110 bps • Average WSE growth of 3% as anticipated • Demand environment remained stable; PEO bookings accelerated vs prior quarter 16.9% 15.8% $1,409M $1,460M FY23 PEO Highlights • Solid 8% revenu

  9. Slide 9: Fiscal 2024 Outlook

    Fiscal 2024 Outlook Fiscal 2023 July 26, 2023 1 (unaudited) Fiscal 2024 Outlook Revenues $18,012M 6 to 7% 2 Adj. EBIT Margin 24.8% 60 to 80 bps Total ADP 2 Adj. Effective Tax Rate 23.1% ~23% 2 Adj. Diluted EPS $8.23 10 to 12% Revenues $12,043M 7 to 8% Margin 33.0% 130 to 150 bps Employer ES New Busi

  10. Slide 10: Appendix: Client Funds Investment Strategy Detail

    Appendix: Client Funds Investment Strategy Detail Average Balances ($) Average Rates Interest Income / (Expense) ($) July 26, 2023 July 26, 2023 July 26, 2023 Fiscal 2023 Fiscal 2023 Fiscal 2023 Fiscal 2024 Fiscal 2024 Fiscal 2024 (unaudited) (unaudited) (unaudited) Outlook Outlook Outlook Client Sh

  11. Slide 11: Appendix: Client Fund Portfolio Maturities

    Appendix: Client Fund Portfolio Maturities Client Funds Investment Strategy Portfolio at June 30, 2023 Client Funds Investment Strategy Portfolio at June 30, 2023 Available for Sale Securities Maturities and30, Book Yields Available for Sale Securities Client Fundsand Maturities Investment Strategy

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