Slide 1: ADP Earnings Call & Webcast Q2 Fiscal 2025
ADP Earnings Call & Webcast Q2 Fiscal 2025 January 29, 2025 Copyright © 2025 ADP, Inc.
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
Slide 3: Highlights and Perspectives
Highlights and Perspectives Strong Q2 financial and operating performance: • 8% revenue growth and 10% adjusted diluted EPS1 growth • Solid ES new business bookings growth with a continued healthy HCM demand backdrop; strong PEO new business bookings growth • Better-than-expected ES retention, as cl
Slide 4: Q2 Fiscal 2025 Financial Highlights
Q2 Fiscal 2025 Financial Highlights (unaudited) Total Revenues Adjusted EBIT1 Adjusted Diluted EPS1 8% 11% 10% 8% Organic Constant Currency1 Adjusted EBIT1 Margin 60 bps $1,272M $2.35 $1,147M $2.13 $5,048M $4,668M Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 Q2 FY24 Q2 FY25 1. For a reconciliation of t
Slide 5: Employer Services Segment Results
Q2 Fiscal 2025 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q2 ES Highlights 8% 90 bps • Strong revenue growth supported by solid new business bookings growth, 7% Organic Constant Currency1 better-than-anticipated retention, and higher client funds interest revenue $3,12
Slide 6: PEO Services Segment Results
Q2 Fiscal 2025 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q2 PEO Highlights 8% 140 bps • Continued strong growth in new business bookings, wages, and worksite employees • Zero-margin benefits pass-through revenue growth accelerated $1,663M 16.5% $1,546M 15.1% • Stabilizatio
Slide 7: Fiscal 2025 Outlook
Fiscal 2025 Outlook July 31, 2024 October 30, 2024 January 29, 2025 Fiscal 2024 Fiscal 2025 Fiscal 2025 Fiscal 2025 (unaudited) 1 1 1 Outlook Outlook Outlook Revenues $19,203M 5 to 6% 6 to 7% 6 to 7% 2 Total Adj. EBIT Margin 25.5% 60 to 80 bps 30 to 50 bps 30 to 50 bps 2 ADP Adj. Effective Tax Rate
Slide 8: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Average Balances ($) Average Rates Interest Income / (Expense) ($) January 29, 2025 January 29, 2025 January 29, 2025 Fiscal 2024 Fiscal 2024 Fiscal 2024 Fiscal 2025 Fiscal 2025 Fiscal 2025 (unaudited) (unaudited) (unaudited) Outlook Outlook Outlook