Slide 1: ADP Earnings Call & Webcast Q1 Fiscal 2024
ADP Earnings Call & Webcast Q1 Fiscal 2024 October 25, 2023 Copyright © 2023 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 Q1 financial and operating performance: • 7% revenue growth and 12% adjusted diluted EPS1 growth • Record Q1 ES new business bookings volume • Strong ES retention and record ADP client satisfaction Progress on strategic priorities: • HCM Technology – Embedded Gen A
Slide 4: Q1 Fiscal 2024 Financial Highlights
Q1 Fiscal 2024 Financial Highlights (unaudited) Total Revenues Adjusted EBIT1 Adjusted Diluted EPS1 h 7% h 7% h 12% h 7% Organic Constant Currency1 Adjusted EBIT1 Margin h 10 bps $1,093M $4,512M $1,017M $2.08 $4,216M $1.86 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 Q1 FY24 1. For a reconciliation of th
Slide 5: Employer Services Segment Results
Q1 Fiscal 2024 Employer Services Segment Results (unaudited) ES Revenues ES Margin Q1 ES Highlights h 9% h 220 bps • Strong revenue growth supported by solid new business bookings, strong h 8% Organic Constant Currency1 retention, pays per control growth, and higher client funds interest revenue 33.
Slide 6: PEO Services Segment Results
Q1 Fiscal 2024 PEO Services Segment Results (unaudited) PEO Revenues PEO Margin Q1 PEO Highlights h 3% i 90 bps • Average WSE growth continued to be impacted by slowing pays per control growth within the client base • PEO new business bookings growth 16.1% 15.2% remained solid $1,429M $1,470M FY24 P
Slide 7: Fiscal 2024 Outlook
Fiscal 2024 Outlook Fiscal 2023 July 26, 2023 October 25, 2023 1 1 (unaudited) Fiscal 2024 Outlook Fiscal 2024 Outlook Revenues $18,012M 6 to 7% 6 to 7% 2 Adj. EBIT Margin 24.8% 60 to 80 bps 60 to 80 bps Total ADP 2 Adj. Effective Tax Rate 23.1% ~23% ~23% 2 Adj. Diluted EPS $8.23 10 to 12% 10 to 12%
Slide 8: Appendix: Client Funds Investment Strategy Detail
Appendix: Client Funds Investment Strategy Detail Average Balances ($) Average Rates Interest Income / (Expense) ($) October 25, 2023 October 25, 2023 October 25, 2023 Fiscal 2023 Fiscal 2023 Fiscal 2023 Fiscal 2024 Fiscal 2024 Fiscal 2024 (unaudited) (unaudited) (unaudited) Outlook Outlook Outlook
Slide 9: Q1 Fiscal 2024 Updates and Highlights
Q1 Fiscal 2024 Updates and highlights Q1 Fiscal 2024 Financial Highlights (unaudited) 7% 9% Employer Services revenue growth 12% 7% Adjusted EBIT1 growth Revenue Adj. Diluted growth to $4.5 billion 3% PEO Services revenue growth EPS1 growth to $2.08 per share 24.2% Adjusted margin EBIT 1 Recent Reco