Slide 1: Third Quarter Highlights and Financial Results
Third 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 An industry-leading human capital expertise management (“HCM”) company • Industry leader in comprehensive delivering a full suite of technology HR outsourcing solut
Slide 4: Third Quarter Highlights
Third Quarter Highlights
Slide 5: Third Quarter Financial Highlights
Third Quarter Financial Highlights Total Revenue Operating Income Adjusted Diluted EPS(1) 4% 6% 7% $650M $1.38 $1,439M $612M $1.29 $1,381M Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 Q3 FY24 (1) Adjusted diluted earnings per share (“EPS”) is not a U.S. generally accepted accounting principles (“GAAP”) m
Slide 6: Third Quarter Revenue
Third Quarter Revenue Total Revenue Key Drivers 4% Management Solutions $1,439 • Growth in the number of clients served across $1,381 our suite of HCM solutions +25% $44 $35 • Higher product penetration, including HR Solutions and Retirement $321 +8% $345 • A decline in revenue from ancillary servic
Slide 7: Third Quarter Business Highlights
Third Quarter Business Highlights Sustained financial performance o Revenue growth of 4% and adjusted diluted EPS(1) growth of 7% o Excluding ERTC revenue, revenue growth accelerated in Q3 to 7% o Operating margin expansion of 80 basis points year-over-year to 45.1% o PEO momentum continues with str
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 recognized for its innovative technology and market leadership FORTUNE® Magazine 2024 America’s Ethisphere Worlds’ Most 2024 G2 Best Software Award Most Innovative Companies Ethical Companies Paychex was recognized for having Paychex was recognized for a sec
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 April 2, 2024 December 21, 2023 September 27, 2023 June 29, 2023 Year-over-Year Growth Year-over-Year Growth Year-over-Year Growth Year-over-Year Growth Management Solutions Revenue 3.5% - 4.0% 5% - 6% 5% - 6% 5% - 6% PEO & Insurance Solutions Revenue 7% - 9% 7% - 9% 6% - 9%
Slide 13: Financial Results
Financial Results 13
Slide 14: Financial Results
Financial Results For the Three and Nine Months ended February 29, 2024 Three Months Ended % Nine Months Ended % (In millions, except per share amounts) February 29, 2024 Change February 29, 2024 Change Management Solutions $ 1,049.9 2% $ 2,936.1 4% PEO and Insurance Solutions $ 345.5 8% $ 939.0 7%
Slide 15: Balance Sheets and Cash Flows
Balance Sheets and Cash Flows (In millions) February 29, 2024 May 31, 2023 ($ in Millions) Cash, Restricted Cash, & Total Corporate Investments $ 1,772.8 $ 1,649.0 Total Debt, Net of Debt Issuance • Strong liquidity position with no Costs (1) $ 817.3 $ 808.4 net debt Return on Equity 47% 48% • $800M
Slide 16: Non-GAAP Financial Measures
Non-GAAP Financial Measures For the Three and Nine Months ended February 29, 2024 (In millions, except per share amounts) Three Months Ended Nine Months Ended February 29, February 28, % February 29, February 28, % 2024 2023 Change 2024 2023 Change Net Income $ 498.6 $ 467.4 7% $ 1,310.5 $ 1,206.9 9
Slide 17: Investment Portfolio Results
Investment Portfolio Results Three Months Ended Nine Months Ended February 29, February 28, % February 29, February 28, % ($ in millions) 2024 2023 Change 2024 2023 Change Average Investment Balances: Funds Held For Clients $ 4,975.7 $ 4,935.7 1% $ 4,389.6 $ 4,355.5 1% Corporate Cash Equivalents and
Slide 18: PAYCHEX
PAYCHEX HR | Payroll | Benefits | Insurance The Power of Simplicity 18