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Sep 30, 2021

ADP Q1 2022 Earnings Report

ADP's Q1 2022 financial results were announced, demonstrating revenue growth and increased profitability.

Key Takeaways

ADP reported a strong start to fiscal year 2022, with revenues increasing by 10% to $3.8 billion. Net earnings and adjusted net earnings both increased by 16% to $701 million and $699 million, respectively. The company raised its full-year guidance for new business bookings, revenue retention, average worksite employees, revenue, adjusted EBIT margin, and adjusted diluted EPS.

Revenues increased 10% to $3.8 billion.

Net earnings increased 16% to $701 million.

Adjusted EBIT increased 17% to $915 million.

Diluted EPS increased 18% to $1.65.

Total Revenue
$3.83B
Previous year: $3.47B
+10.4%
EPS
$1.65
Previous year: $1.41
+17.0%
Pays per control growth
7%
Previous year: -9%
-177.8%
Avg Paid PEO Employees
629K
Previous year: 547K
+15.0%
Paid PEO Employees (end)
638K
Previous year: 555K
+15.0%
Gross Profit
$1.51B
Previous year: $1.33B
+13.4%
Cash and Equivalents
$1.6B
Previous year: $1.61B
-0.7%
Total Assets
$60B
Previous year: $42.4B
+41.5%

ADP

ADP

ADP Revenue by Segment

Forward Guidance

ADP provided its fiscal year 2022 outlook, including revenue growth of 7% to 8% and adjusted diluted EPS growth of 11% to 13%.

Positive Outlook

  • Revenue growth of 7% to 8%
  • Adjusted EBIT margin expansion of 50 to 75 basis points
  • Adjusted effective tax rate of approximately 22.5%
  • Diluted EPS growth of 10% to 12%
  • Adjusted diluted EPS growth of 11% to 13%

Revenue & Expenses

Visualization of income flow from segment revenue to net income