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Sep 30, 2023

ADP Q1 2024 Earnings Report

Reported strong financial performance with revenue growth and margin expansion.

Key Takeaways

ADP reported a 7% increase in revenues to $4.5 billion and a 10% increase in net earnings to $859 million for the first quarter of fiscal year 2024. The company's adjusted EBIT increased by 7% to $1.1 billion, with adjusted diluted EPS increasing by 12% to $2.08. ADP is maintaining its fiscal 2024 outlook for revenue growth of 6% to 7% and adjusted diluted EPS growth of 10% to 12%.

Revenues increased 7% to $4.5 billion; 7% organic constant currency.

Net earnings increased 10% to $859 million, and adjusted net earnings increased 11% to $860 million.

Adjusted EBIT increased 7% to $1.1 billion, and adjusted EBIT margin increased 10 basis points to 24.2%.

Diluted earnings per share increased 11% to $2.08; adjusted diluted EPS increased 12% to $2.08.

Total Revenue
$4.51B
Previous year: $4.22B
+7.0%
EPS
$2.08
Previous year: $1.86
+11.8%
Pays per control growth
2%
Previous year: 6%
-66.7%
Avg Paid PEO Employees
717K
Previous year: 704K
+1.8%
Paid PEO Employees (end)
718K
Previous year: 707K
+1.6%
Gross Profit
$2B
Previous year: $1.68B
+18.8%
Cash and Equivalents
$1.44B
Previous year: $1.21B
+19.4%
Free Cash Flow
$287M
Total Assets
$49.3B
Previous year: $46.4B
+6.4%

ADP

ADP

ADP Revenue by Segment

Forward Guidance

ADP maintains its fiscal 2024 consolidated outlook for revenue growth of 6% to 7%, adjusted EBIT margin expansion of 60 to 80 basis points, and adjusted diluted EPS growth of 10% to 12%.

Positive Outlook

  • Revenue growth of 6% to 7%.
  • Adjusted EBIT margin expansion of 60 to 80 basis points.
  • Adjusted effective tax rate of about 23%.
  • Diluted EPS growth of 10% to 12%.
  • Adjusted diluted EPS growth of 10% to 12%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income