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Dec 31, 2022

ADP Q2 2023 Earnings Report

Reported strong revenue growth, margin expansion, and adjusted EPS growth.

Key Takeaways

ADP reported a 9% increase in revenues to $4.4 billion and a 17% increase in net earnings to $813 million compared to the second quarter of the previous year. Adjusted diluted EPS increased 19% to $1.96. The company is maintaining its full year guidance for revenue and adjusted diluted EPS growth.

Revenues increased 9% compared to last year's second quarter to $4.4 billion.

Net earnings increased 17% to $813 million, and adjusted net earnings increased 17% to $815 million.

Diluted earnings per share increased 18% to $1.95; adjusted diluted EPS increased 19% to $1.96.

Maintaining full year guidance for 8% to 9% revenue growth and 15% to 17% adjusted diluted EPS growth.

Total Revenue
$4.39B
Previous year: $4.03B
+9.1%
EPS
$1.96
Previous year: $1.65
+18.8%
Pays per control growth
5%
Previous year: 6%
-16.7%
Avg Paid PEO Employees
711K
Previous year: 660K
+7.7%
Paid PEO Employees (end)
710K
Previous year: 668K
+6.3%
Gross Profit
$1.75B
Previous year: $1.58B
+11.1%
Cash and Equivalents
$1.35B
Previous year: $1.75B
-22.9%
Total Assets
$54.5B
Previous year: $59.1B
-7.9%

ADP

ADP

ADP Revenue by Segment

Forward Guidance

ADP is maintaining its full year guidance for 8% to 9% revenue growth and 15% to 17% adjusted diluted EPS growth.

Positive Outlook

  • Revenue growth of 8% to 9%
  • Adjusted EBIT margin expansion of 125 to 150 basis points
  • Adjusted effective tax rate of approximately 23.0%
  • Diluted EPS growth of 15% to 17%
  • Adjusted diluted EPS growth of 15% to 17%

Revenue & Expenses

Visualization of income flow from segment revenue to net income