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Mar 31, 2023

ADP Q3 2023 Earnings Report

Reported strong third quarter fiscal 2023 results with revenue growth, margin expansion, and EPS growth.

Key Takeaways

ADP reported a strong third quarter with a 9% increase in revenues to $4.9 billion. Net earnings increased by 12% to $1.0 billion, and diluted EPS increased by 14% to $2.51. The company is raising full year guidance for adjusted diluted EPS growth.

Revenues increased 9% compared to last year's third quarter to $4.9 billion.

Net earnings increased 12% to $1.0 billion.

Diluted earnings per share increased 14% to $2.51.

Adjusted diluted EPS increased 14% to $2.52.

Total Revenue
$4.93B
Previous year: $4.51B
+9.2%
EPS
$2.52
Previous year: $2.21
+14.0%
Pays per control growth
4%
Previous year: 7%
-42.9%
Avg Paid PEO Employees
710K
Previous year: 688K
+3.2%
Paid PEO Employees (end)
704K
Previous year: 687K
+2.5%
Gross Profit
$2.3B
Previous year: $1.88B
+22.4%
Cash and Equivalents
$1.83B
Previous year: $1.63B
+11.9%
Total Assets
$59.9B
Previous year: $72.1B
-16.9%

ADP

ADP

ADP Revenue by Segment

Forward Guidance

ADP provided fiscal year 2023 outlook, including revenue growth of 8% to 9% and adjusted diluted EPS growth of 16% to 17%.

Positive Outlook

  • Revenue growth of 8% to 9%.
  • Adjusted EBIT margin expansion of 125 to 150 basis points.
  • Adjusted effective tax rate of about 23%.
  • Diluted EPS growth of 16% to 17%.
  • Adjusted diluted EPS growth of 16% to 17%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income