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Jun 30, 2021

ADP Q4 2021 Earnings Report

ADP announced fourth quarter and fiscal year 2021 results, demonstrating revenue and earnings growth, and provided fiscal 2022 outlook.

Key Takeaways

ADP reported an 11% increase in revenues for Q4 2021, reaching $3.7 billion. Net earnings increased by 31% to $538 million, and diluted EPS increased by 31% to $1.26.

Revenues increased 11% to $3.7 billion, with a 9% increase on an organic constant currency basis.

Net earnings increased 31% to $538 million.

Diluted EPS increased 31% to $1.26.

Employer Services new business bookings increased 174%.

Total Revenue
$3.74B
Previous year: $3.38B
+10.7%
EPS
$1.2
Previous year: $1.14
+5.3%
Pays per control growth
8%
Previous year: -10.8%
-174.1%
Avg Paid PEO Employees
616K
Previous year: 548K
+12.4%
Paid PEO Employees (end)
624K
Previous year: 537K
+16.2%
Gross Profit
$1.43B
Previous year: $1.19B
+19.5%
Cash and Equivalents
$2.58B
Previous year: $1.91B
+34.9%
Total Assets
$48.8B
Previous year: $39.2B
+24.5%

ADP

ADP

ADP Revenue by Segment

Forward Guidance

ADP provided its fiscal 2022 outlook, including revenue growth of 6% to 7% and adjusted diluted EPS growth of 9% to 11%.

Positive Outlook

  • Revenue growth of 6% to 7%.
  • Adjusted EBIT margin expansion of 25 to 50 basis points.
  • Adjusted effective tax rate of approximately 22.5%.
  • Diluted EPS growth of 8% to 10%.
  • Adjusted diluted EPS growth of 9% to 11%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income