ADP Q4 2023 Earnings Report
Key Takeaways
ADP reported an 8% increase in revenue to $4.5 billion for the fourth quarter, with net earnings up 24% to $777 million. Adjusted diluted EPS increased by 26% to $1.89. The company's Employer Services segment saw revenue growth of 11%, while PEO Services revenues increased by 4%.
Revenues increased by 8% to $4.5 billion, and 9% on an organic constant currency basis.
Net earnings increased by 24% to $777 million, and adjusted net earnings increased 25% to $781 million.
Diluted EPS increased by 25% to $1.87, and adjusted diluted EPS increased 26% to $1.89.
Employer Services revenues increased 11% on a reported basis and on an organic constant currency basis.
ADP
ADP
ADP Revenue by Segment
Forward Guidance
ADP provided its fiscal 2024 outlook, including 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