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Jun 30, 2024
ADP Q4 2024 Earnings Report
ADP's Q4 2024 financial results were announced, revealing revenue growth and increased earnings.
Key Takeaways
ADP reported a 6% increase in revenue to $4.8 billion and an 8% increase in diluted EPS to $2.02 for the fourth quarter. Adjusted diluted EPS increased 11% to $2.09. The company's Employer Services segment saw revenue growth of 7%, while PEO Services revenue increased by 6%.
Revenues increased 6% to $4.8 billion.
Net earnings increased 7% to $829 million.
Diluted EPS increased 8% to $2.02.
Employer Services revenues increased 7%.
ADP
ADP
ADP Revenue by Segment
Revenue by Segment
Employer Services Revenue
CapyFin.comPEO Services Revenue
CapyFin.com Forward Guidance
ADP anticipates revenue growth of 5% to 6%, adjusted EBIT margin expansion of 60 to 80 basis points, and adjusted diluted EPS growth of 8% to 10% for fiscal year 2025.
Positive Outlook
- Revenue growth of 5% to 6%.
- Adjusted EBIT margin expansion of 60 to 80 basis points.
- Adjusted effective tax rate of about 23%.
- Diluted EPS growth of 9% to 11%.
- Adjusted diluted EPS growth of 8% to 10%.
Challenges Ahead
- Employer Services client revenue retention decrease of 10 to 30 basis points.
- PEO Services margin down 90 to 110 basis points.
- Transformation initiatives expected pre-tax charges of about $5 million.
- Anticipated impact of foreign currency in revenue and operating results.
- Interest on funds held for clients of $1.125 to $1.145 billion based on anticipated growth in client funds balances of 3% to 4% and an average yield that is anticipated to increase to 3.1%
Revenue & Expenses
Visualization of income flow from segment revenue to net income