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Aug 31, 2022

Paychex Q1 2023 Earnings Report

Paychex reported double-digit growth in revenue and diluted earnings per share.

Key Takeaways

Paychex reported strong first quarter results with double-digit growth in both revenue and earnings, driven by the value proposition of their Human Capital Management (HCM) technology and Paychex HR suite. The company also raised its earnings outlook for the year.

Total revenue increased by 11% to $1.206 billion compared to the prior year period.

Management Solutions revenue increased by 12% to $905.5 million.

PEO and Insurance Solutions revenue increased by 8% to $282.8 million.

Diluted earnings per share increased by 14% to $1.05 compared to the prior year period.

Total Revenue
$1.21B
Previous year: $1.08B
+11.4%
EPS
$1.03
Previous year: $0.89
+15.7%
Gross Profit
$855M
Previous year: $770M
+11.0%
Cash and Equivalents
$1.18B
Previous year: $1.1B
+7.5%
Free Cash Flow
$334M
Previous year: $355M
-6.1%
Total Assets
$9.13B
Previous year: $9.37B
-2.6%

Paychex

Paychex

Paychex Revenue by Segment

Forward Guidance

Paychex updated its guidance for the fiscal year ending May 31, 2023, anticipating adjusted diluted earnings per share to grow in the range of 11% to 12%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income