Paychex Q2 2024 Earnings Report
Key Takeaways
Paychex reported a 6% increase in total revenue, reaching $1.2579 billion, and a 9% increase in diluted earnings per share, amounting to $1.08. The results reflect the company's ability to navigate a stable macroeconomic environment for small and mid-sized businesses while addressing their challenges in accessing growth capital and finding quality talent.
Total revenue increased by 6% to $1.2579 billion, driven by growth in both Management Solutions and PEO and Insurance Solutions.
Diluted earnings per share increased by 9% to $1.08, reflecting strong earnings growth.
Management Solutions revenue increased by 4% to $930.7 million, driven by client growth and higher revenue per client.
PEO and Insurance Solutions revenue increased by 8% to $295.7 million, driven by growth in average PEO worksite employees and PEO insurance revenues.
Paychex
Paychex
Paychex Revenue by Segment
Forward Guidance
Paychex updated its business outlook for the fiscal year ending May 31, 2024, incorporating current assumptions and market conditions.
Positive Outlook
- PEO and Insurance Solutions revenue is now anticipated to grow in the range of 7% to 9%.
- Other income, net is now expected to be in the range of $35 million to $40 million.
- Adjusted diluted earnings per share is now anticipated to grow in the range of 10% to 11%.
- Other aspects of our guidance for fiscal 2024 remain unchanged from what we provided previously.
Revenue & Expenses
Visualization of income flow from segment revenue to net income