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May 31, 2021
Paychex Q4 2021 Earnings Report
Paychex's fourth quarter results were driven by record client retention, sales, and stronger checks per client.
Key Takeaways
Paychex reported strong Q4 2021 results, driven by record client retention and sales, and stronger checks per client. Total service revenue increased by 14% to $1.0147 billion, and diluted earnings per share grew by 20% to $0.73. The company ended the fiscal year with over 710,000 clients and positive service revenue growth.
Service revenue grew 14% to $1.0 billion.
Diluted earnings per share grew 20%.
Client base growth was strong, ending the year with over 710,000 clients.
Management Solutions revenue increased 14% due to client base growth and higher checks per client.
Paychex
Paychex
Paychex Revenue by Segment
Revenue by Segment
Management Solutions Revenue
CapyFin.comPEO & Insurance Revenue
CapyFin.comClient Funds Interest Revenue
CapyFin.com Forward Guidance
Paychex provided its outlook for fiscal year 2022, incorporating current assumptions and market conditions. Changes in the macroeconomic environment could alter this guidance.
Positive Outlook
- Management Solutions revenue is anticipated to grow approximately 7%.
- PEO and Insurance Solutions revenue is anticipated to grow in the range of 8% to 10%.
- Interest on funds held for clients is expected to be flat.
- Total revenue is anticipated to grow approximately 7%.
- Adjusted diluted earnings per share is anticipated to grow in the range of 10% to 12%.
Challenges Ahead
- Changes in the macroeconomic environment could alter our guidance.
- Other expense, net is anticipated to be in the range of $33 million to $37 million.
- The effective income tax rate for fiscal 2022 is anticipated to be in the range of 24% to 25%.
- Unknown: Potential impacts from macroeconomic changes.
- Unknown: Risks associated with forward-looking statements as detailed in the cautionary note.
Revenue & Expenses
Visualization of income flow from segment revenue to net income