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May 31, 2023
Paychex Q4 2023 Earnings Report
Paychex reported strong Q4 2023 results, marked by double-digit earnings growth and exceeding $5 billion in full-year revenue.
Key Takeaways
Paychex reported a strong fourth quarter and fiscal year, achieving over $5 billion in total revenue. Total revenue grew by 7% for the quarter and 9% for the fiscal year, driven by growth in management solutions and PEO and insurance solutions. Diluted earnings per share increased by 18% for the quarter and 12% for the fiscal year. The company's outlook for fiscal year 2024 anticipates continued growth in revenue and adjusted diluted earnings per share.
Total revenue increased by 7% to $1.23 billion.
Diluted earnings per share increased by 18% to $0.97.
Management Solutions revenue increased by 7% to $905.2 million.
PEO and Insurance Solutions revenue increased by 5% to $299.5 million.
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 anticipates continued growth in revenue and adjusted diluted earnings per share for the fiscal year ending May 31, 2024.
Positive Outlook
- Management Solutions revenue is anticipated to grow in the range of 5% to 6%.
- PEO and Insurance Solutions revenue is anticipated to grow in the range of 6% to 9%.
- Interest on funds held for clients is expected to be in the range of $135 million to $145 million.
- Total revenue is anticipated to grow in the range of 6% to 7%.
- Adjusted diluted earnings per share is anticipated to grow in the range of 9% to 10%.
Challenges Ahead
- Changes in the macroeconomic environment could alter our guidance.
- Our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support.
- The possibility of cyberattacks, security vulnerabilities or Internet disruptions, including data security and privacy leaks, and data loss and business interruptions.
- Volatility in the political and economic environment, including rising inflation.
- The possible effects of negative publicity on our reputation and the value of our brand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income