AUTOMATIC DATA PROCESSING INC Annual Report, Year Ended Jun 30, 2022

Automatic Data Processing, Inc. (ADP) reported strong performance for the fiscal year ended June 30, 2022, with a 10% increase in total revenue to $16.5 billion. This growth was driven by strong client retention, an increase in "pays per control" (a measure of employees on ADP clients' payrolls), and robust new business bookings in the Employer Services segment. The Professional Employer Organization (PEO) segment also showed significant growth with a 15% increase in average worksite employees. The company generated substantial free cash flow, enabling significant returns to shareholders through dividends and share repurchases. ADP continues to invest in its cloud-based Human Capital Management (HCM) solutions, focusing on platform enhancements, user experience (UX) improvements, and data-driven insights through ADP DataCloud, positioning itself for continued long-term growth in a dynamic labor market. Financially, ADP demonstrated solid operational efficiency, with its Adjusted EBIT margin expanding by 90 basis points. Diluted EPS also saw a healthy increase of 15%. The company maintains a strong financial position with $1.4 billion in cash and cash equivalents and significant committed credit facilities, providing ample liquidity for operations, investments, and shareholder returns. ADP's strategic focus on innovation and client service, combined with its extensive scale and expertise, underpins its market leadership and ability to navigate evolving workplace trends.