What was ADP's revenue performance in fiscal year 2023?

ADP reported total revenues of $18,012.2 million for the fiscal year ended June 30, 2023, representing a 9% increase year-over-year. On an organic constant currency basis, revenue grew by 10%.

How did ADP's key business segments perform?

The Employer Services segment reported a 10% revenue increase, driven by strong new business bookings and client retention. The PEO Services segment also saw growth, with an 8% revenue increase and a 6% rise in average worksite employees.

What is ADP's outlook or strategy for growth?

ADP's strategy focuses on three key priorities: leading with best-in-class HCM technology, providing unparalleled expertise and outsourcing solutions, and leveraging its global scale. The company aims to continue enhancing its platforms and services to meet evolving client needs in the dynamic world of work.

How did ADP return capital to shareholders?

In fiscal year 2023, ADP returned $3.0 billion to shareholders through $1.9 billion in dividends and $1.1 billion in share repurchases, demonstrating a commitment to shareholder value.

ADP 10-K FY2023 Annual Report — Revenue, Net Income, EPS

Summary

Automatic Data Processing, Inc. (ADP) reported strong financial performance for the fiscal year ended June 30, 2023, characterized by robust revenue growth and increased profitability. The company demonstrated significant revenue expansion, with a 9% increase as reported and a 10% increase on an organic constant currency basis. This growth was driven by new business bookings, strong client retention, and a notable increase in interest income from funds held for clients, benefiting from higher interest rates. ADP's strategic focus on best-in-class HCM technology, unparalleled expertise and outsourcing, and leveraging global scale continues to yield positive results. The company surpassed the one million client milestone and saw improvements in key metrics like Employer Services client retention, reaching a record high. Profitability also saw a healthy increase, with diluted earnings per share growing by 17%. The company remains committed to shareholder returns through dividends and share repurchases, underscoring a solid financial position and a positive outlook for continued growth.

Financial Highlights

55 data points

Beta

Revenue

$18.01B

0.4% Gross Margin

Net Income

$3.41B

0.2% Net Margin

EPS (Diluted)

$8.21

Total Assets

$50.97B

Cash & Equivalents

$2.08B

Free Cash Flow

$4.21B

Financial Statements

Beta

Revenue	$18.01B
Cost of Revenue	$9.95B
Gross Profit	$8.06B
R&D Expenses	$844.80M
SG&A Expenses	$3.55B
Operating Expenses	$13.76B
Interest Expense	$253.30M
Net Income	$3.41B
EPS (Basic)	$8.25
EPS (Diluted)	$8.21
Shares Outstanding (Basic)	413.70M
Shares Outstanding (Diluted)	415.70M

Key Highlights

19% Total Revenue Growth, reaching $18.0 billion.
210% Organic Constant Currency Revenue Growth, indicating strong underlying business expansion.
317% Diluted EPS Growth, demonstrating improved profitability.
4Employer Services (ES) segment showed strong performance with 10% new business bookings growth and a record 92.2% client retention rate.
5PEO Services segment also grew, with an 8% revenue increase and 6% average worksite employee growth.
6Significant increase in interest on funds held for clients to $813.4 million, driven by higher interest rates and increased client fund balances.
7Returned $3.0 billion to shareholders through dividends ($1.9 billion) and share repurchases ($1.1 billion).

AUTOMATIC DATA PROCESSING INC Annual Report, Year Ended Jun 30, 2023

Summary

Financial Highlights

Key Highlights

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