Automatic Data Processing, Inc. (NASDAQ:ADP) Q2 2023 Earnings Conference Call January 25, 2023 8:30 AM ET Company Participants Danyal Hussain - Vice President, Investor Relations Maria Black - President and Chief Executive Officer Don McGuire - Chief Financial Officer Conference Call Participants Ramsey El-Assal - Barclays Bank Eugene Simuni - MoffettNathanson James Faucette - Morgan Stanley Tien-Tsin Huang - JPMorgan Kartik Mehta - Northcoast Research Partners Jason Kupferberg - Bank of America Merrill Lyn ...

Copyright © 2023 ADP, Inc. ADP Earnings Call & Webcast Q2 Fiscal 2023 January 25, 2023 Forward Looking Statements This document and other written or oral statements made from time to time by ADP may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements that are not historical in nature and which may be identified by the use of words like "outlook," "expects," "assumes," "projects," "anticipates," "estimates," "we believe," "could," "is de ...

Automatic Data Processing, Inc. (NASDAQ:ADP) Q1 2023 Earnings Conference Call October 26, 2022 8:30 AM ET Company Participants Danyal Hussain - Vice President, Investor Relations Carlos Rodriguez - Chief Executive Officer Maria Black - President Don McGuire - Chief Financial Officer Conference Call Participants Peter Christiansen - Citigroup Inc. Tien-Tsin Huang - JPMorgan Kevin McVeigh - Credit Suisse Kartik Mehta - Northcoast Research Jason Kupferberg - Bank of America Bryan Bergin - Cowen and Company S ...

Summary of Automatic Data Processing, Inc. (ADP) Conference Call Company Overview - **Company**: Automatic Data Processing, Inc. (NASDAQ: ADP) - **Event**: J.P. Morgan's 50th Annual Global Technology, Media and Communications Conference - **Date**: May 23, 2022 Key Industry Insights - **Employment Growth**: ADP reported a 7% growth in pays per control, indicating a solid economic footing [4] - **Inflation Impact**: Inflation is prompting the Federal Reserve to take action, which may slow down the economy. However, rising interest rates could benefit ADP's fluid income [5][6] - **Labor Market**: Low unemployment rates and wage inflation are creating demand for ADP's services, despite cost pressures on the company [6] Core Business Performance - **Bookings and Retention**: Strong client retention and double-digit bookings growth were highlighted as key strengths. Retention rates have improved significantly, particularly in the mid-market and international segments [8][10] - **Client Migration**: Successful migrations to newer platforms have contributed to improved retention and bookings [15][16] - **PEO Business**: The Professional Employer Organization (PEO) segment has shown consistent growth, benefiting from the existing ADP client base [47][49] Financial Metrics - **Client Funds Interest**: ADP experienced a significant headwind from client funds interest due to low interest rates, but rising rates are expected to provide a positive impact moving forward [24][25] - **Revenue Growth**: The company aims to maintain double-digit growth in the PEO segment, although some moderation is anticipated due to macroeconomic factors [48][49] Competitive Landscape - **SaaS vs. Traditional Services**: ADP differentiates itself by combining software with a strong service component, which enhances client retention and satisfaction [30][32] - **Market Position**: ADP's scale and established client relationships provide a competitive advantage, particularly in the PEO market [47] Strategic Initiatives - **Technology Investments**: Continuous investments in technology and user experience are being made to enhance service delivery and client satisfaction [39][40] - **Wisely Initiative**: The Wisely pay card program is seen as a significant growth opportunity, leveraging ADP's existing client relationships to expand into financial services [51][53] Conclusion - **Outlook**: ADP is positioned well to navigate the current economic landscape, with strong demand for its services, a focus on technology investments, and a commitment to maintaining client relationships. The company is optimistic about future growth despite potential challenges from inflation and economic slowdown [6][25][49]

Summary of Automatic Data Processing (ADP) Nasdaq 45th Investor Conference Company Overview - **Company**: Automatic Data Processing (ADP) - **Event**: Nasdaq 45th Investor Conference - **Date**: November 30, 2021 - **Participants**: Don Mcguire (CFO), James Faucette (Morgan Stanley Analyst) Key Industry Insights - **Labor Market Trends**: The ongoing "great resignation" is leading to significant employee turnover across various sectors, with many individuals reassessing their career choices and job satisfaction [5][9] - **Employment Recovery**: Employment levels have shown recovery post-pandemic, with small businesses returning to approximately 2% below pre-pandemic levels, mid-market at about 4%, and upper-market at around 6% below [6][10] - **Sector-Specific Challenges**: Certain sectors, particularly hospitality, are experiencing labor shortages despite overall recovery, indicating a potential mismatch in job availability and worker preferences [8][9] Company Performance and Strategy - **Retention Rates**: ADP has seen improved retention rates attributed to enhanced product offerings and customer service, with a focus on Net Promoter Scores (NPS) driving these improvements [16][17] - **Market Opportunity**: The market for ADP's services is estimated at $150 billion, with significant opportunities to capture market share from companies using legacy systems [19][20] - **Product Migration**: ADP is transitioning to new platforms, which has improved margins and operational efficiency, although challenges remain in client migration and satisfaction [22][24] Financial Performance - **Margin Improvement**: ADP anticipates margin improvements driven by revenue growth and digital transformation initiatives, with operating leverage playing a significant role [37][38] - **Capital Allocation**: Over the past decade, ADP has returned approximately $24 billion to shareholders through buybacks and dividends, with a disciplined approach to M&A focusing on smaller, strategic acquisitions [43][44] Consumer Data Opportunities - **Data Utilization**: ADP has access to extensive consumer data, which can be leveraged for HR analytics, employment verification, and market insights, providing value to employers and other stakeholders [32][34] Challenges and Future Outlook - **Labor Market Constraints**: ADP is not immune to labor market challenges but has successfully increased its workforce to support growth [46][47] - **Technology Acquisition**: The company is cautious about acquiring technology solely for talent acquisition, focusing instead on ensuring that any technology brought in is modern and adds value [49] Conclusion - ADP is navigating a complex labor market while focusing on improving retention, capturing market share, and enhancing product offerings. The company is well-positioned for future growth, leveraging its extensive data capabilities and strategic capital allocation.