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 ...

Summary of Automatic Data Processing, Inc. (ADP) Conference Call Company Overview - **Company**: Automatic Data Processing, Inc. (NASDAQ: ADP) - **Date**: November 17, 2022 - **Participants**: Danyal Hussain (VP of Investor Relations), Tien-Tsin Huang (JPMorgan Analyst) Economic Outlook - ADP tracks major economic indicators such as PMI and consumer spending, with a focus on employment data [3][4] - The labor market remains strong, with over 200,000 new jobs added monthly, indicating optimism among clients [4][5] - Demand for labor is still high, although there are concerns about how long this demand will last [5] Small Business Dynamics - Small businesses show cyclicality, with formations and bankruptcies impacting ADP's business [6] - The normalization of bankruptcy levels post-pandemic is observed, but they remain below recessionary levels [7] Client Base and Market Position - ADP's Employer Services business mirrors the overall market, with a significant portion of revenue (over 35%) coming from the PEO (Professional Employer Organization) segment [9][10] - The PEO segment is less exposed to bankruptcies, as it serves companies with 10 to a few hundred employees, which tend to perform better in downturns [10] Recession Preparedness - ADP has adapted its offerings to cater to both tight labor markets and potential recessionary environments [12][13] - The company has a favorable interest rate backdrop compared to previous recessions, which may provide a tailwind [18] - ADP's approach during downturns is pragmatic, avoiding drastic layoffs and instead monitoring market conditions [19] Pricing Strategy - ADP expects a contribution of 100 to 150 basis points to revenue from price increases, higher than typical due to inflationary pressures [28] - The pricing environment is rational, with long-term contracts being more important than short-term price competition [25][26] Operational Efficiency - Labor costs are the largest expense for ADP, and the company has maintained staffing levels to meet current demand [31] - ADP's flexible staffing approach allows it to adjust based on market conditions without committing to long-term headcount changes [32] Leadership Transition - Maria, the new CEO, aims to enhance client-centric strategies, focusing on understanding and meeting client needs [34][36] Product Development and Data Utilization - ADP is expanding its Wisely product, which offers early wage access and has over 1.5 million cardholders [39] - There is a focus on enhancing employee experience and utilizing data for better service delivery [42][46] Long-term Growth Potential - ADP serves 40 million employees and sees significant growth opportunities in a large addressable market [49][50] - The company is committed to long-term investments and sustainable growth strategies, with no shortage of opportunities for expansion [50]

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.