Automatic Data Processing, Inc. (NASDAQ:ADP) TD Cowen 51st Annual TMT Conference May 31, 2023 8:30 AM ET Company Participants Joe DeSilva - President of Global Sales Conference Call Participants Bryan Bergin - TD Cowen Bryan Bergin Let's get started here. My name is Bryan Bergin. I'm a services and HCM analyst here with TD Cowen. First off welcome to TD Cowen 51st Annual TMT Conference. I appreciate everybody joining us today and for this great two day event. ADP really needs no introduction, among the most ...

Automatic Data Processing, Inc. (NASDAQ:ADP) 51st Annual J.P. Morgan Global Technology, Media and Communications Conference May 22, 2023 8:00 AM ET Company Participants Maria Black - President and Chief Executive Officer Conference Call Participants Tien-Tsin Huang - JPMorgan Tien-Tsin Huang Thanks, everybody, for joining for the opening session. My name is Tien-Tsin Huang. I follow the payments processing in the IT services sector at JPMorgan. I was really excited to have ADP kick off the tech conference f ...

Revenue Growth - Total revenues for the three months ended March 31, 2023, were $4,927.8 million, representing a year-over-year growth of 9%[100] - For the nine months ended March 31, 2023, total revenues increased to $13,534.4 million, with a year-over-year growth of 9%[100] - The pays per control metric grew by 5% for the nine months ended March 31, 2023, compared to the same period in 2022[97] - Average worksite employees in PEO services increased by 8% for the nine months ended March 31, 2023, compared to the same period in 2022[97] - Employer Services revenues increased to $3,339.1 million for the three months ended March 31, 2023, an 11% increase from $3,002.0 million in 2022[120] - PEO Services revenues reached $1,592.0 million for the three months ended March 31, 2023, a 5% increase from $1,513.8 million in 2022[124] Earnings and Profitability - Adjusted EBIT for the three months ended March 31, 2023, was $1,372.3 million, reflecting a 14% year-over-year increase[111] - The EBIT margin for the three months ended March 31, 2023, improved to 27.7%, up 130 basis points from the previous year[111] - For the three months ended March 31, 2023, net earnings increased to $1,043.1 million, a 12% year-over-year growth from $928.5 million in 2022[117] - Diluted EPS for the three months ended March 31, 2023, rose to $2.51, reflecting a 14% increase compared to $2.21 in the same period of 2022[117] - Adjusted net earnings for the three months ended March 31, 2023, were $1,047.8 million, up 13% from $929.5 million in 2022[117] - Employer Services' earnings before income taxes increased by 14% for the three months ended March 31, 2023, driven by revenue growth[122] - PEO Services' earnings before income taxes increased by 15% for the three months ended March 31, 2023, due to increased revenues and lower state unemployment insurance costs[125] - The margin for Employer Services improved to 37.3% for the three months ended March 31, 2023, compared to 36.5% in 2022, reflecting an 80 basis points increase[121] - The margin for PEO Services increased to 16.4% for the three months ended March 31, 2023, up from 15.0% in 2022, representing a 140 basis points improvement[121] Cash Flow and Shareholder Returns - Cash returned to shareholders amounted to $2.2 billion, including $1.4 billion in dividends and $0.8 billion in share repurchases[95] - Cash provided by operating activities increased to $3,021.9 million for the three months ended March 31, 2023, up from $2,186.6 million in the same period of 2022, a change of $835.3 million[139] - The company purchased approximately 3.5 million shares of common stock at an average price of $231.45 during the nine months ended March 31, 2023[141] - The company repurchased approximately 3.5 million shares at an average price of $231.45 during the nine months ended March 31, 2023, compared to 7.0 million shares at $213.17 in the prior year[141] Tax and Effective Tax Rate - The effective tax rate for the three months ended March 31, 2023, was 23.5%, up from 22.0% in 2022, primarily due to higher reserves for uncertain tax positions[113] - The adjusted effective tax rate for the three months ended March 31, 2023, was 23.5%, compared to 22.0% in the same period of the previous year[132] Investment and Capital Expenditures - Capital expenditures for the nine months ended March 31, 2023, were $142.8 million, compared to $126.3 million for the same period in 2022, with expectations for fiscal 2023 between $175 million and $200 million[147] - The investment portfolio includes $3.0 billion of senior unsecured notes maturing in 2025, 2028, and 2030, with plans to refinance existing debt as needed[142] - Client funds investment strategy aims to maximize interest income while maintaining liquidity, with a maximum maturity of 10 years for investments[150] Market and Credit Risk - The company limits credit risk by investing primarily in AAA-rated and AA-rated securities, as rated by major credit agencies[158] - The company is exposed to market risk from changes in foreign currency exchange rates, which could impact consolidated results of operations[159] Financial Position and Liquidity - Cash and cash equivalents as of March 31, 2023, totaled $1.8 billion, primarily invested in time deposits and money market funds[136] - The company has $9.7 billion of committed credit facilities available to meet operating, investing, and financing activities[136] - The company has $9.7 billion available under revolving credit agreements, with no borrowings through March 31, 2023[145] - Average daily borrowings increased to $1.5 billion in Q1 2023 from $1.2 billion in Q1 2022, and for the nine months, it rose to $3.2 billion from $1.7 billion[144] - Weighted average interest rates for the three months ended March 31, 2023, were 4.5%, significantly up from 0.1% in the same period last year[144] Securities and Investment Performance - Total available-for-sale securities at fair value were $29.7 billion as of March 31, 2023, compared to $28.4 billion as of June 30, 2022[157] - Net unrealized pre-tax losses on available-for-sale securities were $(1.9 billion) as of March 31, 2023, compared to $(1.7 billion) as of June 30, 2022[157] - The annualized interest rate earned on the entire portfolio increased from 1.3% for the nine months ended March 31, 2022, to 2.2% for the nine months ended March 31, 2023[157] - A hypothetical 25 basis points increase in both short-term and intermediate-term interest rates would result in approximately a $12 million impact to earnings before income taxes over the next twelve months[157] - A hypothetical 25 basis points increase in only short-term interest rates would result in approximately a $5 million impact to earnings before income taxes over the next twelve months[157] Accounting and Reporting - The financial statements are prepared in accordance with U.S. GAAP, requiring management to make estimates and judgments that affect reported amounts[161] - Recent accounting pronouncements are discussed in Note 2 of the Consolidated Financial Statements[162]

Automatic Data Processing, Inc. (NASDAQ:ADP) Q3 2023 Earnings Conference Call April 26, 2023 8:30 AM ET Company Participants Danny Hussain - Vice President, Investor Relations Maria Black - President and Chief Executive Officer Don McGuire - Chief Financial Officer Conference Call Participants Bryan Bergin - Cowen Bryan Keane - Deutsche Bank Eugene Simuni - MoffettNathanson Kevin McVeigh - Credit Suisse James Faucette - Morgan Stanley Kartik Mehta - Northcoast Research Ramsey El-Assal - Barclays Samad Saman ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________ FORM 10-Q ______________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File Number 1-5397 __________________________ AUTOMATIC DATA PROCESSING, INC. (Exact name of registrant as specified in it ...

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 ...

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 ...