Automatic Data Processing Registers 10% Revenue Growth In Q1 Backed By New Business Bookings

  • Automatic Data Processing, Inc ADP reported first-quarter FY23 revenue growth of 10% year-on-year to $4.22 billion, beating the consensus of $4.16 billion.
  • Employer services revenue rose 9% Y/Y to $2.79 billion, and PEO services revenue grew 13% Y/Y to $1.43 billion.
  • Non-GAAP EPS of $1.86 beat the consensus of $1.80.
  • The adjusted EBIT margin expanded 30 bps to 24.1%. ADP held $5.58 billion in cash and equivalents.
  • "Our first quarter revenue growth and margin performance exceeded our expectations as we enjoyed continued momentum in new business bookings, pays per control, worksite employee growth, client funds interest revenue, and client revenue retention," said CFO Don McGuire.
  • 2023 Outlook: ADP sees revenue to $17.82 billion - $17.98 billion versus the previous outlook of $17.65 billion - $17.98 billion versus the consensus of $17.87 billion.
  • It raised the non-GAAP EPS forecast to $8.06 - $8.20, from the previous $7.92 - $8.13, above the consensus of $8.03.
  • Price Action: ADP shares traded lower by 0.28% at $237.10 on the last check Wednesday.
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