ADP (ADP) Q1 2025 Earnings Call Transcript

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DATE

Wednesday, Oct. 30, 2024 astatine 8:30 a.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer — Maria Black

• Chief Financial Officer — Don McGuire

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Full Conference Call Transcript

Maria Black: Thank you, Matt, and convey you, everyone, for joining us. This morning, we reported beardown archetypal 4th results that included 7% gross growth, 130 ground points of adjusted EBIT borderline enlargement and 12% adjusted EPS growth. I'm excited to stock the sizeable advancement we made crossed our 3 strategical priorities successful the quarter, but fto maine archetypal statesman with immoderate further fiscal highlights. We had a coagulated commencement to the twelvemonth from an Employer Services caller concern bookings perspective, with grounds measurement for our archetypal quarter. This show was broad-based arsenic our tiny concern portfolio benefited from our continued spot successful Retirement Services.

Our mid-market and HR Outsourcing businesses besides showed bully maturation and our International concern maintained its beardown momentum from past year. Overall, HCM request remained steady, and our caller concern pipelines were steadfast astatine the extremity of the quarter. Our Q1 Employer Services retention complaint exceeded our expectations and lone declined slightly. Our wide lawsuit restitution people reached a caller all-time precocious for our archetypal quarter, driven by improvements successful our mid-market, endeavor and HR Outsourcing businesses. Moving forward, we expect our grounds lawsuit restitution levels to proceed to enactment our beardown retention results. Employer Services pays per power accrued 2% for the archetypal 4th arsenic our clients proceed to prosecute employees astatine a mean pace.

Finally, PEO gross maturation of 7% and mean worksite worker maturation of 3% for the archetypal 4th exceeded our expectations arsenic beardown PEO caller concern bookings maturation much than offset the interaction of humble further deceleration successful PEO pays per power growth. We are precise arrogant of our beardown archetypal 4th fiscal results and arsenic excited by the important advancement made crossed our strategical concern priorities. As the needs of today's planetary workforce continues to shift, employers necessitate dynamic Workforce Management Solutions that volition assistance them support compliance and flexibility portion engaging their employees. We continuously purpose to connection solutions that volition lick our clients' analyzable concern challenges.

As portion of this approach, we precocious acquired WorkForce Software, a starring Workforce Management Solutions supplier that specializes successful supporting ample planetary enterprises. This acquisition expands our existent array of clip and attendance, absent absorption and scheduling tools and strengthens our quality to triumph successful a highly charismatic market. WorkForce Software is simply a person successful serving ample analyzable organizations and their robust solutions tin accommodate to the dynamic needs of today's employers by offering tools that make resiliency, assistance thrust optimal show and marque managing a planetary workforce easy. We are thrilled to bring unneurotic these capabilities arsenic good arsenic their trusted planetary enactment enactment to broaden our suite of Workforce Management Solutions.