Q324 ADP earnings

Revenue Growth: Reported strong 7% revenue growth for the third quarter.
Adjusted Diluted EPS Growth: Achieved 14% adjusted diluted EPS growth.
Employer Services (ES) New Business Bookings: Reached record bookings for a Q3 period.
PEO Revenue Growth: PEO revenue growth was 5% for the third quarter.
Employer Services Retention: Strong retention in the third quarter, reaching a new record level for a Q3 period.
Employer Services Margin: ES margin increased by 230 basis points in Q3.
Client Funds Interest Revenue: Exceeded expectations in Q3 due to higher average client funds balances and a slightly better average yield.

Full Year New Business Bookings Growth Outlook: On track for 4% to 7% new business bookings growth.
Full Year Retention Outlook: Revised to anticipate a 20 to 30 basis points decline, an improvement from prior forecasts.
Employer Services (ES) Revenue Growth Forecast: Reaffirmed at 7% to 8%, likely towards the higher end of the range.
PEO Margin Outlook: Revised to expect a decrease of 120 to 140 basis points for fiscal year 2024.
Consolidated Revenue Growth: No change to the fiscal year 2024 consolidated revenue growth of 6% to 7%.
Adjusted EBIT Margin: Expectation remains for an increase of 60 to 70 basis points.
Effective Tax Rate: Continued to expect around 23% for fiscal year 2024.
Adjusted EPS Growth: Forecast remains at 10% to 12% for fiscal year 2024, with the middle of the range as the most likely outcome.

Labor Market Stability: The labor market and the overall HCM (human capital management) business environment remain stable, contributing to solid performance.
Retention and Client Satisfaction: Ongoing investments in platforms and commitment to delivering an exceptional client experience have helped improve client satisfaction scores to an all-time high.
Technology and AI Investments: Continuing to roll out ADP Assist and other Gen AI capabilities, reflecting an emphasis on leading with best-in-class HCM technology.
Global Scale and Expansion: Progress in extending market-leading global scale, with significant growth in international markets and reaching 1 million paid employees on the IHCM platform.
Marketplace and AI Principles: Establishment of ADP Marketplace AI principles to ensure responsible use of AI throughout the ADP ecosystem.

”This morning, we reported strong 7% revenue growth and 14% adjusted diluted EPS growth for the third quarter as we continued to make progress delivering against our strategic priorities and as the labor market and the overall HCM business environment remains stable.” - Maria Black, President, and CEO.
”Overall, we reported a strong third quarter with our consolidated revenue growth and our adjusted EBIT margin coming in a bit above our expectations.” - Don McGuire, CFO.
”Our focus on our strategic priorities positions us to deliver more value than ever for our over 1 million current clients and to the tens of thousands of new clients we welcome to the ADP family every quarter.” - Maria Black, President, and CEO.
”As usual, we’re focused primarily on maintaining good momentum in our new business bookings and maintaining our strong client satisfaction and retention, and we remain upbeat about our strategy for the years ahead.” - Don McGuire, CFO.