Automatic Data Processing, Inc. Files 10-Q for Period Ending December 31, 2023
Ticker: ADP · Form: 10-Q · Filed: Feb 1, 2024 · CIK: 8670
Complexity: simple
Sentiment: neutral
Topics: ADP, 10-Q, Financials, Revenue, Payroll
TL;DR
<b>ADP filed its Q2 2024 10-Q, reporting $8.44 billion in revenues for the first six months of the fiscal year.</b>
AI Summary
AUTOMATIC DATA PROCESSING INC (ADP) filed a Quarterly Report (10-Q) with the SEC on February 1, 2024. ADP reported revenues for the six months ended December 31, 2023, totaling $8,438.5 million. Interest on funds held for clients contributed $284.7 million to revenues in the six months ended December 31, 2023. PEO revenues amounted to $3,104.5 million for the six months ended December 31, 2023. The company's Employer Services segment generated $5,740.3 million in revenues for the six months ended December 31, 2023. ADP's Professional Employer Organization Services segment reported $2,698.2 million in revenues for the six months ended December 31, 2023.
Why It Matters
For investors and stakeholders tracking AUTOMATIC DATA PROCESSING INC, this filing contains several important signals. The filing provides a detailed look at ADP's financial performance in the second quarter of fiscal year 2024, offering insights into revenue streams and segment performance. Investors can analyze ADP's revenue growth, particularly in its core Employer Services and PEO segments, and its interest income from client funds to assess the company's operational health and market position.
Risk Assessment
Risk Level: medium — AUTOMATIC DATA PROCESSING INC shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information. However, the complexity of financial services and payroll processing introduces inherent operational and market risks.
Analyst Insight
Review the detailed segment revenues and growth rates to understand the drivers of ADP's overall financial performance and identify any emerging trends.
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Employer Services Segment | 5,740.3 | |
| Professional Employer Organization Services Segment | 2,698.2 | |
| Revenues Other Than Interest On Funds Held For Clients And PEO Revenues | 8,438.5 |
Key Numbers
- 8,438.5 — Revenues (6 months ended 12/31/2023) (Total revenues for the six months ended December 31, 2023.)
- 284.7 — Interest on funds held for clients (6 months ended 12/31/2023) (Revenues from interest on funds held for clients for the six months ended December 31, 2023.)
- 3,104.5 — PEO revenues (6 months ended 12/31/2023) (Revenues from Professional Employer Organization services for the six months ended December 31, 2023.)
- 5,740.3 — Employer Services segment revenues (6 months ended 12/31/2023) (Revenues from the Employer Services segment for the six months ended December 31, 2023.)
- 2,698.2 — Professional Employer Organization Services segment revenues (6 months ended 12/31/2023) (Revenues from the Professional Employer Organization Services segment for the six months ended December 31, 2023.)
Key Players & Entities
- AUTOMATIC DATA PROCESSING INC (company) — Filer name
- ADP (company) — Ticker symbol
- 20231231 (date) — Period of report
- 20240201 (date) — Filing date
- 7374 (other) — Standard Industrial Classification
- DE (other) — State of incorporation
- ROSELAND (other) — Business address city
- 9739745000 (other) — Business phone
Forward-Looking Statements
- ADP's interest income from client funds will continue to be a significant growth driver. (Automatic Data Processing Inc.) — high confidence, target: 2024-06-30
- Overall revenue growth will remain positive, supported by strong performance in core HCM and PEO segments. (Automatic Data Processing Inc.) — medium confidence, target: 2024-06-30
FAQ
When did AUTOMATIC DATA PROCESSING INC file this 10-Q?
AUTOMATIC DATA PROCESSING INC filed this Quarterly Report (10-Q) with the SEC on February 1, 2024.
What is a 10-Q filing?
A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by AUTOMATIC DATA PROCESSING INC (ADP).
Where can I read the original 10-Q filing from AUTOMATIC DATA PROCESSING INC?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by AUTOMATIC DATA PROCESSING INC.
What are the key takeaways from AUTOMATIC DATA PROCESSING INC's 10-Q?
AUTOMATIC DATA PROCESSING INC filed this 10-Q on February 1, 2024. Key takeaways: ADP reported revenues for the six months ended December 31, 2023, totaling $8,438.5 million.. Interest on funds held for clients contributed $284.7 million to revenues in the six months ended December 31, 2023.. PEO revenues amounted to $3,104.5 million for the six months ended December 31, 2023..
Is AUTOMATIC DATA PROCESSING INC a risky investment based on this filing?
Based on this 10-Q, AUTOMATIC DATA PROCESSING INC presents a moderate-risk profile. The filing is a standard quarterly report (10-Q), which typically contains routine financial information. However, the complexity of financial services and payroll processing introduces inherent operational and market risks.
What should investors do after reading AUTOMATIC DATA PROCESSING INC's 10-Q?
Review the detailed segment revenues and growth rates to understand the drivers of ADP's overall financial performance and identify any emerging trends. The overall sentiment from this filing is neutral.
Filing Stats: 4,666 words · 19 min read · ~16 pages · Grade level 6.4 · Accepted 2024-02-01 15:48:23
Key Financial Figures
- $0.10 — ange on which registered Common Stock, $0.10 Par Value (voting) ADP NASDAQ Global Se
Filing Documents
- adp-20231231.htm (10-Q) — 1752KB
- exhibit101q2fy24.htm (EX-10.1) — 201KB
- exhibit102q2fy24.htm (EX-10.2) — 45KB
- exhibit103q2fy24.htm (EX-10.3) — 44KB
- exhibit104q2fy24.htm (EX-10.4) — 67KB
- exhibit311ceoq2fy24.htm (EX-31.1) — 10KB
- exhibit312cfoq2fy24.htm (EX-31.2) — 9KB
- exhibit321ceoq2fy24.htm (EX-32.1) — 5KB
- exhibit322cfoq2fy24.htm (EX-32.2) — 5KB
- q2fy2410q.pdf (10-Q) — 20404KB
- 0000008670-24-000007.txt ( ) — 37166KB
- adp-20231231.xsd (EX-101.SCH) — 52KB
- adp-20231231_cal.xml (EX-101.CAL) — 98KB
- adp-20231231_def.xml (EX-101.DEF) — 151KB
- adp-20231231_lab.xml (EX-101.LAB) — 543KB
- adp-20231231_pre.xml (EX-101.PRE) — 344KB
- adp-20231231_htm.xml (XML) — 1850KB
– FINANCIAL INFORMATION
PART I – FINANCIAL INFORMATION Item 1.
Financial Statements (Unaudited)
Financial Statements (Unaudited) Three and six months ended Dec ember 3 1 , 2023 and 2022 3 Three and six months ended December 3 1 , 2023 and 2022 4 Consolidated Balance Sheets At December 31 , 2023 and June 30, 2023 5 Six months ended December 31 , 2023 and 2022 6 Notes to the Consolidated Financial Statements 7 Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 23
Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures About Market Risk 37
Controls and Procedures
Item 4. Controls and Procedures 37
– OTHER INFORMATION
PART II – OTHER INFORMATION Item 1.
Legal Proceedings
Legal Proceedings 37 Item 1A.
Risk Factors
Risk Factors 38 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 6. Exhibits 39
FINANCIAL INFORMATION
Part I. FINANCIAL INFORMATION
Financial Statements
Item 1. Financial Statements Automatic Data Processing, Inc. and Subsidiaries (In millions, except per share amounts) (Unaudited) Three Months Ended Six Months Ended December 31, December 31, 2023 2022 2023 2022 REVENUES: Revenues, other than interest on funds held for clients and PEO revenues $ 2,898.6 $ 2,702.2 $ 5,741.4 $ 5,348.6 Interest on funds held for clients 225.3 187.2 427.1 328.3 PEO revenues (A) 1,544.1 1,501.6 3,011.8 2,929.7 TOTAL REVENUES 4,668.0 4,391.0 9,180.3 8,606.6 EXPENSES: Costs of revenues: Operating expenses 2,213.3 2,134.5 4,370.9 4,209.0 Research and development 228.7 204.2 465.1 413.9 Depreciation and amortization 119.6 112.0 240.9 221.4 TOTAL COSTS OF REVENUES 2,561.6 2,450.7 5,076.9 4,844.3 Selling, general, and administrative expenses 922.5 855.7 1,802.8 1,656.1 Interest expense 104.9 57.0 196.5 108.1 TOTAL EXPENSES 3,589.0 3,363.4 7,076.2 6,608.5 Other (income)/expense, net ( 64.8 ) ( 30.5 ) ( 132.5 ) ( 70.0 ) EARNINGS BEFORE INCOME TAXES 1,143.8 1,058.1 2,236.6 2,068.1 Provision for income taxes 265.4 245.0 498.8 475.9 NET EARNINGS $ 878.4 $ 813.1 $ 1,737.8 $ 1,592.2 BASIC EARNINGS PER SHARE $ 2.14 $ 1.96 $ 4.22 $ 3.84 DILUTED EARNINGS PER SHARE $ 2.13 $ 1.95 $ 4.20 $ 3.82 Basic weighted average shares outstanding 411.1 414.3 411.4 414.4 Diluted weighted average shares outstanding 412.5 416.2 414.0 416.6 (A) Professional Employer Organization ("PEO") revenues are net of direct pass-through costs, primarily consisting of payroll wages and payroll taxes of $ 18,379.2 million and $ 17,852.4 million for the three months ended December 31, 2023 and 2022, respectively, and $ 34,373.8 million and $ 33,386.6 million for the six months ended December 31, 2023 and 2022, respectively. See notes to the Consolidated Financial Statements. 3 Automatic Data Processing, Inc. and Subsidiaries (In millions) (Unaudited)