Summary

• Paychex is a leading human capital management (HCM) software and services company
• It offers integrated solutions for human resources (HR), payroll, benefits, and insurance services for small- to medium-sized businesses.
• The company has more than 730,000 clients in the U.S. and Northern Europe.

Paychex, Inc. (Nasdaq: PAYX, LSE: 0KGE) is a leading provider of integrated human capital management solutions for human resources, payroll, benefits, and insurance services for small to medium sized businesses.

Financial Highlights

Third Quarter FY23 Results¹

• Service revenue was $1.3 billion in the third quarter, an increase of 7% over the prior year period.
• Management Solutions’ revenue was $1.0 billion, an increase of 7%.
• Professional Employer Organization (“PEO”) and Insurance Solutions revenue was $321.2 million, an increase of 6%.
• Total expenses increased 8% to $769.1 million.
• Operating income grew 9% to $611.9 million compared to the prior year period. Operating margin of 44.3% was consistent with the prior year period.
• Diluted earnings per share increased 8% to $1.29 per share and adjusted diluted earnings per share increased 12% to $1.29 per share for the third quarter compared to the prior year period.
• Cash, restricted cash, and total corporate investments of $1.6 billion.
• Short-term and long-term borrowings, net of debt issuance costs, of $808.3 million.
• Cash flow from operations was $1.3 billion for the nine months.

Company Overview

Paychex is a leading human capital management (HCM) software and services company, offering integrated solutions for human resources (HR), payroll, benefits, and insurance services for small- to medium-sized businesses. The company has more than 730,000 clients in the U.S. and Northern Europe.²

Subsidiaries

The company's subsidiaries are for specific business needs.

• .Advance Partners® — Staffing firm services
• Advantage Payroll Payroll® — Payroll services
• ePlan Services — Retirement plan services
• ExpenseWire® — Expense reporting
• Flock® — Benefits administration
• Icon Time® — Time and attendance systems
• Lessor Group — Payroll services in Northern Europe
• MyStaffingPro® — Applicant tracking software
• Nettime® — Time and attendance software
• SurePayroll® — Small business payroll

Solutions and Services

Solutions

Payroll Services

• Small Business Payroll
• Midsize to Enterprise Payroll
• Compare Payroll Packages
• Switch Payroll Companies
• ERTC Service
• Payroll Tax Services

Employee Benefits

• Group Health Insurance
• HSA, FSA & more benefits
• Retirement Services
• Benefits Administration Services

HR Services

• HR Consulting
• Employee Onboarding
• Hiring Services
• PEO

Time & Attendance

• Time Clocks

Product Integrations

Business Insurance

• Workers' Compensation
• General Liability
• Umbrella
• Cyber Liability
• Commercial Property

Services

• Payroll Services
• Time & Attendance
• HR Services
• Employee Benefits Services
• Business Insurance Solutions
• Payment Processing Solutions

References

1. ^ https://investor.paychex.com/news-events/press-releases/detail/705/paychex-inc-reports-third-quarter-results-strong-revenue
2. ^ https://www.paychex.com/corporate