10-Q - AUTOMATIC DATA PROCESSING INC (0000008670) (Filer)
Thu, Jan 30, 7:42 PM (11 days ago)
For the quarter ending December 31, 2024, Automatic Data Processing, Inc. (ADP; NASDAQ: ADP) reported total revenues of $5,048.4 million, an 8% increase from $4,668.0 million in the prior year, driven by strong client retention, new business bookings, and the acquisition of WorkForce Software. Net earnings rose to $963.2 million, a 10% year-over-year increase, with diluted earnings per share (EPS) growing to $2.35 from $2.13. The EBIT margin improved by 50 basis points to 25.0%. Operating expenses increased by 8% to $3,878.2 million, primarily due to higher costs associated with Professional Employer Organization (PEO) services. Cash flow from operations was robust at $1,974.7 million, reflecting favorable working capital changes. The company maintained a solid liquidity position with cash and equivalents of $2.2 billion and no outstanding commercial paper. ADP's future outlook remains positive, supported by strategic acquisitions and ongoing investment in technology, despite potential market uncertainties. The company continues to prioritize shareholder returns, with $1,790 million returned through dividends and share repurchases during the period.