Company: ADP
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0000008670-25-000007
Chunk: 9

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Part I, Item 2
Chunk 9
---
1% and 2%, respectively, and the impact from the WorkForce Software acquisition. 

Earnings before Income Taxes

Employer Services' earnings before income taxes increased 11% and 13% for the three and six months ended December 31, 2024, respectively, due to contributions from client funds interest revenues discussed above, and operating efficiencies for costs of servicing our clients on growing revenue, partially offset by increased selling expenses.

Margin

31

Employer Services' margin increase for the three and six months ended December 31, 2024, respectively, due to contributions from client funds interest revenues discussed above, and operating efficiencies for costs of servicing our clients on growing revenue, partially offset by acquisition related expenses.

PEO Services

Revenues

PEO RevenuesThree Months EndedChangeSix Months EndedChangeDecember 31,December 31, 20242023$%20242023$%PEO Services' revenues$1,663.3 $1,546.1 $117.2 8 %$3,237.8 $3,015.7 $222.1 7 %Less: PEO zero-margin benefits pass-throughs1,055.2 970.7 84.5 9 %2,104.4 1,947.5 156.9 8 %PEO Services' revenues excluding zero-margin benefits pass-throughs$608.1 $575.4 $32.7 6 %$1,133.4 $1,068.2 $65.2 6 %

PEO Services' revenue increased for the three and six months ended December 31, 2024, due to the increase in zero-margin benefits pass-throughs, and an increase in average worksite employees of 3% for each period, as compared to the three and six months ended December 31, 2023.

Earnings before Income Taxes

PEO Services' earnings before income taxes decreased 1% and remained flat for the three and six months ended December 31, 2024, respectively, due to increased revenues discussed above, partially offset by increases in zero-margin benefits pass-through costs, operating costs related to workers' compensation and state unemployment insurance, and selling expenses, as compared to the three and six months ended December 31, 2023.

Margin 

PEO Services' margin decreased for the three and six months ended December 31, 2024 due to