Company: ADP
Filing Date: 2025-01-30
Form Type: 10-Q
Source: 0000008670-25-000007
Chunk: 61

Company: AUTOMATIC DATA PROCESSING INC
Filing Date: 2025-01-30
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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.7)n/m$1,261.3 $1,143.8 10 %$2,497.5 $2,236.6 12 %

MarginThree Months EndedSix Months EndedDecember 31,December 31, 20242023YoY Growth20242023YoY GrowthEmployer Services34.9 %34.0 %90 bps35.3 %33.5 %180 bpsPEO Services15.1 %16.5 %(140) bps14.7 %15.8 %(110) bps

n/m - not meaningful

Employer Services

Revenues

Revenues increased for the three and six months ended December 31, 2024 due to new business started from New Business Bookings, strong client retention, an increase in pricing, an increase in interest earned on funds held for clients, an increase in our pays per control of 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.