Paychex, Inc. (PAYX) Q4 2023 Earnings Call Transcript

For the period ending May 31, 2023

June 29, 2023 9:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, everyone, and welcome to today's Paychex Fourth Quarter and Fiscal Year-end Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note, this call maybe recorded. I will be standing by should need any assistance.

It is now my pleasure to turn the conference over to Mr. John Gibson, President and CEO. Please go ahead.

John Gibson

Thank you, Stephanie. Thank you, everyone, for joining us for our discussion of the Paychex fourth quarter and fiscal year '23 earnings release. Joining me today is Efrain Rivera, our Chief Financial Officer. This morning, before the market opened, we released our financial results for the fourth quarter and full fiscal year ended May 31. You can access our earnings release on our Investor Relations website. Our Form 10-K will be filed with the SEC before the end of July.

This teleconference is being broadcast over the Internet and will be archived and available on our website for approximately 90 days. I will start with -- the call today with an update on the business highlights for the fourth quarter and fiscal year. Efrain will review our financial results for fiscal '23 and our outlook for '24. We'll then open it up for your questions.

We finished fiscal year '23 with solid financial results and momentum heading into fiscal year 2024. Total revenue grew 9% for the full year and we hit a major milestone for the company with over $5 billion in total revenue. I was personally reflecting on this last night when I joined the company, we were just over $2 billion. It took us 6 years to go from $2 billion to $3 billion, 3 years to go to $3 billion to $4 billion, and it took us 3 years to go to $4 billion to $5 billion, but I remind everybody that was during the global pandemic. So certainly very proud of those results.

In addition to the revenue growth at 9%, adjusted diluted earnings per share grew 13% to $4.27 and operating margins finished at 41% as we continue to benefit from our continued investments in technology, our focus on driving digitalization in all aspects of our business, and our long standing tradition of operating excellence. These results are due to the hard work and dedication of our more than 16,000 employees. I'm very proud of what we've achieved this fiscal year.