Automatic Data Processing (ADP) CEO, Carlos Rodriguez on Q4 2022 Results - Earnings Call Transcript

Automatic Data Processing Inc. (NASDAQ:ADP) Q4 2022 Earnings Conference Call July 27, 2022 9:00 AM ET

Company Participants

Carlos Rodriguez - Chief Executive Officer

Maria Black - President

Don McGuire - Chief Financial Officer

Danyal Hussain - Vice President, Investor Relations

Conference Call Participants

Bryan Bergin - Cowen

Kevin McVeigh - Credit Suisse

Bryan Keane - Deutsche Bank

Tien-tsing Huang - JP Morgan

Dan Dolev - Mizuho

Mark Marcon - Baird

Ramsey El-Assal - Barclays

David Togut - Evercore ISI

Samad Samana - Jefferies

Operator

Good morning. My name is Michelle and I’ll be your conference Operator.

At this time, I would like to welcome everyone to ADP’s fourth quarter fiscal 2022 earnings call.

I would like to inform you that this conference is being recorded. After the speakers’ presentation, we will conduct a question and answer session.

I will now turn the conference over to Mr. Danyal Hussain, Vice President, Investor Relations. Please go ahead.

Danyal Hussain

Thank you Michelle, and apologies to everyone for the brief delay. Welcome everyone to ADP’s fourth quarter fiscal 2022 earnings call and webcast. Participating today are Carlos Rodriguez, our CEO, Maria Black, our President, and Don McGuire, our CFO.

Earlier this morning, we released our results for the quarter. Our earnings materials are available on the SEC website and our Investor Relations website at investors.adp.com, where you will also find the investor presentation that accompanies today’s call.

During our call, we will reference non-GAAP financial measures which we believe to be useful to investors and that exclude the impact of certain items. A description of these items along with a reconciliation of non-GAAP measures to the most comparable GAAP measures can be found in our earnings release.

Today’s call will also contain forward-looking statements that refer to future events and involve some risk. We encourage you to review our filings with the SEC for additional information on factors that could cause actual results to differ materially from our current expectations.

With that, let me turn it over to Carlos.

Carlos Rodriguez

Thank you Dany, and thank you everyone for joining our call.

We finished our fiscal 2022 with a strong fourth quarter that featured 10% revenue growth and 12% organic constant currency revenue growth. We also delivered 170 basis points of adjusted EBIT margin expansion which helped drive 25% adjusted EPS growth, and for the full fiscal year 2022 we ended up with 10% revenue growth, 90 basis points of margin expansion, 16% adjusted EPS growth, and importantly we achieved record bookings and near record level retention, reflecting our strong position in the HCM market.