Automatic Data Processing's (ADP) CEO Carlos Rodriguez on Q3 2022 Results - Earnings Call Transcript

Automatic Data Processing, Inc. (NASDAQ:ADP) Q3 2022 Earnings Conference Call April 27, 2022 8:30 AM ET

Company Participants

Danyal Hussain – Vice President-Investor Relations

Carlos Rodriguez – Chief Executive Officer

Maria Black – President

Don McGuire – Chief Financial Officer

Conference Call Participants

Peter Christiansen – Citi

Tien-tsin Huang – JPMorgan

Bryan Bergin – Cowen

Eugene Simuni – MoffettNathanson

Kartik Mehta – Northcoast Research

Ramsey El-Assal – Barclays

Mark Marcon – Baird

Mihir Bhatia – Bank of America

James Faucette – Morgan Stanley

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 Third Quarter Fiscal 2022 Earnings Call. I would like to inform you that this conference is being recorded and all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.

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

Danyal Hussain

Thank you, Michelle, and welcome everyone to ADP's third quarter fiscal 2022 earnings call. 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's 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.

And with that, let me turn it to Carlos.

Carlos Rodriguez

Thank you, Danny, and thank you everyone for joining our call. We delivered exceptionally strong third quarter results, including revenue that accelerated to 10% growth on a reported basis and 11% growth on an organic constant currency basis, coupled with solid adjusted EBIT margin expansion. The strong outcome on both revenue and margin drove 17% growth in adjusted diluted EPS, well ahead of our expectations. Our clients have had new shortage of challenges in navigating the last 12 months, but through it all not only have they persevere but they have invested in their workforce to better support their employees and continue to grow their businesses. We're proud to support them in these efforts through our leading HCM technology and unrivaled expertise.