Paychex, Inc. (PAYX) Q3 2023 Earnings Call Transcript

For the period ending Feburary 28, 2023

March 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 Third Quarter 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. Please note, this call will be recorded, and I will be standing by if you should need any assistance.

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

John Gibson - President and CEO

Thank you, Todd. Thank you, everyone, for joining us for our discussion of the paychex third quarter 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 third quarter ending February 28. You can access our earnings release on our Investor Relations website. Our Form 10-Q will be filed with the SEC within the next day.

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

As you saw in our press release, we delivered solid financial results for the third quarter with total revenue of 8% and adjusted diluted earnings per share growth of 12%. Thanks to the outstanding efforts of our employees we completed a successful selling and calendar year-end season with strong sales volumes and revenue retention for the quarter.

We continue to see a stable macro environment and demand for our solutions. Our unique value proposition is clearly resonating in the market. Small and midsized businesses continue to show remarkable resilience as seen in our job at index in the last two months as they contend with a constantly changing labor market, inflation, increasing regulations and rising interest rates.

Before we get into the third quarter results, I want to take a minute to address the recent volatility in the U.S. banking market as a result of two highly publicized bank closings. We have no cash, restricted cash and investments deposited within Silicon Valley Bank or Signature Bank, and we've met all client fund obligations related to employee payment services and remittances to applicable tax or regulatory agencies.