Automatic Data Processing, Inc. (ADP) Q3 2023 Earnings Call Transcript

Automatic Data Processing, Inc. (NASDAQ:ADP) Q3 2023 Earnings Conference Call April 26, 2023 8:30 AM ET

Company Participants

Danny Hussain - Vice President, Investor Relations

Maria Black - President and Chief Executive Officer

Don McGuire - Chief Financial Officer

Conference Call Participants

Bryan Bergin - Cowen

Bryan Keane - Deutsche Bank

Eugene Simuni - MoffettNathanson

Kevin McVeigh - Credit Suisse

James Faucette - Morgan Stanley

Kartik Mehta - Northcoast Research

Ramsey El-Assal - Barclays

Samad Samana - Jefferies

David Togut - Evercore ISI

Mark Marcon - Baird

Tien-Tsin Huang - JPMorgan

Operator

Good morning. My name is Michelle and I will be your conference operator. At this time, I would like to welcome everyone to ADP’s Third Quarter Fiscal 2023 Earnings Call. I would like to inform you that this conference is being recorded. [Operator Instructions] I will now turn the conference over to Mr. Danny Hussain, Vice President, Investor Relations. Please go ahead.

Danny Hussain

Thank you, Michelle and welcome everyone to ADP’s third quarter fiscal 2023 earnings call. Participating today are Maria Black, our President and CEO; 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 risks. 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.

I will now turn it over to Maria.

Maria Black

Thank you, Danny and thank you everyone for joining us. For our third quarter, we delivered strong results, including 10% organic constant currency revenue growth, 110 basis points of adjusted EBIT margin expansion and 14% adjusted EPS growth. Our continued solid financial performance underscores the power of our innovative and mission-critical HCM solutions that serve over 1 million diverse clients around the world as well as our highly recurring revenue business model.