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Automatic Data Processing Inc. (ADP+0.46%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing a total revenue increase of 8% to $5,048.4 million, compared to $4,668.0 million in the same quarter the previous year. This growth is attributed to new business, strong client retention, and increased pricing.
Interest on funds held for clients contributed $272.8 million to total revenues, up from $225.3 million in the previous year, driven by an increase in average interest rates and client funds balances.
Operating expenses rose to $2,376.1 million from $2,213.3 million, due to higher service and implementation costs and increased PEO Services zero-margin benefits pass-through costs.
Net earnings for the quarter were $963.2 million, up from $878.4 million in the previous year, with diluted earnings per share increasing to $2.35 from $2.13.
Cash flows from operating activities increased to $1,974.7 million, compared to $1,358.9 million in the previous year, due to favorable changes in working capital and business growth.
The company completed the acquisition of WorkForce Software, with integration efforts underway, and returned $1,790 million to shareholders through dividends and share repurchases.
ADP's financial condition remains solid with cash and cash equivalents of $2.2 billion, and the company maintains access to $10.3 billion in committed credit facilities for liquidity.
The filing also discusses the company's exposure to market risks, including interest rate and credit risks, and outlines its investment strategy for client funds.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Automatic Data Processing Inc. quarterly 10-Q report dated January 30, 2025. To report an error, please email earnings@qz.com.