Paychex Inc. (PAYX) reports earnings

The report was filed on December 19, 2024

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Paychex Inc. (PAYX-0.12%) has submitted its 10-Q filing for the quarterly period ended November 30, 2024.

The filing includes financial statements for the quarter, showing total revenue of $1,316.9 million, up from $1,257.9 million in the same quarter the previous year. This increase was driven by growth in both Management Solutions and PEO and Insurance Solutions revenues.

Operating income for the quarter was $538.1 million, compared to $506.2 million in the previous year. The increase in operating income was attributed to revenue growth outpacing expense increases.

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Net income for the quarter was $413.4 million, up from $392.7 million in the previous year. Diluted earnings per share increased to $1.14 from $1.08.

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The company reported total expenses of $778.8 million for the quarter, a 4% increase from the previous year. This was primarily due to higher PEO direct insurance costs and increased investment in technology, sales, and marketing.

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Interest on funds held for clients was $36.1 million, reflecting a 15% increase due to higher average interest rates and investment balances.

Cash provided by operating activities was $841.1 million, while cash used in investing and financing activities was $302.7 million and $776.4 million, respectively.

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As of November 30, 2024, Paychex had $1.3 billion in cash, restricted cash, and total corporate investments. The company also had $18.2 million in short-term borrowings and $800.0 million in long-term borrowings.

Paychex maintains a program to repurchase up to $400.0 million of its common stock, with $296.0 million remaining available for repurchases.

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The company continues to focus on providing integrated human capital management solutions and expanding its client base, while managing expenses and investing in technology.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Paychex Inc. quarterly 10-Q report dated December 19, 2024. To report an error, please email earnings@qz.com.