Performance Analysis:

Automatic Data Processing (ADP) has shown a strong performance during the period of the nine months ended March 31, 2023. The company delivered solid revenue growth of 9%, with 11% growth in organic constant currency. The pays per control metric, representing the number of employees on ADP clients' payrolls, grew by 5%, and PEO average worksite employees increased by 8% over the same period. ADP's success in obtaining and retaining clients, selling additional services to clients, and compliance with existing or new legislation or regulations has contributed to its growth.

According to CEO Carlos Rodriguez, the growth was driven by a broad array of product and service enhancements to the company’s large and growing client base. Among their most important product initiatives was the continued roll-out of their new user experience, further improving ease of use for the company's solutions. The sales organization and the service organization also executed well in delivering a new record bookings amount in the third quarter, and supporting clients during their busy year-end period while delivering efficiency in support of long-term sustainable and profitable growth.

Future Outlook:

Looking forward, ADP plans to continue investing in its business through enhancements in research and development and driving meaningful transformation in the way that they operate. They also plan to support their associates and clients, who remain well-positioned to continue their growth. ADP has a strong business model, generating significant cash flows with low capital intensity, and offers a suite of products that provide critical support to clients' HCM functions.

However, ADP faces significant competition, primarily from large technology firms and payroll processors. While the company has a solid financial position and a proven ability to compete effectively, the threat of new entrants in the market looms large. The coronavirus pandemic has also created uncertainties, including supply chain disruptions, which could still impact the company’s future performance.

In conclusion, despite the uncertainties posed by the pandemic and potential competition, ADP's strong financial position, impressive client retention, and focus on enhancing its products and services bode well for its future growth. The company’s investments in research and development and continued transformation efforts, combined with its history of delivering results, indicate that it is well-positioned to succeed in the dynamic business and regulatory landscapes.

XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT

XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT

XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT

XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT

Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Automatic Data Processing Inc.

ADP reports solid revenue growth up 9%

Form 8-K - Current report - Item 2.02 Item 9.01

Announcement: ADP 8-K Special Filing

Admin

In today's episode of the podcast, the focus is on the importance of consumer confidence on the US economy, the impact of the collapse of Silicon Valley Bank on the banking sector, and the future of payroll companies such as Paychex and ADP in the rising interest rate environment. The episode also features a Lightning Round segment on companies such as impact financial group and chemical company Linde PLC, who are making moves towards sustainability. Key points discussed in the podcast include:

- The decline in retail spending due to a lack of confidence among consumers and the noticeable boom in the travel industry.
- How recent bank failures, including Silicon Valley Bank and Signature Bank, have impacted confidence in the banking system and led to bank runs and deposit outflows that could hurt national lending.
- The growing trend of credit card usage as consumers tap their credit to fund spending, exacerbating declining confidence.
- Housing, a bright spot in the US economy, is refusing to decline, but the commercial real estate sector is getting clobbered.
- The potential for a regional banking crisis to be avoided as a result of government intervention in the banking system, including the guarantee of deposits at Silicon Valley Bank and Citibank.
- The use of FDIC reserves to contain the damage from the bank failures, without using taxpayer money.
- The future of payroll companies such as Paychex and ADP in the rising interest-rate environment.
- A breakdown of Lindell Basell, a plastics and chemicals company, and their transition towards more sustainable and circular products.
- Zuckerberg's recent decision to downsize Facebook is seen as a necessary move to "right size" the company in a tough economic climate.
- The importance of tech companies being efficient in a struggling economy, and how inefficiency may lead to their potential downfall.

Overall, the episode highlights the importance of the government's response to the banking crisis, the impact of consumer confidence on the US economy, and the future outlook for companies in certain sectors such as payroll processing and sustainability-focused chemicals.

Honeywell Leadership Changes, Fed Rescue Review & LyondellBasell CEO 3/14/23

In today's episode of the podcast for investors, the following key points were discussed:

- ADP's payroll services show that wage growth remains strong despite a slight deceleration, with double-digit wage growth in the lowest pay scale. Technology wages have declined the sharpest of any sector, while leisure and hospitality continue to see double-digit wage growth, but at a slower pace than in the summer of 2021.
- Morgan Stanley is underweight global equities but sees opportunities in credit, especially in Asia. Different credit markets have different sensitivities to rising rates, with the European investment-grade market being a favorite due to longer duration and lower reset costs. The leverage loan market and commercial real estate market are areas of caution.
- PIMCO is underweight bonds, overweight cash, and commodities, with opportunities in Asian markets. The Congressional Budget Office predicts the US will pay $1.4 trillion in interest on the debt over the next 10 years, but there are no current plans to address the issue.
- The US-China focus on IP, defense spending, TikTok, and AI, and the ongoing battle in Eastern Ukraine were also discussed. Putin's military advantage and disregard for casualties were highlighted, and the speaker recommended that the West help Ukraine and starve Putin of financial resources.

In addition, the podcast touched upon the following points:

- Andrew Sheetz from Morgan Stanley recommends playing for credit improvement in the current environment, while Christian Maliglisman from PIMCO sees momentum in the global economy but acknowledges the challenge of being late in the cycle.
- The speaker believes that there is a lot more consistency than differences in the debt ceiling debate, and that dysfunction is a normal part of the House of Representatives.
- The dramatic exercise work on Ukraine's damaged bridge to Crimea was discussed, with the head of the Wagner group expressing concern about the Russian government's support.
- Upwork was highlighted as a platform that has revolutionized the hiring process by facilitating the hiring of remote talent from all over the world.

Surveillance: Tight Labor with Richardson

Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend]

Announcement: ADP SC 13G/A Statement of acquisition of beneficial ownership by individuals - amendment



Title##: ADP Reports Strong Financial Performance in Q2 2022

ADP reports solid revenue growth up 9%

ADP reports solid revenue growth up 9%

Announcement: ADP 8-K Special Filing

Announcement: ADP 8-K Special Filing

Honeywell Leadership Changes, Fed Rescue Review & LyondellBasell CEO 3/14/23

Honeywell Leadership Changes, Fed Rescue Review & LyondellBasell CEO 3/14/23

Surveillance: Tight Labor with Richardson

Surveillance: Tight Labor with Richardson

Announcement: ADP SC 13G/A Statement of acquisition of beneficial ownership by individuals - amendment

Announcement: ADP SC 13G/A Statement of acquisition of beneficial ownership by individuals - amendment

Announcement: ADP 10-Q Quarterly Report

Announcement: ADP 10-Q Quarterly Report