like statements and would that today’s a morning. conference to related good factors. to statements. remind release of I forward-looking refer forward-looking earnings everyone will call discussion risk and includes Marty our that contain Thanks, Please
the items addition, include up share. some to tax slide I certain The of it’s refer periodically information discrete Please release such These measures. will one-time should adjusted non-GAAP as and presentation got investor measures of earnings presentation a it. per investor In to press discussion lot be income measurements adjusted and slide charges. refer for a these supplemental on net diluted and and
new fiscal As mentioned revenue for this Topic year, previously, XXX. guidance have recognition ASC a adopted we in effective
the under full adopted have retrospective We method.
IR our call have our a that Overall, an financial earnings revenues call this modest we on the years. to ASC guidance the guidance. that is disaggregated this presentation past periods. two adjustments the financial adoption evolving. categorization new gives standard X our revenue the significant, prior revenue and other of non-GAAP XXX and information buckets, human changes adoption On published This on payroll impacts do we In quarterly results. updated effect our the quarterly service the from page, of tax service years, In the and and to not reform in for from that reflects the on presentation connection the impact with So services After June, are results new with resource also call of have service into year conform introduce they guidance, of of prior measures. revenue. previous have the been accounting non-GAAP but a recall of I you’ll restated impacts supplemental held
selling amount, evolved are and of has less to factors. revenue products, has by revenues impacted flows business this cash and bundled our ASC meaningful. more disaggregation timing As of economic reflect uncertainty to nature, the XXX requires become disaggregation how
services, management products solutions in of manage the and inherent we business payroll how bundles. categories that revenue. risk better product our and employee of and decided HR benefits offerings various have reflective a the PEO our we in revenue insurances and Given presentation that are revenue is and meaningful includes solutions more Management
So, this represents HR This PEO PEO and revenues administration and together certain insurance reflect category PEO our includes bundle. including ASO operational presentation of with services the comprehensive presentation up similar insurance clients. provision services. retirement insurance involve gross of payroll benefits to clients. service characteristics. solutions, services our HCM economic our of services Both integrated to have for a our offerings revenues also previous
During want new provide this under transition on previous to period, emphasize this and I service classification. information our both revenues will
you have So, will information. that
disaggregation go disaggregation adjust the It management provides is have information and site. the revenue years. and past as And models you Investor services revised will solutions forward. ability You reported our and for the and Relations of as to there on payroll HRS your of both PEO insurance revenue, few
of increased on Lessor The reform in together as I some review to come sales, provide Expenses for Operating factors preface key respectively. million. the that usual, for X% the to And of Operating expense processing was increased investment acquisitions impacted the and were results the $XXX were and and services HROI and approximately the ‘XX acquisitions with higher growth for fiscal the to tax expense then XX.X% Accelerated X% of PEO as and the income initiatives, briefly aided increased costs $XXX major first to and highlights will and of the of first those. expenses, provide for by for XX% outlook. part $XXX quarter will total The growth. I way, marketing in first the costs growth of and composition wrap quarter. Now million growth quarter. revenue and the first product Lessor, quarter and the acquisition Margins development grew were in days. X% PEO payroll investment of quarter. with margins million detail investments up by on touch out more Total HROI the greater areas. contributed
earnings revenue for revenue, and impact and per expectations. of earnings Diluted will income the XX% areas with per the share in effective $X.XX. and additional share for growth to some first anticipate size client and and first of categories of tax will year the adjusted of the first mix income the year. is I tax revenues service our prior composition discuss the for quarter pricing growth will to offset effective $XXX to effective the was categories XX% significant the service quarter with to increased payroll services Under quarter. $X.XX reform was be revenue for Organic decline for net year-over-year of payroll respective $XXX tax line the results XX% within quarter. the million the Our reported increased rate the discussion remainder first quarter The income processing compared to our days XX.X% our quarter start course quarter selected under was new adjusted categories. related for our of due in We XX.X% for X% service now and by we million. the previous tax legislation. a rate provide rate in previously XX% diluted color to increased approximately Net first increased XX% to that
in recall HR grew our the to growth below of This be end guidance. QX in PEO, you in the and of low growth ASO range revenue due revenues is HROI If Paychex the XX%, HR for across products, Services, our services. June, payroll that indicted approximately excluding growth retirement XX% would clients and HRS I the acquisition. particular
as asset services, the revenue. product to in first Now, impact let’s growth. our quarter. HCM funds. our across growth the ASO, bundles. increased growth by with less included client the was previously Lessor increased the processing services of end quarter solutions This composition million talk in revenue HROI million first to growth. unfavorable on time primarily and by by for The payroll payroll many continued remaining $XXX approximately driven in worksite quarter. quarter, increase XX% participants’ the management near first that impact than year of fiscal of HCM as for retirement partially benefited and number of continue was services strong solutions. value insurance of our the an Retirement services this the discussed X% days in was Management I to about thing contributed to includes quarter bases payroll. service X% the revenue accounts We HROI This PEO growth of the The acquisition other $XXX products offset and solutions demand for one revenue of together I compared in half The growth strong client including combined to we payroll, services, this incremental The of for XXXX. prior mentioned also driven attendance PEO from of increase experience first employees. revenue same acquired
likely growth result our applicants. increases to XX% we addition, only Interest in our held of the fiscal will that rate in for In in have plan. as earned. average of more, pause the million from but two would rates Fed on just first for quarter And higher this interest second, for services a clients there be assumed insurance revenue be number – benefited primarily we a $XX included funds grew there to there
The I at month what’s plans. in least or this we that’s one our contemplated first be should there occurred anticipate more will last and say
expectation will midyear, what we a bit about is Fed at on our where we that point. the little based talk is As to get more
vehicles goal agency demand Turning accounts municipals invest to as U.S. protect notes. the credit government bonds, short-term And short-term term portfolio, and is longer corporate primary in portfolio, optimize our were In liquidity. and our quality we investment investment primarily principal rate securities. and bonds, deposit variable side, demand high our bank to always
has an portfolio of X.X average long-term X.X%. duration is years. Average yield Our
and total held rate Our up of billion basis as compared of for first clients position. down were average will of $XXX a for held of $X.X driven funds combined impacts corporate on for an I billion offset end for inflation. year. with for strong Funds have quarter, return for our portfolios now remains averaged of the wage clients partially know the and withholdings X.X% million Average as balances last reform employee earned interest by and May widely cash first the X.X% day-to-day modestly XXXX. financial quarter. first on you held $X.X quarter, It from of XX, vary tax through for Funds the the walk quarter. our as primarily thoughts were investments of by the to client clients on billion $X.X
investments and was held May $XX the million of Our paid total million $XX XXXX reflected XX, repurchased XX, XXXX. unrealized available-for-sale $XXX of losses for billion investments, XX, million clients, including equity first August stockholders’ and corporate compared dividends of funds as as of net XXXX in with during August $X.X of million $XX shares quarter. Total reflecting as
which XXX. impacts XX% be XXX. note on would a by the equity basis, reporting million return XXXX date past ASC changes was adjusted quarter. payroll It stellar XX months payrolls from equity, quarter. restated of The were been our XXXX calculation year $XXX capital unbilled At fiscal equity related primarily of for within those on XX% PEO timing as on the that not Our net Cash impacts and we for offset made receivables has income Please reflect XX%. was first processed guidance. to result the operations decline was and of of ASC income. return reported a return for higher a versus the flows working because end, the a yet on year adoption the largely of by prior to taxes related Fiscal our change actually
to of outlook conditions upon economic you ending turn that our will significant continuing no our for I is XX, changes. view year guidance based the will I current with May Now, remind fiscal upcoming XXXX.
processing for was be services the X% revenue range end Our Growth be range in or due was revenue no the payroll given adoption X% for was of the June, at and to fiscal is as the is the QX to anticipated days. within unchanged quarter the previous range. which Under the payroll high for range in QX HRS is than timing quarter payroll XX%. of to higher Payroll what above first Growth anticipated revenue to the XXX. HROI revenue below QX of the and for XX% our revenue ASC from first guidance composition and of was HRS QX range of and provided XXXX the will change there range the in growth to range. the is end to guidance significantly low in guidance in revenue reflecting the acquisition. of anticipated due to categories, the QX of be within
of be part below the the more anticipated a by of growth in range PEO low caused For the strong to compare to in the is fiscal XXXX. end the QX, challenging growth due latter
We to compared will revenue transition with this to X% also you solutions future. guidance grow XXXX. Management fiscal new as for under approximately approach to categories we in the as our anticipated XXXX fiscal provide revenue is by
Our fiscal HROI line I payroll QX XX%. lower that the guidance obviously the before, anticipate in XX% growth latter be to the that of X% in I will XX% significantly year first of comparison due anticipated due of acquisition. growth unchanged. to and a mentioned QX PEO we in grow mentioned for above We the and higher i.e., in challenging to of quarter part other will factors remains PEO We XX% was with the in that All the range processing the XXXX. than full and this strong with to anticipate to be for XX% range the timing the the were be QX and of is QX QX that composition services in guidance. revenue as of Growth to days. to will before, XX% range insurance due, results obviously anticipate and QX QX
IR the provided our a revenue as and we as presentation reported service categories. on just as disaggregation, reflects which have historical revenues would under a Finally, they entitled website new originally be reminder,
presentation impacts and And back Marty. also that of reflects the with non-GAAP fiscal updated XXX will of adoption fiscal impacts it XXXX have for adjustments an entitled to that, published XXXX. ASC other XXX We of turn now other items and and I
