Paychex (PAYX) FY2022 results: revenue $4.6 billion, up 13.7% on the year

Paychex Inc. (PAYX) reported revenue of $4.6 billion for fiscal 2022, the year ended 31 May 2022, up 13.7% on the year before. Net income was $1.4 billion, up 26.9%, and diluted earnings per share $3.84. The figures are the company's own, from the 10-K it filed with the SEC on 15 July 2022.

Revenue

$4.6 billion

+13.7% on the year

FY2015FY2022

Operating margin

39.9%

36.0% a year earlier

FY2015FY2022

Net income

$1.4 billion

+26.9% on the year

FY2015FY2022

Diluted EPS

$3.84

+26.7% on the year

FY2015FY2022

this yearthe year beforeHover a bar for its figure.

The year in brief

The quarters: Q2 FY2022 · Q3 FY2022 · Q4 FY2022

Income statement (profit and loss)

$ million	FY2022	FY2021	FY2020	On the year
Revenue	4,612	4,057	4,040	+13.7%
Cost of revenue	1,356	1,271	1,281	+6.7%
Gross profit	3,255	2,786	2,760	+16.9%
Gross margin	70.6%	68.7%	68.3%
Selling, general and administrative	1,415	1,325	1,299	+6.8%
Operating income	1,840	1,461	1,460	+26.0%
Operating margin	39.9%	36.0%	36.1%
Interest expense	36.6	35.8	38.8	+2.2%
Pre-tax income	1,825	1,434	1,437	+27.2%
Income tax	432	337	339	+28.2%
Effective tax rate	23.7%	23.5%	23.6%
Net income	1,393	1,098	1,098	+26.9%
Net margin	30.2%	27.1%	27.2%
Diluted EPS	$3.84	$3.03	$3.04	+26.7%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2022	FY2021	FY2020	On the year
Operating cash flow	1,590	1,260	1,441	+26.1%
Capital expenditure	134	118	127	+13.0%
Free cash flow	1,456	1,142	1,314	+27.5%
Free cash flow margin	31.6%	28.1%	32.5%
Cash from investing	-1,505	-461	772
Cash from financing	-979	-636	-1,488
Depreciation and amortisation	192	192	210	-0.1%
Share-based compensation	52.8	52.5	47.4	+0.6%
Buybacks	145	156	172	-6.7%
Dividends paid	1,000	909	889	+10.0%
Dividend per share	$2.77	$2.52	$2.48	+9.9%
Diluted shares, weighted	363m	362m	361m	+0.3%
Shares outstanding at period end	360m	360m	359m	+0.0%

Balance sheet

$ million	FY2022	FY2021	FY2020	On the year
Shareholders' equity	3,085	2,948	2,781	+4.7%
Debt	806	805	802	+0.2%
Operating lease liabilities	74.8	92.4	96.9	-19.0%
Other liabilities	5,669	5,382	4,870	+5.3%
Total liabilities and equity	9,635	9,227	8,551	+4.4%
Fixed assets	401	396	407	+1.4%
Goodwill	1,832	1,821	1,791	+0.6%
Intangible assets	225	276	331	-18.6%
Investments	859	43.8	37.4	+1,861.0%
Cash and equivalents	370	995	905	-62.8%
Other assets	5,949	5,696	5,079	+4.4%
Total assets	9,635	9,227	8,551	+4.4%

10-K for the year ended 31 May 2022, filed 15 July 2022: the filing.