Paychex Inc. Q1 FY2024 results: revenue $1.3 billion, up 6.6% on the year

Paychex Inc. (PAYX) reported revenue of $1.3 billion for Q1 FY2024, the quarter ended 31 August 2023, up 6.6% on the same quarter a year earlier. Net income was $419 million, up 10.5% on the year, and diluted earnings per share $1.16. The figures are the company's own, from the 10-Q it filed with the SEC on 28 September 2023.

Revenue$1.3 billionup 6.6%

Net income$419 millionup 10.5%

Diluted EPS$1.16

QuarterQ1 FY2024ended 31 August 2023

The quarter, against the one before and a year earlier

Line	Q1 FY2024	Quarter before	A year earlier	Change on the year
Revenue	1,286	n/a	n/a	n/a
Cost of revenue	360	n/a	n/a	n/a
Gross profit	926	n/a	n/a	n/a
Gross margin	72.0%	n/a	n/a
Selling, general and administrative	390	n/a	n/a	n/a
Operating income	536	n/a	n/a	n/a
Operating margin	41.7%	n/a	n/a
Interest expense	9.4	n/a	n/a	n/a
Pre-tax income	549	n/a	n/a	n/a
Income tax	130	n/a	n/a	n/a
Effective tax rate	23.7%	n/a	n/a
Net income	419	n/a	n/a	n/a
Net margin	32.6%	n/a	n/a
Diluted EPS	$1.16	n/a	n/a	n/a

$ 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 and capital returned

Line	Q1 FY2024	Quarter before	A year earlier	Change on the year
Operating cash flow	656	n/a	n/a	n/a
Capital expenditure	38.7	n/a	n/a	n/a
Free cash flow	617	n/a	n/a	n/a
Free cash flow margin	48.0%	n/a	n/a
Depreciation and amortisation	41.2	n/a	n/a	n/a
Share-based compensation	16.0	n/a	n/a	n/a
Dividends paid	322	n/a	n/a	n/a
Dividend per share	$0.89	n/a	n/a	n/a
Diluted shares, weighted	363m	n/a	n/a	n/a
Shares outstanding at period end	361m	n/a	n/a	n/a

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet at quarter end

Line	Q1 FY2024	Quarter before	A year earlier	Change on the year
Total assets	12,200	n/a	n/a	n/a
Cash and equivalents	1,646	n/a	n/a	n/a
Goodwill	1,881	n/a	n/a	n/a
Long-term debt	798	n/a	n/a	n/a
Operating lease liabilities	55.1	n/a	n/a	n/a
Shareholders' equity	3,588	n/a	n/a	n/a

Quarterly results, the last 12 quarters

	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *
Revenue	1,286	1,258	1,439	1,295	1,318	1,317	1,509	1,427	1,540	1,558	1,809	1,606
Cost of revenue	360	364	380	375	380	379	387	394	414	412	431	417
Gross profit	926	894	1,060	920	938	938	1,122	1,033	1,126	1,145	1,378	1,188
Gross margin	72%	71%	74%	71%	71%	71%	74%	72%	73%	74%	76%	74%
SG&A	390	388	410	438	392	400	430	602	584	574	586	584
Operating income	536	506	650	482	547	538	692	431	542	572	792	605
Operating margin	42%	40%	45%	37%	41%	41%	46%	30%	35%	37%	44%	38%
Interest expense	9.4	8.5	9.9	9.5	9.6	9.5	22.6	63.7	68.2	68.5	68.1	64.7
Pre-tax income	549	518	659	492	557	544	686	389	498	520	739	554
Tax rate	24%	24%	24%	23%	23%	24%	24%	24%	23%	24%	24%	24%
Net income	419	393	499	380	427	413	519	297	384	395	560	421
Net margin	33%	31%	35%	29%	32%	31%	34%	21%	25%	25%	31%	26%
Diluted EPS	$1.16	$1.08	$1.38	$1.05	$1.18	$1.14	$1.43	$0.83	$1.06	$1.10	$1.56	$1.17
Operating cash flow	656	348	672	222	546	295	716	344	718	445	812	581
Capital expenditure	38.7	40.7	40.7	41.3	35.6	47.0	48.7	60.5	55.9	62.1	51.0	65.9
Free cash flow	617	308	631	180	510	248	667	283	662	383	762	515
Buybacks	n/a	n/a	0.0	n/a	104	0.5	0.0	0.0	160	126	75.0	249
Dividends paid	322	320	320	353	353	353	353	389	389	388	388	425
Shares outstanding	361m	360m	360m	360m	360m	360m	360m	360m	360m	359m	358m	356m
Filing	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. 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. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

Source

10-Q for the period ended 31 August 2023, filed 28 September 2023, accession 0000950170-23-050438: the filing on EDGAR. All of Paychex Inc.'s filings: EDGAR company page.

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