Paychex (PAYX) FY2024 results: revenue $5.3 billion, up 5.4% on the year

Paychex Inc. (PAYX) reported revenue of $5.3 billion for fiscal 2024, the year ended 31 May 2024, up 5.4% on the year before. Net income was $1.7 billion, up 8.5%, and diluted earnings per share $4.67. The figures are the company's own, from the 10-K it filed with the SEC on 11 July 2024.

Revenue

$5.3 billion

+5.4% on the year

FY2017FY2024

Operating margin

41.2%

40.6% a year earlier

FY2017FY2024

Net income

$1.7 billion

+8.5% on the year

FY2017FY2024

Diluted EPS

$4.67

+8.6% on the year

FY2017FY2024

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2024 · Q2 FY2024 · Q3 FY2024 · Q4 FY2024

Income statement (profit and loss)

$ million	FY2024	FY2023	FY2022	On the year
Revenue	5,278	5,007	4,612	+5.4%
Cost of revenue	1,479	1,453	1,356	+1.8%
Gross profit	3,799	3,554	3,255	+6.9%
Gross margin	72.0%	71.0%	70.6%
Selling, general and administrative	1,625	1,521	1,415	+6.8%
Operating income	2,174	2,033	1,840	+6.9%
Operating margin	41.2%	40.6%	39.9%
Interest expense	37.3	36.7	36.6	+1.6%
Pre-tax income	2,218	2,048	1,825	+8.3%
Income tax	528	491	432	+7.5%
Effective tax rate	23.8%	24.0%	23.7%
Net income	1,690	1,557	1,393	+8.5%
Net margin	32.0%	31.1%	30.2%
Diluted EPS	$4.67	$4.30	$3.84	+8.6%

$ 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	FY2024	FY2023	FY2022	On the year
Operating cash flow	1,898	1,706	1,590	+11.2%
Capital expenditure	161	143	134	+12.9%
Free cash flow	1,736	1,563	1,456	+11.1%
Free cash flow margin	32.9%	31.2%	31.6%
Cash from investing	-261	212	-1,505
Cash from financing	-1,875	-711	-979
Depreciation and amortisation	176	177	192	-0.1%
Share-based compensation	61.1	62.6	52.8	-2.4%
Buybacks	169	0.0	145
Dividends paid	1,315	1,175	1,000	+11.9%
Dividend per share	$3.65	$3.26	$2.77	+12.0%
Diluted shares, weighted	362m	362m	363m	-0.1%
Shares outstanding at period end	360m	360m	360m	-0.1%

Balance sheet

$ million	FY2024	FY2023	FY2022	On the year
Shareholders' equity	3,801	3,493	3,085	+8.8%
Debt	817	808	806	+1.1%
Operating lease liabilities	49.0	57.3	74.8	-14.5%
Other liabilities	5,716	6,188	5,669	-7.6%
Total liabilities and equity	10,383	10,546	9,635	-1.5%
Fixed assets	412	396	401	+3.9%
Goodwill	1,883	1,834	1,832	+2.7%
Intangible assets	194	187	225	+3.8%
Investments	37.6	377	859	-90.0%
Cash and equivalents	1,469	1,222	370	+20.2%
Other assets	6,388	6,530	5,949	-2.2%
Total assets	10,383	10,546	9,635	-1.5%

10-K for the year ended 31 May 2024, filed 11 July 2024: the filing.