Page 1

ADP Always Designing for People ™ ADP Reports First Quarter Fiscal 2022 Results Revenues increased 10 % compared to last year's first quarter to $ 3.8 billion ; 10 % organic constant currency Net earnings increased 16 % to $ 701 million , and adjusted net earnings increased 16 % to $ 699 million Adjusted EBIT increased 17 % to $ 915 million , and adjusted EBIT margin increased 140 basis points to 23.9 % Diluted earnings per share ( " EPS " ) increased 18 % to $ 1.65 ; adjusted diluted EPS increased 17 % to $ 1.65 Guidance increased following strong start to fiscal year ; raising full year guidance for new business bookings , revenue retention , average worksite employees , revenue , adjusted EBIT margin , and adjusted diluted EPS ROSELAND , N.J. - October 27 , 2021 - ADP ( Nasdaq : ADP ) , a leading global technology company providing human capital management ( HCM ) solutions , today announced its first quarter fiscal 2022 financial results and updated its fiscal 2022 outlook . First Quarter Fiscal 2022 Consolidated Results Compared to last year's first quarter , revenues increased 10 % to $ 3.8 billion and 10 % on an organic constant currency basis . Net earnings increased 16 % to $ 701 million , and adjusted net earnings increased 16 % to $ 699 million . Adjusted EBIT increased 17 % to $ 915 million , representing an adjusted EBIT margin increase of 140 basis points in the quarter to 23.9 % , as higher operating revenues more than offset the effect of increased selling expenses and implementation costs . ADP's effective tax rate for the quarter was 22.2 % on both a reported basis and an adjusted basis . Diluted EPS increased 18 % to $ 1.65 , and adjusted diluted EPS increased 17 % to $ 1.65 . " This strong start to fiscal year 2022 reflects improving demand across all of our offerings as more employers partner with ADP for their HCM solutions , " said Carlos Rodriguez , President and Chief Executive Officer , ADP . " With strong outcomes in bookings , revenue retention , pays per control , and worksite employee growth , we are excited about our prospects for this fiscal year and beyond . " 1 " First quarter revenue growth and margin performance exceeded our expectations for both our Employer Services and PEO segments , and we were pleased with the very strong growth in adjusted EBIT and net earnings , " said Don McGuire , Chief Financial Officer , ADP . " Our updated guidance reflects stronger revenue growth through the rest of the year compared to our prior outlook , combined with steady profitability , as we continue investment in sales , technology , and implementation in support of sustainable long - term growth . "