PEO revenue rose 16% at ADP (NASD: ADP) in the company’s 2016 fiscal third quarter ended March 31. Average worksite employees paid by PEO services rose 14% for the quarter to approximately 422,000.

The PEO services segment’s margin increased approximately 50 basis points over last year’s third quarter, primarily driven by sales and operational efficiencies, according to the company.

Roseland, NJ-based ADP provides other services, including paycheck processing. Total revenue rose 7% — up 9% on a constant dollar basis — to $3.2 billion.

Quote

“We are seeing continued traction for our technology solutions and our robust service offerings, as a growing number of clients adopt new applications or chose our higher-touch HR outsourcing models,” said President and CEO Carlos Rodriguez. “While sales of additional human capital management modules that assist with the Affordable Care Act, or ACA, compliance continue to boost our performance, we are especially pleased to have seen balanced contributions to growth from across our HCM portfolio.”

Guidance

ADP now forecasts PEO services revenue to rise approximately 17% in its 2016 fiscal year as compared to its prior forecast of 16% to 18%.

Share price and market cap

Shares in ADP edged down 0.24% in early afternoon trading today to $89.90. The company had a market cap of $41.12 billion, according to Yahoo!