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View All NewsADP reports PEO revenue up 9%; acquires global payroll management services provider
PEO revenue rose 9% at ADP (NASD: ADP) in the company’s fiscal fourth quarter ended June 30 to $976.7 million, driven primarily by an 8% increase in average worksite employees for the quarter.
| (US$ millions) | Q4 2018 | Q4 2017 | % change | % change organic constant currency |
| Revenue | $3,318.6 | $3,064.8 | 8% | 6% |
| Net earnings | $108.7 | $265.8 | -59% |
Roseland, NJ-based ADP provides other services, including paycheck processing. Total revenue rose 8% to $3.32 billion in the fourth quarter; the increase was 6% on an organic, constant currency basis.
Revenue by segment
| (US$ millions) | Q4 2018 | Q4 2017 | % change |
| PEO Services | $976.7 | $891.6 | 10% |
| Employer Services | $2,499.7 | $2,337.4 | 7% |
| Other | -$157.8 | -$164.2 | nm |
ADP also today announced the acquisition of Celergo, a provider of global payroll management services. The transaction, which closed yesterday, adds a proprietary cloud-based technology platform to ADP’s international payroll offerings. Founded in 2003 and headquartered in Chicago, Celergo provides payroll in 150 countries. The deal follows ADP’s recent acquisitions of payment card firm Global Cash Card and freelancer management system WorkMarket.
Fiscal-year results
| (US$ millions) | FY 2018 | FY 2017 | % change |
| PEO Services | $3,896.6 | $3,483.6 | 12% |
| Employer Services | $10,057.8 | $9,535.2 | 5% |
| Other | -$628.6 | -$639.0 | nm |
| Total | $13,325.8 | $12,379.8 | 8% |
Guidance
For its full 2019 fiscal year, ADP forecasts its PEO services revenue to rise 7% to 9% and average worksite employee growth of 7% to 8%.
Share price and market cap
Shares in ADP fell 1.81% to $132.55 as of 1:48 p.m. Eastern time. The company had a market cap of approximately $58.39 billion.