Paychex Inc. (NASD: PAYX), a provider of payroll services and PEO services, reported revenue rose 7% to $740.7 million in its fiscal third quarter ended Feb. 29.

PEO revenue is included in Paychex’s human resource services segment, which increased 12% to $301.1 million in the third quarter.

Net income at the firm rose 7% to $180.4 million.

“During our third quarter, we continued to experience growth across the span of our human capital management solutions,” said President and CEO Martin Mucci. “We are pleased with execution during our selling season, in particular in the mid-market space. Our service delivery remains strong with consistently high levels of client retention. Double-digit growth in worksite employees served through our comprehensive human resource outsourcing services reflects continued strong demand for these offerings. In addition, revenue from our Affordable Care Act compliance solutions continues to increase as we assist clients with their monitoring and year-end reporting requirements.”

Paychex in December acquired Advance Partners, a large payroll funding and outsourcing services provider to the US temporary staffing industry.

“We believe this is an ideal fit for Paychex, as the temporary staffing industry has experienced expanded growth, and clients are within our targeted market of small- and mid-sized businesses,” Mucci said. “The financial results of Advance Partners since the date of acquisition contributed approximately 1% to service revenue growth for the third quarter.”

Paychex shares fell 2.79% to $52.97 in early afternoon trading today and the company had a market cap of $19.12 billion, according to Yahoo!