Revenue rose 9% at Paychex Inc. (NASD: PAYX) in the Rochester, NY-based company’s fiscal fourth quarter ended May 31. However, revenue rose 17% in the firm’s Human Resource Services segment, which includes the company’s professional employer organization business.

The largest revenue stream in Human Resource Services is Paychex HR Services, which includes the company’s administrative services organization and PEO. Demand for ASO and PEO services resulted in double-digit growth in the number of client worksite employees served, according to the company. In addition, Paychex acquired HR Outsourcing Holdings Inc., a PEO, in August 2017.

Full-year results

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“During fiscal 2018, we completed the acquisitions of HR Outsourcing Holdings Inc., a national professional employer organization, and Lessor Group, a market-leading provider of payroll and human resource software solutions headquartered in Denmark,” President and CEO Martin Mucci said. “The integration of these acquisitions has proceeded well. They are showing better-than-expected progress and are expected to make a positive contribution to our longer-term growth. In addition, we had a reduction in tax expense in fiscal 2018 as a result of the enactment of the Tax Cuts and Jobs Act in December 2017, the most comprehensive tax reform legislation approved in more than two decades.”

Guidance

Paychex forecast Human Resource Services revenue to be up 10% to 11% in this fiscal year compared to last, and total revenue is expected to increase in the range of 15% to 20%. The guidance reflects the adoption of Accounting Standards Codification Topic 606.

Share price and market cap

Shares in Paychex fell 2.48% to $67.29 as of 1:28 p.m. Eastern time. The company had a market cap of $24.20 billion.