Revenue rose 9% at Paychex Inc. (NASD: PAYX) in its fiscal first quarter ended Aug. 31. However, revenue jumped 39% in the Rochester, NY-based firm’s professional employer organization and insurance services segment.

PEO and insurance services revenue growth was primarily driven by increases in clients and in double-digit growth in the number of client worksite employees across Paychex’s PEO business. Paychex’s acquisition of HR Outsourcing Holdings Inc. in August 2017 contributed approximately 20% to the growth in total PEO and insurance services revenue for the first quarter.

Paychex also changed how it reports revenue. Its “management solutions revenue” includes its payroll processing and payroll-related services as well as time and attendance solutions and its administrative services organization offering. Its “PEO and insurance services revenue” includes PEO businesses such as Paychex Business Solutions LLC and HR Outsourcing Holdings Inc. as well as revenue from its insurance agency.

Guidance

Paychex forecast PEO and insurance services revenue to be up 18% to 20% in this fiscal year compared to last.  

Share price and market cap

Shares in Paychex rose 2.44% to $75.52 as of 1:17 p.m. Eastern time. The company had a market cap of $26.98 billion.