Mission Statement, Vision, & Core Values (2024) of Automatic Data Processing, Inc. (ADP).

An Overview of Automatic Data Processing, Inc. (ADP)

General Summary of Automatic Data Processing, Inc. (ADP)

Automatic Data Processing, Inc. (ADP) was founded in 1949 and is headquartered in Roseland, New Jersey. The company is a global leader in providing cloud-based Human Capital Management (HCM) solutions, offering a comprehensive suite of services that includes payroll, talent management, tax and compliance, and benefits administration. As of 2024, ADP serves over 1 million clients worldwide, ranging from small businesses to large enterprises.

In 2024, ADP reported total revenues of $4,832.7 million for the three months ended September 30, marking a 7% year-over-year growth compared to $4,512.4 million in the same period of 2023. The growth is attributed to strong client retention, new business bookings, and an increase in pricing. ADP’s pays per control metric, which measures the number of employees on ADP clients' payrolls, grew by 2% during this period, while average worksite employees in the Professional Employer Organization (PEO) segment increased by 3%.

Company's Financial Performance in the Latest Financial Reports

For the three months ended September 30, 2024, ADP achieved significant financial milestones:

• Total Revenues: $4,832.7 million
• Year-over-Year Growth: 7%
• Earnings Before Income Taxes (EBIT): $1,236.2 million, up 13% from $1,092.8 million in 2023
• Diluted Earnings Per Share (EPS): $2.34, a 13% increase from $2.08 in 2023
• Adjusted EBIT Margin: 25.5%, up 130 bps from the previous year

ADP's revenue growth was driven by its Employer Services segment, which generated $3,261.0 million in revenue, reflecting a 7% increase year-over-year. The PEO Services segment also saw a revenue increase to $1,574.5 million, up 7% from $1,469.6 million in the prior year. The company reported cash returned to shareholders of $940 million through dividends and share repurchases during this period.

Introduction to ADP as a Leader in the Industry

ADP is recognized as a leader in the Human Capital Management industry, leveraging its extensive experience and innovative solutions to support businesses in managing their workforce effectively. With a commitment to excellence, ADP focuses on enhancing its product offerings, including the recent acquisition of WorkForce Software for approximately $1.2 billion, which will strengthen its capabilities in workforce management solutions.

ADP's strategic priorities emphasize best-in-class technology, unmatched expertise, and global scale. The company's robust financial performance, consistent revenue growth, and dedication to shareholder value position it as a formidable competitor in the HCM market. For more detailed insights into ADP's operations and growth strategy, further exploration is encouraged.

Mission Statement of Automatic Data Processing, Inc. (ADP)

Overview of ADP's Mission Statement

The mission statement of Automatic Data Processing, Inc. (ADP) is pivotal in shaping the company's strategic direction and long-term goals. It emphasizes ADP's commitment to delivering high-quality products and services that enhance business performance for its clients. By focusing on innovation and client satisfaction, ADP aims to position itself as a leader in the Human Capital Management (HCM) space.

Core Component 1: Client Commitment

ADP's mission underscores its unwavering commitment to clients. This includes providing tailored solutions that meet the specific needs of businesses, regardless of their size. In the three months ended September 30, 2024, ADP reported revenues of $4,832.7 million, representing a 7% increase from the previous year, driven by strong client retention and new business bookings.

Moreover, the company has shown a consistent increase in pays per control, which rose by 2% in the same period, indicating effective service delivery and client satisfaction.

Core Component 2: Innovation and Technology

Innovation is a cornerstone of ADP's mission, as the company leverages advanced technologies to enhance its product offerings. ADP has invested significantly in research and development, allocating approximately $232.6 million in the quarter ending September 30, 2024. This investment has led to the integration of new technologies, including artificial intelligence, into their services, ensuring they remain competitive in a rapidly evolving market.

ADP’s acquisition of WorkForce Software for approximately $1.2 billion in cash is a testament to its commitment to expanding its technological capabilities and enhancing its service offerings.

Core Component 3: Employee Engagement

ADP recognizes that its employees are crucial to achieving its mission. The company fosters an inclusive and engaging work environment, which is reflected in its operational performance. For the fiscal quarter ended September 30, 2024, ADP reported net earnings of $956.3 million, an 11% increase year-over-year. This growth can be attributed to the dedication and efficiency of its workforce, supported by ongoing training and development initiatives.

Furthermore, the company's focus on employee engagement is evident through its stock repurchase program, which returned $940 million to shareholders, including $570 million in dividends and $370 million in share repurchases. This reflects ADP's commitment to rewarding its employees and aligning their interests with those of shareholders.

Vision Statement of Automatic Data Processing, Inc. (ADP)

Vision Statement Overview

The vision statement of Automatic Data Processing, Inc. (ADP) emphasizes the commitment to providing innovative Human Capital Management (HCM) solutions that enable businesses to thrive in a dynamic environment. The company aims to lead in technology, expertise, and global reach to enhance client success.

Innovation in HCM Technology

ADP's vision underscores its dedication to continuous innovation in HCM technology, focusing on integrating advanced solutions such as artificial intelligence and automation. In fiscal 2024, ADP launched ADP Lyric HCM, a flexible and intelligent global HCM platform designed to adapt to various business structures.

Expertise and Client Support

ADP aims to leverage its unmatched expertise to provide comprehensive support to clients. The company continues to focus on client retention and satisfaction, which is reflected in its 7% revenue growth in Q1 of 2024, totaling $4.83 billion, driven by strong client relationships and service offerings.

Global Scale and Reach

ADP’s vision includes utilizing its global scale to offer tailored solutions that meet diverse client needs. As of September 30, 2024, ADP reported an increase in its pays per control metric by 2%, indicating a growing client base. The company serves over 1 million clients globally, showcasing its expansive reach.

Financial Performance Metrics

ADP's strong financial performance in 2024 reinforces its vision of sustainable growth. Key metrics for the three months ended September 30, 2024, include:

Conclusion of Vision Statement Analysis

ADP's vision for 2024 encapsulates a forward-thinking approach, characterized by innovative technology, expert client support, and a robust global presence. The company's strategic initiatives and financial performance align with its mission to empower businesses through comprehensive HCM solutions.

Core Values of Automatic Data Processing, Inc. (ADP)

Core Value: Integrity

The core value of Integrity at Automatic Data Processing, Inc. (ADP) emphasizes transparency, honesty, and accountability in all business dealings.

ADP demonstrates its commitment to integrity through its robust compliance and ethics programs, ensuring that all employees adhere to ethical standards. In fiscal 2024, ADP maintained a compliance training completion rate of over 95% across its global workforce.

Core Value: Innovation

Innovation is critical to ADP's mission of providing cutting-edge human capital management solutions. The company invests heavily in research and development, allocating approximately $232.6 million in R&D for the three months ended September 30, 2024, a slight decrease from $236.5 million in the same period the previous year.

ADP introduced the ADP Lyric HCM platform in September 2024, integrating generative AI capabilities to enhance client interactions and streamline operations.

Core Value: Client-Centricity

ADP's focus on Client-Centricity ensures that the needs and satisfaction of clients are prioritized. The company reported a strong client retention rate of 92% and an increase in average worksite employees of 3% year-over-year for its Professional Employer Organization (PEO) services.

Furthermore, the company's revenue from Employer Services reached $3,261 million for the three months ended September 30, 2024, up from $3,046.4 million in the prior year, highlighting its commitment to delivering value to clients.

Core Value: Inclusiveness

Inclusiveness at ADP fosters a diverse workplace that encourages collaboration and respect among employees. The company has implemented various initiatives aimed at enhancing workplace diversity, including training programs and employee resource groups.

In 2024, ADP reported that 50% of its new hires were from underrepresented groups, demonstrating its ongoing commitment to building a diverse workforce.

Core Value: Excellence

ADP strives for Excellence in service delivery and operational performance. The company's earnings before income taxes for the three months ended September 30, 2024, were $1,236.2 million, reflecting a 13% increase from $1,092.8 million in the same period of 2023. This growth underscores ADP's dedication to maintaining high standards in its operations.

Additionally, the company achieved a diluted earnings per share (EPS) of $2.34 for the quarter, marking a 13% increase compared to $2.08 the previous year, further showcasing its excellence in financial performance.

Article updated on 8 Nov 2024

Resources:

• Automatic Data Processing, Inc. (ADP) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Automatic Data Processing, Inc. (ADP)' financial performance, including balance sheets, income statements, and cash flow statements.
• SEC Filings – View Automatic Data Processing, Inc. (ADP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.