Automatic Data Processing, Inc. (ADP) is a leading global technology company providing comprehensive cloud-based human capital management (HCM) solutions. These solutions unite HR, payroll, talent, time, tax, and benefits administration. Founded in 1949, ADP has transformed HCM from an administrative function to a strategic business advantage. The company serves over 1.1 million clients and pays over 42 million workers in over 140 countries and territories. ADP's common stock is listed on the NASDAQ Global Select Market under the symbol "ADP".

ADP operates through three pillars:

• U.S. HCM Solutions: Provides cloud-based HCM software and expertise to employers of all sizes in the United States.
• U.S. HR Outsourcing (HRO) Solutions: Offers comprehensive HRO solutions, managing HR administration, payroll, talent management, benefits, and other related functions.
• Global Solutions: Offers international HCM and HRO solutions, both local and cloud-based, to clients worldwide.

ADP's strategic priorities include leading with best-in-class HCM technology, providing unmatched expertise and outsourcing solutions, and benefiting clients with global scale. The company leverages data and AI to deliver innovative solutions, including ADP Assist and Roll by ADP.

ADP operates in a highly competitive market, competing with other business outsourcing companies, ERP providers, cloud-based HCM solution providers, and financial institutions. The company differentiates itself through its technology, data insights, and service excellence.

• Employees: 64,000 (as of June 30, 2024)
• Geographic Footprint: 140+ countries and territories
• Headquarters: Roseland, New Jersey
• Founded: 1949
• Number of locations/facilities: 18 (6 owned, 12 leased)
• Revenue: $19.2 billion (FY2024)
• Market Cap: $95.6 billion (as of August 2, 2024)
• Key Subsidiaries/Brands: ADP TotalSource, Wisely, Roll by ADP, ADP DataCloud, ADP GlobalView, ADP Celergo/Streamline, ADP iHCM, StandOut

• CEO: Maria Black (since January 2023)
• CFO: Don McGuire (since October 2021)
• COO: John Ayala (since January 2022)
• CHRO: Paul Boland (since June 2023)
• Board Chair: Not specified in filing
• Other Key Executives: Michael A. Bonarti (Chief Administrative Officer), Chris D'Ambrosio (Chief Strategy Officer), Joe DeSilva (President, Global Sales), Sreeni Kutam (President, Global Product and Innovation), David Kwon (Chief Legal Officer/General Counsel), Jonathan Lehberger (Corporate Controller and Principal Accounting Officer)

• Annual Revenue: $19.2 billion (FY2024)
• Net Income: $3.8 billion (FY2024)
• Market Cap: $95.6 billion (as of August 2, 2024)
• Total Assets: $54.4 billion (FY2024)
• Key Financial Highlights (FY2024):
  • Revenue growth: 7%
  • Diluted EPS growth: 11%
  • Adjusted diluted EPS growth: 12%
  • Cash returned to shareholders: $3.4 billion

ADP offers a wide range of HCM solutions, categorized by delivery platform and target market:

• Strategic Cloud-Based Platforms:
  • RUN Powered by ADP: For small businesses.
  • ADP Workforce Now: For mid-sized and large businesses.
  • ADP Vantage HCM and Next-Gen HCM: For large enterprises.
• Key Service Offerings:
  • Payroll Services
  • Benefits Administration
  • Talent Management
  • Workforce Management
  • Compliance Solutions (including ADP SmartCompliance)
  • Insurance Services
  • Retirement Services
  • HRO Solutions (including ADP TotalSource and ADP Comprehensive Services)
  • Global Solutions (including ADP Global Payroll, ADP GlobalView, ADP Celergo/Streamline, and ADP iHCM)

ADP has two reportable segments:

• Employer Services (ES): Serves clients ranging from small businesses to large enterprises with a comprehensive range of HCM solutions, including cloud-based platforms and HRO solutions (excluding PEO). Revenue: $12.98 billion (FY2024)
• Professional Employer Organization (PEO) Services: Provides comprehensive employment administration outsourcing through ADP TotalSource, co-employing worksite employees with clients. Revenue: $6.23 billion (FY2024)

ADP's business strategy focuses on three key priorities:

• Lead with Best-in-Class HCM Technology: Designing and developing world-class HCM platforms that simplify work and utilize technologies like AI and modern cloud architecture.
• Provide Unmatched Expertise and Outsourcing Solutions: Offering expertise in HR trends, best practices, and employment legislation, along with providing HRO solutions.
• Benefit our Clients with our Global Scale: Leveraging global footprint and scale to enhance client experience and expand reach.

Key initiatives include leveraging data and AI, expanding global footprint, and building partnerships to enhance client experience and offer seamless integrations.

ADP operates in a highly competitive HCM industry. Competitors include other business outsourcing companies, ERP providers, cloud-based HCM solution providers, and financial institutions. ADP is considered a leader in the industry.

• Legal and Compliance Risks: Failure to comply with evolving laws and regulations, including data privacy, cybersecurity, and employment laws, could lead to penalties, legal action, and reputational damage.
• Security and Technology Risks: Cybersecurity attacks and system disruptions could compromise data, disrupt operations, and damage reputation.
• Business and Industry Risks: Rapid technological change requires continuous investment and adaptation to maintain competitiveness.
• Client and Client Contract Risks: Dependence on client payments and potential non-payment by PEO clients pose financial risks.