Name: Automatic Data Processing Inc. (NASDAQ:ADP) | Analysis of Revenues
Creator: Stock Analysis on Net

Analysis of Revenues

Revenues as Reported

Revenues as Reported

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Automatic Data Processing Inc., income statement, revenues

US$ in thousands

12 months ended:	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019	Jun 30, 2018	Jun 30, 2017	Jun 30, 2016
Employer Services	10,195,200)	10,086,600)	9,942,800)	10,057,800)	9,535,200)	9,211,900)
PEO Services	4,818,300)	4,511,500)	4,242,700)	3,896,600)	3,483,600)	3,073,100)
Other	(8,100)	(8,300)	(10,300)	(9,400)	(10,600)	1,900)
Client Fund Interest	—)	—)	—)	(619,200)	(628,400)	(619,100)
Reconciling Items	—)	—)	—)	(619,200)	(628,400)	(619,100)
Revenues from continuing operations	15,005,400)	14,589,800)	14,175,200)	13,325,800)	12,379,800)	11,667,800)

Based on: 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30).

Total revenues from continuing operations exhibit a consistent upward trajectory over the analyzed five-year period, increasing from US$ 11.67 billion in 2016 to US$ 15.01 billion in 2021. This represents a steady growth pattern characterized by a compound increase in total top-line performance.

Employer Services Revenue: Employer Services remains the primary contributor to total revenue. A general growth trend is observed, rising from US$ 9.21 billion in 2016 to US$ 10.20 billion in 2021. While the growth is consistent, the rate of increase is more moderate compared to other business segments, with a slight plateau observed between 2019 and 2020.
PEO Services Revenue: PEO Services demonstrate the most aggressive growth profile among the reported segments. Revenue increased from US$ 3.07 billion in 2016 to US$ 4.82 billion in 2021. This significant expansion indicates that PEO Services have become an increasingly vital driver of overall revenue growth, exhibiting a strong and uninterrupted year-over-year upward trend.
Reporting and Reconciling Items: A notable shift in financial reporting is observed regarding Client Fund Interest and Reconciling Items. These items appeared as negative offsets between 2016 and 2018, ranging from approximately US$ 619 million to US$ 628 million. Starting in 2019, these entries are no longer present in the revenue from continuing operations calculations, suggesting a change in accounting classification or reporting structure.
Other Revenue Streams: The "Other" category maintains a negligible impact on the overall financial results. Values remain consistently low and predominantly negative throughout the period, fluctuating between US$ 1.9 million and negative US$ 10.6 million, and do not materially influence the total revenue trend.

The overall revenue growth is primarily sustained by the robust expansion of PEO Services, which complements the stable performance of Employer Services. The transition in the reporting of reconciling items after 2018 further contributes to the increase in the reported revenues from continuing operations.

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