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Price Increases Drive Paychex Payroll

Martin Mucci, PaychexPaychex saw a 7-percent-revenue increase for the year ended May 31. Most of that came from a 14-percent rise in human resource revenue with the 2-percent increase in payroll revenue coming largely from price increases. 

CEO Martin Mucci was happy with the results, which included net income of $933.7 million for fiscal 2018, up 14-percent over $817.3 million for 2017. Revenue for the recently completed year was $3.38 billion, compared to $3.15 billion the prior year.

Payroll revenue for 2018 was $1.81 billion, compared to $1.78 billion the prior year. Human resource services revenue rose to $1.51 billion from $1.32 billion.

Mucci noted during the company’s recent earnings webcast that Paychex had moved what he termed “micro” sales to inside sales. “We started below what we expected,” he said. But as the workers gained experience, sales momentum built in the second half.

                                                                                          

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