In a webcast, CEO Martin Mucci said third quarter sales rose over the prior year results for the first time in two years while the turnover of sales representatives declined. Growth from new clients remained weak, but the company was happy with results from referrals for existing customers and CPAs.
Paychex Results Keep Improving
Checks per payroll rose for the eight consecutive quarter Paychex said this week as it reported results for the third quarter ended February 29. The company also said client satisfaction results remained high while the loss of payroll clients was down 5 percent from a year ago. That came as the company reported a 4-percent rise in net income on a 7-percent increase in revenue for the most recently ended quarter.
Third-quarter net income of $135.4 million compared to $130.6 a year earlier. Revenue for the three months was $569.5 million, up from $531.3 million. The growth in revenue from human resource services continued to outstrip the increase in the payroll business. HR revenue was $170.2 million in the third quarter, a 12-percent increase from $153.2 million while payroll service revenue hit $386.5 million up 5 percent from $366.4 million.
