Paychex Inc. announced that its total service revenue for the three months ended Nov. 30 hit $760 million, up 7 percent from the same period the year before.
The payroll provider’s net income also increased 7 percent over its second quarter, to $202.1 million, and its diluted earnings per share rose 8 percent, to 56 cents a share.
Payroll services accounted for $440.9 million of Paychex’s Q2 revenue, up 3 percent from the previous year. A larger client base and revenue per check accounted for most of that growth, and the company noted that revenue per check was up because of price increases.
Human resource services made up the remaining $319.1 million in Q2 revenue, up 12 percent from the previous year. Growth in its client base drove the increase in this area, which includes outsourced HR services, retirement services, time and attendance, and HR administration.
“During the second quarter, we continued to achieve growth across all of our major human capital management product lines, and reached a new milestone of 1 million worksite employees served by our Paychex HR Services,” company president and CEO Martin Mucci said in a statement.
Daniel Hood is editor-in-chief of Accounting Today and Tax Pro Today, and has covered the tax and accounting field for over 20 years.