Paychex, Inc. reported its financial results for the three months ended August 31, 2024, showcasing a solid performance with total revenue reaching $1,318.5 million, a 3% increase from $1,286.0 million in the same period of 2023. Total service revenue also rose to $1,281.0 million, up from $1,253.3 million year-over-year. The company's operating income increased to $546.7 million, compared to $536.3 million in the prior year.

Net income for the quarter was $427.4 million, slightly higher than $419.2 million reported in the previous year. Diluted earnings per share improved to $1.18 from $1.16, reflecting the company's effective management of expenses, which rose to $771.8 million from $749.7 million. The increase in expenses was attributed to higher costs in PEO direct insurance and investments in technology, sales, and marketing.

Paychex's comprehensive income for the quarter was $492.2 million, significantly up from $396.0 million in the prior year. The company declared cash dividends of $352.8 million, or $0.98 per share, compared to $321.4 million, or $0.89 per share, in the same quarter last year.

As of August 31, 2024, total assets increased to $10,489.1 million from $10,383.1 million at the end of the previous fiscal period. Current assets also rose to $7,361.4 million, with accounts receivable net of allowance for credit losses increasing to $1,126.2 million. Funds held for clients grew to $3,763.2 million, up from $3,706.2 million.

The company completed the acquisition of Alterna Capital Solutions LLC on July 31, 2023, for a total consideration of $95.1 million, which included the settlement of $128.9 million in debt. This acquisition is expected to enhance Paychex's service offerings and client base.

In terms of cash flow, net cash provided by operating activities was $546.1 million, down from $693.0 million in the prior year, while net cash used in investing activities increased to $(110.0) million from $(13.2) million. The company reported a net change in cash, restricted cash, and equivalents of $(48.9) million, contrasting sharply with a positive change of $1,749.2 million in the same quarter last year.

Overall, Paychex continues to focus on strategic growth through acquisitions and investments in technology, while maintaining strong financial health and shareholder returns.