Paychex, Inc. (NASDAQ: PAYX) reported results for fiscal year 2020 and fourth quarter. Revenue fell 7% in the fourth quarter to USD 915.1 Million. While total revenue for the fiscal year rose 7% to USD 4 Billion.
Martin Mucci, President and Chief Executive Officer, commented, “Fiscal 2020 was on track to be a solid year, reflecting growth across our business. As we began the fourth quarter, COVID-19 caused worldwide business shutdowns directly affecting small and medium-sized businesses, which impacted our business sales and financial performance. Since the end of April, we have seen sequential improvement in our key business metrics across our lines of business.
“Our performance during the COVID-19 pandemic has shown that we are truly a trusted business partner for our clients. We were well prepared to service our clients in this unprecedented environment due to our investments in technology and our online, SaaS service offerings. In less than 6 days, we transitioned over 15,000 employees to work from home in an effort to keep our employees safe and provide service continuity to help our clients navigate these uncertain times. In this changing work environment, our human capital management solutions and mobility applications have enabled our clients to function and maintain their businesses while working remotely. We created a COVID-19 Help Center to provide clients with information and tools to navigate the complexities of the Coronavirus Aid, Relief, and Economic Security Act and Families First Coronavirus Response Act, including processing over 400,000 payroll reports to accelerate and simplify the Small Business Administration loan application process and creating an online tool to lessen the complexity of the loan forgiveness program. We are very proud to have not only navigated the challenges of the last few months, but to have seen even higher client satisfaction and retention as well – a real tribute to our employees’ commitment to our clients.”
For fiscal year 2021, the company expects revenue to fall from 2-7% while net interest expenses are expected to range from USD 30 Million to USD 35 Million.