Skip to Main Content

About Automatic Data Processing, Inc.

Automatic Data Processing (ADP) is one of the largest payroll and tax filing processors in the world, serving over 860,000 clients. Employer services (payroll processing, tax and benefits administration services) account for the majority of the company's sales, and its PEO (Professional Employer Organization) services are provided through ADP TotalSource. Other offerings include accounting, auto collision estimates for insurers, employment background checks, and business development training services. The US accounts for more than 85% of the company's revenue.

Operations

ADP operates two business segments, Employer Services, accounting for nearly 70% of total revenue, and Professional Employer Organization (PEO) Services, which brings in over 30% of revenue.

Employer Services offers a range of business outsourcing and HCM (Human Capital Management) services in more than 140 countries. Products and services offered to employers include payroll and tax management systems tailored to small to medium-size business and large enterprises. Certain offerings, including multi-currency payroll systems, cater to companies that operate internationally. Beyond payroll and tax products, ADP provides systems for time and attendance management, 401(K) and other retirement services, recruiting, and HR and tax compliance.

PEO Services provides employment administration outsourcing services through a co-employment relationship in which employees who work at a client's location are co-employed by ADP and its client. The segment operates as ADP TotalSource.

Geographic Reach

Headquartered in Roseland, New Jersey, ADP provides its payroll, tax compliance, and other employer services in more than 140 countries. PEO Services, however, operates exclusively in the US.

The US is ADP's biggest market, accounting for more than 85% of total revenue. Sales in Europe account for about 10%, while Canada accounts for less than 5%.

Sales and Marketing

ADP serves more than 860,000 clients. The company markets its solutions primarily through its direct sales force. The company also markets HCM Solutions, Global Solutions and HRO Solutions (other than PEO) through indirect sales channels, such as marketing relationships with certified public accountants and banks, among others. None of the company's major business units has a single homogeneous client base or market.

Financial Performance

ADP has achieved unprecedented growth over the last several years, with revenue trending up each year during the five-year period between 2016 and 2020.

In fiscal 2020 revenue climbed 2% to $14.6 billion from $14.1 billion the previous year. The revenue growth was due to new business started from New Business Bookings, partially offset by business losses and a decrease in interest earned on funds held for clients.

Profits rose 8% from $2.3 billion in 2019 to $2.5 billion in 2020.

Cash at the end of the fiscal year sat at $7.1 billion, $257.4 million more than at the end of fiscal 2019. Cash from operations added $3 billion, investing activities generated $3.2 billion and financing used $5.9 billion.

Strategy

ADP's business strategy is based on three strategic pillars, which are designed to position it as the global market leader in HCM technology and services:

Grow a complete suite of cloud-based HCM solutions (HCM Solutions). ADP develops cloud-based software and offer comprehensive solutions that assist employers of all types and sizes in managing the entire worker spectrum and employment cycle — from full-time to freelancer and from hire to retire.

Grow and scale its market-leading HR Outsourcing solutions (HRO Solutions). The company offers comprehensive HRO solutions in which it provides complete management solutions for HR administration, payroll administration, talent management, employee benefits, benefits administration, employer liability management, and other HCM and employee benefits functions.

Leverage the company's global presence to offer clients HCM solutions wherever it does business (Global Solutions). ADP is expanding its international HCM and HRO businesses, comprised of its established local, in-country software solutions and its market-leading, cloud-based multi-country solutions.

Company Background

In 1949, 22-year-old Henry Taub started Automatic Payrolls, a manual payroll preparation service in Paterson, New Jersey. Taub's eight accounts created gross revenue of around $2,000 that year. In 1952 his brother Joe joined the company, and a childhood friend, Frank Lautenberg, took a pay cut to become its first salesman. Automatic Payrolls grew steadily during the 1950s. In 1961 the company went public and changed its name to Automatic Data Processing (ADP).

Automatic Data Processing, Inc.

1 ADP Blvd Ste 1 # 1
Roseland, NJ 07068-1728
Phone: 1 (973) 974-5000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: ADP
Stock Exchange: , NASDAQ
Chairman: John P. Jones
President and CEO: Carlos A. Rodriguez
VP and CFO: Jan Siegmund
Employees (This Location): 1,500
Employees (All Locations): 58,000

Major Office Locations

Roseland, NJ

Other Locations

Little Rock, AR
Chandler, AZ
Tucson, AZ
Buena Park, CA
Camarillo, CA
Folsom, CA
Fresno, CA
Irvine, CA
La Palma, CA
Los Angeles, CA
Milpitas, CA
Pleasanton, CA
Rancho Cucamonga, CA
Redwood City, CA
San Diego, CA
San Dimas, CA
San Francisco, CA
Woodland Hills, CA
Aurora, CO
Fort Collins, CO
Wheat Ridge, CO
Milford, CT
Stamford, CT
Windsor, CT
Fort Lauderdale, FL
Jacksonville, FL
Lakewood Ranch, FL
Maitland, FL
Miramar, FL
Orlando, FL
Riverview, FL
West Palm Beach, FL
Alpharetta, GA
Atlanta, GA
Augusta, GA
Honolulu, HI
West Des Moines, IA
Algonquin, IL
Carol Stream, IL
Chicago, IL
Crystal Lake, IL
Elk Grove Village, IL
Schaumburg, IL
Fort Wayne, IN
Indianapolis, IN
Mishawaka, IN
Lenexa, KS
Wichita, KS
Florence, KY
Louisville, KY
Baton Rouge, LA
Lexington, MA
Marlborough, MA
Natick, MA
Waltham, MA
Owings Mills, MD
Rockville, MD
Ann Arbor, MI
Troy, MI
Bloomington, MN
Saint Louis, MO
Charlotte, NC
Durham, NC
Raleigh, NC
Omaha, NE
Hampton, NH
Manchester, NH
Salem, NH
Bloomfield, NJ
Clifton, NJ
Florham Park, NJ
Manasquan, NJ
Monroe Township, NJ
Moorestown, NJ
Nutley, NJ
Parsippany, NJ
Roseland, NJ
Albuquerque, NM
Las Vegas, NV
Bayside, NY
Binghamton, NY
Brentwood, NY
Buffalo, NY
Latham, NY
Melville, NY
New York, NY
Poughkeepsie, NY
Rochester, NY
Staten Island, NY
Syracuse, NY
Independence, OH
Westerville, OH
Tulsa, OK
Portland, OR
Salem, OR
Allentown, PA
Coraopolis, PA
Export, PA
Fort Washington, PA
Mechanicsburg, PA
Newtown, PA
Philadelphia, PA
Pittsburgh, PA
Wayne, PA
San Juan, PR
Coventry, RI
Warwick, RI
Columbia, SC
Florence, SC
Greenville, SC
Mount Pleasant, SC
Sioux Falls, SD
Knoxville, TN
Memphis, TN
Nashville, TN
Arlington, TX
Austin, TX
Dallas, TX
El Paso, TX
Houston, TX
San Antonio, TX
Salt Lake City, UT
South Jordan, UT
Chantilly, VA
Richmond, VA
Virginia Beach, VA
Bothell, WA
Lynnwood, WA
Fitchburg, WI
Milwaukee, WI
Bologna, Italy
Fiumicino, Italy
Padova, Italy
Roma, Italy
Torino, Italy
Porto Alegre, Brazil
Ribeirao Preto, Brazil
Boucherville, Canada
Burnaby, Canada
Calgary, Canada
Cumberland, Canada
Dartmouth, Canada
Dorval, Canada
Edmonton, Canada
Mississauga, Canada
Montmagny, Canada
Montréal, Canada
North York, Canada
Ottawa, Canada
Québec, Canada
Rockwood, Canada
Blagnac, France
Carquefou, France
Eybens, France
Herouville Saint Clair, France
Le Pecq, France
Limonest, France
Mont-Saint-Aignan, France
Wasquehal, France
Bremen, Germany
Nürnberg, Germany

Competitors