Human capital management provider Paychex (NASDAQ: PAYX) released buoyant fiscal first-quarter 2020 results on Wednesday, and added to stock gains that have now reached 26% year to date. Investors were pleased with the balance between the company's acquired revenue boost (via the acquisition of Oasis Outsourcing in December 2018) and brisk organic revenue growth.
In Paychex's earnings conference call, management discussed several innovations it intends to use to keep core management services customers -- its bread-and-butter payroll and human resource clientele -- engaged. Below, let's look briefly at three innovations mentioned by CEO Martin Mucci on Wednesday's call, and their potential impacts on the business.
We are excited to be introducing pay-on-demand and real-time payments. By the end of calendar year 2019, Paychex clients can allow employees to access a portion of [their earned] pay before the scheduled check date. With many Americans living paycheck to paycheck, this advancement in technology allows financial flexibility when needed.