Paychex faces risks from changes in interest rates impacting AFS securities' fair value and potential credit losses on client receivables. Fluctuations in health insurance and workers' compensation claims reserves are also a concern. The company's reliance on third-party service providers and potential cyberattacks pose additional risks. Macroeconomic factors affecting small and medium-sized businesses could negatively impact revenue. Changes in government regulations and litigation outcomes also present risks.

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Paychex's revenue increased 2% in Q1 2024, driven by growth in Management Solutions and PEO/Insurance Solutions. Higher interest rates and investment balances boosted interest income. The company's strong cash position ($1.6 billion) and available credit lines ($2.0 billion) support operations and potential investments. Continued investment in technology and client services is expected to drive future growth.

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