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Dec 31, 2024
BBSI Q4 2024 Earnings Report
BBSI reported strong financial results for the fourth quarter and full year ended December 31, 2024, with significant growth in revenues, net income, and gross billings.
Key Takeaways
BBSI achieved a strong fourth quarter in 2024, with revenues increasing 10% to $304.8 million and net income rising 15% to $16.8 million, or $0.63 per diluted share. This performance was driven by record worksite employee additions, high client retention, and a successful year-end selling season for their healthcare offering.
Fourth quarter revenues increased 10% to $304.8 million compared to $276.7 million in the prior year.
Net income for the fourth quarter increased 15% to $16.8 million, or $0.63 per diluted share, up from $14.6 million, or $0.54 per diluted share, in the year-ago quarter.
Total gross billings for the fourth quarter grew 10% to $2.25 billion, primarily due to increased worksite employees from new clients and higher average billings per WSE.
Workers' compensation expense as a percent of gross billings improved to 2.3% in Q4 2024, benefiting from lower costs and favorable prior year liability adjustments.
Revenue by Segment
Forward Guidance
For 2025, BBSI anticipates continued growth in gross billings and average worksite employees, alongside a stable gross margin and effective annual tax rate.
Positive Outlook
- Gross billings growth expected to be between 7% and 9%.
- Growth in the average number of WSEs projected to be between 4% and 6%.
- Gross margin as a percent of gross billings expected to be between 2.85% and 3.10%.
- Effective annual tax rate anticipated to remain stable at 26% to 27%.
- Strong momentum from Q4 2024 continued into January, positioning the company well for future growth.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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