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Mar 31, 2023

CBIZ Q1 2023 Earnings Report

CBIZ reported strong first-quarter results, with revenue and earnings per share up significantly compared to the same period last year.

Key Takeaways

CBIZ reported a strong first quarter in 2023, with total revenue up 16.1% and same-unit revenue up 10.0%. GAAP EPS increased by 30.9%, and net income rose by 25.9%. The acquisition of Somerset contributed to the strong results, and the company expects full-year results to be at the high end of its guidance.

Total revenue increased by 16.1%, with same-unit revenue up by 10.0%.

GAAP EPS increased by 30.9%, while adjusted EPS rose by 23.7%.

Net income increased by 25.9%, and adjusted EBITDA increased by 22.0%.

The acquisition of Somerset contributed to the strong first-quarter results.

Total Revenue
$455M
Previous year: $392M
+16.1%
EPS
$1.46
Previous year: $1.1
+32.7%
Gross Profit
$114M
Previous year: $101M
+12.0%
Cash and Equivalents
$2.27M
Previous year: $558K
+305.9%
Free Cash Flow
-$48.1M
Previous year: -$51.7M
-7.0%
Total Assets
$2.04B
Previous year: $1.94B
+4.9%

CBIZ

CBIZ

CBIZ Revenue by Segment

Forward Guidance

The Company expects revenue to grow within a range of 8% to 10% over the prior year. The Company expects GAAP fully diluted earnings per share to grow within a range of 15% to 17%, to $2.31 to $2.36 per share over the $2.01 per share reported for 2022. The Company expects Adjusted fully diluted earnings per share to grow within a range of 11% to 13%, to $2.36 to $2.41 per share over the Adjusted earnings per share of $2.13 per share reported for 2022.

Positive Outlook

  • Revenue is expected to grow within a range of 8% to 10% over the prior year.
  • GAAP fully diluted earnings per share to grow within a range of 15% to 17%, to $2.31 to $2.36 per share over the $2.01 per share reported for 2022.
  • Adjusted fully diluted earnings per share to grow within a range of 11% to 13%, to $2.36 to $2.41 per share over the Adjusted earnings per share of $2.13 per share reported for 2022.

Challenges Ahead

  • The Company expects an effective tax rate of approximately 28%.
  • The increased rate, up from 25.5% in 2022, will impact diluted earnings per share by approximately $0.08.
  • The Company expects a weighted average fully diluted share count of approximately 50.5 to 51.0 million shares.

Revenue & Expenses

Visualization of income flow from segment revenue to net income