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Jun 30, 2023
CBIZ Q2 2023 Earnings Report
CBIZ's Q2 2023 performance saw revenue increase but earnings decline due to specific market factors and increased expenses.
Key Takeaways
CBIZ reported a 10.1% increase in total revenue for the second quarter of 2023, reaching $398.5 million. However, net income decreased by 14.1% to $26.9 million, and adjusted EPS decreased by 12.7% to $0.55. The company raised its full-year revenue guidance while reaffirming its EPS guidance.
Total revenue increased by 10.1%, with same-unit revenue up by 4.1%.
Net income decreased by 14.1%, with GAAP EPS down by 11.7% and adjusted EPS down by 12.7%.
The company completed three strategic acquisitions and two tuck-in transactions expected to add approximately $68 million in annualized revenue.
Full-year revenue growth expectations were raised to a range of 10% to 12%.
CBIZ
CBIZ
CBIZ Revenue by Segment
Revenue by Segment
Financial Services Revenue
CapyFin.comBenefits and Insurance Services Revenue
CapyFin.comNational Practices Revenue
CapyFin.com Forward Guidance
CBIZ anticipates revenue growth between 10% and 12% for the full year and expects GAAP fully diluted earnings per share to grow within a range of 15% to 17%, resulting in $2.31 to $2.36 per share and adjusted fully diluted earnings per share to grow within a range of 11% to 13%, resulting in $2.36 to $2.41 per share.
Positive Outlook
- Revenue growth expectations increased to within a range of 10% to 12%.
- GAAP fully diluted earnings per share are expected to grow within a range of 15% to 17%, to $2.31 to $2.36 per share.
- Adjusted fully diluted earnings per share are expected to grow within a range of 11% to 13%, to $2.36 to $2.41 per share.
- Core businesses continued to perform well during the second quarter.
- Demand for financial services and benefits and insurance offerings remains strong.
Challenges Ahead
- An increased effective tax rate of approximately 28% is expected, impacting diluted earnings per share by approximately $0.08.
- Contract delays in the Government Health Care consulting business affected results.
- Changes to tax filing deadlines in California impacted results.
- Net income decreased by 14.1% for the quarter.
- Adjusted EBITDA decreased by 2.3% for the quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income