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CBIZ
🇺🇸 NYSE:CBZ
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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%.

Total Revenue
$399M
Previous year: $362M
+10.1%
EPS
$0.55
Previous year: $0.63
-12.7%
Gross Profit
$54.5M
Previous year: $72.2M
-24.5%
Cash and Equivalents
$3.69M
Previous year: $3.88M
-4.9%
Free Cash Flow
$66.1M
Previous year: $76.6M
-13.7%
Total Assets
$2.09B
Previous year: $1.97B
+5.9%

CBIZ

CBIZ

CBIZ Revenue by Segment

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

Company Overview

Full financial data and analysis

View CBIZ