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Jun 30, 2024
CBIZ Q2 2024 Earnings Report
CBIZ reported mixed results for Q2 2024, with revenue up but earnings down, and announced an agreement to acquire Marcum.
Key Takeaways
CBIZ's second-quarter revenue increased by 5.4% to $420.0 million, while net income decreased by 26.3% to $19.8 million. The company experienced headwinds from the departure of a small group of producers and client delays in investment decisions. CBIZ also announced an agreement to acquire Marcum LLP for approximately $2.3 billion, expected to close in the fourth quarter.
Total revenue increased by 5.4%, with same-unit revenue up 2.8%.
GAAP EPS decreased by 26.4%, and adjusted EPS decreased by 9.1%, including Marcum acquisition-related expenses of $6.7 million.
Net income decreased by 26.3%, with adjusted EBITDA down 6.9%.
Announced an agreement to acquire Marcum LLP for approximately $2.3 billion, expected to close in the fourth quarter.
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 expects total revenue to grow within a range of 7% to 9% and adjusted fully diluted earnings per share to grow within a range of 10% to 12%. This guidance excludes the impact of the Marcum acquisition.
Positive Outlook
- Total revenue is expected to grow between 7% and 9%.
- Effective tax rate of approximately 28%.
- Weighted average fully diluted share count of approximately 50.0 to 50.5 million shares.
- GAAP fully diluted earnings per share to grow within a range of 6% to 8%, to $2.53 to $2.58 per share.
- Adjusted fully diluted earnings per share to grow within a range of 10% to 12%, to $2.64 to $2.69 per share.
Challenges Ahead
- Projected $0.06 per share full year impact of the loss of Property and Casualty business.
- Guidance excludes the impact of the Marcum acquisition.
- Uncertainty in the market is amplified in an election year given concerns around regulations and interest rates.
- Clients delaying investment decisions and tightening discretionary spending.
- Departure of a small group of producers from Property and Casualty Insurance business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income