Sep 30, 2022

CBIZ Q3 2022 Earnings Report

CBIZ reported revenue increase of 28.5% and EPS increase of 29.3% for the third quarter of 2022.

Key Takeaways

CBIZ, Inc. announced strong third-quarter results with a 28.5% increase in total revenue and a 29.3% increase in GAAP EPS. The company also raised its full-year 2022 guidance for revenue and adjusted EPS growth.

Total revenue increased by 28.5%; same-unit revenue increased by 12.3%.

GAAP EPS increased by 29.3%; adjusted EPS increased by 24.4%.

Income from continuing operations increased by 26.6%; adjusted EBITDA increased by 23.1%.

The company increased its full-year 2022 guidance for revenue growth to 26%-28% and adjusted EPS growth to 26%-28%.

Total Revenue
$363M
Previous year: $283M
+28.5%
EPS
$0.51
Previous year: $0.41
+24.4%
Gross Profit
$57.2M
Previous year: $44.4M
+29.0%
Cash and Equivalents
$2.04M
Previous year: $2.75M
-25.8%
Free Cash Flow
$29.2M
Previous year: $11.5M
+154.5%
Total Assets
$1.9B
Previous year: $1.71B
+10.9%

CBIZ

CBIZ

CBIZ Revenue by Segment

Forward Guidance

The Company increased its revenue growth expectations to within a range of 26% to 28% over the prior year and expects Adjusted fully diluted earnings per share from continuing operations to grow within a range of 26% to 28% over the Adjusted $1.66 reported for 2021.

Positive Outlook

  • Revenue growth expectations increased to 26% - 28%.
  • GAAP EPS is expected to grow within a range of 48% to 51%.
  • Adjusted EPS is expected to grow within a range of 26% to 28%.
  • Expects an effective tax rate of approximately 25%.
  • Expects a weighted average fully diluted share count of 52.5 million to 53.0 million shares.

Challenges Ahead

  • Multiple factors may impact the tax rate.
  • Impact of COVID-19 on the Company’s business and operations and those of our clients
  • The Company’s ability to adequately manage and sustain its growth
  • The Company’s dependence on the current trend of outsourcing business services
  • The Company’s dependence on the services of its CEO and other key employees

Revenue & Expenses

Visualization of income flow from segment revenue to net income