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Sep 30, 2023

CBIZ Q3 2023 Earnings Report

CBIZ reported a strong third quarter with revenue and EPS up.

Key Takeaways

CBIZ reported a revenue increase of 13.0% and a GAAP EPS increase of 26.4% for the third quarter of 2023. The company reaffirmed its revenue and EPS guidance for the full year.

Total revenue increased by 13.0%; same-unit revenue increased by 8.3%.

GAAP EPS increased by 26.4%; adjusted EPS increased by 29.4%.

Net income increased by 22.6%; adjusted EBITDA increased by 34.2%.

The company reaffirmed its revenue and EPS guidance for the full year.

Total Revenue
$411M
Previous year: $363M
+13.0%
EPS
$0.66
Previous year: $0.51
+29.4%
Gross Profit
$68.4M
Previous year: $57.2M
+19.5%
Cash and Equivalents
$39.6M
Previous year: $2.04M
+1843.3%
Free Cash Flow
$20.2M
Previous year: $29.2M
-30.7%
Total Assets
$2.07B
Previous year: $1.9B
+9.2%

CBIZ

CBIZ

CBIZ Revenue by Segment

Forward Guidance

The Company expects revenue to grow within a range of 10% to 12% over the prior year and 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.

Positive Outlook

  • Revenue to grow within a range of 10% to 12% over the prior year.
  • The Company expects an effective tax rate of approximately 28%.
  • Weighted average fully diluted share count of approximately 50.5 to 51.0 million shares.
  • 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 increased tax rate, up from 25.5% in 2022, will impact diluted earnings per share by approximately $0.08.

Revenue & Expenses

Visualization of income flow from segment revenue to net income