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Dec 31, 2022

CBIZ Q4 2022 Earnings Report

CBIZ reported a revenue increase of 21.5% and same-unit revenue up 10.1% for the fourth quarter of 2022.

Key Takeaways

CBIZ, Inc. announced fourth-quarter and full-year results for the period ended December 31, 2022, with revenue reaching $295.0 million, a 21.5% increase compared to the same period in 2021. Same-unit revenue increased by 10.1%. Loss from continuing operations was $11.5 million, and adjusted loss from continuing operations was $0.21 per diluted share.

Total revenue increased by 21.5% with same-unit revenue up 10.1% in Q4 2022.

Acquired operations contributed 11.4% to the fourth-quarter revenue growth.

Loss from continuing operations was $11.5 million in Q4 2022.

The company expects revenue to grow within a range of 8% to 10% over the prior year in 2023.

Total Revenue
$295M
Previous year: $243M
+21.5%
EPS
-$0.21
Previous year: -$0.19
+10.5%
Gross Profit
-$7.52M
Previous year: -$3.57M
+110.3%
Cash and Equivalents
$4.7M
Previous year: $2M
+135.2%
Free Cash Flow
$63.5M
Previous year: $47.7M
+33.1%
Total Assets
$1.88B
Previous year: $1.63B
+15.4%

CBIZ

CBIZ

CBIZ Revenue by Segment

Forward Guidance

The Company expects revenue to grow within a range of 8% to 10% over the prior year. The Company expects GAAP fully diluted earnings per share from continuing operations 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. The Company expects Adjusted fully diluted earnings per share from continuing operations 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.

Positive Outlook

  • Revenue to grow within a range of 8% to 10% over the prior year.
  • GAAP fully diluted earnings per share from continuing operations 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 from continuing operations 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.
  • Effective tax rate of approximately 28%.
  • Weighted average fully diluted share count of approximately 51.0 to 51.5 million shares.

Challenges Ahead

  • Economic uncertainties ahead
  • Increased effective tax rate, up from 25.5% in 2022, will impact diluted earnings per share by approximately $0.08.
  • Loss from continuing operations was $11.5 million in the 2022 fourth quarter
  • Adjusted EBITDA for the fourth quarter was a loss of $4.4 million
  • Adjusted loss from continuing operations was $10.7 million, or $0.21 per diluted share

Revenue & Expenses

Visualization of income flow from segment revenue to net income