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Mar 31, 2022

Insperity Q1 2022 Earnings Report

Insperity's first quarter results were strong, with significant growth in WSEEs paid and revenues.

Key Takeaways

Insperity reported excellent first-quarter results, marked by a 22.6% increase in revenues to $1.6 billion and a 19.5% increase in average worksite employees (WSEEs) paid. Adjusted EPS increased by 9% to $1.99, and adjusted EBITDA rose by 14% to $118.6 million.

Average number of WSEEs paid and revenues increased by 19.5% and 22.6%, respectively.

Net income and diluted EPS were reported at $69.9 million and $1.80, respectively.

Adjusted EBITDA increased by 14% to $118.6 million.

Adjusted EPS stood at $1.99.

Total Revenue
$1.58B
Previous year: $1.29B
+22.6%
EPS
$1.99
Previous year: $1.82
+9.3%
Average WSEEs Paid
278.66K
Previous year: 233.17K
+19.5%
Gross Profit
$286M
Previous year: $251M
+13.7%
Cash and Equivalents
$577M
Previous year: $495M
+16.5%
Free Cash Flow
$54.2M
Previous year: -$10.1M
-636.2%
Total Assets
$1.94B
Previous year: $1.77B
+9.7%

Insperity

Insperity

Forward Guidance

Insperity provided updated guidance for Q2 2022 and full year 2022. Q2 2022 average WSEEs paid are expected to be between 287,100 and 289,500, with adjusted EPS between $0.88 and $1.12. Full year 2022 average WSEEs paid are expected to be between 289,600 and 294,700, with adjusted EPS between $4.31 and $5.09.

Positive Outlook

  • Q2 2022 average WSEEs paid are expected to increase 18.0%-19.0% year-over-year.
  • Full year 2022 average WSEEs paid are expected to increase 15.5%-17.5% year-over-year.
  • Full year 2022 Adjusted EBITDA is expected to increase 12%-28%.
  • Full year 2022 Adjusted EPS is expected to increase 9%-29%.
  • Q2 2022 Adjusted EBITDA is expected to increase 0%-21%.

Challenges Ahead

  • Q2 2022 Adjusted EPS is expected to decrease (3)% - increase 23% year-over-year.
  • Net income for Q2 2022 is guided to be $23-$32 million.
  • Net income for full year 2022 is guided to be $132-$162 million.
  • EBITDA for Q2 2022 is guided to be $45-$58 million.
  • EBITDA for full year 2022 is guided to be $237-$279 million.