Insperity Q3 2023 Earnings Report
Key Takeaways
Insperity reported strong Q3 2023 results, with revenues up 7.8% to $1.6 billion and a 4.0% increase in average worksite employees (WSEEs) paid. Net income rose by 18% to $44.3 million, and adjusted EPS increased by 18.7% to $1.46. The company also updated its 2023 guidance, projecting continued growth.
Q3 average number of WSEEs paid and revenues up 4% and 8%, respectively
Q3 net income and diluted EPS up 18% to $44.3 million and $1.16, respectively
Q3 adjusted EBITDA up 18% to $94.3 million; adjusted EPS up 19% to $1.46
Return to shareholders of $194.4 million in YTD period through the repurchase of 1,259,000 shares at a cost of $131.4 million and $63.0 million in cash dividends
Insperity
Insperity
Forward Guidance
Insperity provided updated guidance for Q4 2023 and full year 2023.
Positive Outlook
- Q4 Average WSEEs paid: 316,750—318,250
- Q4 Year-over-year increase: 3.0%—3.5%
- Q4 Adjusted EPS: $0.44—$0.82
- Q4 Adjusted EBITDA (in millions): $43—$63
- Full Year Adjusted EBITDA (in millions): $340—$360
Challenges Ahead
- Q4 Year-over-year decrease Adjusted EPS: (64%)—(32%)
- Q4 Adjusted EBITDA Year-over-year increase (decrease): (45%)—(20%)
- Full Year 2023Average WSEEs paid: 312,600—312,800
- Full Year Adjusted EPS: $5.20—$5.60
- Full Year Adjusted EBITDA Year-over-year increase (decrease): (3%)—2%