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Dec 31, 2021
Insperity Q4 2021 Earnings Report
Insperity's Q4 2021 results were announced, revealing revenue growth but an earnings shortfall due to higher benefit costs driven by pandemic-related utilization.
Key Takeaways
Insperity's Q4 2021 revenues increased by 22% to $1.3 billion, driven by a 12% increase in paid WSEEs. However, net income and diluted EPS were $9.7 million and $0.25, respectively, due to approximately $27 million in higher benefits costs related to the pandemic. The company ended the year with a solid balance sheet and projects continued strong cash flow in 2022.
Q4 2021 revenue increased 22% year-over-year to $1.3 billion.
Net income and diluted EPS for Q4 2021 were $9.7 million and $0.25, respectively.
Adjusted EBITDA and adjusted EPS for Q4 2021 were $30.4 million and $0.34, respectively.
Average WSEEs paid increased 12.4% year-over-year to 268,978.
Forward Guidance
Insperity provided guidance for Q1 2022 and full year 2022, including average WSEEs paid, adjusted EBITDA, and adjusted EPS.
Positive Outlook
- Q1 2022 average WSEEs paid are expected to be between 275,100 and 277,500, representing an 18.0% to 19.0% year-over-year increase.
- Full year 2022 average WSEEs paid are expected to be between 287,100 and 292,200, representing a 14.5% to 16.5% year-over-year increase.
- Q1 2022 adjusted EPS is projected to be between $1.56 and $2.12.
- Full year 2022 adjusted EPS is projected to be between $3.74 and $4.86.
- Q1 2022 adjusted EBITDA is expected to be between $95 million and $125 million.
Challenges Ahead
- Q1 2022 adjusted EPS is expected to decrease between (14)% and 16% year-over-year.
- Full year 2022 adjusted EPS is expected to decrease between (5)% and 23% year-over-year.
- Q1 2022 adjusted EBITDA is expected to decrease between (9)% and 20% year-over-year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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