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Dec 31, 2022
Insperity Q4 2022 Earnings Report
Reported record results in growth and profitability, driven by a proven business model and strong execution.
Key Takeaways
Insperity announced record fourth-quarter and full-year 2022 results, with revenue increasing by 15.4% to $1.5 billion and net income reaching $38.2 million. The average number of worksite employees (WSEEs) paid per month increased by 14.3% to 307,506. The company also provided guidance for 2023, projecting continued growth in average WSEEs paid and adjusted EPS.
Q4 average number of WSEEs paid and revenues up 14% and 15%, respectively
Q4 net income and diluted EPS of $38.2 million and $0.99, respectively
Q4 adjusted EBITDA and adjusted EPS of $78.9 million and $1.21, respectively
Client retention remained strong, averaging 99% per month for the quarter
Insperity
Insperity
Forward Guidance
The company provided its guidance for 2023, including the first quarter of 2023.
Positive Outlook
- Q1 2023 Average WSEEs paid: 306,500—309,300
- Full Year 2023 Average WSEEs paid: 317,000—326,000
- Q1 2023 Adjusted EPS: $2.40—$2.60
- Full Year 2023 Adjusted EPS: $5.24—$6.30
- Q1 2023 Adjusted EBITDA (in millions): $143—$153
Challenges Ahead
- Full Year 2023 Adjusted EBITDA (in millions): $353—$409
- Q1 2023 year-over-year comparisons are impacted by elevated COVID-19 medical claims in Q1 2022
- Q1 2023 year-over-year comparisons are impacted by higher interest income expectations in the first three quarters of 2023.
- Year-over-year 2023 adjusted EPS comparisons are impacted by higher interest
- Year-over-year 2023 adjusted EPS comparisons are impacted by depreciation and amortization expense expectations in 2023, which are not included in adjusted EBITDA.