Insperity Q4 2024 Earnings Report

Key Takeaways

Insperity reported a net loss of $9 million for Q4 2024, with revenue increasing by 2% to $1.6 billion. Adjusted EPS came in at $0.05, while gross profit declined by 2% to $218 million. The company saw a 2% decline in worksite employees paid, offset by a 4% increase in revenue per employee. Operating expenses surged by 17%, including costs related to the Workday partnership.

Total Revenue

$1.61B

Previous year: $1.58B

+2.1%

EPS

$0.05

Previous year: $0.75

-93.3%

Gross Billings

$11.6B

Previous year: $11.4B

+2.1%

Avg. Worksite Employees Paid

309.09K

Previous year: 315.07K

-1.9%

Gross Profit

$218M

Previous year: $222M

-1.8%

Cash and Equivalents

$1.12B

Previous year: $766M

+46.7%

Free Cash Flow

$606M

Previous year: $40.6M

+1391.7%

Total Assets

$2.63B

Previous year: $2.12B

+24.1%

Insperity Revenue

Insperity EPS

Forward Guidance

The company expects modest growth in worksite employees and revenue for 2025, but margins remain under pressure from rising expenses.

Positive Outlook

Expected growth in worksite employees paid in 2025
Strategic partnership with Workday aimed at future growth
Revenue per employee increasing due to pricing adjustments
Continued focus on client retention and sales expansion
Strong balance sheet with significant cash reserves

Challenges Ahead

Higher operating expenses impacting profitability
Macroeconomic conditions remain challenging
Impact of inflation on costs and margins
Declining worksite employees paid year-over-year
Potential risks associated with client contract renewals