Insperity, Inc. (NYSE: NSP) has reported its financial results for the fourth quarter and full year ended December 31, 2024. Here are the key highlights from the report:
- In the fourth quarter of 2024, the average number of worksite employees paid per month decreased by 2% from the same period in 2023 to 309,093 worksite employees.
- Revenues for the fourth quarter increased by 2% to $1.6 billion, driven by a 4% increase in revenue per worksite employee on higher pricing, offset by the decrease in paid worksite employees.
- Gross profit decreased by 2% from the fourth quarter of 2023 to $218 million.
- Operating expenses increased by 17% over the same period in 2023, including approximately $19 million associated with the implementation of the workday strategic partnership.
- Reported net loss for the fourth quarter was $9 million, with adjusted EBITDA of $23 million and adjusted EPS of $0.05.
- For the full year 2024, the average number of worksite employees paid per month decreased by 2% from 2023 to 307,261 worksite employees.
- Revenues for the full year increased by 1% to $6.6 billion, with a 3% increase in revenue per worksite employee, offset in part by the decrease in paid worksite employees.
- Gross profit increased by 1% on a 3% increase in gross profit per worksite employee per month.
- Operating expenses increased by 14% over 2023, including approximately $57 million associated with the implementation of the workday strategic partnership.
- Reported net income for the full year was $91 million, with adjusted EBITDA of $270 million and adjusted EPS of $3.58.
- Insperity returned $152 million to shareholders during 2024 through the repurchase of 697,000 shares at a cost of $63 million and $89 million in cash dividends.
- The company also announced its guidance for the first quarter and full year of 2025. The average worksite employees paid are expected to range from 306,500 to 309,000 for the first quarter, with a year-over-year increase of 0.9% to 1.7%. For the full year, the range is expected to be 313,400 to 319,500, with a year-over-year increase of 2.0% to 4.0%.
- Adjusted EPS for the first quarter of 2025 is estimated to be between $1.89 and $2.15, with a year-over-year decrease of 17% to 5%. For the full year, the range is expected to be $3.10 to $3.95, with a year-over-year decrease of 13% to 10%.
- Adjusted EBITDA for the first quarter of 2025 is estimated to be between $121 million and $135 million, with a year-over-year decrease of 15% to 5%. For the full year, the range is expected to be $240 million to $285 million, with a year-over-year decrease of 11% to 6%.
Insperity's Chairman and CEO, Paul J. Sarvadi, expressed satisfaction with the company's fourth quarter and full year 2024 results, noting an exceptional year-end sales and client retention campaign. The company also announced a focus on reaching significant milestones in its workday strategic partnership in 2025, with the goal of enhancing its growth trajectory in 2026 and beyond.
Insperity's Executive Vice President of Finance, CFO, and Treasurer, James D. Allison, highlighted the company's strong balance sheet and its focus on balancing investments in its long-term business strategy and returns to shareholders through dividends and share repurchases.
Insperity is currently making a difference in thousands of businesses and communities nationwide, with its mission to help businesses succeed so communities prosper. Following these announcements, the company's shares moved 17.0%, and are now trading at a price of $81.41. For the full picture, make sure to review Insperity's 8-K report.
