Insperity reports Q4 EPS 75c, consensus 65c

Reports Q4 revenue $1.60B, consensus $1.58B Q4 average number of WSEEs paid and revenues up 2.5% and 6%, respectively “We were pleased with the results reflecting a solid year in a more difficult environment in the small business community,” said Paul J. Sarvadi, Insperity chairman and chief executive officer. “We are excited about our new strategic partnership with Workday, announced today, and the potential to accelerate Insperity’s long-term trajectory for growth, profitability and value creation.” Gross profit decreased 7.9% over Q4 2022 to $222.1 million on the 2.5% increase in paid WSEEs and a 10.0% decrease in gross profit per WSEE per month, primarily due to a comparison to a period of unusually low benefits costs in Q4 2022. Relative to our expectations, pricing, benefits costs and contributions from our payroll tax area were all favorable. Operating expenses increased 5.1% over Q4 2022 and included continued investment in our growth, with an 8% increase in the average number of hired Business Performance Advisors, and investments in our technology and service offerings.