On February 8, 2024, Insperity Inc (NSP, Financial), a leading provider of human resources and business performance solutions, released its 8-K filing, announcing its fourth quarter and full year 2023 results. The company, which targets small and midsize enterprises with its comprehensive suite of HR solutions, reported a year of solid performance despite facing macro-economic headwinds.
For the fourth quarter, Insperity reported a 2.5% increase in the average number of worksite employees (WSEEs) paid per month, contributing to a 6.1% rise in revenues to $1.6 billion. However, gross profit for the quarter decreased by 7.9% to $222.1 million, primarily due to a comparison with a period of unusually low benefits costs in the previous year. Operating expenses saw a 5.1% increase, reflecting continued investment in growth and technology.
For the full year, the company saw a 5.8% increase in average paid WSEEs and a 9.2% increase in revenues to $6.5 billion. Gross profit for the year increased by 2.5%, but there was a 3.1% decrease on a per WSEE per month basis, mainly due to elevated healthcare costs. Operating expenses increased by 7.5% over the previous year, influenced by inflation and the expansion of the company's workforce to support growth.
Insperity's net income for the fourth quarter was $19.6 million, with diluted EPS at $0.52. For the year, net income was $171.4 million, with diluted EPS at $4.47. Adjusted EBITDA for the quarter was $56.0 million, and $353.6 million for the full year. The company also returned $215.7 million to shareholders through stock repurchases and dividends.
Financial Performance and Strategic Moves
Insperity's chairman and CEO, Paul J. Sarvadi, expressed satisfaction with the company's performance in a challenging environment and highlighted the new strategic partnership with Workday as a potential accelerator for future growth. The CFO, Douglas S. Sharp, also noted the importance of the partnership and announced an upcoming analyst and investor day to discuss the strategy in detail.
The company's balance sheet remains strong, with adjusted cash totaling $171.1 million at the end of 2023. Insperity has $280 million available under its $650 million credit facility, providing ample liquidity for future investments and shareholder returns.
As Insperity moves into 2024, the company will focus on developing its solution and go-to-market strategy with Workday. This partnership is expected to enhance Insperity's service offerings and contribute to its long-term growth trajectory.
Insperity's commitment to providing comprehensive HR solutions and its strategic initiatives position the company well for navigating the evolving economic landscape and continuing to deliver value to its clients and shareholders.
For more detailed financial information and to listen to the earnings conference call, please visit Insperity's investor website at http://ir.insperity.com.
For more information on Insperity and its services, visit http://www.insperity.com.
Explore the complete 8-K earnings release (here) from Insperity Inc for further details.
