The following is a summary of the Insperity, Inc. (NSP) Q1 2024 Earnings Call Transcript:
Financial Performance:
Insperity reported Q1 2024 adjusted EBITDA of $142 million and adjusted EPS of $2.27, exceeding their financial guidance.
Gross profit increased by 4% over Q1 2023 due to strong pricing and below anticipated benefit costs.
Despite a slight decrease in the average number of paid worksite employees, Q1 operating expenses increased by 12% year-over-year due to investments in growth and new service and technology offerings.
Insperity repurchased 233,000 shares for $23 million and distributed $21 million in cash dividends, ending Q1 with an adjusted cash balance of $206 million.
Business Progress:
Insperity has been making good progress in its strategic partnership with Workday, meeting Q1 lead generation goals and making strides in team setup.
Despite economic downturn impacting their business clients, the company had a strong Q1 in booked sales, especially in their Workforce Optimization solution where sales increased significantly compared to Q1 2023.
Future growth seems promising with the progress of the Workday partnership and continuous growth in their sales throughout the year.
Insperity is significantly investing in technology and data analytics, focusing on mid-market accounts to provide powerful services and secure longer-term clients. The company is also preparing for the launch of a new offering.
More details: Insperity IR
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