Insperity, Inc. reported a modest increase in revenue for the fiscal year ending December 31, 2024, with total revenues reaching $6.58 billion, up 1% from $6.49 billion in 2023. The growth was primarily driven by a 3% increase in revenue per worksite employee (WSEE), which offset a 2% decline in the average number of WSEEs paid, which averaged 307,261 for the year. Gross profit also saw a slight increase of 1% to $1.05 billion, attributed to the same factors affecting revenue. However, the company experienced a significant decline in profitability, with net income falling 47% to $91 million, and diluted earnings per share decreasing to $2.42 from $4.47 in the previous year.
The company's operating expenses rose by 14% to $935 million, influenced by increased travel and event costs, salary and wages, and expenses related to the implementation of a strategic partnership with Workday. This rise in operating costs, combined with a decrease in net income, resulted in a 24% drop in adjusted EBITDA, which fell to $270 million. The average net income per WSEE per month also decreased significantly, from $46 in 2023 to $25 in 2024.
In terms of operational metrics, Insperity's client retention rate declined to 81% from 83% in the previous year, while the average number of WSEEs in the middle market sector remained stable at approximately 26% of the total. The company maintained a strong presence with 106 sales offices across 48 markets, and as of December 31, 2024, it had approximately 4,500 corporate employees. Insperity's strategic focus continues to be on enhancing its human resources service offerings, including its PEO HR Outsourcing Solutions, which encompass a wide range of services designed to improve business performance for small and medium-sized enterprises.
Looking ahead, Insperity's management expressed cautious optimism, emphasizing the importance of adapting to market conditions and client needs. The company plans to leverage its strategic partnership with Workday to enhance its service offerings and improve operational efficiencies. However, management also acknowledged potential challenges, including economic fluctuations and competitive pressures in the PEO industry, which could impact future growth and profitability.
About INSPERITY, INC.
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