Financial Data and Key Metrics Changes - Gross billings increased by 9.5% year-over-year to $2.09 billion in Q1 2025 compared to $1.91 billion in Q1 2024 [17] - PEO gross billings rose by 10% to $2.07 billion, while staffing revenues declined by 10% to $18 million [17] - Average billing per worksite employee (WSE) increased by 2.6% in the quarter [18] - The net loss per diluted share was $0.04 compared to a net loss of $0.01 per diluted share in the same quarter last year [23] Business Line Data and Key Metrics Changes - Worksite employees grew by 7.6% in the quarter, driven by a record number of new client additions [18] - Staffing operations experienced a decline of 10% year-over-year, attributed to macroeconomic headwinds [6][17] - The company added approximately 7,900 worksite employees year-over-year from net new clients [5] Market Data and Key Metrics Changes - The East Coast region saw a growth of 14%, Southern California grew by 11%, Mountain region by 9%, Northern California by 6%, while the Pacific Northwest declined by 1% [19] - Southern California represents the largest region for the company, achieving double-digit growth due to consistent client additions and hiring [19] Company Strategy and Development Direction - The company is focusing on geographic expansion with plans to open new physical locations in Chicago, Dallas, and Nashville by early Q3 [8][31] - Investments in new markets and product offerings, including a new health insurance product, are expected to drive future growth [9][10] - The company aims to enhance the employee life cycle experience through technology investments and product launches throughout the year [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the economic environment, noting potential impacts on client hiring and investment [14][15] - Despite a strong start to the year, the company is maintaining its outlook for billings growth and worksite employee growth due to economic uncertainties [24] - The company believes that small businesses benefit from PEO relationships during challenging times, positioning itself for sustainable growth [15] Other Important Information - The company repurchased $9 million of shares in Q1 under its $75 million repurchase program [24] - The company paid $2.1 million in dividends during the quarter and reaffirmed its dividend for the following quarter [24] Q&A Session Summary Question: What percentage of clients have direct tariff exposure? - Management indicated that most clients are in service industries with minimal direct exposure, primarily facing indirect impacts from increased material costs [28] Question: Is there an annual goal for new physical offices? - Management stated that the number of new physical locations depends on market development rather than a fixed annual target [30] Question: How much growth could come from geographic expansion over the next five years? - Management views geographic expansion as a long-term investment, expecting profitability to materialize in year three and beyond [34] Question: Are existing clients or new clients driving growth in benefits? - The company has seen a shift towards a more balanced contribution from both existing and new clients in the benefits segment [42] Question: Is the company displacing more legacy PEOs than before? - Management noted that while many new clients are first-time PEO users, there is an increase in PEO takeaways in certain markets [46] Question: How is pricing trending in the current economic backdrop? - Management reported that workers' compensation pricing has moderated, with minimal fluctuations expected [54]

Barrett Business Services (BBSI) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Company Participants Gary Kramer - President, CEO & DirectorAnthony Harris - EVP, CFO & TreasurerVincent Colicchio - Managing Director Conference Call Participants Chris Moore - Senior AnalystJeff Martin - Director of Research & Senior Research AnalystMarc Riddick - Business Services Analyst Operator Good afternoon, everyone, and thank you for participating in today's conference call to discuss BBSI's Financial Results for the ...

Barrett Business Services (BBSI) Q1 2025 Earnings Call May 07, 2025 05:00 PM ET Speaker0 Good afternoon, everyone, and thank you for participating in today's conference call to discuss BBSI's Financial Results for the First Quarter Year March '30 '1, '20 '20 '5. Joining us today are BBSI's President and CEO, Mr. Gary Kramer and the company's CFO, Mr. Anthony Harris. Following their remarks, we'll open the call for your questions. Before we go further, please take note of the company's Safe Harbor statement ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Exact name of registrant as specified in its charter) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to Commission File Number 0-21886 BARRETT BUSINESS SERVICES, INC. Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2025 (State or other jurisdiction of Incorporation or or ...

Financial Performance - Revenues increased by 10% to $292.6 million compared to $265.8 million in Q1 2024[4] - Total gross billings rose by 9% to $2.09 billion from $1.91 billion in the same quarter last year[5] - Total revenues for Q1 2025 reached $292,566,000, a 10.1% increase from $265,782,000 in Q1 2024[26] - Professional employer services revenue increased to $274,926,000, up from $246,189,000, representing an increase of 11.7%[26] - Staffing services revenue decreased to $17,640,000, down 10.0% from $19,593,000[26] - Total cost of revenues was $249,942,000, an increase of 10.5% compared to $226,215,000 in the previous year[26] - Gross margin improved to $42,624,000, compared to $39,567,000, reflecting a positive trend[26] - Net loss for Q1 2025 was $1,021,000, compared to a net loss of $136,000 in Q1 2024[26] - Basic loss per common share was $0.04, compared to $0.01 in the prior year[26] - The company reported a loss from operations of $4,172,000, slightly improved from a loss of $4,699,000 in Q1 2024[26] Employee Metrics - Average worksite employees (WSEs) grew by 8% year-over-year[8] - The company expects average WSE growth of 4% to 6% for 2025[14] Cash and Investments - As of March 31, 2025, unrestricted cash and investments totaled $99.1 million, down from $121.9 million at the end of 2024[9] - BBSI repurchased $9.1 million of stock in Q1 2025, with approximately $20.7 million remaining under the repurchase program[10] Expenses and Tax - Workers' compensation expense as a percentage of gross billings improved to 2.4% from 2.6% in the prior year[6] - The effective annual tax rate is projected to remain between 26% to 27%[14] Dividends - BBSI's board confirmed a quarterly cash dividend of $0.08 per share, to be paid on June 6, 2025[11] Investment Income - Investment income, net, was $2,620,000, down from $3,274,000 in the previous year[26]

Core Viewpoint - Barrett Business Services, Inc. (BBSI) reported a strong financial performance for the first quarter of 2025, with revenues increasing by 10% and gross billings rising by 9%, despite a net loss attributed to seasonal payroll tax expenses [3][4][11]. Financial Performance - Revenues for Q1 2025 reached $292.6 million, up from $265.8 million in Q1 2024 [4][11]. - Total gross billings increased to $2.09 billion, compared to $1.91 billion in the same quarter last year [5][11]. - The average number of worksite employees (WSEs) grew by 8% year-over-year [11]. Cost and Expenses - Workers' compensation expense as a percentage of gross billings was 2.4% in Q1 2025, down from 2.6% in Q1 2024, benefiting from lower costs and favorable prior year adjustments [6][11]. - The net loss for the first quarter was $1.0 million, or $(0.04) per diluted share, compared to a net loss of $0.1 million, or $(0.01) per diluted share, in the previous year [7][11]. Liquidity and Capital Allocation - As of March 31, 2025, unrestricted cash and investments totaled $99.1 million, down from $121.9 million at the end of 2024, with the company remaining debt-free [8]. - BBSI repurchased $9.1 million of stock in Q1 2025, with approximately $20.7 million remaining under the stock repurchase program [9][10]. Dividends - The company paid $2.1 million in dividends during the quarter and confirmed a quarterly cash dividend of $0.08 per share, to be paid on June 6, 2025 [10]. Outlook - BBSI anticipates continued growth in 2025, supported by strong client retention and a differentiated service model [3].

Core Viewpoint - Investors are evaluating Barrett Business Services (BBSI) and ExlService Holdings (EXLS) as potential undervalued stocks in the Outsourcing sector, with BBSI appearing to be the superior value option based on various valuation metrics [1][6]. Valuation Metrics - BBSI has a forward P/E ratio of 19.05, while EXLS has a forward P/E of 23.61, indicating that BBSI may be more attractively priced relative to its earnings [5]. - The PEG ratio for BBSI is 1.36, compared to EXLS's PEG ratio of 1.45, suggesting that BBSI offers better value when considering expected earnings growth [5]. - BBSI's P/B ratio is 4.78, whereas EXLS has a P/B ratio of 7.69, further supporting the argument that BBSI is undervalued relative to its book value [6]. Earnings Outlook - Both BBSI and EXLS currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3]. - The Zacks Rank system emphasizes companies with improving earnings estimates, which applies to both BBSI and EXLS [2][3]. Value Grades - BBSI has received a Value grade of A, while EXLS has a Value grade of C, highlighting BBSI's stronger position as a value investment based on the analyzed metrics [6].

VANCOUVER, Wash., April 23, 2025 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (BBSI) (NASDAQ: BBSI), a leading provider of business management solutions and one of the largest professional employer organizations (PEO) in the U.S., will conduct a conference call on Wednesday, May 7, 2025, at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) to discuss its financial results for the first quarter ended March 31, 2025. The company will report its financial results in a press release prior to the conference ...

NEW YORK, April 23, 2025 /PRNewswire/ - According to a comprehensive new report from The Insight Partners, the global Applicant Tracking System (ATS) market is observing healthy growth owing to the rising recruitment volume across the globe. The report runs an in-depth analysis of market trends, key players, and future opportunities. Several key factors drive the Applicant Tracking System (ATS) market. As organizations scale operations and expand geographically, the need to manage high volumes of job applic ...

Core Insights - Barrett Business Services, Inc. (BBSI) has appointed Mark S. Finn to its board of directors, effective April 7, 2025, enhancing its leadership team with his extensive financial background [1][3]. Company Overview - BBSI is a leading provider of business management solutions, specializing in human resource outsourcing and professional management consulting, which differentiates it from competitors [4]. - The company operates an integrated platform that includes payroll processing, employee benefits, workers' compensation coverage, risk management, workplace safety programs, and human resource administration [4]. - BBSI serves over 8,100 PEO clients across all 50 states in the U.S. [4]. Leadership Background - Mark S. Finn has over 30 years of experience with T. Rowe Price Group, where he managed significant investment funds, including a $35 billion US Value Equity Strategy Fund [2]. - Finn's previous roles included working in assurance services at Price Waterhouse & Co., now known as PricewaterhouseCoopers LLP [2]. - He holds a Bachelor of Science in Accounting from the University of Delaware and was a certified public accountant and certified financial analyst until his retirement in 2023 [3]. Strategic Importance - The appointment of Finn is expected to provide critical guidance for BBSI's growth and innovation, as noted by the company's chairman, Tony Meeker [3]. - Finn expressed his commitment to contributing to the company's long-term success and believes in BBSI's potential [3].