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].

Core Viewpoint - Barrett Business Services, Inc. (BBSI) will hold a conference call on May 7, 2025, to discuss its financial results for Q1 2025, which ended on March 31, 2025 [1][2]. Group 1: Conference Call Details - The conference call will be hosted by CEO Gary Kramer and CFO Anthony Harris, followed by a Q&A session [2]. - The call is scheduled for 5:00 p.m. Eastern time (2:00 p.m. Pacific time) [2]. - Participants can join the call using a toll-free number or an international dial-in number, with a conference ID provided for access [2]. Group 2: Replay Information - The conference call will be broadcast live and available for replay on the BBSI website, with a replay accessible after 8:00 p.m. Eastern time on the same day until June 7, 2025 [3]. - Specific toll-free and international numbers are provided for the replay, along with a replay ID [3]. Group 3: Company Overview - BBSI is a leading provider of business management solutions, specializing in human resource outsourcing and professional management consulting [3]. - The company serves over 8,100 PEO clients across all 50 states, focusing on improving operational efficiency through its integrated platform [3].

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].

VANCOUVER, Wash., April 02, 2025 (GLOBE NEWSWIRE) -- Barrett Business Services, Inc. (BBSI) (NASDAQ: BBSI), a leading provider of business management solutions, today announced the appointment of Thomas McGinn as Senior Vice President of Insurance. In this role, Mr. McGinn will oversee BBSI’s insurance operations, including underwriting strategy, risk management, and pricing. He will report directly to BBSI’s Chief Executive Officer, Gary Kramer. “This is a critical leadership role at BBSI, and Tom’s deep e ...

Revenue and Growth - Total revenues for 2024 reached $1,144,537, an increase from $1,069,307 in 2023, with professional employer services contributing 92.9% of total revenues[176] - Gross billings for 2024 amounted to $8,327,091, up from $7,716,152 in 2023, indicating a strong growth trajectory[178] - Revenue for 2024 totaled $1,144.5 million, reflecting a 7.0% increase from 2023, driven by an 8.3% increase in PEO service revenue[182] Net Income and Profitability - Net income for 2024 was $52,993, representing 4.7% of total revenues, slightly down from 4.8% in 2023[176] - Net income for 2024 was $53.0 million, an increase from $50.6 million in 2023, with diluted net income per share rising to $1.98 from $1.85[182] Costs and Expenses - The cost of revenues for staffing services was $891,280, accounting for 77.8% of total revenues, compared to 77.3% in 2023[176] - Payroll taxes and benefits increased to $628,534, making up 54.9% of total revenues in 2024, up from 52.0% in 2023[176] - Workers' compensation costs were $201,736, representing 17.6% of total revenues, a decrease from 19.2% in 2023[176] - Selling, general and administrative expenses were $185,869, or 16.2% of total revenues, slightly down from 16.3% in 2023[176] - A 5% increase in estimated ultimate losses for 2024 would result in a $0.5 million increase in workers' compensation expense[169] Margins - The company reported a gross margin of $253,251, which is 22.2% of total revenues, compared to 22.7% in 2023[176] - Gross margin for 2024 was $253.3 million, representing 22.2% of revenue, down from 22.7% in 2023[183] Employee Metrics - Average worksite employees (WSEs) increased by 4.2% to 129,577 in 2024, while ending WSEs rose by 4.4% to 132,069[180] Cash Flow and Financial Position - Cash balance increased by $7.7 million to $82.6 million as of December 31, 2024, compared to a decrease of $32.5 million in 2023[193] - Net cash provided by operating activities was $10.1 million in 2024, a significant decrease from $67.2 million in 2023, primarily due to increased trade accounts receivable[194] Taxation - The effective income tax rate for 2024 was 25.2%, down from 26.6% in 2023, influenced by state taxes and tax credits[189] Geographic Revenue Concentration - The company expects to continue deriving a majority of its revenues from California, which accounted for 72% of total revenues in both 2024 and 2023[159]

Financial Data and Key Metrics Changes - For Q4 2024, gross billings increased by 10% to $2.25 billion compared to $2.05 billion in Q4 2023, while diluted earnings per share rose by 17% to $0.63 from $0.54 in the prior year quarter [30] - For the full year 2024, gross billings grew by 7.9% to $8.3 billion from $7.7 billion in the previous year, and diluted earnings per share increased by 7% to $1.98 from $1.85 [30] - Average billing per worksite employee (WSE) increased by 3.3% in Q4 [32] Business Line Data and Key Metrics Changes - PEO growth billings increased by 10% in Q4, while staffing revenues declined by 9% to $20 million [31] - PEO worksite employees grew by 5.2% in Q4, driven by a record number of WSEs added from new clients [31] - Staffing business declined by 9% year-over-year, but the rate of decline has slowed significantly compared to the previous year [15] Market Data and Key Metrics Changes - Year-over-year PEO gross billings growth by region for Q4: East Coast grew by 21%, Southern California by 11%, Mountain by 10%, Northern California by 5%, and Pacific Northwest declined by 4% [33] - The East Coast region has achieved 15 consecutive quarters of double-digit growth, while the Pacific Northwest is expected to return to growth in 2025 [34] Company Strategy and Development Direction - The company is focusing on expanding its asset-light model and has successfully entered new markets, with 21 new market development managers added [16] - Continued investment in technology and product development is a priority, with multiple product releases planned for 2025 [9][21] - The company aims to enhance its employee life cycle experience through new product launches and technology investments [22][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, anticipating gross billings to increase between 7% and 9% and average WSEs to rise between 4% and 6% [43] - The company expects continued growth in net client adds and modest improvements in client hiring [44] - Management noted that wage inflation remains stable and is a baseline driver of growth [49] Other Important Information - The company achieved a Net Promoter Score increase of 5 points to 69, indicating strong client satisfaction [10] - The balance sheet remains strong with $122 million in unrestricted cash investments and no debt [40] - The company repurchased over 3% of its outstanding shares in 2024, totaling more than $29 million [42] Q&A Session Summary Question: Insights on client hiring and wage inflation - Management noted stability and recovery in hiring metrics, with consistent wage inflation being a driver of growth [49] Question: Average WSE growth and client contributions - The majority of WSE growth is expected to come from new clients and client retention [52] Question: Healthcare revenue mechanics - The company earns through reseller fees and administrative fees, with plans to disclose more detailed metrics in the future [60] Question: Technology investments and client attraction - Technology initiatives have been enhanced to support non-traditional clients and larger clients, with a focus on software to support business operations [67] Question: Workers' compensation pricing trends - Management indicated a deceleration in rate decreases for workers' compensation, with hopes for a market turnaround soon [80] Question: Impact of California wildfires - Minimal impact on employees and clients was reported, with potential future business opportunities arising from rebuilding efforts [84][87] Question: Competitive positioning in benefits - The company emphasizes its strong local teams and expanding product offerings as key differentiators in the market [96]

Financial Data and Key Metrics Changes - For Q4 2024, gross billings increased by 10% to $2.25 billion compared to $2.05 billion in Q4 2023, while diluted earnings per share rose by 17% to $0.63 from $0.54 in the prior year quarter [30] - For the full year 2024, gross billings increased by 7.9% to $8.3 billion from $7.7 billion in the prior year, and diluted earnings per share increased by 7% to $1.98 from $1.85 [30] - Average billing per worksite employee (WSE) increased by 3.3% in Q4 [32] Business Line Data and Key Metrics Changes - PEO growth billings increased by 10% in Q4, while staffing revenues declined by 9% to $20 million [31] - PEO worksite employees grew by 5.2% in Q4, driven by a record number of WSEs added from new clients [31] - Staffing business declined by 9% year-over-year, but the rate of decline has slowed significantly compared to the previous year [15] Market Data and Key Metrics Changes - Year-over-year PEO gross billings growth by region for Q4: East Coast grew by 21%, Southern California by 11%, Mountain by 10%, Northern California by 5%, and Pacific Northwest declined by 4% [33] - The East Coast region has achieved 15 consecutive quarters of double-digit growth, while the Pacific Northwest region is expected to return to growth in 2025 [34] Company Strategy and Development Direction - The company is focusing on expanding its asset-light model and has entered new markets, with 21 new market development managers contributing to growth [16] - Continued investment in technology and product development is a priority, with new product launches planned for 2025 [21][26] - The company aims to enhance its value proposition through improved service offerings and technology integration [20][28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued hiring trends in 2025, despite client hiring remaining below historical averages [27] - The company anticipates gross billings growth of 7% to 9% and average WSE growth of 4% to 6% in 2025 [43] - Management noted that while there is pressure on workers' compensation pricing, favorable claim trends are expected to offset some of these pressures [36][45] Other Important Information - The company achieved a Net Promoter Score increase of 5 points to 69, indicating strong client satisfaction [10] - The balance sheet remains strong with $122 million in unrestricted cash investments and no debt [40] - The company repurchased over 3% of its shares outstanding in 2024, returning a total of $37 million to shareholders through dividends and stock buybacks [42] Q&A Session Summary Question: Insights on client hiring and wage inflation - Management noted stability and recovery in hiring metrics, with consistent wage inflation being a baseline driver of growth [49][50] Question: Average WSE growth and client contributions - The majority of WSE growth is expected to come from new clients [51][52] Question: Mechanics of healthcare revenue generation - The company earns through reseller fees and administrative fees, with plans to provide more detailed disclosures in the future [58][60] Question: Technology investments and client attraction - Technology initiatives have been enhanced to support non-traditional clients and larger clients, with a focus on improving the employee life cycle experience [67][70] Question: Workers' compensation pricing trends - Management indicated a deceleration in rate decreases for workers' compensation, with hopes for stabilization soon [80][81] Question: Impact of California wildfires - Minimal impact on employees and clients was reported, with potential future business opportunities arising from rebuilding efforts [84][86] Question: Industry verticals leading growth - The company experienced broad-based success across various industries, with notable contributions from market development managers [94]