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NSP NYSE· Insperity Inc
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NSP NYSE· Insperity Inc
Earnings report Q4 2023

NSP Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

NSP reported total revenues of $6.5 billion for the latest quarter, representing a 9.2% increase compared to the previous year. This growth was primarily driven by a 5.8% increase in average Worksite Employee Equivalents (WSEEs) paid and a 3.2% increase in revenues per WSEE per month.

Strengths

NSP demonstrated strong revenue growth in the latest quarter, driven by an increase in both the number of WSEEs paid and the revenues per WSEE per month. The company's ability to attract and retain clients, resulting in higher WSEE numbers, contributed to the overall revenue growth. Additionally, the increase in revenues per WSEE per month indicates that NSP was able to generate higher revenue from each individual employee.

Challenges

Despite the overall revenue growth, NSP experienced a 2.0% decrease in adjusted net income and a 1.3% decrease in adjusted EPS. This suggests that the company's profitability did not keep pace with the increase in revenues. Furthermore, the adjusted EBITDA per WSEE per month decreased by 6.0% from the previous year, indicating a decline in profitability on a per-employee basis.

Noteworthy

NSP ended the quarter with a strong working capital of $159.0 million. The company also paid dividends of $84.2 million, repurchased approximately 1,259,000 shares of common stock at a cost of $131.5 million, and invested $40.1 million in capital expenditures during the quarter.

Summary

NSP delivered strong revenue growth in the latest quarter, driven by an increase in the number of WSEEs paid and higher revenues per WSEE per month. However, the company faced challenges in maintaining profitability, as evidenced by the decrease in adjusted net income and adjusted EPS. NSP's strong working capital position and strategic investments in dividends, share repurchases, and capital expenditures demonstrate a commitment to long-term growth and shareholder value.

Source documents

Form 10-K  filed on Feb 09, 2024
109 pages scanned

Reference data

Company financials Q4 revenue 1.58B
Analyst estimates Q4 EPS beat by 16.28%
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