Barrett Business Services, Inc. (BBSI) announced strong financial results for the third quarter ended September 30, 2024. The company reported revenues of $294.3 million, an 8% increase compared to $273.3 million in the prior year's third quarter. Total gross billings also saw a significant rise, increasing 9% to $2.14 billion from $1.96 billion in the same period last year.
Net income for the quarter increased to $19.6 million, or $0.74 per diluted share, up from $18.2 million, or $0.67 per diluted share, in the third quarter of 2023. This performance was supported by a 4.8% increase in average worksite employees (WSEs) to 133,398, driven by a record number of new client additions and strong client retention. Workers' compensation expense as a percentage of gross billings improved to 2.3%, benefiting from $4.3 million in favorable prior year liability and premium adjustments.
Based on these strong results, BBSI updated its outlook for the full year 2024, now expecting gross billings growth between 7% and 8%, an increase from the previous range of 6% to 8%. The company maintained its expectation for average WSEs to increase between 4% and 5%. Additionally, BBSI repurchased $8 million of stock in the quarter and confirmed its quarterly cash dividend at $0.08 per share, demonstrating its commitment to returning capital to shareholders.
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