Insperity, Inc. reported third-quarter 2024 adjusted EPS of $0.39, surpassing the consensus estimate of $0.33. The company also reported adjusted EBITDA of $39 million for the quarter. The average number of paid worksite employees (WSEEs) was just over 309,000, which was at the midpoint of the forecasted range, but represented a 2% decline from Q3 2023.
Client hiring remained weak during the quarter, with slight net gains in the first two months offset by a net decline in the third month. Despite this, client retention remained strong at 99% for the quarter. Gross profit decreased by 11% from Q3 2023, influenced by a difficult comparison to the prior year's quarter, which had favorable healthcare claims development.
Insperity updated its full-year 2024 guidance, narrowing adjusted EPS to a range of $3.42 to $3.66 and adjusted EBITDA to $262 million to $274 million, both reflecting significant year-over-year decreases. The company also provided Q4 2024 guidance, projecting adjusted EPS between $(0.10) and $0.12 and adjusted EBITDA between $15 million and $27 million. Year-to-date operating expenses included approximately $40 million associated with the Workday strategic partnership, with the corporate Workday platform deployment on track for the first half of 2025.
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