NASDAQ$BBSI

Barrett Business Services Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

BBSI reported strong financial results for the fourth quarter and full year ended December 31, 2024, with significant growth in revenues, net income, and gross billings.

BBSI achieved a strong fourth quarter in 2024, with revenues increasing 10% to $304.8 million and net income rising 15% to $16.8 million, or $0.63 per diluted share. This performance was driven by record worksite employee additions, high client retention, and a successful year-end selling season for their healthcare offering.

  • Fourth quarter revenues increased 10% to $304.8 million compared to $276.7 million in the prior year.
  • Net income for the fourth quarter increased 15% to $16.8 million, or $0.63 per diluted share, up from $14.6 million, or $0.54 per diluted share, in the year-ago quarter.
  • Total gross billings for the fourth quarter grew 10% to $2.25 billion, primarily due to increased worksite employees from new clients and higher average billings per WSE.
  • Workers' compensation expense as a percent of gross billings improved to 2.3% in Q4 2024, benefiting from lower costs and favorable prior year liability adjustments.

Headline financials

Total Revenue

$305M

Previous: $277M+10.2%
EPS (adj)

$0.63

Previous: $0.54+16.7%
Gross Billings

$2.25B

No prior period
Average WSEs

133.1K

No prior period
Ending WSEs

132.1K

No prior period
Payroll Taxes & Benefits %

7.3%

No prior period
Workers' Comp %

2.3%

No prior period
Gross Margin %

3.2%

No prior period
Capital Expenditures

-$3.16M

No prior period
Net Income

$16.8M

Previous: $14.6M+15.4%
Operating Income

$20.6M

Previous: $18.2M+13.3%
Gross Profit

$71.4M

Previous: $63.8M+11.9%

Revenue & EPS history

BBSI · Revenue · Quarterly

$305M

Q4 2024+10.2%vs Q4 2023
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Forward guidance

For 2025, BBSI anticipates continued growth in gross billings and average worksite employees, alongside a stable gross margin and effective annual tax rate.

Tailwinds

  • Gross billings growth expected to be between 7% and 9%.
  • Growth in the average number of WSEs projected to be between 4% and 6%.
  • Gross margin as a percent of gross billings expected to be between 2.85% and 3.10%.
  • Effective annual tax rate anticipated to remain stable at 26% to 27%.
  • Strong momentum from Q4 2024 continued into January, positioning the company well for future growth.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+0.4%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+3.4%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+25.3%

Q4 2015

Best reaction

-59.0%

Q3 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.1%-3.1%+8.4%
Q4 2025-15.0%-11.2%-6.7%
Q3 2025-14.4%-14.8%-15.2%
Q1 2025-0.9%+2.3%+3.7%
Q4 2024-0.5%-3.7%+1.8%
Q3 2024+10.1%+14.6%+16.4%
Q2 2024+0.5%-6.4%+0.1%
Q1 2024-1.7%+1.4%+8.9%
Q4 2023+5.2%+3.6%+9.2%
Q3 2023+3.8%+8.4%+21.3%
Q2 2023+1.9%+4.4%+6.5%
Q1 2023-5.8%-5.0%+4.7%
Q4 2022-5.4%-3.9%-7.6%
Q3 2022+4.6%+9.0%+14.4%
Q2 2022-0.3%+3.6%-1.7%
Q1 2022+5.9%+3.7%+0.5%
Q4 2021+21.4%+23.6%+33.0%
Q3 2021-6.1%-3.9%-17.9%
Q2 2021+5.7%+7.4%+6.4%
Q1 2021+1.6%+5.0%-1.5%
Q4 2020-5.8%-0.0%-4.4%
Q3 2020+6.1%+4.7%+10.5%
Q2 2020+8.9%+7.9%+4.8%
Q1 2020-3.2%+5.3%+18.1%
Q4 2019-18.6%-25.5%-54.2%
Q3 2019+6.0%+4.0%-3.6%
Q2 2019+2.9%+7.9%+6.8%
Q1 2019+0.5%+4.8%-3.2%
Q4 2018+8.9%+7.2%+2.8%
Q3 2018+11.3%+10.5%+0.1%
Q2 2018-23.6%-19.4%-22.0%
Q1 2018-2.1%-7.1%-1.5%
Q4 2017+5.9%+7.8%+18.2%
Q3 2017+3.4%+6.4%+7.3%
Q2 2017-11.8%-9.2%-2.3%
Q1 2017-2.5%-1.5%+0.5%
Q4 2016-11.2%-13.4%-11.8%
Q3 2016+8.9%+14.5%+35.2%
Q2 2016+0.8%+5.1%+4.5%
Q1 2016+9.3%-1.4%+12.6%
Q4 2015+25.3%+28.3%+35.7%
Q3 2015+9.7%
Q2 2015+2.8%
Q1 2015+11.4%
Q4 2014+17.6%
Q3 2014-59.0%
Q2 2014+15.7%
Q1 2014-5.3%
Q4 2013-8.5%
Q3 2013+14.2%
Q2 2013+2.7%
Q1 2013-7.9%
Q4 2009+1.6%
Q4 2012+3.9%
Q3 2012+5.7%
Q2 2012+8.7%
Q1 2011-2.3%
Q1 2012+5.8%
Q4 2011+2.1%
Q3 2011-0.5%
Q3 2010-0.5%
Q2 2010-6.0%
Q2 2011-6.0%
Q4 2010-6.0%
Q1 2010+1.7%

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