NYSE$CBZ

Cbiz Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

CBIZ reported strong third-quarter results with revenue and earnings growth.

CBIZ reported a 6.9% increase in total revenue to $438.9 million for the third quarter of 2024, with same-unit revenue up 5.1%. Net income increased by 4.2% to $35.1 million, and GAAP EPS rose by 4.5% to $0.70. Adjusted EPS increased by 27.3% to $0.84, and Adjusted EBITDA grew by 23.0% to $75.7 million.

  • Total revenue increased by 6.9% to $438.9 million, with same-unit revenue up 5.1%.
  • Net income increased by 4.2% to $35.1 million, or $0.70 per diluted share.
  • Adjusted EBITDA increased by 23.0%.
  • Adjusted EPS increased by 27.3%.

Headline financials

Total Revenue

$439M

Previous: $411M+6.9%
EPS

$0.70

Previous: $0.66+6.1%
Adjusted EBITDA

$76.3M

No prior period
Diluted Shares Outstanding

50.4M

No prior period
Days Sales Outstanding

97

No prior period
Adjusted Diluted EPS

$0.93

No prior period
Capital Expenditures

-$9.65M

Previous: -$19M+49.3%
Free Cash Flow

$25.4M

Previous: $14.6M+73.6%
Net Income

$35.1M

Previous: $33.7M+4.2%
Operating Income

$49.7M

Previous: $55.3M-10.1%
Gross Profit

$72.9M

Previous: $68.4M+6.6%
Cash & Equivalents

$1.08M

Previous: $1.42M-24.0%
Total Assets

$2.13B

Previous: $2.07B+2.8%
Stock-Based Comp

$2.42M

Previous: $3.1M-22.1%

Revenue & EPS history

CBIZ · Revenue · Quarterly

$439M

Q3 2024+6.9%vs Q3 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

CBIZ · $411M total across 3 segments · Q3 2023

  • Financial Services
    $298M+14.8%
  • Benefits and Insurance
    $100M+8.9%
  • National Practices
    $11.9M+6.1%

Forward guidance

CBIZ reaffirms its full-year 2024 guidance for Adjusted earnings per share. Total revenue to grow within a range of 7% to 9% over the prior year. Expected close in the fourth quarter of 2024, current guidance excludes the impact of the Marcum acquisition.

Tailwinds

  • Total revenue to grow within a range of 7% to 9% over the prior year.
  • Effective tax rate of approximately 28%.
  • Weighted average fully diluted share count of approximately 50.0 to 50.5 million shares.
  • Adjusted fully diluted earnings per share to grow within a range of 10% to 12%, to $2.64 to $2.69 per share, compared with the $2.41 per share reported for 2023.
  • GAAP fully diluted earnings per share to be within a range of $2.37 to $2.42 per share, or within a range of 1% higher or lower than the $2.39 per share reported for 2023.

Headwinds

  • Guidance excludes the impact of the Marcum acquisition.
  • We may be more sensitive to revenue fluctuations than other companies, which could result in fluctuations in the market price of our common stock.
  • Payments on accounts receivable may be slower than expected, or amounts due on receivables or notes may not be fully collectible.
  • We are dependent on the services of our executive officers, other key employees, producers and service personnel, the loss of whom may have a material adverse effect on our business, financial condition and results of operations.
  • Restrictions imposed by independence requirements and conflict of interest rules may limit our ability to provide services to clients of the attest firms with which we have contractual relationships and the ability of such attest firms to provide attestation services to our clients.

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 Q3 2024

Historical avgQ3 2024

+0.1%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.3%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+16.7%

Q4 2025

Best reaction

-15.1%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.0%-5.6%-0.5%
Q4 2025+16.7%+9.5%-4.2%
Q3 2025+3.0%+7.3%-5.1%
Q1 2025-14.0%-13.0%-6.9%
Q4 2024-5.2%-10.0%-12.1%
Q3 2024+6.0%+4.2%+23.3%
Q2 2024-15.1%-19.4%-14.4%
Q1 2024-7.1%-9.1%+0.8%
Q4 2023+10.5%+11.8%+16.1%
Q3 2023-1.3%+2.3%+14.8%
Q2 2023-2.2%+1.4%+2.2%
Q1 2023+3.0%+0.1%-2.0%
Q4 2022+4.5%+3.2%-1.5%
Q3 2022+6.0%+3.5%+5.6%
Q2 2022+5.0%+3.5%+3.0%
Q1 2022+1.9%-2.2%+0.4%
Q4 2021-4.7%-5.1%+3.3%
Q3 2021+3.2%+6.0%+6.1%
Q2 2021+3.6%+4.5%+8.6%
Q1 2021+1.6%+3.7%+0.5%
Q4 2020+3.7%+6.7%+14.0%
Q3 2020+1.3%+5.9%+11.4%
Q2 2020+6.0%+6.5%+7.7%
Q1 2020-4.2%-3.2%+16.2%
Q4 2019-2.0%-3.4%-39.1%
Q3 2019+7.8%+5.9%+5.8%
Q2 2019+0.6%-0.7%-2.8%
Q1 2019-5.5%-6.1%-3.7%
Q4 2018-0.5%+2.2%-2.8%
Q3 2018-3.6%-3.2%-7.5%
Q2 2018-1.6%-0.7%+8.9%
Q1 2018+1.9%+3.0%+13.7%
Q4 2017+9.8%+13.5%+17.5%
Q3 2017-11.0%-10.1%-11.6%
Q2 2017+0.7%-1.0%+2.7%
Q1 2017+3.6%+2.6%-1.3%
Q4 2016+1.9%+2.3%+6.0%
Q3 2016+0.9%-1.4%+11.3%
Q2 2016+1.0%+3.3%+3.0%
Q1 2016+2.7%
Q4 2015-1.1%
Q3 2015-1.5%
Q2 2015+1.7%
Q1 2015-1.8%
Q4 2014-0.4%
Q3 2014+9.2%
Q2 2014-2.2%
Q1 2014-3.3%
Q4 2013+3.8%
Q3 2013+6.0%
Q2 2013-3.8%
Q1 2013+0.5%
Q4 2012+0.3%
Q3 2012-5.2%
Q2 2012-10.6%
Q1 2011+1.1%
Q1 2012+1.7%
Q4 2009+1.1%
Q4 2011+1.1%
Q3 2010-4.8%
Q3 2011-4.8%
Q2 2011-0.8%
Q4 2010-0.8%
Q2 2010-0.8%
Q1 2010+3.0%

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