NYSE$NSP

Insperity Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Insperity's Q3 2021 financial performance was solid, marked by double-digit unit growth and strategic cost management.

Insperity reported a 20% increase in revenues to $1.2 billion and an 11% increase in average worksite employees (WSEEs) paid. Net income was $27.3 million, with diluted EPS at $0.70. Adjusted EBITDA reached $60.1 million, and adjusted EPS was $0.89.

  • Q3 average number of WSEEs paid and revenues increased by 11% and 20%, respectively.
  • Q3 net income was $27.3 million and diluted EPS was $0.70.
  • Q3 adjusted EBITDA was $60.1 million and adjusted EPS was $0.89.
  • Client retention remained high at 99% for the quarter.

Headline financials

Total Revenue

$1.21B

Previous: $1.01B+20.0%
EPS (adj)

$0.89

Previous: $0.91-2.2%
Average Worksite Employees Paid

257.6K

Previous: 231.8K+11.1%
Gross Billings

$7.99B

No prior period
Capital Expenditures

-$23.6M

Previous: -$68.8M+65.7%
Free Cash Flow

$3.69M

Previous: -$48.8M+107.6%
Net Income

$27.3M

Previous: $20M+36.4%
Operating Income

$39.6M

Previous: $28.8M+37.6%
Gross Profit

$198M

Previous: $185M+7.3%
Cash & Equivalents

$468M

Previous: $372M+25.7%
Total Assets

$1.73B

Previous: $1.52B+13.8%

Revenue & EPS history

Insperity · Revenue · Quarterly

$1.21B

Q3 2021+20%vs Q3 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Insperity provided updated guidance for Q4 2021 and the full year 2021. The company expects average WSEEs paid to be between 265,500 and 268,000 for Q4 and between 250,100 and 250,600 for the full year. Adjusted EPS is projected to be between $0.61 and $0.81 for Q4 and between $4.25 and $4.46 for the full year. Adjusted EBITDA is expected to be between $45 million and $56 million for Q4 and between $271 million and $282 million for the full year.

Tailwinds

  • Q4 2021 average WSEEs paid year-over-year increase of 11%—12%
  • Q4 2021 adjusted EPS year-over-year increase of 24%—65%
  • Q4 2021 adjusted EBITDA year-over-year increase of 19%—48%
  • Full Year 2021 average WSEEs paid year-over-year increase of 6.8%—7%
  • Full Year 2021 adjusted EBITDA between $271 million and $282 million

Headwinds

  • Full Year 2021 adjusted EPS year-over-year decrease of (8)%—(4)%
  • Full Year 2021 adjusted EBITDA year-over-year decrease of (6)%—(2)%
  • Net income between $18 million and $26 million for Q4 2021
  • Diluted net income per share of common stock between $0.46 and $0.66 for Q4 2021
  • Net income between $133 million and $141 million for full year 2021

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 2021

Historical avgQ3 2021

-1.2%

Avg return

Earnings day

-2.5%

Avg return

5 days after

-2.1%

Avg return

30 days after

50%

34 / 68 earnings

Positive

+17.6%

Q1 2016

Best reaction

-34.2%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.4%-23.2%-7.8%
Q4 2025-10.9%-23.7%-40.0%
Q3 2025-18.0%-24.9%-20.3%
Q1 2025-14.5%-14.9%-17.1%
Q4 2024+16.2%+26.0%+26.0%
Q3 2024-7.3%-5.9%-2.8%
Q2 2024-6.9%-9.1%-8.5%
Q1 2024+0.2%-0.2%-8.0%
Q4 2023-14.8%-18.4%-10.7%
Q3 2023+7.8%+12.5%+17.9%
Q2 2023-18.1%-20.0%-13.9%
Q1 2023+1.6%+2.3%-8.0%
Q4 2022+5.6%+6.6%+6.1%
Q3 2022+12.6%+5.7%+10.6%
Q2 2022-0.8%-0.4%-0.7%
Q1 2022+9.6%+7.2%-0.5%
Q4 2021-17.0%-14.6%-21.5%
Q3 2021-1.4%-2.6%-9.8%
Q2 2021+1.4%+2.9%+11.6%
Q1 2021+0.4%+1.5%+1.4%
Q4 2020-9.3%-12.5%+6.7%
Q3 2020+11.0%+13.5%+13.5%
Q2 2020+3.9%+4.4%+4.1%
Q1 2020+12.6%+15.4%+22.3%
Q4 2019-17.1%-15.0%-41.9%
Q3 2019-34.2%-36.0%-28.1%
Q2 2019-26.4%-29.1%-33.7%
Q1 2019-2.4%-1.0%-7.8%
Q4 2018+12.1%+17.0%+11.4%
Q3 2018+1.2%+3.2%-8.9%
Q2 2018+7.0%+11.9%+26.0%
Q1 2018+7.7%+8.3%+19.9%
Q4 2017+7.5%+10.0%+20.5%
Q3 2017+8.4%+9.9%+20.7%
Q2 2017+11.0%+11.6%+6.4%
Q1 2017-4.7%-9.3%-17.4%
Q4 2016+15.5%+14.9%+22.7%
Q3 2016-13.6%-10.0%-5.5%
Q2 2016-12.8%-12.8%-16.5%
Q1 2016+17.6%
Q4 2015+12.6%
Q3 2015-7.1%
Q2 2015-6.0%
Q1 2015+11.9%
Q4 2014+8.1%
Q3 2014+4.0%
Q2 2014-4.5%
Q1 2014-1.1%
Q4 2013-15.7%
Q3 2013-8.7%
Q2 2013+1.3%
Q1 2013+0.5%
Q4 2012-16.1%
Q3 2012+7.1%
Q2 2012-8.6%
Q1 2012-7.9%
Q4 2011+3.7%
Q3 2011-1.8%
Q2 2011-6.4%
Q1 2010+6.4%
Q1 2011+1.7%
Q4 2008-2.3%
Q4 2010-2.3%
Q3 2009+6.4%
Q3 2010+6.4%
Q2 2010-3.2%
Q4 2009-3.2%
Q2 2009-3.2%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro