NYSE$NSP

Insperity Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Insperity's Q4 2021 results were announced, revealing revenue growth but an earnings shortfall due to higher benefit costs driven by pandemic-related utilization.

Insperity's Q4 2021 revenues increased by 22% to $1.3 billion, driven by a 12% increase in paid WSEEs. However, net income and diluted EPS were $9.7 million and $0.25, respectively, due to approximately $27 million in higher benefits costs related to the pandemic. The company ended the year with a solid balance sheet and projects continued strong cash flow in 2022.

  • Q4 2021 revenue increased 22% year-over-year to $1.3 billion.
  • Net income and diluted EPS for Q4 2021 were $9.7 million and $0.25, respectively.
  • Adjusted EBITDA and adjusted EPS for Q4 2021 were $30.4 million and $0.34, respectively.
  • Average WSEEs paid increased 12.4% year-over-year to 268,978.

Headline financials

Total Revenue

$1.29B

Previous: $1.06B+22.3%
EPS (adj)

$0.34

Previous: $0.49-30.6%
Average Worksite Employees Paid

269.0K

Previous: 239.2K+12.4%
Capital Expenditures

$9.3M

Previous: $29.4M-68.3%
Free Cash Flow

$196M

Previous: $210M-6.8%
Net Income

$9.7M

Previous: $4.29M+126.4%
Operating Income

$14.7M

Previous: $7.71M+90.4%
Gross Profit

$171M

Previous: $168M+1.8%
Cash & Equivalents

$576M

Previous: $555M+3.8%
Total Assets

$1.75B

Previous: $1.58B+10.7%
Stock-Based Comp

$40.6M

Previous: $60.1M-32.5%

Revenue & EPS history

Insperity · Revenue · Quarterly

$1.29B

Q4 2021+22.3%vs Q4 2020
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Forward guidance

Insperity provided guidance for Q1 2022 and full year 2022, including average WSEEs paid, adjusted EBITDA, and adjusted EPS.

Tailwinds

  • Q1 2022 average WSEEs paid are expected to be between 275,100 and 277,500, representing an 18.0% to 19.0% year-over-year increase.
  • Full year 2022 average WSEEs paid are expected to be between 287,100 and 292,200, representing a 14.5% to 16.5% year-over-year increase.
  • Q1 2022 adjusted EPS is projected to be between $1.56 and $2.12.
  • Full year 2022 adjusted EPS is projected to be between $3.74 and $4.86.
  • Q1 2022 adjusted EBITDA is expected to be between $95 million and $125 million.

Headwinds

  • Q1 2022 adjusted EPS is expected to decrease between (14)% and 16% year-over-year.
  • Full year 2022 adjusted EPS is expected to decrease between (5)% and 23% year-over-year.
  • Q1 2022 adjusted EBITDA is expected to decrease between (9)% and 20% year-over-year.
  • Full year 2022 adjusted EBITDA is expected to decrease between (2)% and 22% year-over-year.
  • The guidance reflects the impact of ongoing business investments and anticipated economic conditions.

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 2021

Historical avgQ4 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%

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