Latest news with #PaulSarvadi
Globe and Mail
4 days ago
- Business
- Globe and Mail
Insperity Announces Dual Listing on NYSE Texas
Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions, today announced the dual listing of its common stock on NYSE Texas, the fully electronic equities exchange headquartered in Dallas. Insperity will maintain its primary listing on the New York Stock Exchange and trade with the same 'NSP' ticker symbol on NYSE Texas. 'We're proud to be a Founding Member of this innovative new platform in Texas, the state where Insperity began and has thrived since 1986,' said Paul Sarvadi, Insperity's chairman and chief executive officer. 'Insperity was founded to serve small and midsize businesses. The state's focus on entrepreneurship and business growth, including its long-standing support of the PEO industry, makes this dual listing a natural extension of our mission to help businesses succeed so communities prosper.' 'Insperity's premier offerings of scalable HR solutions make them a strong addition to our NYSE Texas community of Founding Members,' said Chris Taylor, Chief Development Officer, NYSE Group. To learn more, please visit About Insperity Since 1986, Insperity's mission has been to help businesses succeed so communities prosper. Offering a suite of the most comprehensive, scalable HR solutions available in the marketplace, Insperity is defined by an unrivaled breadth and depth of services and level of care. Through an optimal blend of premium HR service and technology, Insperity delivers the administrative relief, reduced liabilities and better benefit solutions that businesses need to drive performance and growth. With 2024 revenues of $6.6 billion and more than 100 sales offices throughout the U.S., Insperity is currently making a difference in thousands of businesses and communities nationwide. For more information, visit
Business Wire
4 days ago
- Business
- Business Wire
Insperity Announces Dual Listing on NYSE Texas
HOUSTON--(BUSINESS WIRE)-- Insperity, Inc. (NYSE: NSP), a leading provider of human resources and business performance solutions, today announced the dual listing of its common stock on NYSE Texas, the fully electronic equities exchange headquartered in Dallas. Insperity will maintain its primary listing on the New York Stock Exchange and trade with the same 'NSP' ticker symbol on NYSE Texas. 'We're proud to be a Founding Member of this innovative new platform in Texas, the state where Insperity began and has thrived since 1986,' said Paul Sarvadi, Insperity's chairman and chief executive officer. 'Insperity was founded to serve small and midsize businesses. The state's focus on entrepreneurship and business growth, including its long-standing support of the PEO industry, makes this dual listing a natural extension of our mission to help businesses succeed so communities prosper.' 'Insperity's premier offerings of scalable HR solutions make them a strong addition to our NYSE Texas community of Founding Members,' said Chris Taylor, Chief Development Officer, NYSE Group. To learn more, please visit About Insperity Since 1986, Insperity's mission has been to help businesses succeed so communities prosper. Offering a suite of the most comprehensive, scalable HR solutions available in the marketplace, Insperity is defined by an unrivaled breadth and depth of services and level of care. Through an optimal blend of premium HR service and technology, Insperity delivers the administrative relief, reduced liabilities and better benefit solutions that businesses need to drive performance and growth. With 2024 revenues of $6.6 billion and more than 100 sales offices throughout the U.S., Insperity is currently making a difference in thousands of businesses and communities nationwide. For more information, visit
Yahoo
13-05-2025
- Business
- Yahoo
NSP Q1 Earnings Call: Higher Benefits Costs, Cautious Outlook, and Strategic Focus on Workday Partnership
HR outsourcing provider Insperity (NYSE:NSP) met Wall Street's revenue expectations in Q1 CY2025, with sales up 3.4% year on year to $1.86 billion. Its non-GAAP profit of $1.56 per share was 23% below analysts' consensus estimates. Is now the time to buy NSP? Find out in our full research report (it's free). Revenue: $1.86 billion vs analyst estimates of $1.87 billion (3.4% year-on-year growth, in line) Adjusted EPS: $1.56 vs analyst expectations of $2.02 (23% miss) Adjusted EBITDA: $102 million vs analyst estimates of $127.8 million (5.5% margin, 20.2% miss) Management lowered its full-year Adjusted EPS guidance to $2.76 at the midpoint, a 21.8% decrease EBITDA guidance for the full year is $217.5 million at the midpoint, below analyst estimates of $259.4 million Operating Margin: 3.7%, down from 6% in the same quarter last year Free Cash Flow was -$449 million, down from $26 million in the same quarter last year Market Capitalization: $2.6 billion Insperity's first quarter results reflected a combination of modest year-over-year revenue growth and a sharp increase in benefits costs, which management attributed to a rise in large medical claims and accelerated payments across both current and prior periods. CEO Paul Sarvadi described a "sudden reversal of optimism" among small and mid-sized business clients, linked to recent government policy initiatives and tariffs, which led to delayed or canceled client onboarding late in the quarter. Looking ahead, management lowered full-year profit guidance and flagged that elevated healthcare claims are likely to persist, though they have begun targeted pricing actions and are evaluating benefit plan design changes for 2026. Insperity also highlighted progress on its Workday strategic partnership, viewing it as a significant long-term growth driver. CFO Jim Allison emphasized that current challenges are being factored into conservative forecasts in order to position the company for improved profitability next year. Insperity's management spent considerable time on the call detailing the operational and market factors that shaped the quarter's underperformance versus expectations, particularly the impact of higher healthcare benefit costs and shifts in client sentiment. Benefits Cost Acceleration: Management reported an 8.4% year-over-year increase in benefits cost per covered employee, driven by a spike in large medical claims and accelerated claim payments. CFO Jim Allison noted this dynamic was "unprecedented" in its breadth across current and prior claim periods. Client Sentiment Shift: CEO Paul Sarvadi cited a 'dramatic change in sentiment' among the company's small and mid-sized business customers, attributed to tariffs and economic policy changes. This shift led to both delayed and canceled client onboarding, impacting worksite employee growth. Retention Remains High: Despite market turbulence, client retention reached 91% for the quarter, which Sarvadi described as at the "high end of our historical range." This was supported by ongoing investments in sales and service realignment. Pricing and Plan Design Adjustments: To address higher benefits costs, Insperity has already begun selective pricing increases for certain accounts and is considering plan design changes for 2026. The company believes these actions will realign pricing with costs by next year. Workday Partnership Progress: The company launched its internal Workday platform in March and finalized a go-to-market plan for a joint client solution with Workday. Management expects this partnership to expand Insperity's reach into the mid-market segment and potentially double its mid-market business over time. Management expects continued headwinds from elevated healthcare costs and uncertain small business sentiment to weigh on profitability through the remainder of the year, while strategic initiatives—including pricing actions and the Workday partnership—are positioned as key levers for future growth and margin improvement. Benefits Cost Management: The company is implementing targeted pricing increases and evaluating benefit plan changes, aiming to mitigate higher healthcare claim trends and restore gross profit margins by 2026. Workday Joint Solution Launch: Insperity believes its joint offering with Workday, expected to be available in 2026, could drive meaningful mid-market client growth and enhance retention, providing a new source of revenue and margin expansion. Economic Policy Uncertainty: Management highlighted ongoing uncertainty in the macroeconomic environment, especially among small and mid-sized businesses, as a risk to client hiring and onboarding momentum for the rest of the year. Andrew Nicholas (William Blair): Asked about the duration and quantification of client onboarding pauses. Management explained the "shock factor" from recent policy changes but observed some moderation as clients resumed decision-making. Andrew Nicholas (William Blair): Inquired about the cadence and future trajectory of Workday partnership costs. CFO Jim Allison said costs will remain steady in 2025 but should decline after product launch, with some expenses capitalizable over time. Tobey Sommer (Truist): Questioned what macro policy changes could restore client confidence. CEO Paul Sarvadi suggested regulatory clarity and stable tax policy could quickly improve small business sentiment. Mark Marcon (Baird): Sought clarity on the timing and client receptivity to pricing adjustments due to higher healthcare costs. Management indicated most pricing changes would be phased in during client renewals throughout the year, with full alignment expected by early 2026. Jeff Martin (ROTH Capital Partners): Probed the profitability potential of the Workday joint solution. Management expects the offering to command higher upfront and ongoing pricing, projecting it as a future margin contributor though specifics are still being assessed. In the coming quarters, the StockStory team will be monitoring (1) whether Insperity's targeted pricing actions and benefit plan adjustments start to moderate healthcare cost pressures, (2) signs of stabilization or renewed growth in worksite employee onboarding as small business sentiment evolves, and (3) measurable progress in the rollout and early adoption of the Workday joint client solution. Execution on these fronts will be central to tracking the company's path toward margin recovery and long-term growth. Insperity currently trades at a forward P/E ratio of 18.7×. In the wake of earnings, is it a buy or sell? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
11-02-2025
- Business
- Yahoo
Insperity Inc (NSP) Q4 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...
Adjusted EPS (Q4 2024): $0.05 per share. Adjusted EBITDA (Q4 2024): $23 million. Average Paid Worksite Employees (Q4 2024): 309,093, a decrease of 2% from Q4 2023. Gross Profit per Worksite Employee (Q4 2024): $235 per month. Total Gross Profit (Q4 2024): Declined 2% from Q4 2023. Operating Expenses (Q4 2024): Increased 17% over Q4 2023. Adjusted EBITDA (Full Year 2024): $270 million. Adjusted EPS (Full Year 2024): $3.58. Cash Dividends Paid (Q4 2024): $22 million. Shares Repurchased (Q4 2024): 146,000 shares at a cost of $12 million. Adjusted Cash (End of Q4 2024): $134 million. Credit Facility Availability (End of Q4 2024): $280 million. Benefits Cost Trend (Full Year 2024): 4.3%. Operating Expenses (Full Year 2024): Increased 14% over 2023. Adjusted EBITDA Guidance (Full Year 2025): $240 million to $285 million. Adjusted EPS Guidance (Full Year 2025): $3.10 to $3.95. Adjusted EBITDA Guidance (Q1 2025): $121 million to $135 million. Adjusted EPS Guidance (Q1 2025): $1.89 to $2.15. Income Tax Rate (Q1 2025): 30%. Income Tax Rate (Remainder of 2025): 28.5%. Warning! GuruFocus has detected 3 Warning Signs with NSP. Release Date: February 10, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Insperity Inc (NYSE:NSP) reported solid fourth quarter results with adjusted EPS of $0.05 per share and adjusted EBITDA of $23 million, exceeding the midpoint of their expected range. The fall campaign resulted in a 37% increase in worksite employees paid from new clients compared to Q4 2023, with client retention averaging 99% for the quarter. Gross profit per worksite employee in Q4 was $235 per month, slightly above expectations due to strong pricing. The company successfully executed a fall sales and client retention campaign, achieving a record-setting quarter in book sales, up 8% over the prior year. Insperity Inc (NYSE:NSP) continued to return capital to shareholders through dividends and share repurchases, paying $22 million in cash dividends and repurchasing 146,000 shares at a cost of $12 million in Q4. The average number of paid worksite employees was slightly above the low end of the forecasted range at 309,093, a decrease of 2% from Q4 2023 due to weak client hiring. Total gross profit declined 2% from Q4 2023 on the 2% decrease in paid worksite employees. Operating expenses increased 17% over Q4 2023, primarily due to investments in the Workday strategic partnership. The benefits cost trend for 2024 was 4.3%, which was just under the low end of the expected range, indicating higher costs. The weak hiring environment in 2024 resulted in nearly flat net growth in worksite employees, the lowest level of hiring by clients in at least the last 20 years, excluding recession years. Q: Can you discuss the progress and expectations for the Workday partnership, particularly regarding sales leads and client retention? A: Paul Sarvadi, CEO, explained that while initial lead flow was slower than anticipated, significant progress has been made in the go-to-market strategy. The partnership is now integrated into the incentive structures, which should enhance lead flow. The partnership has already positively impacted client retention, especially among larger accounts, by generating interest in the new joint solution. Q: How are the operating expenses related to the Workday partnership expected to be distributed throughout the year? A: James Allison, CFO, stated that operating expenses related to Workday are expected to remain relatively steady throughout the year, with a slight drop-off after completing the corporate component. The guidance for 2026 remains consistent with previous estimates, with some internal resources expected to return to other projects. Q: How do you anticipate the increase in healthcare cost trends will affect new sales and client retention? A: Paul Sarvadi, CEO, noted that Insperity has been conservative with pricing to anticipate market cost trends. Despite a more significant cost trend built in for this year, the company's pricing remains competitive, and they are well-positioned in the market. Q: Can you elaborate on the sales optimization strategy and its expected impact? A: Paul Sarvadi, CEO, explained that the sales optimization strategy involves focusing business performance advisors (BPAs) on specific HR solutions, allowing for more targeted sales efforts. This specialization is expected to improve sales efficiency and accountability, with positive results anticipated this year. Q: How did the Workday partnership influence mid-market retention during the fourth quarter? A: Paul Sarvadi, CEO, highlighted that the partnership significantly improved mid-market retention, with a 62% improvement over the previous year. The development of the Workday partnership and opportunities like beta testing have been key factors in retaining large accounts. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
