Barrett Business Services revenue rises 8.5%, gross billings up

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November 05, 2021

Barrett Business Services Inc. (NASDAQ: BBSI) reported revenue rose 8.5% year over year in the third quarter. Third-quarter staffing division revenue rose 1.9% to $29.0 million, while professional employer organization net revenue rose 9.5% to $217.0 million.

Gross billings were up 12% to $1.69 billion at the Vancouver, Washington-based provider of staffing and PEO services, primarily due to an 8% increase in average worksite employees and higher average billings per WSE.

(US$ thousands) Q3 2021 Q3 2020 % change
PEO service fee revenue $217,972 $199,082 9.5%
Staffing services revenue $28,978 $28,431 1.9%
Total revenue $246,950 $227,513 8.5%
Gross margin $60,235 $59,234 1.7%
Gross margin percentage 24.4% 26.0%  
Net income $14,929 $18,511 -19.4%

“Our third quarter results exceeded our expectations and are reflective of the strength of our client base,” said BBSI President and CEO Gary Kramer. “Our small and medium-sized business customers continue to navigate the Covid-19 recovery, and we have seen continued growth in WSEs and average billing per WSE across every region, leading us once again to raise our full-year outlook for gross billings and WSE growth.”

The company now expects gross billings will increase from 9% to 10% for the full year, up from 6% to 8% in the prior outlook. In addition, the average number of worksite employees is now expected to increase 3% to 5%, up from the prior outlook of a 2% to 4% increase.

Share price and market cap

Shares in Barrett Business Services were up 4.57% to $83.03 as of 11:23 a.m. Eastern time today; they were 4.37% below their 52-week high set on Nov. 3, according to The company had a market cap of $600.1 million.

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