Barrett Business Services staffing revenue up 2%, 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. This has been coupled with continued favorable performance from our workers’ compensation program, which reflected our new fully insured model for the entire quarter.”

The company now expects gross billings will increase from of 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 $600.12 million.

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