Insperity ( (NSP) ) has released its Q3 earnings. Here is a breakdown of the information Insperity presented to its investors.
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Insperity, Inc., a prominent provider of human resources and business performance solutions, specializes in delivering comprehensive HR services to small and medium-sized businesses across the United States.
In its latest earnings report for the third quarter of 2024, Insperity announced a net income of $3 million and diluted earnings per share (EPS) of $0.07, alongside an adjusted EPS of $0.39. The company faced challenges with a 2% year-over-year decrease in the average number of worksite employees (WSEEs) paid, which impacted its revenue growth.
Despite the decline in WSEEs, Insperity reported a 1% increase in third-quarter revenue to $1.6 billion, driven by a 3% increase in revenue per WSEE. However, gross profit for the quarter saw an 11% decline to $229 million, partly due to less favorable healthcare claims activity compared to the previous year. The company’s operating expenses rose by 15%, attributable mainly to the implementation of their Workday strategic partnership.
Looking ahead, Insperity’s management remains optimistic about future growth opportunities, focusing on sales and service improvements and leveraging data infrastructure with artificial intelligence. Although the company anticipates higher costs in Q4, it maintains a strategic long-term pricing approach to align price with cost effectively.
Overall, Insperity is positioned to capitalize on its strategic initiatives and partnerships, aiming for growth acceleration in 2025 while navigating current market headwinds.
