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Barrett Business Services revenue increases 12.4% in second quarter

August 04, 2022

Barrett Business Services Inc. (NASDAQ: BBSI), a provider of staffing and PEO services, reported revenue rose 12.4% in the second quarter. Staffing revenue rose 21.4% at the Vancouver, Washington-based firm.

(US$ thousands) Q2 2022 Q2 2021 % change
Revenue                 262,179                 233,203 12.4%
Gross margin                   66,885                   57,473 16.4%
Gross margin percentage 25.5% 24.6%  
Net income                   18,014                   17,090 5.4%

“Our strong performance trends have continued across the business, and we have once again exceeded our expectations for the quarter,” Barrett President and CEO Gary Kramer said.

Total gross billings rose 14.2% to $1.83 billion in the second quarter. Gross billings include direct payroll costs for the company’s PEO business.

Barrett also noted the average number of PEO worksite employees in the quarter rose 8.8% to 122,234.

Revenue by business line

(US$ thousands) Q2 2022 Q2 2021 % change
PEO service fee revenue                 232,174                 208,496 11.4%
Staffing services revenue                   30,005                   24,707 21.4%

Guidance

Barrett forecast gross billings for full-year 2022 to rise by between 11% and 13%, an increase from prior guidance of between 10% and 12%.

Average number of worksite employees is forecast to grow by between 3.05% and 3.15% for the year. That’s also up from the previous forecast, which had called for an increase of between 4% and 6%.

Share price and market cap

Shares in Barrett were up 1.59% to $82.03 as of 12:20 p.m. Eastern time; they were 5.52% below their 52-week high, according to FT.com. The company had a market cap of $591.1 million.