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View All NewsBarrett Q1: PEO service fees up while staffing revenue falls
First-quarter revenue rose 6.7% at Barrett Business Services Inc. (NASD: BBSI), a Vancouver, Wash.-based provider of PEO and staffing services. PEO service fees rose 9.7%; however, staffing revenue fell 7.3%.
| (US$ thousands) | Q1 2018 | Q1 2017 | % change |
| Revenue | $223,975 | $209,997 | 6.7% |
| Gross margin | $16,262 | $10,450 | 55.6% |
| Gross margin percentage | 7.3% | 5.0% | |
| Net loss | ($9,123) | ($11,227) | nm |
The company noted it historically incurs losses in the first quarter due to the higher effective payroll taxes at the beginning of the year
Quote
“We continue to evolve our value proposition in support of the small business owner, and we are seeing validation of those efforts both through client referrals and expanded referral channels,” said President and CEO Michael Elich. “As evidence of this, we added 152 net new clients in the quarter.”
Revenue by segment
| (US$ thousands) | Q1 2018 | Q1 2017 | % change |
| Professional employer service fees | $188,961 | $172,209 | 9.7% |
| Staffing services | $35,014 | $37,788 | -7.3% |
Share price and market cap
Shares in Barrett Business Services fell 3.20% to $85.16 as of 1:25 p.m. Eastern time. The company had a market cap of $622.00 million.