Barrett Business Services Inc. (NASD: BBSI) reported net revenue rose 23.5% year over year in the first quarter with increases in both PEO and temporary staffing revenue.

However, gross margin narrowed and net loss widened at the Vancouver, Wash.-based company, which historically incurs losses in the first quarter due to the higher effective payroll taxes at the beginning of each year.

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“The momentum we experienced in our business at the end of 2014 has continued into the first quarter,” said President and CEO Michael Elich. “Our gross revenue expanded by 23%, supported by 7.6% same-store sales growth. Additionally, we experienced an approximate net build of 229 new clients. This continued build speaks to the strength of our referral relationships, as well as to the value our operational teams deliver in support of our clients.”

“We are maintaining our rolling 12-month outlook due to the stability of our current client base, the strength of our new business channels and the scalability of our operations,” Elich said. “In fact, the strategic investments in our infrastructure over the past several years have laid the groundwork for our performance and we are confident these investments will help BBSI’s brand continue to mature in the marketplace.”

Revenue by segment

Guidance

BBSI expects gross revenues for the next 12-month period to increase approximately 18%. Included in this expectation is a high single-digit contribution from same-store sales growth as well as growth from new business consistent with current trends.

Share price and market cap

Shares in Barrett rose 6.48% in early afternoon trading today to $43.30. The company had a market cap of approximately $309.79 million, according to Yahoo!