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Barrett Q2 revenue up 5.7% with PEO business driving growth

Barrett Q2 revenue up 5.7% with PEO business driving growth

August 1, 2024
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Second-quarter revenue rose 5.7% at Barrett Business Services (NASDAQ: BBSI) to $279.7 million, with growth driven by the firm’s professional employer organization business.

Barrett’s PEO revenue rose 6.4% year over year to $259.9 million at the Vancouver, Washington-headquartered company. The average number of PEO employers was up 3.7% in the quarter to 128,734.

In temporary staffing, the company’s other business line, revenue fell 3.0% in the second quarter to $19.8 million.

“Our strong performance continued through the second quarter, with gross billings growth and new client adds keeping us on track to meet our full-year financial objectives,” President and CEO Gary Kramer said in a press release.

Barrett Business Services - Q2 2024

(US$ thousands)

Q2 2024

Q2 2023

% change

Revenue

279,651

264,630

5.7%

Gross margin

67,897

67,046

1.3%

Gross margin percentage

24.3%

25.3%

-

Net income

16,701

17,016

-1.9%

Revenue by Business Line

(US$ thousands)

Q2 2024

Q2 2023

% change

PEO services

259,887

244,256

6.4%

Staffing services

19,764

20,374

-3.0%

Guidance

Barrett forecast gross billings growth of between 6% and 8% for full-year 2024 and growth of 4% to 5% in the average number of worksite employees.

Share Price

Shares in Barrett were up 0.25% to $36.53 as of 12:32 p.m. Eastern time today. They set a new 52-week high today when they reached $37.00.