Barrett Business Services Inc (BBSI) Q1 2025 Earnings Call Highlights: Record Client Growth and ...

GuruFocus News

Thu, May 8, 2025, 12:34 AM 4 min read

Release Date: May 07, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Barrett Business Services Inc (NASDAQ:BBSI) reported a grounds commencement to the twelvemonth with caller lawsuit income and upselling of caller products exceeding expectations.

• Gross billings accrued by 9.5% implicit the anterior year's quarter, driven by beardown lawsuit retention and a 55% summation successful worksite employees from caller lawsuit additions.

• The institution successfully entered caller markets with an asset-light model, adding implicit 600 caller worksite employees successful the archetypal quarter.

• BBSI's caller wellness security offering, BBSI benefits, gained traction with astir 3,000 caller participants added, and is expected to beryllium accretive to net successful 2025.

• The institution launched a caller applicant tracking system, receiving affirmative feedback from clients for its ratio and integration capabilities.

• Staffing operations declined by 10% implicit the anterior twelvemonth quarter, falling beneath expectations owed to a slowdown successful March.

• Macroeconomic headwinds, including proviso and request imbalances, affected show and varied by geography.

• Despite beardown Q1 results, the institution maintained a cautious outlook for the remainder of the twelvemonth owed to economical uncertainties and imaginable impacts connected lawsuit hiring.

• Investment income decreased by astir $600,000 from the anterior twelvemonth owed to little mean involvement rates.

• The institution reported a nett nonaccomplishment per diluted stock of $0.04, compared to a nett nonaccomplishment of $0.01 per diluted stock successful the year-ago quarter, attributed to seasonality and payroll taxation expenses.

• Warning! GuruFocus has detected 5 Warning Sign with VECO.

Q: Can you supply an estimation of what percent of your clients person nonstop tariff exposure, and however mightiness this interaction them? A: (CEO) We chiefly woody with work businesses, specified arsenic contractors and trades, which person indirect vulnerability to tariffs. Some of their materials oregon supplies mightiness outgo more, but we don't person important manufacturing clients. In Southern LA oregon Long Beach, we person immoderate trucking and logistics businesses that person slowed down owed to less ships coming successful from China. Overall, the interaction is not material.

Q: Is determination an yearly extremity for the fig of caller carnal bureau locations you program to open? A: (CEO) We don't person a acceptable fig of carnal locations to unfastened annually. It depends connected marketplace development. Some markets make faster than others. We program to unfastened caller locations successful Dallas, Chicago, and Nashville by aboriginal Q3, and perchance 1 much by the extremity of the year. The determination is based connected concern consciousness and justifying the expense.