Barrett Business Services, Inc. (BBSI) reported strong financial results for the fourth quarter and full year ended December 31, 2024. For Q4 2024, revenues increased 10% to $304.8 million compared to $276.7 million in Q4 2023. Net income for the quarter rose 15% to $16.8 million, or $0.63 per diluted share, up from $14.6 million, or $0.54 per diluted share, in the prior year.
Full-year 2024 revenues increased 7% to $1.14 billion from $1.07 billion in 2023, with total gross billings growing 8% to $8.33 billion. Net income for the full year was $53.0 million, or $1.98 per diluted share, an increase of 5% from $50.6 million, or $1.85 per diluted share, in 2023. These results were driven by a 5.2% increase in average worksite employees in Q4 and a 4.2% increase for the full year, along with high client retention and strong performance from the BBSI Benefits offering.
BBSI's workers' compensation expense as a percent of gross billings was 2.3% in Q4 2024 and 2.4% for the full year, benefiting from favorable prior year liability and premium adjustments of $2.4 million and $18.5 million, respectively. The company maintained a debt-free balance sheet with $121.9 million in unrestricted cash and investments as of year-end.
For 2025, BBSI provided initial guidance, projecting gross billings growth between 7% and 9% and average worksite employee growth between 4% and 6%. Gross margin as a percentage of gross billings is expected to range from 2.85% to 3.10%, with an effective annual tax rate between 26% and 27%. The company also repurchased $7 million of stock in Q4 and confirmed its quarterly dividend of $0.08 per share.
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