Insperity, Inc. (NYSE:NSP) Q2 2023 Earnings Conference Call August 1, 2023 8:30 AM ET
Company Participants
Paul Sarvadi - Chairman and Chief Executive Officer
Douglas Sharp - Executive Vice President and Finance, Chief Financial Officer
Conference Call Participants
Andrew Nicholas - William Blair
Tobey Sommer - Truist Securities
Mark Marcon - Robert W. Baird & Co.
Jeff Martin - ROTH
Operator
Good morning. My name is Janie and I will be your conference operator today. I would like to welcome everyone to the Insperity Second Quarter 2023 Earnings Conference Call. Currently, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.
At this time, I would like to introduce today's speakers. Joining us, are Paul Sarvadi, Chairman of the Board and Chief Executive Officer; and Douglas Sharp, Executive Vice President of Finance, Chief Financial Officer and Treasurer.
At this time, I'd like to turn the call over to Douglas Sharp. Mr. Sharp, please go ahead.
Douglas Sharp
Thank you. We appreciate you joining us. Let me begin by outlining our plan for this morning's call. First, I'm going to discuss the details behind our second quarter 2023 financial results. Paul will then comment on the quarter and our plan over the remainder of the year. I will return to provide our financial guidance for the third quarter and an update to the full year guidance. And then we will end the call with a question-and-answer session.
Now before we begin, I would like to remind you that Mr. Sarvadi or I, may make forward-looking statements during today's call, which are subject to risks, uncertainties and assumptions. In addition, some of our discussion may include non-GAAP financial measures. For more detailed discussions of the risks and uncertainties that could cause actual results to differ materially from any forward-looking statements and reconciliations of non-GAAP financial measures, please see the company's public filings, including the Form 8-K filed today, which are on our website.
Now, let's discuss our second quarter ‘23 financial results in which we effectively executed on our plan and sales, service, pricing in other areas of the business, however, experienced the shortfall from our forecasted earnings due to substantially higher healthcare costs. We reported adjusted EPS of $0.64 and adjusted EBITDA of $51 million for the quarter. As for our growth metric, the average number of paid worksite employees increased by 7.2% over Q2 of 2022, which was just below the midpoint of our guidance as net hiring by our clients came in slightly lower than expected. Worksite employees paid from a combination of sales and client retention came in on target.