Insperity, Inc. (NYSE:NSP) Q2 2022 Earnings Conference Call August 1, 2022 5:00 PM ET
Company Participants
Paul Sarvadi - Chairman and CEO
Douglas Sharp - SVP, Finance and CFO
Conference Call Participants
Andrew Nicholas - William Blair
Tobey Sommer - Truist Securities
Jeff Martin - Roth Capital
Andre Childress - Baird
Operator
Good afternoon. My name is Matthew and I will be your conference operator today. I would like to welcome everyone to the Insperity Second Quarter 2022 Earnings Conference Call. [Operator Instructions]
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, Senior 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 evening's call. First, I'm going to discuss the details behind our second quarter 2022 financial results. I will then comment on the key drivers behind our Q2 results and our outlook 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. We will then 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 years. For a more detailed discussion 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 file today, which are available on our website.
Now, let's discuss our strong second quarter results, in which we achieved a 25% increase in adjusted EBITDA and a 27% increase in adjusted EPS on 19% growth in the average number of paid worksite employees. Q2 paid worksite employee growth of 19.4% was above the high end of our forecasted range with a 4.3% sequential increase over Q1 of this year. Our growth momentum was driven by high client retention, averaging 99% for the quarter, continued strong hiring by our clients despite the tight labor market and worksite employees paid from new client sales above our Q2 forecast.