Insperity, Inc. (NYSE:NSP) Q2 2024 Earnings Conference Call August 1, 2024 8:30 AM ET

Company Participants

Douglas Sharp - Executive Vice President of Finance, Chief Financial Officer & Treasurer
Paul Sarvadi - Chairman of the Board & Chief Executive Officer

Conference Call Participants

Andrew Nicholas - William Blair
Mark Marcon - Robert W Baird & Company
Jeff Martin - Roth Capital Partners
Jack Wilson - Truist Securities

Operator

Good morning. My name is Jenny, and I will be your conference operator today. I would like to welcome everyone to the Insperity Second Quarter 2024 Earnings Conference Call. Currently all participants are in a listen-only mode and we will open for questions following the 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 2024 financial results. Paul will then comment on our recent accomplishments including an update on the implementation of our Workday strategic partnership solution and on our outlook for 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 I 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 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 filed today, which are available on our website.

Now let's discuss our second quarter results in which we reported a 34% increase in adjusted EPS over Q2 of 2023 to $0.86 above the high end of our forecasted range and we reported a 29% increase in Q2 adjusted EBITDA to $66 million. The earnings outperformance compared to our expectations was primarily driven by lower than expected benefit costs continued strong pricing and lower operating expenses.