Company: NSP
Filing Date: 2025-04-29
Form Type: 10-Q
Source: 0001000753-25-000023
Chunk: 34

Company: INSPERITY, INC.
Filing Date: 2025-04-29
Form: 10-Q
Item: Item 7
Chunk 34
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ash compensation expense over the requisite service period of time-based and performance-based awards.

•Commissions — Commissions expense consists primarily of amounts paid to sales managers and other sales personnel, including business performance advisors (“BPAs”), as well as channel referral fees. Commissions are based on new accounts sold and a percentage of revenue generated by such personnel.

•Advertising — Advertising expense primarily consists of media advertising and other business promotions in our current and anticipated sales markets.

•General and administrative expenses — Our general and administrative expenses primarily include:  

◦rent expenses related to our service centers and sales offices

◦outside professional service fees related to legal, consulting and accounting services

◦administrative costs, such as postage, printing and supplies

◦employee travel and training expenses

Insperity | 2025 First Quarter Form 10-Q27

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

◦facility costs, including repairs and maintenance

◦technology costs, including software-as-a-service (“SaaS”) subscription costs, amortization of SaaS implementation costs and costs related to our strategic partnership with Workday, Inc.

•Depreciation and amortization — Depreciation and amortization expense is primarily a function of our capital investments in corporate facilities, service centers, sales offices, software development, and technology infrastructure.

First Quarter 2025 Compared to First Quarter 2024

The following table presents certain information related to our operating expenses:

Three Months Ended March 31,per WSEE(in millions, except per WSEE)20252024% Change20252024% ChangeSalaries$142 $140 1 %$155 $154 1 %Stock-based compensation11 10 10 %12 11 9 %Commissions11 12 (8)%12 13 (8)%Advertising7 7 — 8 8 — General and administrative:Amortization of SaaS implementation costs2 3 (33)%2 3 (33)%Workday SaaS licensing and implementation expense6 4 50 %7 4 75 %All other general and administrative52 50 4 %56 55 2 %Total general and administrative60 57 5 %65 62 5 %Depreciation and amortization11 11 — 12 12 — Total operating expenses$242 $237 2 %