Company: NSP
Filing Date: 2025-02-11
Form Type: 10-K
Source: 0001000753-25-000008
Chunk: 63

Company: INSPERITY, INC.
Filing Date: 2025-02-11
Form: 10-K
Item: Item 7
Chunk 63
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(1)Revenues are comprised of gross billings less WSEE payroll costs as follows:

Year Ended December 31,(in millions)202420232022Gross billings$43,752 $43,141 $40,127 Less: WSEE payroll cost37,171 36,655 34,188 Revenues$6,581 $6,486 $5,939 

(2)Please read “Non-GAAP Financial Measures” for a reconciliation of the non-GAAP financial measures to their most directly comparable financial measures calculated and presented in accordance with GAAP.

(3)Revenues per WSEE per month are comprised of gross billings per WSEE per month less WSEE payroll costs per WSEE per month as follows:

  432024   Form 10-K

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

Year Ended December 31,(per WSEE per month)202420232022Gross billings$11,866 $11,519 $11,335 Less: WSEE payroll cost10,081 9,787 9,657 Revenues$1,785 $1,732 $1,678 

Key Operating Metrics

We monitor certain key metrics to measure our performance, including:

•WSEEs

•Adjusted EBITDA

•Adjusted EPS

Our growth in the number of WSEEs paid is affected by three primary sources: new client sales, client retention and the net change in WSEEs paid at existing clients through new hires and employee terminations.

•During 2024, the average number of WSEEs paid from new client sales increased 2% from 2023. Average client retention declined from 83% in 2023 to 81% in 2024, while the net change in our client base remained positive, although lower than 2023.

•During 2023, the average number of WSEEs paid from new client sales and the net change in our client base declined compared to 2022. Average client retention also declined from 85% in 2022 to 83% in 2023. 

Average WSEEs Paid and Year-over-Year Growth PercentageNet Income and Year-over-Year Growth Percentage(in millions)EPS and Year-over-Year Growth Percentage(amounts per share)

  442024   Form 10-K

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANC