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News / Business / Clark County Business

Barrett Business Services Inc. of Vancouver reports revenue increase

Company sees sales of business management services stabilize

By Sarah Wolf, Columbian staff writer
Published: February 28, 2024, 9:32pm

Sales have stabilized for Barrett Business Services Inc., increasing its revenue in 2023, the Vancouver-based company stated in its latest financial earnings report Wednesday.

As corporate layoffs occurred nationwide, clients pulled back from BBSI, which offers business management services, such as payroll, human resources and workers’ compensation.

Gary Kramer, BBSI CEO, said the company has since seen demand for its services stabilize and hiring return.

“We are successfully selling and servicing BBSI benefits in every one of our markets,” Kramer told investors Wednesday. “Our existing clients are buying and so are our new clients.”

BBSI reported quarterly revenues of $276.7 million, compared with $272 million the prior quarter.

The company reported its quarterly net income increased to $14.6 million, or $2.16 per diluted share, compared with $11.5 million, or $1.64 per diluted share, in the previous quarter.

The company has grown in other parts of the country, seeing sales rise 16 percent last quarter on the East Coast, 6 percent in Southern California and 3 percent in the Pacific Northwest, Kramer said.

BBSI is looking to develop brick-and-mortar offices in three additional U.S. markets, Kramer said.

The company has experienced macroeconomic headwinds with supply and demand imbalances varying by geography, Kramer said.

BBSI brought in $1.07 billion in revenue in its 2023 financial year, up from $1.05 billion in 2022. Net income also increased to $50.6 million, or $7.39 per diluted share, from $47.3 million, or $6.54 per diluted share in 2022.

The company trades as BBSI on the Nasdaq. Its stock closed Wednesday at $115.41 per share, down from its $116 Tuesday closing price.