Staffing and PEO provider Barrett Business Services reports revenue down 5% in Q4

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Barrett Business Services Inc. (NASDAQ: BBSI), a provider of staffing and PEO services, reported revenue fell 4.9% year over year in the fourth quarter.

The Vancouver, Washington-based firm reported PEO fee revenue fell 3.7% while staffing revenue fell 12.7%.

President and CEO Gary Kramer said the company performed better than expected despite a challenging year. “While business volume and earnings were impacted by the pandemic, I am extremely proud of the work that our teams performed throughout the year.”

(US$ thousands) Q4 2020 Q4 2019 % change
PEO service fee revenue $204,268 $212,033 -3.7%
Staffing services revenue $28,908 $33,119 -12.7%
Total revenue $233,176 $245,152 -4.9%
Gross margin $50,979 $54,023 -5.6%
Gross margin percentage 21.9% 22.0%  
Net income $7,151 $11,714 -39.0%

The average number of PEO worksite employees at Barrett Business Services fell 6% in the fourth quarter.

Full-year results

(US$ thousands) 2020 2019 % change
PEO service fees revenue $777,430 $819,873 -5.2%
Staffing services revenue $103,394 $122,438 -15.6%
Total revenue $880,824 $942,311 -6.5%
Gross margin $182,907 $208,253 -12.2%
Gross margin percentage 20.8% 22.1%  
Net income $33,765 $48,292 -30.1%

Share price and market cap

Shares in Barrett Business Services were down 4.81% to $70.92 as of 1:17 p.m. Eastern time; they had a new 52-week high today when they reached at $77.74, according to FT.com. The company had a market cap of $569.7 million.