Cbiz, Inc. · NYSE:CBZ
Cbiz — Q1 2025 Earnings Presentation
33 slides from Cbiz's earnings presentation, Apr 24, 2025
Slide 1: Investor Presentation First Quarter 2025
Investor Presentation FIRST QUARTER 2025 April 24, 2025 CBIZ.COM | NYSE: CBZ
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than st
Slide 3: Non-GAAP Measures
Non-GAAP Measures To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we also present Adjusted Net Income (Loss), Adjusted Diluted Earnings Per Share (“EPS”), and Adjusted EBITDA, which are non-GAAP measures. These non-GAAP measures are adju
Slide 4: CBIZ is the leading professional services advisor to middle-market businesses
CBIZ, Inc. (NYSE: CBZ) is the leading professional services advisor of its kind to middle-market businesses nationwide. With industry knowledge and expertise in accounting, tax, advisory, benefits, insurance, and technology, CBIZ delivers actionable insights to help clients anticipate what is next a
Slide 5: CBIZ – At a Glance
CBIZ – At a Glance #7 ~$2.8B TOP 100 PRO FORMA ACCOUNTING REVENUE(1) FIRM(2) 10K+ 135K+ EMPLOYEES CLIENTS 160+ 22 OFFICES MAJOR MARKETS Major Market Office (1) Reflects total company proforma revenue for fiscal 2024 as if the Marcum acquisition occurred on January 1, 2023. (2) Accounting Today 2025
Slide 6: Competitive Advantage
Competitive Advantage Since our founding in 1996, CBIZ set out to build a company that would provide a breadth of services with depth of expertise that is unmatched in our industries to assist our clients with their most pressing needs and greatest opportunities. Local Relationship National & Delive
Slide 7: CBIZ Clients
CBIZ Clients 135K+ MID-SIZED ~90% TOTAL CLIENTS BUSINESSES CLIENT RETENTION RATE 7
Slide 8: Business Model Attributes
Business Model Attributes ESSENTIAL & HIGH CLIENT RECURRING RETENTION SERVICES BROAD DIVERSE GEOGRAPHIC CLIENT BASE FOOTPRINT (Size/Industry) STRONG & CONSISTENT OPERATING CASH FLOWS LEVERAGE 8
Slide 9: 2024 Revenue Breakdown
2024 Revenue Breakdown 75% FINANCIAL • Accounting & Tax • Financial Advisory • Government Health Care Consulting 22% 3% SERVICES 2024 22% BENEFITS & • • • Employee Benefits Consulting Payroll / Human Capital Management Property & Casualty Revenue $1.8B INSURANCE SERVICES • Retirement & Investment Se
Slide 10: 2024 Pro Forma Revenue Breakdown
2024 Pro Forma Revenue Breakdown(1) 2% 84% FINANCIAL • Accounting & Tax • Financial Advisory • Government Health Care Consulting 14% SERVICES 2024 14% BENEFITS & • • • Employee Benefits Consulting Payroll / Human Capital Management Property & Casualty Pro Forma Revenue INSURANCE SERVICES • Retiremen
Slide 11: Recurring Revenue
Recurring Revenue ~77% • Annual Accounting & Tax Services • Government Health Care Consulting • Group Health Benefits 23% RECURRING • Payroll/ Human Capital Management SERVICES • Property & Casualty • Retirement and Investment Services • Technology Support ~23% PROJECT BASED • • • Compensation Studi
Slide 12: Top 7 Accounting Provider Nationally
Financial Services National Advisory 18% Accounting & Tax Government 16% Health Care Top 7 Consulting 66% Accounting Provider Nationally by Accounting Today(1) (1) Accounting Today 2025 Top 100 Firms Report 12
Slide 13: Top 30 Broker of U.S. Business
Benefits & Insurance Services Other Payroll / HCM 4% Employee Benefits 14% Consulting 33% Top 30 Property & Casualty 24% Broker of U.S. Business 2024 by BI Magazine 25% Retirement & Investment Solutions 13
Slide 14: Our People & Culture
Our People & Culture RECOGNITION
Slide 15: Recognition Workplace Awards in 2024
Recognition 4 106 Workplace Awards in 2024 ACBIZ DEST BRIGHTEST TO WORK FOR IN THE NATION WINNER 2024 FINANCIAL SERVICES THE nares a IN W ELLNESS WINNER 2024 TOP RANKED PRESTIGE (Wy BEST PLACES TOWORK 04 atdetiednd bt 0 ecard, 02 24 T0P RANKED ACCOUNTING Certified
Slide 16: Marcum Strategic Rationale
Marcum Strategic Rationale Solidify position as a leading provider of professional services to the growing middle market Market Position and 7th largest accounting services provider in the U.S. Growth Strategy Scale accelerates growth and further positions CBIZ as an acquirer of choice Our Attract a
Slide 17: Marcum Integration Plan
Marcum Integration Plan At 4Q24 Closing First 18 Months 2026 & Beyond ▪ People-focused onboarding ▪ Alignment of operational ▪ Anticipated $25M+ ▪ Brand elevation and joint processes and move to cost synergies marketing common platforms and ▪ Process and practice systems innovation ▪ Client engageme
Slide 18: Revenue Growth Components and Long-Term Growth Goals
Revenue Growth Components Long-Term Annual Growth Goals INTERNAL REVENUE Organic INTERNAL REVENUE 8% -10% Cross-Serving EXTERNAL REVENUE M&A Adjusted Diluted Earnings Per Share 1.5x – 2x 18
Slide 19: Internal Growth Drivers
Internal Growth Drivers NET NEW PRICING CROSS-SERVING PRODUCERS & LOCAL MARKET MARKETING & BUSINESS BUSINESS GOALS BRANDING DEVELOPMENT MANAGERS 19
Slide 20: Growth by Acquisition
Growth by Acquisition STRATEGY ATTRIBUTES STRUCTURE ▪ Enter attractive geographic markets ▪ Successful local or ▪ Consideration based on TTM ▪ Strengthen presence in existing regional company EBITDA markets ▪ Cultural fit ▪ 50%+ paid up front ▪ Add breadth of service or depth of ▪ Strong leadership
Slide 21: Financial Overview
Financial Overview 21
Slide 22: YTD Highlights & 2025 Guidance
YTD Highlights & 2025 Guidance 1Q25 TOTAL 2025 SEGMENT REVENUE GUIDANCE(1) GROWTH FINANCIAL SERVICES 91.5% BENEFITS AND INSURANCE SERVICES 4.2% NATIONAL PRACTICES -14.2% REVENUE 69.5% $2.8B TO $2.95B GAAP DILUTED EPS $1.91 $1.97 to $2.02 ADJUSTED DILUTED EPS(2) $2.29 $3.60 to $3.65 TAX RATE 29% ~29%
Slide 23: Clear Path to Leverage Reduction
Clear Path to Leverage Reduction Pro Forma Net Leverage of Adj. EBITDA(1) ~3.25x to ~3.50x Significant free cash flow generated by the pro forma company to pay down transaction debt ~2.00x to ~2.25x Continued capital allocation approach addressing acquisitions, share repurchases, capital spending an
Slide 24: Investment Highlights
Investment Highlights OPERATIONAL FINANCIAL RESULTS LEVERAGE ATTRIBUTES • Proven ability to grow • Established national platform • Strong balance sheet earnings at a faster rate than revenue growth • Full integration of acquired • Strong and consistent cash flow businesses • 2019 – 2023 Revenue Grow
Slide 25: Five-Year Total Shareholder Return
Five-Year Total Shareholder Return COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURN* Among CBIZ, Inc., the S&P 500 Index, the Russell 2000 Index, and a Peer Group *$100 invested on 12/31/19 in stock or index, including reinvestment of dividends. Fiscal years ending December 31. Peer Group companies iden
Slide 26: Financial Goals
Financial Goals 2025 GUIDANCE (1) GAAP EPS: $1.97 to $2.02 Revenue: $2.8B to $2.95B Continued Strong Cash Flow Adj. EPS(2) : $3.60 to $3.65 LONG-TERM ANNUAL GOALS – BEYOND 2025 8% - 10% Revenue Growth 1.5x – 2x Earnings Growth OPERATING LEVERAGE (1) Reflects guidance provided by the Company on April
Slide 27: Appendix
Appendix 27
Slide 28: Workplace Awards in 2024
& 106 Workplace Awards in 2024 csiz National Workplaces Early Talent Award Ripplernatch Campus ward Winner 1024 Top 100 Brokers List 24 Top 100 Firs — Accounting Today kp Finan 285 Industry I ani c ms 2024 Top ef rica’s Greatest Adeninis kplaces - Newsweok Recommended Local Wellbeing miCEEET © Akron
Slide 29: GAAP Reconciliation
GAAP RECONCILIATION Net Income and Diluted Earnings Per Share (“EPS”) to Adjusted Net Income, Adjusted Diluted EPS and Adjusted EBITDA (In thousands, except per share data) ‘Three Months Ended March 31, 2025 Benefits and Corporate Financial Services Insurance Services National Practices and Other Co
Slide 30: GAAP Reconciliation
GAAP RECONCILIATION Net Income and Diluted Earnings Per Share (“EPS”) to Adjusted Net Income, Adjusted Diluted EPS and Adjusted EBITDA "”) (in thousands, except per share data) ‘Taree Months Ended March 31, 2024 Benefits and Corporate Financial Services___Insurance Services _National Practices _andO
Slide 31: GAAP Reconciliation
GAAP RECONCILIATION Net income and Diluted Earnings Per Share ("EPS") to Adjusted Net Income and Adjusted EPS") (In thousands, except per share data) Year Ended December 31, 2023 EPS 2022 EPS 2021 EPS 2020 EPS 2019 EPS Net income $ 120,968 $239 $105,354 $2.01 $70,887 $1.32 $78,299 $1.41 $70,714 $1.2
Slide 32: GAAP Reconciliation Full Year 2025 Guidance
ACBIZ CBIZ, Inc. GAAP RECONCILIATION Full Year 2025 Guidance (Amounts in millions except per share data) Low High Amounts EPS Amounts EPS GAAP Net Income $ 127.9 $1.97 $ 131.1 $2.02 Amortization of acquired intangible assets”) 75.1 1.15 75.1 1.15 Integration costs related to acquisitions”) 75.0 1.15
Slide 33: Thank You
Thank You CBIZ.COM