Barrett Business Services, Inc. (NASDAQ:BBSI) Q3 2023 Earnings Call Transcript

Gary Kramer: If you just think of who we’re selling to, we’re primarily trying to sell into our installed base. So that’s really no new vertical for us, but we’re having good success selling it into our installed base and really in every state, right? There’s not a state that we’re not able to sell into. So we feel comfortable that we have the product that works in every state and that our clients are eager and willing to pay for. So we feel good there. The one thing I would just say that we’re seeing success is in our new markets, right? So our market development managers about 80% of the business they’re bringing on for new business, they’re selling benefits as well. So we feel pretty optimistic that in these greenfield, they have many different products to sell, and they try to figure out what’s the best way to crack the market, and they’re doing a great job cracking the market.

I’m proud of all of them. So just in general, in those new markets, we are seeing more white-collar than blue-collar just because of their comfort and maybe their [Technical Difficulty] and the folks that they know because we’re typically hiring folks that come from in around the business, I’ll say, from our industry or adjacent industry. So, feel good with the growth there. And then as the sales cycle, right, this is — we know that this is not a quick sales cycle, right? It’s typically going to take you three months to four months, right, from the time you sell it. From the time you do the underwriting and you sell to — then you have to get the employees through the enrollment process. It just takes a little more lead time to get — to make sure it’s done properly, make sure it’s done accurately.

But like we wish we could give you a better number right now, but we’re right in the middle of the sick for the 1/1 season. Most of the folks are going to make their decisions. Most of the clients are going to make their buying decisions in mid-November, mid-to-end-November with the idea of start your enrollments around Thanksgiving or in the first week of December, so the kind of everything wrapped up by mid-December. But until we get through those enrollments, we’re not going to have a real good definitive estimate on what we think our sell-through was for the 1/1 season.

Operator: There are no further questions in the queue. I’d like to hand the call back to management for closing remarks.

Gary Kramer: Thank you. Just again, I want to thank all the BBSI professionals for another great quarter on controllable growth. Everybody is doing a great job, and we appreciate everything you do for the organization. Thank you everybody.

Operator: Ladies and gentlemen, this does conclude today’s teleconference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful day.