CBIZ, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenue of $438.9 million for Q3 2024, marking a 6.9% increase from $410.5 million in Q3 2023. For the nine months ended September 30, 2024, total revenue reached $1.35 billion, up 7.1% from $1.26 billion in the same period last year. The growth was primarily driven by the Financial Services segment, which saw a revenue increase of 8.0% in Q3 2024, contributing $322.3 million, and a 7.7% increase for the nine-month period.
Despite the revenue growth, CBIZ's operating income for Q3 2024 decreased to $49.7 million from $55.3 million in Q3 2023. For the nine months, operating income also fell to $180.4 million from $192.0 million. The decline in operating income was attributed to rising operating expenses, which increased by 7.0% in Q3 2024 and 8.0% for the nine-month period, largely due to higher personnel costs and integration expenses related to recent acquisitions.
Net income for Q3 2024 was $35.1 million, or $0.70 per diluted share, compared to $33.7 million, or $0.67 per diluted share, in Q3 2023. For the nine months, net income slightly decreased to $131.8 million from $133.7 million in the prior year. The effective tax rate for Q3 2024 rose to 31.2%, up from 28.6% in Q3 2023, primarily due to lower tax benefits from stock-based compensation.
Strategically, CBIZ completed several acquisitions during the nine months, including Erickson, Brown & Kloster, LLC, and CompuData, Inc., for a total of $40.1 million. These acquisitions contributed $21.2 million in revenue. Additionally, the company sold CBIZ KA Consulting Services, LLC, realizing a gain of $4.95 million.
As of September 30, 2024, total current assets increased to $675.8 million from $612.7 million at the end of 2023, while total liabilities decreased to $1.21 billion from $1.25 billion. Total stockholders' equity rose to $927.9 million, up from $791.6 million at the end of 2023. The company also reported a decrease in cash and cash equivalents to $1.1 million from $8.1 million at the end of 2023.
Looking ahead, CBIZ's recent merger with Marcum LLP, completed on November 1, 2024, is expected to enhance its service offerings but also introduces increased leverage and operational complexities. The company has entered into new credit facilities totaling $2.0 billion to support this transaction.
About CBIZ, Inc.
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