Barrett Business Services (BBSI) Investor presentation summary

Business overview and market position

• Provides comprehensive PEO services, supporting small businesses with HR, payroll, benefits, and risk management.

• Focuses on high-touch, local service teams and relationship-based client partnerships.

• Serves clients in all 50 states, targeting companies with fewer than 500 employees.

• Offers proprietary technology platform for payroll, benefits, and reporting.

• Maintains over 90% annual client retention.

Market opportunity and growth strategy

• Operates in a large, underpenetrated PEO market, with only ~2% penetration in mature markets.

• PEO industry is growing, with 7% annual increase in worksite employees and 19% growth in annual wages from 2020 to 2022.

• Growth strategy includes scaling existing branches, asset-light expansion into new geographies, and hiring 10 new market development managers per year.

• Omni-channel go-to-market approach leverages referral partners, client referrals, and digital presence.

Service offerings and differentiation

• Delivers end-to-end HR, payroll, benefits, risk & safety, and business strategy services.

• Health benefits program launched in 2023, expanding value proposition and addressable market.

• Fully insured for health and most workers' compensation claims, minimizing insurance risk.

• Differentiates through local, high-touch service, no 800-number, and focus on referral-based sales.