NSP - Earnings call transcript Q2 2020

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Operator

Good afternoon. My name is Jerome, and I'll be your conference operator today. I would like to welcome everyone to the Insperity Second Quarter 2020 Earnings Conference Call. [Operator Instructions]. At this time, I would like to introduce today's speakers.

Sarvadi, Douglas the of Sharp, Financial and Paul Executive and Finance, are Officer and Officer; Senior Treasurer. us Chairman Board of Chief Chief Joining Vice President to to the like I'd time, this call At over Mr. turn Douglas Sharp. Mr. Sharp, ahead. please go

Douglas Sharp

Thank joining you. you We appreciate us.

our outlining for this by begin evening's me plan Let call.

drivers quarter pandemic. our on our return of the going provide the behind environment and current XXXX the year. to second update our brought details Paul which for comment guidance. results, upon behind remainder results the I'm financial key were the will economic for the the then First, year an QX outlook guidance the and our I to by discuss third full to XXXX strong will quarter considering financial

with then question-and-answer end call will the session. a We

we begin, during forward-looking make that risks, uncertainties like I to and are to would statements or Sarvadi I subject remind assumptions. Mr. Now you may today's which call, before

non-GAAP some of addition, In measures. our may include financial discussion

discussion website. detailed non-GAAP financial and materially company's statements available filed of reconciliations more today, results Form uncertainties and the from please our any which a see differ including actual cause of on public measures, the to For X-K could forward-looking that risks filings, are the

hiring high strength clients as held segment. during increase impact financial HR quick losses X% from Now taken at from success Client of just by our forecast including was and the QX. Advisors our premium in clients our to were outlook. XX%. client $X.XX QX to by new client by returning an an just Paul of our sales into the driven XXXX which trends XX% Performance of laid the actions approximately base employees XX% layoffs Average particularly our the a our general of client in all EBITDA XXXX updated declined base actions were quarter our in increase paid favorable. from points and more of clients a of that above employees retention expected Business recently and to expected. paid and and the mid-market of the on X.X% This thoughts XX% were level employee pandemic and few XXXX; we Net new hiring, to provide assist level in drivers, assist let's and our of worksite X% account paid in discuss took employees in from compared retention trained results and month lower clients our losses levels level million, over of the response in during worksite the $XX over on sales, This than details share second employees off, the around and worksite XX% COVID-XX case forecasted effective achieved adjusted EPS, QX our client our furlough were worksite of and than taken In decline a to from Worksite will services. net in increase better recent in prospects. All our minutes, our pandemic X to we've adjusted with work June. QX up historical

some many elective to costs included credits future our to offset primarily costs utilization, is benefit fee deferred our Lower in care gross to incurred subsequent costs Lower compensation levels QX to in lower be expected any pandemic. and status resumption procedures, which were these and work-from-home claims the severity management results on move and decision to time. clients workers' claims These let's of with develop benefits the of quarters Due with program, of of health over clients. especially to associated would our as workers' number the lower claims due of the the compensation XXXX. largely compensation of by reduction a increased of of unrelated our result in provide lower-than-forecasted partially So and our in costs. periods profit, effective structure care service impact offset the comprehensive and over XX% employees cost primarily compensation were of which workers' of by later prior COVID-XX periods workers' to likely

this the difficult in we successfully to our clients quarter, vendors engaged with negotiating our period. proactively During savings support through

Acts, accrued a quarter. and government As stimulus were comprehensive take to levels to upon through were worksite a the QX $XX These their the million Family totaled service and June $XX credits approximately deferrals and were fee provided offered our under as to employee million of able second advantage packages. both Also, clients costs. tax during credits credit credits and reduction approximately result, clients at direct First revenue deferrals reported totaled a Act in and we and These payroll based XX. CARES

reported items gross $XX QX million by these revenues total, approximately in reduced and $XX by So X profit million. approximately

over costs and level its Performance demands growth, expenses this issues, corporate increase Second increased in the count has HR and head employee inclusion. associated Advisors. of continued on year and diversity included Other a the including quarter though operating in number by the remained the half including with have investments X% our and of Business with even impact increased the number of first HR economy pandemic

quarter increased employees' in the costs Second to included timing them compensation portion compensation reward an demands. annual of of corporate period incentive of in a service our a acceleration

Additionally, increased pandemic. costs an higher-than-normal operating included time-off during the accrual paid hours associated with QX unused vacation

by offset business costs. and other Now promotion these expenditures training in partially areas, travel, cost savings including were

at XXXX. tax in and both year over similar latter in of and half year rate this we rate XX%, the QX the effective expect for full came Our a

at to million December up $XXX over at end million XXXX Our while pandemic. in cash XX, the strong $XXX Adjusted dynamics from financial December of and XXXX, half position totaled of at QX, at challenges million XXXX. of and million up face totaled liquidity continued the the the borrowings improve XX, XX, of first the June $XXX from $XXX

million cost first capital $XX million, of of this repurchased paid half dividends XXX,XXX expenditures. in at the stock invested shares we in million $XX a and Over cash $XX have year, of

this at the over call I'd Now to time, Paul. to turn like

Paul Sarvadi

Thank with I'll and our clients business and the disruption a discussion all thank Doug, the historic recent Today, from you, medium-sized small us. over begin to of joining our you the efforts pandemic. for quarter support throughout arising

the the lining of year cloud finish dynamics represents which with for our our on growth some effect the over Secondly, the Insperity of thoughts I'll I'll services, balance driving my cover demand view the profitability. COVID-XX. for and And long-term about of expectations in a silver remarks

opportunities the clients. unexpected demonstrate comprehensive was highlighting of that the over and absolute function in federal, a and including ways, beginning an This medium-sized eye-opener When of Insperity political the emotionally HR spotlight necessity is to an of competitive on many followed and with our crisis to stay-at-home working most obligations challenge state our the monumental of HR course services and for quarter for the from by and provider orders the dynamic and businesses, our responses local the the in of The to HR out business businesses. cast to The marketplace, add distinction sophisticated service sequence in disruption events what is long you charged regulatory evolved transformation and the small the home, course, the offered Insperity health played have our a unrest. of into service care quarter tangible economic with you events department, for value and which, value and clients. opportunity the prolonged to breadth and services Workforce is of providers. level has legislative depth been Optimization and new a social of the

directly the and us through families. livelihood of decisions on them that relying were affected employees their help clients Our work to businesses,

combination of excellence were offer have Our employees volumes genuine length unprecedented clients and doubled, the tripled deferral interactions service for an designed effort the than like facing, incredible challenging period. delivered a PPP continue in at more other compressed need of time businesses we solutions was inclusion, with change. just teams could and loan of an to quarter reporting, up services call of they mission team of diversity seen prouder and our required amazing to we escalated a work, forth myriad Allow to such The and more we prosper name exceptional way clients been across including issues FICA In and businesses workload an succeed service across and were for The our to me communities period. could XX say by HR board application a serve stepped and our substantially spiking. not years, return work only and long help and Insperity. staffing to very to and the list of the never are strategies, company staff a be from have through constant put and home, culture with what experienced forgiveness and in care I've where time worksite so the on layoffs a delivered few.

range We service addition environment sales pricing, our of would under the we new virtual unprecedented to flying budget. indicated this our business from and able within and the last operating XX% sales were a objective well model with also dynamics test On call, original our in pressure of perform XX% Now events. direct this to of XXXX across to account cost with business operating stress we were these expenses. to selling in fall sales passing be to our colors, in pre-COVID pleased the retention see

use the sales recall, may you track to performance As budget and is our we internal the monitor metric sales in organization.

organization, XX% original end booked performed budget total sales above range. in of our remarkably both targeted revised core higher and entire sales the achieving XXXX mid-market, our Our of pre-COVID well, and sales

once a work sale those worksite generate actually paid large. booked, our also to an the a due as business increase to in In rate the the environment, clients may retention employees. marketplace concern reminder, revenue client onboard is service in failure at be teams and As this

remained our our our the small base premium and have mentioned, and best retention we services platform. demonstrating strategy targeting of of Doug has businesses the solid, strong the reflecting client onto As midsize client benefit

stress our both did in of unusual environment. this fee not staff certainly accounts. of of It and service was Another further our providing our of on were another the to reflect around to validation a our this period pricing of test business pricing our credit pricing is a value on standard like and that responsive financial services the We needs new in pressure during services also credit. immediate book very COVID-XX-related our clients renewing

credit this with this clients important this reductions get the and to invoices to begin and worked possible, to act vendors on we soon regard funds pass and million it in negotiated to felt along clients clients. as will quarter, $XX seeing the We in During starting was week. fee quickly as

Another and on items, area the evaluate matching of workers' during unusual and employee this price including time direct payroll benefits. cost was to primary compensation cost our taxes,

direct has pattern track. we strong at pricing although mentioned, year cost And remained I As our anticipate the on has a gross line. profit quarterly overall changed,

and and pandemic and have substantial QX business the we aftermath navigated related So the events immediate resiliency. of demonstrated of the disruption model successfully, our

in small year, clients, determine of and and business. in we economic for layoffs most zero need our to or the new to of recent outlook the balance base, Now the for rehires order consider our the expectation the particularly in on behavior in

a Now low in point paid worksite from COVID drove to due at layoffs quarter, employees a in reduction reaching the the of end March, second May. X%

due approximately XX% reclassified to XX% furloughed to just approximately employees have recovered been of employees. this same off we've laid then, the permanent At time, primarily the return furloughed of layoffs. over or to reduction of XX% temporarily since of work Now

-- to layoffs been So the number of At of employees this rate work both been have considerably. X/X. furloughed point, by had returning has moderated reduced the potential rehires and

our adapting near our somewhat happens been in believe the base hand, and is regard. We of one with On the medium-sized facing. has community business new a this is realities in small So determining change impressive toss-up. they're and what term dealing net particularly to in it in base seems client employment the client well

uncertainty the virus our in in weigh there We Also, uncertainty half may to half the rebound of up or the the of seen in over may sales expect recently. last account corresponding ramp the spread with new and year. continuing we year. have decision-making the hesitancy of of election, the second an upcoming the a sometimes However, temper which economic the pause do is experience, over

growth do is growth this typically the results. the worksite QX in sales for this With guidance booked following of the of balance most These year's paid However, employees somewhat QX the backdrop, our not become in would but contribute year. of sales contribute not conservative XXXX to significantly year. until to over

cautious have recent the the about near pandemic-driven us term, appropriately prospects events long-term more Although Insperity. about bullish made for even us the circumstances make

pattern an outlook focus The conservatism of an pandemic QX the in and of than Our creates look of here over direct for the particularly in XXXX. of appropriate for full shifting and in quarterly XXXX, investors half XXXX year to believe in usual. for the wild health to profits how very half year This measure positioned of experienced more last the the for of our some are for With expectations it's profitability we is I card portion to this costs range to important has lower where to the our mind, QX. also at the on expected profitability first context our shift is and in. QX built plan cost unusual

guidance unit in paid a X% year employees. full XXXX range minus for growth implies of minus Our worksite X% to

a year we straddles to X%. minus of EBITDA X% range the last expect plus achieved We that growth adjusted at level

picture So operating XXXX the gross worksite big due lower our profit and budget. COVID than to to by expenses the economic original for shutdown expected offset and per are full partially higher is be the layoffs employee year

of our So as we growth looking for in also environment, term on We number next our our look is currently regaining current the continuing the while very are momentum XXXX into to Performance and the Advisors, meeting the The engine at trained of base to of believe our growth longer growth the are further in Business year. the need mirror. front well moves in to rearview which we're highest is focus to intense the COVID-XX path level straightest we ahead we as positioned history. client

diminishes. this to quicker deliberately have to a We disruption the due likelihood surge this growth team uncertainty of once stronger continued invest economic in and throughout the

increase we many ways, our in the validated medium-sized and the within we for unexpected community provide services in to spend experiences, drive We the serve quarter medium-sized time, opportunity the need long companies. test improve the over to success fall message, intend equation unusual new ahead. last we to small our an the challenge, we have In also I'd pass experience utilizing distinct developments like this and to for the hone the to has to believe client positive messaging. marketing recent will and and years advantage leads to though the of for to our marketing increase this the this Even a quite term, small the demand the been call services pandemic At business back believe Insperity Doug. and

Douglas Sharp

Paul. Thanks,

Now to for guidance full XXXX. and our an update the provide third year me let the quarter

more half have businesses employees first the on have started returned and and impact year to us, the visibility to pandemic improvement of to reopen business have of as work. as we seen our With behind of gradually gradual signs the the have

on the another and pandemic, uncertainty packages exist. to level election impact uncertainty. environment element The its continues a current economy upcoming further the government stimulus However, and adds political of with high of associated any

base furloughed assumes ultimately, exceeding a is recurrence previous in hiring. X% for XXXX. of favorable to employee and average account more a intends number in in to base, pandemic reflects end details worksite high gradual a reflect a layoffs and, continued Our to cases, client paid in X% our year. into half the and furloughed of paid impact our just the that full and shared a our X% the with than in of new improvement and economic substantial low a levels, are of the This work through guidance and wider second our guidance starting the to assumes possibilities level of forecasting employees year client and that economy guidance take work. level general range now on a of Based persistent on the hires of the guidance both growth returning point of continues disruption associated our pandemic returning the this a employees end therefore, expected upon of we nominal both this over employee The the worksite employees to provided past. X% worksite for conditions decrease to improvement The its Paul decrease

to This during the shift raising of we ranged our EBITDA expected ranging For of timing is a adjusted for a of decrease earnings pandemic. forecasting full compares now X% XX% to $XXX the and are XXXX. to X% to component XXXX, health our year utilization from to A previous the further $XXX increase compared million, which a an of decrease guidance revised care in of guidance this XXXX. flat guidance million when of from

the benefit I procedures and than tied expectations. mentioned As level previous utilization cost of our came a savings moment nonessential lower ago, to fewer significantly in better QX largely

We will half some these participants and deferred expect nonessential that of associated conditions treatment. miss with the of chronic with year, that including a portion costs the procedures shift into latter were

ongoing expect COVID-related to continue also treatment testing and We costs.

expect costs, environment. As the various our current for we operating areas in cost operating while savings pandemic continued in

we XXXX, ahead flat. to BPAs in head continue intend plan hold the on we grow are of we the corporate count modestly to other Performance our of As to growth intend Advisors, while over remainder Business

campaign this period in with We costs services demand. for the upcoming fall promote marketing increasing HR forecasting an as our increase of premier sales are associated we XXXX in

to interest reduction income updated guidance net from recent $X interest our due previous in a our assumes the decline guidance of approximately Finally, earnings million in rates.

are EPS, a previous of forecasting year to of As from our XXXX range $X.XX we up $X.XX, guidance to full now for the $X.XX. adjusted $X.XX

in we a worksite small over XXX,XXX QX, for range are for increase of employees to average sequential XXX,XXX, as is -- QX. forecasting as Now a which the paid

$XX EPS of adjusted $XX and a in forecasting a adjusted to We EBITDA $X.XX. in million of million $X.XX to range are range

questions. Now this time, call at to like I'd the up open for

Operator

[Operator Instructions].

Sommer Your comes from of from Tobey first question SunTrust. the line

Tobey Sommer

in playbook you your pull I'm done of able of have next kind how played up cost BPAs thought had -- would out perspective with currently. that, recession like to to situation respect other things the It substantially. the and and sort the how something the on sort the this That's looks of being are with deal but structure Paul, in had interested you hinted you pandemic that and to implement about you what you've like that? recession the

Paul Sarvadi

Thanks, Yes. Tobey.

an This abrupt change through as find that layoffs reduction also typically an more We in this. you normal was immediate have came a HR eye we've a kept But support. with for need more from gone this on that would recession. significant

even but So time where have a been there in the was employee customers tremendous amazing kept incredible. workload, our the amount we ways, the reduction effort. have with even of because volume has able our out we really in corporate X% putting people really were the help worksite We've staff our at though the extra base been really to been obviously

you regaining that strategy. We earlier fall this back didn't future, really near the in normally XX% to very our grow a also this for as or going in about quarter to ongoing our bounced down growth think look think and though very to rebound invigorating bottom of that if we marketing And at substantial have are we double from next in effort even we also the BPA in we're place than about would on team. positioned we kind organization we're the have our well investment and two, some in momentum gives how already that takes see there

think, the little was I different such events for demand occurred. the in much. our nature of a So because we plan, services followed the of The was increase have that that bit thing an pretty game

Tobey Sommer

early addressable term industry as X-year If my look to some market or pull longer this try customers aperture follow-up, you you makes of about you this the period I year's with sense. fall the your you whether the slingshot back about of a That this and the sort as company? of what thinking the next your does -- the a to for category, And value about and think can change to provided year? does maybe campaign growth lot do could over and as rate thinking growth little a of sort the way thinking

Paul Sarvadi

advertising marketplace. like in tangible the in It also a situation Yes. about was that in and businesses general, felt not examples us I the and and telling us, prospects that makes really didn't really and use excited have And It story marketing this ones came they were deep opportunity to It real-world, need the or the it in does. service think of hurt. out to that a me conversations in painful. using

in back in say, a demand supports to and and getting our important. we think translating look message which the model hopefully all And but is world together motion, dialogue or that not the speaking value and clients so clients had I is into pricing of at our surge whether equation. we'll video marketing sales a telling whatever, by occurred and story think very as rate into the tied we value, only current this our or what you the It happens effective I and the growth, the and become will, of and -- message, with and better turn prospective is that service convey the really referrals nice if and even wow, we'll ability

as excited into So of that the rearview situation see kind immediate about we get mirror. very this

Operator

Your from of Martin next the Capital. comes question ROTH line Jeff from

Jeffrey Martin

hear me you Can okay?

Paul Sarvadi

Yes, we can.

Jeffrey Martin

as as the throughout the you in well within Okay. kind of Great. April of could base? June client in change. bottom, count was May you through terms and head in monthly to cadence terms briefly somewhat. I the of alluded terms if was But July, you Obviously, the of sales have us walk experienced but what efficiency quarter wondering

Paul Sarvadi

Yes.

employees and worksite recovered I there, that where worksite we reduction -- we in So that since that paid about tried lay has by March, from a my to had in we number were remarks out in in of was XX% end time. May, what Jeff, paid X% of employees the

and not the number, way be low March on back to that from quite So well but we're heading our halfway point direction. that we'll we're

Now I virtual and in took up for XX% look second somewhere and -- on we we XX% could new quarter. end original the in as in high decided the up we we of of virtual could far And frankly, year, we we the of was selling, closer continue a second can that as to XX% but budget. we do X/X thought over part what quarter early XX% year, in last And to thinking the selling based our environment, between sales, if to the stages closer at the latter end that. over the the the and ended do we feel at confident

current we're for place the really think, to perform I well, good really, we're facing. in So in what a environment

Jeffrey Martin

Okay. And And to the you is shift if environment of the so, recessionary market, in market? are in? attractive the focus increasingly middle an to given then middle what strategically area terms we're that to doing more

Paul Sarvadi

since pandemic a shifting part larger was strategy the that the period performed But had anyway. in -- customers the through the to We discussions take keeping markets, core the actually steady this those very has of hit. -- period, mind whole longer even in throughout Yes. mid-market our

do you interruption kind a feel that we interruptions really in have through but cycle has sales mid-market just pipeline that where you So some we continued normally And that because this sales. are the year. go pipeline that, for about same didn't space of is as negative the longer anyway. we process we have and had in And good good

even still been it's good any and us this event, looks So doing pipeline for more period, is thing. everybody through right the in and

about we going our segment mid-market So good feel forward.

Operator

next Marcon question comes Mark Your from from line Baird. the of

Mark Marcon

you're are California? geographic of geographic just and correlation any worksite tied virus? and June terms a performances did you new engagement In that words, of Northeast various surges out July what the say, to, Or any other the in or stronger seeing from from see of of of relative flows perspective. business sort the in Texas employees With that to terms regards of you're perspective, the in with seeing

Douglas Sharp

relates I were be I would little it those if region, probably you more bit Yes. mean what furloughed particularly you Northeast. than at I the look as highest, look a by work and in if to layoffs would return say the we think concentrated less The would employees layoffs -- to it that's and in the expect. that the West. at

share but expect other probably percentage regions employees true The layoffs, on worksite -- total -- is proportionate than of what side. same as of on a so would again, return-to-work side. that again, worksite layoff holding would their the the total less you be, the layoffs But

more so regions the particular coming are And return to from works those also. of

expect be overall, would I So it region. what Mark, think would you by

Mark Marcon

how Great. to care down improvement Okay. Or came regards of care And year-over-year health then were much WSE terms GP year-over-year with much of in the the basis? health the health cost, costs? from how for care benefits on a

Douglas Sharp

my due of outperformance to look profit, area of from share and sort the as gross you the in more comp workers' prepared I comp. was remarks, that benefit come -- cost the if and say, both cost the care in of at mentioned the workers' and could you think the health I the did the that

Mark Marcon

second in what year? about was that thinking year assuming part quarter philosophically of are balance think that for this year how thinking and comes terms in of XX% this XX% Is pricing, or that deferred are about to back majority the next half you do you plan? the you Or is during of And the deferred of of the the what going was back? come that through of

Paul Sarvadi

Yes.

and is at through come had look -- second way best a the lower we I through still come was the occurred actually expect in half we quarter if same where lot what of a the the and ago, in cost back back that of were QX, the and having than QX we originally But cost where even those think bulk costs expected. appropriately to that look you of the pattern costs that quarter forecasted that lower over lower year. was

in to how picture, the is at instead look you best if X% away I for other the years. to total elective percent But the quarter, that looking price that think as a manage to model cost the there differently well continued way be in care, and, were types surgeries than very, year, the in this of important the picture didn't other my I that's couple longer big maybe are trend pressure we deferred, there back very the that year pricing it fact experiencing shape took people go we've managing a And So we is is full area. of not were the rendered all out things and from working due term. and it were what's that second not But mentioned for to for -- dialogue, at benefit were for in services over that us the bigger to in costs of probably in trend the good of that that year.

And So gross we longer nice originally area going feel good very in price profit and direct term. very match have expected shape we for than and a we cost year strong the why better the are items. in that's on cost in that these have are a to

Mark Marcon

there's year, your course next as for the still if that's How a -- Paul, mode. relates you X% at about X% in How And does I Great. more it deferred year looking the to some does to increase make that probably catch-up next instead perspective but the that year? let's then of influence increase, really still pricing next year, be was going say that appreciate over we're of comments. having that those think

Paul Sarvadi

basis be on to what we keep Yes, working. eye internally. a look always this Remember, that's an exactly we XX-month and on rolling type at really have

There's a picture to pandemic, manage lot the is short-term a impacted term. plan sides trend selection, what employee new So plan we're businesses the go factors ultimate of equation client that includes make factors of to for longer-term where pricing on, is, you which going many selection pricing, -- on there and constantly the and the both design coming that where pricing longer course, of going, going to our match are are the been so which, where not that's but renew. accounts and sure maybe by monitoring selection, our into continuing things we the

So matched we month-to-month watching as have as we we'll that that and making and go price we cost go. be sure

Mark Marcon

you some you base? to plan. bit talk Specifically, -- few been say their can bottomed do in on know I and have what performing concerns that how there's to, you March see see -- to of back then now?" obviously, "Hey, with relative back. health April can the But within -- a been dynamics have sales you is there any hanging the How trends you coming might are are a companies they're would see client and and you that commissions that internal the today regards that your pull May little relative And about like,

Paul Sarvadi

it's been watch. So interesting to

some struggles We little terminations in business maybe and a fails. have bit from coming higher financial client factored

We haven't seen just hair. a lot of that, a

been, surprise think say, that's I a to it's -- I'd the So upside.

in had the we that follow you been going same metrics a for normal was X other The pay up range X%. at year to down the that interesting that to average employees if quarter, quarter, X% which been about watch, this number, ago in have the look

So had make that, our pay changes could rates. to reflected pay changes actually and customers that in of some numbers our operating-plan-type that rate you see affect

although overall was So cuts. a commissions still reflected, of when long commissions you down board -- what and number, really other year, was That think a deeper it good about picture. that group was last time smaller that see, a Not but interesting quite Also, go was that down. the a group what Obviously, thought increase running for were to across and clients had that smaller pretty closely. we'll commissions but over wasn't the came was about did in The of sure board. I was the a number environment. level average across clients at look the than at it nominal strong to particularly of level to watching which in hot this came only X% be a that was down

over was of XX% economy to so. that had or down running was well the was base X.X% overtime, number pay, booming about other The a interesting as as dropped along, been percent which

the demand overtime dropping dropping capacity, need does that and need so dropping, And the substantially. reflect the for

help it's of to So resilient. time, going going and are say most customers, and we midsize and the it I a innovative they fun fighters, of they makes way, on, do. have they're They're part find they're but small that and can man, our them to really what business see the because effects to

Mark Marcon

the mean, you was Can clear a there a That's more you your utilization. I Because of great to about bit that it's hear. clients lot through for talk period little marketing message? really came and during this

to what do how to see? more that's going sort take we're think we return much shape? you how spend? of So to quickly And you going And do are think going

Paul Sarvadi

more really you We're Yes. just the like some things keep our to this really to money test and We're where going test emotional are care much messaging. their enough that going thorough going do people, messaging. to happened keep we was a it. put -- until see keep good, not watch. of how it And ton a were paid money them could just employed about and and through there some period, spend them crazy, spending of test We to trying interesting there to clients

would I so the be my to but guys that. And marketing love marketing really if I to would about more, message you upset talk did

And so tell could to that afterwards." in of you kill you, "if I have then it's I'd category, kind but

Operator

this to to time. further There call I Sarvadi. like the would are at turn continue. no back Mr. questions over Please now

Paul Sarvadi

period. the having calls, out the Zoom in Well, seeing once over interest, with investors over thank look to forward whatever pan to quarter right. look and All and for either you for all this we with calls is, things mode how again, your participating our of and call interaction new forward people, next

your again thanks So for participation.

Operator

conference today's concludes call. This

disconnect. now Thank you. may You

Douglas Sharp	SVP of Finance, CFO & Treasurer
Paul Sarvadi	Co-Founder, Chairman & CEO
Tobey Sommer	SunTrust Robinson Humphrey
Jeffrey Martin	ROTH Capital Partners
Mark Marcon	Robert W. Baird & Co.

Insperity (NSP) 3 Aug 202020 Q2 Earnings call transcript