Insperity, Inc. (NYSE:NSP) Q2 2019 Earnings Conference Call - Final Transcript

Jul 29, 2019 • 10:00 am ET

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Insperity, Inc. (NYSE:NSP) Q2 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

Our first question comes from the line of Jim MacDonald from First Analysis. Jim, your line is open.

Analyst
James MacDonald

Thanks. So question was the sales result in the second quarter, you said it was 101% for the first half, but was the second quarter in line with your expectations? Are you seeing any impact of any recession or slowdown or beginnings of such?

Executive
Paul J. Sarvadi

No, sir, we haven't seen any sign of a slowdown Jim. The sales in the second quarter were good.

Analyst
James MacDonald

Anything you can say about mid-market versus the core business?

Executive
Paul J. Sarvadi

Sure, the mid-market, it's a little newer, of course, a little choppier just because it's -- fewer sales people out there. And -- but the channel is really strong right now, we've got the biggest pipeline we've had and we are above last year in sales for the year. We did have a really large account last year, that came on mid-year, we didn't have a repeat of that yet this year, but there is a lot of things in the hopper. So generally very pleased with the way we're going in mid-market. Really all across the business, we're continuing to click along.

Analyst
James MacDonald

And you mentioned you had strong results in the workforce acceleration, is that -- and that started to hit the revenue even though it's sort of smaller than your core business in the second quarter? Maybe you could -- what kind of growth rates are we talking there?

Executive
Paul J. Sarvadi

Yeah. So what we're talking about, what we're looking for there right now, as I mentioned last quarter, the goal was to really get that activity up, and we started to see the number of discovery calls and the amount of activity start to increase. The second quarter, that activity did turn into a nice uptick in closings, so we're closing the business, and the good news is closed at the -- we closed the business at targeted prices for the new offering. So all on track, we just need to continue to increase that activity, which of course was the plan over the course of this year and on plan on that front.

Analyst
James MacDonald

Okay. Thanks a lot, guys.

Executive
Paul J. Sarvadi

You bet.

Operator
Operator

Thank you. Our next question comes from the line of Jeff Martin of Roth Capital Partners. Jeff, your line is open.

Analyst
Jeff Martin

Thanks. Good morning, guys.

Executive
Paul J. Sarvadi

Hi Jeff.

Executive
Douglas S. Sharp

Good morning.

Analyst
Jeff Martin

Paul, I was wondering, if you could elaborate, you mentioned a large acquisition failed to obtain regulatory approval. Does that -- has that impacted your worksite employee guidance for the balance of the year?

Executive
Paul J. Sarvadi

Yes, sure. We -- I mean, we had that in for coming in late in the second quarter, which was scheduled, about 700 or 800 employees and that did not get approved, and so we obviously didn't enroll the account. But we kind of just took it out for the year. There is -- the customer said, it's going to happen. But, at this point, it's best when it happens it happens.

Analyst
Jeff Martin

Right. Okay. And