CBIZ, Inc. (CBZ): Business Model Canvas [11-2024 Updated]
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CBIZ, Inc. (CBZ) Bundle
In the competitive landscape of financial services, CBIZ, Inc. (CBZ) stands out with its innovative business model that effectively addresses the diverse needs of its clients. By leveraging strategic partnerships and a skilled workforce, CBIZ delivers a comprehensive suite of services ranging from accounting to consulting. This blog post delves into the intricacies of CBIZ's Business Model Canvas, highlighting how the company creates value for its customers while maintaining a sustainable revenue stream. Discover the key components that drive CBIZ's success and their implications for the broader financial services industry.
CBIZ, Inc. (CBZ) - Business Model: Key Partnerships
Collaborations with CPA firms through Administrative Services Agreements
CBIZ collaborates extensively with affiliated CPA firms under joint referral and Administrative Services Agreements (ASAs). For the three months ended September 30, 2024, fees earned under these ASAs amounted to approximately $60.9 million, compared to $60.5 million for the same period in 2023. For the nine months ended September 30, 2024, total fees under ASAs reached around $217.7 million, up from $211.2 million in 2023.
Strategic alliances for technology support and service delivery
CBIZ has established strategic alliances with various technology providers to enhance its service delivery and operational efficiency. These partnerships facilitate the integration of advanced technologies in service offerings, contributing to improved client outcomes and operational scalability. The technology support and service delivery enhancements have contributed to a reported revenue growth of 7.1% to $1.353 billion for the nine months ended September 30, 2024, compared to $1.264 billion in the same period of 2023.
Relationships with insurance carriers and financial service providers
CBIZ maintains strong relationships with various insurance carriers and financial service providers, which are critical for its Benefits and Insurance Services practice group. For the three months ended September 30, 2024, this practice group generated revenues of $104.0 million, a 3.7% increase from $100.3 million in the same quarter of 2023. The collaborative efforts with insurance carriers enhance CBIZ's ability to offer comprehensive insurance solutions, driving client retention and attracting new business.
| Partnership Type | Revenue (3 Months Ended Sept 30, 2024) | Revenue (3 Months Ended Sept 30, 2023) | Revenue Growth (%) |
|---|---|---|---|
| Administrative Services Agreements with CPA Firms | $60.9 million | $60.5 million | 0.7% |
| Benefits and Insurance Services | $104.0 million | $100.3 million | 3.7% |
CBIZ, Inc. (CBZ) - Business Model: Key Activities
Providing accounting, tax, and consulting services
CBIZ, Inc. specializes in delivering a wide range of services including accounting, tax compliance, and consulting. For the nine months ended September 30, 2024, total revenue reached approximately $1,353.2 million, reflecting a 7.1% increase from $1,263.6 million in the same period of 2023. The Financial Services practice group, which encompasses traditional accounting and tax-related services, generated $1,004.2 million, accounting for 74.2% of total revenue.
Managing client relationships and service delivery
Effective client relationship management is crucial for CBIZ's service delivery. The company reported same-unit revenue growth of approximately $58.7 million, or 4.6%, for the nine months ended September 30, 2024, compared to the previous year. This growth was driven by strong performance across service lines, notably a $17.5 million increase in accounting and tax services.
Conducting market research to identify growth opportunities
CBIZ actively conducts market research to identify strategic growth opportunities. In 2024, the company completed three acquisitions for $22.5 million in cash to expand its service offerings and market reach. The impact of these acquisitions added approximately $30.0 million in revenue for the Financial Services practice group during the nine months ended September 30, 2024.
| Key Metrics | 2024 (9 Months) | 2023 (9 Months) | Change | % Change |
|---|---|---|---|---|
| Total Revenue | $1,353.2 million | $1,263.6 million | $89.6 million | 7.1% |
| Financial Services Revenue | $1,004.2 million | $932.4 million | $71.8 million | 7.7% |
| Same-Unit Revenue Growth | $58.7 million | N/A | N/A | 4.6% |
| Acquisition Revenue Contribution | $30.0 million | N/A | N/A | N/A |
CBIZ, Inc. (CBZ) - Business Model: Key Resources
Skilled workforce of accountants and consultants
As of September 30, 2024, CBIZ, Inc. employed approximately 5,500 professionals across various service lines, including accounting, tax, and consulting. These skilled workers are essential for delivering high-quality services to clients. The company's workforce has seen an increase in personnel costs, which rose by $32.1 million during the nine months ended September 30, 2024, with acquisitions contributing approximately $10.9 million to this increase.
Proprietary technology and software systems
CBIZ invests significantly in proprietary technology and software systems to enhance its service delivery and operational efficiency. In the nine months ended September 30, 2024, the company incurred technology costs of approximately $2.3 million. The integration of advanced software solutions helps streamline processes and improve client interactions, contributing to a more efficient service model.
Established brand reputation in the financial services sector
CBIZ has built a strong brand reputation in the financial services sector, evidenced by its revenue growth. For the nine months ended September 30, 2024, the company reported total revenue of $1,353.2 million, a 7.1% increase from $1,263.6 million in the same period of 2023. This growth reflects the trust and recognition the brand has earned over the years, which is crucial for sustaining client relationships and attracting new business.
| Key Resource | Details | Financial Impact |
|---|---|---|
| Skilled Workforce | Approximately 5,500 professionals | Personnel costs increased by $32.1 million (2024) |
| Proprietary Technology | Investment in software and technology solutions | Technology costs of $2.3 million (2024) |
| Brand Reputation | Strong market presence in financial services | Revenue of $1,353.2 million (2024) |
CBIZ, Inc. (CBZ) - Business Model: Value Propositions
Comprehensive financial services tailored to client needs.
CBIZ, Inc. offers a broad array of financial services designed to meet the diverse needs of its clients. For the nine months ended September 30, 2024, total revenue reached $1,353.2 million, an increase of 7.1% from the prior year, driven by same-unit revenue growth of 4.6% and contributions from newly acquired operations amounting to $31.7 million.
| Service Group | Revenue (2024) | Revenue (2023) | % Change |
|---|---|---|---|
| Financial Services | $1,004.2 million | $932.4 million | 7.7% |
| Benefits and Insurance Services | $309.9 million | $296.2 million | 4.6% |
| National Practices | $39.2 million | $35.1 million | 11.7% |
| Total | $1,353.2 million | $1,263.6 million | 7.1% |
Expertise in both traditional and emerging service areas.
CBIZ has established its reputation through expertise in both traditional accounting and emerging service areas. For instance, the Financial Services segment reported significant revenue growth from advisory services, which increased by approximately $4.3 million. Additionally, the integration of newly acquired companies has allowed CBIZ to expand its service offerings further, contributing an incremental $30.0 million in revenue in the Financial Services sector.
Strong focus on client satisfaction and service quality.
Client satisfaction remains a top priority for CBIZ, as evidenced by their strategic investments in personnel and technology. Operating expenses for the nine months ended September 30, 2024, totaled $1,108.8 million, reflecting a 7.0% increase compared to the same period in 2023, primarily due to personnel costs that increased by $32.1 million. This focus on quality service delivery has resulted in positive client retention rates and incremental revenue growth across all service lines.
| Financial Metrics | 2024 | 2023 | % Change |
|---|---|---|---|
| Net Income | $131.8 million | $133.7 million | -1.4% |
| Earnings per Share (Diluted) | $2.62 | $2.64 | -0.8% |
| Gross Margin | 19.4% | 20.7% | -1.3% |
CBIZ, Inc. (CBZ) - Business Model: Customer Relationships
Personalized service through dedicated account managers
CBIZ, Inc. emphasizes personalized service through dedicated account managers, ensuring tailored solutions for each client. As of September 30, 2024, the company reported a total revenue of $1,353.2 million, reflecting a 7.1% increase compared to the previous year. This growth is partly attributed to enhanced client relationships facilitated by dedicated personnel.
Ongoing support and consultation for clients
Ongoing support and consultation are integral to CBIZ's customer relationships. The Benefits and Insurance Services segment generated $309.9 million in revenue during the nine months ended September 30, 2024, up 4.6% from $296.2 million in the same period of 2023. This increase indicates that continuous engagement and consultation contribute significantly to client retention and satisfaction.
Engagement through educational resources and seminars
CBIZ engages clients through educational resources and seminars, enhancing their understanding of services offered. The company reported that fees earned under joint referral and administrative service agreements (ASAs) amounted to approximately $217.7 million for the nine months ended September 30, 2024, compared to $211.2 million in the same period in 2023. This growth underscores the effectiveness of educational initiatives in fostering client loyalty and expanding service uptake.
| Metric | 2024 (Nine Months) | 2023 (Nine Months) | Change (%) |
|---|---|---|---|
| Total Revenue | $1,353.2 million | $1,263.6 million | 7.1% |
| Benefits and Insurance Services Revenue | $309.9 million | $296.2 million | 4.6% |
| Fees from ASAs | $217.7 million | $211.2 million | 3.1% |
CBIZ, Inc. (CBZ) - Business Model: Channels
Direct sales through in-house consultants
CBIZ, Inc. employs a robust team of in-house consultants to facilitate direct sales. For the nine months ended September 30, 2024, the Financial Services segment generated $1,004.2 million in revenue, accounting for 74.2% of total revenue. The Benefits and Insurance Services segment contributed $309.9 million, which is 22.9% of total revenue. The use of in-house consultants enhances personal relationships with clients, driving repeat business and client retention.
Online platforms for service delivery and client management
CBIZ utilizes online platforms to enhance service delivery and client management. The company reported revenues of approximately $60.9 million and $60.5 million for the three months ended September 30, 2024, and 2023, respectively, from fees earned under joint referral and administrative service agreements. The emphasis on digital platforms has improved operational efficiency and customer engagement, leading to a more streamlined service provision.
Marketing through industry events and digital channels
CBIZ actively participates in industry events and leverages digital marketing channels to enhance brand visibility. For the nine months ended September 30, 2024, total operating expenses increased by $51.4 million, or 7.0%, compared to the same period in 2023, with a significant portion allocated to marketing and promotional activities. The increase in general and administrative expenses, which rose by $19.5 million or 43.7%, reflects the company's investment in marketing strategies aimed at expanding its market presence.
| Channel Type | Revenue Contribution (2024) | Revenue Contribution (2023) | Growth (%) |
|---|---|---|---|
| Direct Sales (Consultants) | $1,004.2 million | $932.4 million | 7.7% |
| Benefits and Insurance Services | $309.9 million | $296.2 million | 4.6% |
| Joint Referral Agreements | $60.9 million | $60.5 million | 0.7% |
| Total Revenue | $1,353.2 million | $1,263.6 million | 7.1% |
CBIZ, Inc. (CBZ) - Business Model: Customer Segments
Small to mid-sized businesses across various industries
CBIZ, Inc. primarily targets small to mid-sized businesses (SMBs) across various sectors, providing them with integrated business solutions. For the nine months ended September 30, 2024, total revenue from Financial Services, which includes accounting and tax-related services for SMBs, was approximately $1,004.2 million, accounting for 74.2% of total revenue. The Benefits and Insurance Services segment generated $309.9 million, representing 22.9% of total revenue. This focus on SMBs is strategic, as they contribute significantly to both revenue and growth potential.
Individual clients seeking financial planning and advisory services
CBIZ also caters to individual clients looking for financial planning and advisory services. Revenue from the advisory services segment increased by approximately $4.3 million in the third quarter of 2024, reflecting a growing demand for personal financial management. The overall revenue from personal financial services is part of the Financial Services practice group, with same-unit revenue growth of 5.2% year-over-year.
Non-profit organizations requiring specialized financial services
Non-profit organizations represent another critical customer segment for CBIZ. The company provides specialized financial services tailored to the unique needs of non-profits, which often require compliance and regulatory expertise. Revenue from the National Practices segment, which includes services for non-profits, was $39.2 million for the nine months ended September 30, 2024, up from $35.1 million in the same period of 2023, marking an 11.7% increase. This growth indicates a robust demand for financial services within the non-profit sector.
| Customer Segment | Revenue (Q3 2024) | Percentage of Total Revenue | Year-over-Year Growth |
|---|---|---|---|
| Small to Mid-Sized Businesses | $1,004.2 million | 74.2% | 7.7% |
| Individual Clients | Not specifically reported | Part of Financial Services | 5.2% |
| Non-Profit Organizations | $39.2 million | 2.9% | 11.7% |
CBIZ, Inc. (CBZ) - Business Model: Cost Structure
Personnel costs related to salaries and benefits
For the nine months ended September 30, 2024, personnel costs increased by $32.1 million, largely driven by acquisitions which contributed approximately $10.9 million to this increase. The total operating expenses for CBIZ during this period amounted to $1,108.8 million, reflecting a growth of 7.0% compared to the previous year.
| Expense Type | Amount (in thousands) | Change (%) |
|---|---|---|
| Personnel Costs | $32,100 | — |
| Acquisition Contribution | $10,900 | — |
| Total Operating Expenses | $1,108,824 | 7.0 |
Operating expenses for technology and office management
Operating expenses related to technology and office management increased by approximately $51.4 million for the nine months ended September 30, 2024, compared to the same period in 2023. Technology costs specifically rose by about $2.3 million, while other operating expenses, including direct costs and professional services, also contributed to the overall increase.
| Expense Type | Amount (in thousands) | Change (%) |
|---|---|---|
| Technology Costs | $2,300 | — |
| Direct Costs | $8,300 | — |
| Professional Services | $2,700 | — |
| Total Operating Expenses Increase | $51,400 | — |
Marketing and client acquisition expenses
Marketing and client acquisition expenses for the nine months ended September 30, 2024, showed an increase due to enhanced marketing efforts and client engagement strategies. Specific increases included about $0.4 million in facility costs and an additional $0.6 million in other discretionary costs.
| Expense Type | Amount (in thousands) | Change (%) |
|---|---|---|
| Facility Costs | $400 | — |
| Other Discretionary Costs | $200 | — |
| Total Increase in Marketing Expenses | $600 | — |
CBIZ, Inc. (CBZ) - Business Model: Revenue Streams
Fees from Accounting and Tax Services
For the nine months ended September 30, 2024, CBIZ, Inc. reported total revenue of $1,353.2 million, which reflects an increase of $89.5 million, or 7.1%, compared to the same period in 2023. Within this, the Financial Services practice group, which includes accounting and tax-related services, generated revenue of $1,004.2 million, showcasing a growth of 7.7% from $932.4 million in the prior year.
| Period | Revenue from Financial Services | Growth Rate |
|---|---|---|
| Nine Months Ended September 30, 2024 | $1,004.2 million | 7.7% |
| Nine Months Ended September 30, 2023 | $932.4 million | N/A |
Commissions from Insurance and Financial Products
CBIZ, Inc. also derives significant revenue from commissions related to insurance and financial products. For the nine months ended September 30, 2024, the Benefits and Insurance Services segment reported revenue of $309.9 million, an increase of 4.6% from $296.2 million in the same period in 2023. This segment primarily focuses on employee benefits and retirement services.
| Period | Revenue from Benefits and Insurance Services | Growth Rate |
|---|---|---|
| Nine Months Ended September 30, 2024 | $309.9 million | 4.6% |
| Nine Months Ended September 30, 2023 | $296.2 million | N/A |
Consulting Fees for Advisory Services Provided to Clients
The consulting arm of CBIZ, which encompasses advisory services, contributed to the overall revenue growth. For the three months ended September 30, 2024, the revenue from advisory services within the Financial Services practice group increased by approximately $4.3 million. The total revenue for the Financial Services segment during this period was reported at $322.3 million, reflecting an 8.0% increase year-over-year.
| Period | Revenue from Advisory Services | Growth Rate |
|---|---|---|
| Three Months Ended September 30, 2024 | $322.3 million | 8.0% |
| Three Months Ended September 30, 2023 | $298.4 million | N/A |
Updated on 16 Nov 2024
Resources:
- CBIZ, Inc. (CBZ) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CBIZ, Inc. (CBZ)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CBIZ, Inc. (CBZ)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.