News Release

CBIZ, INC.

FINANCIAL HIGHLIGHTS (UNAUDITED)

THREE MONTHS ENDED MARCH 31, 2023 AND 2022

(In thousands, except percentages and per share data)

Three Months Ended March 31,

2023

%

2022

%

Revenue

$ 454,606

100.0 %

$ 391,722

100.0 %

Operating expenses ⁽¹⁾

341,011

75.0

290,299

74.1

Gross margin

113,595

25.0

101,423

25.9

Corporate general and administrative expenses ⁽¹⁾

15,598

3.4

16,309

4.2

Operating income

97,997

21.6

85,114

21.7

Other income (expense):

Interest expense

(3,641)

(0.8)

(1,259)

(0.3)

Gain on sale of operations, net

99

—

—

—

Other income (expense), net ^{(1) (2)}

5,112

1.1

(6,407)

(1.6)

Total other income (expense), net

1,570

0.3

(7,666)

(1.9)

Income before income tax expense

99,567

21.9

77,448

19.8

Income tax expense

26,407

19,321

Net income

$  73,160

16.1 %

$  58,127

14.8 %

Diluted earnings per share

$      1.44

$      1.10

Diluted weighted average common shares outstanding

50,762

52,955

Other data:

Adjusted EBITDA ⁽³⁾

$ 113,348

$  92,892

Adjusted EPS ⁽³⁾

$      1.46

$      1.18

(1)  CBIZ sponsors a deferred compensation plan, under which a CBIZ employee's compensation deferral is held in a rabbi trust and invested accordingly as
      directed by the employee. Income and expenses related to the deferred compensation plan are included in "Operating expenses" and "Corporate general
      and administrative expenses," and are directly offset by deferred compensation gains or losses in "Other income (expense), net." The deferred compensation
      plan has no impact on "Income before income tax expense."

      Income and expenses related to the deferred compensation plan for the three months ended March 31, 2023, and 2022 are as follows (in thousands):

Three Months Ended March 31,

2023

% of Revenue

2022

% of Revenue

Operating expenses (income)

$       4,760

1.0 %

$     (5,667)

(1.4) %

Corporate general and administrative expense (income)

642

0.1 %

(811)

(0.2) %

Other income (expense), net

5,402

1.2 %

(6,478)

(1.7) %

Excluding the impact of the above-mentioned income and expenses related to the deferred compensation plan, the operating results for the three months ended March 31,
2023, and 2022 are as follows (in thousands):

Three Months Ended March 31,

2023

2022

As
Reported

Deferred
Compensation
Plan

Adjusted

% of
Revenue

As
Reported

Deferred
Compensation
Plan

Adjusted

% of
Revenue

Gross margin

$ 113,595

$       4,760

$ 118,355

26.0 %

$ 101,423

$      (5,667)

$  95,756

24.4 %

Operating income

97,997

5,402

103,399

22.7 %

85,114

(6,478)

78,636

20.1 %

Other income (expense), net

5,112

(5,402)

(290)

(0.1) %

(6,407)

6,478

71

— %

Income before income tax expense

99,567

—

99,567

21.9 %

77,448

—

77,448

19.8 %

(2)  Included in "Other income (expense), net" for the three months ended March 31, 2023 and 2022, is expense of $0.6 million and $0.6 million, respectively, related to net
      changes in the fair value of contingent consideration related to CBIZ's prior acquisitions.

(3)  Refer to the financial highlights tables for a reconciliation of Non-GAAP financial measures to the most directly comparable GAAP financial measure, and for additional
      information as to the usefulness of the Non-GAAP financial measures to shareholders and investors.

CBIZ, INC.

FINANCIAL HIGHLIGHTS (UNAUDITED)

(In thousands)

SELECT SEGMENT DATA

Three Months Ended March 31,

2023

2022

Revenue

Financial Services

$            343,086

$            288,746

Benefits and Insurance Services

100,054

92,486

National Practices

11,466

10,490

Total

$            454,606

$            391,722

Gross Margin

Financial Services

$              98,643

$              78,946

Benefits and Insurance Services

23,131

19,829

National Practices

883

914

Operating expenses - unallocated ⁽¹⁾:

Other expense

(4,302)

(3,933)

Deferred compensation

(4,760)

5,667

Total

$            113,595

$            101,423

     (1)  Represents operating expenses not directly allocated to individual businesses, including stock-based compensation,
           consolidation and integration charges, and certain advertising expenses. "Operating expenses - unallocated" also
           includes gains or losses attributable to the assets held in a rabbi trust associated with the Company's deferred
           compensation plan. These gains or losses do not impact "Income before income tax expense" as they are directly
           offset by the same adjustment to "Other income (expense), net" in the Consolidated Statements of Comprehensive
           Income. Net gains/losses recognized from adjustments to the fair value of the assets held in the rabbi trust are recorded
           as compensation expense (income) in "Operating expenses" and "Corporate, general and administrative expenses,"
           and offset in "Other income (expense), net."

CBIZ, INC.

SELECT CASH FLOW DATA (UNAUDITED)

(In thousands)

Three Months Ended March 31,

2023

2022

Net income

$         73,160

$         58,127

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization expense

8,625

8,173

Gain on sale of operations, net

(99)

—

Bad debt expense, net of recoveries

461

549

Adjustments to contingent earnout liability, net

630

642

Stock-based compensation expense

3,831

3,689

Other noncash adjustments

2,749

2,992

Net income, after adjustments to reconcile net income to net cash provided by operating activities

89,357

74,172

Changes in assets and liabilities, net of acquisitions and divestitures

(133,868)

(125,062)

Net cash used in operating activities

(44,511)

(50,890)

Net cash used in investing activities

(45,896)

(81,531)

Net cash provided by financing activities

61,778

170,446

Net (decrease) increase in cash, cash equivalents and restricted cash

(28,629)

38,025

Cash, cash equivalents and restricted cash at beginning of year

$       160,145

$       150,474

Cash, cash equivalents and restricted cash at end of period

$       131,516

$       188,499

Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheet:

Cash and cash equivalents

$           2,265

$              558

Restricted cash

25,109

33,394

Cash equivalents included in funds held for clients

104,142

154,547

Total cash, cash equivalents and restricted cash

$       131,516

$       188,499

CBIZ, INC.

SELECT FINANCIAL DATA AND RATIOS (UNAUDITED)

(In thousands)

March 31, 2023

December 31, 2022

Cash and cash equivalents

2,265

4,697

Restricted cash

25,109

28,487

Accounts receivable, net

442,781

334,498

Current assets before funds held for clients

501,617

397,113

Funds held for clients

148,240

171,313

Goodwill and other intangible assets, net

1,005,873

951,702

Total assets

2,038,196

1,879,124

Current liabilities before client fund obligations

310,942

338,940

Client fund obligations

150,216

173,467

Total long-term debt, net

401,772

263,654

Total liabilities

1,266,266

1,165,672

Treasury stock

(853,793)

(824,778)

Total stockholders' equity

771,930

713,452

Debt to equity

52.0 %

37.0 %

Days sales outstanding (DSO) ⁽¹⁾

94

74

Shares outstanding

50,312

50,180

Basic weighted average common shares outstanding

50,367

51,502

Diluted weighted average common shares outstanding

50,762

52,388

(1)  DSO is provided for continuing operations and represents accounts receivable, net, at the end of the period, divided by trailing twelve month daily revenue.
      The Company has included DSO data because such data is commonly used as a performance measure by analysts and investors and as a measure of the
      Company's ability to collect on receivables in a timely manner. DSO should not be regarded as an alternative or replacement to any measurement of
      performance under GAAP. DSO on March 31, 2022 was 94.

CBIZ, INC.

GAAP RECONCILIATION

Net Income and Diluted Earnings Per Share ("EPS") to Adjusted Net Income, EPS and EBITDA⁽¹⁾

(In thousands, except per share data)

Three Months Ended March 31, 2023

Three Months Ended March 31, 2022

Amounts

EPS

Amounts

EPS

Net income

$      73,160

$          1.44

$      58,127

$          1.10

Adjustments:

Transaction costs related to acquisitions ⁽²⁾

611

0.01

1,329

0.03

Integration & retention costs related to acquisitions ⁽²⁾

1,003

0.02

4,684

0.09

Income tax effect related to adjustments

(428)

(0.01)

(1,500)

(0.04)

Adjusted net income

$      74,346

$          1.46

$      62,640

$          1.18

Interest expense

$        3,641

$        1,259

Income tax expense

26,407

19,321

Gain on sale of operations, net

(99)

—

Tax effect related to the adjustments above

428

1,500

Depreciation

2,975

2,779

Amortization

5,650

5,394

Adjusted EBITDA

$    113,348

$      92,893

(1)  CBIZ reports its financial results in accordance with GAAP. This table reconciles Adjusted net income, Adjusted EPS and Adjusted EBITDA to the most directly
      comparable GAAP financial measures, "Net income" and "Diluted earnings per share." Adjusted net income, Adjusted EPS and Adjusted EBITDA are not
      defined by GAAP and should not be regarded as an alternative or replacement to any measurement of performance under GAAP. Adjusted net income, Adjusted
      EPS and Adjusted EBITDA, which excludes significant non-operating related gains and losses, are used by the Company for its shareholders and debt holders
      as a performance measure to evaluate, assess and benchmark the Company's operational results.

(2)  These costs include, but are not limited to, certain consulting, technology, personnel, as well as other first year operating and general administrative costs that are
       non-recurring in nature. Amounts reported in 2023 related to the costs incurred related to the Somerset acquisition and those reported in 2022 related to the
       Marks Paneth acquisition.

CBIZ, INC.

GAAP RECONCILIATION

Full Year 2023 Net Income and Diluted Earnings Per Share ("EPS") to

Adjusted Net Income, EPS and EBITDA Guidance

(Amount in millions, except per share data)

Full Year 2023 Guidance

Low

High

Amount

Per Share

Amount

Per Share

Net income

$     121.1

$       2.31

$     123.2

$       2.36

Transaction and integration costs related to Somerset ⁽¹⁾

3.6

0.07

3.6

0.07

Income tax effect related to adjustments

(1.0)

$     (0.02)

(1.0)

$     (0.02)

Adjusted net income

$     123.7

$       2.36

$     125.8

$       2.41

Interest expense

$       20.8

$       20.8

Income tax expense

47.2

47.2

Tax effect related to the adjustments above

1.0

1.0

Depreciation and amortization

35.9

35.9

Adjusted EBITDA

$     228.6

$     230.7

GAAP diluted EPS for 2022

$       2.01

$       2.01

Adjusted diluted EPS for 2022 ⁽²⁾

$       2.13

$       2.13

GAAP diluted EPS range

15 %

17 %

 Adjusted diluted EPS range

11 %

13 %

GAAP Net income for 2022

$     105.4

$     105.4

GAAP Net income range

15 %

17 %

(1)  Includes estimated integration costs related to the Somerset acquisition. Such costs include, but are not limited to, certain consulting, technology, personnel, as well as
      other first year operating and general administrative costs that are non-recurring in nature.

(2)  A reconciliation between net income and adjusted net income and a reconciliation between GAAP diluted EPS and Adjusted diluted EPS for fiscal year ended
      December 31, 2022 are presented as follows:

Year Ended December 31, 2022

In millions

EPS

Net income

$                    105.4

$                      2.01

Adjustments:

Gain on sale of assets, net

(2.4)

(0.05)

Transaction costs related to Marks Paneth

1.3

0.03

Integration and retention costs related to Marks Paneth

9.2

0.18

Income tax effect related to adjustments

(2.1)

(0.04)

Adjusted net income

$                    111.4

$                      2.13