Pest Index Up 13% Year-Over-Year in November

The total U.S. William Blair PCO Bookkeepers & M&A Specialists Pest Index increased 13% year-over-year in November, accelerating from 10% in October. On a sequential basis, the index decreased 6% from October 2022.

The index includes recurring and non-recurring revenue for residential pest, commercial pest and termite. It does not include residential door-to-door companies.

“This was a surprising result given increasing macroeconomic uncertainty and the deceleration we have observed in the index over the last several months,” said Tim Mulrooney, equity research analyst at William Blair.

Dan Gordon, managing member of PCO Bookkeepers & M&A Specialists, said, “While it looks to be a surprise to the upside, I believe most of the growth has come from price increases because of the spike in inflation. Going forward it will be interesting to see if this momentum continues into the new year.”

Year to date, the total pest index increased 15% year-over-year. Over the last 12 months, the total pest index increased 15% year-over-year.

The November result was primarily due to an acceleration in the residential pest and commercial pest indices:

• The Residential Pest Index increased 16% year-over-year and decreased 9% on a sequential basis.
• The Commercial Pest Index increased 17% year-over-year and decreased 4% on a sequential basis.
• The Termite Index was flat year-over-year and decreased 5% on a sequential basis.
• The Bed Bug Index decreased 2% year-over-year and decreased 1% on a sequential basis.