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Mar 31, 2022
TriNet Q1 2022 Earnings Report
Announced first quarter results with a 15% increase in total revenues, a 27% increase in professional service revenues, and net income per diluted share of $2.21 and adjusted net income per diluted share of $2.55.
Key Takeaways
TriNet reported a strong first quarter in 2022, marked by a 15% increase in total revenues to $1.2 billion and a 27% increase in professional service revenues to $194 million. The company's net income was $146 million, with a diluted share earning of $2.21. Strategic initiatives, including the acquisition of Zenefits, and returning capital to shareholders through a $316 million tender offer, contributed to the company's performance.
Total revenues increased by 15% to $1.2 billion compared to the same period last year.
Professional service revenues increased by 27% to $194 million compared to the same period last year.
Net income was $146 million, or $2.21 per diluted share, compared to $101 million, or $1.51 per diluted share, in the same period last year.
Adjusted Net Income was $168 million, or $2.55 per diluted share, compared to $111 million, or $1.66 per diluted share, in the same period last year.
Revenue by Segment
Forward Guidance
TriNet provided its second quarter and full-year 2022 guidance. Total Revenues are expected to increase 8%-9% for Q2 2022 and 7%-9% for the full year 2022. Professional Service Revenues are expected to increase 14%-15% for Q2 2022 and 15%-18% for the full year 2022. The Insurance Cost Ratio is expected to be 88.5%-87.5% for Q2 2022 and 89.0%-88.0% for the full year 2022. Diluted net income per share of common stock is expected to be $0.69-$0.80 for Q2 2022 and $3.28-$3.91 for the full year 2022. Adjusted Net Income per share - diluted is expected to be $1.10-$1.21 for Q2 2022 and $4.70-$5.35 for the full year 2022.
Positive Outlook
- Total Revenues are expected to increase 8%-9% for Q2 2022 and 7%-9% for the full year 2022.
- Professional Service Revenues are expected to increase 14%-15% for Q2 2022 and 15%-18% for the full year 2022.
- Diluted net income per share of common stock is expected to be $0.69-$0.80 for Q2 2022.
- Diluted net income per share of common stock is expected to be $3.28-$3.91 for the full year 2022.
- Adjusted Net Income per share - diluted is expected to be $1.10-$1.21 for Q2 2022.
Challenges Ahead
- Insurance Cost Ratio is expected to be 88.5%-87.5% for Q2 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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