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Jun 30, 2021

TriNet Q2 2021 Earnings Report

TriNet's financial performance in Q2 2021 reflected a 16% increase in total revenues, reaching $1.1 billion.

Key Takeaways

TriNet reported strong financial and operational results for Q2 2021, with total revenues increasing by 16% to $1.1 billion. Net income was $91 million, or $1.37 per diluted share. The company's total Worksite Employees (WSEs) increased by 9% to approximately 340,000.

Total revenues increased 16% to $1.1 billion compared to the same period last year.

Net income was $91 million, or $1.37 per diluted share, compared to $126 million, or $1.87 per diluted share, in the same period last year.

Adjusted Net Income was $104 million, or $1.56 per diluted share, compared to $136 million, or $2.03 per diluted share, in the same period last year.

Total Worksite Employees (WSEs) increased 9% to approximately 340,000.

Total Revenue
$302M
Previous year: $335M
-9.9%
EPS
$1.56
Previous year: $2.03
-23.2%
Average WSEs
332.72K
Previous year: 313.7K
+6.1%
Total WSEs
339.94K
Previous year: 313K
+8.6%
Gross Profit
$236M
Previous year: $275M
-14.2%
Cash and Equivalents
$464M
Previous year: $637M
-27.2%
Free Cash Flow
-$27M
Previous year: $140M
-119.3%
Total Assets
$2.98B
Previous year: $2.8B
+6.3%

TriNet

TriNet

TriNet Revenue by Segment

Forward Guidance

TriNet provided its third quarter and full-year 2021 guidance.

Positive Outlook

  • Total Revenues Q3 2021: 15% - 17%
  • Professional Service Revenues Q3 2021: 15% - 20%
  • Net Insurance Margin Q3 2021: 8.5% - 10.5%
  • Total Revenues Full Year 2021: 10% - 12%
  • Professional Service Revenues Full Year 2021: 13% - 15%

Challenges Ahead

  • Diluted net income per share of common stock Q3 2021: $0.48 - $0.72
  • Adjusted Net Income per share - diluted Q3 2021: $0.62 - $0.87
  • Diluted net income per share of common stock Full Year 2021: $3.60 - $4.03
  • Adjusted Net Income per share - diluted Full Year 2021: $4.25 - $4.70
  • Ratio of Insurance Costs to Insurance Service Revenues Q3 2021: 91.5% - 89.5%

Revenue & Expenses

Visualization of income flow from segment revenue to net income