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Jun 30, 2022

TriNet Q2 2022 Earnings Report

TriNet's Q2 2022 financial results were announced, demonstrating revenue growth and strategic progress.

Key Takeaways

TriNet announced strong second quarter results with a 9% increase in total revenues to $1.2 billion. Professional service revenues grew by 17% to $182 million. Net income was $85 million, or $1.35 per diluted share, while Adjusted Net Income reached $108 million, or $1.72 per diluted share.

Total revenues increased by 9% year-over-year to $1.2 billion.

Professional service revenues grew by 17% year-over-year to $182 million.

Net income was $85 million, or $1.35 per diluted share.

Adjusted Net Income was $108 million, or $1.72 per diluted share.

Total Revenue
$348M
Previous year: $302M
+15.2%
EPS
$1.72
Previous year: $1.56
+10.3%
Total WSEs
357.86K
Previous year: 339.94K
+5.3%
Average WSEs
351.37K
Previous year: 332.72K
+5.6%
Gross Profit
$272M
Previous year: $236M
+15.3%
Cash and Equivalents
$336M
Previous year: $464M
-27.6%
Free Cash Flow
-$104M
Previous year: -$27M
+285.2%
Total Assets
$3.04B
Previous year: $2.98B
+2.2%

TriNet

TriNet

TriNet Revenue by Segment

Forward Guidance

TriNet provided guidance for Q3 2022 and full year 2022. Total revenues are expected to increase by 7-8% in Q3 and 8-9% for the full year. Professional service revenues are projected to grow by 18-20% in Q3 and 17-18% for the full year. The insurance cost ratio is expected to be 88.5-90.0% for Q3 and 87.0-86.0% for the full year.

Positive Outlook

  • Total Revenues: 7% to 8%
  • Professional Service Revenues: 18% to 20%
  • Insurance Cost Ratio: 88.5% to 90.0%
  • Diluted net income per share of common stock: $0.46 to $0.66
  • Adjusted Net Income per share - diluted: $0.87 to $1.08

Challenges Ahead

  • Total Revenues: 8% to 9%
  • Professional Service Revenues: 17% to 18%
  • Insurance Cost Ratio: 87.0% to 86.0%
  • Diluted net income per share of common stock: $4.10 to $4.68
  • Adjusted Net Income per share - diluted: $5.60 to $6.20

Revenue & Expenses

Visualization of income flow from segment revenue to net income