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Jun 30, 2023

TriNet Q2 2023 Earnings Report

TriNet's financial performance saw acceleration of several positive trends, service and value proposition resonated, and new sales increased.

Key Takeaways

TriNet Group, Inc. announced its second quarter 2023 results with total revenues increasing by 1% to $1.2 billion. Net income was $83 million, or $1.38 per diluted share. The company's stock repurchase program was increased by $1 billion, bringing the total available for repurchase to $1.4 billion.

Total revenues increased 1% to $1.2 billion compared to the same period last year.

Professional service revenues decreased 3% to $177 million compared to the same period last year.

Net income was $83 million, or $1.38 per diluted share, compared to net income of $85 million, or $1.35 per diluted share, in the same period last year.

Adjusted Net Income was $105 million, or $1.74 per diluted share, compared to Adjusted Net Income of $108 million, or $1.72 per diluted share, in the same period last year.

Total Revenue
$1.21B
Previous year: $348M
+247.4%
EPS
$1.74
Previous year: $1.72
+1.2%
Total WSEs
334.05K
Previous year: 357.86K
-6.7%
Average WSEs
327.38K
Previous year: 351.37K
-6.8%
Gross Profit
$262M
Previous year: $272M
-3.7%
Cash and Equivalents
$482M
Previous year: $336M
+43.5%
Free Cash Flow
$127M
Previous year: -$104M
-222.1%
Total Assets
$3.29B
Previous year: $3.04B
+8.1%

TriNet

TriNet

TriNet Revenue by Segment

Forward Guidance

Third Quarter and Full-Year 2023 Guidance: Percentages reflect the increase or (decrease) from the prior year quarter and prior year end.

Positive Outlook

  • Total Revenues Q3 2023: (1)% - %
  • Total Revenues Full Year 2023: 1% - 2%
  • Professional Service Revenues Q3 2023: (2)% - 1%
  • Professional Service Revenues Full Year 2023: % - 2%
  • Diluted net income (loss) per share of common stock Full Year 2023: $4.93 - $5.71

Challenges Ahead

  • Total Revenues Q3 2023: (1)% - %
  • Professional Service Revenues Q3 2023: (2)% - 1%
  • Insurance Cost Ratio Q3 2023: 89.0%
  • Insurance Cost Ratio Full Year 2023: 87.5%
  • Diluted net income (loss) per share of common stock Q3 2023: $0.93 - $1.16

Revenue & Expenses

Visualization of income flow from segment revenue to net income