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TriNet
🇺🇸 NYSE:TNET
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Jun 30, 2024

TriNet Q2 2024 Earnings Report

TriNet's financial results for Q2 2024 were announced, showcasing revenue growth and strategic financial management amidst a challenging environment for SMBs.

Key Takeaways

TriNet reported a 1% increase in total revenues, reaching $1.2 billion, and a 5% increase in professional service revenues, totaling $186 million. Net income was $60 million, or $1.20 per diluted share, while adjusted net income was $78 million, or $1.53 per diluted share. The company is focused on efficient execution, customer retention, and returning capital to shareholders.

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

Professional service revenues increased by 5% to $186 million compared to the same period last year.

Net income was $60 million, or $1.20 per diluted share.

Average WSEs increased 7% to approximately 351,000.

Total Revenue
$1.23B
Previous year: $1.21B
+1.4%
EPS
$1.53
Previous year: $1.74
-12.1%
Total WSEs
351.46K
Previous year: 334.05K
+5.2%
Gross Profit
$216M
Previous year: $262M
-17.6%
Cash and Equivalents
$177M
Previous year: $482M
-63.3%
Free Cash Flow
-$140M
Previous year: $127M
-210.2%
Total Assets
$3.7B
Previous year: $3.29B
+12.6%

TriNet

TriNet

TriNet Revenue by Segment

Forward Guidance

TriNet provided guidance for Q3 2024 and full year 2024, anticipating growth in professional service revenues, but a potential decrease in total revenues for the full year. The insurance cost ratio is expected to be between 91.0% and 87.5%. Diluted net income per share is projected to be between $0.70 and $1.20 for Q3 and between $3.94 and $5.46 for the full year.

Positive Outlook

  • Professional Service Revenues are expected to increase 3% for Q3 2024.
  • Professional Service Revenues are expected to increase between 1% and 5% for the full year 2024.
  • Adjusted Net Income per share - diluted is expected to be between $1.00 and $1.50 for Q3 2024.
  • Adjusted Net Income per share - diluted is expected to be between $5.25 and $6.80 for the full year 2024.
  • The TriNet team will remain focused on our customers.

Challenges Ahead

  • Total Revenues are expected to remain unchanged for Q3 2024.
  • Total Revenues are expected to decrease between 1% and increase 4% for the full year 2024.
  • Insurance Cost Ratio is expected to be 91.0% for Q3 2024.
  • Diluted net income per share of common stock is expected to be $0.70 for Q3 2024.
  • Diluted net income per share of common stock is expected to be $3.94 for the full year 2024.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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