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Sep 30, 2022

TriNet Q3 2022 Earnings Report

TriNet's Q3 2022 financial results were announced, demonstrating growth in total revenues and professional service revenues. The company expanded its product line and achieved strong financial performance.

Key Takeaways

TriNet Group, Inc. reported an 8% increase in total revenues, reaching $1.2 billion for Q3 2022. Professional service revenues saw a 21% increase, totaling $189 million. Net income remained consistent at $77 million, with diluted net income per share increasing to $1.22. The company also provided Q4 and full-year 2022 guidance.

Total revenues increased by 8% to $1.2 billion compared to the same period last year.

Professional service revenues grew by 21% to $189 million compared to the same period last year.

Net income was $77 million, or $1.22 per diluted share, compared to $77 million, or $1.16 per diluted share, in the same period last year.

Adjusted Net Income was $104 million, or $1.64 per diluted share, compared to Adjusted Net Income of $87 million, or $1.31 per diluted share, in the same period last year.

Total Revenue
$1.24B
Previous year: $297M
+317.8%
EPS
$1.64
Previous year: $1.31
+25.2%
Total WSEs
351.84K
Previous year: 351.27K
+0.2%
Average WSEs
351.89K
Previous year: 347.5K
+1.3%
Gross Profit
$290M
Previous year: $236M
+22.9%
Cash and Equivalents
$454M
Previous year: $525M
-13.5%
Free Cash Flow
-$62M
Previous year: $162M
-138.3%
Total Assets
$3.08B
Previous year: $3.07B
+0.3%

TriNet

TriNet

TriNet Revenue by Segment

Forward Guidance

TriNet provided its third quarter and full-year 2022 guidance. Percentages reflect the increase or (decrease) from the prior year quarter and prior year end.

Positive Outlook

  • Professional Service Revenues: 7% - 10% (Q4 2022), 17% - 18% (Full Year 2022)

Challenges Ahead

  • Total Revenues: (2)% - 0% (Q4 2022), 7% - 8% (Full Year 2022)
  • Diluted net income (loss) per share of common stock: $(0.47) - $0.07 (Q4 2022), $4.30 - $4.85 (Full Year 2022)
  • Adjusted Net Income per share - diluted: $0.00 - $0.50 (Q4 2022), $5.90 - $6.40 (Full Year 2022)
  • Insurance Cost Ratio: 93.0% - 97.0% (Q4 2022), 86.0% - 85.0% (Full Year 2022)

Revenue & Expenses

Visualization of income flow from segment revenue to net income