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Sep 30, 2023

TriNet Q3 2023 Earnings Report

TriNet's financial performance for Q3 2023 was announced, featuring a revenue of $1.2 billion and sequential growth in Ending WSEs of 1%.

Key Takeaways

TriNet reported a 2% decrease in total revenues, reaching $1.2 billion. Net income increased to $94 million, or $1.63 per diluted share, while Adjusted Net Income rose to $109 million, or $1.91 per diluted share. Ending Worksite Employees (WSEs) decreased 5% year-over-year but increased 1% sequentially, totaling approximately 336,000.

Total revenues decreased by 2% to $1.2 billion compared to the same period last year.

Net income was $94 million, or $1.63 per diluted share, compared to $77 million, or $1.22 per diluted share, in the same period last year.

Ending Worksite Employees (WSEs) decreased 5% year-over-year but increased 1% sequentially, reaching approximately 336,000.

Average WSEs decreased 5% year-over-year but increased 2% sequentially, totaling approximately 333,000.

Total Revenue
$1.22B
Previous year: $1.24B
-1.5%
EPS
$1.91
Previous year: $1.64
+16.5%
Total WSEs
335.74K
Previous year: 351.84K
-4.6%
Average WSEs
333.29K
Previous year: 351.89K
-5.3%
Gross Profit
$274M
Previous year: $290M
-5.5%
Cash and Equivalents
$170M
Previous year: $454M
-62.6%
Free Cash Flow
-$125M
Previous year: -$62M
+101.6%
Total Assets
$2.97B
Previous year: $3.08B
-3.7%

TriNet

TriNet

TriNet Revenue by Segment

Forward Guidance

TriNet provided its fourth quarter and full-year 2023 guidance.

Positive Outlook

  • Total Revenues Q4 2023: 4% increase
  • Total Revenues Full Year 2023: 1% increase
  • Professional Service Revenues Q4 2023: 1% increase
  • Professional Service Revenues Full Year 2023: 1% increase
  • Adjusted Net Income per share - diluted Full Year 2023 High: $7.55

Challenges Ahead

  • Professional Service Revenues Q4 2023: (2)% decrease
  • Diluted net income per share of common stock Q4 2023 Low: $0.26
  • Adjusted Net Income per share - diluted Q4 2023 Low: $0.59
  • Insurance Cost Ratio Full Year 2023 High: 84.5 %
  • Insurance Cost Ratio Full Year 2023 Low: 85.5 %

Revenue & Expenses

Visualization of income flow from segment revenue to net income