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Dec 31, 2021

TriNet Q4 2021 Earnings Report

Reported record Q4 and Fiscal Year 2021 results and an increase to the stock repurchase program.

Key Takeaways

TriNet reported a strong fourth quarter, with a 16% increase in total revenues and a 23% increase in professional service revenues. Net income increased significantly, and the company increased its stock repurchase program by $300 million.

Professional service revenues increased 23% to $174 million compared to the same period last year.

Total revenues increased 16% to $1.2 billion compared to the same period last year.

Net income was $69 million, or $1.03 per diluted share.

Total WSEs increased 10% compared to the same period last year, to approximately 365,000.

Total Revenue
$293M
Previous year: $221M
+32.6%
EPS
$1.13
Previous year: $0.44
+156.8%
Total WSEs
364.94K
Previous year: 332K
+9.9%
Average WSEs
358.75K
Gross Profit
$220M
Previous year: $151M
+45.7%
Cash and Equivalents
$612M
Previous year: $301M
+103.3%
Free Cash Flow
$223M
Previous year: $577M
-61.4%
Total Assets
$3.31B
Previous year: $3.04B
+8.7%

TriNet

TriNet

TriNet Revenue by Segment

Forward Guidance

The company provided its first quarter and full-year 2022 guidance.

Positive Outlook

  • Q1 2022 Total Revenues are expected to increase between 11% and 12%.
  • Q1 2022 Professional Service Revenues are expected to increase between 16% and 17%.
  • Q1 2022 Diluted net income per share of common stock is expected to be between $1.71 and $2.03.
  • Q1 2022 Adjusted Net Income per share - diluted is expected to be between $1.89 and $2.22.
  • Full Year 2022 Adjusted Net Income per share - diluted is expected to be between $4.55 and $5.20.

Challenges Ahead

  • Full Year 2022 Insurance Cost Ratio is expected to be between 88.0% and 89.0%.
  • Full Year 2022 Total Revenues are expected to increase between 4% and 7%.
  • Full Year 2022 Professional Service Revenues are expected to increase between 6% and 9%.
  • Full Year 2022 Diluted net income per share of common stock is expected to be between $3.87 and $4.51.
  • Full Year 2022 Net income is expected to decrease.

Revenue & Expenses

Visualization of income flow from segment revenue to net income