TriNet Q4 2024 Earnings Report

Key Takeaways

TriNet reported modest revenue growth but faced a net loss due to restructuring costs. Strong Worksite Employee retention was a key highlight.

Total Revenue

$1.28B

Previous year: $1.25B

+2.6%

EPS

$0.44

Previous year: $1.6

-72.5%

Total Worksite Employees

360.68K

Previous year: 347.54K

+3.8%

Average Worksite Employees

355.16K

Previous year: 337.92K

+5.1%

Insurance Cost

$1.03B

Previous year: $919M

+11.5%

Cash and Equivalents

$360M

Previous year: $1.62B

-77.8%

Free Cash Flow

$201M

Previous year: $554M

-63.7%

Total Assets

$4.12B

Previous year: $3.69B

+11.5%

TriNet Revenue

TriNet EPS

TriNet Revenue by Segment

Forward Guidance

TriNet expects revenue to remain stable in FY25, with an emphasis on insurance repricing and operational efficiencies to drive margin improvement.

Positive Outlook

Strong Worksite Employee retention supports future revenue stability.
Continued focus on insurance repricing to optimize costs.
Investments in benefits and tech-enabled service models expected to drive efficiencies.
Revenue expected to range between $4.9B and $5.1B in FY25.
Adjusted EPS guidance set between $3.25 and $4.75.

Challenges Ahead

Restructuring costs will continue to impact short-term profitability.
Lower Adjusted EBITDA margin guidance (7%-9% vs. 9.6% in FY24).
Ongoing insurance cost pressures affecting profitability.
Macroeconomic conditions may impact client demand and pricing strategy.
Expected decline in professional service revenue in FY25.