NYSE$TNET

TriNet Group Inc. · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported a slight increase in total revenues and a significant rise in net service revenues.

TriNet Group, Inc. announced its Q1 2021 financial results, with total revenues increasing by 1% to $1.1 billion and net service revenues increasing by 9% to $309 million compared to the same period last year. Net income rose by 11% to $101 million, or $1.51 per diluted share, while adjusted net income increased by 14% to $111 million, or $1.66 per diluted share.

  • Total revenues increased by 1% to $1.1 billion, and net service revenues increased by 9% to $309 million year-over-year.
  • Net income was $101 million, or $1.51 per diluted share, compared to $91 million, or $1.31 per diluted share, in the same period last year.
  • Adjusted net income was $111 million, or $1.66 per diluted share, compared to $97 million, or $1.41 per diluted share, in the same period last year.
  • Total Worksite Employees (WSEs) decreased by 3% to approximately 326,000, and average WSEs decreased by 4% to approximately 321,000.

Headline financials

Total Revenue

$1.06B

Previous: $283M+274.6%
EPS (adj)

$1.66

Previous: $1.41+17.7%
Average WSEs

321.0K

Previous: 336.3K-4.6%
Total WSEs

326.0K

Previous: 336.8K-3.2%
Capital Expenditures

-$5M

Previous: $6M-183.3%
Free Cash Flow

$96M

Previous: -$288M+133.3%
Net Income

$101M

Previous: $91M+11.0%
Operating Income

$138M

Previous: $120M+15.0%
Gross Profit

-$763M

Previous: $219M-448.4%
Cash & Equivalents

$500M

Previous: $521M-4.0%
Total Assets

$3.01B

Previous: $2.77B+8.7%
Stock-Based Comp

$11M

Previous: $9M+22.2%

Revenue & EPS history

TriNet · Revenue · Quarterly

$1.06B

Q1 2021+274.6%vs Q1 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

TriNet · $907M total across 1 segment · Q1 2021

  • Insurance Service Revenues
    $907M+1.7%

Forward guidance

TriNet provided its second quarter and full-year 2021 guidance. Percentages reflect the increase or (decrease) from the prior year quarter and prior year end.

Tailwinds

  • Total revenues are expected to increase by 12% to 14% in Q2 2021 and 9% to 11% for the full year 2021.
  • Professional Service Revenues are expected to increase by 10% to 14% in Q2 2021 and 8% to 10% for the full year 2021.
  • Net Insurance Margin is expected to be between 10% and 11% for both Q2 2021 and the full year 2021.
  • Adjusted EBITDA Margin is projected to be between 35% and 39% for Q2 2021 and 38% to 40% for the full year 2021.
  • Diluted net income per share of common stock is expected to be $0.59 to $0.74 for Q2 2021 and $2.86 to $3.31 for the full year 2021.

Headwinds

  • Not enough information to generate 5 negatives

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.7%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+3.1%

Avg return

30 days after

50%

27 / 54 earnings

Positive

+25.2%

Q4 2018

Best reaction

-39.2%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.3%-1.1%+6.7%
Q4 2025-10.8%-7.7%-19.6%
Q3 2025-2.7%-4.4%-6.6%
Q2 2025-1.6%-0.4%+2.9%
Q1 2025-0.4%+1.0%+4.6%
Q4 2024-14.8%-21.7%-18.6%
Q3 2024-9.8%-6.5%+1.5%
Q2 2024-4.6%-4.2%-5.7%
Q1 2024-18.5%-19.7%-15.2%
Q4 2023+12.4%+8.9%+11.0%
Q3 2023-2.6%-8.9%-0.1%
Q2 2023+4.6%+9.0%+9.9%
Q1 2023+10.9%+12.5%+9.5%
Q4 2022+11.7%+15.5%-2.7%
Q3 2022-11.6%-12.1%-5.0%
Q2 2022+0.8%+2.0%+7.1%
Q1 2022-1.5%-4.2%-16.1%
Q4 2021+2.6%+3.6%+7.2%
Q3 2021+1.6%+4.4%+9.9%
Q2 2021+7.6%+13.2%+24.7%
Q1 2021-9.3%-8.2%-9.6%
Q4 2020-7.0%-5.3%-4.2%
Q3 2020-3.1%-4.6%+6.4%
Q2 2020+13.6%+6.7%+9.9%
Q1 2020+19.2%+6.1%+20.1%
Q4 2019+19.5%+14.7%-7.8%
Q3 2019-13.1%-14.3%-6.2%
Q2 2019+6.1%+0.7%-10.3%
Q1 2019+1.2%+5.5%+1.7%
Q4 2018+25.2%+26.2%+26.7%
Q3 2018+3.7%+2.6%-0.5%
Q2 2018-5.4%-5.0%+3.1%
Q1 2018+1.9%+0.8%+5.0%
Q4 2017+12.5%+11.8%+10.5%
Q3 2017+20.5%+20.4%+28.9%
Q2 2017+19.6%+17.6%+4.8%
Q1 2017+10.5%+7.2%+7.2%
Q4 2016+5.6%+5.2%+5.4%
Q3 2016+8.0%+5.4%+31.7%
Q2 2016-3.6%-3.1%-3.2%
Q1 2016+9.6%
Q4 2015-8.2%
Q3 2015-4.6%
Q2 2015-39.2%
Q1 2015-21.1%
Q4 2012-0.1%
Q4 2014-7.7%
Q3 2013+0.8%
Q3 2014-0.6%
Q2 2013+1.4%
Q2 2014+11.3%
Q1 2013-1.3%
Q4 2013-1.3%
Q1 2014-1.3%

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