NYSE$TNET

TriNet Group Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Announced first quarter results with a 15% increase in total revenues, a 27% increase in professional service revenues, and net income per diluted share of $2.21 and adjusted net income per diluted share of $2.55.

TriNet reported a strong first quarter in 2022, marked by a 15% increase in total revenues to $1.2 billion and a 27% increase in professional service revenues to $194 million. The company's net income was $146 million, with a diluted share earning of $2.21. Strategic initiatives, including the acquisition of Zenefits, and returning capital to shareholders through a $316 million tender offer, contributed to the company's performance.

  • Total revenues increased by 15% to $1.2 billion compared to the same period last year.
  • Professional service revenues increased by 27% to $194 million compared to the same period last year.
  • Net income was $146 million, or $2.21 per diluted share, compared to $101 million, or $1.51 per diluted share, in the same period last year.
  • Adjusted Net Income was $168 million, or $2.55 per diluted share, compared to $111 million, or $1.66 per diluted share, in the same period last year.

Headline financials

Total Revenue

$1.22B

Previous: $1.06B+14.9%
EPS (adj)

$2.55

Previous: $1.66+53.6%
Average WSEs

343.2K

Previous: 321.0K+6.9%
Total WSEs

348.3K

Previous: 326.0K+6.9%
Capital Expenditures

-$11M

Previous: -$5M-120.0%
Free Cash Flow

$135M

Previous: $96M+40.6%
Net Income

$146M

Previous: $101M+44.6%
Operating Income

$204M

Previous: $138M+47.8%
Gross Profit

-$836M

Previous: -$763M-9.6%
Cash & Equivalents

$235M

Previous: $500M-53.0%
Total Assets

$3.2B

Previous: $3.01B+6.6%
Stock-Based Comp

$12M

Previous: $11M+9.1%

Revenue & EPS history

TriNet · Revenue · Quarterly

$1.22B

Q1 2022+14.9%vs Q1 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

TriNet · $1.02B total across 1 segment · Q1 2022

  • Insurance Service Revenues
    $1.02B+12.9%

Forward guidance

TriNet provided its second quarter and full-year 2022 guidance. Total Revenues are expected to increase 8%-9% for Q2 2022 and 7%-9% for the full year 2022. Professional Service Revenues are expected to increase 14%-15% for Q2 2022 and 15%-18% for the full year 2022. The Insurance Cost Ratio is expected to be 88.5%-87.5% for Q2 2022 and 89.0%-88.0% for the full year 2022. Diluted net income per share of common stock is expected to be $0.69-$0.80 for Q2 2022 and $3.28-$3.91 for the full year 2022. Adjusted Net Income per share - diluted is expected to be $1.10-$1.21 for Q2 2022 and $4.70-$5.35 for the full year 2022.

Tailwinds

  • Total Revenues are expected to increase 8%-9% for Q2 2022 and 7%-9% for the full year 2022.
  • Professional Service Revenues are expected to increase 14%-15% for Q2 2022 and 15%-18% for the full year 2022.
  • Diluted net income per share of common stock is expected to be $0.69-$0.80 for Q2 2022.
  • Diluted net income per share of common stock is expected to be $3.28-$3.91 for the full year 2022.
  • Adjusted Net Income per share - diluted is expected to be $1.10-$1.21 for Q2 2022.

Headwinds

  • Insurance Cost Ratio is expected to be 88.5%-87.5% for Q2 2022.
  • Insurance Cost Ratio is expected to be 89.0%-88.0% for the full year 2022.
  • Adjusted Net Income per share - diluted is expected to be $4.70-$5.35 for the full year 2022.
  • Net income is expected to decrease (45)%-(52)% for Q2 2022.
  • Net income is expected to decrease (25)%-(37)% for the full year 2022.

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 2022

Historical avgQ1 2022

+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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