NYSE$TNET

TriNet Group Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

TriNet's financial performance in Q2 2021 reflected a 16% increase in total revenues, reaching $1.1 billion.

TriNet reported strong financial and operational results for Q2 2021, with total revenues increasing by 16% to $1.1 billion. Net income was $91 million, or $1.37 per diluted share. The company's total Worksite Employees (WSEs) increased by 9% to approximately 340,000.

  • Total revenues increased 16% to $1.1 billion compared to the same period last year.
  • Net income was $91 million, or $1.37 per diluted share, compared to $126 million, or $1.87 per diluted share, in the same period last year.
  • Adjusted Net Income was $104 million, or $1.56 per diluted share, compared to $136 million, or $2.03 per diluted share, in the same period last year.
  • Total Worksite Employees (WSEs) increased 9% to approximately 340,000.

Headline financials

Total Revenue

$1.1B

Previous: $335M+228.4%
EPS (adj)

$1.56

Previous: $2.03-23.2%
Average WSEs

332.7K

Previous: 313.7K+6.1%
Total WSEs

339.9K

Previous: 313.0K+8.6%
Capital Expenditures

-$17M

Previous: $12M-241.7%
Free Cash Flow

$74M

Previous: $140M-47.1%
Net Income

$91M

Previous: $126M-27.8%
Operating Income

$121M

Previous: $173M-30.1%
Gross Profit

-$817M

Previous: $275M-397.1%
Cash & Equivalents

$464M

Previous: $637M-27.2%
Total Assets

$2.98B

Previous: $2.8B+6.3%
Stock-Based Comp

$13M

Previous: $11M+18.2%

Revenue & EPS history

TriNet · Revenue · Quarterly

$1.1B

Q2 2021+228.4%vs Q2 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

TriNet · $944M total across 1 segment · Q2 2021

  • Insurance Service Revenues
    $944M+14.1%

Forward guidance

TriNet provided its third quarter and full-year 2021 guidance.

Tailwinds

  • Total Revenues Q3 2021: 15% - 17%
  • Professional Service Revenues Q3 2021: 15% - 20%
  • Net Insurance Margin Q3 2021: 8.5% - 10.5%
  • Total Revenues Full Year 2021: 10% - 12%
  • Professional Service Revenues Full Year 2021: 13% - 15%

Headwinds

  • Diluted net income per share of common stock Q3 2021: $0.48 - $0.72
  • Adjusted Net Income per share - diluted Q3 2021: $0.62 - $0.87
  • Diluted net income per share of common stock Full Year 2021: $3.60 - $4.03
  • Adjusted Net Income per share - diluted Full Year 2021: $4.25 - $4.70
  • Ratio of Insurance Costs to Insurance Service Revenues Q3 2021: 91.5% - 89.5%

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 Q2 2021

Historical avgQ2 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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