NYSE$TNET

TriNet Group Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

TriNet's Q2 2022 financial results were announced, demonstrating revenue growth and strategic progress.

TriNet announced strong second quarter results with a 9% increase in total revenues to $1.2 billion. Professional service revenues grew by 17% to $182 million. Net income was $85 million, or $1.35 per diluted share, while Adjusted Net Income reached $108 million, or $1.72 per diluted share.

  • Total revenues increased by 9% year-over-year to $1.2 billion.
  • Professional service revenues grew by 17% year-over-year to $182 million.
  • Net income was $85 million, or $1.35 per diluted share.
  • Adjusted Net Income was $108 million, or $1.72 per diluted share.

Headline financials

Total Revenue

$1.2B

Previous: $1.1B+9.1%
EPS (adj)

$1.72

Previous: $1.56+10.3%
Average WSEs

351.4K

Previous: 332.7K+5.6%
Total WSEs

357.9K

Previous: 339.9K+5.3%
Capital Expenditures

-$26M

Previous: -$17M-52.9%
Free Cash Flow

$59M

Previous: $74M-20.3%
Net Income

$85M

Previous: $91M-6.6%
Operating Income

$119M

Previous: $121M-1.7%
Gross Profit

-$868M

Previous: -$817M-6.2%
Cash & Equivalents

$336M

Previous: $464M-27.6%
Total Assets

$3.04B

Previous: $2.98B+2.2%
Stock-Based Comp

$18M

Previous: $13M+38.5%

Revenue & EPS history

TriNet · Revenue · Quarterly

$1.2B

Q2 2022+9.1%vs Q2 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

TriNet · $1.02B total across 1 segment · Q2 2022

  • Insurance Service Revenues
    $1.02B+7.8%

Forward guidance

TriNet provided guidance for Q3 2022 and full year 2022. Total revenues are expected to increase by 7-8% in Q3 and 8-9% for the full year. Professional service revenues are projected to grow by 18-20% in Q3 and 17-18% for the full year. The insurance cost ratio is expected to be 88.5-90.0% for Q3 and 87.0-86.0% for the full year.

Tailwinds

  • Total Revenues: 7% to 8%
  • Professional Service Revenues: 18% to 20%
  • Insurance Cost Ratio: 88.5% to 90.0%
  • Diluted net income per share of common stock: $0.46 to $0.66
  • Adjusted Net Income per share - diluted: $0.87 to $1.08

Headwinds

  • Total Revenues: 8% to 9%
  • Professional Service Revenues: 17% to 18%
  • Insurance Cost Ratio: 87.0% to 86.0%
  • Diluted net income per share of common stock: $4.10 to $4.68
  • Adjusted Net Income per share - diluted: $5.60 to $6.20

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 2022

Historical avgQ2 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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