NYSE$TNET

TriNet Group Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

TriNet's financial performance saw acceleration of several positive trends, service and value proposition resonated, and new sales increased.

TriNet Group, Inc. announced its second quarter 2023 results with total revenues increasing by 1% to $1.2 billion. Net income was $83 million, or $1.38 per diluted share. The company's stock repurchase program was increased by $1 billion, bringing the total available for repurchase to $1.4 billion.

  • Total revenues increased 1% to $1.2 billion compared to the same period last year.
  • Professional service revenues decreased 3% to $177 million compared to the same period last year.
  • Net income was $83 million, or $1.38 per diluted share, compared to net income of $85 million, or $1.35 per diluted share, in the same period last year.
  • Adjusted Net Income was $105 million, or $1.74 per diluted share, compared to Adjusted Net Income of $108 million, or $1.72 per diluted share, in the same period last year.

Headline financials

Total Revenue

$1.21B

Previous: $1.2B+0.8%
EPS (adj)

$1.74

Previous: $1.72+1.2%
Average WSEs

327.4K

Previous: 351.4K-6.8%
Total WSEs

334.0K

Previous: 357.9K-6.7%
Capital Expenditures

-$34M

Previous: -$26M-30.8%
Free Cash Flow

$49M

Previous: $59M-16.9%
Net Income

$83M

Previous: $85M-2.4%
Operating Income

$97M

Previous: $119M-18.5%
Gross Profit

-$886M

Previous: -$868M-2.1%
Cash & Equivalents

$482M

Previous: $336M+43.5%
Total Assets

$3.29B

Previous: $3.04B+8.1%
Stock-Based Comp

$17M

Previous: $18M-5.6%

Revenue & EPS history

TriNet · Revenue · Quarterly

$1.21B

Q2 2023+0.8%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

TriNet · $1.03B total across 1 segment · Q2 2023

  • Insurance Service Revenues
    $1.03B+1.4%

Forward guidance

Third Quarter and Full-Year 2023 Guidance: Percentages reflect the increase or (decrease) from the prior year quarter and prior year end.

Tailwinds

  • Total Revenues Q3 2023: (1)% - %
  • Total Revenues Full Year 2023: 1% - 2%
  • Professional Service Revenues Q3 2023: (2)% - 1%
  • Professional Service Revenues Full Year 2023: % - 2%
  • Diluted net income (loss) per share of common stock Full Year 2023: $4.93 - $5.71

Headwinds

  • Total Revenues Q3 2023: (1)% - %
  • Professional Service Revenues Q3 2023: (2)% - 1%
  • Insurance Cost Ratio Q3 2023: 89.0%
  • Insurance Cost Ratio Full Year 2023: 87.5%
  • Diluted net income (loss) per share of common stock Q3 2023: $0.93 - $1.16

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 2023

Historical avgQ2 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro