NYSE$TNET

TriNet Group Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

TriNet's financial results for Q2 2024 were announced, showcasing revenue growth and strategic financial management amidst a challenging environment for SMBs.

TriNet reported a 1% increase in total revenues, reaching $1.2 billion, and a 5% increase in professional service revenues, totaling $186 million. Net income was $60 million, or $1.20 per diluted share, while adjusted net income was $78 million, or $1.53 per diluted share. The company is focused on efficient execution, customer retention, and returning capital to shareholders.

  • Total revenues increased by 1% to $1.2 billion compared to the same period last year.
  • Professional service revenues increased by 5% to $186 million compared to the same period last year.
  • Net income was $60 million, or $1.20 per diluted share.
  • Average WSEs increased 7% to approximately 351,000.

Headline financials

Total Revenue

$1.23B

Previous: $1.21B+1.4%
EPS

$1.20

Previous: $1.74-31.0%
Insurance Cost Ratio

88.0%

No prior period
Average WSEs

351.5K

Previous: 327.4K+7.4%
Total WSEs

354.0K

Previous: 334.0K+6.0%
Capital Expenditures

-$35M

Previous: -$34M-2.9%
Free Cash Flow

$25M

Previous: $49M-49.0%
Net Income

$60M

Previous: $83M-27.7%
Operating Income

$80M

Previous: $97M-17.5%
Gross Profit

-$935M

Previous: -$886M-5.5%
Cash & Equivalents

$177M

Previous: $482M-63.3%
Total Assets

$3.7B

Previous: $3.29B+12.6%
R&D Expense

$17M

No prior period
Stock-Based Comp

$18M

Previous: $17M+5.9%

Revenue & EPS history

TriNet · Revenue · Quarterly

$1.23B

Q2 2024+1.4%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

TriNet · $1.04B total across 1 segment · Q3 2023

  • Insurance Service Revenues
    $1.04B-1.4%

Forward guidance

TriNet provided guidance for Q3 2024 and full year 2024, anticipating growth in professional service revenues, but a potential decrease in total revenues for the full year. The insurance cost ratio is expected to be between 91.0% and 87.5%. Diluted net income per share is projected to be between $0.70 and $1.20 for Q3 and between $3.94 and $5.46 for the full year.

Tailwinds

  • Professional Service Revenues are expected to increase 3% for Q3 2024.
  • Professional Service Revenues are expected to increase between 1% and 5% for the full year 2024.
  • Adjusted Net Income per share - diluted is expected to be between $1.00 and $1.50 for Q3 2024.
  • Adjusted Net Income per share - diluted is expected to be between $5.25 and $6.80 for the full year 2024.
  • The TriNet team will remain focused on our customers.

Headwinds

  • Total Revenues are expected to remain unchanged for Q3 2024.
  • Total Revenues are expected to decrease between 1% and increase 4% for the full year 2024.
  • Insurance Cost Ratio is expected to be 91.0% for Q3 2024.
  • Diluted net income per share of common stock is expected to be $0.70 for Q3 2024.
  • Diluted net income per share of common stock is expected to be $3.94 for the full year 2024.

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 2024

Historical avgQ2 2024

+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