NYSE$TNET

TriNet Group Inc. · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

TriNet's Q3 2022 financial results were announced, demonstrating growth in total revenues and professional service revenues. The company expanded its product line and achieved strong financial performance.

TriNet Group, Inc. reported an 8% increase in total revenues, reaching $1.2 billion for Q3 2022. Professional service revenues saw a 21% increase, totaling $189 million. Net income remained consistent at $77 million, with diluted net income per share increasing to $1.22. The company also provided Q4 and full-year 2022 guidance.

  • Total revenues increased by 8% to $1.2 billion compared to the same period last year.
  • Professional service revenues grew by 21% to $189 million compared to the same period last year.
  • Net income was $77 million, or $1.22 per diluted share, compared to $77 million, or $1.16 per diluted share, in the same period last year.
  • Adjusted Net Income was $104 million, or $1.64 per diluted share, compared to Adjusted Net Income of $87 million, or $1.31 per diluted share, in the same period last year.

Headline financials

Total Revenue

$1.24B

Previous: $1.15B+8.1%
EPS (adj)

$1.64

Previous: $1.31+25.2%
Average WSEs

351.9K

Previous: 347.5K+1.3%
Total WSEs

351.8K

Previous: 351.3K+0.2%
Capital Expenditures

-$39M

Previous: -$29M-34.5%
Free Cash Flow

$38M

Previous: $48M-20.8%
Net Income

$77M

Previous: $77M+0.0%
Operating Income

$120M

Previous: $105M+14.3%
Gross Profit

-$889M

Previous: -$862M-3.1%
Cash & Equivalents

$454M

Previous: $525M-13.5%
Total Assets

$3.08B

Previous: $3.07B+0.3%
Stock-Based Comp

$16M

Previous: $13M+23.1%

Revenue & EPS history

TriNet · Revenue · Quarterly

$1.24B

Q3 2022+8.1%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

TriNet · $1.05B total across 1 segment · Q3 2022

  • Insurance Service Revenues
    $1.05B+6.0%

Forward guidance

TriNet provided its third quarter and full-year 2022 guidance. Percentages reflect the increase or (decrease) from the prior year quarter and prior year end.

Tailwinds

  • Professional Service Revenues: 7% - 10% (Q4 2022), 17% - 18% (Full Year 2022)

Headwinds

  • Total Revenues: (2)% - 0% (Q4 2022), 7% - 8% (Full Year 2022)
  • Diluted net income (loss) per share of common stock: $(0.47) - $0.07 (Q4 2022), $4.30 - $4.85 (Full Year 2022)
  • Adjusted Net Income per share - diluted: $0.00 - $0.50 (Q4 2022), $5.90 - $6.40 (Full Year 2022)
  • Insurance Cost Ratio: 93.0% - 97.0% (Q4 2022), 86.0% - 85.0% (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 Q3 2022

Historical avgQ3 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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