NYSE$TNET

TriNet Group Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Announced fourth quarter and fiscal year 2020 results, demonstrating 4% growth in GAAP total revenues and a 2% decline in net service revenues for the fourth quarter.

TriNet Group, Inc. reported a 4% increase in total revenues to $1.1 billion for the fourth quarter of 2020. Net income was $22 million, or $0.32 per diluted share. Adjusted Net Income was $30 million, or $0.44 per diluted share.

  • Total revenues increased 4% to $1.1 billion, while Net Service Revenues decreased 2% to $221 million compared to the same period last year.
  • Net income was $22 million, or $0.32 per diluted share, compared to net income of $48 million, or $0.68 per diluted share, in the same period last year.
  • Adjusted Net Income was $30 million, or $0.44 per diluted share, compared to Adjusted Net Income of $59 million, or $0.84 per diluted share, in the same period last year.
  • Average Worksite Employees (WSEs) decreased 3% as compared to the same period last year, to approximately 327,000.

Headline financials

Total Revenue

$221M

Previous: $226M-2.2%
EPS (adj)

$0.44

Previous: $0.84-47.6%
Total WSEs

332.0K

Previous: 340.0K-2.4%
Capital Expenditures

$9M

Previous: $11M-18.2%
Free Cash Flow

$577M

Previous: $671M-14.0%
Net Income

$22M

Previous: $48M-54.2%
Operating Income

$30M

Previous: $63M-52.4%
Gross Profit

$151M

Previous: $167M-9.6%
Cash & Equivalents

$301M

Previous: $213M+41.3%
Total Assets

$3.04B

Previous: $2.75B+10.7%
Stock-Based Comp

$12M

Previous: $12M+0.0%

Revenue & EPS history

TriNet · Revenue · Quarterly

$221M

Q4 2020-2.2%vs Q4 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

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

  • Insurance Service Revenues
    $1.04B-1.4%

Forward guidance

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

Tailwinds

  • Total revenues are expected to increase between 2% and 4% for Q1 2021 and between 8% and 11% for full year 2021.
  • Net Insurance Margin is expected to be between 12.5% and 14.5% for Q1 2021 and between 10% and 11% for full year 2021.
  • Adjusted EBITDA Margin is expected to be between 44% and 48% for Q1 2021 and between 37% and 40% for full year 2021.
  • Diluted net income per share of common stock is expected to be between $1.10 and $1.34 for Q1 2021 and between $2.79 and $3.31 for full year 2021.
  • Adjusted Net Income per share - diluted is expected to be between $1.16 and $1.39 for Q1 2021 and between $3.35 and $3.90 for full year 2021.

Headwinds

  • Professional Service Revenues are expected to decrease between (4)% and (3)% for Q1 2021.
  • Net income is expected to decrease between (18)% and (1)% for Q1 2021.
  • Adjusted EBITDA is expected to decrease between (19)% and (5)% for Q1 2021.
  • Adjusted Net Income is expected to decrease between (20)% and (4)% for Q1 2021.
  • Net income is expected to decrease between (31)% and (18)% for full year 2021.

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 Q4 2020

Historical avgQ4 2020

+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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