Financial Data and Key Metrics - Total revenues grew 1% year-over-year, in line with the top end of guidance, supported by improved retention and modest customer hiring [61] - Professional service revenue grew 5%, exceeding high guidance by 1 point, driven by volume growth and rate improvement [62] - Insurance revenue grew 1% year-over-year, with healthcare participation rates slightly lower but offset by annual inflationary rate increases [35] - Insurance costs grew 6% year-over-year, reflecting higher healthcare and pharmacy cost inflation, partially offset by strong workers' comp performance [35] - Workers' compensation results included positive prior period development of approximately $20 million [36] - Operating expenses declined 6% year-over-year due to expense discipline and targeted investments in growth and automation [37] - GAAP earnings per diluted share were $1.20, and adjusted net income per diluted share was $1.53, both exceeding the top end of guidance ranges [37] - The company returned $159 million to shareholders through share repurchases and dividends in the first half of 2024 [38] Business Line Performance - Professional services revenue saw a gradual increase in fees, reflecting inflation and innovation in decision support tools, creating upside opportunities [1] - Workers' compensation performance was favorable, with a $20 million reserve release associated with prior period development [2] - All six verticals showed positive CIE (Customer Income Earned) for the full quarter, with tech showing modestly positive performance over the last two quarters [4] - The company's sales pipeline is comfortably ahead of the prior year, with a competitive market environment and strong interest in PEOs (Professional Employer Organizations) [10] Market Performance - The SMB (Small and Midsized Businesses) environment remains challenged, with high-interest rates, softening end markets, and persistent healthcare cost inflation [26] - The company finished Q2 with 15% more sales reps year-over-year, aiming for 20% growth before the fall selling season [27] - Customer hiring in Q2 was slower than forecasted, but the company has seen five consecutive months of positive yet modest customer hiring in 2024, a first since 2022 [28] Strategy and Industry Competition - The company is focused on profitable growth, with accelerated innovation in benefits and a disciplined approach to pricing and risk management [30] - TriNet's business model is resilient, with a strong value proposition, proprietary technology, and a focus on customer retention [23][57] - The company is investing in its sales force capacity and productivity, with a focus on capturing more of the growing funnel [34] - The growing cost and complexity of healthcare is seen as a long-term tailwind for the business, as SMBs seek help in managing these challenges [30] Management Commentary on Operating Environment and Future Outlook - The CEO expressed optimism about TriNet's future, citing strong operating performance and long-term growth prospects [29] - The company is well-positioned for growth as customer hiring resumes, with a positive outlook for the balance of the year [40] - The CFO highlighted the company's strong cash generation and capital return priorities, including share repurchases and dividends [38] - The company expects full-year revenues to be in the range of down 1% to up 4% year-over-year, with professional service revenues growing 1% to 5% [39] Other Important Information - The company has made key hires, including Tim Nimmer as Head of Insurance Services and Shea Treadway as Chief Revenue Officer, to strengthen its leadership team [31] - TriNet's technology and data capabilities are seen as a competitive advantage, with opportunities to improve analytics and innovate the benefits portfolio [58] - The company is focused on broadening its distribution channels, including the brokerage channel, to capture more of the SMB market [89] Q&A Session Summary Question: Sales momentum and productivity - Sales momentum is up 30% year-to-date, with retention being positive and the company making progress toward matching new sales with attrition losses [42] - The company expects productivity improvements over the next 4-6 quarters, with a focus on equipping the sales team with better tools and processes [43] Question: Accelerated innovation in benefits - The company is investing in data, analytics, and tools to help customers manage healthcare costs and complexity, with recent hires and innovations in decision support tools [44][45] Question: Professional services revenue growth - Professional services revenue growth was driven by sales force productivity, new clients, and platform enhancements [74] Question: CIE (Customer Income Earned) trends - The company expects modest CIE growth in the second half of the year, with seasonal headwinds in Q3 and a cautious outlook for the rest of the year [96] Question: Insurance cost ratio (ICR) and workers' comp - The ICR came in above the high end of guidance due to healthcare cost trends, but the company reaffirmed its full-year ICR guidance [78] - Workers' comp performance was strong, with a $20 million reserve release contributing to favorable results [2] Question: Expense control and sustainability - The company has reduced G&A expenses to invest in growth, with a focus on maintaining efficiency while not constraining productive investments [83] Question: Worksite employee dynamics and vertical trends - The company is focused on higher-growth verticals, with tech showing modestly positive performance and overall CIE in the low-single-digits [50] Question: PEO demand environment - The PEO demand environment is competitive, with elongated sales cycles due to inflationary healthcare costs, but the company remains confident in its relative position [100] Question: Capital allocation and EPS impact - The company has deployed $135 million in share repurchases and $25 million in dividends year-to-date, contributing to EPS growth [108] Question: CEO's perspective on the business model - The CEO sees significant opportunities for profitable growth, with a focus on leveraging TriNet's technology and market position [109] Question: Distribution channel expansion - The company is investing in multichannel distribution, with a focus on building momentum in direct and intermediated channels [118]

Potential Acquisitions — drive growth through acquisitions of technology, product, and services Dividend — diversify capital return options to shareholders trinet" © 2024 TriNet Group, Inc. All rights reserved. 16 Financial Policy | --- | --- | --- | --- | |----------------------------------------|---------------------------------------------------------|-------------------------------------------------------------------------------|--------------------------------------------------------------------------- ...

TriNet Group (TNET) came out with quarterly earnings of $1.53 per share, beating the Zacks Consensus Estimate of $1.24 per share. This compares to earnings of $1.74 per share a year ago. These figures are adjusted for non-recurring items. Over the last four quarters, the company has surpassed consensus EPS estimates three times. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on t ...

(Mark One) ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-36373 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Yes o No o Indicate by check mark whether the registrant is a shell company (as defined in ...

TriNet Announces Second Quarter 2024 Results 1% Growth in Total Revenues to $1.2 Billion 5% Growth in Professional Service Revenues to $186 million Net Income per Diluted Share of $1.20 and Adjusted Net Income per Diluted Share $1.53 DUBLIN, Calif. — July 26, 2024 — TriNet Group, Inc. (NYSE: TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses, today announced financial results for the second quarter ended June 30, 2024. The second quarter highlights belo ...

1% Growth in Total Revenues to $1.2 Billion 5% Growth in Professional Service Revenues to $186 million Net Income per Diluted Share of $1.20 and Adjusted Net Income per Diluted Share $1.53 DUBLIN, Calif., July 26, 2024 /PRNewswire/ -- TriNet Group, Inc. (NYSE: TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses, today announced financial results for the second quarter ended June 30, 2024. The second quarter highlights below include non-GAAP financial mea ...

TriNet Appoints Shea Treadway as Chief Revenue OfficerTriNet Appoints Shea Treadway as Chief Revenue Officer Treadway most recently served as Senior Vice President and Head of Distribution for Principal Financial Group where he led a team of over 2,000 sales consultants, account managers, and affiliated distribution team members responsible for more than 100,000 SMB customers. He has also held senior leadership roles in both direct and brokerage distribution of voluntary benefits and served as Colonial Life ...

Company Insights - TriNet Group (TNET) shares increased by 4.2% in the last trading session, closing at $101.10, attributed to notable trading volume exceeding typical levels [4] - The company is expected to report quarterly earnings of $1.24 per share, reflecting a year-over-year decline of 28.7%, with revenues projected at $301.76 million, down 11.5% from the previous year [5] - The consensus EPS estimate for TriNet has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [6] Industry Context - TriNet operates within the Zacks Outsourcing industry, which includes other companies like Automatic Data Processing (ADP) [7] - ADP's stock closed 0.6% higher at $235.63, but has experienced a return of -4.9% over the past month [7] - The growth in professional services revenues and insurance revenue due to inflationary pressures is noted as a positive trend in the broader market [1]

Core Insights - TriNet has appointed Brian Evanko, President and CEO of Cigna Healthcare, to its Board of Directors, enhancing its leadership with his extensive experience in healthcare and finance [1][2][3] Company Overview - TriNet is a leading provider of comprehensive human resources solutions specifically designed for small and medium-sized businesses (SMBs), offering services such as professional employer organization (PEO) and human resources information system (HRIS) [5] - The company has over 30 years of experience in supporting entrepreneurs and adapting to the evolving modern workplace, enabling SMBs to focus on growth and employee development [5] Leadership Experience - Brian Evanko has a robust background in financial and operational roles within The Cigna Group, including leadership positions in U.S. Government business and International Health operations [3][4] - Evanko holds multiple professional designations, including Fellow of the Society of Actuaries (FSA), Member of the American Academy of Actuaries (MAAA), and Chartered Financial Analyst (CFA) [4]

CHICAGO, June 25, 2024 /PRNewswire/ -- TriNet (NYSE: TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses (SMBs), announced a series of new product enhancements, capabilities and strategic partners designed to meet the needs of its customers in today's everevolving business environment. These announcements were made today in Chicago at the Society for Human Resource Management (SHRM) Annual Conference and Expo 2024. TriNet has announced a series of new pr ...