TriNet(TNET) - 2024 Q4 - Annual Results

Financial Performance - Total revenues for Q4 2024 were $1.3 billion, reflecting a 1% growth year-over-year[1] - Total revenues for fiscal year 2024 reached $5.1 billion, also a 1% increase compared to 2023[4] - Professional service revenues for fiscal year 2024 were $765 million, a 1% increase from 2023[4] - Total revenues for Q4 2024 were $1,277 million, a 1% increase from $1,261 million in Q4 2023[17] - Total revenues for FY 2024 were $5,053 million, with guidance indicating a potential decrease of 2.0% to an increase of 2.0% for FY 2025[28] Net Income and Loss - Net loss for Q4 2024 was $23 million, or $0.46 per diluted share, compared to net income of $67 million, or $1.31 per diluted share, in Q4 2023[4] - Net loss for Q4 2024 was $23 million, compared to a net income of $67 million in Q4 2023, representing a 134% decline[19] - The company expects FY 2025 net loss to range from $46% to a decrease of 3% compared to FY 2024[28] - Adjusted Net Income for FY 2024 was $269 million, with guidance suggesting a decrease of 40% to 12% for FY 2025[28] EBITDA and Margins - Adjusted EBITDA for fiscal year 2024 was $485 million, with an Adjusted EBITDA Margin of 9.6%, down from 14.2% in 2023[4] - Adjusted EBITDA for the year ended December 31, 2024, was $485 million, down 30% from $697 million in 2023[17] - Adjusted EBITDA for FY 2024 was $485 million, down from $697 million in FY 2023, reflecting a margin of 9.6%[27] - The company plans to achieve a targeted Adjusted EBITDA Margin of 10% to 11% by the end of the medium-term outlook[8] Cash Flow and Capital - Free Cash Flow for the year ended December 31, 2024, was $201 million, a decrease of 57% from $464 million in 2023[17] - Free Cash Flow for FY 2024 was $201 million, a decrease from $464 million in FY 2023[27] - Cash and cash equivalents increased by 25% to $360 million in 2024 from $287 million in 2023[21] - The company returned over $200 million in capital to shareholders through share repurchases and dividends in 2024[3] - Net cash provided by operating activities decreased by 48% to $279 million in 2024 from $539 million in 2023[23] Assets and Equity - Total assets grew by 12% to $4,119 million in 2024, up from $3,693 million in 2023[21] - Total stockholders' equity decreased by 12% to $69 million in 2024, down from $78 million in 2023[21] Employee Metrics - Average Worksite Employees (WSEs) increased by 5% year-over-year to approximately 355,000 in Q4 2024[4] Costs and Expenses - The Insurance Cost Ratio increased to 95% in Q4 2024, up from 87% in Q4 2023, indicating a rise of 8%[17] - The company incurred restructuring costs of $49 million in both Q4 2024 and FY 2024[27] - Stock-based compensation for FY 2024 was $65 million, compared to $59 million in FY 2023[27] Taxation - The non-GAAP effective tax rate for FY 2024 was 25.6%, consistent with FY 2023[26] Guidance - Full-year 2025 guidance for total revenues is projected between $4.9 billion and $5.1 billion[6] - Adjusted Net Income per share for fiscal year 2025 is expected to range from $3.25 to $4.75[6] - The company has changed its cash flow presentation method, now including Free Cash Flow as a non-GAAP measure[26]