TriNet Announces Third Quarter 2024 Results

Core Insights - TriNet Group, Inc. reported a 1% increase in total revenues to $1.2 billion for Q3 2024 compared to the same period last year, with net income decreasing to $45 million from $94 million in Q3 2023 [1][10][12] - The company faced challenges due to higher healthcare costs impacting profitability, but managed to maintain strong customer retention [2][10] - TriNet's average Worksite Employees (WSEs) increased by 7% year-over-year to approximately 356,000, indicating growth in its client base [1][10] Financial Performance - Total revenues for Q3 2024 were $1.237 billion, a 1% increase from $1.222 billion in Q3 2023 [10][12] - Professional service revenues remained flat at $184 million compared to the previous year [1][12] - Net income for Q3 2024 was $45 million, or $0.89 per diluted share, down from $94 million, or $1.63 per diluted share in Q3 2023 [1][10][12] - Adjusted Net Income decreased to $59 million, or $1.17 per diluted share, from $109 million, or $1.91 per diluted share in the same period last year [1][10][20] - Adjusted EBITDA was $109 million, down from $172 million in Q3 2023 [1][10][19] Operational Metrics - Average WSEs increased by 7% year-over-year to approximately 356,000, including about 20,000 PEO Platform Users [1][10] - Average HRIS Users decreased to approximately 183,000, down 13% from the previous year [10][12] - The Insurance Cost Ratio increased to 90% from 84% in the same quarter last year, reflecting rising healthcare costs [10][12] Guidance - For Q4 2024, TriNet anticipates total revenues to increase by 1% to 2% compared to the prior year [3][4] - The company expects diluted net income per share to range from $(0.19) to $0.31 for Q4 2024 [4][23] - Full-year 2024 guidance projects total revenues to increase by 1% to 2% [4][23] Cash and Debt Position - As of September 30, 2024, TriNet had unrestricted cash and cash equivalents of $251 million and total debt of $1.1 billion [1][10][12] - The company reported a working capital of $165 million, up 43% from the previous year [10][11]