TriNet Announces Fourth Quarter, Fiscal Year 2024 Results, and Strategy & Medium-Term Outlook

Core Insights - TriNet Group, Inc. reported a 1% growth in total revenues to $1.3 billion for Q4 2024 and $5.1 billion for the fiscal year 2024, indicating stable performance despite challenges [1][5] - The company achieved record Worksite Employee (WSE) retention in 2024, reflecting strong client loyalty and service effectiveness [1] - TriNet's President and CEO highlighted a clear strategy for growth and margin expansion as they enter 2025, with expectations for building momentum through pricing adjustments and enhanced service offerings [2] Financial Performance - Q4 2024 total revenues were $1.3 billion, a 1% increase from Q4 2023, while professional service revenues decreased by 4% to $181 million [5][16] - The net loss for Q4 2024 was $23 million, or $0.46 per diluted share, compared to a net income of $67 million, or $1.31 per diluted share in Q4 2023 [5][19] - Adjusted Net Income for Q4 2024 was $22 million, or $0.44 per diluted share, down from $82 million, or $1.60 per diluted share in the same period last year [5][30] Year-End Highlights - For the full year 2024, total revenues increased by 1% to $5.1 billion, with professional service revenues rising by 1% to $765 million [5][19] - Net income for the full year was $173 million, or $3.43 per diluted share, compared to $375 million, or $6.56 per diluted share in 2023 [5][19] - Adjusted EBITDA for 2024 was $485 million, representing a margin of 9.6%, down from $697 million and a margin of 14.2% in 2023 [5][19] Medium-Term Outlook - TriNet provided guidance for 2025, projecting total revenues between $4.9 billion and $5.1 billion, with an expected Adjusted EBITDA margin of 10% to 11% [4][8] - The company aims for a compounded annual growth rate of 4% to 6% for total revenues and 12% to 14% for Adjusted Net Income per share over the medium term [8][31] Operational Metrics - Average Worksite Employees (WSEs) increased by 5% year-over-year to approximately 355,000 in Q4 2024 [5][16] - The Insurance Cost Ratio for Q4 2024 was 95%, up from 87% in Q4 2023, indicating rising insurance costs [6][16] - Free Cash Flow for 2024 was reported at $201 million, a decrease from $464 million in 2023 [5][30]