TriNet Group, Inc., a leading provider of comprehensive human resources solutions for small and medium-size businesses, announced its financial results for the second quarter ended June 30, 2024. The highlights include non-GAAP financial measures.
1. Financial Performance:
- Total Revenues: Increased by 1% to $1.2 billion compared to the same period last year.
- Professional Service Revenues: Grew by 5% to $186 million compared to the same period last year.
- Net Income: $60 million, or $1.20 per diluted share, down from $83 million, or $1.38 per diluted share, last year.
- Adjusted Net Income: $78 million, or $1.53 per diluted share, compared to $105 million, or $1.74 per diluted share, last year.
- Adjusted EBITDA: $136 million, compared to $161 million last year.
2. Workforce and Platform Metrics:
- Average WSEs: Increased by 7% to approximately 351,000, including 18,000 PEO Platform Users.
- Average HRIS Users: Approximately 191,000 during the period.
3. Financial Position:
- Unrestricted Cash and Equivalents: $177 million as of June 30, 2024.
- Unrestricted Investments: $228 million.
- Total Debt: $1.1 billion.
4. CEO’s Statement:
- Mike Simonds, President and CEO: Praised the company’s strong performance despite challenging conditions for SMBs. Highlighted customer retention, sales results, and the company’s focus on efficient execution.
- Capital Returns: Significant share repurchases and dividends as a response to the undervalued stock price.
5. Challenges and Focus Areas:
- Customer Hiring and Insurance Costs: Managing challenges related to limited hiring and insurance cost growth.
- Future Growth: Focus on customer service, expense and pricing discipline, and planning for accelerated growth in 2025 and beyond.
6. Guidance and Reporting:
- Third Quarter and Full-Year 2024 Guidance: Provided alongside Q2 results.
- Form 10-Q Filing: Anticipated filing of the Form 10-Q for the first half of 2024 with the SEC, available on the TriNet website.
TriNet Group’s second quarter 2024 results demonstrate the company’s resilience and effective management in a challenging business environment. With a focus on customer retention, efficient execution, and future growth strategies, TriNet remains committed to delivering strong financial results and supporting small and medium-sized businesses.
