Total Revenues of $1.2 billion
Sequential growth in Ending WSEs of 1%
Net Income per Diluted Share of $1.63 and Adjusted Net Income per Diluted Share of $1.91
TriNet Group, Inc. , a leading provider of comprehensive and flexible human capital management (HCM) solutions for small and medium-size businesses (SMBs), today announced financial results for the third quarter ended September 30, 2023. The third quarter highlights below include non-GAAP financial measures which are reconciled later in this release.
Third quarter highlights include:
- Total revenues decreased 2% to $1.2 billion compared to the same period last year.
- Professional service revenues decreased 2% to $185 million compared to the same period last year.
- Net income was $94 million, or $1.63 per diluted share, compared to net income of $77 million, or $1.22 per diluted share, in the same period last year.
- Adjusted Net Income was $109 million, or $1.91 per diluted share, compared to Adjusted Net Income of $104 million, or $1.64 per diluted share, in the same period last year.
- Adjusted EBITDA was $172 million, representing an Adjusted EBITDA Margin of 14.1%, compared to Adjusted EBITDA of $173 million, representing an Adjusted EBITDA Margin of 14.0% in the same period last year.
- Ending Worksite Employees (WSEs) decreased 5% as compared to the same period last year and increased 1% as compared to the previous quarter, to approximately 336,000.
- Average WSEs decreased 5% as compared to the same period last year and increased 2% as compared to the previous quarter, to approximately 333,000.
- Sales rep count grew by approximately 5% sequentially, resulting in year-to-date total sales rep growth of 19%.
- HRIS Cloud Services Revenues increased 42% to $17 million compared to the same period last year
- Average HRIS Users decreased 15% as compared to the same period last year, to approximately 211,000.
“TriNet achieved significant successes across our business,” said Burton M. Goldfield, TriNet’s President and CEO. “We accelerated our new sales, bought back $1 billion in stock in part through a tender offer, executed a $400 million bond offering in a volatile market, managed our expenses prudently, and delivered strong earnings performance for our shareholders.”
Mr. Goldfield continued, “As we look to build on our momentum into next year, we will always keep our customers at the center of everything we do. We are innovating our product and technology to reach more potential customers and effectively service them throughout their business lifecycles. With our customer retention and NPS scores nearing all-time highs, we are committed more than ever to delivering our product and services how our customers want.”
Fourth Quarter and Full-Year 2023 Guidance
In addition to announcing our third quarter 2023 results, we provide our fourth quarter and full-year 2023 guidance. Non-GAAP financial measures are reconciled later in this release. Percentages reflect the increase or (decrease) from the prior year quarter and prior year end.
Q4 2023 |
Full Year 2023 |
|||||||
Low |
High |
Low |
High |
|||||
Total Revenues |
— % |
4 % |
— % |
1 % |
||||
Professional Service Revenues |
(2) % |
1 % |
— % |
1 % |
||||
Insurance Cost Ratio |
92 % |
88 % |
85.5 % |
84.5 % |
||||
Diluted net income per share of common stock |
$ 0.26 |
$ 1.00 |
$ 5.43 |
$ 6.27 |
||||
Adjusted Net Income per share – diluted |
$ 0.59 |
$ 1.33 |
$ 6.90 |
$ 7.55 |