Trinet Group Inc (TNET, Financial), a leading provider of comprehensive human capital management solutions for small and medium-size businesses, announced its financial results for the third quarter ended September 30, 2023, on October 25, 2023.
Financial Highlights
Despite a 2% decrease in total revenues to $1.2 billion compared to the same period last year, Trinet Group Inc (TNET, Financial) reported an increase in net income to $94 million, or $1.63 per diluted share, compared to $77 million, or $1.22 per diluted share, in the same period last year. The company's 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.
Professional service revenues also decreased by 2% to $185 million compared to the same period last year. However, HRIS Cloud Services Revenues saw a significant increase of 42% to $17 million compared to the same period last year.
Operational Highlights
Trinet Group Inc (TNET, Financial) reported a 5% decrease in Ending Worksite Employees (WSEs) compared to the same period last year, but a 1% increase compared to the previous quarter, totaling approximately 336,000. Average WSEs decreased by 5% compared to the same period last year but increased by 2% compared to the previous quarter, totaling approximately 333,000. The company's sales rep count grew by approximately 5% sequentially, resulting in year-to-date total sales rep growth of 19%.
CEO Commentary
“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.”
Q4 and Full-Year 2023 Guidance
In addition to announcing Q3 2023 results, Trinet Group Inc (TNET, Financial) provided its Q4 and full-year 2023 guidance. The company expects total revenues to increase by 1% to 4% and professional service revenues to decrease by 2% to increase by 1%. Diluted net income per share of common stock is projected to be between $0.26 and $1.00, and Adjusted Net Income per share - diluted is expected to be between $0.59 and $1.33.
Explore the complete 8-K earnings release (here) from Trinet Group Inc for further details.
