6%  Growth in Professional Service Revenues to $205 million

2%  Growth in Total Revenues to $1.2 billion

Net Income per Diluted Share of $2.17 and Adjusted Net Income per Diluted Share of $2.49

TriNet Group, Inc. (NYSE: TNET), 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 first quarter ended March 31, 2023. The first quarter highlights below include non-GAAP financial measures which are reconciled later in this release.

First quarter highlights include:

• Professional service revenues increased 6% to $205 million compared to the same period last year.


• Total revenues increased 2% to $1.2 billion compared to the same period last year.


• Net income was $131 million, or $2.17 per diluted share, compared to net income of $146 million, or $2.21 per diluted share, in the same period last year.


• Adjusted Net Income was $150 million, or $2.49 per diluted share, compared to Adjusted Net Income of $168 million, or $2.55 per diluted share, in the same period last year.


• Adjusted EBITDA was $223 million, representing an Adjusted EBITDA Margin of 17.9%, compared to Adjusted EBITDA of $242 million, representing an Adjusted EBITDA Margin of 19.9% in the same period last year.


• Average Worksite Employees (WSEs) decreased 5% as compared to the same period last year, to approximately 327,000.


• Average HRIS Users decreased 9% as compared to the same period last year, to approximately 231,000.

"I am particularly pleased with our first quarter financial results which exceeded guidance and occurred during what proved to be a tumultuous first quarter economic environment," said Burton M. Goldfield, TriNet's President and CEO. "With our singular focus on putting our customers at the center of everything we do, we grew new sales and kept more of our customers longer. We controlled our costs while we launched our new brand identity which highlights the unique value we offer SMBs. We remained disciplined in our financial management and delivered strong earnings for our shareholders."

Mr. Goldfield continued, "We often speak of how we use scale in service of our customers. The regional bank crisis in the first quarter was an extreme example of just that. Ultimately, none of our impacted customers missed a payroll. In business, you can count on the unexpected happening, and for our customers, they can count on TriNet to support them through challenging times."

Second Quarter and Full-Year 2023 Guidance

In addition to announcing our first quarter 2023 results, we provide our second 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.