TriNet Group, a leading provider of human capital management solutions, has announced its financial results for Q3 2023. The company reported a slight decrease in total revenues and professional service revenues compared to the same period last year. However, it saw a growth in net income and adjusted net income per diluted share. The report also highlighted a decrease in worksite employees but an increase in HRIS Cloud Services Revenues. The company has been focusing on customer-centric strategies, which have resulted in high customer retention and NPS scores.

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

DUBLIN, Calif., Oct. 25, 2023-- 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 third quarter ended September 30, 2023. The third quarter highlights below include non-GAAP financial measures which are reconciled later in this release.

• 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.

Quarterly Report on Form 10-Q

We anticipate filing our Quarterly Report on Form 10-Q ("Form 10-Q") for the nine months ended September 30, 2023 with the U.S. Securities and Exchange Commission (SEC) and making it available at http://www.trinet.com today, October 25, 2023. This press release should be read in conjunction with the Form 10-Q and the related Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in the Form 10-Q.

Earnings Conference Call and Audio Webcast

TriNet will host a conference call at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its second quarter results for 2023 and provide third quarter and full-year financial guidance for 2023. TriNet encourages participants to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. To pre-register, go to: https://dpregister.com/sreg/10183393/fab2294e46. For those who would like to join the call but have not pre-registered, they can do so by dialing +1 (412) 317-5426 and requesting the "TriNet Conference Call." The live webcast of the conference call can be accessed on the Investor Relations section of TriNet's website at https://investor.trinet.com. Participants can pre-register for the webcast by going to:  https://events.q4inc.com/attendee/696724822. A replay of the webcast will be available on this website for approximately one year. A telephonic replay will be available for one week following the conference call at +1 (412) 317-0088 conference ID: 1718914.

About TriNet

TriNet provides small and medium-size businesses (SMBs) with full-service industry-specific HR solutions, providing both professional employer organization (PEO) and human resources information system (HRIS) services. TriNet offers access to human capital expertise, benefits, risk mitigation, compliance, payroll, and R&D tax credit services, all enabled by industry-leading technology. TriNet's suite of products also includes services and software-based solutions to help streamline workflows by connecting HR, benefits, employee engagement, payroll and time & attendance. Rooted in more than 30 years of supporting entrepreneurs and adapting to the ever-changing modern workplace, TriNet empowers SMBs to focus on what matters most - growing their business and enabling their people For more information, please visit TriNet.com or follow us on X, formerly Twitter, Facebook, LinkedIn and Instagram.