TriNet Announces Fourth Quarter and Fiscal Year 2022 Results, 8% Growth in Total Revenues to $4.9 billion for Fiscal Year 2022 

• 9% Growth in Professional Service Revenues for the Fourth Quarter of 2022
• 18% Growth in Professional Service Revenues to $754 million for Fiscal Year 2022
• 8% Growth in Total Revenues to $4.9 billion for Fiscal Year 2022
• 11% Growth in Earnings per Share and 25% Growth in Adjusted Earnings per Share for Fiscal Year 2022
• TriNet Stock Repurchase Program Authorized up to $545 million

DUBLIN, Calif., Feb. 15, 2023  — TriNet Group, Inc. (NYSE: TNET), a leading provider of comprehensive human capital management solutions for small and medium-size businesses (SMBs), today announced financial results for the fourth quarter and fiscal year ended December 31, 2022. The fourth quarter and fiscal year highlights below include non-GAAP financial measures which are reconciled later in this release.

Fourth quarter highlights include:

• Professional service revenues increased 9% to $189 million compared to the same period last year.
• Total revenues were flat at $1.2 billion compared to the same period last year.
• Net income was $49 million, or $0.78 per diluted share, compared to net income of $69 million, or $1.03 per diluted share, in the same period last year.
• Adjusted Net Income was $71 million, or $1.11 per diluted share, compared to Adjusted Net Income of $74 million, or $1.13 per diluted share, in the same period last year.
• Adjusted EBITDA was $111 million, representing an Adjusted EBITDA Margin of 9.0%, compared to Adjusted EBITDA of $116 million, representing an Adjusted EBITDA Margin of 9.4% in the same period last year.
• Average Worksite Employees (WSEs) decreased 3% as compared to the same period last year, to approximately 348,000.

Full year highlights include:

• Professional service revenues increased 18% to $754 million as compared to 2021.
• Total revenues increased 8% to $4.9 billion as compared to 2021
• Net income was $355 million, or $5.61 per diluted share, compared to net income of $338 million, or $5.07 per diluted share, in 2021.
• Adjusted Net Income was $448 million, or $7.07 per diluted share, compared to Adjusted Net Income of $376 million, or $5.64 per diluted share in 2021.
• Adjusted EBITDA was $688 million, representing an Adjusted EBITDA Margin of 14.1%, compared to Adjusted EBITDA of $565 million, representing an Adjusted EBITDA Margin of 12.5% in 2021.
• Average Worksite Employees (WSEs) increased by 2% compared to 2021, to approximately 349,000.
• Acquired Zenefits and Clarus during 2022.
• Returned over $500 million in 2022 to shareholders through share repurchases, including two tender offers.
• Launched TriNet Enrich, an innovative product line that will allow clients to expand the benefits they offer to their employees.

Stock Repurchase Program:

• TriNet stock repurchase program increased by $300 million to bring the total available for repurchase to $545 million as of December 31, 2022 to be deployed subject to market conditions.

“In the face of a rapidly changing business and economic environment, TriNet delivered strong financial performance in 2022 and positioned ourselves for long-term success,” said Burton M. Goldfield, TriNet’s President and CEO. “During the year, we made two important acquisitions which enable TriNet to offer PEO, HCM software products, and value-added services to better address our customers’ needs throughout their business lifecycle. We made a series of operational changes which we believe will drive new business growth and improve retention. Finally, we repurchased over $500 million in TriNet stock as we believe our stock represented value when compared with our long-term outlook.”

Mr. Goldfield continued, “As we look to 2023, TriNet will always keep our customers at the center of what we do.  While the environment may be challenging, we believe we are well-positioned to accelerate new sales by leveraging our value proposition in our core business verticals. Furthermore, we are ready to help our customers navigate these challenging economic conditions just as we helped our customers navigate the pandemic.”

First Quarter and Full-Year 2023 Guidance

In addition to announcing our fourth quarter and fiscal year 2022 results, we provide our first 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.

Annual Report on Form 10-K

We anticipate filing our Annual Report on Form 10-K (“Form 10-K”) for the year ended December 31, 2022 with the U.S. Securities and Exchange Commission (SEC) and making it available at http://www.trinet.com today, February 15, 2023. This press release should be read in conjunction with the Form 10-K 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-K.

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 fourth quarter and fiscal year results for 2022 and provide first 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/10174751/f59149b375. 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. 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: 3750161.

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