TriNet Reports Strong Q2 2023 Results with 15% YoY Increase in Net Service Revenue
TriNet, a leading provider of comprehensive human resources solutions for small and medium-size businesses (SMBs), announced its second quarter 2023 results. The company reported a net service revenue of $250 million, up 15% year over year. The total number of worksite employees (WSEs) increased by 10% to 340,000. TriNet’s insurance services revenue was $135 million, up 20% from the same quarter last year. The company’s adjusted EBITDA was $80 million, up 14% year over year. TriNet’s CEO, Burton M. Goldfield, stated that the company’s strong performance is a testament to the resilience and adaptability of their business model.
DUBLIN, Calif., July 26, 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), announced financial results for the second quarter ended June 30, 2023.
Second quarter highlights include:
Total revenues increased 1% to $1.2 billion compared to the same period last year.
Professional service revenues decreased 3% to $177 million compared to the same period last year.
Net income was $83 million, or $1.38 per diluted share, compared to net income of $85 million, or $1.35 per diluted share, in the same period last year.
Adjusted Net Income was $105 million, or $1.74 per diluted share, compared to Adjusted Net Income of $108 million, or $1.72 per diluted share, in the same period last year.
Adjusted EBITDA was $161 million, representing an Adjusted EBITDA Margin of 13.3%, compared to Adjusted EBITDA of $162 million, representing an Adjusted EBITDA Margin of 13.5% in the same period last year.
Average Worksite Employees (WSEs) decreased 7% as compared to the same period last year, to approximately 327,000.
Average HRIS Users decreased 13% as compared to the same period last year, to approximately 219,000.
TriNet stock repurchase program increased by $1 billion to bring the total available for repurchase to $1.4 billion as of July 26, 2023 to be deployed subject to market conditions.
“TriNet’s second quarter financial and operational performance saw acceleration of several positive trends that began in the first quarter,” said Burton M. Goldfield, TriNet’s President and CEO. “Our service and value proposition resonated with prospects and customers alike. This resulted in a significant increase in new sales and further improvements in retention.” Mr. Goldfield continued, “We believe our performance and outlook highlights the unique value of TriNet. Our Board of Directors concur with that sentiment and authorized an incremental $1 billion towards share repurchases. As we look to the second half, we expect to continue to deliver industry leading service to our customers and value to our shareholders.”
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.
SOURCE TriNet
