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TriNet's Financial Performance Report for Q4 2024

Dublin, California, February 13, 2025 - TriNet Group, Inc. (NYSE: TNET), a prominent provider of human capital management (HCM) solutions tailored for small and medium-sized businesses (SMBs), has revealed its financial results for the fourth quarter and full fiscal year 2024. The company managed to post a modest growth in total revenues, reflecting a strategic focus on retention and fiscal stability, despite facing some challenges.

Financial Highlights: Q4 2024

For the last quarter of 2024, TriNet reported total revenues of $1.3 billion, marking a slight 1% increase compared to the same period in the previous year. While total revenues increased, professional service revenues saw a decline of 4%, amounting to $181 million.

However, the net loss for the quarter was estimated at $23 million, translating to $0.46 per diluted share, a significant drop from the net income of $67 million or $1.31 per diluted share in Q4 2023. Adjusted net income was $22 million or $0.44 per diluted share, compared to $82 million or $1.60 per diluted share the previous year.

Interestingly, the adjusted EBITDA for Q4 was around $60 million, with an associated margin of 4.7%, contrasting to last year's figures of $140 million and 11.2% respectively, demonstrating a fluctuating margin amid fluctuating expenses and operational changes.

In terms of staffing, TriNet saw an increase in its average worksite employees (WSEs), rising by 5% year-over-year to stand at approximately 355,000.

Full Year 2024 Performance

Throughout fiscal year 2024, total revenues reached $5.1 billion, representing a 1% increase from 2023. Professional service revenues, however, rose 1% to $765 million. In contrast, the company experienced a significant drop in net income, recording $173 million or $3.43 per diluted share, versus $375 million or $6.56 per diluted share from last year. Adjusted net income for the full year stood at $269 million, reflecting a decrease from the previous year's $446 million.

The adjusted EBITDA for the full year was $485 million, which translates to a margin of 9.6%, down from 14.2% in 2023. Despite these figures, it is important to note the overall growth in average worksite employees, climbing by 6% year-on-year.

Strategic Outlook for 2025

With a vision set for the future, TriNet management provided guidance for fiscal year 2025. They anticipate total revenues will fall between $4.9 billion and $5.1 billion, along with professional service revenues projected around $700 million to $730 million. The company aims to improve its adjusted EBITDA margin, targeting 7% to 9%, alongside a diluted net income per share guidance ranging from $1.90 to $3.40.

Emphasizing its commitment to improving operational effectiveness and growing the business, TriNet is poised to implement several strategic initiatives, including revising insurance pricing, enhancing benefits offerings, and refining service models. This multi-pronged strategy is intended to not only boost revenue but also expand margins and increase overall shareholder value.

As TriNet embarks on these ambitious plans, the firm remains vigilant in monitoring and adapting to the ever-evolving landscape of SMB needs and broader market trends. The company is optimistic that the actions outlined will instigate tangible results in the upcoming year, fostering a robust environment for growth and success.

Looking Ahead

Investors and stakeholders are invited to tune into TriNet's upcoming earnings call, scheduled for today at 5:30 a.m. PT to unpack the detailed financials and strategic outlook for 2025. A live webcast will be accessible via the Investor Relations section of TriNet's website for those wishing to engage in discussions about future prospects and strategies.

For further details on Trinet Group's offerings and updates, check out their official website or connect with them through their social media platforms.