TriNet Reports 1% Revenue Growth, Shares Drop 13.1%

By Bobby Samwell • Thursday, February 13 15:25 • Permanent Link

Trinet Group, Inc. has announced its financial results for the fourth quarter and full year ended December 31, 2024. The company reported a 1% growth in total revenues to $1.3 billion for the fourth quarter of 2024 and a similar 1% growth in total revenues to $5.1 billion for fiscal year 2024.

In the fourth quarter, professional service revenues decreased by 4% to $181 million compared to the same period last year. The net loss was $23 million, or $0.46 per diluted share, compared to a net income of $67 million, or $1.31 per diluted share, in the same period last year. Adjusted net income was $22 million, or $0.44 per diluted share, compared to adjusted net income of $82 million, or $1.60 per diluted share, in the same period last year. The adjusted EBITDA was $60 million, representing an adjusted EBITDA margin of 4.7%, compared to adjusted EBITDA of $140 million, representing an adjusted EBITDA margin of 11.2% in the same period last year. The average worksite employees (WSEs) increased by 5% compared to the same period last year.

For the full year, professional service revenues increased by 1% to $765 million compared to 2023. The net income was $173 million, or $3.43 per diluted share, compared to net income of $375 million, or $6.56 per diluted share, in 2023. Adjusted net income was $269 million, or $5.32 per diluted share, compared to net income of $446 million, or $7.81 per diluted share, in 2023. The adjusted EBITDA was $485 million, representing an adjusted EBITDA margin of 9.6%, compared to adjusted EBITDA of $697 million, representing an adjusted EBITDA margin of 14.2% in 2023. The average worksite employees (WSEs) increased by 6% compared to 2023, to approximately 353,000.

Trinet also provided its full-year 2025 guidance, with total revenues expected to range from $4.9 billion to $5.1 billion. Additionally, the company outlined its medium-term outlook, targeting a 4-6% compounded annual growth rate for total revenues and a 10-11% adjusted EBITDA margin at the end of the period.

These announcements come as Trinet continues to position itself for growth, margin expansion, and value creation over the medium-term, supported by a clear strategy and ongoing execution of various actions.

For more details on the company's strategy and medium-term outlook, investors can refer to the Investor Relations section of Trinet's website.

Trinet is a leading provider of human resources solutions for small and medium-size businesses, offering advanced technology-enabled services including human capital expertise, employee benefits, payroll administration, risk mitigation, and compliance consulting. The market has reacted to these announcements by moving the company's shares -13.1% to a price of $80.08. If you want to know more, read the company's complete 8-K report here.

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