Yahoo Finance

• Total Revenue Growth: 1% year-over-year in Q4 and for the full year.

• Worksite Employees (WSEs): Approximately 361,000 total WSEs, up 4%; 330,000 co-employed WSEs, down 2%.

• Professional Services Revenue: Declined 4% in Q4; increased 1% for the year.

• PEO Revenue Growth: 3% for the year.

• Insurance Revenue Growth: 2% in Q4; 1% for the year.

• Insurance Costs: Grew 12% in Q4; 8% for the year.

• Insurance Cost Ratio (ICR): 95% in Q4; approximately 90% for the year.

• Restructuring Charge: $49 million related to exiting HRIS business.

• Operating Expenses: Down 1% in Q4; down 2% for the full year, excluding restructuring charge.

• GAAP Net Loss Per Share: $0.46 in Q4.

• Full Year GAAP Earnings Per Diluted Share: $3.43.

• Adjusted Earnings Per Diluted Share: $0.44 in Q4; $5.32 for the year.

• Net Cash Provided by Operating Activities: $279 million for the year.

• Free Cash Flow: $201 million for the year.

• Adjusted EBITDA: $60 million in Q4; $485 million for the year.

• Share Repurchases: $219 million deployed to shareholders.

• Debt to Adjusted EBITDA Ratio: 2 times at year-end.

• 2025 Revenue Guidance: $4.9 billion to $5.1 billion.

• 2025 Adjusted EBITDA Margin Guidance: 7% to 9%.

• 2025 GAAP Earnings Per Diluted Share Guidance: $1.90 to $3.40.

• 2025 Adjusted Earnings Per Diluted Share Guidance: $3.25 to $4.75.

• Warning! GuruFocus has detected 4 Warning Signs with HOUS.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Trinet Group Inc (NYSE:TNET) achieved a 1% year-over-year revenue growth in Q4 and for the full year, aligning with their guidance.

• The company reported record retention rates for 2024, even amidst higher renewal rates.

• Trinet Group Inc (NYSE:TNET) is exiting the HRIS-only business to focus on its core PEO services, which is expected to streamline operations and improve margins.

• The company has a strong cash generation capability, with $279 million in net cash provided by operating activities and $201 million in free cash flow for 2024.

• Trinet Group Inc (NYSE:TNET) plans to continue investing in growth initiatives, funding dividends, and share repurchases, maintaining a strong capital return strategy.

Negative Points

• Trinet Group Inc (NYSE:TNET) faces challenges with low customer hiring and elevated healthcare costs, impacting new sales and attrition rates.

• The company anticipates a modest increase in attrition due to healthcare price increases, which could dampen new sales.

• Trinet Group Inc (NYSE:TNET) reported a GAAP net loss per share of $0.46 in Q4, impacted by restructuring charges.

• The company expects a contraction in adjusted EBITDA margin in 2025 due to elevated insurance cost ratios and HRIS business wind-down expenses.

• Trinet Group Inc (NYSE:TNET) anticipates a slight volume decrease in 2025, driven by prudent pricing approaches and increased attrition.