1% Growth in Total Revenues to $1.3 Billion 4% Growth in Professional Service Revenues to $214 million Net Income per Diluted Share of $1.78 and Adjusted Net Income per Diluted Share $2.16 DUBLIN, Calif., April 26, 2024 /PRNewswire/ -- TriNet Group, Inc. (NYSE: TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses, today announced financial results for the first quarter ended March 31, 2024. The first quarter highlights below include non-GAAP financial measures which are reconciled later in this release. First quarter highlights include: Total revenues increased 1% to $1.3 billion as compared to the same period last year. Professional service revenues increased 4% to $214 million as compared to the same period last year. Net income was $91 million, or $1.78 per diluted share, compared to net income of $131 million, or $2.17 per diluted share, in the same period last year. Adjusted Net Income was $111 million, or $2.16 per diluted share, compared to Adjusted Net Income of $150 million, or $2.49 per diluted share, in the same period last year. Adjusted EBITDA was $180 million, compared to Adjusted EBITDA of $223 million, in the same period last year. Average WSEs increased 6% as compared to the same period last year, to approximately 348,000 and includes 17,600 PEO Platform Users. Average HRIS Users for the period was approximately 195,000. At March 31, 2024, TriNet had cash and cash equivalents of $298 million and total debt of $1.1 billion. "I'm excited to have begun my tenure as CEO of TriNet," said Mike Simonds, TriNet's President and CEO. "We are building strong momentum in the market with our unique set of services and proprietary technology. While the broader economic environment remains challenged, we are keeping our focus on our customers and the substantial growth opportunity ahead of us." Mr. Simonds continued, "Given the environment, I am pleased with TriNet's execution and our first quarter financial results. In the areas within our control, particularly new sales, retention, and expense management, we executed well.  We continue to generate strong cash flows while positioning our business to take disproportionate share of growth as macroeconomic conditions improve." Second Quarter and Full-Year 2024 Guidance In addition to announcing our first quarter 2024 results, we provide our second quarter and full-year 2024 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. Q2 2024 Full Year 2024 Low High Low High Total Revenues (1) % 1 % (1) % 4 % Professional Service Revenues (2) % 4 % 1 % 5 % Insurance Cost Ratio 90.0 % 87.0 % 89.5 % 87.5 % Diluted net income per share of common stock $        0.68 $        1.17 $        3.94 $        5.46 Adjusted Net Income per share - diluted $        1.00 $        1.50 $        5.25 $        6.80 Quarterly Report on Form 10-Q  We anticipate filing our Quarterly Report on Form 10-Q ("Form 10-Q") for the three months ended March 31, 2024 with the U.S. Securities and Exchange Commission (SEC) and making it available at http://www.trinet.com today, April 26, 2024. This press release should be read in conjunction with the Form 10-Q 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-Q. Earnings Conference Call and Audio Webcast TriNet will host a conference call at 5:30 a.m. PT (8:30 a.m. ET) today to discuss its first quarter results for 2024 and provide second quarter and full-year financial guidance for 2024. 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/10187933/fc1cc28dfc. 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 http://investor.trinet.com. Participants can pre-register for the webcast by going to: https://events.q4inc.com/attendee/233316970. A replay of the webcast will be available on this website for approximately one year. A telephonic replay will be available for two weeks following the conference call at +1 (412) 317-0088 conference ID: 1522960. 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. Rooted in more than 30 years of supporting entrepreneurs and adapting to the ever-changing modern workplace, TriNet empowers SMBs to focus on what matters most - growing their business and enabling their people For more information, please visit TriNet.com or follow us on Facebook, LinkedIn and Instagram. Use of Non-GAAP Financial Measures Reconciliations of non-GAAP financial measures to TriNet's financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled "Non-GAAP Financial Measures." Forward-Looking Statements This press release contains, and statements made during the above referenced conference call will contain, statements that are not historical in nature, are predictive in nature, or that depend upon or refer to future events or conditions or otherwise contain forward-looking statements within the meaning of Section 21 of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, among other things, TriNet's expectations and assumptions regarding: TriNet's financial guidance for the second quarter and full-year 2024 and the underlying assumptions, the value to customers and shareholders of TriNet's product offerings, , TriNet's financial performance and long-term growth, and the extent, length and growth impact of current economic uncertainty. Forward-looking statements are often identified by the use of words such as, but not limited to, "ability," "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "guidance," "impact," "intend," "may," "plan," "predict," "project," "seek," "should," "strategy," "target," "value," "will," "would" and similar expressions or variations. Examples of forward-looking statements include, among others, TriNet's expectations regarding the impact of its product offerings, continued sales growth and client retention, and long-term growth in light of current economic uncertainty. These statements are not guarantees of future performance but are based on management's expectations as of the date hereof and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from our current expectations and any past or future results, performance or achievements. Investors are cautioned not to place undue reliance upon any forward-looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include: our ability to manage unexpected changes in workers' compensation and health insurance claims and costs by WSEs; our ability to mitigate the unique business risks we face as a co-employer; the effects of volatility in the financial and economic environment on the businesses that make up our client base; loss of clients for reasons beyond our control and the short-term contracts we typically use with our clients; the impact of regional or industry-specific economic and health factors on our operations; the impact of failures or limitations in the business systems and centers we rely upon; the impact of discontinuing our discretionary credits on our business and client loyalty and retention; changes in our insurance coverage or our relationships with key insurance carriers; our ability to improve our services and technology to satisfy client and regulatory expectations; our ability to effectively integrate businesses we have acquired or may acquire in the future; our ability to effectively manage and improve our operational effectiveness and resiliency; our ability to attract and retain qualified personnel; the effects of increased competition and our ability to compete effectively; the impact on our business of cyber-attacks, breaches, disclosures and other data-related incidents; our ability to protect against and remediate cyber-attacks, breaches, disclosures and other data-related incidents, whether intentional or inadvertent and whether attributable to us or our service providers; our ability to comply with evolving data privacy and security laws; our ability to manage changes in, uncertainty regarding, or adverse application of the complex laws and regulations that govern our business; changing laws and regulations governing health insurance and employee benefits; our ability to be recognized as an employer of worksite employees and for our benefits plans to satisfy all requirements under federal and state regulations; changes in the laws and regulations that govern what it means to be an employer, employee or independent contractor; the impact of new and changing laws regarding remote work; our ability to comply with the licensing requirements that govern our solutions; the outcome of existing and future legal and tax proceedings; fluctuation in our results of operations and stock price due to factors outside of our control; our ability to comply with the restrictions of our credit facility and meet our debt obligations; and the impact of concentrated ownership in our stock by Atairos and other large stockholders. Any of these factors could cause our actual results to differ materially from our anticipated results. Further information on risks that could affect TriNet's results is included in our filings with the SEC, including under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on our investor relations website at http://investor.trinet.com and on the SEC website at www.sec.gov. Copies of these filings are also available by contacting TriNet Corporation's Investor Relations Department at (510) 875-7201. Except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements in this press release, and any forward-looking statements in this press release speak only as of the date of this press release. In addition, we do not assume any obligation, and do not intend, to update any of our forward-looking statements, except as required by law. Contacts: Investors: Media: Alex Bauer Renee Brotherton TriNet TriNet (510) 875-7201 (925) 965-8441   Key Financial and Operating Metrics We regularly review certain key financial and operating metrics to evaluate growth trends, measure our performance and make strategic decisions. These key financial and operating metrics may change over time. Our key financial and operating metrics for the periods presented were as follows: Three Months Ended March 31, (in millions, except per share and Operating Metrics data) 2024 2023 % Change Income Statement Data: Total revenues $         1,264 $         1,246 1 % Operating income 122 169 (28) Net income 91 131 (31) Diluted net income per share of common stock 1.78 2.17 (18) Non-GAAP measures (1): Adjusted EBITDA 180 223 (19) Adjusted Net income 111 150 (26) Operating Metrics: Insurance Cost Ratio 86 % 82 % 4 Average WSEs (2) 348,164 327,107 6 % Total WSEs at period end (2) 351,919 328,299 7 Average HRIS Users  (3) 195,157 231,347 (16)   (1) Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading "Non-GAAP Financial Measures". (2) Total WSEs and Average WSEs include approximately 19,600 and 17,600, respectively, for incremental WSEs that were charged a platform user access fee for the first quarter ended March 31, 2024,. Additionally, Total WSEs  and Average WSEs include approximately 5,300 and 5,400, respectively,  incremental additional service recipients. These were identified as a result of our ongoing effort to ensure that our billing practices best ...