TRINET GROUP Reports Total Revenue of USD 1209.0 Million in Q2 FY2023, Up 0.8% Year-on-Year

🌥️Earnings Overview

On July 26, 2023, TRINET GROUP ($NYSE:TNET) announced their earnings results for the second quarter of FY2023 with total revenue of USD 1209.0 million, a 0.8% increase year-on-year. Additionally, their net income for the quarter was USD 83.0 million, a 2.4% decrease compared to the same period in the previous year.

Analysis

GoodWhale has conducted an analysis of TRINET GROUP‘s fundamentals, with a high health score of 7/10 considering its cashflows and debt, indicating that it is capable to sustain future operations in times of crisis. According to the Star Chart, TRINET GROUP is classified as ‘rhino’, a type of company we conclude that has achieved moderate revenue or earnings growth. TRINET GROUP is strong in terms of growth and profitability, but only medium in terms of assets. It is weak in the area of dividend. This makes it a company more appropriate for investors looking for growth rather than income. For example, investors interested in capital gains and dividends would find their rewards better from stocks with higher dividend yields. Investors focused on long-term growth may be more interested in TRINET GROUP due to its strong fundamentals in terms of growth and profitability. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Trinet Group. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Trinet Group. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Trinet Group. More…

Key Ratios Snapshot

Some of the financial key ratios for Trinet Group are shown below. More…

Peers

Its competitors are Insperity Inc, Paychex Inc, and Trucept Inc.

– Insperity Inc ($NYSE:NSP)

Inspriety Inc is a business services provider headquartered in Texas. The company offers a suite of human resources and business solutions to small and medium-sized businesses. Inspriety’s products and services include payroll, benefits, HR and talent management, time and attendance, and insurance. The company serves over 100,000 businesses across the United States.

Inspriety has a market cap of 4.12B as of 2022 and a ROE of 366.51%. The company’s strong market position and financial performance are attributable to its focus on providing quality products and services to its customers. Inspriety is well-positioned to continue its growth trajectory in the coming years.

– Paychex Inc ($NASDAQ:PAYX)

Paychex Inc is a leading provider of payroll and human resource outsourcing solutions for small- to medium-sized businesses. The company has a market cap of 40.42B as of 2022 and a return on equity of 38.35%. Paychex has been in business for over 40 years and has a long track record of providing quality services to its clients. The company offers a wide range of payroll and human resource outsourcing solutions, including payroll processing, tax compliance, benefits administration, and talent management. Paychex is a publicly traded company listed on the New York Stock Exchange (NYSE: PAYX).

– Trucept Inc ($OTCPK:TREP)

Trucept Inc. is a publicly traded American corporation with a market capitalization of 221.15 thousand as of 2022. The company is headquartered in Tulsa, Oklahoma and provides software and technology solutions to small and medium businesses. The company’s products and services include accounting, human resources, and customer relationship management. The company has a return on equity of 42.12%.

Summary

TRINET GROUP‘s second quarter earnings for FY2023 saw an increase in total revenue from the same period the previous year, reaching USD 1209.0 million. Despite this, net income for the quarter was down 2.4% year over year at USD 83.0 million. This may not be a cause for concern for investors, as the company’s revenue still managed to grow in the midst of the pandemic. However, investors should keep an eye on the company’s financial performance in the coming quarters to determine if this trend of decreasing profits is sustained.