TriNet Group (TNET) Increases Share Buyback by $300M, Reports Earnings

TriNet Group, Inc. (NYSE: TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses (SMBs), today announced financial results for the fourth quarter and fiscal year ended December 31, 2021. The fourth quarter and fiscal year highlights below include non-GAAP financial measures which are reconciled later in this release.

Fourth quarter highlights include:

• Professional service revenues increased 23% to $174 million compared to the same period last year.
• Total revenues increased 16% to $1.2 billion compared to the same period last year.
• Net income was $69 million, or $1.03 per diluted share, compared to net income of $22 million, or $0.32 per diluted share, in the same period last year.
• Adjusted Net Income was $74 million, or $1.13 per diluted share, compared to Adjusted Net Income of $30 million, or $0.44 per diluted share, in the same period last year.
• Adjusted EBITDA was $116 million, representing an Adjusted EBITDA Margin of 9.4%, compared to Adjusted EBITDA of $56 million, representing an Adjusted EBITDA Margin of 5.3% in the same period last year.
• Total WSEs increased 10% compared to the same period last year, to approximately 365,000.
• Average Worksite Employees (WSEs) increased 10% as compared to the same period last year, to approximately 359,000.

Full year highlights include:

• Professional service revenues increased 17% to $639 million as compared to 2020.
• Total revenues increased 13% to $4.5 billion as compared to 2020.
• Net income was $338 million, or $5.07 per diluted share, compared to net income of $272 million, or $3.99 per diluted share, in 2020.
• Adjusted Net Income was $376 million, or $5.64 per diluted share, compared to Adjusted Net Income of $303 million, or $4.44 per diluted share, in 2020.
• Adjusted EBITDA was $565 million, representing an Adjusted EBITDA Margin of 12.5%, compared to Adjusted EBITDA of $468 million, representing an Adjusted EBITDA Margin of 11.6% in the same period last year.
• Average WSEs increased compared to 2020, to approximately 340,000.

Stock Repurchase Program:

• Stock repurchase program increased by $300 million.

"Our fourth quarter financial and operating performance capped off what was a record 2021 for TriNet," said Burton M. Goldfield. "By leveraging our scale in service of our customers in a highly competitive marketplace for talent, our dynamic customers were able to continue to grow and hire workers at record rates. Our product and services were well received in the open market, and ultimately in the quarter, we delivered mid-teens revenue growth, exceptional earnings growth, and double-digit volume growth."

Mr. Goldfield continued, "As we look forward to 2022, we are excited to expand our product offering and our addressable market through our pending acquisition of Zenefits. TriNet will now be able to offer complementary PEO and HCM software products to better serve our customers throughout their lifecycle. We believe in the secular growth prospects for the SMBs space, and with our expanded product portfolio, we are now better positioned to capture more of that growth."

First Quarter and Full-Year 2022 Guidance

In addition to announcing our fourth quarter and fiscal year 2021 results, we provide our first quarter and full-year 2022 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. The table below does not include expected results from the pending acquisition of YourPeople, Inc. (dba Zenefits).

Other Announcements

In February 2022, TriNet's Board of Directors approved a $300 million increase to its ongoing stock repurchase program. As of December 31, 2021, approximately $263 million remained available for repurchases of TriNet stock under this program. TriNet may repurchase stock under this program in open-market purchases or through privately negotiated transactions, as permitted under Rule 10b-18 of the Securities Exchange Act of 1934, as amended (Exchange Act), or through a trading plan that complies with Rule 10b5-1(c) of the Exchange Act. The extent to which TriNet repurchases its stock and the timing of such repurchases will depend upon market conditions and other corporate considerations, as determined by TriNet's management team.

Annual Report on Form 10-K

We anticipate filing our Annual Report on Form 10-K ("Form 10-K") for the year ended December 31, 2021 with the U.S. Securities and Exchange Commission (SEC) and making it available at http://www.trinet.com today, February 14, 2022. This press release should be read in conjunction with the Form 10-K 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-K.

Earnings Conference Call and Audio Webcast

TriNet will host a conference call at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its fourth quarter and fiscal year results for 2021 and provide first quarter and full-year financial guidance for 2022. 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/10163606/f13d7becd0. 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. A replay of the webcast will be available on this website for approximately one year. A telephonic replay will be available for one week following the conference call at +1 (412) 317-0088 conference ID: 2478854

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