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View All NewsTriNet Q2 revenue up 22%, but PEO posts net loss
TriNet Group Inc. (NYSE: TNET), the fourth-largest US professional employer organization, reported second-quarter total revenue rose 21.9%, but the PEO reported a net loss of $1.3 million compared to net income of $6.2 million in the year-ago quarter.
The company reported an unexpected number of large medical claims.
| (US$ thousands) | Q2 2015 | Q2 2014 | % growth |
| Professional service revenue | $97,799 | $82,260 | 18.9% |
| Insurance service revenue | $542,208 | $442,746 | 22.5% |
| Total revenue | $640,007 | $525,006 | 21.9% |
| Net income/loss | -$1,308 | $6,221 | nm |
Total work site employees increased 17% in the past 12 months to approximately 302,000 at the end of June.
| (US$ thousands) | Q2 2015 | Q2 2014 | % growth |
| Net insurance service revenue | $24,214 | $42,551 | -43.1% |
| Net service revenue | $122,013 | $124,811 | -2.2% |
| Total WSEs | 302,375 | 258,985 | 16.8% |
| Total sales representatives | 486 | 388 | 25.3% |
Quote
“While our growth momentum remains robust, our results were impacted this quarter by a higher than expected number of large medical claims,” President and CEO Burton Goldfield said. “We were disappointed that these claims were well in excess of our expected claims volatility. We continue to analyze this part of our business and consider options for addressing variability in medical and the predictability of its contribution to net service revenues and profitability.”
Share price and market cap
Shares in TriNet rose 1.65% to $16.60 in early afternoon trading today and TriNet has a market cap of approximately $1.17 billion, according to Yahoo!