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View All NewsTriNet Q4 revenue up 25% in total, net service revenue up 4%
Fourth-quarter revenue rose 25.3% at professional employer organization TriNet Group Inc. (NYSE: TNET) to $603.7 million.
The San Leandro, Calif.-based firm also reports revenue on a “net service revenue” basis which represents professional service revenue and net insurance revenue (insurance service revenue minus insurance costs such as premiums). Net service revenue rose 4.3% year over year in the fourth quarter to $126.9 million.
(US$ thousands) | Q4 2014 | Q4 2013 | % growth |
Revenue | $603,662 | $481,656 | 25.3% |
Gross margin | 15.4% | 18.5% | |
Net income | $7,011 | $6,007 | 16.7% |
Quote
“Nothwithstanding strong fundamentals in our underlying business, our Q4 net insurance service revenues were below our estimate as a result of higher than expected large medical claims,” said President and CEO Burton M. Goldfield. “We are working closely with our health insurance partners to identify these large claims earlier in the process to improve our ability to more accurately forecast our net insurance services revenues.”
Full-year results
(US$ thousands) | 2014 | 2013 | % growth |
Revenue | $2,193,531 | $1,644,275 | 33.4% |
Gross margin | 17.0% | 18.9% | |
Net income | $15,497 | $13,147 | 17.9% |
Share price and market cap
Shares in TriNet fell 11.46% to $33.54 in early afternoon trading today and TriNet has a market cap of approximately $2.33 billion, according to Yahoo!