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TriNet Q4 revenue up 25% in total, net service revenue up 4%

March 04, 2015

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!