Slide 1: Fourth Quarter 2024 and Fiscal Year 2024 Earnings
Fourth Quarter 2024 and Fiscal Year 2024 Earnings February 2025 © 2025 TriNet Group, Inc. All rights reserved. All trademarks, trade names, service marks and logos referenced herein belong to their respective companies. Reproduction or distribution in whole or part without express written permission
Slide 2: Cautionary Note Regarding Forward-Looking Statements and Other Financial Information
Cautionary Note Regarding Forward-Looking Statements and Other Financial Information For purposes of this presentation, the terms “TriNet,” “the Company,” “we,” “us” and “our” refer to TriNet Group, Inc., and its subsidiaries. This presentation contains statements that are not historical in nature,
Slide 3: Cautionary Note Regarding Forward-Looking Statements Continued
Cautionary Note Regarding Forward-Looking Statements and Other Financial Information Continued Forward-looking statements are not guarantees of future performance but are based on management’s expectations as of the date of this presentation and assumptions that are inherently subject to uncertainti
Slide 4: Introduction: Mike Simonds, TriNet President & CEO
Introduction: Mike Simonds, TriNet President & CEO © 2025 TriNet Group, Inc. All rights reserved. 4
Slide 5: Today's Discussion
TODAY’S DISCUSSION • Managing through an environment of elevated health cost inflation and constrained customer hiring. • Took swift action to respond to a challenging operating environment while strengthening and aligning our organization. • Performed rigorous analysis to identify a set of impactfu
Slide 6: Fourth Quarter 2024 Highlights
FOURTH QUARTER 2024 HIGHLIGHTS • Fourth Quarter performance reflected a continuation of many of the trends we experienced throughout 2024 including a challenged business environment as SMBs continued to navigate higher interest rates and muted demand. • Fourth Quarter new sales were in-line with our
Slide 7: Total Revenues
TOTAL +1% REVENUES1 +1% $4,994 $5,053 ($ millions) $756 $765 $72 $64 $1,261 $1,277 $189 $181 $16 $15 $4,166 $4,224 $1,056 $1,081 4Q23 4Q24 FY23 FY24 Professional Services Revenues Professional Services Revenues Interest Income Interest Income Insurance Service Revenues Insurance Services Revenues ©
Slide 8: Insurance Cost Ratio
INSURANCE COST RATIO2 95% 90% 87% 84% 4Q23 4Q24 FY23 FY24 © 2025 TriNet Group, Inc. All rights reserved. 8
Slide 9: Operating Expenses
OPERATING EXPENSES1 ($ millions) $940 $968 $274 Restructuring Charge $240 Restructuring Charge 4Q23 4Q24 FY23 FY24 © 2025 TriNet Group, Inc. All rights reserved. 9
Slide 10: Restructuring Charge
RESTRUCTURING CHARGE Intangible Impairments $25 million Site Rationalization $7 million Rightsizing on-shore team $14 million Other $3 million Total $49 million cash $17 million non-cash $32 million © 2025 TriNet Group, Inc. All rights reserved. 10
Slide 11: Earnings Per Share and Adjusted Earnings Per Share
EARNINGS PER SHARE1 AND EPS Adjusted EPS ADJUSTED $7.81 EARNINGS PER SHARE1,3,4 $6.56 $5.32 $3.43 $1.60 $1.31 $0.44 $(0.46) 4Q ‘23 4Q ‘24 FY ‘23 FY ‘24 4Q ‘23 4Q ‘24 FY ‘23 FY ‘24 © 2025 TriNet Group, Inc. All rights reserved. 11
Slide 12: Adjusted EBITDA
ADJUSTED EBITDA1,3,4 $697 ($ millions) $485 $140 Restructuring Charge $60 Restructuring Charge 4Q23 4Q24 FY23 FY24 % Margin 11.2% 4.7% 14.2% 9.6% © 2025 TriNet Group, Inc. All rights reserved. 12
Slide 13: FY 2025 Guidance
FY 2025 GUIDANCE GAAP Total Revenue ($M) $4,950 - $5,140 Professional Services Revenue ($M) $700 - $730 Insurance Cost Ratio 92% - 90% Adjusted EBITDA Margin 7% - 9% GAAP Net Income per Share $1.90 - $3.40 Adjusted Net Income per Share $3.25 - $4.75 © 2025 TriNet Group, Inc. All rights reserved. 13
Slide 14: Strategy & Medium-Term Outlook
Strategy & Medium-Term Outlook February 2025 © 2025 TriNet Group, Inc. All rights reserved. All trademarks, trade names, service marks and logos referenced herein belong to their respective companies. Reproduction or distribution in whole or part without express written permission is prohibited.
Slide 15: Compelling Shareholder Value Creation Opportunity
Revenue Growth Margin Expansion Adj EPS Growth COMPELLING • Innovative benefit • Pricing & risk mgmt • Deliver 12-14% SHAREHOLDER offering lowers ICR earnings growth per VALUE • Expand salesforce • Scale delivery model share in medium- term, including CREATION productivity & reach share repurchases
Slide 16: TriNet Overview
TriNet Overview © 2025 TriNet Group, Inc. All rights reserved. 16
Slide 17: Over Three Decades of Incredible HR Services & Solutions
OVER THREE DECADES OF BENEFITS OPTIONS INCREDIBLE HR SERVICES & SOLUTIONS PERSONALIZED HR EXPERTISE TOP TIER HR SOLUTIONS BRAND* TRINET PEO HR PLUS RISK 10x growth* MITIGATION in Brand Awareness #1 46% growth* in Like/Love by HR Leaders PAYROLL 5x growth* SERVICES in Consideration TECHNOLOGY *Indepe
Slide 18: Large and Growing Market
LARGE AND GROWING PEO Industry MARKET PEO TAM and Share WSE Growth6 < 500 WSE employers 2008 - 2022 CAGR 7.5% SMB TAM ~59 Million Employees5 Number of US SMBs with 5-500 WSEs5 ~7% PEO6 2.3 mm+ © 2025 TriNet Group, Inc. All rights reserved. 18
Slide 19: SMBs Face Growing Challenges
SMBs FACE Distributed workforce Regulatory burden Healthcare cost GROWING Annual premium Breakdown of workforce by # of State/Federal bills at CHALLENGES contributions for family working locations8 end of 2024 session TriNet coverage ($)7 tracked for clients9 Workers comp 19 41% 35% Data privacy and
Slide 20: Medium-Term Strategy
Medium-Term Strategy © 2025 TriNet Group, Inc. All rights reserved. 20
Slide 21: Taking Actions to Accelerate Revenue Growth
TAKING ACTIONS TO Strategic Initiatives Drivers ACCELERATE Improve benefit offering + REVENUE PRODUCT unique risk management New ACV GROWTH capabilities 4%-6%* Grow sales force, average Pricing Medium-Term Target SALES FORCE tenure and productivity Expand in brokerage Revenue DISTRIBUTION Retention
Slide 22: Enhancing Value Proposition of Product Offering
ENHANCING VALUE PROPOSITION Risk sharing approach enables richer data access and 1 OF PRODUCT innovation with our carrier partners OFFERING Dedicated insurance team with strong actuarial, Being Best in 2 product and distribution experience Benefits to Drive Customer 3 Investing in our benefits platf
Slide 23: Investing in Sales Force and Productivity
INVESTING IN SALES FORCE Avg. Sales Rep Productivity (New ACV*) AND Actions to Enhance Productivity PRODUCTIVITY • Growing sales force modestly Sales reps targeting experienced hires and become territory expansions materially more • Investing in product to enhance productive as customer value propos
Slide 24: Expanding in Benefits Broker Channel
EXPANDING IN BENEFITS BROKER CHANNEL ~41 million employees work for SMBs offering ~59 Million health care coverage Employees sourced through a trusted employee TAM5 benefit broker (EBB)10 ~7% PEO6 Health care sourced by employer through EBB No Health care provided by employer Currently Covered by PE
Slide 25: Upside to Revenue Growth from CIE Recovery
UPSIDE TO REVENUE GROWTH FROM Historical CIE CIE RECOVERY Growth Range 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Annual CIE Growth Muted CIE Growth Partial Reversion Historical CIE Growth Medium-Term Target Assumption CIE Growth 0% to 4% 4% to 8% 8% to 12% Revenue CAGR* 2% to 4% 4% to 6
Slide 26: Health Cost Ratio Issue Isolated to 15% of Book
HEALTH COST RATIO* ISSUE 2024 Health Cost Ratio* by Customer Cohort ISOLATED TO • New business written in 15% OF BOOK FY23 and 1H24 priced too low; taking action to correct +16 points mispricing Target • FY23/1H24 cohort repricing Range designed to move aggregate ICR into top half of target range ex
Slide 27: Creating Operating Leverage and Funding Reinvestment
CREATING OPERATING LEVERAGE AND Operating Expenses FUNDING Digital, AI, Process 1 to 3% p.a. REINVESTMENT Redesign Talent Strategy Reductions in Corporate 20% to 25% Overhead & MIS spend 12% FY2024 Medium Term Reinvestment Other OpEx © 2025 TriNet Group, Inc. All rights reserved. 27
Slide 28: Prudent Capital Allocation to Drive Value Creation
PRUDENT CAPITAL Share Repurchases ALLOCATION Intended to offset dilution and return excess capital to TO DRIVE shareholders VALUE CREATION Expect to convert Dividend 75% of FCF 60-65% Allocated to: of Adj. EBITDA1,3,4 to Expect to grow dividend in line FCF p.a. with earnings growth on average Target
Slide 29: Medium-Term Financial Objectives
MEDIUM-TERM FINANCIAL OBJECTIVES 4 to 6% 10 to 11% 12 to 14% Total Revenues Growth Adj EBITDA Margin1,3,4 Adj EPS Growth1,3,4 Growth from New ACV, 87% to 90% ICR Range 1% to 2% Contribution Retention and Pricing 1-3% p.a. OpEx Growth from Share Repurchases 13 to 15% Value Creation Opportunity ~1% Co
Slide 30: Laying Groundwork in FY25 to Achieve Medium-Term Targets
LAYING GROUNDWORK IN FY25 TO FY 2025 MEDIUM-TERM ACHIEVE MEDIUM-TERM WSE growth from new sales, stable retention and pricing, TARGETS Total Revenues $4.9B to $5.1B moderate improvement in CIE 4% to 6% but remains below historical levels ICR improve to in range as pricing recapture trend though Insur
Slide 31: Investment Thesis
INVESTMENT THESIS 1 Large, growing and underpenetrated SMB market opportunity Strong customer value proposition that increases with 2 healthcare cost and complexity Sharper strategy and enhanced risk management create clear 3 pathway to revenue growth and margin expansion Improved financial performa
Slide 32: Appendix
APPENDIX © 2025 TriNet Group, Inc. All rights reserved. 32
Slide 33: Appendix A: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures The table below presents a reconciliation of net income to Adjusted EBITDA: Three Months Ended Year Ended APPENDIX A (in millions) December 31, 2024 2023 December 31, 2024 2023 Net income $ (23) $ 67 $ 173 $ 375 Provision for income taxes (14) 19 53 126 St
Slide 34: Appendix B: Reconciliation for FY2025 Guidance
Reconciliation of GAAP to Non-GAAP Measures for the full-year 2025 guidance. Low and high percentages represent increases (decreases) from the same periods in the previous year. APPENDIX B (in millions, except per share data) FY 2024 Actual Year 2025 Guidance Low High Net (loss) income 173 (46)% (3)
Slide 35: Appendix C: End Notes
APPENDIX C END NOTES 1 For more information regarding these measures or the components of these measures, please see our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, including under the headings “Management’s Discussion and Analysis of Financial Condition and Results of Operations
Slide 36: Appendix D: Historical Quarterly Insurance Cost Ratio
APPENDIX D HISTORICAL QUARTERLY Q1 Q2 Q3 Q4 FY INSURANCE COST RATIO2 MEAN 86.5% 86.7% 88.3% 90.3% 88.0% 2013-2024 MEDIAN 86.4% 86.6% 89.2% 89.9% 87.5% © 2025 TriNet Group, Inc. All rights reserved. 36