TriNet Earnings: Revenue Misses the Mark Amid Hiring Slowdown, but Margins Surprise to the Upside

Narrow-moat TriNet reported mixed third-quarter results, with top-line growth falling short of our expectation and guidance but profitability exceeding our forecast due to a better-than-expected insurance cost ratio. Following the incorporation of these results, we have trimmed our full-year revenue growth forecast to flat year on year, down from our previous expectation of 2%. Nonetheless, our longer-term forecast and $145 fair value estimate are intact, and the shares continue to screen as attractive, trading at a 25% discount to our valuation.