Latest news with #TriNet
Yahoo
25-07-2025
- Business
- Yahoo
TriNet Announces Second Quarter 2025 Results & Reaffirms Full Year 2025 Guidance
DUBLIN, Calif., July 25, 2025 /PRNewswire/ -- TriNet Group, Inc. (NYSE: TNET), a leading provider of comprehensive and flexible human capital management (HCM) solutions for small and medium-size businesses (SMBs), today announced financial results for the second quarter ended June 30, 2025. The second quarter highlights below include non-GAAP financial measures which are reconciled later in this release. "Our second quarter financial performance was in-line with our forecast and keeps us on track to achieve our full-year guidance," said Mike Simonds, TriNet President and CEO. "We continued to execute our strategy while supporting our SMB customers through the volatile business environment." Simonds continued, "During the quarter, we prudently repriced our benefits offering, while maintaining customer retention above our historical average. With several growth initiatives on track for the fall, we are excited to drive new sales with an expanded go-to-market approach coupled with improvements to our offering." Second quarter highlights include: Total revenues were $1.2 billion, flat compared to the same period last year. Professional service revenues decreased 8% to $172 million compared to the same period last year. Net income was $37 million, or $0.77 per diluted share, compared to net income of $60 million, or $1.20 per diluted share, in the same period last year. Adjusted Net Income was $55 million, or $1.15 per diluted share, compared to Adjusted Net Income of $78 million, or $1.53 per diluted share, in the same period last year. Adjusted EBITDA was $105 million, representing an Adjusted EBITDA Margin of 8.5%, compared to Adjusted EBITDA of $136 million, representing an Adjusted EBITDA Margin of 10.9%, in the same period last year. Average WSEs decreased 4% compared to the same period last year, to approximately 336,000. Returned $117 million to shareholders through share repurchases and dividends during the first half of 2025. Full-Year 2025 Guidance In addition to announcing our second quarter 2025 results, we are reiterating our full-year 2025 guidance. Non-GAAP financial measures are reconciled later in this Year 2025 (dollars in millions, except for per share amounts) LowHigh Total Revenues $4,950$5,140 Professional Service Revenues $700$730 Insurance Cost Ratio 92 %90 % Adjusted EBITDA Margin 7 %9 % Diluted net income per share of common stock $1.90$3.40 Adjusted Net Income per share - diluted $3.25$4.75 Quarterly Report on Form 10-Q We anticipate filing our Quarterly Report on Form 10-Q ("Form 10-Q") for the first half of 2025 with the U.S. Securities and Exchange Commission (SEC) and making it available at today, July 25, 2025. This press release should be read in conjunction with the Form 10-Q and the related Notes to Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations contained in the Form 10-Q. Earnings Conference Call and Audio Webcast TriNet will host a conference call at 5:30 a.m. PT (8:30 a.m. ET) today to discuss its second quarter results for 2025 and reaffirm its full-year financial guidance for 2025. TriNet encourages participants to pre-register for the webcast and conference call. The live webcast of the conference call can be accessed on the Investor Relations section of TriNet's website at Participants can pre-register for the webcast by going to: Callers can pre-register by going to: For those who would like to join the call but have not pre-registered, they can do so by dialing +1 (412) 317-5426 and requesting the "TriNet Conference Call." A replay of the webcast will be available on this website for approximately one year. A telephonic replay will be available for two weeks following the conference call at +1 (412) 317-0088 conference ID: 7260452. About TriNet TriNet is a leading provider of Human Resources solutions for small and medium size businesses, offering advanced technology-enabled services that include human capital expertise, employee benefits such as health insurance and retirement plans, payroll and payroll tax administration, risk mitigation, and compliance consulting. Our long-term objective is to be the premier provider of HR services for a broad range of SMBs through industry leading benefits, sales distribution excellence, and a world class services delivery model. For more information, visit or follow us on Facebook, LinkedIn and Instagram. Use of Non-GAAP Financial Measures Reconciliations of non-GAAP financial measures to TriNet's financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section titled "Non-GAAP Financial Measures." Forward-Looking Statements This press release contains, and statements made during the above referenced conference call will contain, statements that are not historical in nature, are predictive in nature, or that depend upon or refer to future events or conditions or otherwise contain forward-looking statements within the meaning of Section 21 of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, among other things, TriNet's expectations and assumptions regarding: TriNet's financial guidance for the full-year 2025 and the underlying assumptions; TriNet's ability to achieve improvements in its results in 2026; the timing of TriNet's growth initiatives, TriNet's ability to drive new sales and maintain disciplined pricing and TriNet's ability to further benefit its customers with its product investments and service delivery model. Forward-looking statements are often identified by the use of words such as, but not limited to, "ability," "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "guidance," "impact," "intend," "may," "plan," "predict," "project," "seek," "should," "strategy," "target," "value," "will," "would" and similar expressions or variations. These statements are not guarantees of future performance but are based on management's expectations as of the date hereof and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from our current expectations and any past or future results, performance or achievements. Investors are cautioned not to place undue reliance upon any forward-looking statements. Important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements include: our ability to manage unexpected changes in workers' compensation and health insurance claims and costs by WSEs; our ability to mitigate the unique business risks we face as a co-employer; the effects of volatility in the financial and economic environment on the businesses that make up our client base; our inability to realize or sustain the expected benefits from our business realignment initiatives; loss of clients for reasons beyond our control and the short-term contracts we typically use with our clients; the impact of regional or industry-specific economic and health factors on our operations; the impact of failures or limitations in the business systems and centers we rely upon; the impact of discontinuing our discretionary credits on our business and client loyalty and retention; changes in our insurance coverage or our relationships with key insurance carriers; our ability to improve our services and technology to satisfy client and regulatory expectations; our ability to effectively integrate businesses we have acquired or may acquire in the future; our ability to effectively manage and improve our operational effectiveness and resiliency; our ability to attract and retain qualified personnel; the effects of increased competition and our ability to compete effectively; the impact on our business of cyber-attacks, breaches, disclosures and other data-related incidents; our ability to comply with evolving data privacy, AI and security laws; our ability to manage changes in, uncertainty regarding, or adverse application of the complex laws and regulations that govern our business; changing laws and regulations governing health insurance and employee benefits; our ability to keep pace with changes in technology or provide timely enhancements to our solutions and support; risks associated with our international operations; our ability to operate a business subject to numerous complex laws; changing laws and regulations governing health insurance and other traditional employee benefits at the federal, state, and local levels; our ability to be recognized as an employer of worksite employees and for our benefits plans to satisfy all requirements under federal and state regulations; changes in the laws and regulations that govern what it means to be an employer, employee or independent contractor; the impact of new and changing laws regarding remote work; our ability to comply with the licensing requirements that govern our solutions; the failure of third-party service providers performing their functions; the failure to comply with anti-corruption laws and regulations, economic and trade sanctions, and similar laws; the outcome of existing and future legal and tax proceedings; fluctuation in our results of operations and stock price due to factors outside of our control; our ability to comply with the restrictions of our indebtedness and meet our debt obligations; the need for additional capital or to restructure our existing debt; the continuation of our stock repurchase program; the impact of concentrated ownership in our stock by Atairos and other large stockholders; and the anti-takeover provisions in our charter documents and under Delaware law. Any of these factors could cause our actual results to differ materially from our anticipated results. Further information on risks that could affect TriNet's results is included in our filings with the SEC, including under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and elsewhere in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which are available on our investor relations website at and on the SEC website at Copies of these filings are also available by contacting TriNet Corporation's Investor Relations Department at (510) 875-7201. Except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements in this press release, and any forward-looking statements in this press release speak only as of the date of this press release. In addition, we do not assume any obligation, and do not intend, to update any of our forward-looking statements, except as required by law. Contacts:Investors: Media: Alex Bauer Renee Brotherton TriNet TriNet (510) 875-7201 (925) 965-8441 Key Financial and Operating Metrics We regularly review certain key financial and operating metrics to evaluate growth trends, measure our performance and make strategic decisions. These key financial and operating metrics may change over time. Our key financial and operating metrics for the periods presented were as follows:Three Months Ended June 30,Six Months Ended June 30, (in millions, except per share and Operating Metrics data) 20252024% Change20252024%Change Income Statement Data:Total revenues $ 1,238$ 1,243— %$ 2,530$ 2,525— % Income before tax 5181(37) 166205(19)Net income 3760(38) 122152(20)Diluted net income per share of common stock 0.771.20(36) 2.482.98(17)Non-GAAP measures (1):Adjusted EBITDA 105136(23) 268316(15)Adjusted Net income 5578(29) 154189(19)Free Cash Flow1379544Operating Metrics:Insurance Cost Ratio 90 %88 %2 %89 %87 %2Average WSEs 336,010351,455(4) 338,377349,810(3) % Total WSEs 338,900354,028(4) 338,900354,028(4)(1) Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading "Non-GAAP Financial Measures" (in millions) June 30, 2025December 31, 2024% ChangeBalance Sheet Data: Cash and cash equivalents $ 407$ 36013 % Working capital 25419928Total assets 3,6884,119(10)Debt 984983—Total stockholders' equity 1076955 Six Months Ended June 30, (in millions) 20252024% Change Cash Flow Data: Net cash provided by operating activities $ 170$ 13031 % Net cash used in investing activities (7)(47)(85)Net cash used in financing activities (428)(555)(23) TRINET GROUP, STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) Three Months Ended June 30,Six Months Ended June 30, (in millions except per share data) 2025 20242025 2024 Professional service revenues $ 172 $ 186$ 381 $ 400 Insurance service revenues 1,048 1,0402,113 2,090 Interest income 18 1736 35 Total revenues 1,238 1,2432,530 2,525 Insurance costs 947 9161,889 1,823 Cost of providing services 71 75142 154 Sales and marketing 68 72135 144 General and administrative 52 4798 95 Systems development and programming 17 1737 35 Depreciation and amortization of intangible assets 17 1934 37 Interest expense, bank fees and other 15 1629 32 Total costs and operating expenses 1,187 1,1622,364 2,320 Income before tax 51 81166 205 Income taxes 14 2144 53 Net income $ 37 $ 60$ 122 $ 152 Other comprehensive income (loss), net of income taxes 1 —3 (3) Comprehensive income $ 38 $ 60$ 125 $ 149 Net income per share:Basic $ 0.77 $ 1.21$ 2.49 $ 3.01 Diluted $ 0.77 $ 1.20$ 2.48 $ 2.98 Weighted average shares:Basic 48 5049 50 Diluted 49 5149 51 TRINET GROUP, BALANCE SHEETS (Unaudited) June 30,December 31, (in millions, except share and per share data)20252024 Assets Current assets: Cash and cash equivalents$ 407$ 360 Restricted cash, cash equivalents and investments1,1011,413 Accounts receivable, net1232 Payroll funds receivable487349 Prepaid expenses, net5064 Other payroll assets660916 Other current assets4546 Total current assets2,7623,180 Restricted cash, cash equivalents and investments, noncurrent124145 Property and equipment, net1010 Operating lease right-of-use asset3924 Goodwill461461 Software and other intangible assets, net148156 Other assets144143 Total assets$ 3,688$ 4,119 Liabilities and stockholders' equity Current liabilities: Accounts payable and other current liabilities$ 85$ 89 Revolving credit agreement borrowings9075 Client deposits and other client liabilities4176 Accrued wages562580 Accrued health insurance costs, net191189 Accrued workers' compensation costs, net4644 Payroll tax liabilities and other payroll withholdings1,4841,906 Operating lease liabilities313 Insurance premiums and other payables69 Total current liabilities2,5082,981 Long-term debt, noncurrent894908 Accrued workers' compensation costs, noncurrent, net109110 Deferred taxes1011 Operating lease liabilities, noncurrent4826 Other non-current liabilities1214 Total liabilities3,5814,050 Total stockholders' equity10769 Total liabilities & stockholders' equity$ 3,688$ 4,119 TRINET GROUP, STATEMENTS OF CASH FLOWS (Unaudited)Six Months Ended June 30, (in millions) 2025 2024 Operating activities Net income $ 122 $ 152 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization of intangible assets 33 37 Amortization of deferred costs 23 21 Amortization of ROU asset, lease modification, impairment, and abandonment 3 3 Deferred income taxes (1) — Stock based compensation 31 38 Loss from disposition of assets 1 — Other 3 1 Changes in operating assets and liabilities: Accounts receivable, net 1 (4) Prepaid expenses, net 9 (18) Other assets (18) (35) Other payroll assets — 2 Accounts payable and other liabilities (5) (8) Client deposits and other client liabilities (1) (9) Accrued wages (10) (20) Accrued health insurance costs, net 1 (1) Accrued workers' compensation costs, net (1) (14) Payroll taxes liabilities and other payroll withholdings (14) (8) Operating lease liabilities (7) (7) Net cash provided by operating activities 170 130 Investing activities Purchases of marketable securities (41) (137) Proceeds from sale and maturity of marketable securities 66 125 Acquisitions of property and equipment and software (33) (35) Sale of property and equipment and software — — Proceeds from sale of business 1 — Net cash used in investing activities (7) (47) Financing activities Change in WSE and TriNet Trust related assets and liabilities, net (310) (382) Repurchase of common stock (91) (135) Proceeds from issuance of common stock 7 7 Awards effectively repurchased for required employee withholding taxes (8) (12) Repayment of revolving credit agreement borrowings — (25) Dividends paid (26) (13) Net cash used in financing activities (428) (560) Net change in cash and cash equivalents, unrestricted and restricted (265) (477) Cash and cash equivalents, unrestricted and restricted: Beginning of period 1,691 1,466 End of period $ 1,426 $ 989Supplemental disclosures of cash flow information Interest paid $ 27 $ 30 Income taxes paid, net $ 26 $ 62 Supplemental schedule of noncash investing and financing activities Cash dividend declared, but not yet paid $ 13 $ 12 Payable for purchase of property and equipment $ 3 $ 2 Receivable from sale of business $ 6 $ — Non-GAAP Financial Measures In addition to the selected financial measures presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP), we monitor other non-GAAP financial measures that we use to manage our business, to make planning decisions, to allocate resources and to use as performance measures in our executive compensation plan. These key financial measures provide an additional view of our operational performance over the long term and provide information that we use to maintain and grow our business. The presentation of these non-GAAP financial measures is used to enhance the understanding of certain aspects of our financial performance. It is not meant to be considered in isolation from, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. Non-GAAP Measure Definition How We Use The Measure Adjusted EBITDA • Net income, excluding the effects of: - income tax provision, - interest expense, bank fees and other, - depreciation, - amortization of intangible assets, - stock based compensation expense, - amortization of cloud computing arrangements, and - restructuring costs • Provides period-to-period comparisons on a consistent basis and an understanding as to how our management evaluates theeffectiveness of our business strategies by excluding certain non-recurring costs, which include restructuring costs, as well as certainnon-cash charges such as depreciation and amortization, and stock-based compensationand certain impairment charges recognizedbased on the estimated fair values. We believe these charges are either not directly resulting from our core operations or not indicative of our ongoing operations • Enhances comparisons to the prior periodand, accordingly, facilitates the developmentof future projections and earnings growthprospects • Provides a measure, among others, used inthe determination of incentive compensationfor management • We also sometimes refer to Adjusted EBITDA margin, which is the ratio of Adjusted EBITDA to total revenues Adjusted Net Income • Net income, excluding the effects of: - effective income tax rate (1), - stock based compensation expense, - amortization of intangible assets, net, - non-cash interest expense, - restructuring costs, and - the income tax effect (at our effective taxrate (1) of these pre-tax adjustments.) • Provides information to our stockholdersand board of directors to understand how ourmanagement evaluates our business, to monitor and evaluate our operating results,and analyze profitability of our ongoingoperations and trends on a consistent basis by excluding certain non-cash charges Free Cash Flow • Net cash provided by operating activitiesreduced by capital expenditures • Provides information on the strength of our liquidity and available cash • Provides management with a measure to assist in making planning decisions, evaluateour performance and allocate resources • We also sometimes refer to Free Cash FlowConversion ratio, which is the ratio of free cash flow to Adjusted EBITDA (1) Non-GAAP effective tax rate is 25.0% and 25.6% for the second quarters and full years of 2025 and 2024, which excludes the income tax impactfrom stock-based compensation, changes in uncertain tax positions, and nonrecurring benefits or expenses from federal legislative changes. Reconciliation of GAAP to Non-GAAP Measures The table below presents a reconciliation of Net (loss) income to Adjusted EBITDA:Three Months EndedJune 30,Six Months EndedJune 30, (in millions) 2025 20242025 2024 Net income $ 37 $ 60$ 122 $ 152 Provision for income taxes 14 2144 53 Stock based compensation 18 1831 38 Interest expense, bank fees and other 15 1629 32 Depreciation and amortization of intangible assets 17 1934 37 Amortization of cloud computing arrangements 2 25 4 Restructuring costs 2 —3 — Adjusted EBITDA $ 105 $ 136$ 268 $ 316 Adjusted EBITDA Margin 8.5 % 10.9 %10.6 % 12.5 % The table below presents a reconciliation of Net (loss) income to Adjusted Net Income and Adjusted Net Income per share - diluted:Three Months Ended June 30,Six Months Ended June 30, (in millions, except per share data) 2025 20242025 2024 Net income $ 37 $ 60$ 122 $ 152 Effective income tax rate adjustment 1 —2 1 Stock based compensation 18 1831 38 Amortization of intangible assets 3 55 10 Non-cash interest expense — 11 1 Restructuring costs 2 —3 — Income tax impact of pre-tax adjustments (6) (6)(10) (13) Adjusted Net Income $ 55 $ 78$ 154 $ 189 GAAP weighted average shares of common stock - diluted 49 5149 51 Adjusted Net Income per share - diluted $ 1.15 $ 1.53$ 3.15 $ 3.70 The table below presents a reconciliation of Net cash provided by operating activities to Free Cash Flow:Six Months Ended June 30, (in millions) 2025 2024 Net cash provided by operating activities $ 170 $ 130 Acquisitions of property and equipment and projects in process (33) (35) Free Cash Flow (a) $ 137 $ 95 Adjusted EBITDA (b) $ 268 $ 316 Free Cash Flow Conversion Ratio (a)/(b) 51 % 30 % Reconciliation of GAAP to Non-GAAP Measures for the full-year 2025 guidance. Low and high percentages represent increases (decreases) from the same period in the previous year. The table below presents a reconciliation of net income to Adjusted Net Income and Adjusted Net Income per share - diluted:FY 2024Year 2025 Guidance (in millions, except per share data) ActualLow High Net income $173(46) % (3) % Effective income tax rate adjustment (5)(83) (105) Stock based compensation 6511 11 Amortization of intangible assets 19(49) (49) Non-cash interest expense 3(100) (100) Restructuring costs 49(80) (80) Income tax impact of pre-tax adjustments (35)(32) (32) Adjusted Net Income $269(40) % (12) % GAAP weighted average shares of common stock - diluted 50Adjusted Net Income per share - diluted $5.32$3.25 $4.75 View original content to download multimedia: SOURCE TriNet Group, Inc.
Business Insider
21-07-2025
- Business
- Business Insider
TriNet price target lowered to $73 from $80 at UBS
UBS analyst Kevin McVeigh lowered the firm's price target on TriNet (TNET) to $73 from $80 and keeps a Neutral rating on the shares. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Yahoo
11-07-2025
- Business
- Yahoo
TriNet to Report Second Quarter 2025 Financial Results on July 25
DUBLIN, Calif., July 11, 2025 /PRNewswire/ -- TriNet (NYSE: TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses (SMBs), today announced it will release financial results for the second quarter ended June 30, 2025 before U.S. market hours on Friday, July 25, 2025. TriNet will host a conference call at 5:30 a.m. PT (8:30 a.m. ET) on July 25, 2025, to discuss the financial results. A live webcast of the conference call can be accessed on the Investor Relations section of TriNet's website at Participants can pre-register for the webcast by going to: Participants can also pre-register for the upcoming conference call. Those who pre-register will receive a unique PIN, enabling instant access to the call. To pre-register, visit: Participants who do not pre-register for the call can still join by dialing +1 (412) 317-5426 and asking to attend the TriNet second quarter earnings conference call. A replay of the webcast will be available on the TriNet site for approximately one year. About TriNetTriNet (NYSE: TNET) provides comprehensive HR solutions, technology, expertise, and access to world-class benefits that enable SMBs to attract and develop top-tier talent. Rooted in more than 30 years of supporting entrepreneurs and adapting to the ever-changing modern workplace, TriNet empowers SMBs to focus on what matters most—growing their business and enabling their people. For more information, visit or follow us on Facebook, LinkedIn and Instagram. Investors: Media: Alex Bauer Renee Brotherton/Josh Gross TriNet TriNet View original content to download multimedia: SOURCE TriNet Group, Inc.
Harvard Business Review
02-07-2025
- Business
- Harvard Business Review
It's Time for Your Company to Invest in AI. Here's How.
How is it that one organization can invest millions in AI capabilities, only to see a competitor achieve better results with a fraction of the spending? This question captures the strategic dilemma facing organizations today: What is the best approach for investing resources toward AI capabilities? When should companies build AI capabilities in-house versus purchasing external solutions? The answer isn't as simple as choosing one over the other. Organizations are rejecting the binary build-or-buy question in favor of more nuanced approaches. According to International Data Corporation (IDC), only 13% of IT leaders plan to build AI models from scratch, while 53% intend to start with pretrained models and augment them with enterprise data. This shift toward strategic implementation—including the growing trend of strategic partnerships—recognizes that success with AI isn't about how much you spend, but how intelligently you invest across build, buy, blend, and partner strategies. As an AI transformation advisor, I've observed firsthand how organizations navigate these decisions while simultaneously reconfiguring their workforces to accommodate new technologies. The urgency of these decisions has intensified as AI adoption accelerates across organizations of all sizes— TriNet's 2024 State of the Workplace report reveals that 88% of SMB employers and 71% of employees are currently using AI in the workplace. The organizations seeing the greatest returns have developed systematic approaches that go far beyond simple cost considerations. A Framework for Strategic Decision-Making The most successful organizations assess each AI capability through a systematic framework. The first question shouldn't be, 'Build or buy?' It should be, 'Does this capability create unique value for our customers in ways competitors can't easily replicate?' This strategic value assessment requires examining three critical dimensions: competitive differentiation potential, organizational readiness, and long-term strategic alignment. Companies that excel at this evaluation process consistently outperform those that make decisions based primarily on upfront costs or technical preferences. When to Build Organizations build when the capability represents core competitive differentiation, their data and domain knowledge create unique barriers to entry, long-term cost efficiency at scale justifies higher upfront investment, or intellectual property protection is essential to their business model. The building approach requires comprehensive planning and systematic execution. Begin with detailed capability mapping —identify all AI capabilities needed, from customer-facing applications to operational systems. For each capability requiring custom development, conduct thorough feasibility assessments examining technical requirements, talent needs, and infrastructure demands. Establish dedicated cross-functional teams combining existing internal talent with strategic hiring. These teams should include not just technical specialists but also domain experts who understand your business context and can ensure the AI solutions address real operational challenges. Plan for 12-24 month development cycles with iterative releases that allow for continuous feedback and refinement. In addition, create robust development infrastructure, including scalable computing resources, comprehensive data pipelines, and machine learning operations (MLOps) capabilities that support the entire machine learning lifecycle. This infrastructure investment often represents 30-40% of total project costs but is essential for long-term success. Finally, define clear success metrics that go beyond technical performance to include business impact measures, such as development velocity, system reliability, user adoption rates, and measurable competitive advantage creation. Establish regular review cycles to assess progress against these metrics and adjust strategies as needed. Risk management becomes particularly critical for build strategies. Develop contingency plans for talent retention challenges, technology evolution, and changing business requirements. And consider how custom-built systems will integrate with future technology acquisitions and ensure your architecture can evolve with organizational needs. JPMorgan Chase exemplifies this comprehensive approach, investing $17 billion in technology in 2024 with significant portions directed toward proprietary AI systems. Their custom-built AI platform for fraud detection analyzes transaction patterns specific to their customer base, delivering tailored risk assessments that off-the-shelf solutions couldn't match. This investment has reduced account validation rejection rates by 15-20% while dramatically lowering false positives—demonstrating how strategic building can create measurable competitive advantages. When to Buy Organizations purchase external solutions when speed-to-market is critical, specialized vendors offer superior expertise, or internal development costs exceed long-term value creation. The buy strategy works particularly well for standardized functions where competitive advantage comes from implementation excellence rather than underlying technology differentiation. Successful purchasing requires sophisticated vendor evaluation processes that examine not just current capabilities but future roadmap alignment and integration flexibility. Develop comprehensive evaluation criteria covering technical performance, security compliance, scalability potential, and vendor stability. Conduct comprehensive vendor assessments including reference checks with similar organizations, pilot testing of key functionality, and detailed analysis of total cost of ownership (i.e., licensing, implementation, training, and ongoing support costs). Pay particular attention to integration requirements and ensure purchased solutions can work seamlessly with existing systems and data flows. Negotiate contracts that provide flexibility for changing requirements while protecting against vendor lock-in, and include provisions for data portability, API access, and performance guarantees. Consider multi-vendor strategies that avoid over-dependence on single providers while creating competitive dynamics that benefit your organization. Remember to develop robust change management processes for purchased solutions. Even off-the-shelf software requires significant organizational adaptation, including user training, process modification, and cultural adjustment. Plan for 6-12 month implementation timelines that include comprehensive testing, user training, and gradual rollout phases. Last, monitor vendor performance continuously through established service level agreements and regular business reviews. Maintain awareness of competitive alternatives and be prepared to make vendor changes when performance or strategic alignment deteriorates. A prime example of this approach is Salesforce's acquisition strategy, where they've purchased specialized AI companies like Einstein Analytics and integrated these capabilities into their core platform. Rather than building every AI feature internally, Salesforce strategically acquires proven technologies and teams, accelerating their AI capabilities while focusing internal development on core CRM innovations that differentiate their platform. When to Blend The hybrid approach—building some capabilities and systems while buying others—works best when some components require customization while others can be standardized, or when organizations want to maintain control over core algorithms while leveraging external infrastructure. Blending strategies have become increasingly popular as organizations seek to balance speed, cost, and competitive differentiation. Successful blending requires sophisticated architectural planning that enables seamless integration between internal and external components. Design modular systems with well-defined interfaces that allow different components to be developed, updated, or replaced independently. Additionally, develop robust APIs and data exchange protocols that ensure smooth communication between internal systems and external solutions. Pay particular attention to data security and compliance requirements, especially when integrating cloud-based external services with internal systems containing sensitive information. Establish clear governance structures that define ownership and accountability for different system components, and create cross-functional teams responsible for integration oversight, performance monitoring, and strategic evolution of the blended solution. Plan for ongoing optimization as both internal and external components evolve. Blended solutions require continuous attention to ensure that updates to one component don't disrupt others and that the overall system maintains coherence and performance. Capital One demonstrates this approach effectively, building their own machine learning platform for credit decisioning—a core competitive function—while purchasing pre-built AI solutions for customer service automation. This hybrid approach has resulted in significant improvements in processing efficiency and customer satisfaction scores, demonstrating how strategic blending can maximize return on AI investments. When to Partner Strategic partnerships represent a fourth pathway that differs from traditional vendor relationships by providing comprehensive solutions that combine technology, expertise, and ongoing service delivery. This approach is optimal when capabilities are essential but non-differentiating, specialized providers offer superior expertise and technology, or organizations need flexible service models that adapt to changing requirements. Strategic partnerships require careful provider evaluation based on multiple criteria including technology capabilities, industry expertise, service quality, and cultural alignment. Look for partners who can provide end-to-end solutions rather than just software licenses, including implementation support, ongoing optimization, and strategic consultation. Establish detailed partnership agreements that go beyond traditional service level agreements to include strategic alignment commitments, innovation collaboration, and mutual performance incentives. These relationships should feel more like extensions of your internal team than external vendor arrangements. Develop integration strategies that allow partner solutions to work seamlessly with your internal systems while maintaining appropriate security and compliance controls. This often requires establishing dedicated communication channels, shared performance dashboards, and regular strategic review processes. Finally, create governance structures that ensure partnership relationships evolve with your organizational needs. Regular strategic reviews should assess not just operational performance but also strategic alignment, innovation collaboration, and long-term value creation. A compelling example is Domino's Pizza's strategic partnership with Microsoft Azure for their AI-powered ordering and delivery optimization platform. Rather than building these capabilities internally or simply purchasing software licenses, Domino's partnered with Microsoft to co-develop AI solutions that optimize delivery routes, predict customer preferences, and automate order processing. This partnership approach allowed Domino's to access Microsoft's advanced AI capabilities while leveraging their own deep understanding of pizza delivery logistics. In doing so, Domino's boosted AI accuracy from 75% to 95% for predicting order readiness using load-time models that factor in labor variables and order complexity. Microsoft benefits by gaining real-world insights that improve their AI services for other retail clients, while Domino's gets enterprise-level AI capabilities without the massive internal investment required to build them from scratch. The Strategic Imperative The organizations seeing the greatest returns from AI have transcended the simplistic build-or-buy debate. They've created decision frameworks that systematically evaluate each capability against strategic value creation, organizational readiness, and long-term competitive positioning. These frameworks recognize that different capabilities require different approaches, and the most successful implementations often combine multiple strategies within a coherent overall architecture. Success requires more than choosing the right approach for each capability—it demands sophisticated execution including robust project management, careful vendor selection, seamless integration planning, and continuous performance optimization. Organizations must develop internal capabilities to manage these complex implementations while making strategic decisions about where to focus limited resources for maximum competitive advantage. The strategic question isn't simply whether to build, buy, blend, or partner; it's how to create organizational capabilities that leverage all four strategies appropriately while developing the decision-making frameworks that ensure each approach delivers maximum strategic value. The companies that master this multifaceted approach will not only optimize their AI investments but create sustainable competitive advantages that justify every investment decision.
Yahoo
12-06-2025
- Business
- Yahoo
TriNet Announces Quarterly Dividend
DUBLIN, Calif., June 12, 2025 /PRNewswire/ -- TriNet (NYSE: TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses (SMBs), today announced its Board of Directors approved a dividend of $0.275 per share of the Company's common stock with a record date and ex-dividend date of July 1, 2025 and a payout date of July 28, 2025. About TriNet TriNet provides comprehensive HR solutions, technology, expertise, and access to world-class benefits that enable small and medium-sized businesses to attract and develop top-tier talent. Rooted in more than 30 years of supporting entrepreneurs and adapting to the ever-changing modern workplace, TriNet empowers SMBs to focus on what matters most—growing their business and enabling their people. For more information, visit or follow us on Facebook, LinkedIn and Instagram. Investors: Media: Alex Bauer Renee Brotherton/Josh Gross TriNet TriNet View original content to download multimedia: SOURCE TriNet Group, Inc.
