Technology
TriNet Announces Third Quarter 2024 Results
Published
7 hours agoon
By
DUBLIN, Calif., Oct. 25, 2024 /PRNewswire/ — TriNet Group, Inc. (NYSE: TNET), a leading provider of comprehensive human resources solutions for small and medium-size businesses, today announced financial results for the third quarter ended September 30, 2024. The third quarter highlights below include non-GAAP financial measures which are reconciled later in this release.
Third quarter highlights include:
Total revenues increased 1% to $1.2 billion as compared to the same period last year.Flat professional service revenues of $184 million as compared to the same period last year.Net income was $45 million, or $0.89 per diluted share, compared to net income of $94 million, or $1.63 per diluted share, in the same period last year.Adjusted Net Income was $59 million, or $1.17 per diluted share, compared to Adjusted Net Income of $109 million, or $1.91 per diluted share, in the same period last year.Adjusted EBITDA was $109 million, compared to Adjusted EBITDA of $172 million, in the same period last year.Average WSEs increased 7% as compared to the same period last year, to approximately 356,000 and includes approximately 20,000 PEO Platform Users.Average HRIS Users for the period was approximately 183,000.At September 30, 2024, TriNet had unrestricted cash and cash equivalents of $251 million, unrestricted investments of $195 million and total debt of $1.1 billion.
“Small businesses are navigating a challenging business climate, hiring very carefully, and dealing with healthcare cost inflation steeper than we have seen in several years,” said Mike Simonds, TriNet’s President and CEO. “TriNet is not immune from these conditions and higher healthcare costs adversely impacted our profitability in the quarter.”
Mr. Simonds continued, “Fortunately, our model allows us to quickly take action and align our pricing with healthcare cost trends. We repriced our largest cohort of healthcare fees on October 1, and we experienced strong customer retention. Following our January 1 renewal, we will have priced for the current elevated cost trends across more than two thirds of our PEO business. Our colleagues are extremely engaged, delivering strong service to our customers and record retention levels in 2024 despite the challenging environment. Nearly eight months into this role, I am excited by the opportunity in front of us to grow our business profitably in an increasingly focused, disciplined, and customer-centric fashion.”
Fourth Quarter and Full-Year 2024 Guidance
In addition to announcing our third quarter 2024 results, we provide our fourth quarter and full-year 2024 guidance. Non-GAAP financial measures are reconciled later in this release. Percentages reflect the increase or (decrease) from the prior year quarter and prior year end.
Q4 2024
Full Year 2024
Low
High
Low
High
Total Revenues
(1) %
2 %
1 %
2 %
Professional Service Revenues
(8) %
(5) %
— %
1 %
Insurance Cost Ratio
96.5 %
93.5 %
90.3 %
89.6 %
Diluted net income per share of common stock
$(0.19)
$0.31
$3.70
$4.20
Adjusted Net Income per share – diluted
$0.06
$0.57
$4.95
$5.45
Quarterly Report on Form 10-Q
We anticipate filing our Quarterly Report on Form 10-Q (“Form 10-Q”) for the nine months ended September 30, 2024 with the U.S. Securities and Exchange Commission (SEC) and making it available at http://www.trinet.com today, October 25, 2024. 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 third quarter results for 2024 and provide fourth quarter and full-year financial guidance for 2024. TriNet encourages participants to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. To pre-register, go to: https://dpregister.com/sreg/10193255/fda58bcb7d. 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.” The live webcast of the conference call can be accessed on the Investor Relations section of TriNet’s website at http://investor.trinet.com. Participants can pre-register for the webcast by going to: https://events.q4inc.com/attendee/366545303 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: 1675204.
About TriNet
TriNet provides small and medium-size businesses (SMBs) with full-service industry-specific HR solutions, providing both professional employer organization (PEO) and human resources information system (HRIS) services. TriNet offers access to human capital expertise, benefits, risk mitigation, compliance, payroll, and R&D tax credit services, all enabled by industry-leading technology. TriNet’s suite of products also includes services and software-based solutions to help streamline workflows by connecting HR, benefits, employee engagement, payroll and time & attendance. 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, please visit TriNet.com 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 fourth quarter and full-year 2024 and the underlying assumptions, the value to customers and shareholders of TriNet’s product offerings, TriNet’s financial performance and long-term growth, and the extent, length and growth impact of current economic uncertainty. 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. Examples of forward-looking statements include, among others, TriNet’s expectations regarding our ability to continue to have our value proposition resonate at required pricing levels; ability to manage our expenses diligently; and our ability to meet our forecasted retention goals. 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; 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 protect against and remediate cyber-attacks, breaches, disclosures and other data-related incidents, whether intentional or inadvertent and whether attributable to us or our service providers; our ability to comply with evolving data privacy 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 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 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 credit facility and meet our debt obligations; and the impact of concentrated ownership in our stock by Atairos and other large stockholders; and our ability to manage risks associated with our international operations. 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 http://investor.trinet.com and on the SEC website at www.sec.gov. 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 September 30,
Nine Months Ended September 30,
(in millions, except per share and Operating Metrics data)
2024
2023
% Change
2024
2023
% Change
Income Statement Data:
Total revenues
$ 1,237
$ 1,222
1
%
$ 3,727
$ 3,677
1
%
Operating income
58
116
(50)
261
382
(32)
Net income
45
94
(52)
196
308
(36)
Diluted net income per share of common stock
0.89
1.63
(45)
3.87
5.20
(26)
Non-GAAP measures (1):
Adjusted EBITDA
109
172
(37)
425
557
(24)
Adjusted Net income
59
109
(46)
247
365
(32)
Operating Metrics:
Insurance Cost Ratio
90 %
84 %
6
%
88 %
83 %
5
Average WSEs (2)
355,948
333,286
7
351,856
329,257
7
%
Total WSEs at period end (2)
356,137
335,741
6
356,137
335,741
6
Average HRIS Users (3)
183,410
210,863
(13)
189,929
219,058
(13)
(1)
Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading “Non-GAAP Financial Measures”.
(2)
Total WSEs and Average WSEs include incremental WSEs that were charged a platform user access fee and incremental additional service recipients. These were identified as a result of our ongoing effort to ensure that our billing practices best match the expectations of our customers. Please refer to Management Discussion & Analysis in our 2024 10-Q.
(in millions)
September 30,
2024
December 31,
2023
%
Change
Balance Sheet Data:
Working capital
165
115
43
%
Total assets
3,729
3,693
1
Debt
1,068
1,093
(2)
Total stockholders’ equity
129
78
65
Nine Months Ended September 30,
(in millions)
2024
2023
%
Change
Cash Flow Data:
Net cash used in operating activities
$ (276)
$ (43)
542
%
Net cash used in investing activities
(25)
(57)
(56)
Net cash used in financing activities
(217)
(523)
(59)
Non-GAAP measure (1):
Corporate Operating Cash Flows
$ 213
$ 386
(45)
(1)
Refer to Non-GAAP measures definitions and reconciliations from GAAP measures under the heading “Non-GAAP Financial Measures”.
TRINET GROUP, INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions except per share data)
2024
2023
2024
2023
Professional service revenues
$ 184
$ 185
$ 584
$ 567
Insurance service revenues
1,053
1,037
3,143
3,110
Total revenues
1,237
1,222
3,727
3,677
Insurance costs
949
874
2,772
2,594
Cost of providing services
74
74
228
231
Sales and marketing
74
75
218
214
General and administrative
46
51
140
154
Systems development and programming
17
15
52
49
Depreciation and amortization of intangible assets
19
17
56
53
Total costs and operating expenses
1,179
1,106
3,466
3,295
Operating income
58
116
261
382
Other income (expense):
Interest expense, bank fees and other
(15)
(10)
(47)
(23)
Interest income
15
18
49
57
Income before provision for income taxes
58
124
263
416
Income taxes
13
30
67
108
Net income
$ 45
$ 94
$ 196
$ 308
Other comprehensive income (loss), net of income taxes
7
(2)
4
(3)
Comprehensive income
$ 52
$ 92
$ 200
$ 305
Net income per share:
Basic
$ 0.90
$ 1.65
$ 3.91
$ 5.23
Diluted
$ 0.89
$ 1.63
$ 3.87
$ 5.20
Weighted average shares:
Basic
50
57
50
59
Diluted
50
58
51
59
TRINET GROUP, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
September 30,
December 31,
(in millions, except share and per share data)
2024
2023
ASSETS
Current assets:
Cash and cash equivalents
$ 251
$ 287
Investments
50
65
Restricted cash, cash equivalents and investments
780
1,269
Accounts receivable, net
15
18
Unbilled revenue, net
511
447
Prepaid expenses, net
64
67
Other payroll assets
883
381
Other current assets
51
44
Total current assets
2,605
2,578
Restricted cash, cash equivalents and investments, noncurrent
153
158
Investments, noncurrent
145
143
Property and equipment, net
14
17
Operating lease right-of-use asset
30
24
Goodwill
462
462
Software and other intangible assets, net
179
172
Other assets
141
139
Total assets
$ 3,729
$ 3,693
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and other current liabilities
$ 82
$ 87
Revolving credit agreement borrowings
75
109
Client deposits and other client liabilities
39
65
Accrued wages
566
515
Accrued health insurance costs, net
193
175
Accrued workers’ compensation costs, net
44
50
Payroll tax liabilities and other payroll withholdings
1,420
1,438
Operating lease liabilities
15
14
Insurance premiums and other payables
6
10
Total current liabilities
2,440
2,463
Long-term debt, noncurrent
993
984
Accrued workers’ compensation costs, noncurrent, net
107
120
Deferred taxes
18
13
Operating lease liabilities, noncurrent
30
30
Other non current liabilities
12
5
Total liabilities
3,600
3,615
Stockholders’ equity:
Preferred stock
—
—
Common stock and additional paid-in capital
1,037
976
Accumulated deficit
(910)
(896)
Accumulated other comprehensive loss
2
(2)
Total stockholders’ equity
129
78
Total liabilities & stockholders’ equity
$ 3,729
$ 3,693
TRINET GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended
September 30,
(in millions)
2024
2023
Operating activities
Net income
$ 196
$ 308
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization of intangible assets
56
53
Amortization of deferred costs
32
31
Amortization of ROU asset, lease modification, impairment, and abandonment
4
5
Deferred income taxes
3
—
Stock based compensation
53
43
Other
3
1
Changes in operating assets and liabilities:
Accounts receivable, net
2
(4)
Unbilled revenue, net
(64)
(29)
Prepaid expenses, net
3
(4)
Other assets
(44)
(44)
Other payroll assets
(502)
(104)
Accounts payable and other liabilities
(13)
9
Client deposits and other client liabilities
(27)
(33)
Accrued wages
52
21
Accrued health insurance costs, net
18
9
Accrued workers’ compensation costs, net
(19)
(9)
Payroll taxes payable and other payroll withholdings
(18)
(283)
Operating lease liabilities
(11)
(13)
Net cash used in operating activities
(276)
(43)
Investing activities
Purchases of marketable securities
(161)
(226)
Proceeds from sale and maturity of marketable securities
196
223
Acquisitions of property and equipment and software
(60)
(54)
Net cash used in investing activities
(25)
(57)
Financing activities
Repurchase of common stock
(155)
(1,109)
Proceeds from issuance of common stock
6
9
Proceeds from revolving credit agreement borrowings
—
695
Revolver repayment
—
(495)
Proceeds from issuance of 2031 Notes
—
400
Awards effectively repurchased for required employee withholding taxes
(18)
(14)
Payment of long-term financing fees and debt issuance costs
—
(9)
Repayment of revolving credit agreement borrowings
(25)
—
Dividends paid
(25)
—
Net cash used in financing activities
(217)
(523)
Net change in cash and cash equivalents, unrestricted and restricted
(518)
(623)
Cash and cash equivalents, unrestricted and restricted:
Beginning of period
1,466
1,537
End of period
$ 948
$ 914
Supplemental disclosures of cash flow information
Interest paid
$ 55
$ 21
Income taxes paid, net
$ 67
$ 89
Supplemental schedule of noncash investing and financing activities
Cash dividend declared, but not yet paid
$ 12
$ —
Payable for purchase of property and equipment
$ 2
$ 2
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
– transaction and integration costs.
• Provides period-to-period comparisons on a consistent basis and an understanding as to how our management evaluates the effectiveness of our business strategies by excluding certain non-recurring costs, which include transaction and integration costs, as well as certain non-cash charges such as depreciation and amortization, and stock-based compensation and certain impairment charges recognized based 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 period and, accordingly, facilitates the development of future projections and earnings growth prospects.
• Provides a measure, among others, used in the determination of incentive compensation for 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,
– amortization of intangible assets, net,
– non-cash interest expense,
– transaction and integration costs, and
– the income tax effect (at our effective tax rate (1) of these pre-tax adjustments.
• Provides information to our stockholders and board of directors to understand how our management evaluates our business, to monitor and evaluate our operating results, and analyze profitability of our ongoing operations and trends on a consistent basis by excluding certain non-cash charges.
Corporate Operating Cash Flows
• Net cash provided by (used in) operating activities, excluding the effects of:
– Assets associated with WSEs and TriNet Trust (accounts receivable, unbilled revenue, prepaid expenses, other payroll assets and other current assets) and
– Liabilities associated with WSEs and TriNet Trust (client deposits and other client liabilities, accrued wages, payroll tax liabilities and other payroll withholdings, accrued health insurance costs, accrued workers’ compensation costs, insurance premiums and other payables, and other current liabilities).
• Provides information that our stockholders and management can use to evaluate our cash flows from operations independent of the current assets and liabilities associated with our WSEs and TriNet Trust.
• Enhances comparisons to prior periods and, accordingly, used as a liquidity measure to manage liquidity between corporate and WSE and TriNet Trust related activities, and to help determine and plan our cash flow and capital strategies.
(1)
Non-GAAP effective tax rate is 25.6% for the third quarters and full years of 2024 and 2023, which excludes the income tax impact from stock-based compensation, changes in uncertain tax positions, and nonrecurring benefits or expenses from federal legislative changes.
(2)
Non-cash interest expense represents amortization and write-off of our debt issuance costs and loss on a terminated derivative.
Reconciliation of GAAP to Non-GAAP Measures
The table below presents a reconciliation of net income to Adjusted EBITDA:
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2024
2023
2024
2023
Net income
$ 45
$ 94
$ 196
$ 308
Provision for income taxes
13
30
67
108
Stock based compensation
15
15
53
43
Interest expense, bank fees and other
15
10
47
23
Depreciation and amortization of intangible assets
19
17
56
53
Amortization of cloud computing arrangements
2
3
6
7
Transaction and integration costs
—
3
—
15
Adjusted EBITDA
$ 109
$ 172
$ 425
$ 557
Adjusted EBITDA Margin
8.8 %
14.1 %
11.4 %
15.1 %
The table below presents a reconciliation of net income to Adjusted Net Income and Adjusted Net Income per share – diluted:
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions, except per share data)
2024
2023
2024
2023
Net income
$ 45
$ 94
$ 196
$ 308
Effective income tax rate adjustment
(2)
(2)
—
1
Stock based compensation
15
15
53
43
Amortization of intangible assets
5
5
14
16
Non-cash interest expense
1
—
2
1
Transaction and integration costs
—
3
—
15
Income tax impact of pre-tax adjustments
(5)
(6)
(18)
(19)
Adjusted Net Income
$ 59
$ 109
$ 247
$ 365
GAAP weighted average shares of common stock – diluted
50
58
51
59
Adjusted Net Income per share – diluted
$ 1.17
$ 1.91
$ 4.88
$ 6.16
The table below presents a reconciliation of net cash provided by operating activities to Corporate Operating Cash flows:
Nine Months Ended
September 30,
(in millions)
2024
2023
Net cash used in operating activities
$ (276)
$ (43)
Less: Change in WSE & TriNet Trust related other current assets
(548)
(134)
Less: Change in WSE & TriNet Trust related current liabilities
59
(295)
Net cash used in operating activities – WSE & TriNet Trust
$ (489)
$ (429)
Net cash provided by operating activities – Corporate
$ 213
$ 386
Reconciliation of GAAP to Non-GAAP Measures for the fourth quarter and full-year 2024 guidance.
Low and high percentages represent increases (decreases) from the same periods in the previous year.
The table below presents a reconciliation of net income to Adjusted Net Income and Adjusted Net Income per share – diluted:
Q4 2023
Q4 2024 Guidance
FY 2023
Year 2024 Guidance
(in millions, except per share data)
Actual
Low
High
Actual
Low
High
Net income
$67
(114) %
(77) %
$375
(50) %
(44) %
Effective income tax rate adjustment
(3)
(73)
(59)
(2)
(28)
(3)
Stock based compensation
16
(17)
(12)
59
11
13
Amortization of intangible assets
5
1
1
20
(5)
(5)
Non-cash interest expense
1
(100)
(100)
2
(20)
(20)
Transaction and integration costs
2
(100)
(100)
17
(100)
(100)
Income tax impact of pre-tax adjustments
(6)
(24)
(20)
(25)
(12)
(11)
Adjusted Net Income
$82
(96) %
(65) %
$446
(44) %
(38) %
GAAP weighted average shares of common stock – diluted
51
57
Adjusted Net Income per share – diluted
$1.60
$0.06
$0.57
$7.81
$4.95
$5.45
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SOURCE TriNet Group, Inc.
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USD 1244.6 million
Market structure
Fragmented
YoY growth 2022-2023 (%)
12.2
Regional analysis
North America, Europe, APAC, South America, and Middle East and Africa
Performing market contribution
North America at 48%
Key countries
US, China, and Japan
Key companies profiled
Actiquest Inc., Athletic Mentors, Coachbox, Coaching.com, CoachIQ, CoachNow, EDGE10 Group, Famous NYC Inc., FitSW Inc., FRONT RUSH LLC, GamePlanner Ltd., Netplay Sports Pvt Ltd, Online Sports Academy, Qridi Ltd, Sideline Sports, Siliconcoach, Simply Coach, SPORT.XYZ INC, Sporthood, Sportlyzer LLC, Sports Guru Tech India Private Ltd., SportsShare, TeamBuildr LLC , and TrainingPeaks LLC
Market Driver
Online coaching platforms in the sports industry have gained significant traction due to the expanding Internet access worldwide. With over 5.44 billion Internet users in 2023, representing 67.1% of the global population, these platforms offer unparalleled accessibility for athletes and fitness enthusiasts. Advanced technologies like AI, machine learning, and data analytics have been integrated into these platforms, enabling real-time performance monitoring and personalized training programs. The sports industry’s digital transformation is accelerating, as more coaches and athletes recognize the benefits of online platforms. Enhanced Internet connectivity supports this shift, making it easier for users to access resources, training modules, and performance analytics online. By 2030, the number of Internet users is expected to reach over 7.5 billion, fueling the growth of the global online sports coaching market.
The sports coaching market is booming with the rise of digital platforms. Sports coaching platforms provide teams and athletes with technology-driven solutions for virtual coaching sessions, video lectures, and educational materials. Performance tracking is a key feature, utilizing biometric sensors, wearable technology, and video analysis. AI and athlete data are used for sports analytics and personalized training plans. Coaches can offer one-time licensed or subscription-based models to reach a wider audience, including professional and non-professional athletes in soccer, basketball, swimming, baseball, and more. Platforms support various coaching methods such as autocratic, democratic, holistic, and athlete-centered techniques. Interactive learning, gamification, and cloud-based solutions enhance the online training experience. Wearable devices like Fitbit trackers and smartwatches are integrated for real-time monitoring and analysis.
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Market Challenges
The global online sports coaching market faces substantial competition from various alternatives, including traditional in-person coaching, free online content, self-directed training, wearable fitness devices, smart home gym equipment, local gyms, and community sports programs. These options provide athletes with diverse choices, making the market highly competitive. Free workout videos, training plans, and sports tutorials on platforms like YouTube and social media offer a cost-effective alternative. Wearable fitness devices and smart home gym equipment often include coaching features, potentially reducing the need for separate online coaching services. Local gyms and community sports programs offer personalized attention and hands-on guidance, appealing to some athletes. The increasing sophistication of AI-powered fitness apps with automated coaching erodes the perceived value of human-led online coaching. This array of alternatives puts pressure on online coaching platforms to differentiate their offerings and demonstrate clear value propositions to attract and retain users. Consequently, the availability of these substitutes will limit the growth of the global online sports coaching platforms market during the forecast period.The online sports coaching market is growing rapidly, offering various solutions for professionals and non-professionals alike. Biomechanics, training history, and performance metrics are key challenges for coaches, requiring advanced digital tools. Gamification, interactive learning, and wearable technologies enhance user experience. Cloud-based solutions offer accessibility, while sports analytics provides valuable insights. Soccer, basketball, swimming, and baseball coaches use digital coaching tools, AI, and fitness trackers like Fitbit or smartwatches with inbuilt sensors. One-time licensed and subscription-based models cater to different needs. Coaches employ autocratic, democratic, holistic, and athlete-centered methods, leveraging online training platforms. Wearable devices and cloud-based solutions enable real-time monitoring and analysis, improving overall performance.
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Segment Overview
This online sports coaching platforms market report extensively covers market segmentation by
Platform 1.1 Mobile apps1.2 Web-based platforms1.3 Hybrid platformsService Type2.1 Personal coaching2.2 Group coaching2.3 Skill development2.4 Fitness and conditioningGeography 3.1 North America3.2 Europe3.3 APAC3.4 South America3.5 Middle East and Africa
1.1 Mobile apps- Mobile coaching apps have transformed the way athletes access training and guidance, with two main types catering to diverse fitness needs. Dedicated sports coaching apps, designed specifically for sports training, provide features such as video analysis, workout plans, and progress tracking. Multi-purpose fitness apps, on the other hand, offer a holistic approach to health and wellness with a range of workout routines, nutrition advice, and lifestyle tracking tools. Both types of apps have experienced significant demand due to their convenience, personalization, and expert guidance. Dedicated apps cater to athletes seeking specialized training, while multi-purpose apps appeal to those with diverse fitness goals. With advanced features like video demonstrations, performance tracking, and real-time feedback, mobile coaching apps bridge the gap between professional instruction and self-directed practice, making them an essential tool for athletes of all levels. The future looks promising for these apps as technology continues to advance, further enhancing the sports training experience and fueling the growth of the global online sports coaching platforms market.
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Research Analysis
The Online Sports Coaching Platforms market refers to digital platforms that provide sports coaching services using technology. These platforms offer various features such as video lectures, educational materials, virtual coaching sessions, and cloud-based solutions for athletes, both professional and non-professional. The technology enables real-time feedback and analysis using artificial intelligence and fitness trackers like Fitbit and smartwatches with inbuilt sensors. The coaching methods range from autocratic, democratic, holistic, and athlete-centered techniques. Soccer, Basketball, Swimming, and other sports benefit from these platforms. One-time licensed and subscription-based models cater to diverse needs. Online training enhances accessibility and flexibility, making it an attractive alternative to traditional coaching methods.
Market Research Overview
Online sports coaching platforms are digital solutions that leverage technology to provide athletes with access to coaches, educational materials, and performance tracking tools. These platforms offer video lectures, virtual coaching sessions, and interactive learning experiences. Athletes can benefit from biometric sensors, wearable technology, and video analysis to optimize their training and performance. AI and sports analytics are integral parts of these platforms, providing personalized training plans based on athlete data, biomechanics, training history, and performance metrics. Gamification and cloud-based solutions add to the engagement and convenience of online training. Both professional and non-professional athletes can access these platforms through a one-time licensed or subscription-based model. Sports covered include soccer, basketball, swimming, baseball, and more. Coaching methods range from autocratic to democratic, holistic, and athlete-centered, with wearable devices like Fitbit trackers and smartwatches enhancing the training experience.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
PlatformMobile AppsWeb-based PlatformsHybrid PlatformsService TypePersonal CoachingGroup CoachingSkill DevelopmentFitness And ConditioningGeographyNorth AmericaEuropeAPACSouth AmericaMiddle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio
Technology
Pharos Announces $5M Seed Round To Automate Hospital Quality Reporting
Published
4 mins agoon
October 25, 2024By
SAN FRANCISCO, Oct. 25, 2024 /PRNewswire/ — Hospital quality reporting platform Pharos announced today the close of its oversubscribed $5M seed round led by Felicis with participation from General Catalyst, Moxxie and Y Combinator. Pharos will use the funds to grow its engineering team, allowing customers to report to new clinical quality registries and measure a wider range of process metrics.
Founded in 2024 by a team of clinicians and AI researchers, Pharos automates clinical quality reporting for hospitals, enabling submission to state and national quality registries without manual abstraction.
Additionally, by enabling automatic extraction of custom process metrics, Pharos helps quality teams identify the process failures that are contributing to patient harm, enabling action on issues like sepsis mortality, hospital-acquired infections, and pressure ulcers.
“Today, hospitals spend thousands of hours manually abstracting metrics from unstructured medical records to fulfill registry reporting requirements and understand patient safety events,” said Felix Brann, CEO and co-founder of Pharos. “This manual work is expensive, pulls clinical staff away from the front-line, and means that hospital teams get data long after patients are discharged. Pharos automates abstraction for quality reporting, letting hospitals report to new registries and track metrics that matter to them without adding to clinical reviewer backlogs. We give teams data in real-time, letting them take action on process gaps before they turn into patient harm.”
Brann was previously VP of Data Science at Vital. At Vital, he and Matthew Jones, CTO and co-founder, deployed live predictive AI into over 70 hospitals, integrating with every major electronic health record vendor. While trialing a sepsis model, they recognized the value AI could provide to hospital quality teams. Brann was previously VP of Quantitative Research at JP Morgan. He has published papers in major medical journals on sepsis prediction and medical record summarization using LLMs. Jones worked on the Orion Health EHR and grew M2X from inception to international expansion.
The team is also joined by Dr. Alex Clarke, Head of Research, an MD with a PhD in Artificial Intelligence from Imperial College London. He worked as a medical AI researcher at Meta and experienced the time-consuming medical abstraction process firsthand during his time as a resident doctor.
“When we met the Pharos team and learned about their deep expertise in both healthcare and AI, we knew we had to work with them,” said Ryan Isono, Partner at Felicis. “The mundane areas of healthcare administration make up nearly $1 trillion in spend annually. Pharos uses AI to automate the manual process of hospital quality reporting, which is dramatically underinvested in and can have a huge impact on not just savings but patient safety, too. The platform automates manual data abstraction from medical records, enabling hospitals to identify and resolve process failures in real time. With their experience deploying AI in 70+ hospitals and publishing relevant research, we couldn’t imagine a better team to tackle this problem.”
Numerous studies have shown that access to data and adherence to processes can have significant impacts on patient safety. The American College of Surgeons estimates that 60% of current surgical site infections are preventable with good process, and the same is true for many other patient harm events. Pharos’ mission is to help hospitals prevent this harm before it happens.
You can learn more about the company and the technology at https://pharos.health/
Media Contact
Ellie Tippett, KCPR
ellie@kcpr.com
About Pharos
Pharos automates hospital quality reporting and helps staff identify the root causes of avoidable harm. Their AI automates chart abstraction for quality registries and process adherence measures, reducing staff burden and providing data instantly, rather than weeks after discharge.
You can’t improve what you can’t measure. Pharos enables quality teams to see where and why safety issues are happening in real time, enabling them to take action on issues like sepsis mortality, hospital acquired infections and pressure ulcers.
Pharos is a mission-driven team of clinicians and AI researchers from Meta, J.P. Morgan and Orion Health. They recently raised $5m in funding from Felicis, General Catalyst, Moxxie and Y Combinator to enable hospital quality teams with AI.
About Felicis
Founded in 2006, Felicis is a venture capital firm investing in companies reinventing core markets, as well as those creating frontier technologies. Felicis focuses on early-stage investments and currently manages over $3B in capital across 9 funds. The firm is an early backer of more than 45 companies valued at $1B+. More than 100 of its portfolio companies have been acquired or gone public, including Adyen (IPO), Credit Karma (acq by Intuit), Cruise (acq by General Motors), Fitbit (IPO), Guardant Health (IPO), Meraki (acq by Cisco), Ring (acq by Amazon), and Shopify (IPO). The firm is based in Menlo Park and San Francisco in California. Learn more at felicis.com.
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SOURCE Pharos
Technology
Saudi Geological Survey Releases New Geological Data Packages to Boost Mining Investment and Exploration
Published
4 mins agoon
October 25, 2024By
RIYADH, Saudi Arabia, Oct. 25, 2024 /PRNewswire/ — The Saudi Geological Survey (SGS) today announced the release of a new batch of geological data packages, further enriching its National Geological Database (NGD) Portal. This milestone coincides with the SGS’s founding day, underscoring its commitment to driving the mining sector’s growth through reliable and comprehensive geological information.
The newly released data packages cover 30% of the Arabian Shield. These packages include surface geochemical and aerial geophysical survey data collected as part of the General Geological Survey Program. Additionally, the National Core Library (NCL) drilling samples initiative has seen spectral scanning of over 70 kilometers of core samples and the digitization of more than 4000 technical reports related to mineral deposit sites.
The NGD Portal serves as a centralized platform for accessing and utilizing geological data, empowering researchers, industry professionals, and investors to make informed decisions and drive innovation in Saudi Arabia’s mining and mineral sector.
For more information, please visit https://ngd.sgs.gov.sa/en.
Logo – https://mma.prnewswire.com/media/2540885/Saudi_Geological_Survey_Logo.jpg
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SOURCE Saudi Geological Survey
The online sports coaching platforms market to grow by USD 1.24 Billion from 2024-2028, driven by athlete involvement and AI-powered market transformation- Technavio
Pharos Announces $5M Seed Round To Automate Hospital Quality Reporting
Saudi Geological Survey Releases New Geological Data Packages to Boost Mining Investment and Exploration
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