TriNet Group, Inc.

Good day, everyone, and welcome to the Trinet fourth quarter and full year 2018 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your touchtone phone. And to withdraw your question, please press star, then two. And please do note that today's event is being recorded. And I would now like to turn the conference over to your host, Alex Bauer of Investor Relations. Please go ahead with your presentation.

Thank you, operator. Good afternoon, everyone, and welcome to Trinet's 2018 fourth quarter conference call. Joining me today are Burton M. Goldfield, our president and CEO, and Richard Beckert, our chief financial officer. Our prepared remarks were prerecorded. Burton will begin with an overview of our fourth quarter operating and financial performance. Richard will then review our financial results in more detail. We will then open up the call for the Q&A session. Before we begin, please note that today's discussion will include our 2019 first quarter and full year guidance and other statements that are not historical in nature, are predictive in nature, or depend upon or refer to future events or conditions, such as our expectations, estimates, predictions, strategies, beliefs, or other statements that might be considered forward-looking. These forward-looking statements are based on management's current expectations and assumptions and are inherently subject to risks, uncertainties, and changes in circumstances that are difficult to predict and that may cause actual results to differ materially from statements being made today or in the future. Except as may be required by law, we do not undertake to update any of these statements in light of new information, future events, or otherwise. We encourage you to review our most recent public filings with the SEC, including our 10K and 10Q filings, for a more detailed discussion of the risks, uncertainties, and changes in circumstances that may affect our future results or the market price of our stock. In addition, our discussion today will include non-GAAP financial measures, including our forward-looking guidance for non-GAAP net service revenues, adjusted EBITDA, adjusted EBITDA margin, and adjusted net income. For reconciliations of our non-GAAP financial measures to our GAAP financial results, please see our earnings release or our 10-K filing for our fourth quarter and full year of 2018, respectively, both of which are available on our website or through the SEC website. A reconciliation of our non-GAAP forward-looking guidance to the most directly comparable GAAP measures is also available on our website. With that, I will turn the call over to Burton for his opening remarks.

Thank you, Alex. Our very strong 2018 financial results highlighted our commitment to provide our clients with extraordinary human resources solutions. By executing our core strategy of targeting the right clients with the right vertical products at the right price, we delivered our value proposition and strong financial performance to our shareholders. In the fourth quarter, we grew GAAP total revenues 8% year-over-year to $917 million, and we grew our net service revenues by 10% year-over-year to $225 million. Professional service revenues grew 6% year-over-year to $124 million. Professional service revenues in the quarter continued to benefit from our shift in client mix towards our white-collar verticals and customers within Main Street that value our comprehensive solution. We also grew insurance service revenues by 8% year-over-year to $793 million, while net insurance service revenues grew 16% year over year to $101 million for the quarter. Net insurance service revenues in the quarter benefited from improved workers' compensation performance. As a reminder, a year ago, GAAP net income for the fourth quarter received a 56 cent per share benefit due to the Tax Cuts and Jobs Act of 2017. As a result, Our Q4 GAAP earnings per share contracted by 57% year-over-year to 40 cents per share, while our Q4 adjusted net income per share increased 28% to 59 cents per share. For 2018, we grew GAAP total revenues 7% year-over-year to $3.5 billion, and we grew net service revenues 10% year over year to $893 million. We increased gap earnings per share by 6% to $2.65 per share and we grew adjusted net income per share by 52% to $3.02 per share. 2018 was not only a year of strong financial results, it was a year where we strategically invested in our business to drive growth over the long term. Specifically, we completed the migration of our installed base to one platform. We launched our new brand and marketing campaign that celebrates our nation's small and mid-sized businesses. We remediated our final material weakness. We continued our efforts to further improve our processes and client experience, and we launched Trinet Professional Services, our sixth vertical product. Our deliberate effort to structure our products and services to our core verticals drove our strong 2018 financial performance. As a result, we experienced higher participation rates in our health programs and improved workers' compensation performance, which positively impacted Net Insurance Services revenue. We are also pleased to have finished the quarter with approximately 326,000 worksite employees, flat year-over-year and up 2% sequentially. Throughout 2018, we experienced elevated attrition due to our planned platform migration, which is now complete. This anticipated attrition masked the strong hiring within our install base and our improvement in new sales. We are deliberate in the service of our six verticals. Technology, Financial Services, Professional Services, Life Sciences, Nonprofits, and Main Street. TriNet is addressing their distinct needs and challenges. We accomplish this by leveraging our unique technology, service models, and price points. Our focus is on pursuing dynamic, small and mid-sized companies The backbone of American businesses and innovation. We pursue these businesses with our comprehensive HR products and solutions that include the following common capabilities. HR expertise, benefit options, payroll services, risk mitigation, and our technology platforms. Trinet's comprehensive HR solution is a differentiator for our SMB clients versus their competition as they seek to secure and retain employees in a historically tight labor market. Our vertical strategy positioned us to benefit from higher U.S. labor market participation rates and historically low unemployment rates in 2018. This employment dynamic positively impacted us as we realized strong hiring across our installed base. In addition to the strong hiring within our installed base, we made progress with new sales in 2018. 2018 was our second year compensating our sales team on ACV, or annual contract value. We continue to benefit from this compensation structure as our salespeople sell the value of our services. This resulted in strong professional service revenue growth. In January, we refreshed our mobile app to address the needs of an increasingly mobile workforce. This provides our clients and their employees with more in-depth real-time information on pay, paycheck history, benefits, time off requests, and company directory. We also added an in-app messaging feature that allows employees to communicate and collaborate instantly on one unified platform. The new mobile update will help our clients handle HR, and payroll on the go so they can keep the vital tasks of their businesses moving forward without being tied to a desk. Our process improvement initiative includes further automating and improving operations and procedures. This strengthens our ability to keep our customers at the center of everything we do. We believe a key to our long-term success will be leveraging our scale through automation and improved processes. As we become more efficient, our customers will benefit from an improved experience as our products and services are delivered more consistently. Our shareholders will benefit from our lower cost to serve and ultimately higher client retention rates. Finally, I am pleased to announce that our Board of Directors authorized an additional $300 million for our Share Repurchase Program. The expansion of our Share Repurchase Program leverages a core strength of our business, strong and consistent cash generation. Now, let me turn the call over to Richard for a review of our financials. Richard?