TriNet Group, Inc.

Good day and welcome to the TRINET third quarter 2021 earnings conference call. All participants will be in a 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 a touch tone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Alex Bauer, Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon, and welcome to Trinet's 2021 Third Quarter Conference Call. Joining me today are Burton M. Goldfield, our President and CEO, and Kelly Tuminelli, our Chief Financial Officer. Our prepared remarks were pre-recorded. Burton will begin with an overview of our third quarter operating performance. Kelly will then review our financial results. We will then open up the call for the Q&A session. Before we begin, please note that today's discussion will include our 2021 fourth 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 10-K and 10-Q 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 adjusted net income per diluted share. For reconciliations of our non-GAAP financial measures to our GAAP financial results, Please see our earnings release, our 10Q filing, or our 10K filing for our third quarter and full year of 2020 reconciliations, respectively, both of which are available on our website or through the SEC website. With that, I will turn the call over to Burton for his opening remarks. Burton?

Thank you, Alex. Trinet's third quarter operating and financial performance was once again exceptionally strong. This continues a multi-quarter trend which sets us up for a solid performance in the fourth quarter. On today's call, I would like to discuss three important topics. First, I am very pleased with our Q3 financial performance to which I will provide highlights. Next, I will discuss positive factors impacting the PEO construct in general as well as TRINET specifically. The PEO construct is particularly well positioned to address systemic changes to the nature of work due to the pandemic. Additionally, ongoing legal and regulatory challenges impacting SMBs are efficiently supported using this model. And finally, I will highlight our inaugural environmental, social, and governance report released this afternoon. This report provides visibility into the central role ESG plays in Trinet's corporate culture and how we consider the needs of all of our stakeholders. During the third quarter, Trinet delivered a premier HR experience and our customers continue to grow dramatically as they have throughout the COVID-19 pandemic. While the Bureau of Labor and Statistics recorded slowing job growth relative to expectations in the third quarter, TriNet saw our customers add new hires at a rate substantially higher than our forecast. Our operating and financial performance was highlighted by strong professional service revenues growth and strong WSC volume growth. During the third quarter, we grew total revenues 18% year over year to $1.1 billion. Additionally, when we compare our 2021 third quarter total revenues growth to that of the 2019 third quarter total revenues growth, total revenues grew 18%. This comparison highlights the strong underlying performance of Trinet's business throughout the COVID-19 pandemic. Professional service revenues delivered year-over-year growth of 24%. The growth in professional service revenues was attributable to the following items. WSC volume growth, especially in our core white-collar verticals, technology, financial services, and life sciences, and strong growth in PEPM rate. The percentage increase also benefited from a recovery credit program accrual taken in Q3 of 2020, which did not repeat in Q3 2021. Kelly will address these highlights later in greater detail. Third quarter GAAP earnings per share grew 142% year over year to $1.16 per share. I am very pleased with our Q3 earnings performance. We beat our GAAP EPS guidance by 44 cents And when compared to our third quarter of 2019 GAAP EPS, a pre-pandemic quarter, we grew our earnings per share by 49%, again, demonstrating both our overall growth and our growth in profitability throughout the pandemic. During the third quarter, we grew our ending WSE count 10% year over year, to approximately 351,000 WSEs. This also represented a 3% sequential growth versus our second quarter of 2021, demonstrating momentum across our business. This TriNet all-time high ending WSE volume metric was the continuation of recent growth trends. Our customer selection process has resulted in a customer base comprised of dynamic and durable companies. This was led by the technology vertical where we continued to see strong hiring throughout the quarter. Furthermore, our Main Street vertical has finally recovered all of its lost CIE since the onset of the pandemic, indicating further normalization in the broader economy. Finally, sales contributed positively for the second straight quarter. Our new sales growth focuses on our core verticals and is adding to our already strong and amazing customer base. Let's talk for a minute about the PEO industry in general. As we look to the future, the PEO construct is well positioned for continued share growth within the SMB space. Since the onset of the COVID-19 pandemic, PEO has played an important dynamic role which has reinforced, for me, our industry's growth potential. At the onset of the pandemic, PEO's aided business owners as together we navigated the economic uncertainty. Our ability to administer HR services from the cloud enabled customers to successfully transition their workforces to fully remote. As the economy slowed, we walked our customers through workforce management, for example, helping them balance furloughs versus layoffs. As policymakers established the PPP loan program, PEOs went to work assisting customers throughout the process. In fact, according to NAPEO, the PEO Industry Association, PEO customers were 71% more likely to have received a PPP loan, which speaks to the industry's ability to help customers source and organize the information required for the PPP application. This is an excellent example of how scale and expertise from a PEO made a significant business impact at that critical moment in the COVID crisis. At a more macro level, the same recent polling by Napio found that the PEO customers are 82% more likely to have their business operations back to normal or better than before the COVID pandemic. As we look to the future and learn how to coexist with COVID-19, new operational complexities have emerged for SMBs, and we as an industry and TriNet specifically are well positioned to assist SMBs navigate these new complexities. Last month, at our second annual TriNet PeopleForce conference, one topic repeatedly discussed was the emergence of hybrid workforces. Hybrid work, defined as employees working part-time on-premise and part-time at home, is being normalized and held as an example of a permanent change in the future of work. For SMBs, this work construct introduces new operating complexities with respect to HR services, tax, and culture. Trinet is well prepared to continue to assist SMBs in the transition to this new way of work with our multi-state HR services. Our focus is to ensure that our multi-state, multi-location customers remain compliant under the different state and local regulatory regimes. This move to hybrid work is spotlighting our services as the SMB market demands more of these services. As employees shift to working from home and the office, Often these locations are not in the same city and sometimes not in the same state. Furthermore, many SMBs are using the pandemic to reconsider their headquarter locations. Each of these new trends introduce tax complexities among other challenges. Taken together, resource-constrained SMBs are facing significant obstacles to remain compliant. Additionally, when the headquarters change, medical plans, rates, and carriers may change because many medical plans are determined by the state in which your headquarters resides. TriNet helps navigate this complexity. By enabling HR access from anywhere, Trinet is working with employers to keep employees connected. Furthermore, through our robust benefits offering, employers can demonstrate their appreciation for their employees. I look forward to the evolution of the U.S. workforce and supporting them as they adapt to this new and incredibly exciting world. Turning to the topic of ESG, we released our first environmental, social, and governance report this afternoon. I have spoken in the past about our efforts to consider the interest of all our stakeholders. Through this report, our stakeholders will see the deep commitment made by TriNet to our work, customers, colleagues, the environment around us, and our shareholders. 2021 is the perfect time for our team to showcase the work we've done. We aim to provide a new level of transparency into how we operate and view our role with respect to all stakeholders in our company. While we are pleased with our progress, we know we have more work to do to reach our ideals as articulated in this report. We view our ESG report as a public report card to establish a benchmark, and we look forward to updating you on our progress against this benchmark. With that, I will now turn the call over to Kelly for a more detailed financial update. Kelly?