TriNet Group, Inc.

Good afternoon and welcome to the TriMet fourth quarter and full year 2021 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the start key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press start them on your telephone keypad. To withdraw your question, please press start them too. Please note this event is being recorded. I would now like to turn the conference over to Alex Bauer. Please go ahead.

Thank you, operator. Good afternoon, and welcome to Trinet's 2021 fourth quarter conference call. My name is Alex Bauer, and I am joined today by CEO Burton M. Goldfield and our CFO, Kelly Tuminelli. Before we begin, I would like to say a few words about forward-looking statements and our use of non-GAAP financial measures. Please note that today's discussion will include our 2022 first quarter and full year financial outlook 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. Acceptance 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 more detailed discussions 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, 10-Q filings, or 10-K filing, which are available on our website or through the SEC website. With that, I will turn the call over to Burton. Burton?

Thank you, Alex. In terms of financial and operating performance, Trinet's fourth quarter was an exceptional quarter, capping off an exceptional year. 2021 was the strongest year in Trinet's history and pivotal for our company. In the fourth quarter, we delivered 16% year-over-year total revenues growth. And for the full year, we grew total revenues by 13%. we converted our strong organic revenue growth into tremendous earnings growth as we remain disciplined while managing our cost structure and systematically pricing our customers to risk. As a result, in the fourth quarter, we tripled our gap EPS to $1.03 and more than doubled our adjusted net income per share to $1.13. For the year, GAAP earnings per share came in at $5.07, up 27%, while adjusted net income per share came in at $5.64, up 27%. Strong cash generation in the quarter added to our already healthy balance sheet, and our board has increased our share repurchase authorization by $300 million, So as of today, we have repurchased capacity of more than $500 million. Trinet finished 2021 with approximately 365,000 WSEs, up 10% year over year. This WSE count represents an all time high for our company. Our growing resilient customer base comprised of SMBs in our core verticals of technology, life sciences, financial services, professional services, nonprofits, and select Main Street SMBs were critical in driving TriNet's financial performance. These clients continued to hire at an accelerated rate. This hiring is similar to the prior quarter, Q3, Furthermore, we realized increasing new sales volume and retention came in, in line with our Q4 internal expectations. At the start of the pandemic, the management team and I evaluated the changing market dynamics. We executed bold moves, including increasing investments in our verticalized customer acquisition strategy, and customer service approach, strengthening our tech platform and identifying inorganic opportunities to expand our total addressable market. Additionally, we benefited from consistently lower than forecast insurance cost ratios as the utilization of health services remained suppressed. We were able to positively impact customer retention by creating innovative, customer-centric programs such as our industry-leading recovery credit programs. These programs return funds to customers at a time when it was needed most during the height of the COVID-19 pandemic. These programs were possible because of our approach to designing the risk construct of our plans and pricing our customers to risk. We believe our approach is unique in the industry and there is no doubt that it allowed us to positively impact our customers in a very unique way. Turning to 2022 in the future, we have positioned Trinet for the next phase of growth beyond the pandemic. I want to spend the rest of my time today expanding on this by addressing what I am seeing in the market based on our direct experience with over 16,000 SMBs and the evolving customer lifecycle and how Trinet will continue to impact future growth of SMBs through our combined PEO HCM offering. I am passionate about the American small and mid-sized businesses, and I believe the future of the SMB market is brighter than it has ever been. I am confident the SMB market growth that we have experienced firsthand will continue for the foreseeable future. However, SMBs are seeing no relief from increasing regulatory complexities and the acquisition and retention of key talent remains a challenge. The landscape surrounding the state of the workforce and the way we work in America has changed inexorably during the COVID-19 pandemic. Employees are exhibiting greater agency over where they want to physically work. Employers are accommodating these requests. This trend creates added complexity, such as filing payroll taxes and ensuring HR compliance in multiple jurisdictions. Other new employment trends such as the great resignation are adding additional challenges. This is reshaping the competitive landscape for talent and therefore also the business landscape. My perspective is that rather than being the great resignation, what we are experiencing today is the great reevaluation. People feel more empowered to take stock of their situation and evaluate what they want out of life. This has created a greater willingness to make a career change. TriNet is in a unique position to help SMBs with the cultural, technological, and compliance-related support to allow our customers to be the beneficiaries of these re-evaluations as they aggressively compete for this talent. The strong employment growth in our installed customer base reaffirms that TriNet customers have successfully competed for talent and grown their organizations during this difficult period. Ultimately, TriNet strives to serve our customers throughout their entire business lifecycle. This includes bringing them in earlier and keeping them longer. Importantly, A customer's life cycle is rarely a simple process of growing from small to medium to large as measured by employee count or gross revenue. Moving to a multi-state workforce, changes in growth rates or funding strategies, and difficulty in hiring specific talent are examples of the types of complexities that SMBs experience. I believe the TriNet PEO construct has a unique advantage over all other SMB HCM product offerings for a particular set of SMBs. The co-employment legal construct, including our assumption of certain liabilities, continues to be a powerful growth and risk mitigation lever for SMBs who adopt this model. However, as customers grow, there is a heightened interest in transitioning from the PEO model because of either their scale or their global aspirations. Last month in January, Trinet saw this dynamic materialize at a higher rate than we have historically seen based on the changes in the growth and complexity that occurred during the pandemic. On one hand, I celebrate their success, but on the other hand, I can no longer accept valued customers growing out of us without a compelling alternative solution. Two wonderful customers embody this dynamic, Beyond Meat and Tonal. Beyond Meat is an innovative alternative protein company. The company went public in 2019 and enjoys a market capitalization in excess of $3 billion. Beyond Meat grew tremendously with Trinet, but in recent years, their business scaled sharply and their workforce expanded internationally. As such, Beyond Meat left Trinet. Having grown together for nearly 10 years, we wish them nothing but future success. Tonal is a fast-growing digital fitness company innovating the workout experience by leveraging technology for both the machine and the user experience. Tonal's rapid growth and expansion necessitated a more customized platform to accommodate a global workforce. We were so pleased to have grown with Tonal over the last six years and facilitate their growth. As Beyond Meat and Tonal move on, I want to reiterate my gratitude for our wonderful partnership over so many years. These relationships and a desire to serve these customers longer by providing a broader set of capabilities led directly to the pending acquisition of Zenefits, expected to close in the first quarter. Zenefits is a leading cloud-native human capital management software solution for SMBs. Through a centralized and highly scalable platform with modern consumer-like user interface, Zenefits is a complete HCM suite. The addition of this HCM software product to TriNet will allow us to address the opportunity to increase our ability to serve our addressable market, as well as providing optionality to our existing customers throughout their lifecycle. Ultimately, we view HCM software and the PEO offering as complementary with an opportunity to further leverage our scale in service of our customers. To be clear, this scale can be measured in different ways but is directly related to a combined customer base exceeding 23,000 clients and a workforce of more than 600,000 at the completion of the acquisition. Over time, we will work to evolve our platform to provide seamless, configurable access, allowing our customers greater optionality with respect to the services we offer. We will be in a position to address clients earlier in their life cycle and provide services as they continue to grow. Importantly, the Zenefits acquisition will enable us to more effectively go after the entire SMB TAM. The combination of Trinet and Zenefits should generate product and go-to-market synergies across the near, medium, and longer term. In the near term, we will leverage our complementary marketing funnels and brand reach to present the best solution that meets the prospect's needs. We believe we will benefit from this efficient go-to-market approach as we align prospects by product fit. We will leverage technology throughout the process, which should yield higher close rate. This is complementary to the current Zenefits go-to-market strategy that leverages technology and will thrive when at scale. In fact, they offer an easy-to-use user interface and a self-directed implementation. In the medium term, we see real opportunities as we align product capabilities to better serve our customers throughout their lifecycle. For example, Zenefits offers a robust digital benefit broker solution and exceptional health benefits administration platform that were both created with the SMB in mind. We believe these will augment and complement Trinet's own strong health and welfare offerings. In the long term, the combination of Trinet and Zenefits creates the opportunity for for Trinet to become the leading technology solutions provider for SMB human capital management with and without the PEO construct. Our vision for Trinet and Zenefits is to eventually offer HCM and PEO side by side with the same cloud-based technology stack. We intend to leverage technology from both companies and meet the diverse needs of all of our customers. This vision includes the use case where a dynamic Trinet customer can move between HCM software only and the PEO construct as their complexity and growth dictates. With the acquisition of Zenefits, Trinet is doing what no other HCM software solution is doing, combining a contemporary software product with an already scaled and successful PEO legal construct and service model. At Trinet, people matter is about putting human back into human capital management with a customer at the center of everything we do. We are excited to welcome the Zenefits team to Trinet. They bring additional innovation and entrepreneurial spirit to our company. We have strategically positioned Trinet for our next phase of growth. We look forward to updating you on these initiatives over time. With that, I will pass the call to Kelly for a review of our financials and our 2022 guidance. Kelly?