TriNet Group, Inc.

Good afternoon and welcome to the TRINET first quarter 2022 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. Please note that this event is being recorded. I would now like to turn the conference over to Alex Bauer, head of investor relations. Please go ahead, sir.

Thank you, operator. Good afternoon. this is alex bauer head of investor relations thank you for joining us and welcome to trinit's 2022 first quarter conference call i am joined today by our ceo burton m goldfield and our cfo kelly tuminelli before we begin i would like to address our use of forward-looking statements and non-gap financial measures please note that today's discussion will include Our 2022 second 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 may 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. 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, 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. I am very pleased with both our continued strong operating performance and the outcomes of our key strategic initiatives during the first quarter. We outperformed our financial plan. We closed our acquisition of Zenefits, and we successfully executed a significant return of capital to our shareholders. Taken together, these achievements reflect our commitment to create long-term value for all of our stakeholders. Turning to our first quarter financial performance, total revenues grew 15% year-over-year, outperforming our guidance. Our outperformance in revenue was attributable to our strong and growing customer base who operate in our core verticals. They consist of technology, financial services, life sciences, professional services, nonprofit, and Main Street. Additionally, we remain disciplined in managing our cost structure while systematically pricing our customers to risk. This approach has yielded both strong revenue and earnings growth at TriNet. In the first quarter, Our GAAP EPS grew 46% year-over-year to $2.21. And our adjusted net income per share grew 54% to $2.55. Our Q1 financial results were accompanied by strong cash generation and a healthy balance sheet. We leveraged these strengths in the first quarter to both acquire Zenefits and complete a $316 million tender offer. Each of these actions were taken to create long-term value for the benefit of all of our stakeholders. Our acquisition of Zenefits elevates our product offering while providing the future foundation to serve the SMB community. We are now able to address a larger portion of these cohorts throughout their business lifecycle. There is no doubt in my mind that this is the most impactful strategic acquisition during my 14-year tenure as CEO of TriNet. Additionally, the tender offer demonstrates our effective capital allocation while benefiting our shareholders. I am pleased that Trinet finished the quarter with over 601,000 users across our PEO and HCM products. Trinet's passion and commitment to serve fast-growing, dynamic industries such as technology and life sciences makes us a party to various cyclical industry trends. But as I introduced on our Q4 call, During the first quarter, we once again saw strong hiring as well as higher WSC attrition. The incremental higher attrition was concentrated in large companies leaving due to our attractive customer base being acquired as well as transitioning from our platform to in-house HR solutions. We believe that a portion of this cohort was deferred from earlier quarters as the pandemic delayed back office changes. Importantly, our business remains healthy and strong due to the complexity created by remote work and increasing regulatory challenges. These dynamics continue unabated. Customer attrition, or the number of businesses who left us in the first quarter, was in line with our historical experience. Notably, we continue to add new customers from our core industry verticals, and our current customers are hiring at historically strong rates. These healthy developments have become an ongoing trend for our business. For example, over the last three years, we have grown WSCs in our technology vertical by 22% and our life sciences vertical by 59%. Innovation supported by capital investments are driving new company formation and the growth of existing companies within our core verticals. Our vertical focus is unique and continues to pay dividends for our company. One such company is FTX. a US-based cryptocurrency exchange who came to Trinet in Q1. FTX represents the type of dynamic, technology-focused SMB that we are proud to call a Trinet customer. Let me describe the value FTX sees in the Trinet offering. FTX believes in the importance of their employee experience. They wanted to improve their employee benefit plan offering, and Trinet's industry-leading PEO benefits offering proved compelling for their valued employees. In addition to supporting remote work, FTX is experiencing rapid growth while expanding to additional states. These factors drew FTX to TriNet because of our multi-state compliance capability. Finally, as a leading technology company, FTX wanted a single sign-on user experience for its administrators and employees. With TriNet's mobile app, we could offer a compelling integrated technology solution satisfying this important requirement. By adding customers like FTX, Trinet has positioned itself to again benefit from the next wave of innovation and investment, which drives our customer growth. Attracting and retaining customers like FTX requires continuous product innovation. I am particularly proud that our mobile app has a 4.8 rating with over 20,000 reviews in the Apple App Store. Additionally, during the first quarter, we launched an enhanced PEO user experience, and the early feedback has been very positive. Let me provide you with an example of the feedback that we are getting. Monica Zambucchi of N2G Worldwide Insurance Services stated, Trinet's enhanced platform does an amazing job helping us to manage the increasing volume of HR tasks. It is very easy to navigate, and the new dashboard acts as a shortcut to get to all the relevant information we need quickly. The overall design and experience has been extremely positive. Thank you, Monica and the N2G worldwide team for the positive feedback. Trinet will continue to innovate around usability and user experience to continuously delight our clients. As we look forward to the next three quarters of 2022, we feel very good about the expected performance of our PEO business. We will continue to add new customers in our core verticals. We anticipate that our customers will continue to add employees throughout the year, and we have weathered the worst of the cyclical attrition dynamics. I believe our guidance reflects this positive outlook. During the first quarter, we closed our acquisition of Zenefits. Although it's early, I am very pleased with the integration thus far. The teams are collaborating, and we share a common vision of putting the SMB customer at the center of everything we do. A first quarter Trinet Zenefits customer win exemplifies the mutual passion and respect we have for all SMBs. Jaipur Living is a family-owned rug company that sources its product from artisans living in over 700 villages across India. Jaipur Living wants to create beautiful eyes for their customers, their artisans who create their products, and the Jaipur employees. Jaipur Living selected Trinet Zenefits for all its U.S.-based employees to streamline and centralize all their people operations data. The Jaiper team is using HR, payroll, advisory services, performance and engagement management, and sourcing benefits through Trinet Zenefits. A great example of the capabilities delivered through the Trinet Zenefits product. Partnering with Trinet Zenefits Jaipur Living can create an HR experience that positions the company for success while reinforcing alignment with their unique corporate culture. It is important to reiterate that whether the solution is PEO or HCM software, it is impossible to separate the human from human resources. I am so proud of the 3,300 Trinet colleagues that help make the Trinet vision a reality every day. We wish Jiper Living great success as a company, and Trinet Zenefits will do everything possible to help facilitate their growth. I am extremely excited about the future of Trinet and the integration of Trinet Zenefits. This integration can be viewed along three time horizons. In the near term, we are combining go-to-market efforts and leveraging both teams' strengths to drive new business. Thus far, our day one marketing campaign has resulted in a 17% increase in daily visitors to the Trinet Zenefits site. We are seeing lead sharing across the organization. Finally, the pipeline for both products is building. In future quarters, I will be discussing how these efforts have translated to net new business. In the medium term, we are focused on integration between our two products. Trinet's current product offering can be visualized as a barbell. At one end, we have the Trinet PEO, an intensive service experience where Trinet's co-employment model mitigates risk for our customers. We are intimately involved in our customers' HR experience. We rely heavily on our team and technology to deliver the preeminent PEO experience for our customers. On the other side of the barbell, we have Trinet Zenefits, a cloud-native, low-touch, API-first, HCM software experience where customer self-service is the norm. Customers are able to determine the depth of their experience by selecting from a menu of product offerings. We believe significant opportunities exist to expand additional, appropriately priced services to the Trinet Zenefits product, ultimately filling the space between our two product offerings. I look forward to updating you on these efforts as the year progresses. The long-term goal is the digital transformation of Trinet to a single, cloud native platform characterized by a common technology user experience across HCM and PEO. Ultimately, we believe that we will be unique among all SMB service providers by offering an integrated solution at scale, better positioning us to serve SMBs throughout their business life cycles. With that, I would like to pass the call to Kelly for her review of our financial performance. Kelly?