TriNet Group, Inc.

Hello, everyone, and welcome to Trinet's fourth quarter 2024 financial results, medium-term outlook. My name's Lydia, and I'll be your operator today. After the prepared remarks, there'll be an opportunity for you to ask questions. If you'd like to participate in the Q&A, you can do so by pressing star followed by one on your telephone keypad. I'll now hand you over to Alex Bauer to begin. Please go ahead.

Thank you, Operator. Good morning. My name is Alex Bauer, Trinet's Head of Investor Relations. Thank you for joining us and welcome to Trinet's fourth quarter conference call and webcast. I'm joined today by our President and CEO, Mike Simons, and our CFO, Kelly Tuminelli. Before we begin, I would like to preview this morning's call, which will be a bit longer than usual, as we will provide a strategy update along with our earnings-related content and outlook. I will first pass the call to Mike for a few introductory comments regarding our strategy and medium term outlook, as well as our fourth quarter and full year performance. Kelly will then review our Q4 and full year financial performance in greater detail and provide our 2025 financial guidance and outlook. Mike will then return to review in greater detail our strategy and medium term outlook, including our value creation targets, leaving plenty of time for Q&A. Please note that today's discussion will include our 2025 full-year financial outlook, our medium-term 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. 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 EBITDA margin and adjusted net income BERT diluted share. For reconciliations of our non-GAAP financial measures to our GAAP financial results, please see our earnings release, 10Q filings, or our 10K filing, which are or will be available on our website or through the SEC website. With that, I will turn the call over to Mike. Mike?

Thank you, Alex, and thank you all for joining us today. It's a privilege for me to speak with you at this important time for TriNet, our customers, and for our shareholders. I'll be celebrating my first anniversary with Trinet shortly. It's been an eventful year and I've learned a great deal. While we've had to navigate a challenging environment with low customer hiring and elevated healthcare costs, it's given me the chance to see the strength of our business model firsthand. It starts with my thousands of colleagues united around a strong sense of purpose, helping small businesses attract and retain great talent gain efficiency, stay compliant, and focus on their core business. This team, enabled by a proprietary technology platform, provides the most comprehensive set of benefits and HR outsourcing services available in the market to SMBs. Having spent much of my career before Trinet working on just one part of this puzzle, employee benefits, I can tell you it is a beautiful thing to see it all come together in a seamless fashion, to see our scale put to work for the benefit of the small and mid-sized business. Our customers value our integrated approach to such a degree that even when we need to raise prices, as we have given healthcare cost trends, we still enjoy very strong retention and a high net promoter score. We have a strong, durable business. The current environment also helped highlight opportunities for us to improve as well. Some of these we addressed in 2024, including strengthening our insurance and revenue leadership, centralizing and improving our data and analytics capabilities, and removing lower value spend from our expense base. Some opportunities are bigger, and they require disciplined choices on where to invest. As you know, we spent time last year on a rigorous strategic review. I'm excited to share the outcome of that review with you later in the call and outline how we're becoming a more focused company, how we will grow revenues, expand margins, and ultimately create value for our shareholders on a 13% to 15% sustained rate. 2025 will be a year of transition. We will work in a measured way to reprice our insurance cost ratio back into our targeted range and exit 2025 in a much improved position. While we expect strong retention, the size of healthcare price increases will modestly increase attrition and dampen new sales compared to the first half of 2024. We will also exit our SaaS-only HRIS business in 2025. While the technology acquired through Zenefits remains strategically important, HRIS is a market where we don't have a clear path to winning, and it has become a distraction from our core. Our guidance for 2025 reflects the transition Trinet is going through. And our goal this morning is to convey both the importance of this transition and what we believe is an achievable outlook for substantial shareholder value creation over the coming few years. With that, I'm going to pass the call to Kelly to review our fourth quarter and full year performance, as well as 2025 guidance. Kelly?