TNET - Earnings call transcript Q4 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon and welcome to the TriNet Fourth Quarter and Full-Year 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Alex Bauer. ahead. go Please

Alex Bauer

and Good quarter operator. and welcome TriNet’s M. to am Tuminelli. Thank call. afternoon My fourth Goldfield; Burton CEO, conference today Bauer, CFO, name XXXX Kelly joined you, by and our is I Alex

and the our results in or XX-Q future including uncertainties, of filings our of circumstances otherwise. predict required that update cause future. are assumptions these filings, refer like I depend and upon other discussions of beliefs, we about or include circumstances risks, our light use to most XX-K future that say price a of financial that or being affect as might or from such for current our forward-looking nature, changes and information, historical in and today discussion not to events, full-year will conditions and statements new We changes measures. encourage and Please not based XXXX with undertake may future Before forward-looking our uncertainties, would few and do that as you are and other to of law, expectations, risks, quarter or be statements are are statements financial nature, strategies, to review predictions, be actual inherently we outlook are predictive events may differ in These the Except forward-looking. and made management's statements statements to begin, today's public estimates, the may recent first the any SEC, our market statements subject more or non-GAAP in considered that words in materially by note that our on to or stock. expectations to detailed difficult results in

adjusted our income guidance today measures, diluted our non-GAAP will share. per financial include In for including net addition, discussion forward-looking

XX-Q earnings filings please I With to are which that, or financial or financial available to will For our website XX-K on website. release, over non-GAAP our the reconciliations of SEC see GAAP our filing, turn results, measures our the through Burton? Burton. call

Burton Goldfield

Thank you, Alex.

revenues financial the and fourth quarter capping was growth, and disciplined XX%. the strong remain in we performance, of by was organic total earnings We growth tremendous and the cost TriNet’s strongest XXXX off terms our for our into delivered full an year, systematically for quarter, year risk. managing exceptional converted fourth to our an and revenues our as company. year. XX% history In revenue total structure exceptional growth customers we pivotal pricing grew quarter, year-over-year In we while TriNet’s operating

As to share the more EPS we a in $X.XX. adjusted and than GAAP $X.XX our tripled net result, doubled to our income quarter, fourth per

per up share For added adjusted already to XX%, income board our $X.XX, the year, Strong our sheet earnings share up repurchase net and $X.XX, million. came came cash at $XXX our while healthy in authorization has generation XX%. in at GAAP in increased per by share the quarter balance

all-time up WSCs, TriNet capacity So as WSC XXXX year count of XX% we than approximately represents more $XXX year. XXX,XXX our of with high company. million. today, repurchase over have for finished an This

at Street These Our clients of the expand our driving is This in realized We customer verticals financial identifying non-profits, hiring approach, to customer core an sciences, prior including increasing internal SMBEs similar tech the volume with services, growing our to line comprised our evaluated in resilient our service rate. in increasing XXXX. addressable life and select moves, we and executed changing acquisition sales start the financial and verticalized performance. pandemic, professional in I total in of QX came market. base to accelerated investments platform, retention expectations. team TriNet’s customer management new technology, QX the dynamics. of strengthening the and Main services, At were quarter, our continued and inorganic Furthermore, SMBs hire market strategy, opportunities bold critical

Additionally, services remained to such to impact customers believe customer positively COVID-XX allowed innovative, it risk We the we industry, impact to able approach ratios a positively height possible our programs were benefited is time from as return a programs. plans our suppressed. in is consistently doubt construct most customers during to health creating that utilization unique as to pricing recovery there the These risk. it of pandemic. unique approach forecast retention very by programs were needed insurance and at lower designing These us credit of and customer-centric of was our We because than cost programs, our our customers of industry-leading funds in the the when our no way. the

impact about for confident to our TriNet SMB rest on and market am SMBs we continue and seeing growth businesses, I market the spend midsize the ever with Turning over how of our will American evolving have future. positioned I I in have for combined believe addressing and SMBs the foreseeable phase today the XX,XXX next the pandemic. brighter my future, than that based it TriNet we the future of has I through been. SMB the firsthand direct the XXXX I offering. the lifecycle by beyond growth is of experienced small will expanding continue to and market future on PEO/HCM of the growth am this what am the want to experience in customer passionate time

the of way inexorably changed from over where are is and The the perspective This is reshaping creates successfully want business situation to rather Reevaluation. the SMBs challenges. what as such evaluate People landscape new is beneficiaries empowered trend the and key multiple with the of work compliance Employees support regulatory a are exhibiting are complexity compliance-related take career landscape. be to competitive life. This the their TriNet adding allow and trends we agency make out during technological, willingness of in greater they feel help talent to to HR has of what more created cycle. and and greater during also are to customers of to accommodating want grown My than TriNet and requests. employment work; talent. are employment today our acquisition to the Resignation, entire no is state filing position a stock However, Great surrounding therefore the as these cultural, physically has our that challenge. serve seeing SMBs change. a Other in being period. unique taxes this them added increasing a and in remains workforce reevaluations Resignation Ultimately, aggressively their keeping retention for the strong Great The growth TriNet bringing base longer. customers customers installed pandemic. our the COVID-XX earlier competed jurisdictions. difficult includes as America talent organizations these they employers business have compete for them we This complexities relief this customer in for in This their payroll and reaffirms life experiencing the ensuring the additional they landscape strives talent such throughout Great and that

as is growing measured from cycle life of rarely large, to process simple to medium small customer's revenue. or a gross by a employee count Importantly,

I the multi-state or unique PTO growth for SMB a for and specific SMB, types has strategies hiring complexities that who experienced. changes a all SMBs. set difficulty construct over that adopt legal SMBs risk powerful other construct, to believe workforce, certain lever HCM and our examples rates of funding a component has talent continues including in particular mitigation in advantage product TriNet Moving liabilities of to growth The offerings of model. of a this assumption are be

and there’s as in materialize January, we the pandemic. and of hand, based aspirations. model solution. I that saw one Last However, their month, in growth a without Meat because Beyond on on in Tonal. but the compelling no us TriNet embody a occurred historically higher this at customers than can the success this heightened growing customers longer hand, or customers rate either valued celebrate their dynamic out have Two their seen the during scale other PEO accept a interest transitioning I alternative complexity dynamic the changes grow, from wonderful On global of

in The billion. a public alternative $X excess market capitalization in is company. of and Beyond went protein Meat an enjoys e innovative company XXXX

their grew TriNet in sharply Meat with tremendously internationally. but years, scaled and business their recent Beyond workforce expanded

a rapid six pleased the Tonal’s experience. growth. with expansion to accommodate for by As TriNet. together Having them such, we future success. nearly years user grown the and for years, the have more the were digital so global XX workforce. but customized workout last both Beyond a is their fitness Tonal company, over We grown fast-growing necessitated a Meat machine leveraging technology nothing wish left Tonal growth facilitate innovating to and and platform experience

our The wonderful native Beyond centralized us work move to many life HCM exceeding leading longer this as service with provide I providing my software we at set cycle. directly of our highly will XXX,XXX our opportunity address scale for existing we pending led of a a As base Zenefits, human Through software optionality further gratitude access, customers. management directly view to and partnership ability than related addressable to combined PEO of increase SMBs. scalable it’s consumer-like by greater Meat so our of customers desire broader evolve with HCM will leverage Tonal to these a years. clients throughout our acquisition. the can first relationships and the well optionality respect close but allowing workforce scale this and of expected configurable in to to capabilities These time, want customers to over providing completion to to in on, the acquisition to reiterate serve to Ultimately, the solution complementary suite. product opportunity Over to quarter. be ways, and of is capital cloud complete a services offer. Zenefits be serve our addition user HCM a Zenefits more offering modern the different we allow To and customers is a our the seamless, a to customer platform for the platform their interface, clear, XX,XXX measured market, TriNet our software to with an as as in

in be a as will continue earlier We provide clients cycle services address grow. and in they to their position to life

should generate will acquisition term. longer The In go needs. marketing to TriNet brand Zenefits after that near-term, present to product synergies as we prospects and near, we reach the and across prospects product of more efficient will meets the solution Zenefits the approach Importantly, and SMB align the benefit by will medium, leverage best complementary entire TAM. our go-to-market go-to-market the us the combination effectively and We this believe we funnels fit. from enable

thrive when is should throughout which higher Zenefits technology rates. will close current scale. process, leverages yield will it We go-to-market the technology the that leverage to This and strategy complementary

easy In In fact, self-directed the an term, serve and we our align we medium capabilities better throughout see implementation. a lifecycle. user they as offer interface to their customers to product opportunities use real

benefit complement For trying own broker and mind. for with benefits SMB that human created example, robust TriNet were the an to Zenefits welfare the health In PEO offers augment TriNet We solution, will believe the and long the exceptional technology become Zenefits administration with these combination the capital a platform for digital management, the and without of provider term, in opportunity and SMB leading both its strong construct. offerings. creates health solutions

of needs can move our a growth the dictates. both eventually customers. PEO from construct between the We companies side and same TriNet is cloud-based Our Zenefits meet by complexity stack. with customer as dynamic offer use vision PEO software-only the of where TriNet and diverse intend and technology HCM case to their side for and HCM includes leverage to and This the technology vision all

service do. TriNet, of TriNet successful the management with acquisition putting software no construct HCM the people is into with and combining at the a we legal software is solution already At doing With PEO scaled about matter Zenefits, everything is contemporary customer human other back an of doing, capital what product human and model. center

TriNet. to bring They spirit Zenefits and to excited are innovation company. entrepreneurial welcome our team to additional We the

XXXX phase of that, I With to next of a on We over We time. updating positioned to call guidance. look forward TriNet for pass our initiatives these the review Kelly? have Kelly growth. strategically and our will for our you financials

Kelly Tuminelli

the Burton enabled We financial earnings you, of of announce acquisition our increase a to growth, results WSE and strong count, finished highest quarter to cash and which a authorization ever fourth million. significant over both and in capped operating with flow, Zenefits extremely an $XXX our and growth Thank off TriNet’s performance. share revenue repurchase robust year year the us

sustain our our We are well-positioned and growth. strategy pursue to

the outperforming points. percentage During range quarter, increased XX% the year-over-year, X revenue end top total by of fourth our guidance

also in increase total total WSEs our within For the net XX%, guidance. base, of had quarter health the XX% for grew And WSEs. our and we an our full year, year outperformance revenues by full fourth exceeding we service as driven continued installed Professional range sales. The also quarter from year-over-year, high percentage hiring guidance participation growth by well by the the was in revenue X top-end in exceeding strong grew the revenue new in points. by as

full For fourth professional by above end professional quarter year by year, was of top the the revenue This services factors. full growth XX%, and the a services guidance. driven grew also few revenue in for

verticals. financial XX% reflected driven average for the strong growth by technology, hiring, sciences, volume services our and First, quarter year year-over-year of primarily our for the X% and life

year. for the contribution from and achieve with smallest last serve a clients. rate quarter, to customers price our minimum X% full growth efforts Second, to benefited saw cost rate the the from quarter professional services for a in growth with meaningful align Like to XX% our revenue those

our the rates are did of benefited revenue We forward. quarter and expect by accrual going near rate during our incorporated be XXXX QX Professional in minimum recovery overall recur. last the also and X% to as this services year's now versus not raise efforts to credit largely strategy end

our quarter cost was of for than the insurance our to the XX%. fourth forecasted quarter, XX.X% XX% For lower ratio range

lower for insurance our the year versus to XX.X%, insurance our due factors. XX.X% was two The largely year, to cost forecasted our ratio ratio XX%. For range was slightly cost also lower of full estimate than the

versus later the in impact from early of suppressed variant due quarter. remained procedures COVID-XX the the Omicron quarter the elective the forecasted First, the to continued Delta in emergence variant and

were While direct a these lower we spike the did by offset utilization. COVID more care testing claims costs than see moderate during and quarter, in

as compensation given workers’ strong Second, our we additional client benefited for as WSEs. revenue and from increasing wages growth, well bonuses

scale lower modestly operating for expenses, and our our the QX rate we lower our Regarding operations. of continue than at expectations to grow were than leveraging our a revenue,

per up to Now This net net share by fourth per than our $X.XX, earnings GAAP per $X.XX income income per brought to diluted full-year quarter income share brought adjusted tripling XXXX. exceeded to diluted to share more versus $X.XX, share, Fourth XX% more net full-year guidance $X.XX, quarter exceeded XXXX. year-over-year. also guidance XX% diluted year-over-year. $X.XX, by versus adjusted net $X.XX per doubling income This than share up to

us EBITDA Our million $XXX flows stronger performance of even to opportunities. balance over with and exceptional the sheet $XXX operating us full an million corporate cash in This in generated strategic operating cash and over $XXX million take left for poised advantage corporate of year. with positions adjusted

with the these continued strength of announcement consistent are our share shareholders grow our advantage sheet. business Both remain authorization we the increase and our growth Zenefits priorities priorities balance capital invest efficient to the and cash sheet. of the Our for and both in balance take to to unchanged. $XXX organic inorganic of opportunities repurchase TriNet, million We and maintain to acquisition highlight an return to

market, XX-K that is some you million million through purchase to $XXX it through of fit to within and lifecycle. of customers Zenefits, you in of up acquisition. Turning overall our the approximately walked price Burton $XXX strategic it how we the fits of million in will offering stock. will $XX the accelerate efforts product believe our you want after In of cash their our I Zenefits, our how now to financial and approximately serve throughout our filed aspects and take intent find including made

strong back smaller purchase a capital. provide capture TriNet An XXXX Zenefits. than market excited with for the marketing our larger in In opportunity cash using is for our strong funnel. have words, Given capitalize our on restructuring will Zenefits believe We're our and platform to more we the cash way, lead we of generation, otherwise. on and exciting ultimately a hand be also brand in mid-teens we on development leveraging to SMB and debt utilize other We of Zenefits can return by will portion support. opportunity invested office would

going our estimates as see the want Before XXXX outlook, recognizing we the some we for to XXXX, transaction. share into for what preliminary yet to have I contribution of close Zenefits

approximately Zenefits to this transaction soon. million closes expect contribute services year, to We revenue the $XX professional assuming

by significant we top first moderate line As thereafter. the that year accretive basis the anticipate years. for be pursue business on Zenefits, and a We Zenefits growth believe can breakeven at EBITDA we operating loss few the third

For XXXX, Zenefits be the and share reduce This transaction per may accounting per is quarter. closed refined we completed. and $X.XX $X.XX or estimate purchase to between TriNet’s by is estimate $X.XX adjusted will roughly $X.XX income after net

estimate million and $XX costs taxes to Zenefits XXXX. million we be integration Finally, before between in $XX

exclude Given per these costs nature, onetime adjusted income are from net in non-GAAP expect to costs we do relatively share. these diluted

our to XXXX of and the I related Overall, XXXX. as strong. to we Client acquisition the believe be at guidance. fully mentioned the which outlook, both economy when fundamentals record will of hiring GAAP in full-year to will saw excludes turn non-GAAP business levels continue we we from but let's somewhat Zenefits. provide the will moderate Now, XXXX, remain recovers the robust first and our I PEO just and grows, numbers quarter look

very the clients a favorable earlier, we anticipate that in largest As rates in during pandemic of graduate from returning XXXX XXXX closer PEO more significantly the to XXXX. versus grew as range are Burton mentioned attrition we anticipating increase pre-pandemic to the We model. and saw our

the continued our to expect of see IPOs. and activity we clients, to addition largest of elevated M&A levels In graduation

result, ongoing of incorporates our forecast volume a anticipation As these trends. our

given insurance ratio. optimize to expect maintain And service our as strong a enhancements. prices at a more margins continued to costs continue cost we with product normalized to We expect result, above or

will us indicated elective virus endemic. will to care resume. historical experts enter and We gradually more this routine the XXXX, insurance ultimately procedures to lead we a return ratio for health As cost believe become as a range have

diluted WSE Turning continue total be range we to growth our especially QX, revenue XX% higher year-over-year. result a revenue benefit we than averages, normal peaked. historical first quarter a estimate ratio cost strong XX% of year-over-year the as GAAP range of This utilization the of revenue first and XX% quarter. the first the our share XX% quarter of in in the $X.XX finish share insurance the to care expect will continued below XXXX In range per expect service range per quarter growth and to to be the to $X.XX income lower share to to quarter Omicron per XX% adjusted in in XXXX, cents between in net to ending in variant in the of This of diluted remain growth $X.XX be the to to This of be early to of first a net share. in health reflects per income professional base. $X.XX to to brings XX%

XXXX in year-over-year to X% X% our our with revenue forecasting revenue range professional the full-year to of grow services guidance, total our growth and we're between X% Regarding be expected X%. to

with ICR is levels. be range health projection cost trend, year in three in utilization expect work cost insurance result, and We third with pooling the patterns follow exhausted to ratios returning XX%. seasonal our historical about to and to the reflecting fourth This this higher quarters as and higher in ratio care are cost limits reset than members a ratios points expect first cost our full in closer deductibles through With of range the to October. our second as to XX% and insurance quarters deductibles, ratios favorable XXXX we

movement $X.XX translates translates of in a approximately XXXX ICR every adjusted our $X.XX As thumb, ICR into approximately in expected into point EPS. rule one

full we turn share. will range that, repurchases diluted share to trends, I we Burton? Burton Given GAAP expected income in these per to year of per $X.XX execute call net remarks. ranges assume for per of net the his share $X.XX dilution. $X.XX to diluted offset to range These be $X.XX and overall the share to anticipated adjusted income expect be per closing the in to share, With

Burton Goldfield

Thank you, Kelly.

said and TriNet’s beginning, company. strongest the was As XXXX in our at year I the pivotal for history

the PEO We I SMBs in for decade next have deep our taken we our growth. future and compelling for confident a action am to best of have in of the vision and the history differentiated America. rooted HCM position offerings TriNet with

TriNet With with TriNet, legal doing. At no what customer is Zenefits, of is software and with matter capital at other the of doing model. PEO software back the center is service Combining human into solution HCM scaled human already everything the putting solution do. a about an successful we people acquisition contemporary management and construct

exceptional spans cash the pandemic, Over earnings we have past the top line performance delivered growth, and years, three which flow.

to we drove We not will which disciplined pricing this on are and compromise profitable committed approach. our approach, our growth,

resulting strength chapter acquire to next SMB pursuit the positioned be now chapter of TAM. will opportunistically Our includes that the a part financial which for whole Zenefits, us TriNet, the of

vision history. to all Operator? strategically Although XXXX presumably future. I could the brings the to New Zenefits allowed to am normalizes, medical year welcome utilization that share quarters what their where In best more a will colleagues facing for to excited expand the that and and deliver TriNet’s in we excited Year colleagues dedication about sees TriNet. not work I further TriNet and our ahead, us us be for the thank year hard TriNet TriNet’s

Operator

the Huang with session. will question-and-answer question [Operator We Tien-Tsin now Instructions] JPMorgan. from comes Our begin first

You go ahead. may now

Tien Huang

good you the Thank all you. afternoon. and then Kelly, on –thanks we’ll One don't Good Good outlook go Thank you, have afternoon, through. benefits, guys, mind. if Burton. hey, the and, details for to on – the all one for question

hear I – assumption. with on outlook loud you volume attrition the on your the rate maybe on more higher assumption can and a clear you and little share So here? bit

the gauge today. of conservatism versus seeing that ground something to on you're actually is much how trying Just that

Kelly Tuminelli

XX% volume in we it quarter, of When the Kelly. about year attrition and I’ll get Appreciate in of baked advance. the an our Tien-Tsin. attrition it’s clearly indication is in. it. for Probably the and happens think This take question, first I forecast, all

good revenue the we're feel that as about volume our forecasts we I forecast. building have So

I So solid. it's think pretty

Tien Huang

Okay.

I figured you'd Okay. a Yeah. figure of the season, I get No, visibility with here. enrollment I bit because think little

maybe Burton, and cultural two integration the the then from between on two I differences together for SMB. TAM can standpoint. an anticipate that, Any that about I'm on Okay. meshing share? for and And thoughts really how just the hear curious companies integration you, companies the Zenefits, you the on you

Burton Goldfield

Yeah, Tien-Tsin absolutely. it's done I But, see recognizing not opportunities. yet. Absolutely, that look, several

First operated is But and be foremost, they to what I Zenefits. see opportunities and sales drive separately. new will for both CEO TriNet

the at brand to the buy is Poll. to Our the coming leads highest product that customer so near-term efficiently right both according enjoying in makes future to the provide time right to leads highest me propensity history brand those our very recognition my about opportunity to is the percent sorting delivered companies. leverage here, right in optimistic to And leads the Harris and with and the

engine and go need engine, for from to employer reporting and same risk but UI, would where customers our particularly really I plan, as payroll the gets what me a prepared take excited customer platform and forward, two are my allow having of you totally could I have need no ASO same as transfer is of the the that backend complexity, move idea capability. to same to they the using the PEO the that depending the remarks, in the journey said same think the journeys integrated back a single on TriNet, for

far taking holding their when broader so time earlier medical complex So a it's serve by you choose they as of in them customers period range for bring plans, of and etcetera. longer not longer a them own in to could as

Tien Huang

for excited learn Thanks you. Thank update, Yeah. No. to definitely more. It sounds guys. compelling, the

Burton Goldfield

Yeah.

Tien Huang

update. the Thanks for

Operator

Suisse. comes with next Our from question Credit Kevin McVeigh

now may You ahead. go

Kevin McVeigh

me heard is it And then, Burton, adjusted Zenefits, $XX And congratulations question. like any I sounded it's I my XXXX one quick and is this of the benefit so, Hey. dilution? the following know professional there revenue that on it for And kind Kelly, Is add something guidance Zenefits today? transaction if that million that on include Okay. much. what the Thanks revenue Kelly after in Does from right, services. well. so cloud-based of but as just closed? up it? Or the let be percentage would if you gets or

Kelly Tuminelli

Yeah. that I'll for take sure. Kevin,

of look Regarding excludes release, at our release published the guidance, if the Zenefits. all press press guidance you in

loss a it’s So, all roughly $X.XX as comment Zenefits, to financial my that their on be SaaS really model. revenue added would revenue, $X.XX cloud-based to Regarding

Kevin McVeigh

growing, the you And $XX to what's – million, that has been historically? growing if Kelly? Like were been that

Kelly Tuminelli

Yeah. I'm see great their TriNet. now, for comment performance clearly, know, not a to right historical on growth as going but, opportunity them we you

Kevin McVeigh

other know, And some when pricing more Yeah. layer in it potential base doubt. last you like of the give environment? you there the guess the the sense re-pricing doubt. what question pricing that on a you're side I a you on have book? you guidance? us I Without or just there able any did [ph] WSE a did Without good it upside pricing and of you that integration. XXXX thought a really like Is success in just And can was my growth of, only the sounds as thoughts seems seen you've lot been really, you've to Is well. function a of

Kelly Tuminelli

the I happy When benefit that think got think about fact price got what to and things were to smaller it's overall increases the nuanced them. we an that, did certain talked match the cost serving more that of us cost minimums plant Kevin, reprice of service about year, for of a I to also one achieve, Happy level we Kevin. customers little – is I've we able year-over-year. smaller But we to, in had fact lot to mid-single-digit frankly, put this we customers bit the and a on because the

the transfer. that, so need average a you up make little And risk the services the PEO helped and know, and all that plans really push actually sure

would kind increase, But revenue that different see there mid-single-digit anticipate mix as I'm mid-single-digit different changes have because do a I we about thinking we products particularly. other forward, pricing things looking professional range, service for on similar like of we're As increase. verticals. and in average, price And will be

Burton Goldfield

And, of pretty business, risk, proud in will of on Kevin, problem what I'm of somebody to on can to for one pays our client. ultimately a to if either don't the is year that, wanted promise disciplined you it’s approach the just pricing, team I is mind, pricing in remain the and don't did if risk thing side that that the we I this tumultuous disciplined the top a shareholders year because and maintain that, add you or you fairly

I'm particularly of on growth, sides equally proud the the proud of So, the this, of both pricing of but terms discipline. in year

Kevin McVeigh

they because that it calibrating strong, be, really you're should risk. looks Burton, as Well, really, particularly

So congratulations.

Burton Goldfield

much, Thank so you Kevin.

Operator

comes Instructions] from [Operator William question next Nicholas with Andrew Blair. Our

You go may ahead. now

Andrew Nicholas

good and Thanks afternoon.

volumes, about and The I was mouth view? mind that Is it what, under bake-off? driving wanted disruption and Are drivers marketing? – speaking the of your would word of to post-COVID the just in momentum. Burton, question sales you maybe still, volumes win how kind competitive sales on rates that? and to Just against of up going hood, new new first increased is multiyear is ask and increasing tailwind a

Burton Goldfield

I can QX. about talk look, So,

better. is brand equate the What excellent we dramatically and jumped there’s little whether that to product saw a and you use Whether productivity quarter. still We is to But, have customers message opportunity the more in that the year-over-year complexity on who to the the continued sales very brand during the that and propensity people it and there's our to that am out you PEO equate earlier equate with whether driving model. it, getting I’m buy going. us, room growth I Part questions, basis to ACV recognition and force, to you mind, the per improvement. awareness today professional a year-over-year. Andrew, in the in rep I and a is I of the has PEO it's continued, fantastic seeing in hard predict mentioned right bit to sales see fourth interest for it's is particularly where an we now, my a think force, clearly business referring improvement new pleased

Andrew Nicholas

XXXX, for there's correct? sense. for then no And Makes a to in recovery credit you. Thank first, place just maybe confirm Kelly, follow-up

Kelly Tuminelli

are Andrew. correct, You

made We a not do in credit to determination have program XXXX. a recovery

Andrew Nicholas

now more is specific XX% us endemic there long-term you're I think the is you XXXX for but of know, to then a noise it still to mentioned rate? a noise on to some and for Is, I only a here. little, kind assumptions, XX% becomes still fair to that assuming Or guess, keep of bit your Okay. heard bunch about? related think a framework for you. COVID specific ICR color mind? long-term more good in a that's kind that And somewhat you of of that’s to I the that’s with us assume us Thank XXXX some of

Burton Goldfield

to given one, risk we Yeah. XXXX, Happy of quarter, year. right it just underutilization bit I split Andrew. think periods variant about in things, to first those little answer every now into expect I'd the I’d But delayed When think the point procedures. Omicron repriced beyond single the XXXX, continued XXXX, about a elective question, I out as a and few I

continue reprice range from XX% an to will we be given so experience would look at cost in that to somewhere for the ratio. XX% insurance I that, to expect And risk. and And

Andrew Nicholas

Great, thank you.

Operator

David question from next Stifel Our Financial. comes Grossman with

now go may ahead. You

David Grossman

back and PEO of software not as built built or to just a model if now I we go another to to own service self-service – but platform going platform. Zenefits more wonder two a a we kind technology could more totally less self-service platforms, you're just to be minute, for of if one, software the

going that how – each one same forward? where technology segments you Or no about how understand going looks is – could And think on what maybe like? on serves you map stay the what you us platform if really forward, help start matter you road large the So to you as and the platform get, better so two platform the no integrate plan that evolves regardless.

Burton Goldfield

about reporting be is I the there’ll David, close engine a the interface lot we of So, user acquisition. a mentioned single single where this would before, I to a idea single single app, payroll as after like a more go. engine, But is

Zenefits PEO the we enjoy they're you great seamlessly familiar of serve all, with select and input current the a of ability of you our the legal and day, SMBs serves whichever after familiar all those to SMBs and take another at the advantage from other So group and motto, want. screens, of construct legal the can Because transition of set either model SMB. reports, end platform to wider benefits the

integrating idea the closed. I'm it and of get thought to more of talk lot So a the about it. them, I've I given obviously, happy to But first deal want

David Grossman

of made you guess then just to And I to going really about year. it. the back comment, cadence speaking a the Kelly, Got

rate the I I your on out model built cost comment it impacts where the think about that year. see there quite of else ratio. the quarter seems for But kind happens really does obviously – yet, anything that to balance of growth a a the that impacts how the but because medical decelerates a first haven't Is bit. understand the I implied growth that it and

impact there growth health in that X cost and anything care? on besides is going So dynamic or X else that

Kelly Tuminelli

throughout the We would period. WICs expect to grow

the the like about attrition platform. varies It on add back bulk up new generally but first attrition the our the we year, As and of during as a see to I comes plans little the first pattern, in build we work of quarter. think XX% we then I bit our quarter mentioned, year

think So as first year. a quarter I you us the perspective be we anticipate last like form throughout WSE I pattern, the grow would just saw to then And that lower after year. about

David Grossman

tax XXXX? if financial other Did it. mention one assuming you rate I just it, And the I question, what guess missed you’re Got sorry. for

Burton Goldfield

going different we're rate. that purposes, once acquisition evaluate we anticipate have tax I But differ the of we'll forward. rate. Zenefits etcetera, tax dramatically. at mention as to the not wouldn't closed this a again, it But we planning for state assuming very did think point similar We that about jurisdictions, would

David Grossman

Very Thank good. All right. it. the Got acquisition. you luck good and with

Burton Goldfield

Thanks, David.

Operator

question-and-answer conference. the Thank listening presentation. to our concludes for This this you well session as as

You may disconnect. now

TriNet (TNET) 15 Feb 222021 Q4 Earnings call transcript