TNET - Earnings call transcript Q1 2022

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Operator

00:05 Good afternoon, and welcome to the TriNet First Quarter 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note that this event is being recorded. 00:27 I would now like to turn the conference over to Alex Bauer, Head of Investor Relations. sir. ahead, go Please

Alex Bauer

joined on operator. the including circumstances our to as based XXXX Before or Relations. predict future of that This discussion and forward-looking. and statements changes us not update Thank and these XXXX future XX-K detailed to financial and depend you CFO, and results use call. and that recent affect discussion other risks, or by otherwise. that any market to today's our uncertainties, review the stock. second statements measures. you, our made M. to difficult our are CEO, that our other Head and a price the address our may today begin, our are to statements Goldfield; assumptions and encourage Alex in quarter for light We are non-GAAP I to from most we SEC, changes refer of of may undertake events and TriNet's filings new the or information, be financial required future except in in or statements cause of our uncertainties, XX-Q include that not I'm predictive conference quarter These results materially note XX:XX subject as events, or inherently management's Investor of you more such future, Tuminelli. historical to public that statements may expectations, filings actual first with and forward-looking by risks, Good forward-looking may being outlook, Thank our to XX:XX is Please are conditions, upon be Burton XX:XX circumstances afternoon. and expectations differ law, in current do Kelly Bauer, welcome or today we XX:XX or full-year predictions, will estimates, of for beliefs nature like joining considered or in statements nature, in strategies, would

filings will our diluted In financial XX:XX our for financial results, discussion are financial our see through including With filing, that, our non-GAAP or income SEC available will GAAP XX-K per of Burton. call on XX-Q For adjusted website. website the over non-GAAP which reconciliations our Burton? addition, today release, measures earnings I measures, share. or turn the please our to to guidance include forward-looking net XX:XX

Burton Goldfield

very We during and closed our of pleased XX:XX operating significant we capital Thank outperformed our executed quarter. performance a of shareholders. outcomes with continued Zenefits am financial the the first plan. our you, successfully initiatives and to return strategic of key Alex. strong acquisition We I both our our

commitment create performance. first to together, outperforming revenues XX% long-term financial to achievements year-over-year XX:XX Taken grew these quarter reflect all stakeholders. our value Turning guidance. our our of our for Total

Main Our life and They who customer non-profit, base, services, operate outperformance and in professional services, in financial sciences, verticals. was attributable revenue core of growing technology, to consist Street. our our strong

has yielded In grew and Additionally, to TriNet. our structure our and to quarter, strong risk. year-over-year our at approach our grew both EPS pricing to cost we $X.XX, systematically remain adjusted XX:XX customers income managing This $X.XX. revenue first per disciplined GAAP growth earnings share net XX% while in the XX%

stakeholders. the all value SMB the acquisition of Zenefits these actions elevates future to the complete and these product and results XX:XX strong quarter our for serve foundation taken sheet. a of to both were financial Zenefits acquire of Each our benefit a providing create offering community. healthy offer. generation cash leverage accompanied first strengths Our of in by long-term million tender $XXX while the to QX Our balance were We

mind my is lifecycle. business able portion impactful CEO cohorts strategic these doubt of a TriNet. There address now their are in as XX-year throughout the my of acquisition during this tenure larger that is most to We no

was Importantly, for by well grown first believe strong customers example, while the vertical over leaving portion XX:XX existing life capital to to historical challenges. These who business large our changes. sciences offer work across years, created Additionally, number as are verticals. I XX:XX with companies remains companies effective healthy hiring our driving to increasing and three the strong us a our verticals WSEs our HR as higher our cohort from last us party TriNet's in-house current again benefiting core our tender regulatory serve was the experience. the incremental the and HCM customer life QX our vertical and or quarter industries as from new attrition shareholders. quarter, sciences by that platform our core higher and various as our are hiring unabated. within as Innovation, continue But line of on XXX,XXX our once as first growth products. during I passion Notably, investments PEO capital to developments XX% am attrition. being delayed base we TriNet dynamics demonstrates industry continue as makes customers due have in cyclical from this and have in fast-growing our technology back-office over Customer new commitment by remote the attractive introduced in such the was technology trends. to pandemic we formation These deferred of saw and businesses become users allocation dynamic finished We with due our business. pleased at the supported and a XX:XX Solutions. and that earlier transitioning by historically left strong company a complexity an quarter healthy XX%. to our the trend add rates. ongoing For our attrition call, concentrated The WSE quarters acquired, well we in of industry

describe is who came QX. and exchange call cryptocurrency TriNet in a for TriNet of a dynamic represents company. customer. offering. is offering type TriNet to that we importance the the TriNet's in value PEO focus wanted of for compelling their to are to continues offering SMB They dividends benefits XX:XX our me sees their proud FTX, industry-leading in the employee FTX valued pay and such FTX the to FTX U.S.-based vertical improve benefit employee technology-focused believes experience. company unique Our prove Let One plan their employees.

user XX,XXX states. FTX compliance company, continuous drew Additionally, we again feedback leading Apple experiencing could the experience app customers positioned Attracting Store. X.X supporting from to technology requires TriNet's our app, growth an factors offer technology during capability. we satisfying while to as positive. launched like These growth. its quarter, FTX a next been am and and the wanted reviews adding for XX:XX in that the single compelling customer innovation. to rating itself this addition has particularly to wave work, early integrated experience the of first benefit a With expanding a FTX FTX, very TriNet over a enhanced has sign-on FTX additional our because and In requirement. multi-state like solution App with proud of By is PEO Finally, our user retaining and I drives administrators innovation which product has investment, remote mobile XX:XX important TriNet employees. mobile customers rapid

The will quarters around and good NXG next new the to we Insurance to the of provide very example of you about and design to with of clients. As amazing the Zsamboky continue positive. to we to Worldwide innovate the stated, the navigate an PEO positive dashboard of NXG business. XXXX, Monica increasing has performance the quickly. a need as does look usability feel user are us TriNet's you, relevant Worldwide experience Thank easy our that TriNet me Services and experience the all enhanced job tasks. we to for delight getting. expected feedback volume forward to is we been team of the Let helping short-cut HR feedback. manage overall an platform continuously and three It information our very get extremely XX:XX Monica, acts

add weathered to believe worst the anticipate outlook. positive our the this cyclical in will guidance throughout our I We verticals. dynamics. attrition customers core will customers our add the continue employees reflects year of new have we continue to that We and

first of the acquisition quarter, we Zenefits. closed our During

all artisans living collaborating and solution a with I create an for is culture. daily Jaipur impossible team TriNet people possible payroll, it's be TriNet-Zenefits excited campaign company Jaipur respect their experience TriNet in We a early, integration both resulted The future about important who mutual product reiterate to to wants HR that Living with streamline product. drive we to we term, SMB the corporate U.S.-based and customers, leveraging Jaipur Living for and for alignment am selected XX:XX along for XX% extremely share are employees TriNet-Zenefits the a Although, operations reality wish is site. whether help I its the in HR, day the teams' have their do one this HCM X positions to the management, efforts beautiful putting viewed time separate Living their TriNet-Zenefits with of performance the of employees. so and company, business. the delivered It great and is is and This India. common is XX:XX across every TriNet-Zenefits of make sourcing which its very I'm we facilitate of it PEO or and from the combining software, lives artisans proud strengths a over are create family-owned human exemplifies our colleagues Jaipur integration pleased while Jaipur X,XXX TriNet-Zenefits, through Partnering passion marketing near everything company TriNet-Zenefits the example SMBs. far, vision help create centralize visitors sources that has horizons. and can a vision in A TriNet-Zenefits. XXX reinforcing we resources. that customer the the human success first of can data. teams am to capabilities Living villages increase products, Thus the their day. as of success XX:XX all great everything from Our Jaipur far. growth. their all center to Living their thus go-to-market In the TriNet will the to benefits engagement do. quarter advisory at TriNet-Zenefits. new win using the through and services, Jaipur The integration customer rug unique

We lead across sharing are the organization. seeing

PEO, building. how focused integration on for the between In these quarters, future efforts products will the business. an current barbell. Finally, translated our we service TriNet's At a visualized new end, is our product to have for have I are In experience products. XX:XX TriNet both where net as intensive be risk be mitigates two customers. TriNet's offering term, pipeline discussing the model one we medium co-employment can

involved scale, The efforts on believe XX:XX as user offerings. that a PEO. to Ultimately, transformation we goal that, by their review at customer our intimately experience a be able I cloud-native, two Customers XX:XX financial by call between self-service a to touch, offerings. characterized us solution We opportunities and the HCM is ultimately long-term unique the a offering selecting to HR for pre-eminent performance. XX:XX native from we side year technology among our an are expand the We barbell, our to HCM their norm. in are by have I the service for space platform, of to our look providers product, depth experience would on these appropriately to other the to Kelly? will lifecycles. and the determine pass to her SMBs experience. single-cloud the all exist TriNet-Zenefits, experience product product Kelly progresses. forward is heavily better priced to rely services team PEO technology TriNet-Zenefits believe With of serve like additional We common TriNet where SMB significant filling our we integrated the throughout menu customers. deliver software of across positioning experience digital you customers' the of the of low updating API-first, On business

Kelly Tuminelli

Burton. model particularly took strong operating during performance you, The generation. sustainable resulting Thank and XX:XX business actions the cash first demonstrated TriNet the quarter power and are our of

We XX:XX corporate our we continued customers, We earnings Zenefits, as power become modified XXXX. most Dutch acquisition commitment And who the all the positioned which our million communities capital positioning auction employees, expanding and are strong are scale. executed to by using to successfully Our demonstrate the generated flow our by and in solidly to to SMBs our offering, represented quarter. harnessing advisor a our for in of stakeholders during trusted $XXX offer. performance on closed our of operate. million revenue shareholders, us returned quarter We the of buyback share in serving first $XXX tender product operating a strong clearly notably, and we cash growth achievements shareholders

attrition the WSEs customers up driven first quarter, valuable total insurance higher in also would remarks primarily from Zenefits. our as WSE Burton our excluding ending was This The revenues strong with base. our This professional billion. by large services our transactions up to WSEs as X%. QX earnings once quarter quarter XXX,XXX rate was with installed quarter count $X.X M&A XX% in an we noted by revenues. forecast outperforming on expected we first discussed leaving the outperformance As revenues X and prepared his resulted the to quarter. experienced This call, year-over-year employees, for approximately base expected during XX:XX During growth, XXX,XXX, than client first over growth total X% within increased have X% we again and sequentially. XX% the points. average benefited first We WSE first declining guidance This both and the been hiring and year-over-year by due in finished normal within outperformed for our quarter and of worksite benefiting

To HR but who Importantly, which clearly in number proof how this attrition first out uncontrollable, PEO of of this attrition. left is the grew historical left, customers larger for our first effectiveness attrition, customers large of Half the by the customer other to although, of us unusual M&A, those our during XX measured the line year. bulk bringing customers perspective is XX:XX was, total accounted put in quarter by the of half these with and our model as were this customers due definition experience, in quarter is in-house. left which

customer to the is first That during average quarter. performed recent similarly-sized we being for well feel Our said, we one leave cycle. in that this

confident. are We

to year-over-year X% by from revenues million, quarter, from customers' directly revenues. well-positioned to the grew Service future our Professional Professional to We benefit acquisition. the XX:XX $XXX Service current are benefiting Turning growth. In XX% Zenefits

the prior making attributable specifically Zenefits, from quarter. benefit some XX:XX driven revenues hiring recurring. benefits the guidance continued Credit revenue end year-over-year high Service contribution not excluding last majority excess of Service as helped as and growth by HCM driving quarter the our the the benefit and seasonal growth grew well Excluding Professional revenue volume Professional the X%. from wage exceeded remainder our in by revenue Program Insurance by The first strong growth guidance in rate, up within was was primarily our of of year's the from Recovery base. volume, XX% It healthy to installed

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

as development from Our during claims quarter. first favorable were the fourth outperformed as in ratio quarter the insurance our reserves benefited paid we cost quarter

incurred, higher forecast. in COVID-XX claims vaccination had testing unpaid levels assumed December, the higher and our In of XX:XX higher health than costs. fact, but we paid were costs Given slightly activity

quarter, operating the once with more our expected significant in as forecast. for activity did these XX:XX than quarter. reduced and the of forecasted offset were portion of in expenses, early legal variant that costs claims was attributable However, utilization workers variant XX% first WSE flat expenses a mix in under closer Omicron out overall point by the is grew largely XX:XX paid than and in services quarter. as me again, quarter population. the acquisition driven utilization. the relatively in expenditures see the year-over-year. of excess were COVID-related remote Turning consistent continued Let our This higher investment came a This and costs the growth Workers COVID-XX The was to during Zenefits fees. health likely return to to work later expenses integration-related we by white-collared abated, including comp levels banking

Adjusted net diluted point quarter we In guidance. that or $X.XX $X.XX was higher reflective compensation-related $X.XX year-over-year XX:XX and inflation adjusted original or than $X.XX out income excluded the that quarter integration income also in net approximately income transaction-related related in guidance. $X.XX quarter share labor XX% our diluted current first million of costs. and growth We share or grew original our Please first to let experienced our spite the per expenses, market than share me expense by per increased per note the acquisition Zenefits net of GAAP $XX of higher dynamics.

quarter, share. completed X.X As we an over per a $XX.XX million first where at reminder, repurchased our shares we tender offer during the price

However, the flows performance share. quarter earnings significantly Our diluted quarter, of adjusted the with operating cash in $XXX impact million it and financial approximately of acquisition. first million tender our of quarter $XXX cash completion given after and the of tender for Zenefits clearly portion EBITDA. in not cash over the offer did operating million corporate generated $XXX the timing for million corporate and our of strong per $XXX first $XXX XX:XX utilizing million We ended

quarter Zenefits and price of due the which like outlook, payments. was also executed track. year million. performance, the These reflects our accounting acquisition repurchase purchase integration was Zenefits share the second quarter recognized and integration Now XX:XX will down full will revised triggered to first be costs to March. let's of is million back-office $XXX that some highlight to of now Our on and be turn This our Zenefits through from adjusted I time-based our over in $XXX captured time. the treatment acquisition to would

initiatives. by our by guidance our core This EPS full continued of above $X.XX. good We to lifting seasonal end customers, quarter outperformance ratio and insurance due strong deferred adjusted hiring our cost first due of are care the top a offset first challenge factors. losses ICR full period These or our year. to of the cost Despite operating average our year benefits Forecasting Zenefits second share expect fully the and the the a COVID-XX continuing XX:XX of an benefit partially the control of new healthcare impact to utilization and are These remains second include routine quarter in we the by return new of potentially repurchase. to our to historical and government half variants, is expected quarter within return many cost insurance results, the ratio risk elective range. due of ICR

more as higher the expect a of we the year. view and combination second to of is of first of higher ICR half return measured, Our elective care a the full visits than half drive in claims rate seasonally utilization and primary

will of closely has and for move are XX:XX growth completed, associated revenue part $XX integration acquisition about will an million, our We both of watch million GAAP retention lift $XX this as enthusiastic Zenefits of our and million to opportunities be impact results and in between share. this purchased gross the we approximately per million which $XX costs our that the additional but anticipate projecting of of amortization year. continue $XX year. this throughout Now of to excluded plus million we We are business adjusted intangibles, will still $XX an to earnings million $XX from

tender and to revenue guidance. expect XXXX successful specific a year-over-year total X% growth XX:XX $X.XX our of year-over-year. previous receive Service Finally, be to of range of earnings XX% we as including Professional revenue XX% we guidance, be a expect a growth share second-quarter in our to Turning X% to the range to an to TriNet-Zenefits XXXX full benefit over of for year per result offer, in

healthcare growth HCM sales, costs. approximately Professional our continued XX:XX robust year-over-year or new TriNet-Zenefits double-digit above also at the price our of second hiring, Service quarter, It seasonal averages. in PEO average outlook our to customer million cloud return quarter PEO expectation increases revenue. growth and of second foresee includes Our we revenue to pre-pandemic In above reflects $XX service utilization

insurance the in an to ratio of cost expect XX.X% XX.X% we result, between second a quarter. As

impact share insurance per for range forecasting that we second to X% net the growth diluted Regarding of Our grow cloud reflecting our and range adjusted above to growth acquisition HCM the in in revenue. revenues Total to approximately be professional will second Zenefits Omicron pre-pandemic per and expect rates from XX% are continued incremental of Professional quarter underway. from revenues rates remains cost include are will and acquisition, in installed the higher activities one-time million increases. our $XX that service fee to with second offset our $X.XX service our revenues professional guidance, XX% estimate quarter expected per to income cost ICR both to $X.XX Controlling as of integration million net of our of XX:XX during the the $X.XX service Our per $X.XX service XX:XX believe GAAP between growth lower is and $XX share, from peak. TriNet-Zenefits impacts income of range be to now base we half XXXX full guidance year in the XX%. year-over-year we X% revenue share. annual in of rate diluted the total ratio share the the QX unchanged revenue XX% year to benefit from the hiring growth

earlier, we this will year mentioned the progresses. I to cautiously as continue monitor As

given remaining our point, With benefit we to net remarks. benefit turn at XX:XX year expenses the utilization. midpoint full to are $X.XX adjusted diluted health quarter transaction call in revising diluted delivered. I income that, by related our for Given tender his TriNet could year to offer, financial Burton? are full offset there share reflecting the to from the by Zenefits our in improve an part $X.XX, guidance Burton remain raising from tender uncertainty to prudent will to We closing $X.XX opportunity some be income in our strong performance. share XX:XX to guidance per integration first year the our $X.XX. outlook. the at and per GAAP Well, $X.XX the projections has the clearly We the full net the

Burton Goldfield

the product of XXXX coming After closed extremely you, benefit QX guidance metrics. execution quarter by key all acquisition for characterized on our our of the of Thank remarkable. our off was an was XXXX, We Kelly. strong all TriNet stakeholders. user diversifying the experience, $XXX our capital first demonstrating exceeded Zenefits, commitment our strong XX:XX launched form to We to We a SMBs. shareholders of innovate We tender offering in to offer. again our customers. further of and service PEO our positioning returned in new million

will future the into product and verticals, add best customers continue in growth. always for new positioning We put the us possible we market our to dynamic

about strategic I While direction will never you our I'm extremely complacent. confident our progresses. and on Operator? our financial be to as performance, year forward progress updating the I look

Operator

XX:XX question-and-answer We question the go our Huang Tien-Tsin JPMorgan. come will [Operator session. will begin And now ahead. Please with Instructions] first from today

Burton Goldfield

Tien-Tsin. Hey, XX:XX

Tien-Tsin Huang

much the was afternoon. Good just but EPS lot hoping you mind I then this I of the XX:XX change -- pieces, all layering I Hey. and to and more would you've absorbing Thanks the just of more you're there's got know Zenefits a tender going is of detail. it in. through so a moving maybe than impact, for little saw -- the some all bit? $X.XX the rate guidance --

trying the what's control items. understand in if changed So those I'm for just we two to outlook

Kelly Tuminelli

comes think as quarter down it honestly, looking Tien-Tsin. Sure, we I'll guidance year, first about that. take to Kelly. happy When of story. rest to a the and XX:XX volume outperformance, be It's the I were at

cautious being between when the account difference hiring, the in net Zenefits than other and volume increased the better difference year and we're for into rest So of while the take that's the quarter the on repurchase. share we hiring first

EPS The -- related to adjusted last a reduced by the bit of really benefited we quarter higher and $X.XX of by than EPS, was Zenefits share well, rest $X.XX repurchase volume. So to benefit little the anticipated timing given had the approximately the closing. the

Tien-Tsin Huang

expectations? XX:XX -- follow-up X% Got on but I just trying your little come was quick on we changed -- your thinking general? how the And the better is patterns, your than just in a thinking WSE account my plus what is growth with it for year in WSE plus X% it. line had heard forecasted, -- the versus the Thank for has that. so have bit growth, of you did to seasonal full And attrition and just in

Kelly Tuminelli

our line happy clients obviously Tien-Tsin, to in I'll in the Related probably the be first fourth guidance quarter it hiring. to of call that. XX:XX but was we that hadn't larger. at that to the perspective our was fourth expect level guidance difference those were take attrition volume question muting had while guidance the on from that gave first real originally with we client end foreshadowed and attrition, do the We're volume the and part of from we for Yeah, quarter. in a a when anticipated rest on growth it line, year, your was of contribute And to -- our the we of really

Tien-Tsin Huang

Thank XX:XX Got it. you, guys.

Burton Goldfield

XX:XX Thank you.

Kelly Tuminelli

XX:XX Thanks, Tien-Tsin.

Operator

from Andrew Blair. William ahead. Please XX:XX [Operator will Nicholas Instructions] Our go come with question next

Andrew Nicholas

up questions. my to that taking for Yeah. you I Thank question. follow afternoon. on wanted last Good Hi. XX:XX

It within in WSE quarter. was hiring the First, first growth. base the just like strong installed on sounds really

as to how speak it's kind health is that could it have given the hiring much front of more hiring to progressed? on of indications you taking sure slowing I'm curious the conservative as seeing but given into You're through through that just activity. year, year the visibility that just of being any your some the quarter recent market, not if as rest the second broadly, approach make market bit of a strong more conservative the something if the trends are you're kind the recently, hiring really progressed there or is and SMB

Burton Goldfield

Yeah. XX:XX

I'll to this So I great surprised Andrew. that it the opinion. question, day. honest you hiring my was QX, continues give continued in strong

above models is we've it company. built the that So the for

customers and know customer you as and they to an grow. about base, amazing We have we're selective those continue

for continue year, to answer is, So it clients seems every the an all indication, the trying no, don't yet possible. your these straight to but amazing rooting first we're we that will improbable we're in the this have that question, part support way

that's the and was which our coming productivity story. reps, into of QX. it's also XX:XX seeing increased sort I'm QX So CIE in

new net PEOs. the complexity, has in realize, of PEO regulatory sales we're to net I'm that do side on for have And can the you Zenefits, new So acquisition trying great and is technology an of I'm work-from-home equation. we've demonstrate to the what service. optimistic trying of about customer the a of exceptional share. just really you both market the model the as solution and and to the with customers we're brought persistence And The future is this sure gotten the then, exceptional our finally, side

two things these go So at TriNet, hand-in-hand.

yeah, So I'm optimistic.

Andrew Nicholas

couple last for closed XX:XX Great. then headed some That's belt little speak the yet you hesitant bit your if could And look were know the inside time wondering I a a sales so of just on follow-up, quarter, for that now like, plans kind force. you. months, a now operational the of run of to might more for TriNet there. that plans you my Zenefits to fold, in to under helpful. Having Thank expect it's of the spend bit branding how you hadn't what

is combining what to for in kind prepared the that things but figure items? or branding you remarks, medium-term the Just speak to I think vision other mentioned any logistical organization? your you of out go-to-market efforts combined could trying

Burton Goldfield

the meaning short I that XX:XX that, next But the six a into medium the time. Zenefits continue on the had very gotten producers for Zenefits, sales their teams, XX:XX weeks I me, about I for platform. is a for as top for new on these and new all ideas the both be as talk energy, about of Great. of And for customers to results them months, is a Zenefits I'm execution maniacally know customers. focus to I've XX technology each additional accelerating term, set Zenefits meet diving from deep excited new are by as best the Zenefits product to their President's the chance these getting directly the capabilities said the sales team, can long delivered as integration. but products. to it's And of who the of both we products. there have the focus, existing the Zenefits at build-out organization. the for well leader having But which about unified senior and and adding me long-term it's to reports in capabilities the in over of about Today, the at the inspired for well both It's term, Club,

Andrew Nicholas

more okay. sense. squeeze Makes just if could in I it's XX:XX one If

Burton Goldfield

Absolutely. XX:XX

Andrew Nicholas

of you XX:XX an of think you contribution speak million any said EBITDA there near-term I to if Thank last talked to on But detail million certain over you time could $XX bit more, of you 'XX? it you. frame. provide I we Just more kind breakeven in $XX just provide think Zenefits, any could contributions. on a there's can a Is you for being terms revenue. time spoke, wondering detail

Kelly Tuminelli

into Kelly. Andrew. our when XX:XX Yeah, view best took and there. I'll we rolled trying go-to-market rolled When we business to definitely forward our -- guidance It's the be grow it. But account the on guidance, take based investing happy forward our we in to

negative on $X.XX per was -- guided earnings I'm had give to to share. expect I quarter. last to higher slightly the but The impact not the going We EBITDA specifically to $X.XX. an related than you view

So it's do want that side. go-to-market bit that Hopefully, some little in to investments than helps. more we the given a

Andrew Nicholas

XX:XX Got it. Appreciate it.

Operator

[Operator come will Instructions] next ahead. And go Please Stifel. our XX:XX with David Grossman question from

David Grossman

Hi. XX:XX

Burton Goldfield

XX:XX Hey, David.

David Grossman

you. I'm I Burton. I a want Hi, a -- right. XX:XX juggling to Thank of down, make Thank things few I'm Sorry. here. things just got just sure you. couple

the the that. from from what previously talked EPS about was are So where we then you on I guidance offsets repurchase, the I an and missed $X.XX were think share to to today, benefit the where walk

I didn't repeat sorry, And everything. want catch you just So -- I'm that? just could I

Kelly Tuminelli

No kind again, David. Sure, problem. of well. to as was a Andrew's, recent ties And it question XX:XX it

when So net about we're pricing to to guided et we're but we're of I full loss benefit then, expected That's the really $X.XX share. call. the go benefit was we anticipating And the income means given will the that for level, somewhat, because and know timing would cetera. what's happen new a cautious governmental accelerate new variants, And was get potential being volume continuing in pricing to don't market. than to quarter's happened offset by be for from slightly adjusted share it quarter insurance higher our XX:XX programs, last $X.XX cost per I the to going more given the year the normal which to repurchase, frankly, which real on it then, Zenefits, said back ratio

cut a So it, it all through when of really it's really you story. -- volume is

David Grossman

Right. XX:XX

was Did in So the increase? about that do I increase net right, the about $X.XX? head my

Kelly Tuminelli

Yeah, That's exactly right. exactly XX:XX right.

David Grossman

XX:XX Okay.

So you have the above pricing it? $X.XX then is less the and Is that push of $X.XX. And that, I $X.XX volume. guess

Kelly Tuminelli

XX:XX volume. That's Yeah. And right.

David Grossman

any, just me, how -- to levels? is you your revenue, wages tied if to XX:XX right. much can Okay. All wage of remind And

Kelly Tuminelli

things rate given tied fee. levels, base lower Really, wage our is it's are revenues few Yeah. workers' a XX:XX wage-based. And workers, workers' that are definitely the less white-collar type risky, that's comp but our wage because to

towards be well, given is unemployment Our the that wage base wage-based quarter insurance although first our WSE seasonal to base. as of high tends very definitely

So cap statements. of first a of some out does given lot quarter that in the the

David Grossman

had starting than you happen -- Burton, into And visibility right. about base? you so is typically is. of more kind Is hiring insight into just momentum don't how to for shifting or month something you positively of question the have I volume that much you visibility quarter historically, something or both that visibility you have into of -- at the and it much And guess within it All get of in generally that some into XX:XX least historically, just terms growth that very into? better you. and I Burton, a quarter continuing maybe a how mean this spoke the is second

Burton Goldfield

for onboarded to hard to I on, they be come would say tremendous It TriNet. visibility, they're Obviously, me XX:XX have David. as

But year. rate Andrew with are for it's that this clients our to they all continuing believe hire. me continues said, involved hard and as We to are look,

But indicates I are said hiring are So Having my the unique very the I right looking does, not executing in we as if macroeconomic they and have it seen and of for base. say well that in prepared I seeing outcome a said remarks, that, fantastic. They overall anything more can customer that you're tremendously -- have what logical a they're conditions. great now, it's slowing, talent.

it to love love they the the and when they they competing for want good They're comes technology, So the the me, that, talent, service. for down benefits.

looking they're TriNet. to looking a provider, premier they're service if for So

David Grossman

XX:XX Great.

So questions cleanup can of couple quick maybe I -- just a here.

what I'm will competitors your report So metrics reported sure and seen of [indiscernible] ADP today tomorrow. you've kind

those So just maybe what frame kind lost clients. to of

from you prior had unit think on in gave I clients on during year kind lots can versus of can better in some frame give kind great you your of information But growth large XX exactly impact years. of any many what relative quarter, that us about that so terms sense that losing rate just the how this basis. we a

Kelly Tuminelli

Kelly. this look for total, those David, on of terms about had the clients. XX WSEs at quarter it In overall I Yeah. X% is when a impact in it, just XX:XX

David Grossman

that is And or sequential XX:XX year-over-year?

Kelly Tuminelli

XX:XX Sequential.

David Grossman

And Great. I and share missed just Okay. this the on count. last -- XX:XX is maybe just diluted one one

With given we the in just use can issued, pretty Dutch count, quarter. guidance. significant us tender clear little if that have Zenefits what maybe I'm missed and that going I shares about should you the you were this, moving a forward transpired the some sorry give said just share that And pieces we the if

Kelly Tuminelli

easy our of release. what it's count, to say in XX:XX it press back on reconciliations back We is would I the but pretty the our based into share don't guide

depending you back So what stock Because price, be can going our expectations variability, into there change. I count. guide to share diluted will will the are. absolutely current The don't it's numbers want to but on to least at change obviously

David Grossman

-- Okay. repos -- value million Is share And the issue for Zenefits. XX:XX $XXX share the was that that you the said dollar correct? or you

Kelly Tuminelli

look cash activity, that all repurchase excluding the I definitely XX:XX million little were, the that But general, to be of a want say, was shares for at shares forward. going million at an in Zenefits, of there's We net repurchased going stock. TriNet to X.X benefit $XXX around the shares, we the No, paid over $XX million ongoing of we when $XX.XX.

David Grossman

XX:XX Right.

do we think can from it. there. I it Okay, Got

Okay. Thanks very much. it. Appreciate

Burton Goldfield

David. Thanks, XX:XX

Operator

our XX:XX And time, today's Ladies to call. thank you this gentlemen, you will also today's question-and-answer at now like conclude this session, presentation. concluding disconnect. and may for We'd attending

TriNet (TNET) 26 Apr 222022 Q1 Earnings call transcript