TNET - Earnings call transcript Q2 2024

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Operator

Good day, and welcome to the TriNet Second Quarter 2024 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded.

I would now like to turn the conference over to Alex Bauer, Investor Relations. Please go ahead.

Alex Bauer

operator. you, Thank thank Second and joining for us Good Earnings you Conference XXXX Quarter Call. TriNet's morning, for I'm Alex Bauer, Relations. and I am TriNet's Head of Investor

I'm President our our joined Mike today and Simonds; and CFO, CEO, Tuminelli. Kelly by

I future begin, that upon and events outlook will and year in statements include measures. historical of financial are XXXX Xrd in we or address nature, our refer quarter depend estimates, our would Before or non-GAAP today's to that financial use considered note other conditions Please that strategies, are our statements not expectations, or forward-looking nature to predictive as might discussion full such beliefs like or forward-looking. predictions, other be statements and

are in circumstances These and cause risks, required forward-looking statements any do Except are based made that actual management's events being materially future. are and and as subject the or statements statements changes otherwise. these results of inherently undertake be uncertainties on may new not that light in in current to today information, from of assumptions future we difficult law, to or predict to differ may by to and expectations update

our recent for the you results stock. the our encourage review may our SEC, XX-Q that and our affect changes filings uncertainties market of a future risks, or and most to the with including more We detailed of price XX-K filings public discussion in circumstances

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

or on the XX-Q filings which XX-K results, measures SEC our financial release, website. see our through are our please our filing, of financial earnings our For website to non-GAAP all available reconciliations or GAAP

Mike. the I call over With turn will Mike? to that,

Michael Simonds

results. and strong quarter our us. thank everyone, factors Thank a a share to am I that you, contributing with number to second TriNet positive delivered joining of pleased for Alex, you,

and as regarding some This thoughts operating additional performance morning, well and TriNet on months the ahead into now of my financial us growth role. as provide X I'll share opportunity observations our my

the SMBs high-interest for productivity. high and and very to markets new talent avoiding context, turnover Starting inflation. challenged. and with retain small so to They're businesses navigate market doing cost care working but cautiously. remains costs hiring midsized hard the They're health the environment people, associated drive rates, they're their softening persistent seeking to existing end continue with

us In ever that my short, their matter. clearly they're to do of helping quarter topic SMBs, I progress our put while at and from do, of at with who the create pause of goal to signaling than on of their our efforts, made intermediate the exceptional new the gains center from for the everything value volume sales. while TriNet delivering Thanks And shareholders. people, against attrition people term we thousands customers recognize they for exceeding more the want colleagues the performance strong lost our in

our bundled Our to of customer funnel proposition. savings and derived proposition, high-quality approach. marketing value campaigns compelling outstanding team benefits real targeted from strengthened top includes which highlighting our value service, our through A cost access the

with roughly of half sales the leads those year with sales good in XXXX. Our a team pursued through first up and quarter delivered and XX% line strong prior a our

we sizable strength continue and our our in teams. the of our Given opportunity offering, further market field to invest

industry. grow in increasingly And productivity, to in very team, before season. selling more investing into our year-over-year approaching with best we XX% second finished heading the reps develop we the grow XX% and further distribution to quarter growth retain and their team looking are year-over-year, our the We we as expect the sales fall

high-quality from stay measure is performance benefiting to measure, access our longer. performing exceptionally Customers their services model. our is team, exceptional and service with to whether for customers well. our our team this are risk priced our us And benefits proprietary For ultimate technology, the on

our year performance. second improve, full quarter, rate XXXX continued to closer nudging the to our retention XXXX record forecasted During

I'm not that our comfortable declaring yet performance. we retention will record repeat XXXX

However, this position. in find improved I am ourselves we pleased that

retention the quarter in months positive slower now One hiring, XXXX, albeit note a X is hiring XXXX. customer customer offset slower modest have far at within since so net base. CIE of than helping data the first Strong encouraging hire, yet that continued is Customers point we to booked I'd rates forecasted. consecutive in

we remained aligned In and pricing risk. our across our this environment, value with consistent provide with has offering the customers'

in to expenses We a reduction find ways in processes the to resulting efficiently, more also our quarter. continue in improve operate operating and

great together, good solid business. a quarter again well-managed and that once demonstrated very discipline expenses is and pricing strong cash-generative retention, sales, taken So created another TriNet

we half, given shareholders. our frankly, our long-term our performance $XX very We operating $XXX about significant believe repurchase returning growth value, strong first TriNet's out and stock dividends million to to through and million of the nearly July, at Through optimistic $XXX future. used TriNet's in million am cash in nearly prospects. its I represents long-term current pay And price capital stock

the business business its difficult resiliency. is demonstrating moment, SMB at the is While environment our

and brand real community I'm have is front we X the of clear SMB and a have amongst business but I a opportunity verticals very TriNet's now and the we We've target. me to months to growth exceptional, learn, it's premium model us. attractive very built into still plenty that my role, in

fosters model with our service customer base. loyalty Our

efficiency Our quality own us finally, value innovate and the create risk-taking platform And to customer customers somewhat experience gains. approach shareholders. to And therefore, our the and to own for allows to control and we technology. insurance further nascent and still runway

the do our in after done, And approach work be on of accelerated pursuit We while there's still best of focus one innovation be areas work to our to the the us profitable to and continue areas identifying for growth. XQ, certainly, will I mentioned benefits. to strategy

and on coming for for and own. market inflation should is capabilities, us portfolio this benefits solve tailwind elevated health care their a to not long-run care SMBs and of that [ data is in growing health opportunity. reinforcing are here exist broaden XXXX What is care our believe the our our cost to help complexity with we to experiencing Real innovate health SMBs These capture try channels business. ] for to and opportunities improve our the analytic

this On the our here. in Both leadership continue team strengthen to Tim Officer. and of out part TriNet, additions point, compelling growth and because long-term Head our well Treadway, with round prospects to Services; people-focused as Shea of recent Chief large the we Insurance Revenue as Nimmer, were culture our attracted of new

With for help and associated comes drive manage we and and having take experience strong the largest culture Tim, have better the risk both to a deep the help insurance led Tim leader can globally TriNet who of with commercial I innovation our us offering space. health X to growth. firms believe we in underwriting functions foster a knowledge pricing, with

including a targeting scale knowledge Shea are brings multiple digital broadly intermediated at towards insurance take another deepening experience multichannel and channels, distribution knowledge SMB direct to we SMB and benefits the with significant across of products Shea, our for and step efficiently critical TriNet of and which employee deep extensive market. transformation, distribution brokerage. With areas

fostering goals. inclusive for are strengthening our the motivated Tim a on and an for vibrant leadership prop, business us intently and culture and focused shareholders Shea our company value benefit growing and achieve and of our necessary customers team talented joining to

about of business our with growth I'm summary, and strong pleased excited opportunity resiliency and quarter the in the so a I'm So ahead.

on quarter, over more turn For now the I Kelly? call to the will Kelly.

Kelly Tuminelli

Mike. you, Thank

roughly good Second business. range. and quarter of end our solid our Sales year. at guidance were reflect delivered results across revenue well and execution prior with in our performed We high the line

Workers' in remain with performance total. our favorable Our insurance performance and industry. elevated and our QX broader in was in costs was exceeded year's trends expectations. expectations within experience consistent the last over Health in with forecast comp line

strong, our workers' ability and remains comp price, manage expenses we our across resources prudently business. to year-over-year including And Our the reserve program managed management declined as claims. our

all strong flows, a and our share shareholders as earnings well of significant and amount Taken as we repurchases dividend. to generated we through returned good capital together, cash

financial go XXX,XXX employees, up with finished end the by guidance, second up total in and approximately little deeper our top year-over-year with X% on approximately revenues let's second of X%, XXX,XXX X% line improved year-over-year. WSEs, our and In We hiring. the customer a Now quarter grew quarter, modest co-employed worksite quarter the retention performance. supported

forecast is our our resonating the proposition our our investments retention We with sales customer as quarter, funnel. to growing in sales more outperformed our maturing remain of our service capture value solid investing performance. off. capacity And in In new sales reps and to pay continue to committed force

grew X% our our year-over-year and from benefited drive WSEs. overall our X%, we hiring Professional growth grew revenue X X% point growth high in Insurance which largely helped modest rate improvement. guidance revenue by volume Finally, by CIE service or co-employed exceeding driven year-over-year. customer

our annual participation slightly growth Insurance partially care higher cost and by rate inflation. inflationary again with and cost lower health were were Insurance health quarter, Consistent grew pharmacy care costs first increases. reflected offset X% year-over-year. rates

However, performance. these partially offset by strong trends comp health workers' were cost

and on At trends from claims this across apparent lags inflation, higher remain The further Healthcare health industry. May. are not of cyber-attack and the we point, Change April any cost March normalized do utilization uncertainty the as do expect have stemming however, across insurance and broader

positive Related of period million. to development prior our workers' $XX results include compensation, approximately

years lessen have business overall the TriNet's to mix, this compensation reserves I As workers' declined given the expect over time. net would over

to XX%, in insurance with broader second this together, guidance. all ratio line Taken quarter cost our

expenses. operating to turn let's Now

exercise continue the to X% discipline decline. year-over-year expense in a We in resulting quarter,

We the investments making contribute operating growth are in and quarter. our in proactively automation. to and second cash back on targeted our Interest continued managing our office results positively our expenses, while to investments reducing income

generated other a providing The income. our income $X offset benefit million interest expense, to net

per exceeding $X.XX end $X.XX together, diluted top So in guidance income reported and taken we of ranges. share our diluted share adjusted per both net earnings of GAAP the all

during to XXXX dividends $XXX flows. generated paying repurchasing adjusted another half in And first so and the had support shares operating strong million investors of of over million cash of our by corporate returned quarter this X.X In through to business $XX generation delivered million $XXX half, of we we capital million $XXX first July. far million the cash We quarter, allocation. We and through the EBITDA. year

Our capital remain return priorities unchanged.

for we cash As we our flows fund continue the year, our to and throughout using investing our repurchases. dividends deliver in will and share to cash growth generate to additional shareholders business by value

and Now quarter outlook. let's full-year turn our to third

X% expect be we to total to range. quarter, to service third the in that up be professional same revenues flat and For revenues

strong guidance our in expectation underlying seasonal our continued factors. in CIE a new sales, growth to for limited assumptions of modest Our include due support customer from retention and revenue contribution

insurance the for third our Turning cost ratio to quarter.

We XX% of are forecasting to XX%. ICR an

the per diluted income to net be and of forecasting net range we're the adjusted of $X.XX income diluted $X share GAAP Finally, range share be per to to $X.XX. to $X.XX in in

Turning the to full year.

guidance unchanged, that continue falls within X%, of year full remind up the guidance, total revenues, To our for range. as our you revenues grow X%. leaving professional of year-over-year of the down expect current revenues are in We X% to range X% service and forecast for that we to in range to to

low the of by inpatient consistent utilization. cost in closer to will The our XX.X% range would believe to rates fall still ICR XX.X% cost first end range, insurance high the We single-digit our a with reflect health XX.X%. primarily moderation of to health growth the If between XX.X%. driven experience, expect in mid-single cost we our inflation half ratio would be digits, at remains

adjusted share With net that $X.XX continue diluted range forecast we outlook GAAP diluted time respect $X.XX. we we QX the quarter to share another net behind of at quarter us. and in our earnings, to range refine our income to of to with fourth When per report the and $X.XX expect income in per earnings $X.XX, our guidance,

strong see, health results given delivered you TriNet financial and the of costs. can As backdrop has rising resiliency care

which have is hiring a for great as positioned growth We business, resumes. customer well

financial a capital policy, of line have outlook the balance positive have shareholders in returned for We our with the year. we to and

Operator? I Q&A will operator pass that, the With call to for the the portion.

Operator

Instructions] this morning's [Operator with first And Huang JPMorgan. question Tien-Tsin from

Tien-Tsin Huang

grow to you know and line, here? I that front I should there into to in through think When headcount expect higher you a growth Just in expect -- mentioned coming on is Is come which good. XX%. sales sales, there XX% the sales timetable that productivity results? translate do aiming the we

Michael Simonds

about we Tien-Tsin, when on momentum the offering, retention the first question. the I'd I in that positive are we meeting then with Yes, the half. our And definitely basis. as also, with how market, up as of contraction -- And seeing year-to-date it's I'd strength number would is. I be relative it say, say, sort just the of about encouraged And we're appreciate say, sales think Mike. XX% a first, having

as through progress really having we what in bring sales that we're goal you the we X the volume losing a are on that new And know, the towards attrition. combination making and that of is of match what keep we basis after

the So momentum. by encouraged

Like certainly you more. in said, of I think that's XX% salespeople growth a the function

to that terms by I the the look story month next of busiest of will the geo's would time of continue XX%. in the as to that our a in, has been verticals, we at to think into grow see number part here room but in look part we perhaps sales float the year. up get the or season we're capacity, selling productivity we big here about say this X, I at

we selling of as bigger through continuing going see would into the I And and that [indiscernible] forward probably as the driver we get through get part be a as XXXX. busy season big to

that's lot together with, next having in into market. there's tools enhancements of work on, are relationship equipping the sales their we management So week team that person process that entire them we're the using, taking the including customer sales going product that a the we're on and

productivity to X with there capacity a get lean towards coming, So X and a be through as quarters. balance the will say, we between productivity

Tien-Tsin Huang

Great. to No, that's hear. Okay. helpful

Just maybe one Mike. more for me,

tools. approach as with some of you innovation accelerated well It leveraging means? sounds the benefit maybe after maybe mentioned on you I to that nice elaborate side benefits. better things. Just here to made hires like you go know Can what

anything to So else share?

Michael Simonds

complexity in care. that. inflation. Kelly while with the term, manage certainly for through Short price remarks. us we the that's for problem got our her And And we've We're dealing care a it help That's to through health work right. accelerated customers as of we to risk talked about to and prepared as health cost work them and

that value strategies about think the and tailwind deliver that's put growing view, cost TriNet. still a more it place at that increased point from you the to we've to a help coming consumer. That's good of in cost complexity If sustained long-term that with manage us for down

to about. And XXXX. look with trying the continue away deal that's opportunity of going that to not be things out to a we in small kind into that's We innovate to and what talking complexity, business see as cost you're

So made key exactly we think that, I some hires.

that we continue think I the insight in we the drive, capability we data provide. to we'll the can invest around that that have tools availability,

the down year the to last good really helping level, Some their them choices for towards of innovation right tail end the WSE around decision and make them support family.

unique. competition, think a That And it like do some I disciplined relative way. us a to bit TriNet creativity. is a to affords in bit more We little risk, take little

sort for to to opportunity it, already create acute when more separation on comes and we this it pain strength point a take of and bit what a build around little see TriNet health benefits. So care is particularly a

Operator

from Kyle Needham. the And comes next question Peterson with

Kyle Peterson

we've organic on Great question. seems start growth of professional on just better one quarters the little while It here off a services was basis. that in seen year-over-year to like wanted I revenue. a

you see any Or provide sales just this is new on helpful. what there guys piece Or the wanted some of a clients? mostly color kind Is So be from would could driving to more contribution is of there platform that. productivity color force more if any stuff? I and

Michael Simonds

Yes. Appreciate the question.

there really see But were out fees, That had we of through. to strong of retention, think the a consequential up increase just talking kind that's coming them. about, ends to A reflecting a actually you I we're that's retention. strong continue gradual continuing inflation what couple us. really in being

for few tools. opportunity I upside creating have bit that support mentioned finding for value a benefit We're that a little of clients, our We of creates us. is innovate. the to continued decision

sort in any revenue. see these upside I thing, services to things point to culminating nice of sort of one of So wouldn't a generally bit but yes, little professional the

Kyle Peterson

Got the modest. still seems kind optimistic, guess the I CIE. what year, have from are improvement but the it. commentary It half follow-up of the guys Or on helpful. That's are things seasonally some of guys just you on then seem a are any And you like guess first guys basis adjusted a trends second year-to-date? and relatively similar I seen of you half? projecting in to assuming

Kelly Tuminelli

look digit. What modest far the year, a we've When CIE, year. right at of given the pleased roughly the went the we've question, great in seen particularly the Kyle, mid-single so assumed Yes. that in now. we in we're seen positive economy months facing cautious as we uncertainty CIE is it's rest into X but we straight that we're net We're CIE. of the had

quarter rest seasonal outlook really But is that third to interns of some things low-single So and had are we've one, the seasonal the got the few we for that of a thinking way lessens, headwinds because of year like our generally digit. rest hiring back the school, the we're that. is year just have going really

Michael Simonds

Kelly, step I verticals. run think operate the you we're be attractive business, we in a focus about when a in sort these degree long take if And of the that just view, a take verticals. to might just pile long, say, back have you higher-growth trying we of on and unique particularly on again, really

to very CIE, mean range. that average Kelly and line, the long optimism kind norm coming as big highlight. more saying That's pretty demonstrating resiliency the it's look opportunity. is strong just is in of also low-single of are the for like to normalization results. for be opportunity in of to I I closely model, and didn't time, reason a particularly to sales miss to that attrition it's So but XX% us. It's you of forward a current the over a want still period, stretch be when kind in it of the CIE digits good, in X% and the

Operator

TD Jared is question next the on Cowen. with Levine And

Jared Levine

the drove cost ICR release beat? XQ looks exclude than of as reserve in guide. anticipated the the ICR well year dig the higher above for you like if the XQ as we the here, in ratio So what guide it Can end came high despite that insurance into affirmation the of

Kelly Tuminelli

Jared, to Happy do. Yes. it's Kelly.

a me moment. Let workers' comp dissect for

doing reminder, we reserve more comp, making as prior actuaries. of $XX as workers' a we're our tires and with the had external fourth reserve more did do highlight Regarding release we thorough that we quarter a associated a we period a kicking development -- did about thorough and reserve quarter, million our with our review sure on second

little look. saw of So was a an really, outsized what bit we

took out, I impact in have from if The in have we're thing well reprice So a outsized a to you range that one as still on be we the looking perspective. basis. opportunity remind a quarter I'd is quarterly model an where health do the is insurance we forward to

associated So we evaluating XXX saw. -- ratio into raise along our the our are we with we guidance looking went continue lines guidance And and our of the were just that. related the same as because we the seeing just renewals trends insurance did those to that that and year, trends at lower this quarter cost or we

as of us So well. guidance, talked what in positioned the to basis, the of bring end the year on and bring ICR, to things prepared out remarks the in I would I ICR we're terms think full end of a and low you high a would about the but about the what feel good us few laid I

Jared Levine

heard it in but correctly, you then update like bookings an And XX% of environment? were If give sounds year-over-year, I can head terms us the count sales is -- of PEO the flat. terms here demand up in

call environment out PEO of anything elongated anything or demand So to here? in seeing cycle in are the broadly you of terms sales terms

Michael Simonds

particular. the question. It selling as competitive don't And call we It's year. busiest would has Mike. demand been heading Jared. we're anything were we the where prior Yes, I of market. in think a comfortably environment at in in Overall season, pipeline the I look appreciate ahead pipeline into good. the is I the

as a that we've of some salespeople I'm reasons spending time with in for our and the general, I talked think market, our it's partners channel about. competitive

across dealing for. I is SMBs strong many health numbers we are We care point would be Again, more disciplined. looking it consistent sit interest of say the health in impacts we view, help to of People care that and going point with inflationary industry. feeling cause like for for are the challenges in think going disciplined tells environment, view. TriNet broad to do the an a point are to cost relative of solves take bigger. there approach data from shopping every The and a I we're that risk. is a are behavior. us PEOs. from entire how felt price these a And impacts

XX% single get believe there will So we no relative know. there. there same of position very watch pretty from while a every in the terms But stick have deteriorate. to that a our some get confidence that do capacity is approach here. are disciplined pace. reason exactly I closely. give don't the Will XX% to those will to us of will at in the I pipeline, know they terms to up player that We'll standpoint, that things being rep

Operator

Nicholas And Andrew William next question comes Blair. from the with

Andrew Nicholas

wanted expense about ask I to control.

kind of quarter good front. on that really Another

deteriorate maybe, remainder And in levers have Just to CIE other to cost these margins that the expense to of beyond. Kelly, to sustainability that deteriorate protect of if to the or were but kind that of the even year, macroeconomic still levels base extent within type you curious, the environment? conditions are were the there also through as of

Kelly Tuminelli

the year. Andrew. for we've done did first, I kudos right we've get a we a terms what It's to look similar deploying dollar fully thing on to from talking I've reduced G&A growth the sure we're offering a invest every in able year-over-year, is our had when question, year. growth, money. -- But been benefit what we and great integrating to that improve Making theme we focusing shareholder want last spending all in the our efficiency HRIS there. Really, of we're the to to spot in drive help doing where be to right And team about

not we last -- And have of So costs wouldn't operating recur. to drive I we will do continue we've question, expenses constrain to grow, a make got as the being year in that But to as But to are we not we going investments possible. that growth. of every your efficient bit that lever proportionately opportunity expect productive grow of sure the as our an we're with kind working and outsized end to at to little we're day, did leverage.

Andrew Nicholas

Understood. And changes there which trend in topic verticals follow-up, that optimism year are my then on technology, on for or speak any whether or existing. level, separate that the worksite had change just particularly or X? employee meaningful is in in and to you some and at altogether, Can dynamic the the obviously you guys to or overall are willingness in interested focused buy past starts has not stops

Kelly Tuminelli

last had as did look the another of great scan in question. perspective, couple sure from And of It's there. a quarters real tech. tech been good all a verticals, to I we've And in and have make positive we this across a morning tech story our underlying X the modestly months we had

I'm by encouraged So that.

services. the little in the of seeing other did we're all still CIE verticals X a for full pressure show verticals, our Regarding bit professional positive where of Basically, quarter.

Operator

Kevin from comes question McVeigh next is the UBS. with And

Kevin McVeigh

SG&A Is the maybe or about that comp I for about maybe talked much that? Can workers' how disaggregate know comp way over think SG&A. to and Kelly. anything maybe $X.XX of maybe drove a it was else Just workers' you you the there performance?

Kelly Tuminelli

by through help We do line of was the P&L look just model that But sort overall, the you, I the of of Yes. we going insurance, on range. in off your think kind right Kevin, it middle probably when I insurance published. at can

investment expense not as efficiency, our deployed so in We share million this EPS, to perspective we about paid we driven was as that on saw, up by helps $XX million prudence repurchase just we're dividend this week, really almost you dividends -- capital and a second but well. Monday allocation. reminder continued that and year-to-date well did as it from So as an both on $XXX

think from do capital perspective definitely helps I as the EPS So well. story an

Kevin McVeigh

always Helpful. the what were And know kind to takes you're about then, think any X expectations relative Mike, business your the like of I ask into months I you and puts to as in? coming model role,

Michael Simonds

the changes having do Yes. It's what X you months Thanks, of of the make like conversations me, colleagues really most to in time such a a therefore, focusing profitable the And the time going on customers hard those we with about doing have that of well that having is and may spent model. Truly need thinking control lot today with big of that I'm a we health great ideas TriNet Kevin. things and and customer of set the And and somewhat said, TriNet is strength it really in we here and experience picking amount the and that of great our market. really there's expertise for terms that runway forward. choices. to the growth happening set own really them technology. technology me, pursuing about the encouraged. I about conclusion in for It a of talked at is probably talked I small And really care. business things vigorously in considerable of strong that reach for and unique I is. And this think of We business. lot having We opportunities think the opportunity smaller backdrop biggest

change terms for sort bit big and as would the to look So I not strategic TriNet, specificity a those little would and expect sustainable accelerate in opportunities focus expect we more growth. profitable of direction probably but of I a at

Operator

David And the next with question from Stifel. Grossman comes

David Grossman

channels. Mike, higher like had you -- when experience the that expanding And when you has a that you just in couple I a area. I made joined, of talked distribution really you -- quick is One you first talked about it follow-ups. looks some think,

see a what to kind to So achieve talk kind of about kind over to as of you hire bit ramps expect new that next XX we up of and do XX to should that months? want the mandating little what you're person

Michael Simonds

from to hear David. you, great It's

be will our our start I -- I saying sales by would think direct actually team. primary and is just go-to-market

X augment market talked that the those time team data, across of something in around sort us made, to the innovation to invest there And big channel. first employee sales I the I part spent organically the that. very apart, around opportunities lot that continue analytics, want the influenced. we that business relationships as is And think the reallocating is those the a building the into very, invest investment brokers folks said, we across of the a an months. we local to here benefits, sets way, we've being can the group It's people, sales and think in. That opportunity And and that's benefits brokerage of from country resources markets. have where with it's having of that again, one about special we already those very one a bring in in are by and

as Chief managing experience, So challenges channels. direct he change. But comes of multiple Officer dealing again, in, that with the careers a comes new and with our opportunity comes huge worth Revenue with not a intermediated multichannel distribution and

will take the that overnight, it, but establish momentum corporate-level I excited pretty on of doesn't to place. It changing already we about build putting processes the started there. little time. So It but to tools, get a the to some our think not focus, we're can to adding partnerships bit the we've in technology, happen

So hopefully, helps, that David.

David Grossman

just only number? are adjustments WSE numbers. to just that to Is XX,XXX of make to couple cleanup users? sequentially, And a quick questions count make the platform to other on there Kelly, adjustment Yes. any the the Or

Kelly Tuminelli

out David. in XX-Q No, we at all, And that break the this was not filed those morning. do

capital and the transparency difference users. between the on co-employee hopefully, So the the platform

David Grossman

Right.

hiring little like know, that. a -- than and I CIE or basically something for, the down X is quarters, up were what less you've modest sequentially you hiring, because X X sequentially been the point So don't

growth And mean so the first sequential adjustment, be to that right? have to Just clear.

Kelly Tuminelli

Well, the to is other retention. just thing super out point strong

CIE the be I to modest the to obviously, And that. at, just and most a during occurs So as of how about for of strong quarter. then was was talked and attrition But to expectations sales I first we're in think basis. get quarter sales able we've to continue Mike trying retention our do offset showing our level looked think a contribute helpful attrition exceeded on the their the really quarterly

David Grossman

on is balance expect kind to just Right. other dynamics of we there throughout cleansing going year? sequentially of And that again. HCM users, still the base? continue Or that down the was this the there the should Is on

Michael Simonds

Mike. primary in own it's help and objective It's one just a to to And of and we're the us acquisition technology technology bring good of question. early sort and really market able forward. amount our of say substantial is the to really take progressing to around Yes, point really and actually pleased a step which us and the payroll modernize really bring the is with growth, view, in benefits back the give talent in of the capacity that's brought differentiating take that some be of uses to as us broader business around pipe nicely work the to of and over we And technology benefits well. the the

it, having doing We're a disciplined around TriNet plan basis, expenses a on for really So the forward. of the going important pricing. action said, and like around now you taken positive margin part that's

it. will through price on continue that as front, I work think we the

we capabilities the we're going going The you is are to be on we're as choices the services and that ultimately, businesses around, be outlook to the third strategic okay, review things And the to at. are P&L. that the impactable what meaningfully really and this from count piece that invest what's at part there those and of that our going business? behind, for looking that make, looking get us to is can software And certainly growth we're

so the with margin I positive basis. here best grow. got think And we've out path got pretty excited a doing capabilities and part of the to that it to our And figure I'm then that business on we've about

Operator

you. And Mike Simonds, Thank CEO comments. this session. like the does to question-and-answer any would conclude over closing to turn for conference the I

Michael Simonds

the We, for Kelly, coming to Thanks, and dialogue And over months. and everyone, forward always, your appreciate will as this look the joining us engagement. weeks Okay. I Alex continued know morning. I

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Operator

as for And has mentioned, now today's attending Thank presentation. you. conference Thank concluded. the you

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TriNet (TNET) 26 Jul 242024 Q2 Earnings call transcript