TriNet (TNET) 15 Feb 242023 Q4 Earnings call transcript

Good day, and, welcome to the TriNet Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded today.

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

Thank you, operator. afternoon. Good Alex am is Investor Head and Relations. Bauer name TriNet's I of My joining to and quarter you us Thank for welcome conference TriNet's call. fourth XXXX CEO, I M. joined today our President am by and current Burton Tuminelli and Simonds. Mike Goldfield; our CFO, our President effective and future tomorrow, CEO, Kelly

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

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

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

you, prudent pleased Thank by was and I successfully year new strong record expense and on am retention including control. record quarter, which fourth successfully areas expanding force the We these our direct sales improving proposition, Alex. executed across management. emphasizing sales customer go-to-market value highlighted growth, near new our results quarter sizes. customer By given that to particularly and under and forecast efforts, Fiscal WSE the resulted with near our in our are we in our accelerating my and customer retention service, customer expectations. executed sales growth exceeded enhance rates fourth plan high our all XXXX,

economic investment we made responded With the environment, difficult by count. dollar our prudently expenses XXXX every of and managing

our execution of back across billion strong bought our stock. believe Given we our in in all over $X.X XXXX business, long-term stock represented significant facets We TriNet value.

by As TriNet announced you midnight of today, know now, tonight. my CEO retirement as I effective

one approach we execution, the and that Street. the TriNet. and go-to-market future, to achieve one an given ultimately on strategy our and we every fundamentally Because economy. view a This how and in longer to actionable the and Sciences, plans team. is investment thrives we years, As most Services, our customers Services, where hire, short-term and been who consisting people, invest and our balance keep grow of is unparalleled them my TriNet successful of a dynamic our treat importantly, growth impacts standard how very and industry, Nonprofit TriNet, over Professional of by sales to a high to Life approach vision partners, This dynamic long-term XX this providing base colleague vision CEO build PEO our them for train services focused colleagues our for to more and sales Financial hugely the industries; for a long-term versus the as enduring strategic importantly, market standard, introduced the value overarching different. I and development, core at Main this vertical company, for that but was X have has relationship. TriNet dynamic Technology, remains effectiveness it decades we a in most and U.S. the we of customer able SMBs attract a of

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financial index that exhibited commitment ranked this #X week, practices and in a for this to by growth. global in Newsweek informed companies XXXX were the Index were firm best Just listed we we in business The XXXX. Excellent

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here ensure call the TriNet's position with our working excellent experience so as well this as the next to Mike end Simonds say share as TriNet few retirement. With am market credentials across are company. of to is is the of you. words an step growth. strong a enduring right will still the smooth extensive an SMB I company my XXXX our I facets today's Mike be as extraordinary another insurance enter journey momentum facilitate I I'm that transition. With days to ahead. best can to I management. through leader Mike confident All we pass company strong will a he in on confident feel of with that, March TriNet's phase into CEO, Mike? the as of with and is took Mike, of brings for TriNet announcement all next the

you, Thank your years. Burton, for these TriNet, extraordinary at past leadership XX

appreciate to your shoes transition. as to a much stay ensure I an fill, adviser be to going very commitment are Yours to and big seamless on

company as The strong I I in the the HR in colleagues, as large weeks to customers to with with primary certainly much My spent of meet and investors. team you all and a business, time excitement our of out cash others in in brand and marketplace look excellent and spent partners customers, a still as culture, front reputation initially the this us. have conversation January and onboard supporting with excellent career associated working we forward getting always up I've and our my months. insurance opening dialogue technology will the be in grew and TriNet's the benefits my with market. focus opportunity coming a well record market, market with of appreciated the generation more about

Kelly? pass I'll our guidance. through on to results Kelly it Now financial and take to you

speak in for Thanks, to all welcoming you colleagues TriNet. Mike. I know I

new our to XXXX, We in continued prudently expenses kept growth the digital while our we We we sales customers During still and controlled. in TriNet growth. managed excel And investing longer. areas transformation. accelerated

we our financial to approach over the reflects of we $XXX continued and issued bonds million policy and of investors, billion repurchased on our line $X.X company's our to management. and of borrowed allocation As maturation capital it stock. of our renegotiated and relates credit execution This the we capital, published revolving financial

issuing built today forecasting over negotiated years, dividend towards long-term it top our having announced $X.XX per actions initiation terms, enhancing our initiation quarterly just we've the dividend several that and dividend, a of corporate business One, off, of policy. a The debt generates of consistent We've To share. borrowing these the signifies And and X significant options with enable now manage dividend. that financial with diversified we things funding which for we a our shareholders TriNet. flows, predictable for have X, of return capital cash capabilities.

fourth financial contributions. year the dive by X% performance quarter largely the and grew year for detail. let's range. and X% average greater higher the line in the our with guidance revenues offsetting performance impacts revenues in Total Now WSE volumes fourth our full into for from quarter rate year-over-year and mix Total for characterized year, was lower and

average revenues guidance. a by full increases HRIS environment, Consistent revenues workforce of offset by was This were challenging result in WSE throughout overall in and of sector. Professional economic impacted our technology the professional with hiring, for services hiring lack was volumes, performance, quarter and reductions the revenues largely base lower in performance. lower the the total driven customer in flat year verticals Our our in with were some the in customer to rate service of our year-over-year due by others modest the lack of line installed particularly volumes XXXX.

value full acquisition factors: finally, XXXX. to renegotiation price services provided; for performance HRIS at from the XXXX performance HRIS revenue Our compared our of the properly success X of in broker in by HRIS was year the our First, arrangements timing third February second, when driven quarter; reflect the of certain a of our and benefited with of our year during the lifting

XXX,XXX finished trends experienced the we continuation positive year-over-year. modestly introduced net but strong. WSEs, levels, a and reflects contributions with receiving volume, the PEO new sales, quarter, WSE PEO the of reflected This Last from which broader those positive year XXXX. We Regarding services slightly platform. hiring approximately definition, WSE we using value historical than lower remains down customer saw throughout of our significantly retention and a we was

As broader think opportunities platform to we drive by delivering value and to new build revenue base. an our the through even

to as We of will through product refine receive do incremental additive we just down to with tally. work WSEs fourth on sequentially. varying expand existing under, as our offerings, and the each will fees flat revenue we recategorization these legacy added continue On XXX,XXX we of apples-to-apples WSEs at quarter final year-over-year service these to our XX,XXX a the finished levels PSR. earn WSEs and The comparison, be on WSEs, our and X% appropriate. We categorizations our adjust processes

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

For experience. prior latest workers' the than quarter in particularly trend compensation in year was our compensation than the our in slightly more was XX.X%, insurance utilization, favorable range lower claims The year workers' November, lower full year, by our This ratio consistent for healthcare to full development. ratio insurance of guidance uptick the XX.X% XX.X%. cost reflected an with period cost offset

quarter. expenses in Turning to operating the

spending our resume our response saw therefore, choppy clients in the economic capabilities. to ensuring were cash to our and critical quarter. scale position flow to our expense challenging strengthens began hiring. hiring The we of plant hiring We some in our continue the of cancel wait that discretionary go-to-market would project our prudently we for still remain while expenses We back or run rate we And to as environment. manage recalibration throughout investing

for X%. and the such, quarter, As expenses year-over-year, year, modest full the a declined expenses operating fourth grew X% operating for

move let's end share quarter earnings Fourth net Now of exceeded the to up year-over-year. per XX% $X.XX our by $X.XX, share. income guidance GAAP diluted to per on top

workers' outperformance compensation XX% compared share end just of diluted XXXX. I net expense and to high Fourth when earnings up $X.XX to per exceeding This by up by versus full year-over-year. full net per discussed. income up per XXXX, brought performance versus adjusted the income brought $X.XX. by year Our favorability GAAP guidance fourth $X.XX, This the diluted adjusted end $X.XX, XX% driven was guidance quarter to quarter income exceeded $X.XX, the our to of share top also year share net guidance our XX%

capital dividend April we will date to April The of quarterly X, Today, allocation. record Turning the announced a institution $X.XX. of payable on XX. be

relates institution the capped TriNet dividend, year off of as With our allocation our strategy. extraordinary to capital an new it

unchanged. priorities capital Our remain

invest always our We growth. in for will business

will We will shareholders explore return dividend. and repurchases accretive we both capital newly to our M&A. And instituted through share

a flow up commitment adjusted EBITDA to ratio to During included manage of XXXX, we articulated cash to publicly free our our business which at investors. of X.X financial policy, XX% Xx our return to leverage and

representing For an In we generated cash position. strong the XXXX in year, $XXX million a million financial we exit operating $XXX summary, adjusted corporate generated flow, And growth. year-over-year EBITDA, X% year-over-year we in X% in increase.

GAAP a to non-GAAP to grow X% turn provide in year the expect range year-over-year to X% revenues revenues XXXX full will let's In first total of and X% first where quarter quarter in X% outlook, our year-over-year. XXXX, grow of Now both and to range and service a to of professional I we guidance.

$X.XX diluted seasonally ratios our net lower range of of diluted be share. per retention, hiring from new persist. In in year. will This includes over to XX.X%, per guidance per first range growth ratio $X.XX contribution quarter result $X.XX the health trends revenue limited XX.X% our an customer of income to $X.XX to sales planning in offset And insurance at cost to we contributions as between; beginning growth from GAAP per be the estimate for to net CIE utilization are increase experience. care quarter the first the each recent adjusted weak This first by in Our quarter to of reflecting QX, and share income share brings strong share.

in revenues the full year-over-year total up we of X% the our year-over-year. XXXX of X% to to to range in revenues professional be X% grow are forecasting our with our to down service guidance, Regarding year X% range

insurance performance. benefit patterns about outpatient strong expect These the to X higher particularly increased the This exhausted continued X utilization, deductibles workers' a quarters ratios than and an higher result, are health for points of our full and trends forecast ICR in continue cost bring services XX.X%. GLP-Xs be XXXX cost work higher fourth as cost and provider October. We insurance to first in our second favorable then to ratio insurance We from range when return ratios and is deductibles. seasonal reflecting quarters as and to ratios XX.X% example. should to compensation pricing year reset limits foresee our in in follow see of care adoption to cost participants pharmaceutical through pooling costs, reflect as we higher projection the as third We

pricing as this watch needed will we refinements XXXX assess and quarterly determine closely any changes. We throughout

our will expenses manage prudently. Regarding expectation our to expenses, we operating for continue

expect operating As increase expenses we for in a modest low such, year. single-digit the

full per anticipated be be range GAAP to $X.XX in of adjusted these range to net per to to share. $X.XX the per diluted $X.XX we trends, per Given share year the share income and $X.XX in diluted expect of income share net

Our and diluted includes year income the per versus share a benefit last $X.XX share of $X.XX share of XXXX net of a midpoint between $X.XX adjusted result per our as benefit repurchases. per guidance for net at share a

For a stock normal will continue repurchases our arising level XXXX, of to assuming compensation. offset we're in from share dilution guidance that

Before time. we accomplished has remarks, the I take a to moment those. We like to and such provided short X.X his of period for thank leadership the last him in a back for lot TriNet over the for I Burton the successful pass he would over a forged years concluding call partnership the and of

all retirement. and Burton? in TriNet redefined you a know PEO happiness your but during of tenure. colleagues enduring nothing could well-deserved value your wish vision enterprise when over I I for billion Your an for building be $X into TriNet what created I speak company

incredible, XX passionate a our for enduring country, building Kelly. company. value colleagues problems my customers, unique of Thank TriNet this providing across shareholders we of have service leading the TriNet, to been years Throughout solving all, small up supporting people. over most other you, dedicated to company as our is build each businesses for made our unparalleled and

be X,XXX prouder could be the team diverse of world, innovation continues me I channelling grateful every passion colleagues combined allowed fulfill country every In things. of can our of day not them am people for team that who almost our ensuring our by does center do our I of have the customers. entrepreneurs and the miraculous a that to work to to of helping world. in service dreams one to their our leave today's committed

call, am over happy wife, Carol, grow to continue excited own As excited end year will my earnings including my small like you family, the and Thank grandchild. Operator? with thank first for future future. TriNet business do customers particularly do country for the the my work continue last I I my prosper. I I you for and at now. know in I to and questions across colleagues I of would single your all watch and day. take every to with our will to next this to you my what am TriNet. my you am thrive

Today's McVeigh Instructions] [Operator Kevin UBS. question comes from first with

congratulations your just out lot and a rarely on add grandchild you've been mean I own and retirement, terms you. let a my terrific just first created outcome time, And job your on a for do their go steward for a across terrific Burton, of TriNet CEOs long terrific, and congratulations. a it's value. me at

that. So congratulations on

what unfair. ago? terrific. you you've that's because you little think of in say been your do been years the the just obviously And a But stock you has been But sector. be can't might when upside XX from early greatest out this sense set so Burton,

I a as the -- on broader there's Just just to going audience be retirement. transition you for for thoughts make into it because real you any to knowledge that think just more

-- because Well, weren't amazing I am trying technology, on were me. it's retire thank is model. unique to the we Kevin. industry just not anyone. I And the because you, customer. because following can service culture look, of the strategy, the about can vertical We And team. I with I can lead the this retire retire focused

created been it this where company grow I great. do It's this I prosper. about would a culture do and is And would to never didn't think continue going if that's to

object. any I shiny haven't I the CEO, or object have I the haven't So or like well? said every mission done what I this go that vision think year. after changed shiny

in For ranger bit was and a while, long the technology the to of needs I substrate little service scale customer. a of be a to the

don't more I around Mike really technology we've investing approach But with I'm service tech-first and up So leadership the leadership this the I'm catch proud scale table, individual combination. contribution. comments. I been our that. coming believe in during I with a right in have great appreciate executive door of team tenure, my proud entire is your really now. and that combined the my of great than to

question next from with our And comes Peterson Kyle Needham. today

being touch guide I for client of I'll are kind expectations are little a guys conservative CIE the had to you modeled any today. kind guess or back wanted numbers. of guys guess I see sounds in just on sit guys improvement conversations. based half as here kind But the in fairly the But you of your with assumed we like what to had on if for the up pick current wanted it I you what year. and see bit

to we Kelly. from it's Good day. watch every Kyle, single it's question something hear you. because Great

were XXXX about lowest grow to was we just thinking I resilient the ever profits model, think has still our As had. able we're year it's revenue get frankly, that CIE there. And and CIE TriNet and of overall, proof

is towards looking into CIE. of skewed year. the forecasting back end on low the low half At that we're end CIE of the and guidance, single-digit of is high think at we're As really really middle guidance we're single-digit it XXXX, the what

year. big to bearing And obviously, of for the just to the a just coming on year, a kind helpful. pick return dividend want follow-up, was capital buyback. I a today. year very see great the then, for That's announcement guess I priorities last

capital the predominant offsetting year? you priority of big shareholders are dividend kind of dilution? for going to current the guess Or thinking about I with today be the or to returning guys outside how the is

the guide the dilution financial Yes, stock year. we out bake that just other the now, a we capital just laid of due because of return, Kyle. our to But in related don't the factors, timing, in. to Right assumes variety policy offset price, of our actually middle

not really priorities our So changed. have

business to to newly first M&A. in invest going that at returning as repurchase look we're the both to growth. dividends the share will But look relates drive We're We'll accretive it well shareholders, we capital as instituted to at as opportunistically doing.

So we'll our target is, see on average, flow to tools got the And approach XX% return to of we've what free shareholders. best the at cash look is.

question Levine Jared next TD our with And from comes Cowen.

I to assuming in of wanted levels But kind of think say the in a of 'XX color average can to of in FY just Burton to you're growth of first, WSE the congrats bit want more little little for retirement. cadence WSE 'XX? about give the on terms start. a you how Yes, terms guide, us to terms what I and

you really a as narrowed we given the guide about. and talked that are got is -- WSEs, gap January and thinking the WSEs of the the We've pieces we're sales momentum about Jared. know, strong give Well, that on Burton the sales attrition. Yes. new forecast between it future or customer way we we've that don't But

that assumption as well bring got And now. that with up helps right CIE the definitely we've

a roughly forecast in bottom how well you our comes assumption as not from revenue GAAP probably as we're forecasting revenue, total with service that really real around low can for WSEs. both our tell assuming our end CIE. growth So single-digit the on But -- professional

terms XX%? assume was the long-term And ICR 'XX then health insurance a with of ICR XX% contemplating your margin target guide, what of does that that's in to FY aligned

probably Yes. versus favorability expected us -- really the compensation. the the we to terms When XX% related workers' to is in continued of XX% difference XXXX, from

prices, Now, prices health we at We're looking care are pharma increasing. increased et cetera. looking at definitely

that NIM to because or going So year-over-year insurance drop, the anticipating we're XX.X% significantly contributing forward. XX.X% is cost ratio not

increase in health really the driving that are cetera, prices, piece. So et

here. one could if in more sneak And I

on week sales competitors a your with terms competitive In on announced terms Workday; of for last that with one WSEs. partnership client organizations of advantagement announcement thoughts of XXX-plus that just in new

take of the So opportunity I'll the There all space. for plenty that. is in competitors

XX% in software still of less standpoint against direct than and or We hands vision TriNet completely our quotes a to and space of competitor. from our that where And the are address it's is opportunity going. with the Denali our

to our years. us Other different expertise, as of for technology that competitors that I go lead market very, and our well. couple And service there's our room you of to And welcome I to believe are approach the up that. taking everyone. of will very a plenty a core as But over very place the segment competitive address next others market

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

well, been I the with I a pleasure though. wanted a to you. Burton, extend my working to do congratulations as guide, want ask and the question on quarter and

January good. in new growth very momentum continued. ACV force, like is particular, sales sounds the On it

helpful if into those that to of baking services linkage. the are at professional make guide, for you there's point? kind of translate growth growth that way much that ACV numbers into of this guidance to the How us be any And some would

start? you don't Why

Yes.

pieces that. and to So a of couple it's there's, a great question,

strategy the working. is force sales and sales the First, leadership around

new That's We also number. is capacity up. in up capacity. Efficiency net are sales XX% pure a

So you're seeing increases dramatic year-over-year.

January talked year. was last way about. we really up that's as strong And a against January

So ACV and momentum of there's new clients. onboarding the of the in net our a lot new

retention is now. and strong down way is incredibly attrition right Additionally,

continued from year, position. It the from we're a curve which at So the the entering beginning strong ahead is is momentum the very nice QX. a of really of be to year

control. installed strong and is be built new It's in under controlling less being or net turn that into see in this our the the about tech base. in And an sales time, to the where to will matter but accelerate ACV of It's take that of over the CIE profitability and back. I area our There I'll will cost a hiring into the we continuing January. It really guidance. unwinding the realistic we feel was, So need Kelly. it an that area is in come conservative is to

that talked between at attrition gap is mean that sales we're the and point, really our I narrowing that the I we're Andrew, we've Yes. level in new think seeing January, customers. about the ACV of critical of

we're when January So on what's point, the that terrific, guidance to but terms be results of comes through. now. our we going forecast, came well planning we Burton's baked not our to back, of into hiring when we were aware created it's And that in right

fully our forecast year-over-year. is you're But professional revenue the service growth right that So baked now. seeing into

expansion single-digit looking offering as the our the low If things as value assuming broker of source you to market. new dig and share we're into price at we're increases. We're underlying assuming there. of channel assumptions, products another wallet We're

of together all make those to service add up rate. growth professional revenue So our things

maybe guess that, a that, on layer go specifically. kind and that can a new double? normal maybe of you terms It gap kind low to can follow-up can sales relative be to in positive? gap CIE it And you've of that goes Is attrition. I then, it not 'XX the 'XX narrowed of this Kelly, on that? then top medium-term like Burton's in ambition And of but year, the expectation, as to sounds

Yes.

our in back we've to You That's the really been exactly. get -- force. our front it able and back sales our is to be investing office to office invest as cutting goal

actually more We that will gap be to sales new upside. that cover attrition are will and trying so narrow CIE than

employee All just in squeeze more, right. the on could if trend. Great. one worksite I And

stabilization fee. the just things But user you there's reclassification quarters outside of about prior are to under the at of think the your in anything relative know control? that would level vertical hood, the say the like access with or maybe strength terms platform as noise So we I there some that and

verticals. hiring In in saw seasonal favorability some we terms certain of from --

forward looking bit at No we're to we're be to of of choppiness across our half towards signal why this time. on point real as CIE that's trended As the a them. little seeing back really the clear January well, we in year. and And conservative forecast wanted

one point that. And Andrew, more just to add to

additional the engine as you costs the as long exactly We're And sales growth sales We The to time case, we're doing invest will that at that's We efficiency flat. way is the of but overall phrased a need board invest same where we and the continue at will at only not so in coming higher on organization. keeping significantly sales the relatively headed. is in additional efficiency. capacity capacity. it the same reps;

reallocating into So Kelly But results up, the of keeping throughout the will continue to service done the they team levels way amazing referrals continue job an invest channel significantly up. in long January. the as as did have and we XXXX keeping sales dollars, the

question next Our Polkowitz comes Instructions] JPMorgan. with Andrew [Operator from

so I speak to say, in long share also his as the congrats work First, I to to you've as always to no Burton, I myself, from and herd, wanted had, Tien-Tsin, want and problem. well congratulations the run but have

So I the question wanted to start on enrollment with season. a

was just Were you attach saw or differences far on we're the that. or what So any curious there rates? And obviously, improvements versus guys I through year X? benefits as as last

a It's Yes. rates. attach lower slightly really question. good benefit We're seeing

differences down a but think Financial tech bit on I probably or we the sort see. benefit little really maybe seeing vertical vertical of X. now. signal of it it is a still second down the we you about as plans they're We're attach point economy has buy perspective. when seeing services that from is Andrew, rate, highest But a think on the of normally are a going right well, what's in all

ask, And to ACV follow-up strong And to. growth. then wanted obviously, what see really I for most one I Makes just attributed to sense. you just wanted me.

Is demand in be ACV improving to obviously, So call onboarding. attribution out there growth environment force you would that analysis to and while anything called sales out strong the And been for the tenure basically now. great. client a better has just maybe

So great question.

out, just capacity. you As first pointed sales our is

sales reps. more have We

uncertainty we've business the the on solution. people driving as about PEO talked is to the earlier calls, in that, environment is Second

and complexity delivered is resonating this driving the the is to technology backbone model. So uncertainty in And have my people market. the go to best service then is ever And we providing TriNet. focus in tenure vertical finally, the of type

And up. are believe, opportunity. is Broker I is continue to Direct this sales, market, the us will give referrals up. So channel up.

the QX. ACV And XX% you generated the know, revenue as there's of about or in

particularly pretty out. curve. about start how one reasons the of to I'm pans the And we're are where we excited of today year excited So that's about ahead the

are the record because have at Additionally, retention delivering. levels you appreciating we're highs people solution the

with And David Stifel. question comes Grossman our from next

a been it's well, fun congratulations, Burton, run.

You're my missed. in industry, the friend oldest you'll be

he's nicer smarter. than Hey, am and I a Mike is lot

nearly Zenefits X I one integrating as by own Workday couldn't have buying catch is be as question you partnership One a He the obviously, -- and have up. competitors. welcome And well. that by went questions. We'll your asked into business. enthusiastic. about the platform I to chance Yes. Mike, a of guess was there I with your earlier, think,

as changed have initiated saw that when you're curious they the PEO somebody today. with just self-insure and this; of achieve may that decide to you a transaction I'm compel years scale And seeing years the thought that What's couple that different ago? to stay things today you they than may scale longer adequate may whether X or whether ago they in marketplace

question. good complexity see it's I the of is it So the The a really environment. way

the larger well continue customers, offer construct can them other awesome I than can the smaller. an as longer. you're plan, If alternative believe keep just when which to as you the scale single customers the you is employer insurance services

the the think inflation, if I to you're profits. if now that people-driven And it's scale. people are approach that you it's hard right people-driven finding really maintain hard primarily with combine is to challenge

employee every we've of the to been scale build one but for have is add customers, able the what new the new service of So do platform, use customers. the platform and XX to not

particularly a can where around And the service And out it. for API-first of payroll. the tied So really partners of about you out each us about strategy many I'm pivot customers I important. the other have we types What of around The goes closed the future the complexity about not us single running base a complexity with of and a is have there are a all to allows model asked single by as break up that's connect behind vision you're we're day. that the the every platform. to controls, the complexity grow not our excited around only It's the because about platform It's talked knowledge costs platform. about them. And with seeing with DENALI union tweaking the payroll; is complexity customer complexity it's it. based so access knowledge and you ability to on engine the climbing

And would health workers' you somebody and consider offering without on comp? taking

Well, that's the vision, absolutely.

that's you're I revenue, of And which think in that And from that's what the we're revenues service excess 'XX; for focused what will on in professional is includes professional seeing are insurance. about. is service the forecast barbell going our revenues 'XX. some gross is to professional this, grow we come what And of where revenues. the service in

insurance and 'XX the I But that as is insurance right choose you believe that beyond, to and multiple construct for those clients. the provide the absolutely get answer have into companies constructs

thing, And really more of a strong MCR right? year-over-year question. these it's your remember industry-wide. has this first I for probably been one that the year and faced other is is And which multiple years we've can cyclical declines, But that kinds now,

it's TriNet. course, to unique Of not

we in as maybe keep higher look just of there anything should years, of minds as that 'XX that seen is for cost mind keep our So haven't should that 'XX things and us we we environment, we we remind back the into we in remain this to in just that if want forward. you go

David, it's a great question.

we very quarter. understanding know, business And we of single our monitor to one repriced health of a claims cohort sure detailed make we're, you reasons trends. that's As the every

and things into about insurance think So Act bake COBRA as have out we COBRA, the Affordable there's we to that cost cetera. available see can because our before, that like the is Really, plans think it COBRA today very trends, there. we different Care I was than et there everyone the trends

financial during like COBRA cetera. uptake et than we less And do see crisis, so had historically the seen

due well do increase down as be expect buying health in people just significant to costs. plans to I the care But there

with So be deductibles, lot a with a pharma these which especially something they of But very closely, cetera, would of relationship, are plans coinsurance will it's et anticipate. higher we're type obviously I days. with costs, getting be more buying what press watching

And like expect just on one 'XX. Did just experience there favorable thing, workers' sounds you comp. hear last it -- Is I right? sorry, that in

Yes.

workers' compensation. in favorable related to We experience XXXX continued are expecting

of is it And a will less 'XX a be that than it tailwind in just in 'XX tailwind or year-over-year? was

we're I less some a prior we're expect as we reservers But comp that think as think level well best is And XXXX. working the tailwind. development competitive safe at We tend XXXX. book. workers' us do workplaces. industries our gives period into at clients ensuring a conservative relatively favorable well. of and think in sure of I comp I not general as in same move workers' the I team making our one be with trends in it We it's the looking very our as emerging as in advantage had to

today's and thank today's all presentation. concludes This call. question-and-answer you We attending session conference for today's

your disconnect now may wonderful a day. And You lines. have