TriNet Group Inc (TNET) 2022 Q4 法說會逐字稿

Good day, and welcome to the TriNet Fourth Quarter 2022 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎來到 TriNet 2022 年第四季度收益電話會議。 （操作員說明）請注意正在記錄此事件。

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

我現在想將會議轉交給投資者關係主管 Alex Bauer 先生。請繼續，先生。

Thank you, operator. Good afternoon. My name is Alex Bauer, and I am TriNet's Head of Investor Relations. Thank you for joining us, and welcome to TriNet's 2022 Fourth Quarter Conference Call. I am joined today by our CEO, Burton M. Goldfield, and our CFO, Kelly Tuminelli. .

謝謝你，運營商。下午好。我叫 Alex Bauer，是 TriNet 的投資者關係主管。感謝您加入我們，歡迎來到 TriNet 的 2022 年第四季度電話會議。今天，我們的首席執行官 Burton M. Goldfield 和首席財務官 Kelly Tuminelli 也加入了我的行列。 .

Before we begin, I would like to address our use of forward-looking statements and non-GAAP financial measures. Please note that today's discussion will include our 2023 first quarter and full year financial outlook and other statements that are not historical in nature, are predictive in nature or depend upon or refer to future events or conditions such as our expectations, estimates, predictions, strategies, beliefs or other statements that might be considered forward-looking. These forward-looking statements are based on management's current expectations and assumptions and are inherently subject to risks, uncertainties and changes in circumstances that are difficult to predict and that may cause actual results to differ materially from statements being made today or in the future. Except as may be required by law, we do not undertake to update any of these statements in light of new information, future events or otherwise. We encourage you to review our most recent public filings with the SEC, including our 10-K and 10-Q filings for a more detailed discussion of the risks, uncertainties and changes in circumstances that may affect our future results or the market price of our stock.

在我們開始之前，我想談談我們對前瞻性陳述和非 GAAP 財務措施的使用。請注意，今天的討論將包括我們的 2023 年第一季度和全年財務展望以及其他非歷史性、預測性或取決於或參考未來事件或條件的陳述，例如我們的預期、估計、預測、戰略、信念或其他可能被視為前瞻性的陳述。這些前瞻性陳述基於管理層當前的預期和假設，並且固有地受到難以預測的風險、不確定性和環境變化的影響，並可能導致實際結果與今天或未來的陳述存在重大差異。除非法律可能要求，否則我們不承諾根據新信息、未來事件或其他情況更新任何這些聲明。我們鼓勵您查看我們最近向美國證券交易委員會提交的公開文件，包括我們的 10-K 和 10-Q 文件，以更詳細地討論可能影響我們未來業績或市場價格的風險、不確定性和情況變化庫存。

In addition, our discussion today will include non-GAAP financial measures, including our forward-looking guidance for adjusted net income per diluted share. For reconciliations of our non-GAAP financial measures to our GAAP financial results, please see our earnings release, 10-Q filings or our 10-K filing, which are available on our website or through the SEC website.

此外，我們今天的討論將包括非 GAAP 財務措施，包括我們對調整後每股攤薄淨收入的前瞻性指導。如需將我們的非 GAAP 財務指標與我們的 GAAP 財務結果進行核對，請參閱我們的收益發布、10-Q 文件或我們的 10-K 文件，這些文件可在我們的網站上或通過 SEC 網站獲取。

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

有了這個，我會把電話轉給伯頓。伯頓？

Thank you, Alex. TriNet's strong Q4 and full year financial performance was driven by our differentiated solutions and vertical market focus. Our opportunity remains attractive despite near-term challenges for U.S. businesses. The SMB market remains underpenetrated by PEOs. TriNet sees fewer than half of our new opportunities in direct competition with other PEOs. The PEO model is attractive for SMBs as it provides scale to complex business problems using a variable cost model. This model also navigates a constantly changing legal and regulatory environment, including diverging federal, state and local regulations.

謝謝你，亞歷克斯。 TriNet 強勁的第四季度和全年財務業績是由我們的差異化解決方案和垂直市場重點推動的。儘管美國企業近期面臨挑戰，但我們的機會仍然具有吸引力。 SMB 市場仍未被 PEO 滲透。 TriNet 在與其他 PEO 的直接競爭中看到了我們不到一半的新機會。 PEO 模型對 SMB 很有吸引力，因為它使用可變成本模型為複雜的業務問題提供了規模。該模型還應對不斷變化的法律和監管環境，包括不同的聯邦、州和地方法規。

In TriNet's target market, remote workforces are prevalent. Hiring and managing these remote workforces represent a significant challenge for our customers. TriNet focuses on the right business, where our unique value is core to our customer success. In an industry that is trending towards undifferentiated offerings, TriNet stands alone with our vertical strategy. Our market-leading scale and strong capital structure enabled us to complete 2 important acquisitions. These acquisitions had a significant impact on the acceleration of our digital transformation and diversification of our product offerings.

在 TriNet 的目標市場中，遠程工作人員很普遍。僱用和管理這些遠程勞動力對我們的客戶來說是一項重大挑戰。 TriNet 專注於正確的業務，我們獨特的價值是我們客戶成功的核心。在一個趨向於提供無差異化產品的行業中，TriNet 憑藉我們的垂直戰略獨樹一幟。我們市場領先的規模和強大的資本結構使我們能夠完成 2 項重要的收購。這些收購對我們加速數字化轉型和產品多樣化產生了重大影響。

In addition to investing in these acquisitions, we aggressively return capital to shareholders. We believe our stock represents significant value, especially when measured against the long-term opportunity for TriNet. Turning to our financial performance. Professional service revenues grew 9% year-over-year in the fourth quarter and for the full year, professional service revenues grew 18% year-over-year.

除了投資於這些收購之外，我們還積極向股東返還資本。我們相信我們的股票代表著巨大的價值，尤其是在衡量 TriNet 的長期機會時。轉向我們的財務業績。第四季度專業服務收入同比增長 9%，全年專業服務收入同比增長 18%。

In the fourth quarter, total revenues were flat year-over-year and in line with the top end of guidance. However, when you add back the impact from our industry-leading 2022 credit program, total revenues would have grown by 4% in the fourth quarter. For the full year, total revenues grew 8% year-over-year to $4.9 billion, the largest total revenue achievement in our history. While we acknowledge our challenge with respect to volume in 2022, total revenues and professional service revenues grew well in excess of our average WSE count. The significant revenue growth occurred even after accounting for inorganic revenue.

第四季度，總收入同比持平，符合指引的上限。然而，當你加上我們行業領先的 2022 年信貸計劃的影響時，第四季度的總收入將增長 4%。全年總收入同比增長 8% 至 49 億美元，是我們歷史上最大的總收入成就。雖然我們承認我們在 2022 年的數量方面面臨挑戰，但總收入和專業服務收入的增長遠遠超過我們平均 WSE 數量。即使在計入無機收入後，收入也出現了顯著增長。

Our outperformance is directly attributable to our vertical strategy and customer selection process. Our focus on total lifetime value of a customer has driven us to build products and services appreciated by our core verticals. These include technology, financial services and life sciences. The variables that impact total lifetime value include client growth rate, importance of choice in high-quality medical benefits, adoption of the full suite of capabilities, including both our service and advanced technology, all of which lead to a longer tenure with TriNet.

我們的出色表現直接歸功於我們的垂直戰略和客戶選擇過程。我們關注客戶的總生命週期價值，這促使我們打造深受核心垂直行業讚賞的產品和服務。其中包括技術、金融服務和生命科學。影響總生命週期價值的變量包括客戶增長率、選擇高質量醫療福利的重要性、採用全套功能，包括我們的服務和先進技術，所有這些都會導致 TriNet 的使用壽命更長。

Our core verticals have historically delivered a value in excess of 10x that of a non-core client. We believe that our approach is sustainable, unique and will continue to deliver profitable growth over time. In fact, the next great company is being created today where TriNet has the opportunity to support their growth and enable their people. In the fourth quarter, we are pleased with our GAAP earnings per share of $0.78 and our adjusted net income per share of $1.11 both outperforming our guidance.

我們的核心垂直行業歷來提供的價值超過非核心客戶的 10 倍。我們相信，我們的方法是可持續的、獨特的，並將隨著時間的推移繼續實現盈利增長。事實上，今天正在創建下一個偉大的公司，TriNet 有機會支持他們的發展並為他們的員工提供支持。在第四季度，我們很高興我們的 GAAP 每股收益為 0.78 美元，調整後的每股淨收益為 1.11 美元，均優於我們的指導。

In 2022, GAAP earnings per share came in at $5.61 and adjusted net income per share came in at $7.07. We once again generated strong cash flow from operations during the year. This enabled TriNet to deploy over $700 million in 2022 against our capital priorities without issuing additional debt.

2022 年，GAAP 每股收益為 5.61 美元，調整後每股淨收益為 7.07 美元。年內，我們再次從運營中產生了強勁的現金流。這使 TriNet 能夠在 2022 年根據我們的資本優先事項部署超過 7 億美元，而無需發行額外的債務。

Looking forward, based on TriNet's current valuation and long-term outlook, share repurchase remains a priority. Dependent on market conditions, in 2023, we intend to deploy an additional $500 million towards our repurchase program. Our capital deployment and this increase to our repurchase program underscores the repeatability, predictability and cash generative outcome of our business model. TriNet finished the quarter with approximately 349,000 WSEs in our PEO down 4% year-over-year.

展望未來，基於 TriNet 目前的估值和長期前景，股票回購仍然是優先事項。根據市場情況，我們打算在 2023 年為我們的回購計劃額外部署 5 億美元。我們的資本部署和回購計劃的增加凸顯了我們商業模式的可重複性、可預測性和現金生成結果。 TriNet 在本季度結束時，我們的 PEO 中約有 349,000 個 WSE，同比下降 4%。

TriNet's WSE count is driven by 3 factors: new clients and their WSEs coming to TriNet, retention of existing clients in WSEs and net hiring by our clients in the installed base. Beginning with new clients, we experienced significantly improved sales productivity on a per rep basis by optimizing processes throughout the year. However, in the aggregate, we were unable to take full advantage of our new client opportunity in 2022 due to lack of sales capacity.

TriNet 的 WSE 數量由 3 個因素驅動：新客戶和他們的 WSE 來到 TriNet，現有客戶保留在 WSE 中，以及我們的客戶在已安裝基礎上的淨僱用。從新客戶開始，我們通過全年優化流程，顯著提高了每個銷售代表的銷售效率。然而，總的來說，由於缺乏銷售能力，我們無法在 2022 年充分利用我們的新客戶機會。

Looking to 2023, in spite of the current economic conditions, I am optimistic, we will accelerate new sales and the related WSEs in our core verticals, well in excess of the past few years. This will be accomplished through a concerted effort and investment in additional sales capacity, incremental marketing contribution and continued results from the newly implemented scalable processes.

展望 2023 年，儘管目前的經濟狀況不佳，但我樂觀地認為，我們將在核心垂直領域加速新銷售和相關 WSE，遠遠超過過去幾年。這將通過共同努力和投資於額外的銷售能力、增量營銷貢獻以及新實施的可擴展流程的持續成果來實現。

Notably, TriNet experienced dramatic growth in new sales in January. We grew new [ACV] and WSEs by 35% year-over-year driven by our improved execution. This result is a key indicator of sales performance in 2023 because January is the ideal time to switch medical plans and restart W-2s. Sales hiring is underway to achieve continued growth and strong sales leadership is in place throughout the U.S. Marketing's impact on January sales was also notable with strong lead generation, enhanced brand recognition and advanced propensity to buy instrumentation utilized to yield impressive results.

值得注意的是，TriNet 在 1 月份的新銷售額出現了顯著增長。在我們改進執行力的推動下，我們的新 [ACV] 和 WSE 同比增長了 35%。這一結果是 2023 年銷售業績的關鍵指標，因為 1 月是切換醫療計劃和重啟 W-2 的理想時間。正在進行銷售招聘以實現持續增長，並且在整個美國都建立了強大的銷售領導地位。營銷對 1 月份銷售的影響也很顯著，包括強大的潛在客戶生成、增強的品牌知名度和購買用於產生令人印象深刻的結果的儀器的高級傾向。

Turning to retention, which is the second factor contributing to WSE volume our retention in 2022 was lower than the historic average. The shifting macroeconomic environment over the last several years contributed to this outcome. Our customers stayed longer and added employees quicker, which led to twice the number of large customers in our book versus our historic average.

談到留存率，這是影響 WSE 數量的第二個因素，我們在 2022 年的留存率低於歷史平均水平。過去幾年不斷變化的宏觀經濟環境促成了這一結果。我們的客戶停留時間更長，增加員工的速度更快，這導致我們賬簿中的大客戶數量是歷史平均水平的兩倍。

Ultimately, as we articulated in the first quarter of last year, we saw a number of these large customers leave partially due to M&A activity. As I stated previously, this large company attrition trend has abated and average customer size has normalized. As I look to 2023, I am very confident that our customer retention will increase and return to our historical experience or better. My belief is informed by a significantly increased retention rate in January.

最終，正如我們在去年第一季度所闡明的那樣，我們看到許多大客戶部分由於併購活動而離開。正如我之前所說，這種大公司流失趨勢已經減弱，平均客戶規模已經恢復正常。展望 2023 年，我非常有信心我們的客戶保留率會增加並恢復到我們的歷史經驗或更好。我的信念是從 1 月份的保留率顯著提高中得知的。

Additionally, we made investments in our customer experience function throughout 2022. I expect these investments to contribute to both higher retention and referrals going forward. I want to thank our service team for focusing on the KPIs and consistently exceeding aggressive average speed to answer and first call resolution metrics during 2022. An early result of this enhanced customer service is reflected in our NPS score, where we have seen a significant improvement. We fundamentally believe that in the SMB HCM industry, it is imperative to provide high-quality customer service, along with an industry-leading technology experience. This is an and, and not an or.

此外，我們在整個 2022 年都對客戶體驗功能進行了投資。我希望這些投資有助於提高未來的保留率和推薦率。我要感謝我們的服務團隊專注於 KPI，並在 2022 年期間始終超過激進的平均應答速度和首次呼叫解決指標。這種增強的客戶服務的早期結果反映在我們的 NPS 分數上，我們已經看到顯著改善.我們堅信，在 SMB HCM 行業中，提供高質量的客戶服務以及行業領先的技術體驗勢在必行。這是一個和，而不是一個或。

Lastly, net hiring by our clients, which we refer to as change in existing or CIE is the third factor contributing to WSE volume, because of our industry unique exposure to the most dynamic SMBs, net hiring by our customers is an important driver of volume. However, TriNet's customer selection only indirectly influences CIE outcome. In 2022, net hiring by clients was a tale of 2 halves. In the first half, hiring continued at record pace, consistent with that of what we experienced in the second half of 2020 and throughout 2021. The hiring we saw during this period was stronger than in prior years. In the second half, as interest rates increased and the economy slowed, hiring dramatically, especially in the fourth quarter where we saw flat net hiring across our installed base.

最後，我們客戶的淨招聘，我們稱之為現有或 CIE 的變化，是影響 WSE 數量的第三個因素，因為我們行業獨特地接觸最具活力的中小企業，我們客戶的淨招聘是數量的重要驅動力.然而，TriNet 的客戶選擇只會間接影響 CIE 的結果。 2022 年，客戶的淨招聘人數分成兩半。上半年，招聘繼續以創紀錄的速度進行，與我們在 2020 年下半年和整個 2021 年的經歷一致。我們在此期間看到的招聘比往年要強勁。下半年，隨著利率上升和經濟放緩，招聘人數大幅增加，尤其是在第四季度，我們看到整個已安裝基礎的淨招聘人數持平。

In fact, we saw hiring cool further in January 2023. Our 2023 guidance reflects what we believe to be a very conservative assumption for hiring. This assumption at the low end would reflect a 10-year low hiring rate by our installed base other than 2020, which was due to the pandemic. In stark contrast to our low-end guidance, we surveyed our customers regarding their 2023 hiring plans. We found a surprising amount of optimism, especially from customers with 100 or fewer employees. These customers, which represent about 2/3 of our volume expect to grow their employee count in 2023 on average, 10%. We are watching this data carefully. And as the next few months evolve, our customer base will inform us about this resiliency.

事實上，我們看到 2023 年 1 月的招聘進一步降溫。我們的 2023 年指引反映了我們認為非常保守的招聘假設。低端的這一假設將反映除 2020 年以外我們的已安裝基礎的 10 年低僱用率，這是由於大流行造成的。與我們的低端指導形成鮮明對比的是，我們對客戶進行了 2023 年招聘計劃調查。我們發現了令人驚訝的樂觀情緒，尤其是員工人數在 100 人或以下的客戶。這些客戶約占我們業務量的 2/3，預計到 2023 年他們的員工人數將平均增加 10%。我們正在仔細觀察這些數據。隨著接下來幾個月的發展，我們的客戶群將告知我們這種彈性。

To close out the WSE discussion, during 2023, we expect to grow new business significantly. We expect to improve retention to normalized or better levels and we have a conservative assumption for hiring in our installed base, which reflects the uncertain economic environment. We understand the challenging economic environment we face in 2023. But as we look to 2024 and beyond, it is our belief that we should be growing WSEs at high single to low double-digit rates.

為了結束 WSE 的討論，我們預計在 2023 年期間新業務將顯著增長。我們希望將保留率提高到正常或更好的水平，並且我們對已安裝基礎的招聘有一個保守的假設，這反映了不確定的經濟環境。我們了解我們在 2023 年面臨的充滿挑戰的經濟環境。但展望 2024 年及以後，我們相信我們應該以高個位數到低兩位數的速度增長 WSE。

With respect to M&A in 2022, we made 2 important acquisitions, Zenefits and Clarus R+D, which accelerate both our digital transformation and product expansion. We believe that a PEO must own its own technology, platform, software and product development to take advantage of the true potential in this industry. TriNet Zenefits technology is exceeding our expectations and validates our thesis that this is an accelerator of our digital transformation. In the short time since the Zenefits' acquisition, we delivered a fully integrated broker benefit solution. This fills an important product gap between an HRIS software solution and a full PEO. TriNet's offering in this area is unmatched for the subset of customers where the PEO combined with brokered benefits fits.

在2022年的併購方面，我們進行了2次重要的收購，Zenefits和Clarus R+D，加速了我們的數字化轉型和產品擴張。我們認為，PEO 必須擁有自己的技術、平台、軟件和產品開發，才能利用這個行業的真正潛力。 TriNet Zenefits 技術超出了我們的預期，並驗證了我們的論點，即這是我們數字化轉型的加速器。在 Zenefits 被收購後的短時間內，我們提供了一個完全集成的經紀人福利解決方案。這填補了 HRIS 軟件解決方案和完整 PEO 之間的重要產品差距。 TriNet 在這一領域的產品對於 PEO 與經紀收益相結合的客戶子集來說是無與倫比的。

The future of TriNet is a cloud-based company offering HRIS and PEO side by side. A dynamic TriNet customer will seamlessly move between exceptional HRIS software and the industry-leading PEO as their complexity and growth dictates. An additional exciting acquisition we completed in 2022 is Clarus R+D. Clarus offers R&D tax credit services for SMBs. Clarus further expands our product and service offering for both HRIS and PEO clients. We see a significant opportunity to create value for our large cohort of eligible customers with the Clarus product. These are exciting times for the PEO industry. I believe there will be long-term growth due to strong secular tailwinds such as regulatory complexity, access to health care and remote work. We view TriNet's stock price through the lens of these secular tailwinds as well as innovation and operational improvements TriNet has made in 2022. We believe that TriNet's stock offers tremendous long-term value. We acted on that view by repurchasing over $500 million of TriNet stock in 2022. Should our stock continue to offer similar value in the coming year, we have another $500 million available to us to deploy. With that, I will pass the call to Kelly for her review of our financials and guidance. Kelly?

TriNet 的未來是一家基於雲的公司，同時提供 HRIS 和 PEO。充滿活力的 TriNet 客戶將根據其複雜性和增長情況在卓越的 HRIS 軟件和行業領先的 PEO 之間無縫切換。我們在 2022 年完成的另一項激動人心的收購是 Clarus R+D。 Clarus 為中小企業提供研發稅收抵免服務。 Clarus 進一步擴展了我們為 HRIS 和 PEO 客戶提供的產品和服務。我們看到了利用 Clarus 產品為我們大量符合條件的客戶創造價值的重要機會。對於 PEO 行業來說，這是激動人心的時刻。我相信，由於監管複雜性、獲得醫療保健和遠程工作等強大的長期順風，將會出現長期增長。我們通過這些長期順風以及 TriNet 在 2022 年進行的創新和運營改進來看待 TriNet 的股價。我們相信 TriNet 的股票具有巨大的長期價值。根據這一觀點，我們在 2022 年回購了超過 5 億美元的 TriNet 股票。如果我們的股票在來年繼續提供類似的價值，我們還有 5 億美元可供我們部署。有了這個，我將把電話轉給凱利，讓她審查我們的財務狀況和指導。凱莉？

Thank you, Burton. TriNet once again delivered strong financial results during the fourth quarter while navigating an increasingly uncertain economic environment. Our industry-unique vertical strategy has resulted in a dynamic and valuable customer base, which demonstrated in 2022 is not immune to broader economic forces. During the first half of 2022, the economy was robust and our customer base continue to hire at record pace. We also experienced higher attrition during 2022 as several large companies left partly driven by late cycle M&A. As the second half unfolded, the economy slowed first impacting dynamic industries such as technology. With our concentration here, we saw this slowing during the fourth quarter when our customer hiring slowed to slightly negative. Taken in aggregate, while pleased with our financial performance, we ended 2022 with lower volumes than forecast.

謝謝你，伯頓。 TriNet 在第四季度再次取得強勁的財務業績，同時應對日益不確定的經濟環境。我們行業獨特的垂直戰略帶來了一個充滿活力和寶貴的客戶群，這在 2022 年證明不能免受更廣泛的經濟力量的影響。 2022 年上半年，經濟強勁，我們的客戶群繼續以創紀錄的速度招聘。我們在 2022 年也經歷了更高的人員流失，因為幾家大公司在一定程度上受到了後期併購的推動。隨著下半年的展開，經濟放緩首先影響了科技等充滿活力的行業。由於我們專注於此，我們在第四季度看到這種放緩，當時我們的客戶招聘放緩至略有負數。總體而言，雖然我們對我們的財務業績感到滿意，但我們在 2022 年底的銷量低於預期。

As Burton discussed, for 2023, we are optimistic that our customer retention will normalize and we believe we can accelerate new business growth and are seeing positive signs in these areas in January despite the tougher economic conditions. We are committed to delivering financial returns and deploying capital in an efficient and effective manner that our shareholders have come to expect from us even as we support our new business growth initiatives, product and technology development and continued improvements in our customer service experience.

正如伯頓所討論的那樣，到 2023 年，我們樂觀地認為我們的客戶保留率將正常化，我們相信我們可以加速新業務的增長，並且儘管經濟形勢更加嚴峻，但 1 月份在這些領域看到了積極的跡象。即使我們支持新的業務增長計劃、產品和技術開發以及客戶服務體驗的持續改進，我們也致力於以高效和有效的方式提供財務回報和配置資本，以滿足股東對我們的期望。

Now let's review our financials. During the fourth quarter, total revenues were flat year-over-year, in line with the top end of our guidance range. For the full year, we grew total revenues by 8%, also in line with the top end of our guidance. The performance in total revenues for the fourth quarter and the full year was driven by growth in rate as we had continued high benefit participation by our WSEs, we also saw continued growth from mix as we added customers in our white-collared verticals, and our customers bought more of our products and services.

現在讓我們回顧一下我們的財務狀況。第四季度，總收入同比持平，符合我們指導範圍的上限。全年，我們的總收入增長了 8%，也符合我們指引的上限。第四季度和全年的總收入表現受到利率增長的推動，因為我們的 WSE 繼續保持高福利參與，我們還看到混合持續增長，因為我們在白領垂直領域增加了客戶，我們的客戶購買了更多我們的產品和服務。

Finally, TriNet Zenefits contributed roughly 1 point of growth for the fourth quarter and full year. In the fourth quarter, as discussed on our October earnings call, we contributed $50 million to our 2022 credit program, which lowered total revenue growth by 4 points. That brings our total contribution of $75 million to our credit programs for the full year and lowered total revenue growth by just over 1 point.

最後，TriNet Zenefits 為第四季度和全年貢獻了大約 1 個百分點的增長。在第四季度，正如我們在 10 月份的財報電話會議上所討論的那樣，我們為 2022 年信貸計劃貢獻了 5000 萬美元，這將總收入增長降低了 4 個百分點。這使我們全年為我們的信貸計劃貢獻了 7500 萬美元，並將總收入增長降低了 1 個百分點多一點。

Professional service revenue in the quarter grew 9% year-over-year, in line with our guidance. For the full year, professional service revenue grew by 18%, in line with the top end of guidance. This growth in professional service revenue for the full year was driven by a few factors. First, HRIS revenue contributed 7% to year-over-year growth; second, rate contributed 6%; third, mix contributed 2% to growth as more of our customers purchased more of our services and we saw continued shift to our white-colored verticals and average WSE volume for the year contributed approximately 2% to growth.

本季度專業服務收入同比增長 9%，符合我們的指引。全年，專業服務收入增長 18%，符合指引的上限。全年專業服務收入的增長是由幾個因素推動的。首先，HRIS 收入對同比增長貢獻了 7%；二是貢獻率6%；第三，混合對增長貢獻了 2%，因為我們的客戶購買了更多我們的服務，我們看到繼續轉向我們的白色垂直行業，全年平均 WSE 數量貢獻了約 2% 的增長。

For the fourth quarter, our insurance cost ratio was approximately 88% lower than our forecasted range for the quarter of 93% to 97%. For the full year, our insurance cost ratio was approximately 84%, also lower than our latest guidance range for the year of 85% to 86%, the lower insurance cost ratio for the quarter and year was largely driven by lower overall health utilization than forecast as well as a mix shift by our customers to lower cost regions. Workers' compensation contributed to the lower insurance cost ratio in the quarter and year as both claim frequency and severity remains subdued along with some favorable prior-period development. Both the health and workers' comp trends have benefited from the remote work trend.

對於第四季度，我們的保險成本比率比我們對該季度 93% 至 97% 的預測範圍低約 88%。全年，我們的保險成本比率約為 84%，也低於我們最新的年度指導範圍 85% 至 86%，本季度和年度較低的保險成本比率主要是由於整體健康利用率低於預測以及我們的客戶向低成本地區的混合轉移。工傷賠償導致本季度和本年度的保險成本比率較低，因為索賠頻率和嚴重程度都保持低迷，而且前期發展情況良好。健康和工人補償趨勢都受益於遠程工作趨勢。

Regarding operating expenses in the quarter, the year-over-year growth of 25% was substantially driven by our acquisition of Zenefits midway through the first quarter of 2022. We will begin to lap those expenses in the second quarter of 2023 and have integrated most functions at this time. When we purchased Zenefits, we knew it would not be accretive in the first few years, and we understood that there would be sizable integration and acquisition costs incurred in 2022, some of which will continue into 2023. As Burton mentioned earlier, we've been pleased with the technology and the capabilities it will bring as we fill in the product suite between our HRIS and our PEO solutions. One other notable expense item during Q4 was a $12 million charge for remaining lease obligations for office space we have vacated.

關於本季度的運營支出，25% 的同比增長主要得益於我們在 2022 年第一季度中期收購 Zenefits。我們將在 2023 年第二季度開始彌補這些支出，並整合了大部分此時起作用。當我們購買 Zenefits 時，我們知道它在最初幾年不會增加，我們知道到 2022 年會產生相當大的整合和收購成本，其中一些將持續到 2023 年。正如伯頓之前提到的，我們已經當我們在 HRIS 和 PEO 解決方案之間填充產品套件時，對它帶來的技術和功能感到滿意。第四季度的另一個值得注意的費用項目是我們騰出的辦公空間的剩餘租賃義務費用 1200 萬美元。

Moving on to earnings per share. Fourth quarter net income per diluted share exceeded the top end of our guidance by $0.71 to $0.78, down 24% year-over-year. The fourth quarter earnings outperformance versus our guidance was driven by lower than forecast insurance costs along with some minor expense favorability. The decline versus prior year reflects expenses, including acquisition and integration expenses incurred due to the acquisition of Zenefits. This brought full year GAAP net income per diluted share to $5.61, up 11% versus 2021.

轉向每股收益。第四季度每股攤薄淨收入超出我們指導的上限 0.71 美元至 0.78 美元，同比下降 24%。第四季度的收益表現優於我們的指導，是由於低於預期的保險成本以及一些較小的費用優惠。與上一年相比的下降反映了費用，包括因收購 Zenefits 而產生的收購和整合費用。這使全年 GAAP 每股攤薄淨收入達到 5.61 美元，比 2021 年增長 11%。

Fourth quarter adjusted net income per diluted share also exceeded guidance by $0.61 to $1.11, down 2% year-over-year. This brought full year adjusted net income per share to $7.07 up 25% versus 2021, outperforming the top end of guidance by $0.67. During the fourth quarter, we repurchased $139 million worth of stock including $109 million on a targeted $250 million tender offer. While the tender was undersubscribed, I was pleased at investors' confidence in our longer-term stock price. This brought our total repurchase to $519 million for the year, comprised of 2 tender offers as well as open market purchases.

第四季度調整後每股攤薄淨收益也超出預期 0.61 美元至 1.11 美元，同比下降 2%。這使全年調整後每股淨收入達到 7.07 美元，比 2021 年增長 25%，超出指導上限 0.67 美元。在第四季度，我們回購了價值 1.39 億美元的股票，其中包括目標為 2.5 億美元的要約收購中的 1.09 億美元。雖然投標認購不足，但我很高興投資者對我們的長期股價充滿信心。這使我們今年的回購總額達到 5.19 億美元，包括 2 個要約收購和公開市場購買。

Our capital priorities have not changed, and we will continue to invest for growth. We have confidence in our business and believe that our current share price, our stock provides significant value. Given the Board share repurchase reauthorization that Burton just mentioned, if it remains similarly undervalued, we intend to repurchase up to $500 million in 2023, subject to market conditions.

我們的資本優先事項沒有改變，我們將繼續投資以實現增長。我們對我們的業務充滿信心，並相信我們目前的股價，我們的股票提供了巨大的價值。考慮到 Burton 剛才提到的董事會股票回購再授權，如果它仍然同樣被低估，我們打算在 2023 年回購最多 5 億美元，視市場情況而定。

Now let's turn to our 2023 first quarter and full year outlook, where I will provide both GAAP and non-GAAP guidance. In the first quarter of 2023, we expect total revenue growth to be in the range of 1% to 2% year-over-year and professional service revenue growth to be in the range of 4% to 6% year-over-year. Our revenue growth guidance remains muted and reflects our expectation that the fourth quarter trend we saw in customer hiring or CIE, will persist into the first half of 2023. In Q1, we are planning for health care utilization to return closer to our priced for historical experience. This will result in an insurance cost ratio of between 83% to 86.5%, reflecting our seasonally higher ratios at the beginning of each year. This brings our estimate of first quarter GAAP net income per diluted share to be in the range of $1.33 to $1.82 per share and first quarter adjusted net income per diluted share to be in the range of $1.70 to $2.20 per share.

現在讓我們轉向我們的 2023 年第一季度和全年展望，我將在其中提供 GAAP 和非 GAAP 指導。在 2023 年第一季度，我們預計總收入同比增長 1% 至 2%，專業服務收入同比增長 4% 至 6%。我們的收入增長指引保持低迷，反映出我們預計第四季度客戶招聘或 CIE 趨勢將持續到 2023 年上半年。在第一季度，我們計劃將醫療保健利用率恢復到更接近我們歷史定價的水平經驗。這將導致保險成本比率在 83% 至 86.5% 之間，反映出我們每年年初的季節性較高比率。這使我們對第一季度 GAAP 每股攤薄淨收益的估計在每股 1.33 美元至 1.82 美元之間，第一季度調整後的每股攤薄淨收益在每股 1.70 美元至 2.20 美元之間。

Regarding our full year 2023 guidance, we are forecasting our year-over-year total revenue to be in a range of down 2% to up 2%, with our professional service revenue expected to grow between 1% and 5% year-over-year. We expect our insurance cost ratios to follow seasonal patterns and reflect historical utilization rates with favorable cost ratios in the first and second quarters as members work through deductibles, we then expect a return to higher insurance cost ratios in the third and fourth quarters as deductibles are exhausted as well as when pooling limits reset in October. With this trend, we expect our full year insurance cost ratio to be in the range of 87.5% to 89%. This insurance cost ratio projection is about 3 to 5 points higher than our 2022 results, reflecting health care utilization returning to a range closer to our expected pricing, higher utilization levels and higher provider costs given the inflationary environment.

關於我們的 2023 年全年指引，我們預計我們的總收入將同比下降 2% 至 2%，而我們的專業服務收入預計將同比增長 1% 至 5%年。我們預計我們的保險成本比率將遵循季節性模式，並在第一和第二季度以有利的成本比率反映歷史利用率，因為會員通過免賠額工作，然後我們預計第三和第四季度將恢復到更高的保險成本比率，因為免賠額是筋疲力盡，以及在 10 月份重新設置匯集限額時。在這種趨勢下，我們預計全年保險成本率將在 87.5% 至 89% 的範圍內。這一保險成本比率預測比我們 2022 年的結果高出約 3 到 5 個百分點，反映出在通脹環境下，醫療保健利用率恢復到更接近我們預期定價的範圍、更高的利用率水平和更高的提供者成本。

We will watch this closely throughout 2023 to assess any refinements needed as we determine quarterly pricing changes. As a rule of thumb, every 1 point movement in our 2023 expected ICR will translate into approximately $0.50 in adjusted EPS, given our slightly lower share count since 2022. Regarding our expectation around operating expenses, our expected remaining costs associated with the integration and acquisition of Zenefits and Clarus R+D include a number of time-based compensation awards, technology integration and rebranding amongst other things. We anticipate the remaining 2023 acquisition and integration costs to be $25 million to $30 million, with none extending beyond 2023.

我們將在整個 2023 年密切關注這一點，以評估在我們確定季度定價變化時需要進行的任何改進。根據經驗，鑑於我們自 2022 年以來的股票數量略有減少，我們 2023 年預期 ICR 每 1 點變動將轉化為調整後每股收益約 0.50 美元。關於我們對運營費用的預期，我們預計與整合和收購相關的剩餘成本Zenefits 和 Clarus R+D 的合作包括許多基於時間的薪酬獎勵、技術整合和品牌重塑等。我們預計 2023 年剩餘的收購和整合成本為 2500 萬至 3000 萬美元，且不會超過 2023 年。

Given these anticipated trends, we expect full year GAAP net income per diluted share to be in the range of $3.30 to $4.08 per share and adjusted net income per diluted share to be in the range of $4.85 to $5.65 per share. Our guidance includes share repurchases to offset normal dilution arising from stock compensation. Our guidance does not include any other intended repurchases under our current authorization due to the variability of repurchase timing and price.

鑑於這些預期趨勢，我們預計全年 GAAP 每股攤薄淨收益將在每股 3.30 美元至 4.08 美元之間，調整後的每股攤薄淨收益將在每股 4.85 美元至 5.65 美元之間。我們的指引包括股票回購以抵消股票補償引起的正常稀釋。由於回購時間和價格的可變性，我們的指導不包括我們當前授權下的任何其他預期回購。

With that, I will return the call to Burton for his closing remarks. Burton?

有了這個，我將把電話回給伯頓，讓他發表閉幕詞。伯頓？

Thank you, Kelly. I am pleased with TriNet's 2022 financial and operating performance, especially in light of the challenging economic backdrop for much of 2022. We believe we will grow new business meaningfully year-over-year in 2023. We will keep our customers longer by supporting them in the ways that they require in this new business environment. I want to thank the entire TriNet team, but specifically call out our sales force for an exceptional performance in January 2023. TriNet's future is a cloud-based company offering HRIS and PEO side by side, a technology-enabled business services company unlike any other in our industry.

謝謝你，凱利。我對 TriNet 2022 年的財務和運營業績感到滿意，尤其是考慮到 2022 年大部分時間經濟背景充滿挑戰。我們相信，我們將在 2023 年同比有意義地增長新業務。我們將通過支持客戶在他們在這個新的商業環境中需要的方式。我要感謝整個 TriNet 團隊，但特別要感謝我們的銷售團隊在 2023 年 1 月的出色表現。TriNet 的未來是一家基於雲的公司，同時提供 HRIS 和 PEO，這是一家與眾不同的技術支持的商業服務公司在我們的行業。

We will further differentiate ourselves by offering the SMBs in our target verticals and industry-leading user experience coupled with an efficient service offering and access to the finest benefits. With that, I look forward to your questions. Operator?

我們將通過在我們的目標垂直行業和行業領先的用戶體驗中為 SMB 提供高效的服務和獲得最大利益的途徑，進一步使自己脫穎而出。有了這個，我期待著你的問題。操作員？

(Operator Instructions)

（操作員說明）

And the first question will come from Tien-Tsin Huang with JPMorgan.

第一個問題將來自摩根大通的 Tien-Tsin Huang。

Burton, thanks for going through all the information including the January month as well. That was really good to hear. I wanted to ask just -- so as we're thinking about the fiscal '23 year here, you're looking for 1% to 5% professional services revenue growth. Can you maybe share some of the assumptions behind that, maybe across rate volume mix, that kind of thing, and that might be different versus '22? I know there's a lot of moving pieces, but just trying to bring it back up to the high level at the PS level?

伯頓，感謝您查看所有信息，包括一月份的信息。這真是太好了。我想問的是——當我們在這裡考慮 23 財年時，您正在尋找 1% 到 5% 的專業服務收入增長。您能否分享這背後的一些假設，也許是跨利率交易量組合，諸如此類，這可能與 22 年有所不同？我知道有很多動人的片段，但只是想把它恢復到 PS 級別的高水平？

Great. Tien-Tsin, it's Kelly. I'll be happy to take that. When I think about the assumptions we have underlying there, we're really pleased with January sales. So when I'm thinking about volume overall, pleased with sales, we think attrition is going to do better than it did in the prior year, but the wildcard there is really CIE. So that's really the driver of volume. Would you expect to get modest single-digit rate increases? And we will have 6 weeks more of Zenefits in the year for 2023 and have a full year at Clarus R+D, which we closed on September 1. So those are some of the major things that kind of breaking it between the volume and rate. Hopefully, that helps.

偉大的。天進，是凱莉。我很樂意接受。當我考慮我們在那裡的假設時，我們對 1 月份的銷售情況非常滿意。因此，當我考慮整體銷量時，對銷售感到滿意時，我們認為減員會比前一年做得更好，但通配符確實是 CIE。所以這真的是數量的驅動因素。您希望獲得適度的個位數加息嗎？到 2023 年，Zenefits 的年數將增加 6 週，Clarus R+D 將有一整年的時間，我們於 9 月 1 日關閉。因此，這些是在數量和比率之間打破它的一些主要因素.希望這會有所幫助。

It did. And just my quick follow-up. I know the new sales and the retention improving, both of you sound quite confident in that. I'm curious if we can think about just the cost to get there. Are you doing anything different in terms of investing in the dollar cost of getting retention up and picking up the new sales, it sounds like it's working so far in January. So just trying to understand the cost to get there.

它做了。只是我的快速跟進。我知道新的銷售量和保留率都在提高，你們倆聽起來都對此很有信心。我很好奇我們是否可以只考慮到達那裡的成本。在投資於提高保留率和獲得新銷售額的美元成本方面，您是否做了任何不同的事情，聽起來它在 1 月份到目前為止一直有效。所以只是想了解到達那裡的成本。

Yes. I mean what -- actually, the...

是的。我的意思是——實際上，...

So I'll start, Tien-Tsin. So to break it down, there's a couple of things going on. First, there's a secular trend towards the PEOs moving from fixed cost to variable costs. I'm hearing that our prospects like our transparency, I've talked for a couple of quarters about the marketing efforts, and they are driving significant incremental business, and that's in terms of more leads, qualified leads and it's becoming a real advantage. The third thing is -- and you kind of hit on it, which is that we have invested in customer service. So referrals are up year-over-year, and they close at a very high rate. And then finally, the execution on a per-rep basis is up. So I'll invest in new reps to continue or hopefully continue the same trend throughout the year.

所以我要開始了，Tien-Tsin。所以要分解它，有幾件事正在發生。首先，PEO 的長期趨勢是從固定成本轉向可變成本。我聽說我們的前景喜歡我們的透明度，我已經談了幾個季度的營銷工作，他們正在推動顯著的增量業務，而且就更多的潛在客戶、合格的潛在客戶而言，它正在成為一個真正的優勢。第三件事是——你有點中意了，那就是我們在客戶服務方面進行了投資。因此，推薦人數逐年增加，並且以非常高的速度關閉。最後，每個代表的執行結束了。因此，我將投資於新的銷售代表，以在全年繼續或希望繼續保持相同的趨勢。

Yes. Tien-Tsin, the thing I would add to that is we talked a lot earlier in the year in 2022 about what we invested in our sales process to improve the sales productivity. And now it's time to really make sure we've got the capacity to be able to take advantage of those. We're going to fund it through efficiencies within the company. Expenses will grow at a single-digit rate, but we will fund it through other expenses and really focus on growth.

是的。 Tien-Tsin，我要補充的是，我們在 2022 年早些時候談了很多關於我們在銷售流程中投資以提高銷售生產力的內容。現在是時候真正確保我們有能力利用這些優勢了。我們將通過公司內部的效率為其提供資金。費用將以個位數的速度增長，但我們將通過其他費用為其提供資金，並真正專注於增長。

Your next question will come from Jared Levine with Cowen.

你的下一個問題將來自 Jared Levine 和 Cowen。

In terms of the demand environment, have you seen any change in the pace of prospective client decision-making, whether within the PEO or Zenefits business since you last reported?

在需求環境方面，自您上次報告以來，無論是在 PEO 還是 Zenefits 業務中，您是否發現潛在客戶決策速度有任何變化？

So thanks for the question. I'll take that in 2 different directions. We're speaking to our customers on a regular basis as well as our prospects and at the end of the day, they are struggling in the current economy. They do see a real advantage to the PEO model, where the variable cost model works much better than a fixed cost model in an uncertain environment. We have not seen a delay in the decision process from a qualified lead first meeting to the close. And our close rates right now are up. What I can tell you is, since we're doing a lot more enrichment upfront, meaning understanding the propensity to buy -- is it because we're targeting the right prospects that close? Is it the efficiency of the sales organization or a change in the economic environment with business?

所以謝謝你的問題。我會從兩個不同的方向來看待它。我們定期與我們的客戶以及我們的前景交談，最終，他們在當前的經濟中苦苦掙扎。他們確實看到了 PEO 模型的真正優勢，可變成本模型在不確定的環境中比固定成本模型更有效。從合格的牽頭第一次會議到結束，我們沒有看到決策過程出現延遲。我們現在的收盤價上升了。我可以告訴你的是，因為我們在前期做了更多的豐富，這意味著了解購買傾向——是因為我們瞄準了正確的潛在客戶嗎？是銷售組織的效率還是經濟環境隨業務的變化？

Great. And then interest income was up pretty notably in 4Q. Can you shed some light on your interest income expectations that were embedded within that fiscal '23 revenue guide -- or excuse me, EPS guide?

偉大的。然後利息收入在第四季度顯著上升。您能否闡明您在 23 財年收入指南中嵌入的利息收入預期 - 或者對不起，EPS 指南？

Happy to do that, Jared. We are -- we did reposition part of our portfolio in the third quarter. You saw us taking a little bit of capital losses during the third quarter. We're taking advantage. And really what we're assuming as interest rates stay at about the level that they're at right now in our short-term portfolio.

很高興這樣做，賈里德。我們是 - 我們確實在第三季度重新定位了我們投資組合的一部分。你看到我們在第三季度出現了一些資本損失。我們正在利用。實際上，我們假設利率保持在我們短期投資組合中目前的水平。

If I can sneak in one more real quickly on Zenefits. What are you assuming for revenue contribution for '23? And how should this margin for FY '23 compared to what you experienced in '22 here?

如果我能在 Zenefits 上快速偷偷再買一件的話。您假設 23 年的收入貢獻是什麼？與您在這裡的 22 年經歷相比，23 財年的利潤率應該如何？

On Zenefits, the contribution is roughly $50 million. It's the expected revenue contribution from Zenefits for 2023. So up single-digit level from this year. In terms of margin, we haven't anticipated Zenefits to be accretive in the second year of owning them, but we are improving that. And we've almost finished all the integration activities. We will be spending between $25 million and $30 million for both Zenefits and Clarus R+D and acquisition and integration costs, including branding and a few other. We have some retention plans that will run out throughout the year as well.

在 Zenefits 上，捐款約為 5000 萬美元。這是 Zenefits 對 2023 年的預期收入貢獻。所以比今年提高個位數水平。在利潤率方面，我們沒有預料到 Zenefits 在擁有它們的第二年會增加，但我們正在改善這一點。我們幾乎完成了所有的整合活動。我們將花費 2500 萬至 3000 萬美元用於 Zenefits 和 Clarus 的研發以及收購和整合成本，包括品牌和其他一些成本。我們有一些保留計劃也將在全年結束。

(Operator Instructions) Our next question will come from Andrew Nicholas with William Blair.

（操作員說明）我們的下一個問題將來自安德魯尼古拉斯和威廉布萊爾。

First question, I just wanted to dive in a little bit to the first analyst question on kind of what's embedded in professional services guidance. Burton, you kind of broke down the drivers of volume growth. And it seems like across all 3 of those factors, there's room for improvement or some conservatism. I'm just I'm trying to get a sense for how much of that improvement is baked into the guide? Is -- are you kind of extrapolating some of the improvements that you saw in new sales and retention rates in January? Or is that kind of the top end of the guide? Just trying to figure out how much of this is baked in versus not?

第一個問題，我只想深入探討第一個分析師問題，即專業服務指南中包含的內容。伯頓，你有點打破了銷量增長的驅動力。似乎在所有這 3 個因素中，都有改進或保守主義的空間。我只是想了解指南中包含了多少改進？是 - 您是否在推斷 1 月份在新銷售和保留率方面看到的一些改進？還是那種指南的頂端？只是想弄清楚其中有多少是烘烤的，而不是烘烤的？

Yes. No, it's a great question. Let me start, and I'll turn it over to Kelly. A significant amount of the new business comes in, in the first quarter because of new W2s restarting medical plans, et cetera. So the trend of the first quarter really determines the year. So some of my excitement or bullishness about the new sales is because of the performance in January. So you're correct there. Also, the largest single month of attrition, which impacts retention, obviously, is January 1 because the converse happens. If somebody is going to start a new plan with a new company, they leave at the end of the year.

是的。不，這是一個很好的問題。讓我開始，我會把它交給凱利。由於新的 W2 重新啟動醫療計劃等，第一季度有大量新業務進入。所以一季度的走勢真的決定了全年。因此，我對新銷售的一些興奮或樂觀是因為 1 月份的表現。所以你是對的。此外，影響保留率的最大單月流失顯然是 1 月 1 日，因為恰恰相反。如果有人打算在一家新公司開始一項新計劃，他們會在年底離開。

With retention up in January with new sales significantly up in January, that sort of where I am comfortable with the overall guidance at both ends. Honestly, the biggest variable is the change in existing. There really is a tale of two worlds there. When I talk to my customers, when I send them surveys, they still expect to grow significantly in 2023. This is not what I'm seeing. So from my vantage point, the variability in the guidance is based on CIE mainly, but I'll turn it to Kelly.

隨著 1 月份的保留率和 1 月份新銷售額的顯著增長，我對兩端的總體指導感到滿意。老實說，最大的變數是現有的變化。那裡真的有兩個世界的故事。當我與客戶交談時，當我向他們發送調查時，他們仍然期望在 2023 年實現顯著增長。這不是我所看到的。因此，從我的角度來看，指南的可變性主要基於 CIE，但我會轉向 Kelly。

Yes. I'll just build on what Burton said, Andrew. When I think about the CIE component, the top end of our guidance really includes a couple of points lower than our 10-year historical average. So looking at the last 10 years, even if I took both 2020 and 2021, which were extraordinary in either way on CIE, one was extraordinary low, one was extraordinarily high. We're forecasting at the top end a few points lower than that historical average. At the bottom end, we're forecasting positive CIE, but really at about half of what our historical average has been.

是的。我將以伯頓所說的為基礎，安德魯。當我考慮 CIE 部分時，我們指導的最高端確實包括比我們 10 年曆史平均水平低幾個點。所以看看過去 10 年，即使我同時選擇了 2020 年和 2021 年，這兩個年份在 CIE 上都非常出色，一個非常低，一個非常高。我們預測高端會比歷史平均水平低幾個點。在底部，我們預測 CIE 為正，但實際上是我們歷史平均水平的一半左右。

That's really helpful. Maybe a couple more, and I hate to spend too much time on guidance, but if you want to talk about the ICR, a little bit more. I mean the last couple of years, you started at a much higher level or I guess, lower spread, depending on how you look at that metric. Just curious what gives you more conviction at the outset of the year that you can be a little bit more profitable in that business in '23 relative to kind of your starting point in the last handful of years?

這真的很有幫助。也許再多一些，我不想在指導上花太多時間，但如果你想談談 ICR，那就再多一點。我的意思是，在過去的幾年裡，你從一個更高的水平開始，或者我猜，更低的價差，這取決於你如何看待這個指標。只是好奇是什麼讓你在年初更有信心，相對於過去幾年的起點，你可以在 23 年的那項業務中獲得更多利潤？

Really, when I think about the insurance cost ratio, we do continue to price it to risk. We watch trends as we come as we're leaning into the year. We've seen favorability on our workers' comp book just given the trend to remote work. Regarding health, there is still a level of uncertainty associated with it, given providers, renegotiating price, nurse costs, et cetera, et cetera. But we're comfortable with the range just given the fact that we set pricing many months in advance as we're evaluating those trends, and we'll continue to watch it. So we've seen utilization come up, absolutely. It just didn't come up as much in 2022 as we had changed pricing. So we're really trying to refine that and give our clients the best offering possible, but making sure that we're covering it. So it's our best view at this point in time.

真的，當我考慮保險成本比率時，我們確實繼續將其定價為風險。臨近這一年，我們會觀察趨勢。考慮到遠程工作的趨勢，我們已經看到我們員工的薪酬簿受到青睞。關於健康，考慮到提供者、重新談判價格、護士成本等等，仍然存在一定程度的不確定性。但我們對這個範圍感到滿意，因為我們在評估這些趨勢時提前幾個月設定了價格，我們將繼續關注它。所以我們絕對看到了利用率的提高。它只是在 2022 年沒有像我們改變定價那樣出現那麼多。因此，我們真的在努力完善它並為我們的客戶提供盡可能最好的產品，但要確保我們涵蓋它。所以這是我們目前最好的觀點。

Great. And then if I could just ask one more. I wanted to go back to Burton, in your prepared remarks, you talked about and inability to take advantage of the opportunity because of the lack of sales capacity. I'm just kind of wondering what would you -- how would you describe kind of getting to that point? Is it higher-than-expected attrition within your own sales force? Or was it maybe not anticipating as much explosive growth in your end markets as maybe you've seen over the past couple of years? Just trying to figure out what got to that point and maybe what your conviction is on the ability to turn that around?

偉大的。然後我能不能再問一個。我想回到伯頓，在你準備好的發言中，你談到了由於缺乏銷售能力而無法利用這個機會。我只是想知道你會如何 - 你會如何描述達到這一點？您自己的銷售人員的流失率是否高於預期？還是它可能沒有預料到您的終端市場會像您在過去幾年中看到的那樣爆炸式增長？只是想弄清楚是什麼導致了這一點，也許您對扭轉這種局面的能力有何信念？

Yes, no problem. So good question. Look, again, there is a secular trend towards PEO. So the opportunity is strong. We've talked about the unpenetrated market. I talked about that. And what we were really looking for last year was to get to a level of sales productivity that we could continue to invest in net new salespeople that could be successful. Now there's a lot of things that go into that. Part of it is the ability to generate qualified leads, brand recognitions, penetration by vertical, leadership and sales in the field, ability to quote properly upfront and probably five other things that I'm not mentioning.

是沒有問題。好問題。再看一次，PEO 有長期趨勢。所以機會很大。我們已經談到了未滲透的市場。我談到了那個。去年我們真正想要的是達到一定的銷售生產力水平，我們可以繼續投資於可能成功的淨新銷售人員。現在有很多事情涉及到這一點。其中一部分是產生合格線索的能力、品牌知名度、垂直領域的滲透、領導力和銷售、預先正確報價的能力以及我可能沒有提到的其他五件事。

By the end of the year, it became clear that sales productivity was at a level that if January was successful, we could start to turn on the spigot for net new reps and believe that we had a model, which would provide them with a strong territory and opportunity. And by the way, this is not going outside of our core verticals. I am not now going into business I didn't want before. This is our core verticals, geographic penetration, good leadership and hopefully, a repeatable model. As we hire reps, and are able to keep an acceptable level of productivity, we will continue the hiring throughout 2023.

到年底，很明顯，銷售效率達到了一個水平，如果 1 月取得成功，我們就可以開始為淨新銷售代表打開水龍頭，並相信我們有一個模型，可以為他們提供強大的領土和機會。順便說一句，這並沒有超出我們的核心垂直領域。我現在不會從事我以前不想做的生意。這是我們的核心垂直領域、地理滲透、良好的領導力，希望是一個可重複的模型。由於我們聘請了銷售代表，並且能夠保持可接受的生產力水平，我們將在 2023 年繼續招聘。

(Operator Instructions) Our next question will come from David Grossman with Stifel.

（操作員說明）我們的下一個問題將來自 Stifel 的 David Grossman。

I think you said this during the prepared remarks, and I may have missed it, but what is the rate contribution to 2023 growth versus what you experienced in 2022? And that can include mix also. Just kind of curious.

我想你在準備好的發言中說過這個，我可能沒有註意到，但與你在 2022 年經歷的相比，對 2023 年增長的貢獻率是多少？這也可以包括混合。只是有點好奇。

Yes. I don't think I did say it in my prepared remarks, and actually, I don't have that at my fingertips right here, David. But really, when I think about the rate is low single-digit improvement year-over-year mix. I think mix is about even. We were pleased with the mix that we saw in 2022, with strength in our strong verticals and volume is a smaller contributor.

是的。我不認為我在準備好的發言中確實說過，事實上，大衛，我手邊沒有這些。但實際上，當我想到這個比率是低個位數的同比改善組合時。我認為混合是均勻的。我們對我們在 2022 年看到的組合感到滿意，我們強大的垂直領域具有實力，而銷量是一個較小的貢獻者。

I'm sorry, what was that on volume, Kelly? .

對不起，凱利，音量是多少？ .

It was a smaller contributor, just given the fact we are starting off with a lower base.

這是一個較小的貢獻者，只是考慮到我們從較低的基數開始。

Right. And just on volume, I think, Burton, if I heard you right, you said after this year, you're hoping to grow new that sort of WSEs, high single digits or low double digits. So if I heard that right, I don't recall the company ever really exceeding mid-single-digit growth in WSEs. So I hear what you're saying about the sales force and productivity, but is that enough for loans to really kind of achieve that kind of turnaround?

正確的。就數量而言，我想，伯頓，如果我沒聽錯的話，你說今年之後，你希望增加新的那種 WSE，高個位數或低兩位數。因此，如果我沒聽錯的話，我不記得該公司在 WSE 中的增長真的超過了中個位數。所以我聽到你在談論銷售人員和生產力，但這足以讓貸款真正實現那種轉變嗎？

So David, it's a great question. I am proud of our strong revenue and profit growth, particularly over the last 5 years, consistently, and I hear the focus on growing profitable WSEs. I am going to build that sales force to take advantage of the market opportunity to grow WSEs as the years go at a higher rate. The message is clear. So from my standpoint, I'm not going to sacrifice our revenue and profit growth, and I've been pretty resolved in that over the last 5 years. But the message I'm trying to give you is I'm going to build that capacity so that the WSE growth occurs in these out years.

所以大衛，這是一個很好的問題。我為我們強勁的收入和利潤增長感到自豪，尤其是在過去的 5 年裡，一直如此，而且我聽到了對增長盈利 WSE 的關注。隨著歲月的流逝，我將建立這支銷售隊伍，以利用市場機會來發展 WSE。信息很明確。所以從我的角度來看，我不會犧牲我們的收入和利潤增長，而且在過去的 5 年裡我已經下定決心了。但我想給你的信息是，我將建立這種能力，以便 WSE 在這些年內實現增長。

Just if the sales productivity is at the level -- I think if I heard you right, you feel comfortable that you kind of achieved what you set out in 2022, which is to get those sales productivity levels at a point where you could hire. So even with a down or flat to down in the economy, should we expect you to be adding materially to the sales headcount in 2023?

只要銷售生產力達到這個水平——我想如果我沒聽錯的話，你會感到很自在，因為你在某種程度上實現了你在 2022 年設定的目標，即讓這些銷售生產力水平達到你可以僱傭的水平。因此，即使經濟下滑或持平或下滑，我們是否應該期望您在 2023 年大幅增加銷售人數？

David, let me take that. I view that as an expense question. We do plan on adding quota-carrying sales reps at the front office to increase the capacity. We did invest a lot in productivity, and that investment has to pay off this year. We're going to fund it through efficiency elsewhere. We're really putting all of our energies and making sure we're growing profitable WSEs. So that's really where we're rotating this year. We're trying to make sure that everyone is leaning in and we're going to be able to grow our business.

大衛，讓我拿走那個。我認為這是一個費用問題。我們確實計劃在前台增加配額銷售代表以增加容量。我們確實在生產力方面投入了大量資金，而這些投資今年必須得到回報。我們將通過其他地方的效率為其提供資金。我們確實投入了所有精力，並確保我們正在發展盈利的 WSE。所以這真的是我們今年輪換的地方。我們正在努力確保每個人都在努力，我們將能夠發展我們的業務。

Right. And just one last question. Just a (inaudible) I think this has kind of come up over the years at different points in time. But I believe it's hard to compare your model to some of the other Tier 1 providers because you're an at-risk provider, if you will, of health insurance. So how do you guys look at that internally or at the board level when people are comparing your unit growth rate to your Tier 1 peers, given that you are at-risk, which has different implications in terms of how much unit volume you can take on at a point in time?

正確的。還有最後一個問題。只是（聽不清）我認為多年來在不同的時間點出現了這種情況。但我認為很難將您的模型與其他一些 1 級提供商進行比較，因為如果您願意的話，您是一個有風險的醫療保險提供商。那麼，當人們將你的單位增長率與你的一級同行進行比較時，你們如何看待內部或董事會層面，因為你處於風險之中，這對你可以採取多少單位數量有不同的影響在某個時間點？

I would say my Board is consistent with my position, David, that strong revenue growth and profit growth is the long-term focus of the company consistently executing and meeting and beating the plan on a regular basis has been the focus. So I am not going to sacrifice that for WSE growth, but I will be taking WSE growth to the forefront as we execute the plan over the next couple of years.

我會說我的董事會與我的立場一致，大衛，強勁的收入增長和利潤增長是公司持續執行的長期重點，定期會議和擊敗計劃一直是重點。因此，我不會為了 WSE 的增長而犧牲這一點，但在我們未來幾年執行該計劃時，我將把 WSE 的增長放在首位。

Yes. I guess what I'm asking, Burton, though, is that just if you just look at the business model, it's different. And so if it is different, shouldn't -- and the focus to your point is on margin, which you've definitely demonstrated that you can operate this at-risk model in the last several years. But I think with that, you're not as free though, to drive unit volume growth because of that. So I was just really -- the question was more, is there any kind of rule of thumb or anything you want us to take away in terms of kind of what your unit growth should be relative to those Tier 1 peers given the differences in the model?

是的。不過，伯頓，我想我要問的是，如果你只看商業模式，就會發現它是不同的。因此，如果它不同，則不應該——你的重點是保證金，你已經明確證明你可以在過去幾年中運行這種風險模型。但我認為，儘管如此，你並沒有那麼自由地推動單位銷量增長。所以我真的 - 問題是更多，是否有任何經驗法則或任何你希望我們帶走的東西，關於你的單位增長應該相對於那些 1 級同行，考慮到差異模型？

So I'm not comparing myself to anybody else. I believe I'm going to answer it two ways. Hopefully, this will help. One is I have a vertical strategy. The markets are not penetrated significantly and I don't see that as a limiter to my growth. That's sort of number one. And number two is, we have invested heavily in the go-to-market strategy, whether it be marketing or the back office transformation. As Kelly said, one of the outcomes in January was all the work that we did last year, and by the way, the investment we made last year.

所以我不會將自己與其他任何人進行比較。我相信我會用兩種方式來回答這個問題。希望這會有所幫助。一是我有一個垂直戰略。市場滲透率不高，我不認為這是我成長的限制因素。那是第一。第二，我們在進入市場戰略上投入了大量資金，無論是營銷還是後台轉型。正如凱利所說，一月份的成果之一是我們去年所做的所有工作，順便說一下，我們去年進行的投資。

Right. Right. And can you give us -- given the importance of January, can you give us any concrete metrics on what it looked like in terms of win rates or -- whatever the key metrics that you're looking at?

正確的。正確的。你能不能給我們——考慮到一月份的重要性，你能給我們任何關於獲勝率的具體指標嗎？

So as I said, the year-over-year WSE and ACV annual contract growth was 35%. As the first quarter is about 40% of the year's new ACV. So that's where the question around the confidence in the year comes from. The win rates were up. The add-backs were significant and the focus on not only our core verticals, David, but the in-target accounts within those core verticals was significant. The overall size of the customer was good right in the range that I like. And overall, it was pretty strong across the company. That's the -- if you look at a geography, East Coast and West Coast.

正如我所說，WSE 和 ACV 年度合同同比增長 35%。由於第一季度約佔全年新增 ACV 的 40%。這就是圍繞今年信心的問題的來源。獲勝率上升了。增加是重要的，不僅關注我們的核心垂直領域，大衛，而且這些核心垂直領域內的目標客戶也很重要。客戶的整體規模在我喜歡的範圍內很好。總的來說，它在整個公司都非常強大。那就是——如果你看一下地理、東海岸和西海岸。

This concludes our question-and-answer session as well as our conference call for today. Thank you for attending today's presentation, and you may now disconnect.

我們的問答環節和今天的電話會議到此結束。感謝您參加今天的演講，您現在可以斷開連接了。