TriNet Group Inc (TNET) 2023 Q1 法說會逐字稿

Good afternoon and welcome to the TriNet First Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note, this event is being recorded.

下午好，歡迎來到 TriNet 2023 年第一季度收益電話會議。 （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 Alex Bauer, Head of Investor Relations. Please go ahead.

我現在想將會議轉交給投資者關係主管 Alex Bauer。請繼續。

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 2023 First Quarter Conference Call. I'm 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 2023 年第一季度電話會議。今天，我們的首席執行官 Burton M. Goldfield 加入了我的行列；以及我們的首席財務官 Kelly Tuminelli。

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 second 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 年第二季度和全年財務展望，以及其他非歷史性質的陳述本質上是預測性的，或者取決於或參考未來事件或條件，例如我們的預期、估計、預測、可能被視為前瞻性的戰略、信念或其他陳述。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我們的股票。

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'll 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. I am particularly pleased with our first quarter financial results, which exceeded the top end of our guidance. Importantly, we delivered strong operating performance by making progress on several of the key TriNet initiatives.

謝謝你，亞歷克斯。我對我們第一季度的財務業績特別滿意，它超出了我們指導的上限。重要的是，我們通過在幾個關鍵的 TriNet 計劃上取得進展，提供了強勁的運營績效。

Customer retention increased by 3 points year-over-year. New sales improved 20% year-over-year. Disciplined expense management, coupled with our revenue performance, translated to outperformance in earnings.

客戶保留率同比增長 3 個百分點。新銷售額同比增長 20%。紀律嚴明的費用管理，加上我們的收入表現，轉化為優異的收益表現。

Additionally, I am proud of the TriNet team for their execution with respect to the regional bank crisis and Silicon Valley Bank receivership. TriNet processes over $70 billion in payroll annually. We use our scale, including our long-term banking relationships, in service of our impacted customers. We did not miss a single payroll deadline. The TriNet team of over 3,000 colleagues is prepared for the unexpected, which benefits our customers and highlights the impact of our partnerships.

此外，我為 TriNet 團隊在區域銀行危機和矽谷銀行接管方面的執行力感到自豪。 TriNet 每年處理超過 700 億美元的工資單。我們利用我們的規模，包括我們的長期銀行關係，為受影響的客戶提供服務。我們沒有錯過任何一次發薪截止日期。由 3,000 多名同事組成的 TriNet 團隊為意外情況做好了準備，這使我們的客戶受益並突出了我們合作夥伴關係的影響。

During the first quarter, revenue remained healthy. Professional service revenues grew 6% year-over-year and total revenues grew 2% year-over-year, both at the top end of our guidance. In the first quarter, GAAP earnings per share declined 2% year-over-year, outperforming guidance by $0.35; while adjusted net income per share also declined 2%, outperforming guidance by $0.29.

第一季度，收入保持健康。專業服務收入同比增長 6%，總收入同比增長 2%，均處於我們指引的頂端。第一季度，GAAP 每股收益同比下降 2%，超出預期 0.35 美元；而調整後的每股淨收入也下降了 2%，超出預期 0.29 美元。

Finally, we finished the first quarter with 328,000 ending WSEs. As outlined on our last call, our WSE volume is driven by 3 factors: retention, new sales and hiring in our installed base.

最後，我們在第一季度結束時完成了 328,000 個 WSE。正如我們在上次電話會議中概述的那樣，我們的 WSE 數量由 3 個因素驅動：保留、新銷售和我們已安裝基礎的招聘。

Beginning with retention, we saw a 3-point year-over-year improvement in our retention rate in the first quarter. This was driven by a few factors. The large company attrition trend we experienced last year has abated. NPS scores continue to improve, in part driven by the rollout of our tiered customer service offering, which contributes to the reduced attrition.

從留存率開始，第一季度我們的留存率同比提高了 3 個百分點。這是由幾個因素驅動的。我們去年經歷的大公司流失趨勢已經減弱。 NPS 分數繼續提高，部分原因是我們推出了分層客戶服務產品，這有助於減少人員流失。

Finally, the scale of TriNet, including our incremental product offerings, offers value in ways that ultimately improve retention. These products, including Clarus R+D, our in-house tax credit service, are gaining traction. A good example of this value is embodied in a tax study done for our PEO customer, Voyant Photonics. Voyant Photonics is a company that creates chip-scale LiDAR 3D sensing technology used for a variety of applications, including autonomous vehicles, drones, robotics and factory automation. This company has allocated significant capital towards R&D while building its innovative and industry-leading products. Voyant leveraged TriNet Clarus R+D to complete a study, which yielded a tax credit greater than $300,000 in Q1.

最後，TriNet 的規模（包括我們的增量產品供應）以最終提高保留率的方式提供價值。這些產品，包括我們的內部稅收抵免服務 Clarus R+D，正在獲得關注。這種價值的一個很好的例子體現在為我們的 PEO 客戶 Voyant Photonics 所做的稅收研究中。 Voyant Photonics 是一家創建用於各種應用的芯片級 LiDAR 3D 傳感技術的公司，包括自動駕駛汽車、無人機、機器人和工廠自動化。該公司在打造其創新和行業領先的產品的同時，為研發投入了大量資金。 Voyant 利用 TriNet Clarus R+D 完成了一項研究，該研究在第一季度產生了超過 300,000 美元的稅收抵免。

Since adding the Clarus R+D product to the TriNet product offering, the average size of the tax credit captured on behalf of our customers has increased by 92%. We are expanding the Clarus R+D market reach to include our dynamic verticals, such as technology and life sciences.

自從將 Clarus R+D 產品添加到 TriNet 產品系列以來，代表我們客戶獲得的稅收抵免的平均規模增加了 92%。我們正在擴大 Clarus R+D 市場範圍，以包括我們的動態垂直領域，例如技術和生命科學。

In summary, we are very pleased with our customer retention in Q1 and expect this improved retention to continue throughout 2023.

總而言之，我們對第一季度的客戶保留率感到非常滿意，並預計這種改進的保留率將持續到整個 2023 年。

Turning to new sales. We grew net new ACV by 20% year-over-year in the quarter. This is particularly exciting due to the fact that Q1 historically represents approximately 40% of our overall net new business for the year. As previously discussed, we have prioritized spend to drive new sales growth in our core verticals for 2023 and beyond. This includes investing today to expand our sales organization to drive growth in future years. This decision to invest now is based on increased rep productivity, success and scalability of the lead generation and lead scoring processes as well as an increased win rate on quotes delivered to prospects.

轉向新的銷售。本季度我們的淨新 ACV 同比增長 20%。這尤其令人興奮，因為從歷史上看，第一季度約占我們全年淨新業務總量的 40%。如前所述，我們已優先考慮支出以推動 2023 年及以後核心垂直領域的新銷售增長。這包括今天投資擴大我們的銷售組織，以推動未來幾年的增長。這個現在投資的決定是基於銷售代表生產力的提高、潛在客戶生成和潛在客戶評分流程的成功和可擴展性，以及提供給潛在客戶的報價的贏率增加。

Returning to new sales in the quarter. Our improved overall sales performance was driven by 2 key factors: our maturing and stable sales force and our overperformance in marketing-sourced closed opportunities. I am confident that the investment in our sales organization as well as our vertical strategy will continue to deliver strong results. I look forward to updating you on the progress with respect to sales on the Q2 call.

返回本季度的新銷售。我們改善的整體銷售業績是由兩個關鍵因素推動的：我們成熟穩定的銷售隊伍以及我們在營銷來源的封閉機會中的超常表現。我相信對我們銷售組織的投資以及我們的垂直戰略將繼續帶來強勁的成果。我期待著在第二季度電話會議上向您通報有關銷售的最新進展。

The third element of our WSE volume algorithm is CIE, or change in existing, sometimes referred to as customer net hiring. In the first quarter, this metric was slightly down quarter-over-quarter and down significantly year-over-year. The difficult economic environment, particularly in the technology vertical, continued in the first quarter, dampening our overall net customer hiring.

我們 WSE 數量算法的第三個元素是 CIE，或現有的變化，有時稱為客戶淨招聘。在第一季度，該指標環比略有下降，同比大幅下降。困難的經濟環境，特別是在垂直技術領域，在第一季度繼續存在，抑制了我們的整體淨客戶招聘。

I want to make 2 important points about the customer hiring or CIE. First, we chose to pursue customers in very specific verticals across a broad range of key industries. We do this with the knowledge that these customers generate the highest customer lifetime value, which include higher-than-average CIE over the long term. We believe that when the business cycle recovers, we will benefit from strong customer net hiring.

我想就客戶招聘或 CIE 提出兩點要點。首先，我們選擇在廣泛的關鍵行業中尋找非常具體的垂直領域的客戶。我們這樣做是因為我們知道這些客戶產生了最高的客戶生命週期價值，其中包括長期高於平均水平的 CIE。我們相信，當商業周期復蘇時，我們將受益於強勁的客戶淨招聘。

The second point is that while net hiring is down in the quarter, we do not see uniform pressure across all companies in any specific vertical. An example specifically related to our technology sector is that when you unpack the net CIE performance, about half of our technology customers are still hiring while the other half have reduced staff. Tech companies between 10 and 50 employees are, on average, growing while larger companies are not. I believe what we are seeing is VCs and management teams rationalizing their investments with respect to employees in the face of a challenging economic environment. This will ultimately lead to stronger, faster-growing companies in the future.

第二點是，雖然本季度淨招聘人數有所下降，但我們並未看到任何特定垂直領域的所有公司都面臨同樣的壓力。一個與我們的技術部門特別相關的例子是，當你打開 CIE 淨績效時，我們大約一半的技術客戶仍在招聘，而另一半則裁員。平均而言，擁有 10 到 50 名員工的科技公司正在增長，而較大的公司則沒有。我相信我們看到的是，面對充滿挑戰的經濟環境，風險投資公司和管理團隊正在合理化他們對員工的投資。這最終將導致未來更強大、發展更快的公司。

Additionally, as we reviewed CIE performance in the month of March, we saw stronger net hiring across our installed base. In fact, hiring in March was the strongest month we have experienced since July of 2022. One month's performance does not make a trend, and we will continue to watch closely as the CIE picture becomes clearer throughout the year.

此外，當我們回顧 3 月份的 CIE 表現時，我們發現我們已安裝的基礎上的淨招聘人數有所增加。事實上，3 月的招聘是我們自 2022 年 7 月以來經歷的最強勁的一個月。一個月的表現並沒有形成趨勢，隨著 CIE 全年的情況變得更加清晰，我們將繼續密切關注。

We believe that now, more than ever, SMBs need help from TriNet based on the economic, legal and regulatory environment. In support of our growth aspirations, TriNet recently launched our new brand identity in conjunction with our People Matters marketing campaign. Our new brand identity underscores our commitment to the growth and innovation of SMBs and the people behind them. This omnichannel marketing campaign will include TV, radio, digital and out-of-home primarily focused in New York; Los Angeles; San Francisco; Washington, D.C.; and Boston markets. We are aggressively marketing the full impact of TriNet's value, including our broad suite of products.

我們相信，現在，中小企業比以往任何時候都更需要 TriNet 基於經濟、法律和監管環境的幫助。為了支持我們的增長願望，TriNet 最近推出了我們的新品牌標識以及我們的 People Matters 營銷活動。我們的新品牌標識強調了我們對 SMB 及其背後人員的成長和創新的承諾。這項全渠道營銷活動將包括主要集中在紐約的電視、廣播、數字和戶外活動；洛杉磯;舊金山;華盛頓特區。;和波士頓市場。我們正在積極營銷 TriNet 價值的全部影響，包括我們廣泛的產品套件。

This is not the time to slow down. A year ago, we acquired Zenefits and have now completed the full integration, which includes this new brand identity. As we reflect on the acquisition after 1 year, we are pleased with the progress being made. We added a talented team who share our passion for the SMB market. The legacy Zenefits team is playing important roles in our digital transformation, and we are excited for our future product releases.

現在不是放慢速度的時候。一年前，我們收購了 Zenefits，現在已經完成了全面整合，其中包括這個新的品牌標識。當我們回顧 1 年後的收購時，我們對所取得的進展感到滿意。我們增加了一支才華橫溢的團隊，他們與我們一樣對 SMB 市場充滿熱情。遺留的 Zenefits 團隊在我們的數字化轉型中發揮著重要作用，我們對未來的產品發布感到興奮。

On January 1, we went live on boarding new customers to our TriNet integrated open-market product. This product pairs the PEO model with open-market benefits and leverages the legacy Zenefits benefit administration and digital brokerage tools. This is an example of a product release combining the best of HRIS and PEO to create a new and better product.

1 月 1 日，我們開始讓新客戶使用我們的 TriNet 集成公開市場產品。該產品將 PEO 模型與公開市場福利相結合，並利用了傳統的 Zenefits 福利管理和數字經紀工具。這是產品發布的一個例子，它結合了 HRIS 和 PEO 的優點來創建一個新的更好的產品。

Finally, we now offer a barbell of products and services with HRIS on one end and PEO on the other, which we will continue to expand over time. We continue to work on our go-to-market strategy with respect to our HRIS product, but in general, we feel optimistic about its future in the context of our suite of products.

最後，我們現在提供一系列產品和服務，一方面是 HRIS，另一方面是 PEO，我們將隨著時間的推移繼續擴展。我們繼續致力於我們的 HRIS 產品的上市戰略，但總的來說，我們對我們的產品套件的未來感到樂觀。

Over the last 3 years, the velocity of changes in the workplace has accelerated. This fast pace is difficult to navigate for small- and medium-sized businesses who are focused on their own important mission.

在過去 3 年中，工作場所的變化速度加快了。對於專注於自己重要使命的中小型企業來說，這種快節奏很難駕馭。

Before passing the call to Kelly for a review of our financials, I would like to talk to you about the McCarton Foundation. Their growth and change over the past 3 years is nothing short of phenomenal, and their story will show you how TriNet uses its scale for the benefit of our customers.

在將電話轉給凱利審查我們的財務狀況之前，我想和您談談麥卡頓基金會。他們在過去 3 年的成長和變化是驚人的，他們的故事將向您展示 TriNet 如何利用其規模造福我們的客戶。

The McCarton Foundation is a New York-based non-profit organization on a mission to change the course of lives. They bring exceptional early treatment and therapy to children with autism living in underserved communities. With TriNet, the foundation has grown from 3 employees to 200-plus employees. Their growth over the last 3 years has been anything but linear. During the pandemic, we helped the McCarton Foundation furlough workers, ensuring their employees maintain their benefits while they navigated this very difficult time. TriNet helped secure a PPP loan, providing the foundation with critical liquidity when it was needed the most. We then went to work to ensure that their loan would be forgiven.

麥卡頓基金會是一家總部位於紐約的非營利組織，其使命是改變人們的生活軌跡。他們為生活在服務欠缺社區的自閉症兒童帶來特殊的早期治療和療法。借助 TriNet，該基金會已從 3 名員工發展到 200 多名員工。他們在過去 3 年的增長絕不是線性的。在大流行期間，我們幫助麥卡頓基金會讓員工休假，確保他們的員工在渡過這段非常困難的時期時維持福利。 TriNet 幫助獲得了 PPP 貸款，在最需要的時候為基金會提供了關鍵的流動性。然後我們開始工作，以確保他們的貸款能夠被免除。

Additionally, our unique Recovery Credit program allowed them access to additional cash during a period when the savings were truly critical. As Whitney Loy, CEO of McCarton Foundation said, "Without TriNet, we would not be in business." The fact is TriNet would not be in business without incredible customers like the McCarton Foundation.

此外，我們獨特的 Recovery Credit 計劃使他們能夠在儲蓄非常關鍵的時期獲得額外的現金。正如麥卡頓基金會首席執行官 Whitney Loy 所說，“沒有 TriNet，我們就無法開展業務。”事實上，如果沒有麥卡頓基金會這樣令人難以置信的客戶，TriNet 就無法開展業務。

TriNet is different. We are prepared for the unexpected and provide unparalleled value. Our positive impact on our customers like the McCarton Foundation is energizing and motivating for every single TriNet colleague. We will continue to focus on our passion, invest in the future and deliver profitable growth for our shareholders.

三網不同。我們為意外做好準備並提供無與倫比的價值。我們對麥卡頓基金會等客戶的積極影響正在激勵和激勵每一位 TriNet 同事。我們將繼續專注於我們的熱情，投資於未來並為我們的股東帶來盈利增長。

Kelly?

凱莉？

Thank you, Burton. The first quarter allowed TriNet to prove our ability to execute well across our business and continue to support our customers during this changing macroeconomic environment. In the areas we controlled, we did very well.

謝謝你，伯頓。第一季度讓 TriNet 證明了我們在整個業務中執行良好的能力，並在這個不斷變化的宏觀經濟環境中繼續支持我們的客戶。在我們控制的地區，我們做得很好。

During the quarter, TriNet prioritized its spend on our growth agenda and our customers, driving both outperformance in new sales and improved overall customer retention. This discipline ultimately resulted in strong earnings performance and cash flow generation. I was very pleased that we delivered on the strong first quarter financial performance in the face of 2 distinct challenges: number one, the regional banking crisis; and number two, the overall macro headwinds.

在本季度，TriNet 將其支出優先用於我們的增長議程和我們的客戶，推動了新銷售的出色表現並提高了整體客戶保留率。這一紀律最終帶來了強勁的盈利表現和現金流產生。我很高興我們在面對兩個截然不同的挑戰時取得了強勁的第一季度財務業績：第一，區域銀行業危機；第二，整體宏觀逆風。

I've been with TriNet now just over 2.5 years, and in my time here, I've been impressed with our customers and how the TriNet team puts our customers at the center of everything we do. Part of this ethos is managing the unexpected on behalf of our customers, and the regional bank crisis and Silicon Valley Bank receivership represented just that opportunity.

我在 TriNet 工作 2.5 年多了，在我在這裡的時間裡，我對我們的客戶以及 TriNet 團隊如何將客戶置於我們所做的一切的中心印象深刻。這種精神的一部分是代表我們的客戶管理意外情況，而地區性銀行危機和矽谷銀行接管正是這種機會。

The immediate risk for impacted PEO and HRIS customers was access to their corporate funds and making their payrolls. The TriNet team leveraged our banking partners, assisted with alternative funding methods and helped our customers navigate the situation. The end result was none of our impacted customers missed a payroll or were asked to double-fund the payroll across our PEO and HRIS platforms. I'm extremely proud of the team.

受影響的 PEO 和 HRIS 客戶面臨的直接風險是使用他們的公司資金和支付工資。 TriNet 團隊利用我們的銀行合作夥伴，協助採用替代融資方式，並幫助我們的客戶渡過難關。最終結果是，我們受影響的客戶中沒有一個錯過了工資單，也沒有被要求在我們的 PEO 和 HRIS 平台上為工資單提供雙倍資金。我為團隊感到非常自豪。

The second distinct challenge we faced in the quarter was our customer net hiring was modestly negative overall. This represents the second consecutive quarter where existing employment shrunk versus grew. The impact in the first quarter from the lack of hiring exacerbated the normal Q1 volume dip.

我們在本季度面臨的第二個明顯挑戰是我們的客戶淨招聘總體上略有負數。這是連續第二個季度現有就業人數減少而不是增加。招聘不足對第一季度的影響加劇了正常的第一季度銷量下滑。

As we described when we laid out our full year guidance, we did expect first half customer hiring performance to be subdued before picking up in the second half of 2023, but we had not anticipated the negative CIE in the quarter when we initially set that guidance. At the highest level, customer net hiring was bifurcated between those companies with fewer than 50 and those with greater than 50 worksite employees. Consistent with the survey data we received last fall, the smaller businesses were more optimistic then and, in aggregate, they did continue to hire.

正如我們在製定全年指導時所描述的那樣，我們確實預計上半年的客戶招聘表現會有所下降，然後在 2023 年下半年回升，但我們在最初設定該指導時並未預料到該季度的負 CIE .在最高級別，客戶淨招聘在員工人數少於 50 人的公司和員工人數超過 50 人的公司之間出現分歧。與我們去年秋天收到的調查數據一致，小型企業當時更為樂觀，總體而言，他們確實繼續招聘。

Digging into our verticals. Technology experienced a net hiring decline of approximately 1% of our starting base as did our Main Street vertical. Financial services also experienced a small net decline in the quarter. Life sciences, nonprofits and professional services saw positive net hiring but down when compared to Q1 2022.

深入我們的垂直領域。與我們的 Main Street 垂直行業一樣，技術部門的招聘人數淨下降了約 1%。金融服務在本季度也出現了小幅淨下滑。生命科學、非營利組織和專業服務的淨招聘人數為正，但與 2022 年第一季度相比有所下降。

To underscore Burton's comments, across our business, greater than 50% of our customers with more than 5 worksite employees hired employees in Q1, on average, the classic PEO target-sized customer hired workers. In technology, it was slightly less than half of those clients greater than 5 worksite employees that continued to hire.

為了強調伯頓的評論，在我們的業務中，超過 50% 的客戶在第一季度僱用了 5 名以上工地員工，平均而言，經典的 PEO 目標規模客戶僱用了員工。在技術領域，持續僱用 5 名以上工作場所員工的客戶中略低於一半。

We are seeing a rationalization by investors and management teams. Investors are being more discerning, supporting those companies that have stronger prospects. Larger SMBs are behaving more conservatively, managing their labor force cautiously given the broader economic environment. While these market dynamics are out of our control in the short term, what we do control is pursuing business in our core verticals. Given our extensive work on customer lifetime value, we believe staying in our core verticals will yield strong financial performance over time.

我們看到投資者和管理團隊正在合理化。投資者越來越有眼光，支持那些前景更好的公司。鑑於更廣泛的經濟環境，大型中小企業的行為更加保守，謹慎地管理其勞動力。雖然這些市場動態在短期內不受我們的控制，但我們能控制的是在我們的核心垂直領域開展業務。鑑於我們在客戶生命週期價值方面的廣泛工作，我們相信隨著時間的推移，留在我們的核心垂直領域將產生強勁的財務業績。

Now let's turn to our first quarter financial performance. Total revenues grew 2%, in line with the top end of our guidance. Total revenue growth was supported by pricing and higher health participation rates. We finished the first quarter with approximately 328,000 worksite employees, down 6% year-over-year, with an average WSE count for the quarter of over 327,000, down 5%.

現在讓我們來看看我們第一季度的財務業績。總收入增長 2%，符合我們指引的上限。定價和更高的健康參與率支持了總收入增長。第一季度結束時，我們約有 328,000 名工作場所員工，同比下降 6%，本季度 WSE 平均人數超過 327,000 人，下降 5%。

WSE volumes were lower in the first quarter, largely due to the seasonal attrition we experienced in January and a significant decline year-over-year in customer net hiring. As Burton noted, we did see a 3-point improvement in retention year-over-year, and we do expect to continue with strong retention over the course of 2023.

第一季度 WSE 交易量較低，這主要是由於我們在 1 月份經歷了季節性人員流失以及客戶淨招聘同比大幅下降。正如 Burton 指出的那樣，我們確實看到保留率同比提高了 3 個百分點，我們確實希望在 2023 年繼續保持強勁的保留率。

Professional services revenue grew 6%, in line with the top end of our guidance. Professional services revenue offset the WSE volume decline through strong contributions from rate, mix and HRIS revenues year-over-year. Insurance revenue grew 2% year-over-year due to an uptick in participation and annual inflationary rate increases offsetting our overall volume declines.

專業服務收入增長 6%，符合我們指引的上限。專業服務收入通過費率、組合和 HRIS 收入的同比強勁貢獻抵消了 WSE 數量的下降。由於參與率上升和年度通貨膨脹率上升抵消了我們整體銷量的下降，保險收入同比增長 2%。

Insurance costs grew 4% year-over-year, reflecting increased and more normalized health utilization. The growth in health costs was partly offset by continued strong workers' compensation performance. Taken together, our insurance cost ratio was 82%, 1 point lower than the high end of our guidance, all driven by the outperformance on workers' compensation.

保險費用同比增長 4%，反映出健康利用的增加和更加規範化。健康成本的增長部分被持續強勁的工人薪酬表現所抵消。總而言之，我們的保險成本率為 82%，比我們指導的上限低 1 個百分點，這全都受到工傷賠償方面表現出色的推動。

Turning to operating expenses. We were very deliberate in the quarter to focus our incremental spend on supporting new sales and customer service. We did so by managing all other expenses. As a result, we were very pleased with the efficiency with which we managed our business. Overall, operating expenses grew 18% in the quarter, representing a decline from recent run rates but reflecting the fact that we acquired TriNet Zenefits mid-quarter 2022. As we look to the balance of the year, our comparisons will begin to normalize.

轉向運營費用。我們在本季度非常慎重地將增量支出集中在支持新的銷售和客戶服務上。我們通過管理所有其他費用來做到這一點。因此，我們對管理業務的效率感到非常滿意。總體而言，本季度的運營費用增長了 18%，與最近的運行率相比有所下降，但反映了我們在 2022 年季度中期收購了 TriNet Zenefits 這一事實。展望今年的餘額，我們的比較將開始正常化。

We also benefited from the current higher rate environment in interest income on investments and our operating cash. The strong workers' comp, expense management and higher interest income translated to solid earnings performance. In the quarter, we earned $2.17 in GAAP net income per share, exceeding the top end of our guidance by $0.35; and we earned $2.49 in adjusted net income per share, exceeding the top end of our guidance by $0.29.

我們還受益於當前投資利息收入和經營現金利率較高的環境。強勁的工人薪酬、費用管理和更高的利息收入轉化為穩健的盈利表現。本季度，我們的 GAAP 每股淨收入為 2.17 美元，超出我們指引的上限 0.35 美元；我們的調整後每股淨收入為 2.49 美元，超出我們指導的上限 0.29 美元。

We had $169 million of corporate operating cash flow during the quarter and ended the first quarter with $707 million in cash on our balance sheet. The sequential growth in our cash was driven by our corporate operating cash flow and drawdowns on our credit facility.

本季度我們擁有 1.69 億美元的企業運營現金流，第一季度結束時資產負債表上的現金為 7.07 億美元。我們現金的連續增長是由我們的公司經營現金流和我們信貸額度的提款推動的。

At the outset of the regional bank crisis, we drew down our credit facility in full to ensure access to liquidity in the event the crisis proved to be far worse. We returned $200 million on the facility in March, leaving $295 million of borrowings still outstanding, which was fully repaid during April but after we closed the quarter.

在地區性銀行危機爆發之初，我們全額提取了信貸額度，以確保在危機證明更為嚴重的情況下獲得流動性。我們在 3 月份償還了 2 億美元的貸款，留下 2.95 億美元的未償還借款，這些借款在 4 月份全額償還，但在我們關閉該季度之後。

On the capital allocation front, we repurchased $90 million or approximately 1.2 million shares during the first quarter. We still have $455 million remaining in our share repurchase authorization and repurchase will remain a capital priority for TriNet.

在資本配置方面，我們在第一季度回購了 9000 萬美元或約 120 萬股股票。我們的股票回購授權中仍有 4.55 億美元，回購仍將是 TriNet 的資本優先事項。

Now let's turn to our financial guidance. Our revised full year guidance includes our updated estimates for lower customer hiring. While March customer hiring showed signs of improvement, the continued challenging economic environment drove us to be more prudent and lower our full year CIE estimate. We continue to expect strong new sales and significantly improved retention, but the changed CIE assumption has a direct impact on full year revenue guidance.

現在讓我們轉向我們的財務指導。我們修訂後的全年指導包括我們對較低客戶招聘的更新估計。雖然 3 月份的客戶招聘顯示出改善跡象，但持續充滿挑戰的經濟環境促使我們更加謹慎並降低了全年 CIE 估計。我們繼續期待強勁的新銷售額和顯著提高的保留率，但改變的 CIE 假設對全年收入指引有直接影響。

In recognition of our strong workers' compensation performance, we are lowering our insurance cost ratio. Our expense reductions, higher interest income, along with our workers' comp outperformance, all contribute to raising our earnings guidance for the year. Operationally, this was a strong quarter for TriNet, one in which we can raise earnings guidance and still invest in our business to drive growth.

鑑於我們出色的工傷賠償表現，我們正在降低保險成本比率。我們的開支削減、更高的利息收入以及我們員工的出色表現，都有助於提高我們今年的盈利預期。在運營方面，這是 TriNet 的一個強勁季度，我們可以在這一季度提高盈利指引，同時仍然投資於我們的業務以推動增長。

Now let's turn to our expectations for the second quarter. Given our first quarter volume performance and strong benefits participation, we are forecasting second quarter year-over-year total revenues to be flat to up 1%. We expect professional services revenue to be down 3% to flat as our year-over-year compare now includes our HRIS revenues and reflects our expectation for second quarter PEO volumes. We expect our insurance cost ratio in the range of 88.5% to 87% as health utilization continues to normalize.

現在讓我們談談我們對第二季度的預期。鑑於我們第一季度的銷量表現和強大的福利參與，我們預計第二季度的總收入同比持平至 1%。我們預計專業服務收入將下降 3% 至持平，因為我們的同比比較現在包括我們的 HRIS 收入，並反映了我們對第二季度 PEO 數量的預期。隨著健康利用率繼續正常化，我們預計我們的保險成本比率將在 88.5% 至 87% 之間。

Our second quarter estimate of GAAP net income per diluted share is in a range of $0.72 to $0.96, while our second quarter estimate for adjusted earnings per diluted share is in a range of $1.15 to $1.40. The year-over-year decline in our earnings per share estimate is primarily driven by our expectation for higher insurance cost ratios in the quarter.

我們對第二季度 GAAP 每股攤薄淨收入的估計在 0.72 美元至 0.96 美元之間，而我們對第二季度調整後每股攤薄收益的估計在 1.15 美元至 1.40 美元之間。我們對每股收益預測的同比下降主要是由於我們對本季度保險成本比率較高的預期所致。

Now let's turn to our full year financial guidance. Regarding total revenues, after 1 quarter's performance and better visibility into our volume trends, we are tightening our range. We are raising the low end of our guidance by 3 points while keeping the top end of our range unchanged and now expect full year total revenues to be up 1% to 2%.

現在讓我們轉向我們的全年財務指導。關於總收入，在 1 個季度的業績和對我們的數量趨勢的更好了解之後，我們正在收緊我們的範圍。我們將指引的下限提高了 3 個百分點，同時保持範圍的上限不變，現在預計全年總收入將增長 1% 至 2%。

For professional service revenues, we are lowering the high end of our range to reflect our expectations that full year customer net hiring will be at the low end of our initial full year 2023 forecast. As a result, we now expect full year professional service revenue growth in the range of 1% to 3%.

對於專業服務收入，我們正在降低我們範圍的高端，以反映我們對全年客戶淨招聘將處於我們最初的 2023 年全年預測低端的預期。因此，我們現在預計全年專業服務收入增長 1% 至 3%。

Turning to our insurance cost ratio. We are lowering our full year ICR by 50 basis points to 88.5% to 87%. This reduction in our ICR is primarily driven by workers' compensation outperformance, which we expect to offset the normalization in health utilization we are beginning to see. We now are forecasting an increase to interest income to approximately $50 million given the renegotiation of certain contracts and our expectation that rates persist at higher levels longer.

轉向我們的保險成本比率。我們將全年 ICR 降低 50 個基點至 88.5% 至 87%。我們 ICR 的下降主要是由於工人薪酬表現出色，我們預計這將抵消我們開始看到的健康利用正常化。鑑於某些合同的重新談判以及我們預計利率將在較高水平持續更長的時間，我們現在預測利息收入將增加至約 5000 萬美元。

As a result of these changes, coupled with our strong disciplined expense management, we are raising our GAAP net income per diluted share forecast by $0.74 at the midpoint to a new range of $3.96 to $4.90. Regarding our adjusted net income per diluted share guidance, we are raising the range by $0.63 at the midpoint to $5.40 to $6.35 per share. We've included share repurchase to offset dilution from stock compensation, but we have not included any benefits from additional share repurchase in our expected EPS range given the variability of repurchase timing and price.

由於這些變化，加上我們嚴格的費用管理，我們將 GAAP 每股攤薄淨收入預測的中點提高了 0.74 美元，達到 3.96 美元至 4.90 美元的新範圍。關於我們調整後的每股攤薄淨收益指引，我們將中點區間上調 0.63 美元至每股 5.40 美元至 6.35 美元。我們已將股票回購包括在內以抵消股票補償帶來的稀釋，但鑑於回購時間和價格的可變性，我們並未將額外股票回購帶來的任何好處納入我們的預期每股收益範圍。

We are encouraged by our first quarter performance during what has proven to be a difficult economic environment. We are driving new sales, keeping our customers longer, investing in our business for growth and managing our expenses in a disciplined manner. As a result, our full year financial outlook has improved, and we look forward to building on this momentum.

在事實證明困難的經濟環境中，我們對第一季度的業績感到鼓舞。我們正在推動新的銷售，讓我們的客戶保持更長的時間，投資於我們的業務以實現增長，並以有紀律的方式管理我們的費用。因此，我們的全年財務前景有所改善，我們期待在此勢頭的基礎上再接再厲。

Now I'll turn it back to Burton for his final remarks. Burton?

現在我將把它轉回給伯頓，聽取他的最後評論。伯頓？

Thank you, Kelly. Our first quarter financial and operating performance set TriNet up for a strong year. In the face of unexpected crisis, we delivered unparalleled value to our customers. We continue to expand our products and services in ways that are different from other HCM providers. Clarus R+D is a good example of this. We are investing in sales and sales force growth, and we expect to leverage our new brand identity to drive growth.

謝謝你，凱利。我們第一季度的財務和運營業績為 TriNet 奠定了強勁的一年。面對突如其來的危機，我們為客戶提供了無與倫比的價值。我們繼續以不同於其他 HCM 供應商的方式擴展我們的產品和服務。 Clarus R+D 就是一個很好的例子。我們正在投資於銷售和銷售隊伍的增長，我們希望利用我們的新品牌標識來推動增長。

As always, we manage our company for profitable growth, proving that you can invest in growth without sacrificing profitability. We are well positioned to build on our first quarter momentum throughout the year.

一如既往，我們管理公司以實現盈利增長，證明您可以在不犧牲盈利能力的情況下投資於增長。我們已準備好在全年的第一季度勢頭的基礎上再接再厲。

Operator?

操作員？

(Operator Instructions) And the first question will be from Tien-Tsin Huang from JPMorgan.

（操作員說明）第一個問題來自摩根大通的 Tien-Tsin Huang。

I guess, Burton, I'll ask, if you don't mind, on the new sales front, 20% growth in ACV. Can you give us a little bit more, what's selling well? Is there anything to you'd share or anything that was surprising there? And generally speaking, how does that translate into the P&L? I know we have to assume some assumptions going ahead. So any thoughts on the pipeline on top of that?

我想，伯頓，如果你不介意的話，我會問，在新的銷售方面，ACV 增長 20%。你能不能再給我們一點，什麼賣得好？你有什麼要分享的，或者有什麼令人驚訝的嗎？一般來說，這如何轉化為損益表？我知道我們必須假設一些假設。那麼除此之外對管道有什麼想法嗎？

Absolutely. And thanks for the question, Tien-Tsin. So first, our decision to continue to invest in sales is due to increased rep productivity is holding, which has been really good. Success and scalability of the marketing lead generation and scoring process is also very good. And we're also seeing an increase in win rates from quote to win in terms of WSEs. And as you realize, we've spent a lot of years understanding this customer base. And we believe over the long term, they're going to deliver tremendous value.

絕對地。感謝 Tien-Tsin 的提問。因此，首先，我們決定繼續投資於銷售是由於代表生產力的提高正在保持，這非常好。營銷線索生成和評分過程的成功和可擴展性也非常好。我們還看到，就 WSE 而言，從報價到獲勝的獲勝率都有所增加。正如您所知，我們花了很多年時間來了解這個客戶群。我們相信從長遠來看，它們將帶來巨大的價值。

Specifically to your question about what's going to happen in the future, I will say to you now that given my visibility into the pipeline for the second and third quarters and given the fact that deals are closing at a higher rate, I believe that we're on track to continue the growth that we are seeing in a year-over-year basis from a sales standpoint.

具體到你關於未來會發生什麼的問題，我現在要告訴你，鑑於我對第二和第三季度管道的可見性和交易以更高的速度完成的事實，我相信我們'從銷售的角度來看，我們有望繼續實現同比增長。

Great. And then just using that KPI, is there a way to think about the impact on the midterm revenue growth? I'm just trying -- I know there's a lot of moving pieces, retention, you went through that, CIE. But in isolation, thinking about new sales, is there a rule of thumb to use on impact to revenue growth?

偉大的。然後僅使用該 KPI，有沒有辦法考慮對中期收入增長的影響？我只是在嘗試——我知道有很多移動的部分，保留，你經歷過，CIE。但孤立地考慮新銷售，是否有經驗法則可用於影響收入增長？

Yes. Look, they're all -- obviously, right now, retention is another really great story. As Kelly said, it was up 3 points in the first quarter, and that will have a big impact as well. From a sales standpoint, Kelly, I don't know if you have a percentage. But it's still a smaller percentage of this year's revenue. Where it's really important is as it goes into 2024. So we will keep growing the sales force as long as productivity stays high. We're seeing high retention of the reps, and we're seeing a pretty good market even in the impacted areas related to the Bay Area in California despite the Silicon Valley Bank failure. So that's a whole other discussion I'm happy to have.

是的。看，他們都是 - 顯然，現在，保留是另一個非常棒的故事。正如凱利所說，第一節就上升了3分，這也會產生很大的影響。從銷售的角度來看，凱利，我不知道你是否有百分比。但它在今年收入中所佔的比例仍然較小。真正重要的是進入 2024 年。因此，只要生產力保持高水平，我們就會繼續擴大銷售隊伍。我們看到銷售代表的保留率很高，而且儘管矽谷銀行倒閉，但即使在與加利福尼亞灣區相關的受影響地區，我們也看到了相當不錯的市場。所以這是我很高興進行的完全不同的討論。

But Kelly, anything specifically we can give Tien-Tsin on this increased sales run rate?

但是 Kelly，我們可以為 Tien-Tsin 提供什麼具體的銷售運行率提升？

Not really, Burton. And Tien-Tsin, I'll think about that as we think about the KPIs that we publish and how to think about it in terms of revenue. It is fully baked into our guidance. We haven't changed our view on sales. We do expect to have really strong sales. We have moderated our assumptions around CIE a little bit just given what we saw in the first quarter and have improved our retention assumptions, just seeing really good results there.

不是真的，伯頓。而 Tien-Tsin，我會在考慮我們發布的 KPI 以及如何從收入方面考慮它時考慮這一點。它完全融入了我們的指南。我們沒有改變對銷售的看法。我們確實希望有非常強勁的銷售。鑑於我們在第一季度看到的情況，我們已經稍微調整了對 CIE 的假設，並改進了我們的保留假設，只是看到了那裡非常好的結果。

Look, it's encouraging. Glad to hear the new sales coming through. I'm sure you all are happy about it.

看，很勵志很高興聽到新的銷售情況。我相信你們都很高興。

We are really proud of this quarter, Tien-Tsin.

我們為天進這個季度感到非常自豪。

Yes. No, I'm sure that's the case. So my quick follow-up, if you don't mind, just on the EPS raise, the $0.63. Kelly, is there a way to maybe unpack it a little bit more in terms of what the elements are? We obviously can calculate the $0.29 beat. You mentioned higher interest income and then the lower ICR with the workers' comp outperformance. I don't know if there's any change in OpEx outlook either. Is there any way just to maybe unpack that or decompose it for us.

是的。不，我確定是這樣的。所以我的快速跟進，如果你不介意的話，就 EPS 提高 0.63 美元。凱利，有沒有辦法根據元素是什麼來進一步解壓它？我們顯然可以計算出 0.29 美元的節拍。你提到了更高的利息收入，然後是較低的 ICR，工人的薪酬表現出色。我也不知道 OpEx 前景是否有任何變化。有什麼辦法可以為我們解壓或分解它。

Well, you got all the elements right there, Tien-Tsin. So you're right on. We did improve our interest income forecast about $50 million. That was about a $19 million increase from where we were at before. On the OpEx side, we rationalized our G&A costs so that we can invest in sales. So we absolutely baked in cost savings and efficiencies there.

好吧，Tien-Tsin，你已經掌握了所有元素。所以你是對的。我們確實將利息收入預測提高了約 5000 萬美元。這比我們之前的水平增加了大約 1900 萬美元。在運營支出方面，我們合理化了 G&A 成本，以便我們可以投資於銷售。因此，我們絕對致力於節省成本和提高效率。

And related to the ICR, health is right on track. And what we're really doing is we just built in the favorability from workers' comp, so not much of a change there. The other thing we slightly did is we're seeing stronger participation rates, not by a lot, by about 1%. But we did build in the benefit participation rates at about 1% higher, which also contributed to the benefit.

與 ICR 相關的是，健康正步入正軌。而我們真正在做的是我們只是建立了工人補償的好感度，所以那裡沒有太大變化。我們稍微做的另一件事是我們看到更高的參與率，不是很多，大約 1%。但我們確實將福利參與率提高了約 1%，這也有助於提高福利。

(Operator Instructions) The next question is from Andrew Nicholas from William Blair.

（操作員說明）下一個問題來自威廉·布萊爾的安德魯·尼古拉斯。

Wanted to follow up on a few of your -- Burton, wanted to follow up a little bit on some of your answers there. I guess the first one just in terms of kind of SVB fallout, obviously, operationally, everything went really well. I think it sounds like you were very proud of your efforts there. Were there any changes to kind of the sales cycle within March or even what you've seen in April? Obviously, 20% sales growth in the quarter would indicate you had some momentum anyway. But just given some of the commentary from a competitor of yours this morning, just curious what, if any, impact that had on the sales cycle.

想跟進你的一些 -- 伯頓，想跟進你在那裡的一些答案。我想第一個只是就 SVB 的影響而言，顯然，在操作上，一切都非常順利。我想听起來你為你在那裡的努力感到非常自豪。 3 月份的銷售週期是否有任何變化，甚至是您在 4 月份看到的情況？顯然，本季度 20% 的銷售額增長表明您無論如何都有一些動力。但是今天早上剛剛給出了您的競爭對手的一些評論，只是好奇這對銷售週期有什麼影響（如果有的話）。

So it's a really good question. And let me break it down a little bit for you. So clearly, SVB failure had an impact on the Bay Area tech ecosystem and, obviously, other areas. But interesting, we're not seeing it, we actually have a higher year-over-year win rate from quote to win in terms of WSEs as well as ACV. So we're selling value, we're not discounting. And in fact, our new sales in the Bay Area tech vertical have remained strong. But as I said in the prepared remarks, what you have to do is look under the covers. It's not a general tech malaise, Andrew. What we're seeing is half of our tech customers are hiring and half of them are not.

所以這是一個非常好的問題。讓我為您分解一下。很明顯，SVB 的倒閉對灣區科技生態系統產生了影響，顯然，對其他地區也產生了影響。但有趣的是，我們沒有看到它，實際上我們在 WSE 和 ACV 方面從報價到獲勝的同比獲勝率更高。所以我們賣的是價值，我們沒有打折。事實上，我們在灣區科技垂直領域的新銷售一直保持強勁。但正如我在準備好的發言中所說，你要做的就是深入了解。這不是一般的技術不適，安德魯。我們所看到的是，我們的技術客戶中有一半正在招聘，而另一半則沒有。

And then the other thing that is sort of a big question mark in my mind, which Kelly mentioned, if you look at March CIE, it is the highest CIE month we've had since July of 2022. So I feel like we're coming back, but it doesn't -- obviously, 1 month doesn't make a trend. I'm excited to see what April brings. So January was bad. It's always bad, but it was worse. February was better, and March was darn good compared to the last 9 months.

然後，凱利提到的另一件事是我心中的一個大問號，如果你看看 3 月的 CIE，這是自 2022 年 7 月以來我們擁有的最高 CIE 月份。所以我覺得我們回來，但事實並非如此——顯然，1 個月不會形成趨勢。我很高興看到四月帶來了什麼。所以一月很糟糕。它總是很糟糕，但更糟。 2 月更好，3 月與過去 9 個月相比非常好。

I think we're in the right verticals. And obviously, as Kelly said, the bigger customers were impacted further. But the growth was between 5 and 50, and it was pretty dramatic, which leads me to believe that the funded companies have a mission, going after the product and they were not disrupted by the SVB or any other ecosystem issue. The bigger customers, 100-plus, certainly were. And the question is, was it lack of access to capital or was it a great time to rationalize the current employee base as we move forward.

我認為我們處於正確的垂直方向。顯然，正如凱利所說，更大的客戶受到了進一步的影響。但增長在 5 到 50 之間，而且非常引人注目，這讓我相信受資助的公司有使命，追求產品，他們沒有受到 SVB 或任何其他生態系統問題的干擾。更大的客戶，100 多家，當然是。問題是，是缺乏獲得資金的途徑，還是在我們前進的過程中合理化現有員工基礎的好時機。

But there's no question in my mind, over the next couple of years, we're. In the right verticals and they will recover. But we did not see a significant impact from SVB. In fact, the Bay Area was strong.

但在我看來毫無疑問，在接下來的幾年裡，我們是。在正確的垂直方向上，它們會恢復。但我們沒有看到 SVB 的重大影響。事實上，灣區很強。

That's helpful. And then for my follow-up, on your CIE assumption, it sounds like the professional services revenue line item is assuming a bit lighter CIE than what you had previously. Is the assumption still that you see a decent bit of growth in the second half? Or just maybe unpack what that lower assumption looks like relative to the last quarter.

這很有幫助。然後對於我的後續行動，根據你的 CIE 假設，聽起來專業服務收入項目假設的 CIE 比你以前的要輕一些。您是否仍然認為下半年會出現可觀的增長？或者只是解開相對於上個季度的較低假設的情況。

Yes. Thank you. Kelly?

是的。謝謝。凱莉？

Yes. I'm happy to take that, Burton. And Andrew, thanks for the question. When we look at last quarter, CIE was negative overall. We are expecting positive hiring, particularly as we look towards June and you get college grads going into the workforce and we see interns and seasonal workers coming onboard. So we're expecting positive CIE for the remainder of the year. But what we're really expecting is significantly lower than what we saw last year, what we've seen historically. The low end of our range is about the lowest we've seen over a decade.

是的。我很樂意接受，伯頓。 Andrew，謝謝你提出這個問題。當我們看上一季度時，CIE 總體上是負面的。我們期待積極的招聘，特別是當我們展望 6 月時，大學畢業生進入勞動力市場，我們看到實習生和季節性工人加入。因此，我們預計今年剩餘時間的 CIE 為正。但我們真正的預期遠低於我們去年所看到的，我們從歷史上看到的。我們範圍的低端大約是我們十多年來看到的最低點。

(Operator Instructions) The next question is from Jared Levine with TD Cowen.

（操作員說明）下一個問題來自 Jared Levine 和 TD Cowen。

I wanted to dig in a little bit more on the PEO bookings. So you previously cited January bookings growth of 35% year-over-year and now with 20% overall in 1Q. Was there a notable deceleration in March? Or was it pretty even in terms of that, I guess, let's call it, softer back half of the quarter there?

我想深入了解 PEO 預訂。所以你之前提到 1 月份的預訂量同比增長 35%，現在第一季度整體增長 20%。三月份有明顯的減速嗎？或者甚至就此而言，我猜，讓我們稱之為，那個季度的後半部分更軟？

Yes. There wasn't a notable deceleration. The fact is, and this is an operational issue, we changed territories and teams on February 1. January is actually the last month of the sales year. So as we reorganized and put the new teams in place, February and March are usually relatively slower, so there was no surprises there. But as I said to Tien-Tsin, from my vantage point, we have a pipeline to continue that growth at least through Q2 as it looks right now.

是的。沒有明顯的減速。事實上，這是一個運營問題，我們在 2 月 1 日更換了地區和團隊。1 月實際上是銷售年度的最後一個月。因此，當我們重組並安排新團隊時，2 月和 3 月通常相對較慢，所以沒有什麼意外。但正如我對 Tien-Tsin 所說，從我的角度來看，我們有一條管道可以繼續這種增長至少到第二季度，就像現在看起來的那樣。

Okay. Great. And then in terms of the sales force and your intentions to add head count there, can you update us on the staffing levels of the sales force, how that compared to also the beginning of the year? And then any change in terms of your hiring expectations over the year or even the timing of some of those head count additions within the sales force?

好的。偉大的。然後就銷售人員和您打算在那裡增加人數而言，您能否向我們更新銷售人員的人員配置水平，與年初相比如何？然後，您對這一年的招聘預期有什麼變化，甚至是銷售人員中某些人頭增加的時間？

The goal right now is to end the year significantly higher in total rep count. That will be based on 2 things, which is both retention. Obviously, there's a lot of momentum around the sales force, and they won big in Q1, so that certainly helps. And then the second is hiring of new reps. I would say by the end of the year, my expectation is roughly 20-plus percent growth in sales head count. But it is not onboard yet. It will impact next year because I'd like to continue this momentum.

現在的目標是在年底時顯著提高代表總數。這將基於兩件事，即保留。顯然，銷售人員勢頭強勁，他們在第一季度大獲全勝，這當然有幫助。然後第二個是僱用新的銷售代表。我會說到今年年底，我的預期是銷售人數大約增長 20% 以上。但它還沒有上船。它將影響明年，因為我想繼續保持這種勢頭。

Great. If I could sneak in one quick one here on Zenefits. What was the 1Q revenue contribution? And are you still expecting around $50 million for the full year?

偉大的。如果我能在 Zenefits 上偷偷溜進去一個。第一季度的收入貢獻是多少？您是否仍期望全年收入約為 5000 萬美元？

For Zenefits?

對於 Zenefits？

Yes.

是的。

Yes, right around that level is our expectation.

是的，我們的預期就在這個水平附近。

And the 1Q performance?

第一季度的表現如何？

And 1Q was right around $12 million.

第一季度大約是 1200 萬美元。

(Operator Instructions) Ladies and gentlemen, this concludes our question-and-answer session and thus concludes today's call. Thank you very much for joining TriNet's First Quarter 2023 Earnings Conference Call. You may now disconnect. Take care.

（操作員說明）女士們先生們，我們的問答環節到此結束，今天的電話會議也到此結束。非常感謝您參加 TriNet 2023 年第一季度收益電話會議。您現在可以斷開連接。小心。