TriNet Group Inc (TNET) 2023 Q4 法說會逐字稿

Good day and welcome to the TriNet fourth quarter 2023 earnings conference call. (Operator Instructions) Please note this event is being recorded. I'd now like to turn the conference over to Alex Bauer, Head of Investor Relations. Please go ahead.

美好的一天，歡迎參加 TriNet 2023 年第四季財報電話會議。（操作員說明）請注意此事件正在被記錄。我現在想將會議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 fourth quarter conference call. I am joined today by our current President and CEO, Burton M. Goldfield; our CFO, Kelly Tuminelli; and our future President and CEO effective tomorrow, Mike Simonds.

謝謝你，接線生。午安.我叫 Alex Bauer，是 TriNet 的投資人關係主管。感謝您加入我們，歡迎參加 TriNet 2023 年第四季電話會議。今天，我們的現任總裁兼執行長伯頓·M·戈德菲爾德 (Burton M. Goldfield) 也加入了我的行列。我們的財務長 Kelly Tuminelli；以及我們未來的總裁兼執行長 Mike Simonds，明天生效。

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 [2024 first quarter] and full year financial outlook and other statements that are not historical in nature or 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.

在開始之前，我想談談我們對前瞻性陳述和非公認會計準則財務指標的使用。請注意，今天的討論將包括我們的 [2024 年第一季] 和全年財務展望以及其他非歷史性或預測性的報表，或取決於或參考未來事件或條件，例如我們的預期、估計、預測、策略、信念或其他可能被視為前瞻性的陳述。

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.

這些前瞻性陳述基於管理層當前的預期和假設，本質上受到風險、不確定性和難以預測的情況變化的影響，可能導致實際結果與今天或未來所做的陳述存在重大差異。

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.

除非法律要求，我們不承諾根據新資訊、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 SEC 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. With that, I will turn the call over to Burton. Burton?

此外，我們今天的討論將包括非公認會計準則財務指標，包括我們對調整後每股攤薄淨利潤的前瞻性指引。有關我們的非 GAAP 財務指標與 GAAP 財務績效的調節，請參閱我們的收益報告、10-Q 文件或 10-K 文件，這些文件可在我們的網站或 SEC 網站上取得。這樣，我會將電話轉給伯頓。伯頓？

Thank you, Alex. Fiscal year 2023, including the fourth quarter was highlighted by strong and accelerating new sales growth, near record customer retention, and prudent expense management. I am particularly pleased with these results, given we successfully executed in the areas that are under our direct control. By emphasizing our value proposition, expanding our sales force, and improving our go-to-market efforts, fourth quarter new sales growth exceeded our forecast and my high expectations.

謝謝你，亞歷克斯。2023 財年（包括第四季度）的亮點是強勁且加速的新銷售成長、接近創紀錄的客戶保留率以及審慎的費用管理。鑑於我們在我們直接控制的領域成功執行了這些任務，我對這些結果感到特別滿意。透過強調我們的價值主張、擴大我們的銷售團隊並改善我們的行銷工作，第四季的新銷售成長超出了我們的預測和我的高期望。

We successfully executed on our plan to enhance customer service, which resulted in near record customer and WSE retention rates across all customer sizes. With the difficult 2023 economic environment, we responded by managing our expenses prudently and made every dollar of investment count. Given our strong execution across all facets of our business, we believe our stock in 2023 represented significant long-term value. We bought back over $1.1 billion in TriNet stock.

我們成功執行了增強客戶服務的計劃，從而使所有客戶規模的客戶保留率和《華爾街日報》的保留率接近創紀錄水平。面對2023年經濟環境困難的情況，我們審慎管理開支，讓每一分錢的投資都物有所值。鑑於我們在業務各個方面的強勁執行力，我們相信 2023 年我們的股票代表著巨大的長期價值。我們回購了價值超過 11 億美元的 TriNet 股票。

As you know by now, today, I announced my retirement as CEO of TriNet, effective midnight tonight. As CEO of TriNet for over 15 years, my overarching vision was to build an enduring company, one that thrives for decades and one that is fundamentally different. I view this as a very high standard, but more importantly, it is actionable by every colleague at TriNet.

如您所知，今天，我宣布從 TriNet 執行長的職位上退休，從今晚午夜生效。身為 TriNet 的執行長超過 15 年，我的整體願景是建立一家持久的公司，一家能夠蓬勃發展數十年並且具有根本不同的公司。我認為這是一個非常高的標準，但更重要的是，TriNet 的每位同事都可以付諸行動。

This standard impacts who we hire, how we train and invest in our colleagues' growth and development, the balance of short-term versus long-term investment, to achieve our strategic plans for the future, and most importantly, how we treat our customers and partners, providing them unparalleled value and a vision for a long-term relationship.

該標準影響我們僱用的人員、我們如何培訓和投資同事的成長和發展、短期與長期投資的平衡，以實現我們未來的戰略計劃，最重要的是，我們如何對待我們的客戶和合作夥伴，為他們提供無與倫比的價值和長期合作關係的願景。

TriNet introduced to the PEO industry, a vertical go-to-market strategy where we focused our sales and services on six core dynamic industries, technology, financial services, professional services, life sciences, non-profits, and main street.

TriNet 為 PEO 產業引入了一種垂直進入市場策略，我們將銷售和服務重點放在六個核心動態產業：技術、金融服務、專業服務、生命科學、非營利組織和主要街道。

This remains a hugely successful approach to the market and has given TriNet a customer base consisting of the most dynamic SMBs in the US economy. Because of this approach and the effectiveness of our execution, we have been able to attract dynamic salespeople, keep them longer, and ultimately, grow our team.

這仍然是一種非常成功的市場策略，並為 TriNet 提供了由美國經濟中最具活力的中小企業組成的客戶群。由於這種方法和我們執行的有效性，我們能夠吸引充滿活力的銷售人員，讓他們工作更長時間，並最終擴大我們的團隊。

During the fourth quarter, we leveraged our go-to-market approach, benefited from our larger more mature salesforce and we delivered new sales ACV growth up 55% year over year. I am pleased to report that this drove 2023 full year new sales ACV growth to 32% year over year.

在第四季度，我們利用了進入市場的方法，受益於我們規模更大、更成熟的銷售隊伍，我們的新銷售 ACV 年比成長了 55%。我很高興地報告，這推動 2023 年全年新銷量 ACV 年比成長 32%。

More importantly, our sales momentum continued into January 2024, where we realized the best new ACV performance in our company's history. New sales in the month of January grew by 56% when compared to the previous year. I look forward to continued new sales momentum, which is not only driven by strong sales execution, but also exceptional service and a very strong brand.

更重要的是，我們的銷售勢頭持續到 2024 年 1 月，我們實現了公司歷史上最好的新型 ACV 性能。1月新銷量較去年同期成長56%。我期待著持續的新銷售動力，這不僅得益於強大的銷售執行力，還得益於卓越的服務和非常強大的品牌。

Enduring companies are associated with strong brands and at TriNet, we have built the strongest brand in the PEO industry. In recent Harris Polling, TriNet aided awareness was 82%, the highest in our company's history.

持久的公司與強大的品牌聯繫在一起，在 TriNet，我們建立了 PEO 行業最強大的品牌。在最近的 Harris 民意調查中，TriNet 輔助認知度為 82%，是我們公司史上最高的。

But for me, it is not enough to have brand awareness. I have always wanted TriNet to be viewed as a trusted adviser for our customers. I was pleased to find that in the same Harris Polling, TriNet's reputation is the strongest in our industry. TriNet brand triggered the highest positive emotional response of all the key players in the PEO industry. Said differently, our strategy is working and I am very proud. We have come a long way with our brand and TriNet is in an excellent position to leverage this brand now and in the future.

但對我來說，僅有品牌知名度還不夠。我一直希望 TriNet 被視為客戶值得信賴的顧問。我很高興地發現，在同一次哈里斯民調中，TriNet 的聲譽是我們這個行業中最強的。TriNet 品牌引發了 PEO 產業所有主要參與者的最高正面情緒反應。換句話說，我們的策略正在發揮作用，我感到非常自豪。我們的品牌已經取得了長足的進步，TriNet 現在和未來都處於利用這個品牌的絕佳位置。

Just this week, we were informed by Newsweek that we were ranked number one in the Excellent 1,000 Index for 2024. The global companies listed in this index exhibited a firm commitment to best practices in business and financial growth. Newsweek partnered with the Best Practice Institute to conduct this index.

就在本週，我們從《新聞周刊》獲悉，我們在 2024 年卓越 1,000 指數中排名第一。該指數中列出的全球公司表現出對業務和財務成長最佳實踐的堅定承諾。《新聞周刊》與最佳實踐研究所合作進行了該指數。

I am particularly proud of this recognition, and it highlights TriNet's success in balancing employee satisfaction, R&D investment, ethical impact, and customer excellence, among other factors. TriNet will always work to keep our customers at the center of everything we do. We are continually evolving and enhancing our service model, striving to ensure that our customers are being served in a fashion that exceeds their expectations.

我對這項認可感到特別自豪，它突顯了 TriNet 在平衡員工滿意度、研發投資、道德影響和客戶卓越等因素方面所取得的成功。TriNet 將始終致力於將客戶置於我們所做一切的中心。我們不斷發展和增強我們的服務模式，努力確保我們的客戶得到超越他們期望的服務。

As I discussed on our last earnings call, our Net Promoter Score saw a significant year-over-year improvement. And for 2023, we realized the second highest customer retention rate in company history across all customer sizes.

正如我在上次財報電話會議上討論的那樣，我們的淨推薦值比去年同期出現了顯著改善。到 2023 年，我們在所有客戶規模中實現了公司歷史上第二高的客戶保留率。

Throughout my years at TriNet, I have stressed the importance of technology innovation and the importance of owning our own technology. This is strategically important, so that TriNet is in control of our future as the market continues to evolve.

在TriNet的這些年裡，我一直強調技術創新的重要性以及擁有自己技術的重要性。這具有重要的策略意義，讓隨著市場的不斷發展，TriNet 就能掌控我們的未來。

There are a few examples of organizations in any industry that have fallen behind the technology curve and have been able to maintain predictable growth and profitability. At TriNet, technology is the bedrock that provides scale in service of our exceptional customer base. It enhances the accuracy, expediency, and breadth of value our service team delivers.

任何行業中都有一些組織落後於技術曲線但能夠維持可預測的成長和獲利能力的例子。在 TriNet，科技是為我們卓越的客戶群提供規模化服務的基石。它提高了我們服務團隊提供的價值的準確性、便利性和廣度。

With the acquisition of Zenefits, we accelerated our commitment to technology innovation, specifically around API integration, benefits administration, and advanced payroll constructs that are flexible and easy to adopt.

透過收購 Zenefits，我們加快了對技術創新的承諾，特別是圍繞 API 整合、福利管理和靈活且易於採用的高級薪資結構。

TriNet is well on the path to developing a unified platform with an advanced data model that can serve our customers throughout their business lifecycle, including PEO and HRIS. I am proud of the many acquisitions over the years and particularly proud of the colleagues from these acquisitions who still today, are an integral part of TriNet's value.

TriNet 正在開發一個具有先進資料模型的統一平台，可在整個業務生命週期為我們的客戶（包括 PEO 和 HRIS）提供服務。我為多年來的許多收購感到自豪，尤其為參與這些收購的同事感到自豪，他們仍然是 TriNet 價值不可或缺的一部分。

This trend started with Gevity in 2009. And many of our current senior leaders came from this acquisition 15 years ago. This is the embodiment of an enduring company where colleagues can grow and prosper personally and professionally by committing to our mission.

這一趨勢始於 2009 年的 Gevity。我們現在的高階領導者很多都是來自15年前的這項收購。這是一家持久公司的體現，同事們可以透過致力於我們的使命來實現個人和專業的成長和繁榮。

TriNet is exceptionally well-positioned as a tech-enabled business services company with growth, predictability, profitability, and strong free cash flow. This can only be provided by a company with dynamic technology, complemented by extraordinary service, delivered by an incredible team. All of this is to say I am confident that TriNet's best days are ahead. I feel the company is in an excellent position with strong momentum to facilitate my retirement.

TriNet 作為一家技術支援的商業服務公司，具有獨特的優勢，具有成長性、可預測性、盈利能力和強勁的自由現金流。這只能由一家擁有動態技術、輔以卓越服務、由令人難以置信的團隊提供的公司來提供。所有這一切都表明我相信 TriNet 最好的日子就在前方。我覺得公司處於有利地位，有強烈的動力來促進我的退休生活。

With today's announcement of Mike Simonds as TriNet's next CEO, TriNet took another extraordinary step on our journey as an enduring company. Mike brings extensive SMB market and insurance experience as well as strong credentials across all facets of management. I'm confident Mike is the right leader for TriNet as we enter into the next phase of our growth. I will still be here working with the company through the end of March 2025 to ensure a smooth transition. With that, I will pass the call to Mike, so he can share a few words with you. Mike?

今天宣布 Mike Simonds 擔任 TriNet 的下一任首席執行官，TriNet 在我們作為一家持久公司的歷程中又邁出了非凡的一步。麥克帶來了豐富的中小企業市場和保險經驗以及管理各個方面的強大資格。我相信，隨著 TriNet 進入下一階段的發展，Mike 是正確的領導者。到 2025 年 3 月底，我仍將在公司工作，以確保順利過渡。這樣，我會將電話轉給麥克，以便他可以與您分享幾句話。麥克風？

Thank you, Burton for your extraordinary leadership at TriNet these past 15 years. Yours are going to be big shoes to fill, and I very much appreciate your commitment to stay on as an advisor to ensure a seamless transition.

感謝 Burton 在過去 15 年來對 TriNet 的卓越領導。您的職責將非常艱鉅，我非常感謝您承諾繼續擔任顧問，以確保無縫過渡。

I've spent much of my career working with insurance benefits and HR technology and certainly have always appreciated TriNet's excellent reputation in the market. The more time I spent in conversation with the company and others in the market, my excitement grew about this business, a strong brand and culture, excellent cash generation, and a large market opportunity still in front of us.

我職業生涯的大部分時間都在從事保險福利和人力資源技術方面的工作，當然也一直很欣賞 TriNet 在市場上的卓越聲譽。我與公司和市場上其他人交談的時間越多，我對這項業務的興奮就越強烈，強大的品牌和文化、出色的現金生成能力以及仍然擺在我們面前的巨大市場機會。

My primary focus initially will be supporting the team as we onboard the customers associated with our record January as well as getting out to meet with colleagues, customers, marketplace partners, and our investors. I look forward to opening up a dialogue with all of you in the coming weeks and months. Now, I'll pass it on to Kelly to take you through our financial results and guidance. Kelly?

我最初的主要重點是支援團隊，因為我們在一月份的記錄中吸引了與我們相關的客戶，以及出去見同事、客戶、市場合作夥伴和我們的投資者。我期待在未來幾週和幾個月內與你們所有人展開對話。現在，我將把它交給凱利，讓您了解我們的財務表現和指導。凱莉？

Thanks, Mike. I know I speak for all colleagues in welcoming you to TriNet. During 2023, TriNet continued to excel in the areas we controlled. We accelerated new sales growth, we kept customers longer, and we managed our expenses prudently, while still investing in our growth and digital transformation.

謝謝，麥克。我知道我代表所有同事歡迎您來到 TriNet。2023年，TriNet在我們控制的領域持續表現出色。我們加快了新的銷售成長，延長了客戶留存時間，謹慎管理了開支，同時仍投資於我們的成長和數位轉型。

As it relates to capital, we published our financial policy and capital allocation approach to our investors. We issued $400 million of bonds, and renegotiated and borrowed on our revolving line of credit. And we repurchased over $1.1 billion of our stock. This execution reflects the continued maturation of the company's financial management.

由於涉及資本，我們向投資者公佈了我們的財務政策和資本配置方法。我們發行了 4 億美元的債券，並重新談判並以循環信貸額度借款。我們回購了超過 11 億美元的股票。這一執行體現了公司財務管理的不斷成熟。

We've built towards these actions over several years, having negotiated borrowing terms, issuing long-term debt, and enhancing our forecasting capabilities. To top it off, we've just announced today the initiation of a quarterly dividend of $0.25 per share.

多年來，我們一直致力於這些行動，協商借款條款、發行長期債務並增強我們的預測能力。最重要的是，我們今天剛宣布開始派發每股 0.25 美元的季度股息。

The initiation of our dividend signifies two things for TriNet. One, we manage a business that generates significant and predictable corporate cash flows, which enable the funding of a dividend. And two, with that dividend, we now have diversified capital return options for shareholders, consistent with our financial policy.

對 TriNet 來說，我們的股息發放意味著兩件事。第一，我們管理的業務能夠產生大量且可預測的企業現金流，進而為股利提供資金。第二，有了股息，我們現在為股東提供了多樣化的資本回報選擇，這與我們的財務政策一致。

Now, let's dive into our fourth quarter and full year financial performance in greater detail. Total revenues grew 2% year over year for the fourth quarter and 1% for the year, in line with our guidance range. Total revenues performance for the year was largely characterized by the offsetting impacts from lower average WSE volumes and higher rate and mix contributions.

現在，讓我們更詳細地了解第四季度和全年的財務表現。第四季總營收年增 2%，全年總營收成長 1%，符合我們的指導範圍。本年度總收入表現的主要特點是 WSE 平均交易量下降以及費率和混合貢獻上升帶來的抵銷影響。

Our lower overall average WSE volumes was due to workforce reductions in some verticals of our installed customer base and the lack of hiring in others throughout 2023. This was a result of the challenging economic environment, particularly in the technology sector.

我們的 WSE 整體平均交易量較低是由於我們已安裝客戶群的某些垂直領域的勞動力減少以及其他領域在 2023 年缺乏招募。這是經濟環境充滿挑戰的結果，特別是在技術領域。

Professional service revenues in the quarter and for the full year were flat year over year, in line with our guidance. Consistent with our total revenues performance, professional services revenues were impacted by lower volumes, largely driven by the lack of customer hiring, offset by a modest rate increases in HRIS performance.

本季和全年的專業服務收入較去年同期持平，與我們的指引一致。與我們的總收入表現一致，專業服務收入受到銷售下降的影響，這主要是由於缺乏客戶招聘造成的，但被 HRIS 業績的小幅增長所抵消。

Our HRIS performance for the year was driven by three factors: first, the renegotiation of certain broker arrangements during the third quarter; second, our success at lifting price to properly reflect the value of our HRIS services provided, and finally, our HRIS performance benefited from a full year of revenue in 2023 when compared with the timing of our acquisition in February of 2022.

我們今年的 HRIS 業績受到三個因素的推動：首先，第三季對某些經紀人安排進行了重新談判；其次，我們成功提高了價格，以正確反映我們所提供的 HRIS 服務的價值，最後，與 2022 年 2 月的收購時間相比，我們的 HRIS 業績受益於 2023 年全年的收入。

Regarding WSE volume, we finished the year with approximately 348,000 WSEs, slightly down year over year. This reflected a continuation of the trends we experienced throughout 2023. We saw net positive contributions from new sales. Customer hiring was significantly lower than historical levels, but modestly positive and retention remains strong.

就 WSE 數量而言，今年年底我們的 WSE 數量約為 348,000 份，年比略有下降。這反映了我們在 2023 年經歷的趨勢的延續。我們看到新銷售帶來的淨正面貢獻。客戶招募量明顯低於歷史水平，但略有積極，留任率仍然很高。

Last quarter, we introduced a broader WSE definition, which reflects those receiving PEO services and using the value of our PEO platform. As we build our new platform and think through the opportunities to drive revenue by delivering value to an even broader base, we will continue to work through our existing categorizations and adjust as appropriate.

在上季度，我們引入了更廣泛的 WSE 定義，反映了那些接受 PEO 服務並使用我們 PEO 平台價值的人。當我們建立新平台並思考透過向更廣泛的群體提供價值來增加收入的機會時，我們將繼續研究現有的分類並進行適當的調整。

We do earn revenue on each of these WSEs at varying levels as we refine our processes and expand our product offerings, the incremental service fees we receive on these WSEs will be additive to PSR. The recategorization of WSEs added just under 12,000 to our final tally. On a legacy apples-to-apples comparison, we finished the fourth quarter with 336,000 WSEs, down 4% year over year and flat sequentially.

隨著我們改進流程並擴大產品供應，我們確實在每個 WSE 上獲得了不同程度的收入，我們在這些 WSE 上收到的增量服務費將添加到 PSR 中。WSE 的重新分類使我們的最終總數增加了近 12,000 家。在傳統的同類比較中，我們第四季末的 WSE 數量為 336,000，年減 4%，與上一季持平。

For the fourth quarter, our insurance cost ratio was approximately 87% lower than our forecasted range for the quarter of 88% to 92%. For the full year, our insurance cost ratio was 84.3%, slightly lower than our latest guidance range for the year of 84.5% to 85.5%.

第四季度，我們的保險成本比率比我們對本季 88% 至 92% 的預測範圍低約 87%。全年，我們的保險成本率為84.3%，略低於我們最新的全年指引範圍84.5%至85.5%。

The lower insurance cost ratio in the quarter reflected an uptick in healthcare utilization, particularly in November, more than offset by favorable workers' compensation prior period claims development. This workers' compensation trend was consistent with our full-year experience.

本季較低的保險成本比率反映了醫療保健利用率的上升，特別是在 11 月份，這被有利的工人賠償前期索賠發展所抵消。這一工人薪酬趨勢與我們全年的經驗一致。

Turning to operating expenses in the quarter. We continue to prudently manage our expenses in response to the challenging economic environment. We saw that our plant hiring would remain choppy throughout the quarter, and therefore, we began to scale back or cancel some of our discretionary hiring and project spending, while still ensuring we were investing in critical go-to-market capabilities.

轉向本季的營運費用。我們持續審慎管理開支，以應對充滿挑戰的經濟環境。我們看到整個季度我們的工廠招聘仍將不穩定，因此，我們開始縮減或取消一些可自由支配的招聘和項目支出，同時仍然確保我們對關鍵的上市能力進行投資。

The recalibration of our expense run rate strengthens our cash flow position as we wait for our clients to resume hiring. As such, for the fourth quarter, operating expenses declined 6% year over year. And for the full year, operating expenses grew a modest 2%.

在我們等待客戶恢復招募的過程中，費用運行率的重新調整增強了我們的現金流狀況。因此，第四季營運費用年減 6%。全年營運費用小幅增加 2%。

Now, let's move on to earnings per share. Fourth quarter GAAP net income per diluted share exceeded the top end of our guidance by $0.31 to $1.31, up 68% year over year. Our fourth quarter earnings outperformance versus our guidance was driven by expense favorability and the workers' compensation performance I just discussed. This brought full-year GAAP net income per diluted share to $6.56, up 17% when compared to 2022.

現在，讓我們繼續討論每股盈餘。第四季 GAAP 攤薄每股淨利潤超出我們指引的上限 0.31 美元至 1.31 美元，年增 68%。我們第四季的獲利表現優於我們的指導，是由我剛才討論的費用優惠和工人薪酬表現所推動的。這使得全年 GAAP 攤薄每股淨利潤達到 6.56 美元，比 2022 年成長 17%。

Fourth quarter adjusted net income per diluted share also exceeded the high end of guidance by $0.27 to $1.60, up 44% year over year. This brought our full-year adjusted net income per share to $7.81, up 10% versus 2022, exceeding the top end of guidance by $0.26.

第四季調整後每股攤薄淨利潤也超出指導上限 0.27 美元至 1.60 美元，年增 44%。這使得我們全年調整後每股淨利潤達到 7.81 美元，比 2022 年增長 10%，比指導上限高出 0.26 美元。

Turning to capital allocation. Today, we announced the institution of a quarterly dividend of $0.25. The record date will be April 1, payable on April 22. With the institution of our new dividend, TriNet capped off an extraordinary year as it relates to our capital allocation strategy. Our capital priorities remain unchanged. We will always invest in our business for growth, we will explore accretive M&A, and we will return capital to shareholders through both share repurchases and our newly instituted dividend.

轉向資本配置。今天，我們宣布實施 0.25 美元的季度股息。記錄日期為4月1日，付款日期為4月22日。隨著我們新股息的發放，TriNet 結束了與我們的資本配置策略相關的非凡的一年。我們的資本優先事項保持不變。我們將始終投資於我們的業務以實現成長，我們將探索增值併購，我們將透過股票回購和新設立的股息向股東返還資本。

During 2023, we publicly articulated our financial policy, which included our commitment to manage our business at a leverage ratio of 1.5 to 2 times adjusted EBITDA and return up to 75% of free cash flow to investors. For the year, we generated $539 million in corporate operating cash flow, an 8% year-over-year increase. And we generated $697 million in adjusted EBITDA, representing 1% year-over-year growth. In summary, we exit 2023 in a strong financial position.

2023 年，我們公開闡明了我們的財務政策，其中包括我們承諾以 1.5 至 2 倍調整後 EBITDA 的槓桿率管理我們的業務，並向投資者返還高達 75% 的自由現金流。今年，我們產生了 5.39 億美元的企業經營現金流，較去年同期成長 8%。我們的調整後 EBITDA 為 6.97 億美元，年增 1%。總而言之，我們在 2023 年結束時將保持強勁的財務狀況。

Now, let's turn to our 2024 first quarter and full year outlook, where I will provide both GAAP and non-GAAP guidance. In the first quarter of 2024, we expect total revenues to grow in a range of 0% to 3% year over year and professional service revenues to grow in a range of 2% to 8% year over year. Our first quarter revenue growth guidance includes contributions from new sales growth and strong retention, offset by the limited contribution from CIE as weak customer hiring trends persist.

現在，讓我們轉向 2024 年第一季和全年展望，我將提供 GAAP 和非 GAAP 指引。2024年第一季度，我們預期總營收年增0%至3%，專業服務營收年增2%至8%。我們第一季的營收成長指引包括新銷售成長和強勁留任的貢獻，但由於客戶招聘趨勢持續疲軟而被 CIE 的有限貢獻所抵消。

In Q1, we are planning for health care utilization to increase over recent experience. This will result in an insurance cost ratio between 82.5% to 86.5%, reflecting our seasonally lower 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 $1.81 to $2.55 per share and first quarter adjusted net income per diluted share to be in the range of $2.10 to $2.85 per share.

在第一季度，我們計劃根據最近的經驗增加醫療保健利用率。這將導致保險成本比率在 82.5% 至 86.5% 之間，反映出我們每年年初的季節性較低比率。這使得我們對第一季 GAAP 每股攤薄淨利潤的估計為每股 1.81 美元至 2.55 美元，第一季調整後每股攤薄淨利潤為 2.10 美元至 2.85 美元。

Regarding our full-year 2024 guidance, we are forecasting our year-over-year total revenues to be in the range of down 1% to up 4% with our professional service revenues to grow in the range of 1% to 5% year over year.

關於 2024 年全年指引，我們預計總收入將年減 1% 至成長 4%，而專業服務收入將年增 1% 至 5%年。

We expect our insurance cost ratios to follow seasonal patterns and reflect favorable cost ratios in the first and second quarters as participants work through deductibles. We then foresee a return to higher insurance cost ratios in the third and fourth quarters as deductibles are exhausted and when pooling limits reset in October. We should continue to benefit from strong workers' compensation performance. These trends bring our full year insurance cost ratio forecast to be in the range of 86.5% to 88.5%.

我們預計我們的保險成本比率將遵循季節性模式，並在參與者計算免賠額時反映第一和第二季有利的成本比率。然後，我們預計，隨著免賠額用完以及 10 月重新設定統籌限額，第三季和第四季保險成本比率將恢復到較高水準。我們應該繼續受益於強勁的工人薪酬表現。這些趨勢使我們對全年保險成本比率的預測在 86.5% 至 88.5% 之間。

This ICR projection is about 2 to 4 points higher than our 2023 result, reflecting increased healthcare utilization, higher provider costs, particularly for outpatient services, and higher pharmaceutical pricing as we see continued adoption of GLP-1s as an example. We will watch this closely throughout 2024 and assess any refinements needed as we determine quarterly pricing changes.

這項ICR 預測比我們2023 年的結果高出約2 至4 個百分點，反映了醫療保健利用率的增加、提供者成本的增加（特別是門診服務）以及更高的藥品定價（以我們看到GLP-1 的持續採用為例）。我們將在 2024 年密切關注這一情況，並在確定季度定價變化時評估所需的任何改進。

Regarding our expectation for operating expenses, we will continue to manage our expenses prudently. As such, we expect a modest low single-digit increase in operating expenses for the year. Given these anticipated trends, we expect full year GAAP net income per diluted share to be in the range of $4.57 to $6.08 per share and adjusted net income per diluted share to be in the range of $5.80 to $7.35 per share.

對於營運費用的預期，我們將繼續審慎管理費用。因此，我們預計今年的營運費用將出現溫和的低個位數成長。鑑於這些預期趨勢，我們預計全年 GAAP 攤薄後每股淨利潤將在每股 4.57 美元至 6.08 美元之間，調整後每股攤薄後淨利潤將在每股 5.80 美元至 7.35 美元之間。

Our guidance for adjusted net income per diluted share includes a net benefit of between $0.25 and $0.30 per share at the midpoint versus a benefit of $0.13 per share last year as a result of our 2023 share repurchases. For 2024, we're assuming in our guidance a level of share repurchases that will continue to offset normal dilution arising from stock compensation.

我們對調整後每股攤薄淨利潤的指導包括中點每股 0.25 美元至 0.30 美元的淨收益，而去年我們 2023 年股票回購帶來的收益為每股 0.13 美元。對於 2024 年，我們在指導中假設一定程度的股票回購將繼續抵銷股票薪酬帶來的正常稀釋。

Before I pass the call back to Burton for his concluding remarks, I would like to take a moment and thank him for the leadership he has provided TriNet over the years and for the successful partnership we forged over the last three-and-a-half of those. We accomplished a lot in such a short period of time. Your vision for building TriNet into an enduring company redefined what a PEO could be and created over $6 billion of enterprise value during your tenure. I know I speak for all TriNet colleagues when I wish you nothing but happiness in your well-deserved retirement. Burton?

在我回電給伯頓以聽取他的總結發言之前，我想花一點時間感謝他多年來為 TriNet 提供的領導以及我們在過去三年半中建立的成功合作夥伴關係那些。我們在如此短的時間內就取得了許多成就。您將 TriNet 打造成一家持久發展的公司的願景重新定義了 PEO 的含義，並在您任職期間創造了超過 60 億美元的企業價值。我知道我代表所有 TriNet 同事發言，只祝你們在當之無愧的退休生活中幸福快樂。伯頓？

Thank you, Kelly. TriNet is a unique company made up of incredible, passionate people. Throughout my over 15 years' leading TriNet, our colleagues have been dedicated to solving problems for small businesses across the country, providing unparalleled service to our customers, building value for our shareholders, and most of all, supporting each other as we build this enduring company.

謝謝你，凱利。TriNet 是一家獨特的公司，由令人難以置信、充滿熱情的員工組成。在我領導TriNet 的15 年多的時間裡，我們的同事一直致力於為全國各地的小型企業解決問題，為我們的客戶提供無與倫比的服務，為我們的股東創造價值，最重要的是，在我們建立這個持久的企業的過程中互相支持公司。

I could not be prouder of the work that our team does every day helping entrepreneurs to fulfill their dreams and ensuring that our country continues to be the center of innovation for the world. I am grateful to every one of our colleagues who have allowed me to leave them by channeling our combined passion in service of our customers. In today's world, a diverse team of almost 4,000 committed people can do miraculous things.

我為我們的團隊每天所做的工作感到無比自豪，他們幫助企業家實現夢想，並確保我們的國家繼續成為世界創新的中心。我感謝我們的每一位同事，他們讓我離開他們，並展現了我們為客戶服務的共同熱情。在當今世界，一支由近 4,000 名忠誠員工組成的多元化團隊可以創造奇蹟。

As I end my last earnings call, I would like to thank my colleagues at TriNet. Thank you for what you do for our small business customers across the country every single day. I know you will continue to do this and will thrive in the future.

在結束上次財報電話會議時，我要感謝 TriNet 的同事。感謝您每天為我們全國各地的小型企業客戶所做的一切。我知道你會繼續這樣做，並且在未來會蓬勃發展。

I am excited for my own future with my wife, Carol, and my family, including my first grandchild. I am particularly excited to work with TriNet over the next year and watch all of you continue to grow and prosper. I am happy to take your questions now. Operator?

我對我和我的妻子卡羅爾以及我的家人（包括我的第一個孫子）的未來感到興奮。我特別高興能在明年與 TriNet 合作，並看到你們所有人繼續成長和繁榮。我很高興現在回答你的問題。操作員？

(Operator Instructions) Kevin McVeigh, UBS.

（操作員說明）Kevin McVeigh，UBS。

Hey, thanks so much.

嘿，非常感謝。

Hey, Kevin.

嘿，凱文。

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

嘿，伯頓。讓我補充一下我的祝賀。我的意思是，您已經在 TriNet 擔任管理員很長時間了，創造了很多價值，祝賀您退休，迎來您的第一個孫子，並且擁有一份非常非常出色的工作。執行長很少會按照自己的意願離職，這對你來說是一個了不起的結果，所以恭喜你。

Thank you.

謝謝。

Hey, Burton, this might be a little unfair, but what do you think has been your greatest sense of upside from when you set out 15 years ago, I mean -- and you can't say the stock because that's obviously been terrific, but just you've been so early in the sector. Just any thoughts on that more for the broader audience to make because I think there's just going to be a real knowledge for you as you transition into retirement.

嘿，伯頓，這可能有點不公平，但我的意思是，從 15 年前你出發以來，你認為你最大的上升空間是什麼？領域的起步太早了。對於更廣泛的受眾來說，只是有更多的想法，因為我認為當您過渡到退休時，您將獲得真正的知識。

Well, thank you, Kevin. And look, I can retire because of this amazing team. I can retire because the culture is focused on the customer. I can retire because we weren't following anyone, we were trying to lead the industry with unique technology, the vertical strategy, the service model. And it's not about me, it's about a culture that's been created where this company is going to do great, and I would never do this if I didn't think it would continue to grow and prosper.

嗯，謝謝你，凱文。看吧，因為這支出色的團隊，我可以退休了。我可以退休，因為我們的文化是以客戶為中心。我可以退休，因為我們沒有追隨任何人，我們試圖以獨特的技術、垂直策略和服務模式引領產業。這不是關於我，而是關於一種已經創造的文化，在這種文化中，這家公司將會做得很好，如果我不認為它會繼續發展和繁榮，我就永遠不會這樣做。

So I think like any CEO, what have I done well? I haven't changed the mission or the vision every year. I haven't said go after this shiny object or that shiny object. For a while, I was a little bit of a lone ranger in the technology needs to be, the substrate of scale and service to the customer. So we've been investing in technology during my entire tenure. I don't have to catch up right now.

所以我想像任何執行長一樣，我在哪些方面做得很好？我每年都沒有改變使命或願景。我並沒有說去追求這個閃亮的物體或那個閃亮的物體。有一段時間，我在技術需求、規模基礎和客戶服務方面有點獨行俠。因此，在我的整個任期內，我們一直在技術方面進行投資。我現在不必趕上。

But I really appreciate your comments. I believe that our tech-first approach with great service and scale and the leadership around this executive leadership table, combined with Mike coming in the door, is a great combination. I'm really proud of that. I'm proud of the team more than my individual contribution.

但我真的很感謝你的評論。我相信，我們以技術為先的方法、優質的服務和規模以及圍繞這個執行領導小組的領導力，再加上麥克的到來，是一個偉大的組合。我真的為此感到自豪。比起我個人的貢獻，我為團隊感到驕傲。

That's terrific. I'm going to leave it there because the rest are just numbers and just (inaudible).

真了不起。我將把它留在那裡，因為剩下的只是數字（聽不清楚）。

Thank you. You're awesome, Kevin.

謝謝。你太棒了，凱文。

Thank you.

謝謝。

Kyle Peterson, Needham.

凱爾彼得森，尼達姆。

Hey, Kyle.

嘿，凱爾。

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

謝謝。嘿，夥計們，下午好。我想我會接聽數字。但我想稍微談談該指南，看看你們對今年的 CIE 有何假設。我想根據客戶的談話，你們聽起來相當保守，但只是想看看你們是否在後半部分做出了任何改進，或者我們今天坐在這裡時你們的期望是什麼。

Hi Kyle, it's Kelly. Good to hear from you. Great question because it's something we watch every single day. As we're thinking about CIE overall, 2023 was the lowest CIE year TriNet has ever had. And I think it's just proof of our resilient model, frankly, that we were able to still grow revenue and profits and get there. As we're looking into 2024, what we're really forecasting on the low end of guidance is really low single-digit CIE. At the high end of guidance, we're at middle single-digit CIE and think that it is skewed towards the back half of the year.

嗨，凱爾，我是凱利。很高興聽到你的消息。這是一個很好的問題，因為這是我們每天都會看的東西。當我們整體考慮 CIE 時，2023 年是 TriNet 有史以來 CIE 最低的一年。坦白說，我認為這只是我們彈性模式的證明，我們仍然能夠增加收入和利潤並實現這一目標。當我們展望 2024 年時，我們對指導低端的真正預測是真正低個位數的 CIE。在指導的高端，我們的 CIE 處於中間個位數，並認為它偏向今年下半年。

Great. That's very helpful. And then just a follow-up, great to see the dividend announcement today. I just want to pick your brain on capital return priorities for the coming year. I guess, last year was a big year, obviously, for the buyback. I guess is the dividend going to be the big or the prominent priority today outside of offsetting with dilution? Or how are you guys thinking about returning capital to shareholders for the current year?

偉大的。這非常有幫助。然後是後續行動，很高興看到今天的股息公告。我只是想請教一下您來年的資本回報優先事項。我想，去年對於回購來說顯然是重要的一年。我想除了稀釋抵銷之外，今天的股息是否會成為最重要或最重要的優先事項？或者你們如何考慮今年向股東返還資本？

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

是的，凱爾。目前，我們的指南假設與資本回報相關，只是稀釋的抵消，因為由於時間、股價和各種其他因素，我們實際上並沒有考慮到這一點。但我們只是在年中製定了我們的金融政策。所以我們的優先事項確實沒有改變。

We're going to first invest in the business to drive growth. We'll look at accretive M&A. But as it relates to returning capital to shareholders, we will look at both share repurchase opportunistically as well as the newly instituted dividends that we're doing. So our target is, on average, 75% return of free cash flow to shareholders, and we'll look at the tools we've got to see what the best approach is.

我們將首先投資業務以推動成長。我們將專注於增值併購。但由於它涉及向股東返還資本，因此我們將機會主義地考慮股票回購以及我們正在實施的新設立的股息。因此，我們的目標是平均為股東帶來 75% 的自由現金流回報，我們將研究我們擁有的工具，看看什麼是最好的方法。

Great. That's really helpful. I'll leave it there. Thanks, guys, and Burton, congratulations and enjoy the retirement.

偉大的。這真的很有幫助。我會把它留在那裡。謝謝，夥伴們，伯頓，恭喜你，享受退休生活。

Thank you so much.

太感謝了。

Jared Levine, TD Cowen.

賈里德·萊文，TD·考恩。

Hey, Jared.

嘿，賈里德。

Yeah, I just would like a little bit to start. Yeah, first, I wanted to say congrats Burton on the retirement. But in terms of the FY24 guide, can you give us a little more color in terms of what you're assuming in terms of average WSE growth and how to think about the cadence of WSE levels for '24?

是的，我只是想開始一點。是的，首先，我想說祝賀伯頓退休。但就 24 財年指南而言，您能否就您對 WSE 平均成長的假設以及如何考慮 24 年 WSE 水準的節奏向我們提供更多資訊？

Yeah. Well, as you know, we don't forecast WSEs or give a future guide on WSEs, Jared. But the way that we're thinking about the pieces of it is given the sales momentum that we've got and the strong January that Burton talked about, we've really narrowed the gap between new sales and customer attrition. And CIE definitely helps bring that up as well with the assumption that we've got right now.

是的。嗯，正如你所知，我們不會預測 WSE，也不會提供有關 WSE 的未來指南，賈里德。但考慮到我們所擁有的銷售動能以及伯頓談到的一月份的強勁表現，我們思考各個部分的方式確實縮小了新銷售和客戶流失之間的差距。CIE 肯定會根據我們現在的假設來幫助提出這一點。

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

因此，我們並沒有真正預測 WSE，但您可以從我們的專業服務收入成長預測以及我們對 GAAP 總收入的假設中看​​出這一點，粗略地假設 CIE 底部的真正低個位數是如何產生的。

Got it. And then in terms of the FY24 ICR guide, does that assume a health insurance margin that's aligned with what was contemplating your long-term ICR target of 88% to 90%?

知道了。然後，就 2024 財年 ICR 指南而言，是否假設健康保險利潤率與您考慮的 88% 至 90% 的長期 ICR 目標一致？

Yeah. When we related to 2024, really probably the difference in terms of us versus the 88% to 90% is the expected continued favorability from workers' compensation. Now we are looking at definitely healthcare prices increasing. We're looking at increase in pharma prices, et cetera. So that is contributing significantly to the year-over-year drop because we're not anticipating 15.7% NIM or 84.3% insurance cost ratio going forward. So the increase in health prices, et cetera, are really driving that piece.

是的。當我們談到 2024 年時，我們與 88% 至 90% 的人之間的差異實際上可能是對工人賠償的預期持續有利。現在我們看到醫療保健價格肯定在上漲。我們正在考慮藥品價格的上漲等。因此，這對同比下降做出了重大貢獻，因為我們預計未來淨利差 (NIM) 或保險成本比率不會達到 15.7% 或 84.3%。因此，醫療保健價格的上漲等因素確實推動了這一趨勢。

And if I could sneak in one more here. In terms of one of your competitors last week announced a partnership with Workday, just thoughts on that announcement in terms of that competitive advantage on new client sales for organizations with 100-plus WSEs.

如果我能再在這裡偷偷溜進去一次就好了。就上週您的一個競爭對手宣布與 Workday 建立合作夥伴關係而言，請考慮一下該公告對於擁有 100 多家 WSE 的組織在新客戶銷售方面的競爭優勢。

So I'll take that. There is plenty of opportunity for all the competitors in the space. We are still less than 50% of quotes or against a direct competitor. And the opportunity to address that space from a TriNet standpoint is completely in our hands with our software and our vision of Denali and where it's going.

所以我會接受的。該領域的所有競爭對手都有很多機會。我們的報價仍低於 50%，或與直接競爭對手競爭。從 TriNet 的角度來看，解決這個問題的機會完全掌握在我們的軟體和我們對 Denali 的願景及其發展方向的手中。

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

其他競爭對手對此採取了截然不同的方法。我相信，當您在未來幾年進入市場時，我們的專業知識、我們的服務和我們的核心技術將帶領我們進入一個非常非常有競爭力的地方。但每個人都有足夠的空間，我也歡迎其他人也參與這個市場領域。

Great. Thank you.

偉大的。謝謝。

Andrew Nicholas, William Blair.

安德魯尼古拉斯、威廉布萊爾。

Hey, guys, good afternoon.

嘿，夥計們，下午好。

Hey.

嘿。

I wanted to extend my congratulations as well, Burton. It's been a pleasure working with you. I do want to ask a question on the quarter and the guide, though on the salesforce, in particular, it sounds like new ACV growth is very good. January momentum continued. How much of that are you baking into the guidance at this point? And if there's any way to translate some of those ACV growth numbers into the professional services growth guide, that would be helpful for us to make that linkage.

我也想表達我的祝賀，伯頓。很高興與您合作。我確實想問一個關於季度和指南的問題，儘管特別是關於銷售人員，聽起來新的 ACV 成長非常好。一月份的勢頭仍在繼續。目前您在指導中考慮了多少內容？如果有任何方法可以將一些 ACV 成長數字轉化為專業服務成長指南，這將有助於我們建立這種連結。

Why don't you start?

為什麼不開始呢？

Yeah. So it's a great question, and there's a couple of pieces to that. First, the strategy around the salesforce and sales leadership is working. We are up 19% in net new sales capacity. That's a pure capacity number. Efficiency is also up. So you're seeing dramatic increases year over year. January was way up as we talked about, and that's against a really strong January last year. So there's a lot of momentum in the net new ACV and the onboarding of our new clients.

是的。這是一個很好的問題，其中有幾個部分。首先，圍繞銷售團隊和銷售領導力的策略正在發揮作用。我們的淨新銷售能力成長了 19%。這是一個純粹的容量數字。效率也上去了。所以你會看到逐年急劇增長。正如我們所討論的，一月份大幅上漲，而去年一月份的表現非常強勁。因此，淨新 ACV 和新客戶的加入有很大的動力。

Additionally, attrition is way down and retention is incredibly strong right now. So we're entering the year from a very strong position. It is really nice to be ahead of the curve at the beginning of the year, which is a continued momentum from Q4.

此外，人員流失率大幅下降，目前的保留率非常高。因此，我們在進入這一年時處於非常有利的地位。在年初就處於領先地位真是太好了，這是第四季以來的持續勢頭。

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

所以我看到這種情況繼續加速，我們認為我們需要真正保守的是 CIE 或我們安裝基礎的招募。這是一個不太受我們控制的領域。這是一個將會回來的地區。一月份科技產品銷售強勁。這需要時間問題，但控製成本並現實地將淨新 ACV 轉化為盈利能力已納入指導方針，我將把它交給凱利。

Yeah. I mean I think the critical point, Andrew, is that at the level of ACV that we're seeing in January, we're really narrowing the gap that we've talked about between new sales and attrition of our customers. So to Burton's point, when hiring comes back, it's going to be terrific, but we're not planning on that right now. And in terms of what's baked into our forecast, we were well aware of our January results when we created the guidance that we came through.

是的。我的意思是，安德魯，我認為關鍵點是，就我們一月份看到的 ACV 水平而言，我們確實正在縮小我們所討論的新銷售和客戶流失之間的差距。因此，就伯頓的觀點而言，當招募回來時，這將是非常棒的，但我們現在不打算這樣做。就我們的預測而言，當我們制定指導方針時，我們很清楚一月份的結果。

So that is fully baked into our professional service revenue forecast right now. But you're seeing the growth year over year. If you dig into the underlying assumptions, we're assuming low single-digit price increases. We're assuming expansion of products and wallet share as we're offering new things to the market. We're looking at our broker channel as another source of value there. So all of those things add up together to make our professional service revenue growth rate.

因此，這已完全納入我們的專業服務收入預測中。但你會看到逐年增長。如果你深入研究基本假設，我們會假設價格漲幅較低。當我們向市場提供新產品時，我們假設產品和錢包份額會擴大。我們正在將我們的經紀商管道視為另一個價值來源。因此，所有這些因素加在一起，使我們的專業服務收入實現了成長率。

That's really helpful. And then maybe as a follow-up to that, Kelly, specifically. It sounds like you've narrowed the gap in terms of new sales relative to attrition. Is the expectation, maybe not this year, but in '25 and '26 that, that gap can be positive and then you can layer on a normal CIE on top of that? I guess it goes to Burton's medium-term ambitions, high single, low double?

這真的很有幫助。然後也許作為後續行動，凱利，具體來說。聽起來您已經縮小了新銷售與流失量之間的差距。也許不是今年，但在 25 和 26 年，這種差距可能是正面的，然後你可以在此基礎上疊加一個正常的 CIE 嗎？我想這符合伯頓的中期目標，高單打，低雙打？

Yeah, you get it exactly. That's really our goal is to, as we've been investing cutting back our back office to be able to invest in the front office and our salesforce, we are trying to both narrow that gap, so that new sales will actually more than cover attrition and CIE will be upside.

是的，你明白了。這確實是我們的目標，因為我們一直在投資削減後台部門，以便能夠投資於前台部門和銷售人員，我們正在努力縮小這一差距，以便新的銷售實際上不僅僅是彌補人員流失而CIE將會有上行空間。

All right, great. And then if I could just squeeze in one more on the worksite employee trend. So I know there's some noise there with the reclassification and the platform user access fee. But just under the hood, like anything that you would say at the vertical level in terms of strength or stabilization relative to prior quarters as we think about maybe the things that are outside of your control?

好吧，太好了。然後我可否再介紹一下工作場所員工的趨勢。所以我知道重新分類和平台用戶訪問費方面存在一些噪音。但就在幕後，就像您在垂直層面上所說的相對於前幾季的實力或穩定性而言，當我們考慮可能超出您控制範圍的事情時？

In terms of we saw some favorability from seasonal hiring in certain verticals. As we're looking forward to January as well, we are seeing a little bit of choppiness across them. No real clear signal at this point in time, and that's why we wanted to be conservative on our CIE forecast and really trend it towards the back half of the year.

就某些垂直行業的季節性招聘而言，我們看到了一些好處。當我們也在期待一月份時，我們發現它們之間有一些波動。目前還沒有真正明確的訊號，這就是為什麼我們希望對 CIE 預測持保守態度，並真正將其趨勢推向今年下半年。

Understood. Thank you.

明白了。謝謝。

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

安德魯，再補充一點，我們將繼續在銷售引擎和銷售代表的成長方面進行大量投資。所以你所說的方式正是我們前進的方向。我們需要額外的容量。增加的產能不僅能保持相同的效率，而且更有效率。只要是這種情況，我們就會對銷售組織進行投資。我們在這樣做的同時保持總體成本相對穩定。

So Kelly and the team have done an amazing job of reallocating dollars, keeping the service levels up, keeping referrals up. But we will continue to invest significantly into the sales channel throughout 2024 as long as the results continue the way they did in January.

因此，凱利和團隊在重新分配資金、維持服務水準、維持推薦方面做得非常出色。但只要業績持續保持 1 月的水平，我們將在 2024 年繼續對銷售管道進行大量投資。

Great. Thank you and congrats again, Burton.

偉大的。謝謝你，再次恭喜你，伯頓。

Thanks.

謝謝。

(Operator Instructions) Andrew Polkowitz, JPMorgan.

（操作員指示）Andrew Polkowitz，摩根大通。

Hey, good evening guys. First, Burton I want to say congrats from myself, but also Tien-Tsin is always in my head, the long run you've had, so I wanted to share his congratulations as well.

嘿，大家晚上好。首先，伯頓，我想表達我自己的祝賀，但天進一直在我的腦海裡，你已經取得了長足的進步，所以我也想分享他的祝賀。

Thank you so much.

太感謝了。

No problem. So I wanted to start with a question on the enrollment season. So obviously, we're through that. And I was just curious on what you guys saw as far as benefits attach rates. Were there any differences or improvements versus the last year or two?

沒問題。所以我想先問一個關於招生季節的問題。顯然，我們已經度過了難關。我只是好奇你們對福利附加率的看法。與過去一兩年相比，有什麼差異或改進嗎？

Yeah, it's a really good question. We're seeing slightly lower benefit attach rates. I think it really is a signal of what's going on in the economy right now. We're seeing a little bit of buy down on plans as well, Andrew. But you are still seeing the vertical differences that we normally see. Financial services has the highest benefits attach rate. Tech is probably second when we think about it from a vertical perspective. But they're all down maybe [1 point or 2].

是的，這是一個非常好的問題。我們看到福利附加率略有下降。我認為這確實是當前經濟狀況的一個訊號。安德魯，我們也看到了一些計畫的減少。但您仍然會看到我們通常看到的垂直差異。金融服務業的福利附加率最高。當我們從垂直角度思考時，科技可能會排在第二位。但也許他們都倒下了[1 分或 2 分]。

Okay. Makes sense. Thanks for that Kelly. And then just one follow-up for me. I wanted to ask, obviously, really strong ACV growth, and I just wanted to see what you attributed most to. So obviously, sales force tenure has been improving for a while now. And you called out better client onboarding. Is there anything in the demand environment maybe to call out to? Just basically the attribution analysis on that strong ACV growth would be great.

好的。說得通。謝謝你的凱利。然後是我的一個後續行動。顯然，我想問的是，蘋果醋的成長真的很強勁，我只是想看看你將其歸因最多的是什麼。顯然，銷售人員的任期已經持續了一段時間。您也呼籲更好的客戶引導。需求環境中有什麼值得呼籲的嗎？基本上，對 ACV 強勁成長的歸因分析就很棒了。

It's so great question. As you pointed out, first is just pure sales capacity. We have more sales reps. Second is that, as we've talked about on earlier calls, the uncertainty in the business environment is driving people to the PEO solution. So complexity and uncertainty is driving people to go to this type of model. And then finally, the vertical focus is resonating in the market. And the technology backbone is providing the best service we have ever delivered in my tenure at TriNet.

這是一個很好的問題。正如您所指出的，首先是純粹的銷售能力。我們有更多的銷售代表。其次，正如我們在之前的電話會議中談到的那樣，商業環境的不確定性正在促使人們採用 PEO 解決方案。因此，複雜性和不確定性正在促使人們採用這種類型的模型。最後，垂直焦點正在市場中引起共鳴。技術支柱正在提供我在 TriNet 任職期間所提供的最佳服務。

So referrals are up, broker channel is up, direct sales is up, and the market, I believe, will continue to give us this opportunity. And as you know, there's about 40% of the revenue or the ACV generated in Q1. So, we're pretty excited about where we are today to start ahead of the curve, and that's one of the reasons I'm particularly excited about how the year pans out. Additionally, you have the retention levels at record highs because people are appreciating the solution we're delivering.

因此，推薦量增加了，經紀人管道增加了，直銷也增加了，我相信市場將繼續給我們這個機會。如您所知，大約 40% 的收入或 ACV 是在第一季產生的。因此，我們對今天的領先地位感到非常興奮，這也是我對這一年的進展感到特別興奮的原因之一。此外，您的保留水平創下歷史新高，因為人們非常欣賞我們提供的解決方案。

That's great. And thank you for answering my questions. And again, congratulations, Burton.

那太棒了。感謝您回答我的問題。再次恭喜你，伯頓。

Thank you. Appreciate you.

謝謝。感謝你。

David Grossman, Stifel.

大衛·格羅斯曼，斯蒂菲爾。

Hey, David.

嘿，大衛。

Hey, Burton, congratulations. Well, it's been a fun run.

嘿，伯頓，恭喜你。嗯，這是一場有趣的跑步。

It has. Thank you.

確實如此。謝謝。

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

你是我在這個行業最老的朋友，我會想念你的。

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

嘿，麥克比我好得多，而且他也更聰明。

Yeah, he couldn't be nearly as enthusiastic.

是的，他不可能這麼熱情。

That is probably true.

這可能是真的。

We'll have a chance to catch up. Mike, you are welcome as well.

我們還有機會趕上。麥克，也歡迎你。

Thank you.

謝謝。

So, just I know it's getting late here, so thanks for squeezing in. I guess I have two questions. One is there was a question asked earlier, I think, about the partnership with Workday by one of your competitors. And obviously, you went by buying the Zenefits platform and integrating that into your own business.

所以，我知道現在已經很晚了，所以感謝您抽出時間。我想我有兩個問題。一是我認為早些時候有人問過一個關於您的競爭對手與 Workday 的合作關係的問題。顯然，您購買了 Zenefits 平台並將其整合到您自己的業務中。

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

我只是好奇你是否在幾年前發起交易時看到了這一點，或者你今天是否看到了不同的情況，市場發生了什麼變化，可能會迫使人們在擴大規模並實現足夠的規模時進行自我擴張。確保他們今天決定在PEO 工作的時間比兩年前想像的要長？

So it's a really good question. The way I see it is the complexity of the environment. If you can continue to scale the larger customers, offer them services, as well as an alternative insurance construct other than just the single employer plan, which is awesome when you're smaller, I believe you can keep the customers longer.

所以這是一個非常好的問題。我的看法是環境的複雜性。如果您可以繼續擴大規模較大的客戶，為他們提供服務，以及單一雇主計劃之外的替代保險結構（這在您規模較小時非常棒），我相信您可以保留客戶更長時間。

I think the challenge that people are finding right now is that if you're primarily people-driven, it's really hard to scale. And if you combine the people-driven approach with inflation, it's hard to maintain profits. So what we've been able to do is build the platform, use the scale of the platform in service of the customers, but not have to add one new employee for every 10 new customers.

我認為人們現在面臨的挑戰是，如果主要以人為驅動，那麼就很難擴展。如果將以人為本的方法與通貨膨脹結合起來，就很難維持利潤。所以我們能做的就是建立平台，利用平台的規模來服務客戶，但不必每10個新客戶就增加1個新員工。

So you're seeing us break out of a model where our costs are climbing as the service complexity goes up because we're tweaking the platform every single day, and we have a vision for the future of the platform. And it's not only about running payroll. It's about the knowledge base and the knowledge engine that's behind it. It's about the ability to pivot based on the complexity of each customer, so that you can grow with them.

因此，您會看到我們突破了一種模式，隨著服務複雜性的增加，我們的成本也在攀升，因為我們每天都在調整平台，並且我們對該平台的未來有一個願景。這不僅僅是關於工資管理。它涉及知識庫及其背後的知識引擎。這是關於根據每個客戶的複雜性進行調整的能力，以便您可以與他們一起成長。

And you and I have talked about it, the complexity around access controls, the complexity around union payroll, the complexity around all types of other ask by the customers is really important. What I'm particularly excited about with Denali is the API-first strategy allows us to connect with many partners out there not tied to a single closed platform.

你和我已經討論過，存取控制的複雜性、工會薪資的複雜性、客戶提出的所有類型的其他要求的複雜性非常重要。Denali 讓我特別興奮的是 API 優先策略讓我們能夠與許多合作夥伴建立聯繫，而不受單一封閉平台的束縛。

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

您會考慮在不提供健康和工人補償的情況下僱用某人嗎？

Well, that's the vision, absolutely. I think that what we're focused on is the professional service revenues. And what you're seeing is in our forecast for '24, we are going to grow professional service revenues in excess of the gross revenue, which includes insurance. And that's what the barbell is about, and that's where some of this professional service revenues will come from in '24. But as you get into '25 and beyond, I absolutely believe that the right answer is to provide the insurance construct that the companies choose and have multiple insurance constructs for those clients.

嗯，這絕對是願景。我認為我們關注的是專業服務收入。您在我們對 24 年的預測中看到的是，我們專業服務收入的成長將超過包括保險在內的總收入。這就是槓鈴的意義所在，這就是 24 年部分專業服務收入的來源。但當你進入 25 歲及以後，我絕對相信正確的答案是提供公司選擇的保險結構，並為這些客戶提供多種保險結構。

All right. Got it. And one other thing, and it's really more probably a cyclical question, but your MCR has been strong for multiple years now, right. And this is the first year that I can remember that we've faced these kinds of year-over-year declines, which is industry-wide, of course, it's not unique to try TriNet. So is there anything that you want to remind us of that we should just keep in mind as we go into '24 and '25 that if we remain in this higher cost environment, things that maybe we haven't seen for years, we should just keep in the back of our minds as we look forward?

好的。知道了。還有一件事，這實際上更可能是一個週期性問題，但你的 MCR 多年來一直很強勁，對吧。我記得今年是我們第一次面臨這種同比下降的情況，這是整個行業的情況，當然，嘗試 TriNet 並不是唯一的情況。那麼，您是否想提醒我們，當我們進入“24”和“25”時，我們應該牢記，如果我們繼續處於這種成本較高的環境中，那麼我們可能已經多年未曾見過的事情，我們應該當我們展望未來時，只是將其拋在腦後？

David, it's a great question. As you know, we monitor very detailed health claims to make sure we're understanding trends, and that's one of the reasons we reprice a cohort of our business every single quarter, so that we can see the trends and bake it into our insurance cost trends, et cetera.

大衛，這是一個很好的問題。如您所知，我們監控非常詳細的健康索賠，以確保我們了解趨勢，這就是我們每個季度對一批業務重新定價的原因之一，以便我們可以看到趨勢並將其納入我們的保險成本趨勢等。

Really, as we think about things like COBRA, I think the COBRA we have today is very different than the COBRA that there was before because there's Affordable Care Act plans available to everyone out there. And so we do see less COBRA uptake than had historically seen like during the financial crisis, et cetera.

確實，當我們考慮像 COBRA 這樣的事情時，我認為我們今天的 COBRA 與以前的 COBRA 有很大不同，因為每個人都可以使用平價醫療法案計劃。因此，我們確實看到 COBRA 的採用率比歷史上金融危機等時期的情況要少。

But I do expect as well there to be people buying down plans just due to the significant increase in healthcare costs. So they will be buying plans with higher deductibles with more of a coinsurance type relationship, et cetera, would be what I anticipate. But it's something we're watching very closely, especially with pharma costs, which obviously are getting a lot of press these days.

但我確實預計也會有人因為醫療費用的大幅增加而購買計劃。因此，他們將購買具有更高免賠額的計劃，並具有更多的共同保險類型關係，等等，這將是我的預期。但這是我們正在密切關注的事情，尤其是製藥成本，這些天顯然受到了許多媒體的關注。

Right. And sorry, just one last thing just on workers' comp. Is there -- it sounds like you expect favorable experience in '24. Did I hear that right?

正確的。抱歉，關於工人補償的最後一件事。是嗎——聽起來你期待在 24 年有良好的經驗。我沒聽錯吧？

Yeah, we are expecting continued favorable experience in 2024 related to workers' compensation.

是的，我們預計 2024 年在工人賠償方面將繼續取得良好的經驗。

And will that be just less of the tailwind in '24 than it was in '23 or is it a tailwind year over year?

24 年的順風車會比 23 年的順風車少一點還是逐年順風車？

I think it's less of a tailwind. We had some very favorable prior period development in 2023. I do not expect it at the same level. As we move into 2024, we tend to be relatively conservative reservers in general as we're looking at emerging trends in our workers' comp book. But I think our workers' comp team is one of the best in the industry as well at working with our clients and making sure we're ensuring safe workplaces, and I think that gives us a competitive advantage as well.

我認為這不太順風。我們在 2023 年取得了一些非常有利的前期發展。我不期望它處於同一水平。進入 2024 年，當我們關注工人薪酬簿中的新興趨勢時，我們總體上傾向於相對保守的儲備者。但我認為我們的工人補償團隊是業內最好的團隊之一，在與客戶合作並確保我們確保安全的工作場所方面，我認為這也為我們帶來了競爭優勢。

All right. All right, guys. Well, thank you very much. Burton, good luck, and I'm sure we'll be in touch, so thanks again.

好的。好吧，夥計們。好的，謝謝。伯頓，祝你好運，我相信我們會保持聯繫，再次感謝。

Yes. I look forward to seeing you. Thanks. Bye-bye.

是的。我期待著與你見面。謝謝。再見。

Bye-bye.

再見。

Thank you. This concludes today's question-and-answer session and today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.

謝謝。今天的問答環節和電話會議到此結束。我們感謝大家參加今天的演講。您現在可以斷開線路並度過美好的一天。