TriNet focuses on the right business, where our unique value is core to our customer success. In an industry that is trending towards undifferentiated offerings, TriNet stands alone with our vertical strategy. Our market-leading scale and strong capital structure enabled us to complete two important acquisitions. These acquisitions had a significant impact on the acceleration of our digital transformation and diversification of our product offerings. In addition to investing in these acquisitions, we aggressively return capital to shareholders. We believe our stock represents significant value, especially when measured against the long-term opportunity for TriNet. Turning to our financial performance. Professional service revenues grew 9% year-over-year in the fourth quarter and for the full year, professional service revenues grew 18% year-over-year.

In the fourth quarter, total revenues were flat year-over-year and in line with the top end of guidance. However, when you add back the impact from our industry-leading 2022 credit program, total revenues would have grown by 4% in the fourth quarter. For the full year, total revenues grew 8% year-over-year to $4.9 billion. The largest total revenue achievement in our history, while we acknowledge our challenge with respect to volume in 2022, total revenues and professional service revenues grew well in excess of our average WSE count. The significant revenue growth occurred even after accounting for inorganic revenue. Our outperformance is directly attributable to our vertical strategy and customer selection process. Our focus on total lifetime value of a customer has driven us to build products and services appreciated by our core verticals.

These include technology, financial services and life sciences. The variables that impact total lifetime value include client growth rate, importance of choice in high-quality medical benefits adoption of the full suite of capabilities, including both our service and advanced technology, all of which lead to a longer tenure with TriNet. Our core verticals have historically delivered a value in excess of 10x that of a non-core client. We believe that our approach is sustainable, unique and will continue to deliver profitable growth over time. In fact, the next great company is being created today where TriNet has the opportunity to support their growth and enable their people. In the fourth quarter, we are pleased with our GAAP earnings per share of $0.78 and our adjusted net income per share of $1.11 both outperforming our guidance.

In 2022, GAAP earnings per share came in at $5.61 and adjusted net income per share came in at $7.07. We once again generated strong cash flow from operations during the year. This enabled TriNet to deploy over $700 million in 2022 against our capital priorities without issuing additional debt. Looking forward, based on TriNet's current valuation and long-term outlook, share repurchase remains a priority. Dependent on market conditions, in 2023, we intend to deploy an additional $500 million towards our repurchase program. Our capital deployment and this increase to our repurchase program underscores the repeatability, predictability and cash generative outcome of our business model. TriNet finished the quarter with approximately 349,000 WSEs in our PEO down 4% year-over-year.

TriNet's WSE count is driven by three factors: new clients and their WSEs coming to TriNet, retention of existing clients in WSEs and net hiring by our clients in the installed base. Beginning with new clients, we experienced significantly improved sales productivity on a per rep basis by optimizing processes throughout the year. However, in the aggregate, we were unable to take full advantage of our new client opportunity in 2022 due to lack of sales capacity. Looking to 2023, in spite of the current economic conditions, I am optimistic, we will accelerate new sales and the related WSEs in our core verticals, well in excess of the past few years. This will be accomplished through a concerted effort and investment in additional sales capacity, incremental marketing contribution and continued results from the newly implemented scalable processes.

Notably, TriNet experienced dramatic growth in new sales in January. We grew new ACV and WSEs by 35% year-over-year driven by our improved execution. This result is a key indicator of sales performance in 2023 because January is the ideal time to switch medical plans and restart W-2s. Sales hiring is underway to achieve continued growth and strong sales leadership is in place throughout the U.S. Marketing's impact on January sales was also notable with strong lead generation, enhanced brand recognition and advanced propensity to buy instrumentation utilized to yield impressive results. Turning to retention, which is the second factor contributing to WSE volume, our retention in 2022 was lower than the historic average. The shifting macroeconomic environment over the last several years contributed to this outcome.

Our customers stayed longer and added employees quicker, which led to twice the number of large customers in our book versus our historic average. Ultimately, as we articulated in the first quarter of last year, we saw a number of these large customers leave partially due to M&A activity. As I stated previously, this large company attrition trend has abated and average customer size has normalized. As I look to 2023, I am very confident that our customer retention will increase and return to our historical experience or better. My belief is informed by a significantly increased retention rate in January. Additionally, we made investments in our customer experience function throughout 2022. I expect these investments to contribute to both higher retention and referrals going forward.

I want to thank our service team for focusing on the KPIs and consistently exceeding aggressive average speed to answer and first call resolution metrics during 2022. An early result of this enhanced customer service is reflected in our NPS score, where we have seen a significant improvement. We fundamentally believe that in the SMB, HCM industry, it is imperative to provide high quality customer service, along with an industry-leading technology experience. This is an and, and not an or. Lastly, net hiring by our clients, which we refer to as change in existing or CIE is the third factor contributing to WSE volume, because of our industry unique exposure to the most dynamic SMBs, net hiring by our customers is an important driver of volume.

However, TriNet's customer selection only indirectly influences CIE outcome. In 2022, net hiring by clients was a tale of two halves. In the first half, hiring continued at record pace, consistent with that of what we experienced in the second half of 2020 and throughout 2021. The hiring we saw during this period was stronger than in prior years. In the second half, as interest rates increased and the economy slowed hiring cool dramatically, especially in the fourth quarter where we saw flat net hiring across our installed base. In fact, we saw hiring cool further in January 2023. Our 2023 guidance reflects what we believe to be a very conservative assumption for hiring. This assumption at the low end would reflect a 10-year low hiring rate by our installed base other than 2020, which was due to the pandemic.

In stark contrast to our low end guidance, we surveyed our customers regarding their 2023 hiring plans. We found a surprising amount of optimism, especially from customers with 100 or fewer employees. These customers, which represent about two-thirds of our volume expect to grow their employee count in 2023 on average 10%. We are watching this data carefully. And as the next few months evolve, our customer base will inform us about this resiliency. To close out the WSE discussion, during 2023, we expect to grow new business significantly. We expect to improve retention to normalized or better levels and we have a conservative assumption for hiring in our installed base, which reflects the uncertain economic environment. We understand the challenging economic environment we face in 2023.

But as we look to 2024 and beyond, it is our belief that we should be growing WSEs at high-single to low-double digit rates. With respect to M&A in 2022, we made two important acquisitions, Zenefits and Clarus R+D, which accelerate both our digital transformation and product expansion. We believe that a PEO must own its own technology, platform, software and product development to take advantage of the true potential in this industry. TriNet Zenefits technology is exceeding our expectations and validates our thesis that this is an accelerator of our digital transformation. In the short time since the Zenefits acquisition, we delivered a fully integrated broker benefit solution. This fills an important product gap between an HRIS software solution and a full PEO.

TriNet's offering in this area is unmatched for the subset of customers where the PEO combined with brokered benefits fits. The future of TriNet is a cloud-based company offering HRIS and PEO side by side. A dynamic TriNet customer will seamlessly move between exceptional HRIS software and the industry-leading PEO as their complexity and growth dictates. An additional exciting acquisition we completed in 2022 is Clarus R+D. Clarus offers R&D tax credit services for SMBs. Clarus further expands our product and service offering for both HRIS and PEO clients. We see a significant opportunity to create value for our large cohort of eligible customers with the Clarus product. These are exciting times for the PEO industry. I believe there will be long-term growth due to strong secular tailwinds such as regulatory complexity, access to healthcare and remote work.

We view TriNet's stock price through the lens of these secular tailwinds as well as innovation and operational improvements TriNet has made in 2022. We believe that TriNet's stock offers tremendous long-term value. We acted on that view by repurchasing over $500 million of TriNet stock in 2022. Should our stock continue to offer similar value in the coming year, we have another $500 million available to us to deploy. With that, I will pass the call to Kelly for her review of our financials and guidance. Kelly?

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

Taken in aggregate, while pleased with our financial performance, we ended 2022 with lower volumes than forecast. As Burton discussed, for 2023, we are optimistic that our customer retention will normalize and we believe we can accelerate new business growth and are seeing positive signs in these areas in January despite the tougher economic conditions. We are committed to delivering financial returns and deploying capital in an efficient and effective manner that our shareholders have come to expect from us even as we support our new business growth initiatives, product and technology development and continued improvements in our customer service experience. Now let's review our financials. During the fourth quarter, total revenues were flat year-over-year, in line with the top end of our guidance range.

For the full year, we grew total revenues by 8%, also in line with the top end of our guidance. The performance in total revenues for the fourth quarter and the full year was driven by growth in rate as we had continued high benefit participation by our WSEs, we also saw continued growth from mix as we added customers in our white-collared verticals, and our customers bought more of our products and services. Finally, TriNet benefits contributed roughly 1 point of growth for the fourth quarter and full year. In the fourth quarter, as discussed on our October earnings call, we contributed $50 million to our 2022 credit program, which lowered total revenue growth by 4 points. That brings our total contribution of $75 million to our credit programs for the full year and lowered total revenue growth by just over 1 point.

Professional service revenue in the quarter grew 9% year-over-year, in line with our guidance. For the full year, professional service revenue grew by 18%, in line with the top end of guidance. This growth in professional service revenue for the full year was driven by a few factors. First, HRIS revenue contributed 7% to year-over-year growth. Second, rate contributed 6%. Third, mix contributed 2% to growth as more of our customers purchased more of our services and we saw continued shift to our white-colored verticals and average WSE volume for the year contributed approximately 2% to growth. For the fourth quarter, our insurance cost ratio was approximately 88% lower than our forecasted range for the quarter of 93% to 97%. For the full year, our insurance cost ratio was approximately 84%, also lower than our latest guidance range for the year of 85% to 86%, the lower insurance cost ratio for the quarter and year was largely driven by lower overall health utilization than forecast as well as a mix shift by our customers to lower cost regions.

Workers' compensation contributed to the lower insurance cost ratio in the quarter and year as both claim frequency and severity remains subdued along with some favorable prior period development. Both the health and workers' comp trends have benefited from the remote work trend. Regarding operating expenses in the quarter, the year-over-year growth of 25% was substantially driven by our acquisition of Zenefits midway through the first quarter of 2022. We will begin to lap those expenses in the second quarter of 2023 and have integrated most functions at this time. When we purchased benefits, we knew it would not be accretive in the first few years, and we understood that there would be sizable integration and acquisition costs incurred in 2022, some of which will continue into 2023.

As Burton mentioned earlier, we've been pleased with the technology and the capabilities it will bring as we fill in the product suite between our HRIS and our PEO solutions. One other notable expense item during Q4 was a $12 million charge for remaining lease obligations for office space we have vacated. Moving on to earnings per share. Fourth quarter net income per diluted share exceeded the top end of our guidance by $0.71 to $0.78, down 24% year-over-year. The fourth quarter earnings outperformance versus our guidance was driven by lower than forecast insurance costs along with some minor expense favorability. The decline versus prior year reflects expenses, including acquisition and integration expenses incurred due to the acquisition of Zenefits.

This brought full year GAAP net income per diluted share to $5.61, up 11% versus 2021. Fourth quarter adjusted net income per diluted share also exceeded guidance by $0.61 to $1.11, down 2% year-over-year. This brought full year adjusted net income per share to $7.07 up 25% versus 2021, outperforming the top end of guidance by $0.67. During the fourth quarter, we repurchased $139 million worth of stock including $109 million on a targeted $250 million tender offer. While the tender was undersubscribed, I was pleased and investors' confidence in our longer-term stock price. This brought our total repurchase to $519 million for the year, comprised of two tender offers as well as open market purchases. Our capital priorities have not changed, and we will continue to invest for growth.

We have confidence in our business and believe that our current share price, our stock provides significant value. Given the Board share repurchase reauthorization that Burton just mentioned, if it remains similarly undervalued, we intend to repurchase up to $500 million in 2023, subject to market conditions. Now let's turn to our 2023 first quarter and full year outlook, where I will provide both GAAP and non-GAAP guidance. In the first quarter of 2023, we expect total revenue growth to be in the range of 1% to 2% year-over-year and professional service revenue growth to be in the range of 4% to 6% year-over-year. Our revenue growth guidance remains muted and reflects our expectation that the fourth quarter trend we saw in customer hiring or CIE, will persist into the first half of 2023.

In Q1, we are planning for health care utilization to return closer to our priced for historical experience. This will result in an insurance cost ratio of between 83% to 86.5%, reflecting our seasonally higher ratios at the beginning of each year. This brings our estimate of first quarter GAAP net income per diluted share to be in the range of $1.33 to $1.82 per share and first quarter adjusted net income per diluted share to be in the range of $1.70 to $2.20 per share. Regarding our full year 2023 guidance, we are forecasting our year-over-year total revenue to be in a range of down 2% to up 2%, with our professional service revenue expected to grow between 1% and 5% year-over-year. We expect our insurance cost ratios to follow seasonal patterns and reflect historical utilization rates with favorable cost ratios in the first and second quarters as members work through deductibles, we then expect a return to higher insurance cost ratios in the third and fourth quarters as deductibles are exhausted as well as when pooling limits reset in October.

With this trend, we expect our full year insurance cost ratio to be in the range of 87.5% to 89%. This insurance cost ratio projection is about 3 to 5 points higher than our 2022 results, reflecting health care utilization returning to a range closer to our expected pricing, higher utilization levels and higher provider costs given the inflationary environment. We will watch this closely throughout 2023 to assess any refinements needed as we determine quarterly pricing changes. As a rule of thumb, every 1 point movement in our 2023 expected ICR will translate into approximately $0.50 in adjusted EPS, given our slightly lower share count since 2022. Regarding our expectation around operating expenses, our expected remaining costs associated with the integration and acquisition of Zenefits and Clarus R&D include a number of time-based compensation awards, technology integration and rebranding amongst other things.

We anticipate the remaining 2023 acquisition and integration costs to be $25 million to $30 million, with none extending beyond 2023. Given these anticipated trends, we expect full year GAAP net income per diluted share to be in the range of $3.30 to $4.08 per share and adjusted net income per diluted share to be in the range of $4.85 to $5.65 per share. Our guidance includes share repurchases to offset normal dilution arising from stock compensation. Our guidance does not include any other intended repurchases under our current authorization due to the variability of repurchase timing and price. With that, I will return the call to Burton for his closing remarks. Burton?

Burton M. Goldfield: Thank you, Kelly. I am pleased with TriNet's 2022 financial and operating performance, especially in light of the challenging economic backdrop for much of 2022. We believe we will grow new business meaningfully year-over-year in 2023. We will keep our customers longer by supporting them in the ways that they require in this new business environment. I want to thank the entire TriNet team, but specifically call out our sales force for an exceptional performance in January 2023. TriNet's future is a cloud-based company offering HRIS and PEO side by side, a technology-enabled business services company unlike any other in our industry. We will further differentiate ourselves by offering the SMBs in our target verticals and industry-leading user experience coupled with an efficient service offering and access to the finest benefits. With that, I look forward to your questions. Operator?

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