TriNet Group, Inc. (NYSE:TNET) Q4 2019 Earnings Conference Call - Final Transcript
Feb 13, 2020 • 05:00 pm ET
Good day and welcome to TriNet's Fourth Quarter 2019 Conference Call. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference over to Alex Bauer, Investor Relations. Please go ahead.
Thank you, operator. Good afternoon, everyone, and welcome to TriNet's 2019 fourth quarter conference call. Joining me today are Burton M. Goldfield, our President and CEO; and Richard Beckert, our Chief Financial Officer. Our prepared remarks were prerecorded. Burton will begin with an overview of our fourth quarter operating and financial performance. Richard will then review our financial results in more detail. We will then open up the call for the Q&A session.
Before we begin, please note that today's discussion will include our 2020 first quarter and full-year guidance 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 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.
In addition, our discussion today will include non-GAAP financial measures, including our forward-looking guidance for non-GAAP net service revenues, adjusted EBITDA margin and adjusted net income per share. For reconciliations of our non-GAAP financial measures to our GAAP financial results, please see our earnings release or 10-Q filing for our fourth quarter and full-year 2019, respectively, both of which are available on our website or through the SEC website. A reconciliation of our non-GAAP forward-looking guidance to the most directly comparable GAAP measures is also available on our website.
With that, I will turn the call over to Burton for his opening remarks.
Burton M. Goldfield
Thank you, Alex. As I reflect on TriNet's 2019 fiscal year and fourth quarter performance, I am especially pleased with our Q4 sales, improved customer retention and WSE growth. We delivered improved retention as a result of excellent execution by our customer services team. Customer satisfaction continues to be strong. We benefited from robust hiring within our installed base by servicing customers in our targeted verticals. Our fourth quarter financial results were in line with revised guidance. Looking forward, I am confident that we have taken the necessary steps to mitigate 2019's higher health costs.
In the fourth quarter, we grew GAAP total revenues 11% year-over-year to $1 billion. This is the first time TriNet generated over