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Mar 31, 2023
Dayforce Q1 2023 Earnings Report
Ceridian's Q1 2023 results were reported, demonstrating strong growth in Dayforce recurring revenue and exceeding profitability objectives.
Key Takeaways
Ceridian reported a strong first quarter in 2023, with total revenue of $370.6 million, representing a 26.4% increase year-over-year. Dayforce recurring revenue increased by 43.8% year-over-year, reaching $271.2 million. The company's operating profit was $38.4 million, and net income was $9.9 million.
Total revenue increased by 26.4% year-over-year, reaching $370.6 million.
Dayforce recurring revenue grew by 43.8% year-over-year, amounting to $271.2 million.
Operating profit reached $38.4 million, a significant improvement from the previous year's operating loss.
6,179 Dayforce customers were live on the platform as of March 31, 2023.
Dayforce
Dayforce
Dayforce Revenue by Segment
Revenue by Segment
Dayforce recurring Revenue
CapyFin.comPowerpay recurring Revenue
CapyFin.comOther recurring Revenue
CapyFin.comProfessional services Revenue
CapyFin.com Forward Guidance
Ceridian issued guidance for the second quarter and full year of 2023. Second quarter total revenue is expected to be $356 million to $360 million, an increase of 18% to 20%. Full year total revenue is expected to be $1,480 million to $1,500 million, an increase of 19% to 20%.
Positive Outlook
- Total revenue is expected to increase by 18% to 20% in the second quarter.
- Dayforce recurring revenue, excluding float, is expected to increase by 22% to 23% in the second quarter.
- Tax migration from legacy infrastructure is expected to contribute approximately 400 basis points of growth in the second quarter.
- Total revenue is expected to increase by 19% to 20% for the full year.
- Dayforce recurring revenue, excluding float, is expected to increase by 25% to 26% for the full year.
Challenges Ahead
- Other recurring revenue is expected to decline approximately 36% to 38% in the second quarter.
- PowerPay recurring revenue is expected to decline low single digits in the second quarter.
- Tax migration from legacy infrastructure is expected to contribute approximately 460 basis points of growth in fiscal year 2023.
- Other recurring revenue is expected to decline approximately 35% to 38% for the full year.
- PowerPay recurring revenue is expected to decline low single digits for the full year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income