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Dayforce
🇺🇸 NYSE:DAY
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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.

Total Revenue
$371M
Previous year: $293M
+26.4%
EPS
$0.31
Previous year: $0.13
+138.5%
Live Dayforce Customers
6.18K
Previous year: 5.61K
+10.2%
Gross Profit
$160M
Previous year: $103M
+55.5%
Cash and Equivalents
$429M
Previous year: $355M
+20.8%
Total Assets
$10.1B
Previous year: $11.1B
-9.0%

Dayforce

Dayforce

Dayforce Revenue by Segment

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

Company Overview

Full financial data and analysis

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