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Dayforce
🇺🇸 NYSE:DAY
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•
Mar 31, 2024

Dayforce Q1 2024 Earnings Report

Dayforce reported a strong first quarter with growth in revenue and operating profit, exceeding guidance across key metrics. The company rebranded from Ceridian HCM Holding Inc. to Dayforce, Inc.

Key Takeaways

Dayforce reported strong Q1 2024 results, with total revenue of $431.5 million, up 16.4%, and Dayforce recurring revenue of $337.2 million, up 24.3%. Operating profit increased to $40.7 million, and the company raised its guidance across all key metrics.

Total revenue increased by 16.4% to $431.5 million.

Dayforce recurring revenue grew by 24.3% to $337.2 million.

Operating profit was $40.7 million, representing 9.4% of total revenue.

Net income was $7.1 million, with adjusted net income reaching $68.0 million.

Total Revenue
$432M
Previous year: $371M
+16.4%
EPS
$0.43
Previous year: $0.31
+38.7%
Live Dayforce Customers
6.58K
Previous year: 6.18K
+6.4%
Gross Profit
$228M
Previous year: $160M
+42.4%
Cash and Equivalents
$393M
Previous year: $429M
-8.2%
Free Cash Flow
-$18.8M
Total Assets
$10.8B
Previous year: $10.1B
+7.1%

Dayforce

Dayforce

Dayforce Revenue by Segment

Forward Guidance

Dayforce provided guidance for the second quarter and full year of 2024. Total revenue is expected to be $414 million to $419 million for Q2 and $1.73 billion to $1.74 billion for the full year. Dayforce recurring revenue, excluding float, is projected to be $276 million to $279 million for Q2 and $1.163 billion to $1.168 billion for the full year.

Positive Outlook

  • Total revenue is expected to increase by 13% to 15% in Q2 2024.
  • Total revenue is expected to increase by 14% to 15% for the full year 2024.
  • Dayforce recurring revenue, excluding float, is expected to increase by 19% to 21% in Q2 2024.
  • Dayforce recurring revenue, excluding float, is expected to increase by 21% for the full year 2024.
  • Adjusted EBITDA is projected to be $108 million to $113 million for Q2 2024.

Challenges Ahead

  • Guidance assumes an average U.S. dollar to Canadian dollar foreign exchange rate of $1.37 for Q2 2024, compared to $1.34 in Q2 2023.
  • Guidance assumes an average U.S. dollar to Canadian dollar foreign exchange rate of $1.35 for the full year 2024, consistent with 2023.
  • The company has not reconciled the Adjusted EBITDA ranges for the second quarter or full year of 2024 to the directly comparable GAAP financial measures.
  • Uncertainty regarding depreciation and amortization could impact future periods.
  • Share-based compensation expense and related employer taxes could impact future periods.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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