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Mar 31, 2025
Dayforce Q1 2025 Earnings Report
Dayforce reported strong revenue growth and improved profitability in Q1 2025.
Key Takeaways
Dayforce delivered robust Q1 2025 performance with a 12% year-over-year revenue increase, net income more than doubling to $14.9 million, and notable gains in adjusted EPS and free cash flow.
Total revenue reached $481800000, up 11.7% year-over-year.
Net income rose to $14900000, more than double the $7100000 from Q1 2024.
Free cash flow turned positive at $19500000 versus a loss last year.
Live Dayforce customers grew to 6929, an increase of 5.4% YoY.
Revenue by Segment
Forward Guidance
Dayforce expects continued revenue growth into Q2 2025 and the full year, driven by strong demand for its HCM solutions.
Positive Outlook
- Q2 2025 total revenue guidance of $454M to $460M.
- Expects Q2 float revenue of $46M.
- Adjusted EBITDA margin guidance of 30.5% to 31.5% for Q2.
- Full year 2025 revenue forecast raised to $1.929B to $1.944B.
- Strong momentum in Dayforce recurring revenue with projected full year growth of up to 15.7%.
Challenges Ahead
- Float revenue declined 8.9% YoY in Q1.
- Powerpay recurring revenue fell 7.3% YoY.
- Other recurring revenue decreased 31.4% YoY.
- Customer funds obligations increased to over $5.36B.
- Operating income margin decreased to 6.4% from 9.4% last year.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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