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Mar 31
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.
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
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.