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Jun 30, 2020
Dayforce Q2 2020 Earnings Report
Second quarter financial performance was strong with increased demand for Dayforce.
Key Takeaways
Ceridian announced its Q2 2020 financial results, reporting Dayforce recurring services revenue of $118.5 million, up 15.7% year-over-year. Total revenue was $192.6 million, a decline of 1.9%. Net income was $5.5 million, and diluted net income per share was $0.04.
Dayforce recurring services revenue increased by 15.7% year-over-year, reaching $118.5 million.
Excluding float revenue, Dayforce recurring services revenue grew by 23.3% year-over-year to $110.2 million.
Total revenue decreased by 1.9% year-over-year to $192.6 million.
Operating profit was $4.0 million, while adjusted EBITDA was $37.5 million, down 14.8% year-over-year.
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 third quarter of 2020, expecting Dayforce recurring services revenue of $118 million to $120 million and total revenue of $198 million to $203 million.
Positive Outlook
- Dayforce recurring services revenue is expected to increase approximately 8% to 10% on a GAAP and constant currency basis.
- Excluding float revenue, Dayforce recurring services revenue is expected to grow approximately 14% to 16% on a GAAP and constant currency basis.
- Dayforce revenue is projected to increase approximately 8% to 10% on a GAAP basis and 8% to 11% on a constant currency basis.
- Excluding float revenue, Dayforce revenue is expected to grow approximately 12% to 14% on a GAAP basis and 13% to 15% on a constant currency basis.
- Cloud revenue is anticipated to increase approximately 5% to 7% on a GAAP basis and 5% to 8% on a constant currency basis.
Challenges Ahead
- Total revenue is expected to decline approximately 2% to flat on a GAAP basis.
- Total revenue is expected to decline approximately 1% to an increase of approximately 1% on a constant currency basis.
- Float revenue is expected to be approximately $7 million within Dayforce revenue.
- Float revenue is expected to be $9 million within Cloud revenue.
- Float revenue is expected to be $10 million within total revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income