Dayforce Q2 2023 Earnings Report
Key Takeaways
Ceridian reported a strong second quarter in 2023, marked by a 21.5% increase in total revenue to $365.9 million and a significant rise in Dayforce recurring revenue, which grew by 38.0% to $268.2 million. The company's operating profit reached $29.4 million, a notable improvement from the previous year's operating loss, and net income was $3.1 million, compared to a net loss of $19.8 million in the prior year. Ceridian also raised its full year outlook across all growth and profitability metrics.
Total revenue increased by 21.5% year-over-year to $365.9 million.
Dayforce recurring revenue grew by 38.0% year-over-year to $268.2 million.
Operating profit improved to $29.4 million, compared to an operating loss of $6.5 million in the prior year.
Net income was $3.1 million, a significant turnaround from a net loss of $19.8 million in the previous year.
Dayforce
Dayforce
Dayforce Revenue by Segment
Forward Guidance
Ceridian provided guidance for the third quarter and full year of 2023, indicating continued growth in total revenue and Dayforce recurring revenue. The company expects total revenue to increase by 17% to 18% in Q3 and by 20% to 21% for the full year. Dayforce recurring revenue, excluding float, is projected to increase by 25% to 26% in Q3 and by 26% to 27% for the full year.
Positive Outlook
- Total revenue is expected to increase by 17% to 18% in Q3 2023.
- Dayforce recurring revenue, excluding float, is projected to increase by 25% to 26% in Q3 2023.
- Total revenue is projected to increase by 20% to 21% for the full year 2023.
- Dayforce recurring revenue, excluding float, is expected to increase by 26% to 27% for the full year 2023.
- Tax migration from legacy infrastructure is expected to contribute approximately 430 basis points of growth in Q3 2023.
Challenges Ahead
- Other recurring revenue, excluding float, is expected to decline approximately 34% to 37% in Q3 2023.
- PowerPay recurring revenue, excluding float, is expected to remain flat on a GAAP basis in Q3 2023.
- Other recurring revenue, excluding float, is projected to decline approximately 35% to 38% for the full year 2023.
- PowerPay recurring revenue, excluding float, is expected to remain flat on a GAAP basis for the full year 2023.
- The guidance assumes a stable economic and competitive environment, which may be subject to change.
Revenue & Expenses
Visualization of income flow from segment revenue to net income