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Jun 30, 2024
Dayforce Q2 2024 Earnings Report
Dayforce's Q2 2024 results were released, showcasing growth in recurring revenue and overall revenue, alongside strategic business developments.
Key Takeaways
Dayforce reported a 16% increase in total revenue, reaching $423.3 million, and a 20% increase in Dayforce recurring revenue, amounting to $321.6 million. The company's operating profit was $14.1 million, with a net loss of $1.8 million, but an adjusted net income of $76.2 million. The company announced a $500 million share repurchase program and the date for its first Investor Day.
Total revenue increased by 16% to $423.3 million.
Dayforce recurring revenue grew by 20% to $321.6 million.
Operating profit stood at $14.1 million, while the company experienced a net loss of $1.8 million.
The Board of Directors approved a $500 million share repurchase program.
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 provided revenue and Adjusted EBITDA guidance for Q3 and full year 2024.
Positive Outlook
- Total revenue for Q3 2024 is expected to be $425 million to $430 million, an increase of 13% to 14%.
- Total revenue for full year 2024 is projected to be $1,736 million to $1,746 million, a 15% increase.
- Dayforce recurring revenue, excluding float, for Q3 2024 is expected to be $289 million to $294 million, an increase of 18% to 20%.
- Dayforce recurring revenue, excluding float, for full year 2024 is projected to be $1,163 million to $1,168 million, a 21% increase.
- Adjusted EBITDA for full year 2024 is expected to be $490 million to $505 million.
Challenges Ahead
- Guidance assumes an average U.S. dollar to Canadian dollar foreign exchange rate of $1.38 for Q3 and Q4 2024.
- Dayforce has not reconciled the Adjusted EBITDA ranges for the third quarter or full year of 2024 to the directly comparable GAAP financial measures
- The forward-looking statements are based on assumptions that Dayforce has made in light of its industry experience and its perceptions of historical trends, current conditions, expected future developments and other factors that it believes are appropriate under the circumstances.
- The assumptions and Dayforce’s future performance or results involve risks and uncertainties (many of which are beyond its control).
- The impact of adverse economic and market conditions on its business, operating results, or financial condition.
Revenue & Expenses
Visualization of income flow from segment revenue to net income