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Sep 30, 2023
Dayforce Q3 2023 Earnings Report
Ceridian delivered a strong quarter, driven by Dayforce recurring revenue growth and increased revenue and profitability outlook for Q4 and fiscal year 2023.
Key Takeaways
Ceridian reported a strong third quarter with total revenue of $377.5 million, up 19.6% year-over-year, and Dayforce recurring revenue growth of 34.6%. The company raised its revenue and profitability outlook for the fourth quarter and fiscal year 2023.
Total revenue increased by 19.6% year-over-year to $377.5 million.
Dayforce recurring revenue grew by 34.6% year-over-year to $279.6 million.
Operating profit was $26.5 million, compared to an operating loss of $3.7 million in the prior year.
Adjusted operating profit was $89.4 million, compared to $50.1 million in the prior 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 is issuing guidance for the fourth quarter and full year of 2023. For the fourth quarter, total revenue is expected to be $398 million to $401 million, and Dayforce recurring revenue, excluding float, is expected to be $255 million to $257 million. For the full year, total revenue is expected to be $1,512 million to $1,515 million, and Dayforce recurring revenue, excluding float, is expected to be $962 million to $964 million.
Positive Outlook
- Total revenue of $398 million to $401 million, an increase of 18% to 19% on a GAAP and a constant currency basis.
- Dayforce recurring revenue, excluding float, of $255 million to $257 million, an increase of 29% to 30% on a GAAP and a constant currency basis.
- Tax migration from legacy infrastructure to the same platform as Dayforce is expected to contribute approximately 430 basis points of growth.
- Float revenue of $39 million.
- Adjusted EBITDA of $97 million to $99 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income