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Dec 31, 2020
Dayforce Q4 2020 Earnings Report
Ceridian's financial performance exceeded expectations despite economic headwinds from the pandemic, with Dayforce recurring services revenue growing significantly excluding float revenue.
Key Takeaways
Ceridian reported a slight increase in total revenue for Q4 2020, with significant growth in Dayforce recurring services revenue excluding float revenue. The company's cloud revenue also saw growth, and the number of Dayforce customers increased. However, the company reported a net loss for the quarter, and Adjusted EBITDA declined.
Dayforce recurring services revenue grew by more than 19% excluding float revenue.
Cloud revenue increased, driven by Dayforce and Powerpay.
The number of Dayforce customers live on the platform increased to 4,906.
The company continues to invest in product development and sales & marketing.
Revenue by Segment
Forward Guidance
For the first quarter of 2021, Ceridian anticipates Dayforce recurring services revenue between $141 million and $142 million, and Adjusted EBITDA between $32 million and $36 million.
Positive Outlook
- Dayforce recurring services revenue is expected to grow approximately 10% to 11% on a GAAP basis.
- Excluding float revenue, Dayforce recurring services revenue is expected to grow approximately 18% to 19% on both a GAAP and constant currency basis.
- Dayforce revenue of $176 million to $178 million is anticipated.
- Excluding float revenue, Dayforce revenue is expected to grow approximately 10% to 11% on a GAAP basis and 9% to 10% on a constant currency basis.
- Cloud revenue of $194 million to $197 million is expected.
Challenges Ahead
- Total revenue is expected to decline approximately 1% to an increase of approximately 1% on a GAAP basis.
- Total revenue is expected to decline approximately 2% to flat on a constant currency basis.
- Float revenue is expected to be approximately $6 million within Dayforce revenue.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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