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Dec 31, 2022
Dayforce Q4 2022 Earnings Report
Ceridian's Q4 2022 earnings were reported, showcasing strong growth in Dayforce recurring revenue and overall financial performance.
Key Takeaways
Ceridian reported strong Q4 2022 results, with Dayforce recurring revenue increasing by 31.7% year-over-year (34.7% on a constant currency basis) and total revenue up by 19.1% (23.0% on a constant currency basis). The company exceeded its guidance across all metrics, driven by Dayforce recurring revenue momentum, operating profit expansion, and increased cash flow generation.
Dayforce recurring revenue increased by 31.7% year-over-year, or 34.7% on a constant currency basis.
Total revenue increased by 19.1% year-over-year, or 23.0% on a constant currency basis.
Operating profit was $3.3 million, compared to $2.6 million in the prior year.
Net loss was $5.2 million, compared to $9.5 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 provided guidance for Q1 2023 and full year 2023, including revenue and adjusted EBITDA targets.
Positive Outlook
- Total revenue of $359 million to $363 million, or an increase of 22% to 24% on a GAAP basis and 25% to 26% on a constant currency basis for Q1 2023.
- Dayforce recurring revenue, excluding float of $222 million to $224 million, or an increase of 23% to 24% on a GAAP basis and 25% to 26% on a constant currency basis for Q1 2023.
- Adjusted EBITDA of $92 million to $95 million for Q1 2023.
- Total revenue of $1,480 million to $1,500 million, or an increase of 19% to 20% on a GAAP basis and 20% to 21% on a constant currency basis for FY 2023.
- Dayforce recurring revenue, excluding float of $936 million to $946 million, or an increase of 24% to 26% on a GAAP basis and 25% to 27% on a constant currency basis for FY 2023.
Challenges Ahead
- Float revenue of $45 million for Q1 2023
- Adjusted EBITDA of $360 million to $375 million for FY 2023.
- Expects Bureau recurring revenue excluding float to decline greater than 40% on a GAAP basis and on a constant currency basis as a result of tax migration and the sunsetting of certain legacy products for Q1 2023.
- Expects PowerPay recurring revenue excluding float to remain flat on a GAAP basis and to increase 5 to 6% on a constant currency basis for Q1 2023.
- Expects Bureau recurring revenue excluding float to decline greater than 38% on a GAAP basis and to decline greater than 36% on a constant currency basis as a result of tax migration and the sunsetting of certain legacy products for FY 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income