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Dec 31, 2023
Dayforce Q4 2023 Earnings Report
Dayforce demonstrated strong financial performance with significant revenue growth and profitability improvements.
Key Takeaways
Dayforce reported a strong fourth quarter and full year 2023, marked by a 18.9% increase in total revenue to $399.7 million and a notable rise in Dayforce recurring revenue, which grew by 30.1% to $292.1 million. The company also saw improvements in profitability, with operating profit reaching $38.8 million, and net income at $45.6 million. The company's performance was driven by record enterprise go-lives and operating cash flows.
Total revenue increased by 18.9% year-over-year to $399.7 million.
Dayforce recurring revenue grew by 30.1% year-over-year to $292.1 million.
Operating profit significantly improved to $38.8 million, compared to $3.3 million in the previous year.
Net income reached $45.6 million, a substantial turnaround from a net loss of $5.2 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
Dayforce provided guidance for the first quarter and full fiscal year 2024, anticipating continued growth and strategic investments.
Positive Outlook
- Total Revenue is expected to increase by 14% to 15% in Q1 2024.
- Dayforce recurring revenue, excluding float, is projected to increase by 20% to 22% in Q1 2024.
- Adjusted EBITDA is forecasted to be $123 million to $126 million in Q1 2024.
- Total Revenue is projected to increase by 14% for FY 2024.
- Dayforce recurring revenue, excluding float, is expected to increase by 20% to 21% for FY 2024.
Challenges Ahead
- Other recurring revenue is expected to decline mid-single digits in Q1 2024 due to the sunsetting of certain legacy solutions.
- PowerPay® recurring revenue is expected to increase high-single digits in Q1 2024.
- Other recurring revenue is expected to decline mid-single digits for FY 2024 due to the sunsetting of certain legacy solutions.
- PowerPay recurring revenue is expected to increase high-single digits for FY 2024.
- Float guidance reflects the near-term rate environment and the rolling maturity of the laddered core portfolio.
Revenue & Expenses
Visualization of income flow from segment revenue to net income