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Dayforce
🇺🇸 NYSE:DAY
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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.

Total Revenue
$400M
Previous year: $336M
+18.9%
EPS
$0.5
Previous year: $0.23
+117.4%
Live Dayforce Customers
6.39K
Previous year: 5.99K
+6.7%
Gross Profit
$170M
Previous year: $135M
+25.7%
Cash and Equivalents
$570M
Previous year: $432M
+32.0%
Free Cash Flow
$63.8M
Total Assets
$9.01B
Previous year: $7.92B
+13.8%

Dayforce

Dayforce

Dayforce Revenue by Segment

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

Company Overview

Full financial data and analysis

View Dayforce