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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.
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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