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Dec 31, 2024
Dayforce Q4 2024 Earnings Report
Dayforce reported strong Q4 2024 results with significant revenue growth and increased profitability.
Key Takeaways
Dayforce reported a strong fourth quarter in 2024, marked by a 16% increase in total revenue to $465.2 million and a 19% increase in Dayforce recurring revenue to $347.9 million. The company's adjusted EBITDA rose to $129.2 million, representing a 27.8% margin. The company also issued guidance for Q1 and full year 2025.
Total revenue increased by 16% year-over-year to $465.2 million.
Dayforce recurring revenue grew by 19% year-over-year to $347.9 million.
Cloud recurring gross margin improved to 80.0%.
Adjusted EBITDA increased to $129.2 million, with a margin of 27.8%.
Revenue by Segment
Forward Guidance
Dayforce provided guidance for the first quarter and full year 2025, including revenue and adjusted EBITDA margin targets.
Positive Outlook
- Q1 2025 total revenue, excluding float, is expected to be $421 million to $427 million, an increase of approximately 13.5% to 15% on a GAAP basis.
- Q1 2025 Adjusted EBITDA margin is expected to be 31% to 32%.
- Full year 2025 total revenue, excluding float, is projected to be $1,745 million to $1,760 million, an increase of approximately 11.9% to 12.8% on a GAAP basis.
- Full year 2025 Dayforce recurring revenue, excluding float, is expected to be $1,315 million to $1,340 million, an increase of approximately 13.4% to 15.5% on a GAAP basis.
- Full year 2025 Adjusted EBITDA margin is expected to be 32%.
Challenges Ahead
- Guidance assumes stable economic conditions.
- Guidance assumes stable competitive environment in the HCM market.
- Guidance assumes stable demand for HCM 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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