Loading...
•
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%.
Dayforce
Dayforce
Dayforce Revenue by Segment
Revenue by Segment
Dayforce recurring Revenue
CapyFin.comPowerpay recurring Revenue
CapyFin.comProfessional services Revenue
CapyFin.com 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.
- Guidance assumes stable implementation capabilities and cycle times.
- Guidance assumes stable foreign exchange rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income