Group 1 - Analysts forecast that Dayforce (DAY) will report quarterly earnings of $0.56 per share, reflecting a year-over-year increase of 30.2% [1] - Expected revenues for Dayforce are projected to be $477.63 million, indicating a 10.7% increase compared to the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating that analysts have not revised their initial projections [2] Group 2 - Revisions to earnings estimates are crucial for predicting investor actions regarding the stock, as there is a strong correlation between earnings estimate trends and short-term price performance [3] - Analysts expect 'Revenue- Recurring' to be $421.40 million, showing a year-over-year change of +10.1% [5] - 'Revenue- Professional services and other' is anticipated to reach $55.49 million, reflecting a year-over-year increase of +13.7% [5] - 'Other recurring' revenue is forecasted to be $15.12 million, indicating a year-over-year decline of -22.5% [5] Group 3 - The total cloud recurring revenue is expected to reach $410.24 million, suggesting a year-over-year increase of +13% [6] - Dayforce shares have returned +14% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [6] - With a Zacks Rank 2 (Buy), Dayforce is anticipated to outperform the overall market in the near future [6]

Core Viewpoint - Dayforce (DAY) is expected to report first-quarter 2025 results on May 7, with projected revenues indicating growth despite potential foreign currency headwinds [1][7]. Revenue Expectations - DAY anticipates first-quarter 2025 revenues between $421 million and $427 million, reflecting a growth of 13.5-15% on a GAAP basis and 15.5-17% on a constant-currency basis [1]. - The consensus estimate for DAY's first-quarter revenues is $477.63 million, representing a year-over-year increase of 10.69% [1]. Earnings Projections - The Zacks Consensus Estimate for DAY's first-quarter earnings is set at 56 cents per share, indicating a year-over-year growth of 30.23% [2]. - DAY has beaten the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average surprise of 21.50% [2]. Sales Pipeline and Growth Factors - Dayforce entered 2025 with a sales pipeline nearly four times its quarterly sales target, indicating strong demand and customer engagement [3]. - January sales growth outpaced revenue growth, suggesting healthy momentum in deal activity and client acquisition [3]. Profitability and Margin Enhancement - The company projects an adjusted EBITDA increase to 32% in the first quarter of 2025, supporting margin enhancement and overall performance [4]. AI and Product Development - Dayforce is enhancing its AI capabilities and regulatory support through tools like Dayforce Co-Pilot, which is expected to boost platform adoption and contribute to revenue growth [5]. Recurring Revenue and Client Retention - The ability to grow recurring revenue per customer by 11% and achieve a gross retention rate of 98% in Q4 2024 indicates strong product value and client confidence [6]. Currency Impact - Unfavorable foreign currency fluctuations, particularly with Canadian dollar-denominated revenues, are expected to reduce 2025 revenues by 200 basis points, impacting top-line growth in Q1 [7].

Core Viewpoint - Dayforce (DAY) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For Dayforce, the rising earnings estimates and the rating upgrade suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][10]. Earnings Estimate Revisions - For the fiscal year ending December 2025, Dayforce is expected to earn $2.30 per share, representing a 16.8% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Dayforce has increased by 6.9%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a 'Strong Buy' or 'Buy' rating, suggesting a strong potential for market-beating returns [9][10]. - Dayforce's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a favorable position for potential price increases in the near term [10].

Revenue Growth and Market Position - Revenue from Cloud solutions has grown substantially, with a significant portion of market capitalization depending on sustaining this growth trajectory [60]. - The company has experienced significant growth in user numbers, transactions, and data transmission volume, necessitating the maintenance of sufficient operational infrastructure capacity [79]. - The company has experienced substantial revenue growth from its Cloud solutions, which is critical for sustaining its market capitalization [60]. - The company is focused on an aggressive growth strategy, which requires significant investments to enhance and scale systems and internal controls [66]. - The company’s growth strategy includes international expansion, which may require additional investment and could expose it to various risks [76]. - The company plans to expand its operations into new international markets, which may increase costs and regulatory compliance risks [73]. Risks and Challenges - The company faces risks related to disruptions in payroll-related transactions, which could lead to significant losses and reputational harm [63]. - The aging software infrastructure and technology may lead to increased costs and vulnerabilities to cyber-attacks, impacting profitability and operational efficiency [65]. - Competitive pressures in the market are intensifying, with larger competitors having greater resources and established customer bases [69]. - The company must effectively manage growth to avoid operational challenges, declines in customer satisfaction, and increased costs [67]. - The company faces significant costs and operational burdens due to evolving privacy and data protection laws as it expands into new markets [109]. - The company faces risks related to the performance of its applications, with potential material defects or errors that could harm its reputation and financial results [77]. - The company is at risk of significant losses if customers fail to repay advanced funds related to payroll services, which could adversely affect financial stability [88]. - The company faces challenges in attracting and retaining skilled employees, which could impact its operational quality and financial performance [85]. Cybersecurity and Compliance - Cybersecurity risks pose a threat to the integrity and availability of the company's IT systems, potentially leading to financial loss and regulatory issues [95]. - The company operates under a shared responsibility model for data security, which may expose it to cybersecurity risks if customers do not implement sufficient security controls [97]. - The company has acquired firms with cybersecurity vulnerabilities, increasing operational and financial risks, requiring significant resources for mitigation [98]. - The company relies heavily on third-party suppliers for IT systems, making it vulnerable to cyberattacks that could materially impact operations and financial results [103]. - The company is subject to a 20-year consent order with the U.S. Federal Trade Commission due to past security breaches, which requires ongoing compliance efforts [100]. - Regulatory investigations and enforcement actions related to data security incidents are on the rise, potentially leading to significant costs and reputational damage [113]. - The evolving landscape of privacy legislation may impose operational burdens and increase costs for the company [113]. - The company must continuously monitor and update its solutions to comply with applicable laws, which requires substantial investment of time and resources [114]. Financial Management and Debt - The company has authorized a share repurchase program of up to $500 million for its common stock, which may increase stock price volatility and affect liquidity [138]. - The company has never declared or paid cash dividends and intends to retain future earnings for business operations and expansion [141]. - The company’s outstanding indebtedness may limit its operational flexibility and ability to generate sufficient cash flows to meet debt service obligations [126]. - A downgrade in the company's debt ratings could negatively impact its access to capital markets and increase borrowing costs [129]. - The company may face challenges in repurchasing Convertible Senior Notes if required, which could lead to defaults under its debt agreements [128]. - The company is exposed to credit risk from option counterparties related to its Convertible Senior Notes, which could affect stock value [132]. Legal and Regulatory Risks - The company faces risks from litigation and regulatory investigations that could result in significant financial losses and harm to its reputation, particularly related to wage compliance and data privacy claims [119]. - The company is subject to audits and tax proceedings in multiple jurisdictions, which could materially affect its financial condition [158]. - The company is subject to evolving legal frameworks around AI, which could adversely affect its business and financial condition if compliance is not maintained [123]. - The company has signed the Ottawa Statement on Generative AI and the Government of Canada's AI Code of Conduct, indicating its commitment to responsible AI development [124]. - The implementation of compliance programs for anti-corruption and anti-money laundering laws is costly and may impact sales processes [118]. Operational Efficiency and Customer Satisfaction - High-quality support services are essential for customer retention, and any failure in this area could result in lost recurring revenue and damage to the company's reputation [82]. - Customer dissatisfaction with implementation services could lead to revenue loss and negative publicity, impacting future business opportunities [83]. - The company must manage its technical operations infrastructure effectively to avoid service outages and delays for customers, which could have a material adverse effect on its operations [79]. - The company relies on third-party service providers for critical operations, and any disruption or decline in service quality from these partners could adversely affect business performance [80]. - The company identified a material weakness in internal controls over financial reporting as of December 31, 2023, which was remediated by December 31, 2024 [148].

I give a buy rating for Dayforce (NYSE: DAY ) as its accelerating enterprise expansion and AI innovations position it well to continue growing. So long as DAY can continue its current pace of execution, I think it canI am an individual investor that is now fully focus on managing my own capital that I have saved up over the years. My investing background spreads across a wide spectrum as I believe there are merits to each approach, for instance: Fundamental investing [Bottoms-up etc.], Technical investing [ ...

Group 1 - The core theme during the Q4 earnings season is that investors are expecting high performance from stocks to justify their elevated valuations, with any indication of a weaker-than-expected outlook for 2025 leading to significant declines [1] Group 2 - Gary Alexander has extensive experience in covering technology companies and has been involved with several seed-round startups, contributing to discussions on industry trends since 2017 [2]

Dayforce (DAY) reported fourth-quarter 2024 earnings of 60 cents per share, which beat the Zacks Consensus Estimate by 30.43% and rose 20% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues of $465.2 million beat the Zacks Consensus Estimate by 2.19% and increased 16.4% on a constant currency basis.DAY raised its first-quarter 2025 guidance following the robust fourth-quarter performance, which bodes well for investors. DAY shares have appreciated 36.7% over the t ...

Dayforce (DAY) reported $465.2 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 16.4%. EPS of $0.60 for the same period compares to $0.50 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $455.21 million, representing a surprise of +2.19%. The company delivered an EPS surprise of +30.43%, with the consensus EPS estimate being $0.46.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Dayforce (DAY) came out with quarterly earnings of $0.60 per share, beating the Zacks Consensus Estimate of $0.46 per share. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 30.43%. A quarter ago, it was expected that this provider of human-resources software and services would post earnings of $0.45 per share when it actually produced earnings of $0.47, delivering a surprise of 4.44%.Over the ...

Revenue Performance - Dayforce recurring revenue for Q4 2024 reached $347.9 million, a 19% increase year-over-year[1] - Total revenue for Q4 2024 was $465.2 million, up 16% year-over-year, or 17% on a constant currency basis[4] - Total revenue for the year ended December 31, 2024, was $1,760.0 million, representing a 16.3% increase from $1,513.7 million in 2023[39] - Dayforce recurring revenue, excluding float, increased by 20.4% to $1,159.7 million in 2024 from $962.9 million in 2023[39] - Total recurring revenue for the year ended December 31, 2024, was $1,517.3 million, a 17.0% increase from $1,297.3 million in 2023[39] - Professional services and other revenue for the year ended December 31, 2024, was $242.7 million, up from $216.4 million in 2023, reflecting a 12.2% increase[41] Financial Metrics - Adjusted EBITDA for Q4 2024 was $129.2 million, with an adjusted EBITDA margin of 27.8%, up 3 percentage points year-over-year[4] - Adjusted EBITDA margin is anticipated to be between 31% and 32%[22] - The EBITDA for Q4 2024 was $66.6 million, reflecting a margin of 27.8%[46] - The EBITDA for the year ended December 31, 2024, was $288.0 million, with a margin of 28.5%[53] - Free cash flow margin is reported at 12%[22] - The net income for the year 2024 was $18.1 million, resulting in a net profit margin of 1.0%[53] Cash Flow and Operating Activities - Full year 2024 net cash provided by operating activities was $281.1 million, an increase of 28% compared to the previous year[4] - For Q4 2024, Dayforce reported net cash provided by operating activities of $81.0 million, a decrease of 9.8% from $89.9 million in Q4 2023[59] - Free cash flow for Q4 2024 was $54.2 million, down 15.0% from $63.8 million in Q4 2023, with a free cash flow margin of 11.7% compared to 16.0% in the previous year[59] - For the year ended December 31, 2024, Dayforce's free cash flow was $171.5 million, an increase of 63.0% from $105.1 million in 2023[59] - Dayforce projects free cash flow for the year ending December 31, 2025, to be between $229 million and $234 million[59] Assets and Liabilities - The company has a total of $9,117 million in assets as of December 31, 2024, compared to $9,010.9 million in 2023[29] - Total liabilities amount to $6,570.7 million, a slight decrease from $6,612.7 million in the previous year[29] - The company’s goodwill increased to $2,336.7 million from $2,293.9 million year-over-year[29] Strategic Initiatives and Market Position - The company launched its first mass advertising campaign across the U.S. and introduced the Dayforce Partner Network[13] - Dayforce achieved a record attendance at its annual customer conference, Dayforce Discover 2024, in Las Vegas[13] - The forward-looking statements indicate expectations for continued growth initiatives and market expansion, with potential risks outlined[24][26] Adjustments and Non-GAAP Measures - The adjustments to net income for Q4 2024 included a $17.1 million foreign exchange loss and $3.2 million related to the termination of a frozen U.S. pension plan[47] - The adjustments to operating profit for the year 2024 included $19.8 million of restructuring expenses and $9.0 million related to fair value adjustments[53] - Dayforce utilizes non-GAAP financial measures such as Adjusted EBITDA and Free Cash Flow to assess operational performance and liquidity[61] - The company emphasizes the importance of free cash flow as a measure of liquidity for strategic opportunities[61] - Dayforce's Cloud annualized retention rate and recurring revenue per customer are important metrics but lack directly comparable GAAP measures[63]