Exhibit 99.1 Dayforce Reports Third Quarter 2024 Results 1 Dayforce® recurring revenue of $333.2 million, up 19% Total revenue of $440.0 million, up 17% Year-to-date net cash provided by operating activities of $200.1 million, up 54% Minneapolis, MN and Toronto, ON, October 30, 2024 - Dayforce, Inc. ("Dayforce" or the "Company") (NYSE:DAY) (TSX:DAY), a global leader in human capital management ("HCM") technology, today announced its financial results for the third quarter ended September 30, 2024. "Our dedi ...

MINNEAPOLIS and TORONTO, Oct. 21, 2024 (GLOBE NEWSWIRE) -- Dayforce, Inc. (NYSE: DAY; TSX: DAY), a global human capital management (HCM) leader that makes work life better, today announced the launch of its mass brand advertising campaign, ‘Do the work you’re meant to do.’ Brought to life through television and out-of-home (OOH) displays across the U.S., the campaign encourages viewers to harness simplicity at scale in their HR operations to achieve greater purpose and meaning within their work lives. Dayf ...

MINNEAPOLIS, Minn. and TORONTO, Oct. 10, 2024 (GLOBE NEWSWIRE) -- Dayforce, Inc. (NYSE: DAY; TSX: DAY), a global human capital management (HCM) leader that makes work life better, will host customers, partners, and industry visionaries for the new Dayforce Discover annual customer conference, to be held on November 11-14 at the Wynn Las Vegas. Registration is open for the in-person experience as well as the live stream of the conference's mainstage keynotes. Centered around the company's brand promise to ma ...

MINNEAPOLIS and TORONTO, Oct. 09, 2024 (GLOBE NEWSWIRE) -- Dayforce, Inc. (NYSE:DAY) (TSX:DAY), a global human capital management (HCM) leader that makes work life better, today announced the date for the release of its third quarter 2024 earnings and its participation in upcoming investor conferences. Third Quarter 2024 Earnings Date Dayforce will release third quarter 2024 financial results before the open of regular market trading on Wednesday, October 30, 2024. The company will host a live webcast and c ...

Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q ("Form 10-Q") contains, or incorporates by reference, not only historical information, but also forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended ("Exchange Act") and that are subject to the safe harbor created by those sections. Forward-looking statements include, ...

[Q2 2024 Earnings Summary](index=1&type=section&id=Q2_2024_Earnings_Summary) Dayforce reported strong Q2 2024 results, with revenue growth, improved adjusted profitability, and strategic advancements [Financial Highlights](index=1&type=section&id=Financial_Highlights) Dayforce reported strong financial results for the second quarter of 2024, with total revenue increasing 15.7% to $423.3 million and Dayforce recurring revenue growing 19.9% to $321.6 million Q2 2024 Key Financial Metrics (YoY) | Metric | Q2 2024 | Q2 2023 | Change | Constant Currency Change | | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $423.3M | $365.9M | +15.7% | +16.3% | | **Dayforce Recurring Revenue** | $321.6M | $268.2M | +19.9% | +20.4% | | **Operating Profit** | $14.1M | $29.4M | -52.0% | N/A | | **Adjusted Operating Profit** | $94.9M | $83.0M | +14.3% | N/A | | **Net (Loss) / Income** | ($1.8M) | $3.1M | - | N/A | | **Adjusted Net Income** | $76.2M | $50.8M | +50.0% | N/A | | **Diluted EPS** | ($0.01) | $0.02 | - | N/A | | **Adjusted Diluted EPS** | $0.48 | $0.32 | +50.0% | N/A | | **Adjusted EBITDA** | $116.3M | $98.4M | +18.2% | N/A | - The number of customers live on the Dayforce platform grew by **6.1%** year-over-year, reaching **6,657** as of June 30, 2024[34](index=34&type=chunk) - For the six months ended June 30, 2024, net cash from operating activities increased **16%** to **$108.3 million**, and free cash flow grew to **$53.9 million** from **$36.5 million** in the prior year period[5](index=5&type=chunk)[7](index=7&type=chunk) - Dayforce recurring revenue per customer for the trailing twelve months increased by **17.7%** to **$154,998**[8](index=8&type=chunk) [Management Commentary and Corporate Actions](index=1&type=section&id=Management_Commentary_and_Corporate_Actions) Management highlighted continued business momentum, attributing success to the simplicity and efficiency of the Dayforce platform - CEO David Ossip credited the company's success to the simplicity and efficiency benefits that customers realize from the Dayforce platform[30](index=30&type=chunk) - CFO Jeremy Johnson announced a Board-approved **$500 million** share repurchase program, citing strong results and improved cash flow generation[5](index=5&type=chunk) - The company will host its first Investor Day on November 12, 2024, in Las Vegas to present its vision, strategy, and multi-year financial model[5](index=5&type=chunk) [Business, Product, and Customer Highlights](index=2&type=section&id=Business_Product_and_Customer_Highlights) Dayforce received multiple industry recognitions for value realization and sustainability, and significantly expanded its global advisory partner ecosystem - Dayforce received accolades from The Hackett Group, was named a Leader in the PEAK Matrix® Assessment 2024 for People Analytics, and ranked 1 on USA TODAY's list of America's Climate Leaders 2024[10](index=10&type=chunk) - The company expanded its global advisory partner ecosystem by adding **11** new partners[10](index=10&type=chunk) - Notable new customer wins include the Government of Canada (expanding usage), a global agribusiness company with over **20,000** employees, and a UK-based hospitality brand with over **20,000** employees[11](index=11&type=chunk) - Dayforce Wallet achieved a milestone, delivering over **$4 billion** in on-demand payroll to users, with over **1,270** customers live on the platform as of June 30, 2024[16](index=16&type=chunk) - Product enhancements were released for Dayforce Co-Pilot (AI), Talent acquisition experiences, and compliance, with over **200** compliance updates in the first half of 2024[41](index=41&type=chunk) [Business Outlook](index=4&type=section&id=Business_Outlook) Dayforce provides financial guidance for Q3 and full year 2024, detailing expected revenue and adjusted EBITDA [Q3 and Full Year 2024 Guidance](index=4&type=section&id=Q3_and_Full_Year_2024_Guidance) Dayforce provided its financial outlook for the third quarter and full year of 2024 Financial Guidance for Q3 and Full Year 2024 | Guided Metrics | Third Quarter 2024 | Full Year 2024 | | :--- | :--- | :--- | | **Total Revenue** | $425M - $430M (+13% to 14%) | $1,736M - $1,746M (+15% to 15.5%) | | **Dayforce Recurring Revenue (ex-float)** | $289M - $294M (+18% to 20%) | $1,163M - $1,168M (+21% to 21.5%) | | **Float Revenue** | $40M | $187M | | **Adjusted EBITDA** | $115M - $125M | $490M - $505M | - The guidance for Q3 and Q4 2024 assumes an average USD to CAD foreign exchange rate of **$1.38**[19](index=19&type=chunk) [Consolidated Financial Statements (Unaudited)](index=7&type=section&id=Consolidated_Financial_Statements) This section presents Dayforce's unaudited consolidated financial statements, detailing operations, balance sheets, and cash flows [Condensed Consolidated Statements of Operations](index=8&type=section&id=Condensed_Consolidated_Statements_of_Operations) The statement of operations shows a 15.7% increase in total revenue to $423.3 million for Q2 2024, resulting in a net loss of $1.8 million Q2 2024 Statement of Operations Highlights (in millions) | Line Item | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | **Total Revenue** | $423.3 | $365.9 | | **Gross Profit** | $186.8 | $155.9 | | **Operating Profit** | $14.1 | $29.4 | | **Net (Loss) Income** | $(1.8) | $3.1 | [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed_Consolidated_Balance_Sheets) As of June 30, 2024, Dayforce's balance sheet shows total assets of $9.05 billion and total liabilities of $6.57 billion Balance Sheet Summary (in millions) | Account | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $5,836.6 | $5,955.2 | | **Total Assets** | $9,046.1 | $9,010.9 | | **Total Current Liabilities** | $5,280.3 | $5,334.9 | | **Total Liabilities** | $6,570.3 | $6,612.7 | | **Total Stockholders' Equity** | $2,475.8 | $2,398.2 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed_Consolidated_Statements_of_Cash_Flows) For the six months ended June 30, 2024, net cash provided by operating activities was $108.3 million, with significant net cash used in investing activities Six Months Ended June 30 Cash Flow Summary (in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $108.3 | $93.0 | | **Net cash (used in) provided by investing activities** | $(383.5) | $14.9 | | **Net cash provided by financing activities** | $7.7 | $119.5 | | **Net (decrease) increase in cash** | $(289.2) | $290.5 | [Supplemental Financial Information and Non-GAAP Reconciliation](index=12&type=section&id=Supplemental_Financial_Information_and_Non-GAAP_Reconciliation) This section details revenue analysis, GAAP to non-GAAP reconciliations, and definitions of key non-GAAP metrics [Revenue Analysis](index=12&type=section&id=Revenue_Analysis) This section provides a detailed breakdown of revenue by source for Q2 and the first six months of 2024 Q2 2024 Revenue Breakdown (in millions) | Revenue Stream | Q2 2024 | Q2 2023 | Growth (GAAP) | Growth (Constant Currency) | | :--- | :--- | :--- | :--- | :--- | | **Dayforce recurring, ex-float** | $277.7 | $231.3 | 20.1% | 20.5% | | **Dayforce float** | $43.9 | $36.9 | 19.0% | 19.5% | | **Total Dayforce recurring** | $321.6 | $268.2 | 19.9% | 20.4% | | **Total Cloud recurring** | $346.2 | $292.3 | 18.4% | 19.0% | | **Professional services & other** | $58.3 | $51.0 | 14.3% | 14.5% | | **Total Revenue** | $423.3 | $365.9 | 15.7% | 16.3% | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=15&type=section&id=Reconciliation_of_GAAP_to_Non-GAAP_Financial_Measures) Dayforce provides reconciliations of its GAAP results to non-GAAP measures to exclude specific items Q2 2024 GAAP to Non-GAAP Reconciliation Highlights (in millions) | Metric | GAAP | Adjustments | Non-GAAP (Adjusted) | | :--- | :--- | :--- | :--- | | **Operating Profit** | $14.1 | +$80.8 | $94.9 | | **Net (Loss) Income** | $(1.8) | +$78.0 | $76.2 | | **EBITDA** | $61.7 | +$54.6 | $116.3 (Adjusted EBITDA) | - Key adjustments for Q2 2024 included **$40.8 million** in share-based compensation, **$29.5 million** in amortization of intangibles, and **$10.5 million** in restructuring expenses[64](index=64&type=chunk) [Reconciliation of Free Cash Flow](index=19&type=section&id=Reconciliation_of_Free_Cash_Flow) Free cash flow, a non-GAAP measure of liquidity, is calculated by subtracting capital expenditures from net cash provided by operating activities Free Cash Flow Calculation (in millions) | Line Item | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $108.3 | $93.0 | | **Expenditures for property, plant, and equipment** | $(6.7) | $(10.1) | | **Expenditures for software and technology** | $(47.7) | $(46.4) | | **Free cash flow** | $53.9 | $36.5 | [Definitions of Non-GAAP Financial Measures](index=20&type=section&id=Definitions_of_Non-GAAP_Financial_Measures) This section defines the non-GAAP financial measures used throughout the earnings release - **Adjusted EBITDA** is defined as net income before interest, taxes, depreciation, and amortization, adjusted to exclude share-based compensation and other certain items[89](index=89&type=chunk) - **Adjusted Net Income** excludes items such as share-based compensation and amortization of acquisition-related intangible assets, adjusted for the effect of income taxes[89](index=89&type=chunk) - **Free Cash Flow** is defined as net cash provided by operating activities less capital expenditures for property, plant, equipment, software, and technology[89](index=89&type=chunk)[95](index=95&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly reporting period ended March 31, 2024 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 001-38467 Dayforce, Inc. (Exact name of registrant as specified in its charter) Delaware 46-3231686 (State or Other Jurisdiction of Inco ...

Dayforce Platform Performance - Dayforce platform had 6,575 live customers as of March 31, 2024, a 6.4% year-over-year increase from March 31, 2023[1] - Dayforce recurring revenue reached $337.2 million, up 24.3% year-over-year, with $282.4 million excluding float revenue, up 23.0%[13] - Dayforce recurring revenue per customer was $150,362 for the trailing twelve months ended March 31, 2024, a 19.2% increase[15] - Dayforce Wallet had over 1,960 customers signed on, with more than 1,200 live customers as of March 31, 2024, and an average registration rate above 65%[18] - Dayforce Co-Pilot, an AI-enhanced feature, was introduced to boost recruiter productivity and improve employee access to company FAQs[6] - Dayforce completed 160+ global compliance updates to enhance year-end requirements, reporting functionalities, and tax rates[6] - Dayforce recurring revenue increased by 24.3% to $337.2 million, with Dayforce float revenue growing by 31.7% to $54.8 million[43] - The average float balance for Dayforce's customer funds during the quarter was $5.56 billion, with an average yield of 4.4%, generating $60.7 million in float revenue[61] Financial Performance - Operating profit was $40.7 million, or 9.4% of total revenue, compared to $38.4 million, or 10.4% of total revenue in the previous year[14] - Total revenue increased by 16.4% to $431.5 million, with recurring revenue contributing $382.7 million[43] - Total revenue for Q1 2024 was $431.5 million, a 16.4% increase year-over-year, or 16.5% on a constant currency basis[59] - Total revenue of $431.5 million, up 16.4%[91] - Net income decreased to $7.1 million in Q1 2024 from $9.9 million in Q1 2023, reflecting higher operating expenses[39] - Net income was $7.1 million, compared to $9.9 million[93] - Adjusted net income was $68.0 million, compared to $49.3 million[93] - Adjusted diluted net income per share was $0.31, compared to $0.06 on a GAAP basis[46] - Adjusted diluted net income per share was $0.43, compared to $0.31 in the previous year[57] Cash Flow and Investments - Cash flows from operating activities were $9.1 million, down from $11.3 million in the prior year period[39] - Net cash provided by operating activities was $9.1 million, compared to $11.3 million in the previous year[60] - Net cash used in investing activities was $290.7 million, primarily due to acquisitions and marketable securities purchases[39] - Dayforce's cash, restricted cash, and equivalents stood at $4,899.2 million at the end of Q1 2024, compared to $5,341.4 million in Q1 2023[39] Guidance and Projections - Dayforce issued Q2 2024 guidance with total revenue expected to be $414 million to $419 million, a 13% to 15% increase year-over-year[20] - Full-year 2024 guidance projects total revenue of $1,730 million to $1,740 million, a 14% to 15% increase year-over-year[20] Adjusted Metrics and Margins - Adjusted EBITDA for Q1 2024 was $105.4 million, representing a 28.4% margin[46] - Adjusted EBITDA for Q1 2024 was $129.9 million, representing a 30.1% margin[77] - Adjusted EBITDA was $129.9 million, compared to $105.4 million[90] - Cloud recurring gross margin was 79.0%, compared to 77.3%[92] - Adjusted cloud recurring gross margin was 80.0%, compared to 78.7%[92] - Operating profit of $40.7 million[90] - Adjusted operating profit of $109.1 million[90] Total Assets and Revenue Growth - Total assets increased to $10,775.2 million as of March 31, 2024, compared to $9,010.9 million as of December 31, 2023[11] - Total Cloud recurring revenue grew by 23.0% to $363.2 million, driven by strong performance in Dayforce and Powerpay segments[43] - Cloud recurring revenue was $382.7 million, up from $317.9 million in the previous year[81] Share-Based Compensation - Share-based compensation expense was $38.0 million, slightly lower than the $40.2 million recorded in Q1 2023[39] Corporate Developments - The company acquired eloomi A/S, a learning experience platform software provider[75] - Dayforce changed its legal name and brand from Ceridian HCM Holding Inc. to Dayforce, Inc., and its ticker symbol to "DAY"[75] - The company released its 2024 ESG Report, detailing its sustainability strategy across five pillars[75]

PART I [Item 1. Business](index=4&type=section&id=Item%201.%20Business) Dayforce, Inc. is a global HCM software company offering a full suite of functionalities through its flagship Dayforce platform and Powerpay for Canadian small businesses, focusing on strategic growth levers and customer success - Dayforce, Inc. (formerly Ceridian HCM Holding Inc.) is a global HCM software company, with its flagship **Dayforce platform** providing comprehensive HR, payroll, tax, workforce management, benefits, and talent intelligence functionalities, while **Powerpay** serves the Canadian small business market[134](index=134&type=chunk)[97](index=97&type=chunk) - The company's long-term strategy is driven by **five growth levers**: new customer acquisition, Dayforce platform extension, enterprise segment expansion, accelerated global growth, and innovation in adjacent HCM markets (e.g., Dayforce Wallet)[134](index=134&type=chunk) - Dayforce Wallet, a digital payment solution, provides employees instant access to net earnings, generating interchange fee revenue, and as of December 31, 2023, it had over **1,860 signed customers**, **1,150 live customers**, and an average registration rate above **60% of eligible employees**[16](index=16&type=chunk) - Customer base for the Dayforce platform grew from **482 in 2012** to **6,393 as of December 31, 2023**, representing approximately **6.84 million global employees**, with no single customer accounting for more than **2% of 2023 revenues**[20](index=20&type=chunk) - Technology and innovation are core to Dayforce, Inc., with a customer-driven R&D process utilizing a modern Cloud technology stack and agile methodologies, and Cloud-based applications are primarily hosted by third-party providers like Microsoft Azure and AWS[22](index=22&type=chunk) - The company's ESG approach is guided by **five pillars**: Governance and Trust, Our People, Tech for Good, Our Communities, and the Environment[189](index=189&type=chunk) [Products and Solutions](index=4&type=section&id=Products%20and%20Solutions) [Services and Support](index=6&type=section&id=Services%20and%20Support) [Customers](index=6&type=section&id=Customers) [Selling and Marketing](index=6&type=section&id=Selling%20and%20Marketing) [Technology, Hosting, and Research and Development ("R&D")](index=7&type=section&id=Technology%2C%20Hosting%2C%20and%20Research%20and%20Development%20%28%22R%26D%22%29) [Dayforce National Trust Bank](index=7&type=section&id=Dayforce%20National%20Trust%20Bank) [Intellectual Property](index=7&type=section&id=Intellectual%20Property) [Competition](index=7&type=section&id=Competition) [Seasonality](index=7&type=section&id=Seasonality) [Environmental, Social, and Governance ("ESG") and Human Capital](index=7&type=section&id=Environmental%2C%20Social%2C%20and%20Governance%20%28%22ESG%22%29%20and%20Human%20Capital) [Available Information](index=10&type=section&id=Available%20Information) [Information about Our Executive Officers](index=10&type=section&id=Information%20about%20Our%20Executive%20Officers) [Item 1A. Risk Factors](index=11&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including challenges in maintaining Cloud solutions growth, disruptions in payroll fund movement, vulnerabilities from aging software infrastructure and cyber-attacks, and compliance with evolving data privacy regulations, alongside operational and financial risks from rapid growth and international expansion - Maintaining high Cloud solutions growth is critical, and failure to expand into new markets, penetrate existing ones, or successfully introduce new features (including AI/machine learning) could adversely affect revenue growth and market capitalization[56](index=56&type=chunk) - Disruptions in payroll fund movement, especially due to reliance on third-party vendors and complex regulations, could lead to significant losses and reputational harm[56](index=56&type=chunk) - Aging software infrastructure and migration to new platforms increase costs and vulnerability to cyber-attacks or operational disruptions, while information security breaches, non-compliance with FTC consent orders, or system disruptions could severely impact business and reputation[57](index=57&type=chunk) - Failure to comply with increasing privacy, data protection, and information security laws (e.g., GDPR, CCPA, CPRA) could result in significant costs, penalties, legal liability, and reputational damage, potentially restricting data-driven insights from AI[58](index=58&type=chunk) - The company's aggressive growth strategy, including international expansion and acquisitions, strains management and infrastructure, risking service quality, profitability, and compliance with local laws[58](index=58&type=chunk)[60](index=60&type=chunk) - The company identified a material weakness in its internal control over financial reporting related to ineffective general information technology controls (GITCs) over Canadian trust and Powerpay revenue processes[89](index=89&type=chunk) [Risks Related to Our Business and Industry](index=12&type=section&id=Risks%20Related%20to%20Our%20Business%20and%20Industry) [Risks Related to Our Indebtedness](index=26&type=section&id=Risks%20Related%20to%20Our%20Indebtedness) [Risks Related to Ownership of Our Common Stock](index=29&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Common%20Stock) [General Risk Factors](index=30&type=section&id=General%20Risk%20Factors) [Item 1B. Unresolved Staff Comments](index=33&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reported no unresolved staff comments from the SEC - No unresolved staff comments were reported[101](index=101&type=chunk) [Item 1C. Cybersecurity](index=33&type=section&id=Item%201C.%20Cybersecurity) Dayforce, Inc. maintains a comprehensive information security program overseen by its Audit Committee and CISO, aligning with global standards and focusing on risk-aware workforce, product security, detection/response, and data governance, while acknowledging inherent risks and having a documented incident materiality assessment program - The company's cybersecurity program is overseen by the Audit Committee and CISO, aligning with COSO, ISO 31000, ISO 27001, NIST 800-171, and AICPA (SSAE18) standards[92](index=92&type=chunk)[103](index=103&type=chunk) - Key focus areas for the information security program include global standards and operations, a risk-aware workforce, product security, detection and response, and data governance management[80](index=80&type=chunk) - The CISO, with over 25 years of experience, provides quarterly updates to the Audit Committee on the cybersecurity program and notable incidents, and Board members and senior executives participate in annual tabletop exercises[114](index=114&type=chunk) - A documented cybersecurity incident materiality assessment and disclosure program is jointly managed by Incident Response, Cybersecurity, and Corporate Legal teams to ensure timely escalation and disclosure decisions[114](index=114&type=chunk) [Item 2. Properties](index=34&type=section&id=Item%202.%20Properties) Dayforce, Inc.'s corporate headquarters are in Minneapolis, Minnesota, with a major office in Toronto, Ontario, Canada, both leased, and the company leases additional office space globally, believing current facilities are adequate and additional space can be obtained as needed - Corporate headquarters are in Minneapolis, Minnesota, and a major office in Toronto, Ontario, Canada, both in leased facilities[115](index=115&type=chunk) - The company leases additional office space across North America, APJ, and EMEA, and believes current facilities meet needs with confidence in obtaining future space on reasonable terms[115](index=115&type=chunk) [Item 3. Legal Proceedings](index=34&type=section&id=Item%203.%20Legal%20Proceedings) Dayforce, Inc. is involved in routine legal proceedings but is not currently a party to any that would materially adversely affect its business, financial condition, or liquidity, with further discussions incorporated by reference from Note 15 to the consolidated financial statements - The company is not currently a party to any legal proceedings that, if determined adversely, would individually or collectively have a material adverse effect on its business, financial condition, or liquidity[116](index=116&type=chunk) - Legal matters are further discussed in Part II, Item 8, Note 15, 'Commitments and Contingencies' of the Form 10-K[116](index=116&type=chunk) [Item 4. Mine Safety Disclosures](index=34&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Dayforce, Inc - Not applicable[117](index=117&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=35&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Dayforce, Inc.'s common stock trades on the NYSE and TSX under the symbol 'DAY', and the company does not intend to pay cash dividends in the foreseeable future, preferring to reinvest earnings, with 54 stockholders of record as of December 31, 2023 - Common stock began trading under the symbol **'DAY'** on February 1, 2024, replacing 'CDAY'[119](index=119&type=chunk) - The company does not intend to pay cash dividends on its common stock in the foreseeable future, planning to retain future earnings for business operations and expansion[89](index=89&type=chunk)[105](index=105&type=chunk) - As of December 31, 2023, there were **54 stockholders of record**, with the actual number of stockholders being considerably greater due to beneficial ownership[106](index=106&type=chunk) [Item 6. Reserved](index=36&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information - Item 6 is reserved[111](index=111&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Dayforce, Inc. is a global HCM software company focused on its Dayforce Cloud platform and Powerpay, with a business model prioritizing Dayforce growth and customer lifetime value, assessing performance using metrics like live Dayforce customers, Cloud ARR, revenue retention, and recurring revenue per customer, achieving total revenue of **$1,513.7 million** and net income of **$54.8 million** in 2023 - Dayforce, Inc. (formerly Ceridian HCM Holding Inc.) is a global HCM software company, with its flagship Dayforce Cloud HCM platform and Powerpay for Canadian small businesses[97](index=97&type=chunk) - The business model focuses on rapid growth of Dayforce and maximizing customer lifetime value, with high visibility into future revenues due to its subscription model and high customer retention rates[98](index=98&type=chunk) - Key performance indicators include live Dayforce customers, Cloud Annualized Recurring Revenue (ARR), Annual Dayforce revenue retention rate, and Dayforce recurring revenue per customer[543](index=543&type=chunk) Key Performance Measures (2023 vs. 2022) | Indicator | 2023 | 2022 | | :------------------------------------------ | :---------- | :---------- | | Live Dayforce customers | 6,393 | 5,993 | | Cloud Annualized Recurring Revenue (ARR) | $1,250.6 M | $1,041.3 M | | Annual Dayforce revenue retention rate | 97.1 % | 97.1 % | | Dayforce recurring revenue per customer | $146,771 | $121,425 | | Adjusted EBITDA | $410.2 M | $250.4 M | | Adjusted EBITDA margin | 27.1 % | 20.1 % | Consolidated Revenue (2023 vs. 2022) | Revenue Category | 2023 ($M) | 2022 ($M) | Increase ($M) | % Change | 2023 % of Total | 2022 % of Total | | :---------------------------- | :-------- | :-------- | :------------ | :------- | :-------------- | :-------------- | | Cloud Recurring | 1,211.4 | 908.4 | 303.0 | 33.4% | 80.0% | 72.9% | | Other Recurring | 85.9 | 139.2 | (53.3) | (38.3)% | 5.7% | 11.2% | | **Total Recurring** | **1,297.3** | **1,047.6** | **249.7** | **23.8%** | **85.7%** | **84.1%** | | Professional services & other | 216.4 | 198.6 | 17.8 | 9.0% | 14.3% | 15.9% | | **Total Revenue** | **1,513.7** | **1,246.2** | **267.5** | **21.5%** | **100.0%** | **100.0%** | Net Income (Loss) (2023 vs. 2022) | Metric | 2023 ($M) | 2022 ($M) | Change ($M) | % Change | | :---------------- | :-------- | :-------- | :---------- | :------- | | Net income (loss) | 54.8 | (73.4) | 128.2 | 174.7% | [Overview](index=37&type=section&id=Overview) [Our Business Model](index=37&type=section&id=Our%20Business%20Model) [How We Assess Our Performance](index=38&type=section&id=How%20We%20Assess%20Our%20Performance) [Recent Events](index=40&type=section&id=Recent%20Events) [Results of Operations](index=41&type=section&id=Results%20of%20Operations) [Liquidity and Capital Resources](index=46&type=section&id=Liquidity%20and%20Capital%20Resources) [Critical Accounting Policies and Estimates](index=49&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) [Non-GAAP Financial Measures](index=50&type=section&id=Non-GAAP%20Financial%20Measures) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Dayforce, Inc. is exposed to market risks from foreign currency exchange rates, interest rates, and pension obligations, with interest rate changes significantly impacting float revenue and debt interest, and pension obligations sensitive to actuarial assumptions - The company is exposed to market risks related to foreign currency exchange rates, interest rates, and pension obligations[274](index=274&type=chunk) - Foreign currency risk is partially hedged by foreign currency denominated inflows, and a hypothetical **10% change** is not expected to materially affect operations, with the company monitoring this for future hedging programs[274](index=274&type=chunk) - Interest rate risk affects float revenue, debt interest, and interest income on cash, where a **100 basis point decrease** in market investment rates would decrease float revenue by approximately **$25 million**, while a **100 basis point decrease** in reference rates would decrease interest expense by approximately **$6 million**[274](index=274&type=chunk) Estimated Sensitivity to Changes in Actuarial Assumptions (2024 Pension Benefits) | Assumption Change | Impact on 2024 Pension Benefits (Increase/(Decrease) in millions) | | :--------------------------------- | :---------------------------------------------------------------- | | Increase in discount rate (50 bps) | $0.1 | | Decrease in discount rate (50 bps) | $(0.1) | | Increase in return on plan asset (50 bps) | $(1.8) | | Decrease in return on plan asset (50 bps) | $1.8 | [Item 8. Financial Statements and Supplementary Data](index=57&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents Dayforce, Inc.'s audited consolidated financial statements for 2023, 2022, and 2021, including balance sheets, statements of operations, comprehensive income (loss), stockholders' equity, and cash flows, with an unqualified opinion on financial statements but an adverse opinion on internal control over financial reporting due to a material weakness in IT controls - KPMG LLP issued an unqualified opinion on the consolidated financial statements for the three-year period ended December 31, 2023[296](index=296&type=chunk) - KPMG LLP issued an adverse opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2023, due to a material weakness related to ineffective general information technology controls (GITCs) over Canadian trust and Powerpay revenue processes[300](index=300&type=chunk) Consolidated Balance Sheet Highlights (as of December 31) | Metric | 2023 ($M) | 2022 ($M) | | :--------------------------- | :-------- | :-------- | | Total Assets | 9,010.9 | 8,463.5 | | Total Liabilities | 6,612.7 | 6,354.1 | | Total Stockholders' Equity | 2,398.2 | 2,109.4 | | Cash and Equivalents | 570.3 | 431.9 | | Customer Funds | 5,028.6 | 4,729.5 | | Customer Funds Obligations | 5,090.1 | 4,845.1 | | Long-term Debt (net) | 1,210.1 | 1,213.4 | Consolidated Statements of Operations Highlights (Year Ended December 31) | Metric | 2023 ($M) | 2022 ($M) | 2021 ($M) | | :------------------------------ | :-------- | :-------- | :-------- | | Total Revenue | 1,513.7 | 1,246.2 | 1,024.2 | | Gross Profit | 646.5 | 473.2 | 382.3 | | Operating Profit (Loss) | 133.1 | (25.8) | (35.5) | | Net Income (Loss) | 54.8 | (73.4) | (75.4) | | Basic Net Income (Loss) per Share | 0.35 | (0.48) | (0.50) | | Diluted Net Income (Loss) per Share | 0.35 | (0.48) | (0.50) | Consolidated Statements of Cash Flows Highlights (Year Ended December 31) | Metric | 2023 ($M) | 2022 ($M) | 2021 ($M) | | :-------------------------------------------- | :-------- | :-------- | :-------- | | Net cash provided by operating activities | 219.5 | 132.6 | 48.8 | | Net cash used in investing activities | (202.8) | (342.5) | (711.1) | | Net cash provided by financing activities | 242.0 | 764.6 | 491.9 | | Net increase in cash, restricted cash, and equivalents | 270.2 | 507.9 | (191.7) | - The company corrected an immaterial prior period error in the presentation of a Canadian bank account balance within 'customer funds' and 'customer funds obligations' and related cash flow items for 2022 and 2021[330](index=330&type=chunk)[333](index=333&type=chunk)[344](index=344&type=chunk) [Report of Independent Registered Public Accounting Firm](index=58&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) [Report of Independent Registered Public Accounting Firm (Opinion on Internal Control Over Financial Reporting)](index=60&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm%20%28Opinion%20on%20Internal%20Control%20Over%20Financial%20Reporting%29) [Consolidated Balance Sheets](index=62&type=section&id=Consolidated%20Balance%20Sheets) [Consolidated Statements of Operations](index=63&type=section&id=Consolidated%20Statements%20of%20Operations) [Consolidated Statements of Comprehensive Income (Loss)](index=64&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) [Consolidated Statements of Stockholders' Equity](index=65&type=section&id=Consolidated%20Statements%20of%20Stockholders%27%20Equity) [Consolidated Statements of Cash Flows](index=66&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) [Notes to Consolidated Financial Statements](index=68&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=111&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) Dayforce, Inc. reported no changes in or disagreements with accountants on accounting and financial disclosure - No changes in or disagreements with accountants on accounting and financial disclosure were reported[568](index=568&type=chunk) [Item 9A. Controls and Procedures](index=111&type=section&id=Item%209A.%20Controls%20and%20Procedures) Dayforce, Inc.'s management concluded that its disclosure controls and procedures were not effective as of December 31, 2023, due to a material weakness in general information technology controls (GITCs) related to user access and change management over Canadian trust and Powerpay revenue processes, with a remediation plan underway expected to be fully remediated by December 31, 2024 - Management concluded that disclosure controls and procedures were not effective as of December 31, 2023, due to a material weakness in general information technology controls (GITCs)[583](index=583&type=chunk) - The GITC Material Weakness is related to ineffective user access and change management over IT systems supporting Canadian trust and Powerpay revenue processes[584](index=584&type=chunk) - A remediation plan is in progress, including enhanced risk assessments, modified reporting lines, improved training, and stronger user access controls, with full remediation expected by December 31, 2024[587](index=587&type=chunk) - Despite the material weakness, management believes the consolidated financial statements fairly present the company's financial position, results of operations, and cash flows[583](index=583&type=chunk) [Item 9B. Other Information](index=112&type=section&id=Item%209B.%20Other%20Information) William E. McDonald, Executive Vice President, General Counsel and Corporate Secretary, adopted a Rule 10b5-1 trading arrangement on December 18, 2023, for the potential sale of up to **39,419 shares** between May and September 2024, with no other directors or officers adopting or terminating such plans during the fiscal quarter - William E. McDonald adopted a Rule 10b5-1 trading arrangement on December 18, 2023, for the potential sale of up to **39,419 shares** of common stock from May 20, 2024, through September 3, 2024[574](index=574&type=chunk) - The trading arrangement was established within the company's open trading window and in compliance with its insider trading policy[574](index=574&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=112&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to Dayforce, Inc - Not applicable[575](index=575&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=113&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section incorporates by reference information from the company's Proxy Statement regarding directors, executive officers, corporate governance, code of ethics, director nomination process, and the Audit Committee, with the company maintaining a Code of Conduct applicable to all employees, contractors, officers, and directors - Information on directors, executive officers, and corporate governance is incorporated by reference from the Proxy Statement for the 2024 Annual Meeting of Stockholders[591](index=591&type=chunk)[606](index=606&type=chunk) - The company has a 'Code of Conduct' applicable to all employees, contractors, officers, and directors, available on its website[579](index=579&type=chunk)[607](index=607&type=chunk) [Item 11. Executive Compensation](index=113&type=section&id=Item%2011.%20Executive%20Compensation) This section incorporates by reference information from the company's Proxy Statement regarding executive compensation, director compensation, and equity compensation plan information - Information on executive compensation, director compensation, and equity compensation plan information is incorporated by reference from the Proxy Statement[609](index=609&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=113&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) This section incorporates by reference information from the company's Proxy Statement concerning security ownership of certain beneficial owners and management, as well as securities authorized for issuance under equity compensation plans - Information on security ownership of certain beneficial owners and management, and securities authorized for issuance under equity compensation plans, is incorporated by reference from the Proxy Statement[593](index=593&type=chunk)[610](index=610&type=chunk) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=114&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) This section incorporates by reference information from the company's Proxy Statement regarding certain relationships, related party transactions, and director independence - Information on certain relationships, related party transactions, and director independence is incorporated by reference from the Proxy Statement[596](index=596&type=chunk) [Item 14. Principal Accounting Fees and Services](index=114&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) KPMG LLP, Minneapolis, MN, is the independent registered public accounting firm for Dayforce, Inc., and information regarding principal accounting fees and services is incorporated by reference from the Proxy Statement - KPMG LLP is the independent registered public accounting firm[597](index=597&type=chunk) - Information on principal accounting fees and services is incorporated by reference from the Proxy Statement[597](index=597&type=chunk) PART IV [Item 15. Exhibits, Financial Statement Schedules](index=115&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the consolidated financial statements, financial statement schedules, and exhibits filed as part of the Annual Report on Form 10-K, with all financial statement schedules omitted as they are not applicable or the required information is presented in the financial statements or notes - The section includes a list of consolidated financial statements, financial statement schedules, and exhibits[602](index=602&type=chunk)[603](index=603&type=chunk)[611](index=611&type=chunk) - All financial statement schedules are omitted because they are not applicable or the required information is shown in the consolidated financial statements or notes[618](index=618&type=chunk)

Ceridian HCM (CDAY) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on February 7, 2024, might help the stock move higher if these key numbers are better th ...