Ceridian HCM Holding, Inc. (CDAY) Q1 2021 Earnings Conference Call May 5, 2021 5:00 PM ET Company Participants Jeremy Johnson - VP, Finance & IR David Ossip - Chairman & CEO Noemie Heuland - EVP & CFO Conference Call Participants Jared Levine - Cowen and Company Sitikantha Panigrahi - Mizuho Securities Daniel Jester - Citigroup Mark Marcon - Robert W. Baird & Co. Matthew Coss - JPMorgan Chase & Co. Samad Samana - Jefferies Christopher Merwin - Goldman Sachs Group Scott Berg - Needham & Company Alex Zukin - ...

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, 2021 ☐ 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 Ceridian HCM Holding Inc. (Exact name of registrant as specified in its charter) Delaware 46-3231686 (State or Other Jurisdict ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ 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 Ceridian HCM Holding Inc. (Exact name of Registrant as specified in its Charter) (State or other jurisdiction of incorporation ...

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue results above the high-end of guidance, with Dayforce recurring revenue excluding float revenue growing by more than 19% despite elevated COVID-19 headwinds [9][10] - Cloud recurring gross margin increased by 210 basis points to 70.9%, and excluding float revenue, it expanded by 380 basis points [10][11] - The adjusted EBITDA guidance was met while accelerating investments in product, technology, and sales and marketing [9] Business Line Data and Key Metrics Changes - Dayforce Wallet adoption is strong, with over 100 customers using it and 375 signed up in total, maintaining an attach rate of about 80% on new sales [12][13] - Customers using the Wallet experienced a 5% increase in recruiting close rates, a 9% reduction in time to fill open positions, and 42% lower voluntary turnover among employees using the Wallet [13] Market Data and Key Metrics Changes - The sales pipeline remains strong, with expectations that Dayforce recurring revenue growth rates will return to pre-COVID-19 levels above 25% by the second half of 2021 [11][12] - The acquisition of Ascender is expected to enhance the company's position in the APJ region, serving over 1,500 customers and 2.5 million employees, thus providing significant cross-sell opportunities for Dayforce [14] Company Strategy and Development Direction - The company is focused on expanding its global footprint, particularly in the APJ region, and is optimistic about international growth opportunities following recent acquisitions [14][30] - Investments are being made in product capabilities and sales and marketing to support future growth, with a focus on addressing global opportunities [56][57] Management's Comments on Operating Environment and Future Outlook - Management noted that the second wave of COVID-19 impacted sales cycles, but they remain optimistic about recovery in the second half of 2021 as employment levels improve [11][21] - The company expects to see a recovery in sales and revenue growth as the economic environment stabilizes, particularly in the U.S. [71][100] Other Important Information - The company is not charging employees any fees for the use of the Wallet, differentiating it from competitors [48][83] - The company anticipates that the impact of COVID-19 will continue to affect certain business lines, particularly PowerPay, which is under more pressure than Dayforce [100] Q&A Session Summary Question: Impact of sales in this quarter and spillover into January - Management confirmed that several large accounts closed in early January instead of December, leading to a strong sales performance in January [19][21] Question: Opportunities in digitizing HCM processes - Management acknowledged an increase in large enterprise opportunities but could not definitively state if it was due to more opportunities or their increased relevance in the market [22][24] Question: Guidance assumptions regarding unemployment rates - Management indicated that about 25% of sales come from add-ons to the base, with the majority of growth expected from acquiring new customers [27] Question: International expansion and revenue contribution - Management expressed optimism about global opportunities, particularly in APJ, and noted the positive impact of recent acquisitions on win rates [30][31] Question: Return to pre-COVID growth levels - Management refrained from providing specific growth targets but indicated that recovery in employment levels would influence growth rates in the second half of 2021 [34] Question: Ascender acquisition strategy - Management highlighted the importance of Ascender's local expertise and customer base in enhancing their position in the APJ region [62][64] Question: Pricing environment and competitive dynamics - Management stated that pricing remained stable in 2020 compared to 2019, with more flexible contract terms offered due to COVID-19 [95] Question: PowerPay's growth trajectory - Management indicated that PowerPay would face more pressure than Dayforce due to its focus on small businesses in Canada, which are still under lockdown [100]

Ceridian HCM Holding, Inc. (CDAY) Q3 2020 Earnings Conference Call November 5, 2020 5:00 PM ET Company Participants Jeremy Johnson - Vice President, Finance & Investor Relations David Ossip - Chairman & Chief Executive Officer Noemie Heuland - Chief Financial Officer Conference Call Participants Matt Coss - JPMorgan Siti Panigrahi - Mizuho Dan Jester - Citi Michael Turrin - Wells Fargo Samad Samana - Jefferies Bryan Bergin - Cowen & Company Mark Marcon - Baird Raimo Lenschow - Barclays Matthew Pfau - Willia ...

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 September 30, 2020 ☐ 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 Ceridian HCM Holding Inc. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Incorpora ...

Financial Data and Key Metrics Changes - Ceridian reported a strong quarter with Dayforce recurring revenue ex float growing by 24.2% on a constant-currency basis [6] - Cloud recurring services gross margin increased by 140 basis points to 70.7%, and excluding float revenue, it expanded by 360 basis points [6] Business Line Data and Key Metrics Changes - Sales in the second quarter increased year over year, marking the best second quarter in the company's history [7] - The incremental revenue per new client increased by 68% in the quarter [12] Market Data and Key Metrics Changes - The company has seen a significant increase in attendance at virtual summits, doubling year over year [14] Company Strategy and Development Direction - The launch of Dayforce Wallet is progressing well, with over 40 customers piloting the product and more than 100 ready for implementation [7] - The company is confident in achieving record sales in the third quarter, aligning with pre-COVID-19 growth targets [14] Management's Comments on Operating Environment and Future Outlook - Management noted that while there were initial delays due to COVID-19, they are confident in the implementation pace and the ability to get customers live [21] - Retention rates have remained stable, with no material negative changes observed [22] Other Important Information - The company emphasized the importance of digital marketing, which has positively impacted their sales pipeline and momentum [15] Q&A Session Summary Question: Expectations for net new additions and customer size - Management indicated that the incremental revenue per new client has increased significantly, and they expect the trend to continue [12][13] Question: Competitive landscape and market commentary - Management expressed confidence in their competitive position and noted an acceleration in sales pipeline momentum [14][15] Question: Implementation pace and client behavior changes - Management reported that clients continue to go live, and while there were initial distractions due to COVID-19, they are optimistic about future implementations [20][21] Question: Retention rates and changes - Management confirmed that retention has been very sticky, with no notable changes in enterprise departures [22]

PART I. FINANCIAL INFORMATION Unaudited financial statements, management's analysis, market risk, and internal controls are presented [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) Unaudited condensed consolidated financial statements and detailed notes for the quarter ended June 30, 2020 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Snapshot of the company's financial position, detailing assets, liabilities, and equity as of June 30, 2020 Balance Sheet Highlights (as of June 30, 2020 vs. December 31, 2019) | Metric | June 30, 2020 (unaudited) | December 31, 2019 | | :--- | :--- | :--- | | Cash and equivalents | $526.9 million | $281.3 million | | Total current assets | $3,350.0 million | $3,623.7 million | | Goodwill | $2,004.5 million | $1,973.5 million | | Total assets | $5,853.9 million | $6,085.7 million | | Total current liabilities | $2,744.5 million | $3,371.7 million | | Long-term debt, less current portion | $958.6 million | $666.3 million | | Total liabilities | $3,868.2 million | $4,203.4 million | | Total stockholders' equity | $1,985.7 million | $1,882.3 million | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Outlines financial performance, presenting revenues, expenses, and net income for Q2 and H1 ended June 30 Statement of Operations Summary (in millions) | Metric | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $192.6 | $196.3 | $415.3 | $400.0 | | Gross profit | $78.6 | $88.0 | $179.1 | $181.6 | | Operating profit | $4.0 | $18.7 | $30.3 | $46.1 | | Net income | $5.5 | $6.3 | $14.1 | $17.5 | | Diluted EPS | $0.04 | $0.04 | $0.09 | $0.12 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Details cash flows from operating, investing, and financing activities for the six months ended June 30 Cash Flow Summary (Six Months Ended June 30) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $23.9 million | $10.2 million | | Net cash provided by (used in) investing activities | $101.2 million | ($101.9) million | | Net cash (used in) provided by financing activities | ($230.3) million | $1,349.6 million | | Net (decrease) increase in cash, restricted cash, and equivalents | ($117.6) million | $1,265.3 million | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed disclosures on accounting policies, acquisitions, revenue, debt, and share-based compensation - On May 29, 2020, the company acquired 100% of Excelity Global Solutions Pte. Ltd. for **$77.2 million** to expand its human capital management services in the Asia-Pacific region[37](index=37&type=chunk) - Investment income from customer trust funds (float revenue) decreased to **$11.5 million** for Q2 2020 from **$20.3 million** in Q2 2019, and to **$31.1 million** for H1 2020 from **$44.6 million** in H1 2019[43](index=43&type=chunk) - Total debt increased to **$973.5 million** as of June 30, 2020, from **$683.9 million** at year-end 2019, primarily due to drawing **$295.0 million** from the revolving credit facility as a precautionary measure amid the COVID-19 pandemic[53](index=53&type=chunk)[55](index=55&type=chunk) - Total share-based compensation expense was **$15.3 million** for Q2 2020 and **$27.8 million** for H1 2020, up from **$9.6 million** and **$15.6 million** in the respective prior-year periods[66](index=66&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, emphasizing Cloud solution growth, COVID-19 impacts, and liquidity [Overview and Business Model](index=25&type=section&id=Overview%20and%20Business%20Model) Describes Ceridian's global HCM software business, focusing on Cloud and Bureau solutions and Dayforce - Ceridian is a global Human Capital Management (HCM) software company with two main solution categories: Cloud (Dayforce and Powerpay) and Bureau. The business model focuses on the **rapid growth of Dayforce**, a subscription-based platform[100](index=100&type=chunk)[105](index=105&type=chunk) - The company launched Dayforce Wallet in 2020, an on-demand pay feature that gives employees instant access to their earned wages[102](index=102&type=chunk) - The number of live Dayforce customers grew to **4,603** as of June 30, 2020, up from **4,006** a year prior[103](index=103&type=chunk)[109](index=109&type=chunk) [COVID-19 Pandemic Impact](index=26&type=section&id=COVID-19%20Pandemic%20Impact) Details adverse effects of the COVID-19 pandemic on customer demand, employment levels, and float revenue - The COVID-19 pandemic has adversely affected the business through curtailed customer demand, declining employment levels at customers (especially in retail and hospitality), and lower float revenue due to interest rate cuts by the U.S. Federal Reserve and Bank of Canada[107](index=107&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Analyzes revenue, gross profit, and operating expenses, highlighting COVID-19 and float revenue declines Q2 2020 vs. Q2 2019 Revenue Performance (in millions) | Revenue Category | Q2 2020 | Q2 2019 | % Change | | :--- | :--- | :--- | :--- | | Total Cloud Revenue | $167.9 | $155.7 | +7.8% | | Total Bureau Revenue | $24.7 | $40.6 | -39.2% | | **Total Revenue** | **$192.6** | **$196.3** | **-1.9%** | - For Q2 2020, the estimated negative revenue impact from lower customer employment levels due to COVID-19 was **$8 million**. The impact on float revenue was **$7 million**[117](index=117&type=chunk) H1 2020 vs. H1 2019 Revenue Performance (in millions) | Revenue Category | H1 2020 | H1 2019 | % Change | | :--- | :--- | :--- | :--- | | Total Cloud Revenue | $358.8 | $310.3 | +15.6% | | Total Bureau Revenue | $56.5 | $89.7 | -37.0% | | **Total Revenue** | **$415.3** | **$400.0** | **+3.8%** | - Float revenue declined to **$11.5 million** in Q2 2020 from **$20.3 million** in Q2 2019, primarily due to an **86 basis point decline** in the average yield and a decrease in average float balances[121](index=121&type=chunk) - Gross margin for Q2 2020 declined to **40.8%** from **44.8%** in Q2 2019, primarily due to the **$8.8 million decline** in high-margin float revenue[125](index=125&type=chunk)[126](index=126&type=chunk) [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses cash position, operating cash flows, and credit facilities, including a precautionary draw - Primary sources of liquidity are cash on hand, cash from operations, and credit facilities. As of June 30, 2020, the company had cash and equivalents of **$526.9 million**[156](index=156&type=chunk) - On April 2, 2020, the company borrowed **$295.0 million** under its revolving credit facility as a precautionary measure to increase its cash position and preserve financial flexibility amid the COVID-19 pandemic[156](index=156&type=chunk) [Non-GAAP Measures](index=37&type=section&id=Non-GAAP%20Measures) Provides reconciliations and definitions for non-GAAP financial measures, such as Adjusted EBITDA and margin Adjusted EBITDA Reconciliation (in millions) | Metric | Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | | :--- | :--- | :--- | :--- | :--- | | Operating profit | $4.0 | $18.7 | $30.3 | $46.1 | | **Adjusted EBITDA** | **$37.5** | **$44.0** | **$92.7** | **$93.8** | | **Adjusted EBITDA margin** | **19.5%** | **22.4%** | **22.3%** | **23.5%** | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Examines market risks from foreign currency, interest rate fluctuations, and pension obligations - The company's results are subject to fluctuations from foreign currency exchange rates, particularly the Canadian Dollar, but **no active hedging program is in place**[186](index=186&type=chunk) - Interest rate risk affects the income generated from customer trust funds held for payroll and tax services. The portfolio is invested in high-quality, available-for-sale securities, and changes in their value are recorded in other comprehensive income unless sold[187](index=187&type=chunk)[188](index=188&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective; no material internal control changes - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the period covered by the Form 10-Q[192](index=192&type=chunk) - Despite an increase in employees working from home due to the COVID-19 pandemic, there were **no changes** during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal controls over financial reporting[193](index=193&type=chunk) PART II. OTHER INFORMATION Details legal proceedings, updated risk factors, and exhibits filed with the quarterly report [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) No legal proceedings are expected to have a material adverse effect on the company's business - Ceridian is not currently a party to any legal proceedings that are expected to have a **material adverse effect** on its business, financial condition, or liquidity[195](index=195&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) Updates risk factors: COVID-19, Dayforce Wallet, regulatory compliance, and third-party reliance - The COVID-19 pandemic continues to pose a **significant risk**, with potential adverse effects on customer employee headcount, demand for services, and float revenue due to low interest rates[197](index=197&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) - The Dayforce Wallet program introduces new risks, including potential fraud against customers and the risk of customer failure to repay advanced wages, which could lead to **credit losses**[202](index=202&type=chunk)[218](index=218&type=chunk) - The company is subject to a variety of U.S. and international laws regarding privacy and data protection (e.g., GDPR) and financial services, with non-compliance potentially leading to **fines and reputational harm**[203](index=203&type=chunk)[205](index=205&type=chunk)[208](index=208&type=chunk) - Ceridian relies heavily on third-party service providers for critical operations, including data centers, electronic funds transfers, and program management for the Dayforce Wallet. A failure by any of these providers could **materially harm the business**[209](index=209&type=chunk)[210](index=210&type=chunk)[216](index=216&type=chunk) [Item 6. Exhibits](index=49&type=section&id=Item%206.%20Exhibits) Lists exhibits filed, including compensation agreements and Sarbanes-Oxley Act certifications - Exhibits filed with the report include forms of employee and director stock option and restricted stock unit award agreements[228](index=228&type=chunk) - Certifications from the CEO and CFO pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002 are included as exhibits[228](index=228&type=chunk)

Ceridian HCM Holding, Inc. (CDAY) Q1 2020 Earnings Conference Call May 6, 2020 5:00 PM ET Company Participants Jeremy Johnson - VP, Finance & IR David Ossip - Chairman & CEO Conference Call Participants Daniel Jester - Citigroup Mark Marcon - Robert W. Baird & Co. Raimo Lenschow - Barclays Bank Robert Simmons - RBC Capital Markets Samad Samana - Jefferies Joshua Reilly - Needham & Company Bryan Bergin - Cowen and Company Matthew Coss - JPMorgan Chase & Co. Stephanie Price - CIBC Capital Markets Yao Chew - C ...

[Part I. Financial Information](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Condensed Consolidated Financial Statements (unaudited)](index=5&type=page&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) For Q1 2020, Ceridian reported total revenue of $222.7 million, a 9.3% increase, and net income of $8.6 million, with total assets rising to $6.47 billion due to increased customer trust funds Condensed Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Total Assets** | **$6,470.1** | **$6,085.7** | | Cash and equivalents | $255.3 | $281.3 | | Customer trust funds | $3,649.5 | $3,204.1 | | Goodwill | $1,939.5 | $1,973.5 | | **Total Liabilities** | **$4,584.5** | **$4,203.4** | | Customer trust funds obligations | $3,605.2 | $3,193.6 | | Long-term debt, less current portion | $665.0 | $666.3 | | **Total Stockholders' Equity** | **$1,885.6** | **$1,882.3** | Condensed Consolidated Statement of Operations (in millions, except per share data) | Metric | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | **Total Revenue** | **$222.7** | **$203.7** | | Gross Profit | $100.5 | $93.6 | | Operating Profit | $26.3 | $27.4 | | **Net Income** | **$8.6** | **$11.2** | | Diluted EPS | $0.06 | $0.08 | Condensed Consolidated Statement of Cash Flows Highlights (in millions) | Cash Flow Activity | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $1.4 | $(8.8) | | Net cash provided by (used in) investing activities | $9.3 | $(117.6) | | Net cash provided by financing activities | $489.5 | $1,934.5 | [Note 4: Customer Trust Funds](index=11&type=page&id=Note%204.%20Customer%20Trust%20Funds) Investment income from customer trust funds decreased to $19.6 million in Q1 2020, primarily due to interest rate changes, while total funds held increased to $3.65 billion - Investment income from invested customer trust funds (float revenue) was **$19.6 million** for Q1 2020, compared to **$24.3 million** for Q1 2019[39](index=39&type=chunk) Customer Trust Funds (in millions) | Date | Total Customer Trust Funds | | :--- | :--- | | March 31, 2020 | $3,649.5 | | December 31, 2019 | $3,204.1 | [Note 6: Debt](index=14&type=page&id=Note%206.%20Debt) Total debt was $681.2 million as of March 31, 2020, with the company amending its credit facility to reduce interest rates and borrowing $295.0 million as a COVID-19 precautionary measure - On February 19, 2020, Ceridian amended its credit facility, reducing the Term Debt interest rate to **LIBOR plus 2.50%**[53](index=53&type=chunk) - On April 2, 2020, the company borrowed **$295.0 million** under its revolving credit facility as a precautionary measure in response to the COVID-19 pandemic[54](index=54&type=chunk) [Note 9: Revenue](index=18&type=page&id=Note%209.%20Revenue) Total revenue for Q1 2020 was $222.7 million, driven by significant Cloud revenue growth to $190.9 million, while Bureau revenue declined, with remaining performance obligations at $908.3 million Revenue Disaggregation (in millions) | Revenue Source | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | **Total Cloud Revenue** | **$190.9** | **$154.6** | | - Dayforce | $168.8 | $132.8 | | - Powerpay | $22.1 | $21.8 | | **Total Bureau Revenue** | **$31.8** | **$49.1** | | **Total Revenue** | **$222.7** | **$203.7** | - As of March 31, 2020, approximately **$908.3 million** of revenue is expected to be recognized over the next three years from remaining performance obligations[77](index=77&type=chunk) [Note 16: Subsequent Events](index=23&type=page&id=Note%2016.%20Subsequent%20Events) On May 6, 2020, the company agreed to acquire Excelity Global Solutions Pte. Ltd., an Asia-Pacific human capital management service provider, with the transaction expected to close in Q2 2020 - On May 6, 2020, Ceridian agreed to acquire Excelity Global Solutions Pte. Ltd., an HCM provider in the Asia-Pacific region, with the deal expected to close in Q2 2020[95](index=95&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=24&type=page&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 9.3% year-over-year revenue growth primarily to strong Cloud solutions performance, anticipating adverse effects on future revenue due to COVID-19 and lower interest rates, while Adjusted EBITDA increased to $55.2 million - The number of live Dayforce customers grew to **4,480** as of March 31, 2020, from **3,851** a year prior[107](index=107&type=chunk) - Management anticipates adverse effects on revenue for the remainder of 2020 due to declining employment levels at customers (especially in retail and hospitality) and lower interest rates impacting float revenue[105](index=105&type=chunk) Adjusted EBITDA Reconciliation (in millions) | Metric | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | Operating profit | $26.3 | $27.4 | | Adjustments (Depreciation, Amortization, Share-based comp, etc.) | $28.9 | $22.4 | | **Adjusted EBITDA** | **$55.2** | **$49.8** | | **Adjusted EBITDA Margin** | **24.8%** | **24.4%** | [Results of Operations](index=26&type=page&id=Results%20of%20Operations) Total revenue increased by $19.0 million (9.3%) to $222.7 million in Q1 2020, driven by 23.5% Cloud revenue growth, while Bureau revenue declined 35.2%, partly due to customer migrations Revenue Growth Analysis (Q1 2020 vs Q1 2019) | Revenue Category | Reported Growth | Constant Currency Growth | | :--- | :--- | :--- | | Total Revenue | 9.3% | 9.5% | | Total Cloud Revenue | 23.5% | 23.7% | | - Dayforce Revenue | 27.1% | 27.3% | | Total Bureau Revenue | (35.2)% | (35.0)% | - Float revenue decreased to **$19.6 million** from **$24.3 million** year-over-year, primarily due to a **49 basis point** decline in the average yield on investments[118](index=118&type=chunk) - Cloud recurring services gross margin increased to **72.6%** from **70.1%** in Q1 2019, reflecting economies of scale and a higher proportion of mature customers[125](index=125&type=chunk) [Liquidity and Capital Resources](index=30&type=page&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2020, the company had $255.3 million in cash and equivalents and $300.0 million available credit, drawing $295.0 million as a COVID-19 precaution, believing existing liquidity is sufficient - Primary sources of liquidity are cash on hand (**$255.3 million** as of March 31, 2020), cash from operations, and borrowings under the credit facility[132](index=132&type=chunk) - On April 2, 2020, Ceridian borrowed **$295.0 million** under its revolving credit facility to increase its cash position and preserve financial flexibility amid the COVID-19 pandemic[135](index=135&type=chunk) - The company believes its current liquidity sources are sufficient to meet its needs for the foreseeable future[137](index=137&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=35&type=page&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks from foreign currency exchange rates, interest rates affecting float revenue and debt expense, and pension obligations, but does not currently hedge foreign currency risk - Key market risks include foreign currency fluctuations (especially CAD), interest rate changes impacting float revenue and debt expense, and pension obligations[159](index=159&type=chunk) - A **100 basis point** change in interest rates is not expected to have a material effect on operating results or financial condition[163](index=163&type=chunk) [Controls and Procedures](index=36&type=page&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2020, with no material changes to internal controls, though remote work impacts due to COVID-19 are being evaluated - The CEO and CFO concluded that disclosure controls and procedures were effective as of the end of the reporting period[166](index=166&type=chunk) - No material changes were made to internal controls over financial reporting in Q1 2020, but the company is monitoring the impact of remote work due to COVID-19[167](index=167&type=chunk) [Part II. Other Information](index=37&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=37&type=page&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any legal proceedings expected to have a material adverse effect on its business, financial condition, or liquidity - Ceridian is not presently a party to any legal proceedings that would have a material adverse effect on the company[169](index=169&type=chunk) [Risk Factors](index=37&type=page&id=Item%201A.%20Risk%20Factors) This section highlights material risks, including significant new focus on COVID-19 impacts on revenue and operations, potential fraud from Dayforce Wallet, reliance on third-party service providers, and credit risk from advancing funds - The COVID-19 pandemic is identified as a major risk, potentially affecting revenue through customer job cuts, delayed sales decisions, and reduced float revenue from lower interest rates[171](index=171&type=chunk)[172](index=172&type=chunk)[173](index=173&type=chunk) - The Dayforce Wallet service introduces new risks, including potential fraud, credit risk from advancing wages on behalf of customers, and increased regulatory requirements[176](index=176&type=chunk)[192](index=192&type=chunk)[193](index=193&type=chunk) - The company relies heavily on third-party providers for essential services, including data centers, electronic funds transfer processing, and program management for the Dayforce Wallet. A failure by these providers could materially harm the business[183](index=183&type=chunk)[184](index=184&type=chunk)[186](index=186&type=chunk) - Customer funds held in trust are subject to market, interest rate, and credit risks. A significant loss of principal could adversely affect the company's financial condition[196](index=196&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=page&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - None[197](index=197&type=chunk) [Defaults Upon Senior Securities](index=42&type=page&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during the period - None[198](index=198&type=chunk) [Mine Safety Disclosures](index=42&type=page&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[199](index=199&type=chunk) [Other Information](index=42&type=page&id=Item%205.%20Other%20Information) There was no other information to report for the period - None[200](index=200&type=chunk) [Exhibits](index=43&type=page&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amendments to employment and credit agreements, various award agreements, and required CEO/CFO certifications - Exhibits filed include the First Amendment to the Senior Secured Credit Agreement and various management compensation plans and agreements[202](index=202&type=chunk)