Ceridian HCM Holding, Inc. (CDAY) Q2 2021 Results Earnings Conference Call August 4, 2021 5:00 PM ET Company Participants Jeremy Johnson - VP, Finance & IR David Ossip - Chairman & CEO Noemie Heuland - EVP & CFO Erik Zimmer - EVP, Head of Mergers & Acquisitions Conference Call Participants Siti Panigrahi - Mizuho Jared Levine - Cowen Daniel Jester - Citi Mark Marcon - Baird Matt Coss - JPMorgan Michael Turrin - Wells Fargo Brad Clark - BMO Matthew Pfau - William Blair Samad Samana - Jefferies Alex Zukin - W ...

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 June 30, 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 Jurisdicti ...

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)