Ceridian HCM Holding Inc. (CDAY) Q3 2019 Earnings Conference Call November 7, 2019 5:00 PM ET Company Participants Jeremy Johnson – Vice President, Finance and Investor Relations David Ossip – President and Chief Executive Office Arthur Gitajn – Chief Financial Officer Conference Call Participants Samad Samana – Jefferies Mark Marcon – Baird Daniel Jester – Citi Nandan Amladi – Guggenheim Partners Matt Pfau – William Blair Scott Berg – Needham Siti Panigrahi – Mizuho Raimo Lenschow – Barclays Chris Merwin – ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section covers Ceridian's financial statements, management's analysis, market risks, and internal control assessments [Condensed Consolidated Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) This section presents Ceridian's unaudited financial statements, highlighting revenue growth, a shift to net income, and key accounting changes [Financial Statements Overview](index=4&type=section&id=Financial%20Statements%20Overview) Ceridian reported increased revenues and a shift to net income for the nine months ended September 30, 2019, with improved operating cash flow Condensed Consolidated Balance Sheet Data (in millions) | Account | Sep 30, 2019 | Dec 31, 2018 | | :--- | :--- | :--- | | **Assets** | | | | Cash and equivalents | $270.9 | $217.8 | | Total current assets | $3,004.3 | $2,934.1 | | Goodwill | $1,961.2 | $1,927.4 | | Total assets | $5,436.2 | $5,247.8 | | **Liabilities & Equity** | | | | Total current liabilities | $2,743.2 | $2,769.6 | | Long-term debt, less current portion | $659.3 | $663.5 | | Total liabilities | $3,583.1 | $3,632.3 | | Total stockholders' equity | $1,853.1 | $1,615.5 | Condensed Consolidated Statements of Operations (in millions, except per share data) | Metric | Q3 2019 | Q3 2018 | YTD 2019 | YTD 2018 | | :--- | :--- | :--- | :--- | :--- | | Total revenue | $202.3 | $178.1 | $602.3 | $545.9 | | Gross profit | $88.8 | $73.5 | $270.4 | $228.9 | | Operating profit | $6.5 | $16.2 | $52.6 | $35.8 | | Net income (loss) attributable to Ceridian | $62.7 | $4.2 | $80.2 | $(58.5) | | Diluted EPS | $0.42 | $0.03 | $0.54 | $(0.63) | Condensed Consolidated Statements of Cash Flows (in millions) | Cash Flow Activity | Nine Months Ended Sep 30, 2019 | Nine Months Ended Sep 30, 2018 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $24.6 | $(18.1) | | Net cash used in investing activities | $(124.8) | $(15.6) | | Net cash provided by (used in) financing activities | $17.1 | $(483.9) | [Notes to Financial Statements](index=10&type=section&id=Notes%20to%20Financial%20Statements) Notes detail accounting policy changes, the RITEQ acquisition, revenue disaggregation, a service incident loss, and a significant income tax benefit - Adopted new accounting standards **ASC 606 (Revenue)** and **ASC 842 (Leases)** as of January 1, 2019, applying changes retrospectively, altering revenue timing and bringing operating lease assets onto the balance sheet[36](index=36&type=chunk)[38](index=38&type=chunk) - On September 13, 2019, the company acquired **RITEQ**, an Australian workforce management solutions provider, for approximately **$19.4 million**[56](index=56&type=chunk) Disaggregation of Revenue (in millions) | Revenue Source | Q3 2019 | Q3 2018 | YTD 2019 | YTD 2018 | | :--- | :--- | :--- | :--- | :--- | | **Total Cloud Revenue** | **$165.5** | **$131.7** | **$475.8** | **$385.9** | | - Dayforce | $143.7 | $110.4 | $411.0 | $320.3 | | - Powerpay | $21.8 | $21.3 | $64.8 | $65.6 | | **Total Bureau Revenue** | **$36.8** | **$46.4** | **$126.5** | **$160.0** | | **Total Revenue** | **$202.3** | **$178.1** | **$602.3** | **$545.9** | - An isolated service incident on September 26, 2019, resulted in **$18.8 million** of duplicate payroll payments, with **$12.6 million** unrecovered and recorded as a loss[114](index=114&type=chunk) - The company released **$65.8 million** of its valuation allowance against domestic deferred tax assets, resulting in a significant income tax benefit[104](index=104&type=chunk)[105](index=105&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Dayforce Cloud revenue growth, improved gross margins, a net income surge from a tax benefit, and a solid liquidity position [Results of Operations](index=33&type=section&id=Results%20of%20Operations) Q3 2019 saw total revenue increase by 13.6% driven by Cloud growth, improved gross margins, and a significant tax benefit boosting net income Q3 2019 vs Q3 2018 Revenue Growth (Constant Currency) | Revenue Category | Growth (Reported) | Growth (Constant Currency) | | :--- | :--- | :--- | | Total Revenue | 13.6% | 14.0% | | Total Cloud Revenue | 25.7% | 26.2% | | - Dayforce Revenue | 30.2% | 30.5% | | Total Bureau Revenue | (20.7)% | (20.4)% | - The number of live Dayforce customers grew to **4,169** as of September 30, 2019, with the proportion of customers live for two or more years increasing from **62% to 68%**, contributing to improved profitability[135](index=135&type=chunk)[139](index=139&type=chunk)[162](index=162&type=chunk) Gross Margin Analysis | Gross Margin Type | Q3 2019 | Q3 2018 | YTD 2019 | YTD 2018 | | :--- | :--- | :--- | :--- | :--- | | Total Gross Margin | 43.9% | 41.3% | 44.9% | 41.9% | | Cloud Recurring Services | 70.2% | 65.8% | 69.9% | 66.1% | | Professional Services & Other | (7.7)% | (13.6)% | (8.6)% | (15.6)% | - Investment income from customer trust funds increased to **$18.3 million** in Q3 2019, driven by a higher average float balance and a **22 basis point increase** in average yield to **2.33%**[155](index=155&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position, supported by cash reserves and an undrawn revolving credit facility, with manageable debt levels - Primary sources of liquidity as of September 30, 2019, include **$270.9 million** in cash and equivalents and **$300.0 million** available under a revolving credit facility[197](index=197&type=chunk) - Total principal debt balance was **$673.2 million** as of September 30, 2019, with a credit rating upgrade reducing the interest rate on term debt[197](index=197&type=chunk)[198](index=198&type=chunk) - For the nine months ended September 30, 2019, capital expenditures totaled **$38.4 million**, and acquisition costs were **$29.4 million**[206](index=206&type=chunk) [Non-GAAP Measures](index=44&type=section&id=Non-GAAP%20Measures) The company utilizes non-GAAP measures like Constant Currency Revenue and Adjusted EBITDA to assess performance, showing strong growth and margin expansion Adjusted EBITDA Reconciliation (in millions) | Metric | Q3 2019 | Q3 2018 | YTD 2019 | YTD 2018 | | :--- | :--- | :--- | :--- | :--- | | Operating profit | $6.5 | $16.2 | $52.6 | $35.8 | | Depreciation and amortization | $14.9 | $14.3 | $43.9 | $42.4 | | Share-based compensation | $11.4 | $4.8 | $27.0 | $19.5 | | Other non-recurring charges (e) | $12.6 | $— | $12.6 | $— | | **Adjusted EBITDA** | **$46.4** | **$36.4** | **$140.2** | **$118.8** | | **Adjusted EBITDA Margin** | **22.9%** | **20.4%** | **23.3%** | **21.8%** | - Other non-recurring charges of **$12.6 million** in Q3 and YTD 2019 represent the loss on unrecovered duplicate payments from the isolated service incident[222](index=222&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks including foreign currency fluctuations, interest rate changes affecting float income and debt, and pension obligations - Primary market risks include **foreign currency exchange rates**, **interest rate fluctuations** impacting customer trust fund investments and debt, and **pension obligation risks** related to a frozen defined benefit plan[231](index=231&type=chunk) - A **100 basis point change** in interest rates is estimated to have an approximately **$18 million impact on float revenue** and a **$7 million impact on net interest expense** over a twelve-month period[155](index=155&type=chunk)[165](index=165&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective due to a material weakness in internal control over financial reporting from a duplicate payment incident - A **material weakness** in internal control over financial reporting was identified as of September 30, 2019[240](index=240&type=chunk) - The weakness relates to ineffective controls to detect duplicate payments in advance, stemming from a September 26, 2019 incident that caused **$18.8 million** in duplicate payments[239](index=239&type=chunk)[240](index=240&type=chunk) - Due to this material weakness, the CEO and CFO concluded that disclosure controls were not effective, with remediation efforts including additional monitoring controls underway[237](index=237&type=chunk)[240](index=240&type=chunk) [PART II. OTHER INFORMATION](index=51&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, risk factors, equity sales, and a list of exhibits filed with the report [Legal Proceedings](index=51&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business or financial condition - Ceridian is not presently a party to any legal proceedings believed to have a **material adverse effect** on its business[244](index=244&type=chunk) [Risk Factors](index=51&type=section&id=Item%201A.%20Risk%20Factors) A new material risk factor relates to the identified material weakness in internal control over financial reporting, with potential adverse impacts - A new risk factor was disclosed concerning the recently identified **material weakness** in internal control over financial reporting[246](index=246&type=chunk) - The material weakness stems from an isolated service incident resulting in duplicate customer payroll payments, with failure to remediate potentially leading to inaccurate reporting and loss of investor confidence[247](index=247&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=51&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds were reported for the period - None [Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and XBRL data files - Exhibits filed include **CEO and CFO certifications** (Sections 302 and 906 of Sarbanes-Oxley) and **XBRL interactive data files**[252](index=252&type=chunk)

Financial Data and Key Metrics Changes - Dayforce recurring revenue grew by 31%, and 32% on a constant currency basis [8] - Total Dayforce revenue increased by 27% year-over-year and 28% on a constant currency basis [9] - Adjusted EBITDA was $44 million, an increase of 23% compared to last year, with an adjusted EBITDA margin of 22.4%, up 230 basis points year-over-year [11][48] - Diluted net income per share was $0.04 compared to a diluted net loss per share of $0.58 in the same quarter last year [49] Business Line Data and Key Metrics Changes - Cloud revenue, including Dayforce and Powerpay, increased by 22.3% to $155.7 million [34] - Revenue from Powerpay declined by 1.4% to $21.2 million, but was up 2.3% on a constant currency basis [33] - Cloud recurring services gross margin expanded by 370 basis points year-over-year to 69.3% [11][43] Market Data and Key Metrics Changes - The average float balance for customer trust funds was approximately $3.39 billion, compared to $3.35 billion in the same quarter last year [40] - Income from invested customer trust funds was $20.3 million in the second quarter, compared to $16.2 million in the same quarter last year [41] Company Strategy and Development Direction - The company is focusing on product development and sales and marketing investments, with cash investment in product development at $15.6 million, or 7.9% of revenue [13] - A new public sector vertical is being created within the enterprise segment to leverage opportunities in North America [18] - The company plans to expand Dayforce payroll capabilities in Ireland and New Zealand, completing the ANZ region [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Dayforce revenue growth for the remainder of the year, projecting growth around 30% by year-end [60] - The company is optimistic about its ability to handle larger accounts and compete effectively in the market [70] - Management acknowledged potential impacts from Federal Reserve interest rate changes on float revenue but maintained guidance for the year [52][93] Other Important Information - The company was selected as a successful Gate 3 supplier by the government of Canada, allowing it to bid for future payroll and HCM business [16] - Dayforce was named a leader in workforce management by Nucleus Research for the sixth consecutive year [28] Q&A Session Summary Question: Factors contributing to Dayforce revenue growth - Management highlighted strong pipeline growth and implementation of accounts as key factors for confidence in revenue growth [60] Question: International expansion and repeatability of the model - Management confirmed native capabilities in multiple countries and expressed confidence in the repeatability of their expansion model [61] Question: Returns on increased sales and marketing investments - Management reported strong returns on investments, with significant pipeline growth and sales translating effectively [65] Question: On-demand pay demand and compliance - Management noted strong demand for on-demand pay features and emphasized their differentiated approach [67] Question: Competitors' payroll issues and market positioning - Management stated they are only seeing positive trends and have shifted focus towards enterprise accounts [70] Question: Government contract and capabilities - Management expressed pride in winning the government contract and highlighted the extensive evaluation process [75] Question: Float revenue and investment strategy - Management acknowledged the impact of interest rate changes on float revenue but maintained guidance due to overperformance [93] Question: Success in upmarket strategy - Management attributed success to product strengths and a focused go-to-market strategy in specific verticals [97] Question: Expansion into training and e-learning - Management indicated potential for future expansion into learning management and related content delivery [100]

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, 2019 ☐ 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 2019 Earnings Conference Call May 1, 2019 5:00 PM ET Company Participants Jeremy Johnson - VP, Finance & IR David Ossip - Chairman & CEO Arthur Gitajn - EVP & CFO Conference Call Participants Alex Zukin - Piper Jaffray Mark Murphy - JP Morgan Justin Furby - William Blair Mark Marcon - R.W. Baird Michael Turrin - Deutsche Bank Brad Zelnick - Credit Suisse Raimo Lenschow - Barclays Samad Samana - Jefferies Chris Merwin - Goldman Sachs Matthew Wells - Citi Operator Good afte ...

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, 2019 ☐ 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, 2018 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 ...

Ceridian HCM Holding Inc. (CDAY) Q4 2018 Results Earnings Conference Call February 6, 2019 5:00 PM ET Company Participants Jeremy Johnson - VP of Finance & IR David Ossip - Chairman & CEO Arthur Gitajn - Executive VP & CFO Conference Call Participants Mark Murphy - JPMorgan Alex Zukin - Piper Jaffray Michael Turrin - Deutsche Bank Raimo Lenschow - Barclays Mark Marcon - R.W. Baird Brad Zelnick - Credit Suisse Justin Furby - William Blair Samad Samana - Jefferies Chris Merwin - Goldman Sachs Nandan Amladi - ...