Group 1 - Dayforce Inc (NYSE:DAY) stock increased by 25.3%, trading at $66.24, following reports of private equity firm Thoma Bravo in talks to acquire the company, which is valued at $8.4 billion [1] - There is potential for a bidding war and other factors that could delay the deal [1] - The stock is trading at its highest level since February and is on track for its largest single-day percentage gain on record, breaking above the $60 level for the first time since March [2] Group 2 - Dayforce stock's short interest has increased by 24.2% in the last month, representing 4.8% of the stock's available float, which may be contributing to a short squeeze [2] - The stock's 14-day relative strength index (RSI) of 28 indicates it is in "oversold" territory, suggesting it was overdue for a short-term bounce [3] - Trading activity has significantly increased, with 2,032 calls and 1,772 puts exchanged, which is 18 times its average daily options volume [3]

Core Viewpoint - Human resources management software provider Dayforce (DAY.US) saw its stock price surge over 26% due to ongoing acquisition talks with private equity giant Thoma Bravo, with a transaction valuation exceeding $9 billion [1] Group 1 - Thoma Bravo is in advanced negotiations to acquire Dayforce, with plans to take the company private [1] - The acquisition announcement is expected within the next few weeks, although there is a possibility of delays or the deal falling through [1] - There is also a potential for other bidders to emerge in the acquisition process [1]

过去12个月，Dayforce在纽约交易的股价下跌约5%，公司市值约为84亿美元。该公司股票同时在多伦 多证券交易所上市交易。 Thoma Bravo四月同意以106亿美元现金收购波音公司飞行导航部门及其他数字资产，七月又以20亿美 元达成收购餐厅软件制造商Olo Inc.的交易。该机构还就潜在收购Verint Systems Inc.进行过洽谈。 知情人士称，该收购方计划将Dayforce私有化，交易可能在未来几周内宣布。尽管谈判已进入深入阶 段，但仍可能延迟或破裂，且不排除出现其他竞购者的可能性。 根据其官网信息，去年从Ceridian HCM Holding Inc.更名的Dayforce提供人工智能驱动的招聘、薪酬管理 和员工职业发展软件，客户涵盖医疗保健、零售、酒店及金融服务等行业。彭博汇编数据显示，该公司 目前负债约12亿美元，企业价值超过90亿美元。 智通财经APP获悉，据知情人士透露，私募股权公司Thoma Bravo正就收购人力资源管理软件提供商 Dayforce(DAY.US)进行谈判。 在私募股权公司面临资本配置挑战的市场环境下，由联合创始人奥兰多·布拉沃领导的Thoma Bravo今年 ...

Summary of Dayforce (DAY) Conference Call - August 11, 2025 Company Overview - **Company**: Dayforce (DAY) - **Industry**: Human Capital Management (HCM) Software Key Points Demand and Revenue Performance - Dayforce is experiencing strong demand with three consecutive quarters of over 40% bookings growth, starting from Q4 of the previous year [4] - Current recurring revenue growth is at approximately 14% in constant currency, indicating a disparity between bookings and revenue growth [4][5] - Forecast for Q3 recurring revenue growth is expected to be between 13% to 16%, and for Q4, between 16% to 19% [6] Customer Dynamics - The company has a gross retention rate of 98% for enterprise customers, while smaller customers experience higher churn rates [12] - The average revenue per customer is currently $170,000, with expectations for this figure to increase as larger customers are onboarded [13] - Add-on sales constitute 40% of total sales, with managed services accounting for 17% [7] Product and Technology Advancements - Dayforce has launched an AI assistant that enhances user experience by allowing employees to query company-specific information [24][25] - The AI assistant has been attached to 50% of sales year-to-date, indicating strong market resonance [26] - Future plans include launching 30 AI agents to automate various tasks for users [27] Market Position and Competitive Landscape - Dayforce is positioned as a competitor to Workday and ADP, focusing on larger enterprise customers [37] - The company has successfully secured contracts with significant clients, including the Government of Canada and a large U.S. Federal agency [35][36] - Dayforce aims to replace multiple vendor solutions with its comprehensive platform, which is seen as a competitive advantage [38] Financial Performance and Projections - Free cash flow margin has improved to 13.5% to 14%, with a target of reaching $1 billion in free cash flow by 2031 [42][43] - The company aims to expand free cash flow margins by 100 to 200 basis points annually, with confidence in controlling costs and improving cash realization [44][45] Additional Insights - The company emphasizes the importance of AI in the industry, viewing it as a critical factor for future success [29] - Dayforce's strategy includes focusing on larger customers while maintaining strong relationships with systems integrators [32][33] This summary encapsulates the key insights and data points from the Dayforce conference call, highlighting the company's current performance, future outlook, and strategic initiatives.

Core Insights - Dayforce (DAY) reported Q2 2025 earnings of 61 cents per share, exceeding the Zacks Consensus Estimate of 52 cents, marking a 27.1% year-over-year increase [1] - Revenues reached $464.7 million, surpassing the Zacks Consensus Estimate by 1.5%, and increased by 9.8% year-over-year [1] - Shares experienced a decline of 1.02% at the time of reporting [1] Revenue Details - Recurring revenues, which constitute 84.6% of total revenues, grew by 7.7% year-over-year to $393.1 million [2] - Excluding float revenues, recurring revenues totaled $315.5 million, reflecting a robust 13.6% year-over-year growth [2] - Total revenues, excluding float, were $417.3 million, an increase of 11.5% year-over-year [1] Customer Metrics - Recurring revenue per customer was $171,075 for the trailing 12 months ending June 30, 2025, showing a year-over-year increase of 10.4% [3] - The number of live customers on the Dayforce platform reached 6,984, representing a year-over-year growth of 4.9% [3] - Powerpay's recurring revenues remained unchanged year-over-year at $19.9 million [3] Operating Performance - Selling and marketing expenses in Q2 2025 were $83.7 million, up 1.6% year-over-year [4] - General and Administrative expenses decreased by 0.2% year-over-year to $58.9 million [4] - Adjusted EBITDA was $147.2 million, reflecting a 26.6% year-over-year increase, with an adjusted EBITDA margin of 31.7%, up 420 basis points [4] Financial Position - As of June 30, 2025, cash and cash equivalents were $625.2 million, an increase from $557.3 million as of March 31 [5] - Cash provided by operating activities was $112.7 million, up from $49.6 million in the prior quarter [5] - Free cash flow was reported at $87.1 million, compared to $19.5 million in the previous quarter [5] Guidance - For Q3 2025, Dayforce expects total revenues of $476-$486 million, with total revenue excluding float projected between $434 million and $444 million [8] - The company anticipates adjusted EBITDA margin to be between 30% and 30.5% for Q3 2025 [8] - For the full year 2025, total revenues are expected to be between $1.935 billion and $1.955 billion [9] Future Projections - Total revenues, excluding float, are projected to be in the range of $1.749 billion to $1.769 billion, indicating a year-over-year increase of approximately 12.1% to 13.4% [9] - Recurring revenues, excluding float, are expected to be between $1.324 billion and $1.344 billion, reflecting a growth of approximately 14.2% to 15.9% [9] - Float revenues for 2025 are anticipated to be $186 million [9]

Financial Data and Key Metrics Changes - Dayforce reported a total revenue of $465 million, representing a 10% increase year-over-year, with recurring revenue excluding float growing by 14% to $315.5 million [24][25] - Adjusted EBITDA increased by 27% to $147.2 million, achieving a margin of 31.7%, which is an expansion of 420 basis points [25][26] - Free cash flow for the quarter was $87.1 million, or 18.7% of revenue, with year-to-date free cash flow rising to $106.6 million, up 500 basis points from the previous year [6][7][26] Business Line Data and Key Metrics Changes - Professional services revenue grew by 23% to $71.6 million, indicating strong demand for implementation services [25] - New client bookings across all segments performed well, with bookings growing over 40% year-to-date [9][10] - Sales to existing customers increased by over 50% in the second quarter, representing 40% of total bookings [10] Market Data and Key Metrics Changes - The demand environment remains strong, with year-to-date bookings growth exceeding 40% [26] - Employment levels at customer organizations have shown moderate growth of approximately 1% [26][81] - Foreign exchange rates improved during the quarter, positively impacting guidance [26] Company Strategy and Development Direction - The company aims to grow Dayforce recurring revenue above 15% and has increased free cash flow margin guidance from 12% to between 13.5% and 14% [7][28] - Dayforce is focusing on a single data model to enhance AI capabilities and streamline operations, which is expected to drive higher sales productivity and profitability [19][70] - The company is actively hiring additional sales personnel to capitalize on market opportunities and improve conversion rates [102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $1 billion in free cash flow by 2031, supported by strong operational efficiencies and favorable legislative changes [7][31][32] - The company anticipates solid growth in the fourth quarter, driven by revenue from go-lives related to strong bookings from previous quarters [29] - Management noted that the market demand for a single system is strong, driven by the need for efficiency and better decision-making capabilities [70][74] Other Important Information - The company is in the final stages of terminating legacy pension plans, which is expected to impact cash flow guidance positively [32] - Dayforce's AI roadmap includes the introduction of over 30 AI agents, enhancing the platform's capabilities [18][50] Q&A Session Summary Question: Sales growth from SI partners - Management reported that SI-led sales were up 80% for the first half of the year, with strong full suite attachment rates across segments [36][38] Question: Bookings translating to revenue - Management indicated that it typically takes about 12 months to onboard new clients, with add-ons occurring faster than new client implementations [42][43] Question: Updates on AI products - Management highlighted the introduction of various AI products, with significant potential for upselling to existing clients [47][50] Question: Free cash flow guidance - Management confirmed that the increase in free cash flow margin is primarily driven by tax changes, alongside underlying operational efficiencies [89][90] Question: Phasing of the Government of Canada contract - Management stated that the contract is progressing well, with revenue recognition expected to phase through the back half of the year [98][99]

Financial Data and Key Metrics Changes - Dayforce's recurring revenue excluding float grew by 14% on a constant currency basis, reaching $315.5 million [5][25] - Adjusted EBITDA margin increased by 420 basis points to 31.7%, with adjusted EBITDA at $147.2 million, up 27% [5][25] - Free cash flow for the quarter was $87.1 million, representing 18.7% of revenue, and year-to-date free cash flow increased by 500 basis points to $106.6 million [5][6][25] Business Line Data and Key Metrics Changes - Professional services revenue rose by 23% to $71.6 million, indicating strong demand for services [25] - New client bookings across all segments performed well, with bookings growing over 40% year-to-date [8][27] - Back to base sales strategy saw sales to existing customers grow over 50%, representing 40% of total bookings [9] Market Data and Key Metrics Changes - The demand environment remains strong, with year-to-date bookings growth over 40% [27] - Employment levels at customers have shown moderate growth, estimated at just under 1% [27][81] - Foreign exchange rates improved against the U.S. Dollar in Canada, the UK, and Australia, positively impacting guidance [27] Company Strategy and Development Direction - The company aims to grow Dayforce recurring revenue above 15% and has increased free cash flow margins guidance from 12% to between 13.5% to 14% [6][29] - Dayforce is focusing on consolidating an average of 12 systems into one, enhancing customer value and operational efficiency [7][19] - The company is positioning itself as an AI leader, integrating AI across its suite and enhancing product offerings [15][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $1 billion in free cash flow by 2031, supported by strong operational performance and market demand [6][32] - The company noted that the macroeconomic environment remains favorable for its business, particularly in sectors like hospitality and retail [81] - Management highlighted the importance of a single data model for AI capabilities, which differentiates Dayforce from competitors [19][72] Other Important Information - The company repurchased $20.8 million of common stock during the second quarter, bringing the year-to-date total to $51.2 million [26] - The government of Canada selected Dayforce for HR and payroll transformation, marking a significant contract win [14][49] Q&A Session Summary Question: Sales growth from system integrator partners - System integrator-led sales were up 80% for the first half of the year, with strong full suite attachment rates [36][39] Question: Bookings translating to revenue and go-live initiatives - Onboarding a new client typically takes about 12 months, with add-ons happening quicker than new clients [42][43] Question: AI product introduction and pricing - The company is launching around 30 AI agents, with significant potential to reintroduce these to current clients [47][50] Question: Impact of the One Big Beautiful Bill Act on R&D - The act allows immediate expensing of domestic R&D costs, providing a cash tax benefit of $40 million to $50 million this year [56][58] Question: Phasing of the Government of Canada contract - The contract is expected to phase through the back half of the year, with about half of the revenue recognized so far [96][97] Question: Sales strategy and hiring plans - The company is leaning into hiring additional sellers to capitalize on strong sales momentum [100]

Revenue Growth - Total revenue increased by $41.4 million, or 9.8%, to $464.7 million for the three months ended June 30, 2025, compared to $423.3 million for the same period in 2024[128] - Total revenue increased by $91.7 million, or 10.7%, to $946.5 million for the six months ended June 30, 2025, compared to $854.8 million for the same period in 2024[145] - Total recurring services revenue reached $393.1 million, a 7.7% increase from $365.0 million in the same period in 2024[126] - Professional services revenue increased by $13.3 million, or 22.8%, to $71.6 million for the three months ended June 30, 2025[126] Customer Metrics - The number of live Dayforce customers increased by 4.9% to 6,984 at June 30, 2025, from 6,657 at June 30, 2024[128] - Dayforce recurring revenue per customer grew to $171,075 for the trailing twelve months ended June 30, 2025, compared to $154,998 for the comparable period in 2024[128] Profitability - Operating profit for the three months ended June 30, 2025, was $42.3 million, a 200% increase from $14.1 million in the same period in 2024[126] - Operating profit for the six months ended June 30, 2025, was $73.3 million, compared to $54.8 million for the same period in 2024, reflecting a 33.8% increase[155] - Net income for the three months ended June 30, 2025, was $21.3 million, compared to a net loss of $1.8 million for the same period in 2024, representing a 1283.3% increase[126] - Net income for the six months ended June 30, 2025, was $36.2 million, compared to a net income of $5.3 million for the same period in 2024, representing a 583.0% increase[143] Costs and Expenses - Costs of recurring services increased by $3.4 million, or 3.8%, primarily due to a $4.5 million rise in consulting and contract labor[130] - Total costs and expenses increased by $73.2 million, or 9.2%, for the six months ended June 30, 2025, compared to the same period in 2024[143] - General and administrative expenses increased by $15.0 million, or 13.0%, for the six months ended June 30, 2025, primarily due to an $18.1 million increase in labor and benefit expenses[153] Cash Flow and Liquidity - Cash and equivalents as of June 30, 2025, totaled $625.2 million, while total debt stood at $1,224.6 million[161] - Net cash provided by operating activities increased to $162.3 million for the six months ended June 30, 2025, compared to $108.3 million in the prior year[166] - Free cash flow for the three months ended June 30, 2025, was $87.1 million, with a free cash flow margin of 18.7%[186] - The company believes its cash flow from operations and available cash will be sufficient to meet liquidity needs for the next twelve months[164] Investment and Development - Investment in software development was $113.3 million for the six months ended June 30, 2025, compared to $105.9 million for the same period in 2024[150] - Capital expenditures for the six months ended June 30, 2025, included $47.8 million for software and technology[168] Tax and Other Expenses - The company incurred an income tax expense increase of $8.1 million for the six months ended June 30, 2025, primarily due to current operations[159] - Other expense, net, improved to $0.9 million for the six months ended June 30, 2025, compared to $12.0 million in the same period of 2024, largely due to foreign currency translation gains[158] Future Outlook and Risks - The company is closely monitoring changes in international trade relations and economic policies that could impact its operating results[117] - The company expects no material impact from a hypothetical 10% change in foreign currency exchange rates on its operations[189] - A 100 basis point decrease in market investment rates could result in approximately $27 million decrease in float revenue over the next twelve months[192] Pension Plan - The pension plan for certain U.S. employees was closed to new participants on January 2, 1995, and benefits were frozen as of December 31, 2007[196] - The company is finalizing the wind down of the pension plan, expecting to transfer associated liabilities to an insurance company by 2025[197] - Future pension benefit costs will depend on actual returns on plan assets and actuarial assumptions, with the effective discount rate for 2024 ranging from 5.06% to 5.35%[197] - The expected rate of return on plan assets for qualified pension benefits in 2025 is set at 5.10%[197]

Revenue Performance - Dayforce's recurring revenue, excluding float, reached $316 million, reflecting a 14% increase on a GAAP and constant currency basis[2]. - Total revenue for the second quarter was $465 million, up 10%, and excluding float, total revenue was $417.3 million, an increase of 11.5% on a GAAP and constant currency basis[7]. - Total revenue for Q2 2025 was $464.7 million, a 9.4% increase from $423.3 million in Q2 2024[30]. - Total revenue for Q2 2025 reached $464.7 million, representing a 9.8% increase compared to $423.3 million in Q2 2024[34]. - For the first half of 2025, total revenue was $946.5 million, a 10.7% increase from $854.8 million in the first half of 2024[34]. - The company reported a total revenue excluding float of $417.3 million, which is an 11.5% increase from $374.4 million in Q2 2024[34]. Recurring Revenue - Dayforce recurring revenue increased by 13.6% to $315.5 million, compared to $277.7 million in Q2 2024[34]. - Recurring services revenue reached $393.1 million, up 7.7% from $365.0 million year-over-year[30]. - Total recurring revenue for the first half of 2025 was $803.6 million, reflecting a 7.5% increase from $747.7 million in the prior year[34]. - Dayforce's recurring revenue per customer increased to $171,075, a 10.4% rise year-over-year[14]. Profitability Metrics - Adjusted EBITDA for the second quarter was $147.2 million, with an adjusted EBITDA margin of 31.7%, up from 27.5% year-over-year[7]. - Operating profit for Q2 2025 was $42.3 million, significantly higher than $14.1 million in Q2 2024[30]. - For the six months ended June 30, 2025, operating profit was $73.3 million with a margin of 7.7%, compared to $54.8 million and 6.4% for the same period in 2024, representing a 33.5% increase in operating profit[41]. - Adjusted operating profit for the six months ended June 30, 2025, was $94.4 million, with an adjusted operating profit margin of 27.2%[41]. - Net income for the six months ended June 30, 2025, was $36.2 million, a 584.9% increase from $5.3 million in the same period of 2024, resulting in a net income margin of 3.8%[41]. - Net income for Q2 2025 was $21.3 million, translating to a diluted net income per share of $0.13[39]. Cash Flow and Financial Position - Year-to-date net cash provided by operating activities was $162 million, compared to $108.3 million for the same period in 2024, representing a margin increase from 12.7% to 17.1%[7]. - Dayforce's free cash flow for the first half of 2025 was $106.6 million, compared to $53.9 million for the same period in 2024, indicating a free cash flow margin increase from 6.3% to 11.3%[7]. - The company aims for $1 billion in free cash flow by 2031, supported by strong go-live execution and disciplined cost management[4]. - The guidance for free cash flow for the twelve months ending December 31, 2025, is projected to be between $261 million and $274 million[43]. - The company’s free cash flow margin for the six months ended June 30, 2025, was 11.3%, compared to 6.3% in 2024[43]. Customer Metrics - Dayforce had 6,984 customers live on its platform as of June 30, 2025, marking a 4.9% year-over-year increase[7]. Balance Sheet Highlights - Total assets decreased to $8,500.8 million as of June 30, 2025, down from $9,117.0 million at the end of 2024[28]. - Current liabilities increased to $5,117.8 million from $5,314.8 million at the end of 2024, primarily due to customer funds obligations[28]. - Cash and equivalents at the end of Q2 2025 were $625.2 million, compared to $579.7 million at the end of 2024[28]. - Total liabilities decreased to $5,798.5 million from $6,570.7 million at the end of 2024[28]. Shareholder Information - The company reported a basic net income per share of $0.13 for Q2 2025, compared to a loss of $0.01 per share in Q2 2024[30]. - The company reported a diluted net income per share of $0.22 for the six months ended June 30, 2025, compared to $0.03 in 2024[41]. - The company incurred $94.3 million in share-based compensation expense for the six months ended June 30, 2025, compared to $78.8 million in 2024[32]. Adjustments and Other Financial Metrics - The adjustments to net income for the six months ended June 30, 2025, included $10.5 million related to the termination of a frozen U.S. pension plan and a $10.2 million foreign exchange gain[41]. - EBITDA for the six months ended June 30, 2025, was $179.5 million, reflecting a 26.3% increase from $142.2 million in 2024, with an EBITDA margin of 32.1%[41]. - Adjusted EBITDA for Q2 2025 was $98.6 million, with an adjusted EBITDA margin of 21.2%[39].

Core Insights - Dayforce (DAY) is set to report its second-quarter 2025 results on August 4, with expected revenues between $454 million and $460 million, reflecting a year-over-year growth of 8.3% [1][9] - The Zacks Consensus Estimate for second-quarter revenues is $458.2 million, indicating an 8.3% year-over-year increase, with earnings estimated at 52 cents per share, also showing 8.3% growth [2] - Dayforce has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 17.04% [2] Revenue and Customer Growth - The anticipated revenue for the upcoming quarter, excluding float revenues of $46 million, is projected to be between $408 million and $414 million [1] - As of March 31, 2025, Dayforce had 6,929 customers, marking a 5.4% year-over-year increase, and recurring revenue per customer reached $167,600, up 11.5% from the previous year [4] Technological Advancements - Dayforce is enhancing its AI capabilities with tools like Dayforce AI Assistant, which is now available on mobile platforms, and improvements in various workflows, expected to drive platform adoption and revenue growth [5] - The company is also expanding compliance features for global statutory requirements, which is anticipated to attract new clients [6] Market Performance - Since the release of first-quarter 2025 results on May 7, DAY shares have increased by 6.1%, underperforming the broader Zacks Computer and Technology sector, which appreciated by 14.2%, and the Zacks Internet Software industry, which returned 17.2% [3]