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Ceridian(CDAY) - 2024 Q1 - Quarterly Results
CDAYCeridian(CDAY)2024-05-01 11:00

Dayforce Platform Performance - Dayforce platform had 6,575 live customers as of March 31, 2024, a 6.4% year-over-year increase from March 31, 2023[1] - Dayforce recurring revenue reached 337.2million,up24.3337.2 million, up 24.3% year-over-year, with 282.4 million excluding float revenue, up 23.0%[13] - Dayforce recurring revenue per customer was 150,362forthetrailingtwelvemonthsendedMarch31,2024,a19.2150,362 for the trailing twelve months ended March 31, 2024, a 19.2% increase[15] - Dayforce Wallet had over 1,960 customers signed on, with more than 1,200 live customers as of March 31, 2024, and an average registration rate above 65%[18] - Dayforce Co-Pilot, an AI-enhanced feature, was introduced to boost recruiter productivity and improve employee access to company FAQs[6] - Dayforce completed 160+ global compliance updates to enhance year-end requirements, reporting functionalities, and tax rates[6] - Dayforce recurring revenue increased by 24.3% to 337.2 million, with Dayforce float revenue growing by 31.7% to 54.8million[43]−TheaveragefloatbalanceforDayforce′scustomerfundsduringthequarterwas54.8 million[43] - The average float balance for Dayforce's customer funds during the quarter was 5.56 billion, with an average yield of 4.4%, generating 60.7millioninfloatrevenue[61]FinancialPerformance−Operatingprofitwas60.7 million in float revenue[61] Financial Performance - Operating profit was 40.7 million, or 9.4% of total revenue, compared to 38.4million,or10.438.4 million, or 10.4% of total revenue in the previous year[14] - Total revenue increased by 16.4% to 431.5 million, with recurring revenue contributing 382.7million[43]−TotalrevenueforQ12024was382.7 million[43] - Total revenue for Q1 2024 was 431.5 million, a 16.4% increase year-over-year, or 16.5% on a constant currency basis[59] - Total revenue of 431.5million,up16.4431.5 million, up 16.4%[91] - Net income decreased to 7.1 million in Q1 2024 from 9.9millioninQ12023,reflectinghigheroperatingexpenses[39]−Netincomewas9.9 million in Q1 2023, reflecting higher operating expenses[39] - Net income was 7.1 million, compared to 9.9million[93]−Adjustednetincomewas9.9 million[93] - Adjusted net income was 68.0 million, compared to 49.3million[93]−Adjusteddilutednetincomepersharewas49.3 million[93] - Adjusted diluted net income per share was 0.31, compared to 0.06onaGAAPbasis[46]−Adjusteddilutednetincomepersharewas0.06 on a GAAP basis[46] - Adjusted diluted net income per share was 0.43, compared to 0.31inthepreviousyear[57]CashFlowandInvestments−Cashflowsfromoperatingactivitieswere0.31 in the previous year[57] Cash Flow and Investments - Cash flows from operating activities were 9.1 million, down from 11.3millionintheprioryearperiod[39]−Netcashprovidedbyoperatingactivitieswas11.3 million in the prior year period[39] - Net cash provided by operating activities was 9.1 million, compared to 11.3millioninthepreviousyear[60]−Netcashusedininvestingactivitieswas11.3 million in the previous year[60] - Net cash used in investing activities was 290.7 million, primarily due to acquisitions and marketable securities purchases[39] - Dayforce's cash, restricted cash, and equivalents stood at 4,899.2millionattheendofQ12024,comparedto4,899.2 million at the end of Q1 2024, compared to 5,341.4 million in Q1 2023[39] Guidance and Projections - Dayforce issued Q2 2024 guidance with total revenue expected to be 414millionto414 million to 419 million, a 13% to 15% increase year-over-year[20] - Full-year 2024 guidance projects total revenue of 1,730millionto1,730 million to 1,740 million, a 14% to 15% increase year-over-year[20] Adjusted Metrics and Margins - Adjusted EBITDA for Q1 2024 was 105.4million,representinga28.4105.4 million, representing a 28.4% margin[46] - Adjusted EBITDA for Q1 2024 was 129.9 million, representing a 30.1% margin[77] - Adjusted EBITDA was 129.9million,comparedto129.9 million, compared to 105.4 million[90] - Cloud recurring gross margin was 79.0%, compared to 77.3%[92] - Adjusted cloud recurring gross margin was 80.0%, compared to 78.7%[92] - Operating profit of 40.7million[90]−Adjustedoperatingprofitof40.7 million[90] - Adjusted operating profit of 109.1 million[90] Total Assets and Revenue Growth - Total assets increased to 10,775.2millionasofMarch31,2024,comparedto10,775.2 million as of March 31, 2024, compared to 9,010.9 million as of December 31, 2023[11] - Total Cloud recurring revenue grew by 23.0% to 363.2million,drivenbystrongperformanceinDayforceandPowerpaysegments[43]−Cloudrecurringrevenuewas363.2 million, driven by strong performance in Dayforce and Powerpay segments[43] - Cloud recurring revenue was 382.7 million, up from 317.9millioninthepreviousyear[81]Share−BasedCompensation−Share−basedcompensationexpensewas317.9 million in the previous year[81] Share-Based Compensation - Share-based compensation expense was 38.0 million, slightly lower than the $40.2 million recorded in Q1 2023[39] Corporate Developments - The company acquired eloomi A/S, a learning experience platform software provider[75] - Dayforce changed its legal name and brand from Ceridian HCM Holding Inc. to Dayforce, Inc., and its ticker symbol to "DAY"[75] - The company released its 2024 ESG Report, detailing its sustainability strategy across five pillars[75]