Ceridian(CDAY) - 2024 Q4 - Annual Results

Revenue Performance - Dayforce recurring revenue for Q4 2024 reached $347.9 million, a 19% increase year-over-year[1] - Total revenue for Q4 2024 was $465.2 million, up 16% year-over-year, or 17% on a constant currency basis[4] - Total revenue for the year ended December 31, 2024, was $1,760.0 million, representing a 16.3% increase from $1,513.7 million in 2023[39] - Dayforce recurring revenue, excluding float, increased by 20.4% to $1,159.7 million in 2024 from $962.9 million in 2023[39] - Total recurring revenue for the year ended December 31, 2024, was $1,517.3 million, a 17.0% increase from $1,297.3 million in 2023[39] - Professional services and other revenue for the year ended December 31, 2024, was $242.7 million, up from $216.4 million in 2023, reflecting a 12.2% increase[41] Financial Metrics - Adjusted EBITDA for Q4 2024 was $129.2 million, with an adjusted EBITDA margin of 27.8%, up 3 percentage points year-over-year[4] - Adjusted EBITDA margin is anticipated to be between 31% and 32%[22] - The EBITDA for Q4 2024 was $66.6 million, reflecting a margin of 27.8%[46] - The EBITDA for the year ended December 31, 2024, was $288.0 million, with a margin of 28.5%[53] - Free cash flow margin is reported at 12%[22] - The net income for the year 2024 was $18.1 million, resulting in a net profit margin of 1.0%[53] Cash Flow and Operating Activities - Full year 2024 net cash provided by operating activities was $281.1 million, an increase of 28% compared to the previous year[4] - For Q4 2024, Dayforce reported net cash provided by operating activities of $81.0 million, a decrease of 9.8% from $89.9 million in Q4 2023[59] - Free cash flow for Q4 2024 was $54.2 million, down 15.0% from $63.8 million in Q4 2023, with a free cash flow margin of 11.7% compared to 16.0% in the previous year[59] - For the year ended December 31, 2024, Dayforce's free cash flow was $171.5 million, an increase of 63.0% from $105.1 million in 2023[59] - Dayforce projects free cash flow for the year ending December 31, 2025, to be between $229 million and $234 million[59] Assets and Liabilities - The company has a total of $9,117 million in assets as of December 31, 2024, compared to $9,010.9 million in 2023[29] - Total liabilities amount to $6,570.7 million, a slight decrease from $6,612.7 million in the previous year[29] - The company’s goodwill increased to $2,336.7 million from $2,293.9 million year-over-year[29] Strategic Initiatives and Market Position - The company launched its first mass advertising campaign across the U.S. and introduced the Dayforce Partner Network[13] - Dayforce achieved a record attendance at its annual customer conference, Dayforce Discover 2024, in Las Vegas[13] - The forward-looking statements indicate expectations for continued growth initiatives and market expansion, with potential risks outlined[24][26] Adjustments and Non-GAAP Measures - The adjustments to net income for Q4 2024 included a $17.1 million foreign exchange loss and $3.2 million related to the termination of a frozen U.S. pension plan[47] - The adjustments to operating profit for the year 2024 included $19.8 million of restructuring expenses and $9.0 million related to fair value adjustments[53] - Dayforce utilizes non-GAAP financial measures such as Adjusted EBITDA and Free Cash Flow to assess operational performance and liquidity[61] - The company emphasizes the importance of free cash flow as a measure of liquidity for strategic opportunities[61] - Dayforce's Cloud annualized retention rate and recurring revenue per customer are important metrics but lack directly comparable GAAP measures[63]