Ceridian(US:CDAY)2025-05-07 11:11Revenue Performance - Dayforce's recurring revenue, excluding float, reached $323 million, an increase of 14%, or 16% on a constant currency basis[2] - Total revenue was $482 million, up 12%, and excluding float, it increased by 15%, or 17% on a constant currency basis[2] - Total revenue for Q1 2025 was $481.8 million, representing an 11.7% increase compared to $431.5 million in Q1 2024[27] - Recurring services revenue increased to $410.5 million, up 7.3% from $382.7 million in the same period last year[30] - The company plans to achieve total revenue of $1,929 million to $1,944 million for the full year 2025, representing an increase of approximately 12.1% to 13.1% on a GAAP basis[11] Customer Metrics - The number of customers live on the Dayforce platform increased by 5.4% year-over-year to 6,929[7] - Dayforce recurring revenue per customer was $167,600 for the trailing twelve months, an increase of 11.5%[7] Profitability and Cash Flow - Net income for Q1 2025 was $14.9 million, compared to $7.1 million in Q1 2024, reflecting a significant increase[27] - Operating profit decreased to $31.0 million from $40.7 million year-over-year, indicating a decline in operational efficiency[27] - Cash flows from operating activities improved to $49.6 million, up from $9.1 million in Q1 2024[29] - Free cash flow for Q1 2025 was $19.5 million, with a free cash flow margin of 4.0%, while in Q1 2024, free cash flow was negative at $(18.8) million, reflecting a margin of (4.4)%[38] - The guidance for free cash flow for the twelve months ending December 31, 2025, is projected to be between $229 million and $234 million, with free cash flow margins expected to be between 11.9% and 12.1%[38] Balance Sheet Highlights - Total assets increased to $9,499.5 million as of March 31, 2025, compared to $9,117.0 million at the end of 2024[25] - Total liabilities rose to $6,907.4 million, up from $6,570.7 million at the end of 2024[25] - Customer funds obligations increased to $5,361.8 million, compared to $5,024.2 million at the end of 2024[25] - Total stockholders' equity rose to $2,592.1 million, up from $2,546.3 million at the end of 2024[25] Operational Efficiency - For the three months ended March 31, 2025, Dayforce reported an operating profit of $31.0 million, representing a margin of 6.4%, compared to an operating profit of $40.7 million and a margin of 9.4% for the same period in 2024[36] - Dayforce's adjusted operating profit for Q1 2025 was $132.3 million, with an adjusted operating profit margin of 27.5%, compared to $109.1 million and 25.3% in Q1 2024[36] - Dayforce's EBITDA for Q1 2025 was $80.9 million, with an EBITDA margin of 32.5%, compared to $80.5 million and a margin of 30.1% in Q1 2024[36] Strategic Initiatives - Dayforce announced an expanded partnership with Microsoft, making the Dayforce platform available in the Microsoft Azure Marketplace[13] - The company introduced several new features, including Dayforce AI Assistant and enhanced mobile capabilities for talent management[13] Restructuring and Expenses - The company incurred $26.6 million in restructuring expenses in Q1 2025, impacting adjusted operating profit and net income[36]