Ceridian(US:CDAY)2025-05-07 11:59Revenue and Customer Growth - Total revenue increased by $50.3 million, or 11.7%, to $481.8 million for Q1 2025 compared to $431.5 million for Q1 2024[124] - The number of live Dayforce customers increased by 5.4% to 6,929 at March 31, 2025, from 6,575 at March 31, 2024[124] - Dayforce recurring revenue per customer grew to $167,600 for the trailing twelve months ended March 31, 2025, compared to $150,362 for the same period in 2024[124] - Total revenue, excluding float, increased by 15.0% to $426.5 million for Q1 2025 compared to $370.8 million for Q1 2024[124] Profit and Income - Operating profit decreased by $9.7 million, or 23.8%, to $31.0 million for Q1 2025 compared to $40.7 million for Q1 2024[122] - Net income for Q1 2025 was $14.9 million, a 109.9% increase compared to $7.1 million for Q1 2024[122] - For the three months ended March 31, 2025, operating profit was $31.0 million, a decrease from $40.7 million for the same period in 2024[133] - Net income for the three months ended March 31, 2025, was $14.9 million, compared to $7.1 million for the same period in 2024, driven by increased revenue and lower interest expenses[138] - The net income for the same period was $14.9 million, resulting in a net income margin of 3.1%[157] - Adjusted net income for Q1 2025 was $46.0 million, with an adjusted net profit margin of 19.5%[157] Expenses and Costs - Costs of recurring services increased by $10.0 million, or 11.3%, for Q1 2025 compared to Q1 2024, primarily due to a $6.3 million increase in labor and employee benefit expenses[126] - Costs of professional services rose by $15.2 million, or 23.0%, for Q1 2025 compared to Q1 2024, mainly due to a $15.0 million increase in labor and benefit expenses[127] - General and administrative expenses increased by $15.1 million, or 27.0%, for the three months ended March 31, 2025, compared to the same period in 2024[131] - Selling and marketing expenses rose by $8.4 million, or 10.7%, for the three months ended March 31, 2025, compared to the same period in 2024[130] Cash Flow and Investments - Cash provided by operating activities was $49.6 million for the three months ended March 31, 2025, significantly up from $9.1 million in the same period of 2024[145] - Total cash, restricted cash, and equivalents at the end of the period was $3,473.0 million, down from $4,899.2 million at the end of March 31, 2024[144] - Investment in software development for the three months ended March 31, 2025, was $55.8 million, compared to $50.4 million in the same period of 2024[129] - Net cash used in investing activities was $120.1 million for the three months ended March 31, 2025, down from $290.7 million in the same period of 2024[146] - Net cash provided by financing activities was $288.6 million for the three months ended March 31, 2025, compared to $1,772.9 million in the same period of 2024[148] Margins and Ratios - For the three months ended March 31, 2025, the operating profit was $31.0 million with an operating profit margin of 6.4%[157] - Adjusted EBITDA for Q1 2025 was $80.9 million, with an adjusted EBITDA margin of 32.5%[157] - Free cash flow for Q1 2025 was $19.5 million, representing a free cash flow margin of 4.0%[160] - The company reported a diluted net income per share of $0.09 for Q1 2025, compared to $0.04 in Q1 2024[159] Future Expectations and Risks - The company expects to finalize the wind down of its pension plan in 2025, transferring associated liabilities to an insurance company[172] - A hypothetical 10% change in foreign currency exchange rates is not expected to materially affect the company's operational needs[164] - A 100 basis point decrease in market investment rates could result in approximately $27 million decrease in float revenue over the next twelve months[167] Performance Obligations - As of March 31, 2025, remaining performance obligations were approximately $1.28 billion, representing contracted revenue not yet recognized[150]