Ceridian(US:DAY)2025-05-07 11:11Financial Performance - Dayforce's total revenue for Q1 2025 was $481.8 million, an increase of 11.7% year-over-year, or 13.6% on a constant currency basis[7]. - Recurring revenue, excluding float, reached $323.1 million, up 14.4% year-over-year, or 15.9% on a constant currency basis[7]. - Net income for the quarter was $14.9 million, compared to $7.1 million in the previous year, resulting in a net profit margin of 3.1%[7]. - Adjusted EBITDA was $156.7 million, with an adjusted EBITDA margin of 32.5%, compared to 30.1% in the prior year[7]. - Operating cash flow was $49.6 million, significantly up from $9.1 million, leading to an operating cash flow margin of 10.3%[7]. - Total revenue for Q1 2025 was $481.8 million, representing an 11.7% increase compared to $431.5 million in Q1 2024[27]. - Net income for Q1 2025 was $14.9 million, compared to $7.1 million in Q1 2024, marking a significant increase[27]. - 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 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]. - The adjusted net income for Q1 2025 was $28.7 million, with an adjusted net profit margin of 19.5%, while in Q1 2024, adjusted net income was $68.0 million, reflecting a margin of 15.8%[36]. Customer Metrics - Dayforce had 6,929 customers live on its platform as of March 31, 2025, reflecting a 5.4% year-over-year increase[7]. - Recurring services revenue increased to $410.5 million, up 7.3% from $382.7 million year-over-year[30]. - Dayforce's recurring revenue per customer is a key metric, although specific figures were not disclosed in the provided content[44]. Cash Flow and Guidance - Dayforce's free cash flow margin is projected to be 12% for FY 2025[14]. - 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 a free cash flow margin expected between 11.9% and 12.1%[38]. - Free cash flow for the three months ended March 31, 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[38]. - The company reported a net cash provided by operating activities of $49.6 million for Q1 2025, compared to $9.1 million in Q1 2024[29]. - Dayforce's net cash provided by operating activities for Q1 2025 was $49.6 million, significantly higher than $9.1 million in Q1 2024[38]. Expenses and Liabilities - The company incurred $26.6 million in restructuring expenses for Q1 2025, impacting adjusted operating profit and net income[36]. - Share-based compensation expense increased to $46.0 million in Q1 2025 from $38.0 million in Q1 2024[34]. - Total assets increased to $9,499.5 million as of March 31, 2025, up from $9,117.0 million at the end of 2024[25]. - Total liabilities rose to $6,907.4 million in Q1 2025, compared to $6,570.7 million in Q4 2024[25]. - Cash and equivalents at the end of Q1 2025 were $557.3 million, a decrease from $579.7 million at the end of 2024[25]. Partnerships and Future Outlook - Dayforce announced an expanded partnership with Microsoft, making its platform available in the Microsoft Azure Marketplace[13]. - The company expects continued growth in recurring services and professional services, with a focus on expanding market presence and product development[30]. - The company plans to achieve total revenue guidance of $1,929 million to $1,944 million for FY 2025, representing a 12.1% to 13.1% increase on a GAAP basis[11]. Interest Expense - Dayforce's interest expense for Q1 2025 was $7.9 million, compared to $13.3 million in Q1 2024[36].