Ceridian(US:DAY)2025-05-07 11:59Revenue and Customer Growth - Total revenue increased by $50.3 million, or 11.7%, to $481.8 million for the three months ended March 31, 2025, compared to $431.5 million for the same period in 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 comparable period in 2024[124] Expenses and Profitability - Costs of recurring services increased by $10.0 million, or 11.3%, primarily due to a $6.3 million increase in labor and employee benefit expenses[126] - Costs of professional services increased by $15.2 million, or 23.0%, primarily due to a $15.0 million increase in labor and benefit expenses[127] - Operating profit decreased by $9.7 million, or 23.8%, to $31.0 million for the three months ended March 31, 2025[122] - Operating profit for the three months ended March 31, 2025, was $31.0 million, down from $40.7 million in the prior year, as revenue growth was offset by higher labor and benefits expenses[133] - 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, primarily due to increased labor and benefit expenses[130] Net Income and Cash Flow - Net income increased by $7.8 million, or 109.9%, to $14.9 million for the three months ended March 31, 2025[122] - For the three months ended March 31, 2025, net income was $14.9 million, an increase from $7.1 million for the same period in 2024, primarily due to 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] - Net cash provided by operating activities increased to $49.6 million for the three months ended March 31, 2025, compared to $9.1 million for the same period in 2024[145] - Free cash flow for Q1 2025 was $19.5 million, representing a free cash flow margin of 4.0%[160] Debt and Cash Position - The company had total debt of $1,226.4 million as of March 31, 2025[139] - 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] - Net cash used in investing activities was $120.1 million for the three months ended March 31, 2025, compared to $290.7 million in the same period of 2024[146] Adjusted Metrics - Adjusted EBITDA for Q1 2025 was $80.9 million, with an adjusted EBITDA margin of 32.5%[157] - The company reported a diluted net income per share of $0.09 for Q1 2025, compared to $0.04 in Q1 2024[159] - Adjustments to operating profit for Q1 2025 included $26.6 million in restructuring expenses[161] Performance Obligations and Pension - Remaining performance obligations as of March 31, 2025, were approximately $1.28 billion, representing contracted revenue not yet recognized[150] - The effective discount rate for pension obligations in 2024 ranged from 5.06% to 5.35%[172] - The expected rate of return on plan assets for qualified pension benefits in 2025 is 5.10%[172] Foreign Currency Impact - The company does not anticipate a material impact from a hypothetical 10% change in foreign currency exchange rates[164]