Ceridian(US:DAY)2025-08-06 11:18Revenue Growth - Total revenue increased by $41.4 million, or 9.8%, to $464.7 million for the three months ended June 30, 2025, compared to $423.3 million for the same period in 2024[128] - Total revenue increased by $91.7 million, or 10.7%, to $946.5 million for the six months ended June 30, 2025, compared to $854.8 million for the same period in 2024[145] - Total recurring services revenue reached $393.1 million, a 7.7% increase from $365.0 million in the same period in 2024[126] - Professional services revenue increased by $13.3 million, or 22.8%, to $71.6 million for the three months ended June 30, 2025[126] Customer Metrics - The number of live Dayforce customers increased by 4.9% to 6,984 at June 30, 2025, from 6,657 at June 30, 2024[128] - Dayforce recurring revenue per customer grew to $171,075 for the trailing twelve months ended June 30, 2025, compared to $154,998 for the comparable period in 2024[128] Profitability - Operating profit for the three months ended June 30, 2025, was $42.3 million, a 200% increase from $14.1 million in the same period in 2024[126] - Operating profit for the six months ended June 30, 2025, was $73.3 million, compared to $54.8 million for the same period in 2024, reflecting a 33.8% increase[155] - Net income for the three months ended June 30, 2025, was $21.3 million, compared to a net loss of $1.8 million for the same period in 2024, representing a 1283.3% increase[126] - Net income for the six months ended June 30, 2025, was $36.2 million, compared to a net income of $5.3 million for the same period in 2024, representing a 583.0% increase[143] Costs and Expenses - Costs of recurring services increased by $3.4 million, or 3.8%, primarily due to a $4.5 million rise in consulting and contract labor[130] - Total costs and expenses increased by $73.2 million, or 9.2%, for the six months ended June 30, 2025, compared to the same period in 2024[143] - General and administrative expenses increased by $15.0 million, or 13.0%, for the six months ended June 30, 2025, primarily due to an $18.1 million increase in labor and benefit expenses[153] Cash Flow and Liquidity - Cash and equivalents as of June 30, 2025, totaled $625.2 million, while total debt stood at $1,224.6 million[161] - Net cash provided by operating activities increased to $162.3 million for the six months ended June 30, 2025, compared to $108.3 million in the prior year[166] - Free cash flow for the three months ended June 30, 2025, was $87.1 million, with a free cash flow margin of 18.7%[186] - The company believes its cash flow from operations and available cash will be sufficient to meet liquidity needs for the next twelve months[164] Investment and Development - Investment in software development was $113.3 million for the six months ended June 30, 2025, compared to $105.9 million for the same period in 2024[150] - Capital expenditures for the six months ended June 30, 2025, included $47.8 million for software and technology[168] Tax and Other Expenses - The company incurred an income tax expense increase of $8.1 million for the six months ended June 30, 2025, primarily due to current operations[159] - Other expense, net, improved to $0.9 million for the six months ended June 30, 2025, compared to $12.0 million in the same period of 2024, largely due to foreign currency translation gains[158] Future Outlook and Risks - The company is closely monitoring changes in international trade relations and economic policies that could impact its operating results[117] - The company expects no material impact from a hypothetical 10% change in foreign currency exchange rates on its operations[189] - A 100 basis point decrease in market investment rates could result in approximately $27 million decrease in float revenue over the next twelve months[192] Pension Plan - The pension plan for certain U.S. employees was closed to new participants on January 2, 1995, and benefits were frozen as of December 31, 2007[196] - The company is finalizing the wind down of the pension plan, expecting to transfer associated liabilities to an insurance company by 2025[197] - Future pension benefit costs will depend on actual returns on plan assets and actuarial assumptions, with the effective discount rate for 2024 ranging from 5.06% to 5.35%[197] - The expected rate of return on plan assets for qualified pension benefits in 2025 is set at 5.10%[197]