Ceridian(US:CDAY)2022-11-01 16:00Customer Engagement and Growth - As of September 30, 2022, Dayforce Wallet had over 1,340 customers signed on, with more than 750 customers live on the product, and an average registration rate of 45% of all eligible employees [143]. - The number of live Dayforce customers increased by 11.9% to 5,848 at September 30, 2022, from 5,227 at September 30, 2021 [163]. - Dayforce recurring revenue per customer grew to $118,348 for the trailing twelve months ended September 30, 2022, compared to $107,576 for the comparable period in 2021 [163]. Financial Performance - Total revenue increased by $58.4 million, or 22.7%, to $315.6 million for the three months ended September 30, 2022, compared to $257.2 million for the same period in 2021 [163]. - Total revenue increased by $168.0 million, or 22.6%, to $910.1 million for the nine months ended September 30, 2022, compared to $742.1 million for the same period in 2021 [188]. - Adjusted EBITDA was $63.5 million, a 61.2% increase from $39.4 million in the same quarter of the previous year [161]. - Adjusted EBITDA increased by $58.9 million to $182.7 million for the nine months ended September 30, 2022, with an Adjusted EBITDA margin of 20.1%, up from 16.7% in 2021 [204]. Revenue and Cost Analysis - Total cost of revenue was $196.6 million, an increase of $32.5 million or 19.8% from $164.1 million in the previous year [163]. - Total cost of revenue for the nine months ended September 30, 2022, was $572.0 million, an increase of $108.3 million, or 23.4%, compared to the same period in 2021 [191]. - Gross profit for the period was $119.0 million, up from $93.1 million, reflecting a 27.8% increase [163]. - Gross profit increased by $59.7 million, or 21.4%, for the nine months ended September 30, 2022, primarily due to the $168.0 million increase in revenue [195]. Investment and Development - The company completed the acquisition of Ascender HCM Pty Limited for $359.6 million and O5 Systems, Inc. for $41.4 million in 2021, expanding its capabilities in the APJ region and talent intelligence software [149][150]. - Investment in software development for Q3 2022 was $42.0 million, up from $35.1 million in Q3 2021 [168]. - Investment in software development was $118.2 million for the nine months ended September 30, 2022, compared to $94.4 million for the same period in 2021 [192]. Cash Flow and Liquidity - As of September 30, 2022, the company had cash and equivalents of $408.4 million and total debt of $1,236.6 million [205]. - Net cash provided by operating activities was $90.8 million for the nine months ended September 30, 2022, compared to $48.9 million for the same period in 2021 [218]. - The company anticipates that its cash flow from operations and available cash will be sufficient to meet liquidity needs for the foreseeable future [213]. Loss and Expenses - Net loss for the period was $21.0 million, slightly higher than the net loss of $20.9 million in the prior year [163]. - For the nine months ended September 30, 2022, the company recorded a net loss of $68.2 million, compared to a net loss of $65.9 million for the same period in 2021, resulting in a net profit margin of (7.5)% versus (8.9)% in 2021 [203]. - Selling, general, and administrative expenses increased by $13.6 million for Q3 2022, primarily due to employee-related costs [175]. Market and Economic Factors - The average U.S. dollar to Canadian dollar foreign exchange rate was $1.30 for the three months ended September 30, 2022, compared to $1.26 for the same period in 2021 [157]. - A hypothetical 10% change in foreign currency exchange rates is not expected to materially affect the company's operational needs or result in a material foreign currency loss in the future [252]. - A 100 basis point increase in market investment rates would result in approximately $24 million increase in float revenue over the ensuing twelve-month period [255].