Dayforce Reports First Quarter 2025 Results¹

Core Insights - Dayforce, Inc. reported strong financial results for Q1 2025, with total revenue of $481.8 million, representing an increase of 11.7% year-over-year, or 13.6% on a constant currency basis [6][9] - The company's recurring revenue, excluding float, was $323.1 million, up 14.4% year-over-year, or 15.9% on a constant currency basis [6][29] - Dayforce's net income for the quarter was $14.9 million, compared to $7.1 million in the previous year, reflecting a net profit margin increase to 3.1% from 1.6% [6][23] Financial Performance - Total revenue of $481.8 million, up 11.7%, or 13.6% on a constant currency basis [6][29] - Recurring revenue, excluding float, was $323.1 million, an increase of 14.4%, or 15.9% on a constant currency basis [6][29] - Operating profit was $31.0 million, down from $40.7 million, while adjusted operating profit rose to $132.3 million from $109.1 million [6][23] - Adjusted EBITDA was $156.7 million, compared to $129.9 million, with an adjusted EBITDA margin of 32.5% [6][23] Cash Flow and Shareholder Returns - Net cash provided by operating activities was $49.6 million, significantly up from $9.1 million in the prior year [6][25] - Free cash flow for the quarter was $19.5 million, compared to a negative $18.8 million in the previous year [6][39] - The company repurchased approximately $30 million worth of shares during the quarter under its $500 million repurchase program, returning over $66 million of capital to stockholders to date [3][6] Customer Growth and Market Position - As of March 31, 2025, Dayforce had 6,929 customers live on its platform, a 5.4% increase year-over-year [6][29] - Dayforce recurring revenue per customer was $167,600 for the trailing twelve months, an increase of 11.5% [6][29] - The company announced an expanded partnership with Microsoft, making its platform available in the Microsoft Azure Marketplace [12] Business Outlook - Dayforce provided guidance for Q2 2025, projecting total revenue of $454 million to $460 million, and full-year revenue of $1,929 million to $1,944 million [13][14] - The company anticipates continued growth in recurring revenue, with expectations of an increase of approximately 12.1% to 13.1% on a GAAP basis for the full year [13][14]