Financial Data and Key Metrics Changes - Total revenue for the first quarter was $482 million, growing 14% on a constant currency basis, and 17% excluding float [8][18] - Dayforce recurring revenue, excluding float, was $323.1 million, up 14.4% on a GAAP basis and 15.9% on a constant currency basis [18] - Adjusted EBITDA margin was 32.5%, up 240 basis points year over year [8][18] - Free cash flow was $19.5 million, significantly up from negative $18.8 million last year, representing a free cash flow margin of 4% [18][20] Business Line Data and Key Metrics Changes - Professional services and other revenue was $71.3 million, up 46.1% on a GAAP basis and 49.8% on a constant currency basis [18] - Live customers on the Dayforce platform grew 5.4% to 6,029, and Dayforce recurring revenue per customer grew 11.5% to $167,600 [11] Market Data and Key Metrics Changes - The sales to existing customers grew 30% in the first quarter [10] - Bookings in Q1 were strong, expected to be up approximately 40% year over year [31] Company Strategy and Development Direction - The company continues to focus on simplifying HCM software stacks for clients, allowing them to reduce the number of applications from an average of 12 to a single Dayforce application [9] - A partnership with Microsoft was announced, placing Dayforce on the Azure marketplace, enhancing adoption for enterprise customers [11] - The company is seeing strong demand for its full suite solutions, with 50% of new deals including the complete Dayforce suite [32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales pipeline and project kickoffs, indicating a strong outlook for 2025 and 2026 [6][8] - Employment levels were in line with expectations, and customer retention rates are expected to remain stable [21] - The company anticipates three interest rate cuts in the U.S. in the latter half of the year, but maintains its full-year float revenue guidance [22][23] Other Important Information - The company announced a workforce reduction of approximately 5%, expecting $65 million in savings for 2025 and $80 million annualized [19] - A nonrecurring restructuring charge of $29.2 million was incurred in Q1, including severance and related costs [19][64] Q&A Session Summary Question: What are you hearing from your customers regarding HR and payroll projects? - Management reported strong bookings in Q1, with expectations for continued strength in April, indicating no impact from macroeconomic conditions [31] Question: How has demand strength in HRMS and payroll deals played out? - Management confirmed continued strong performance in the enterprise segment, including signing the largest deal ever with a government agency [37] Question: Can you discuss the cadence of total revenue growth? - Management noted expected deceleration in Q2 but anticipated a pickup in the second half due to seasonality and strong demand [40][42] Question: How are you seeing trends in industries affected by tariffs? - Management stated no impact from tariffs has been observed in the pipeline or employment levels [48] Question: Can you clarify the Government of Canada contract? - Management confirmed the extension of the contract with a dollar amount of $72 million for services over the next 15 months [50] Question: What factors could lead to achieving the high end of guidance? - Management indicated that strong bookings and go-lives earlier than expected could drive revenue higher [54] Question: How is the utilization of the Wallet product? - Management reported high utilization rates among unbanked employees, with an average of 25 uses per month [87] Question: How is the migration of customers from the APJ legacy business going? - Management noted aggressive migration efforts, with an average uplift of about 50% as customers transition to Dayforce [95] Question: What is the competitive landscape like? - Management highlighted improved win rates and market share growth, emphasizing the unique value proposition of their single database model [98]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $482 million, growing 14% on a constant currency basis and 11.7% on a GAAP basis [6][15] - Dayforce recurring revenue, excluding float, was $323.1 million, up 14.4% on a GAAP basis and 15.9% on a constant currency basis [16] - Adjusted EBITDA margin was 32.5%, up 240 basis points year over year [6][16] - Free cash flow was $19.5 million, significantly improved from negative $18.8 million last year [16][18] Business Line Data and Key Metrics Changes - Professional services and other revenue was $71.3 million, up 46.1% on a GAAP basis [16] - Live customers on the Dayforce platform grew 5.4% to 6,029 [10] - Dayforce recurring revenue per customer grew 11.5% to $167,600 [10] Market Data and Key Metrics Changes - The sales to existing customers grew 30% in Q1 [8] - Significant new business wins included contracts with major companies across various sectors, indicating healthy growth across segments and geographies [8][9] Company Strategy and Development Direction - The company continues to focus on simplifying HCM software stacks for clients, allowing them to reduce applications from an average of 12 to a single Dayforce application [7] - A partnership with Microsoft was announced, placing Dayforce on the Azure marketplace to enhance customer adoption [10] - The company is investing in AI capabilities, with 50% of new deals including the AI Copilot feature [11][68] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sales momentum and pipeline for 2025 and 2026, with bookings expected to be up approximately 40% year over year in the first half of 2025 [27][28] - Employment levels were in line with expectations, and customer retention rates are expected to remain stable [19][20] - The company anticipates three interest rate cuts in the U.S. in the latter half of the year, which may impact float revenue [20] Other Important Information - The company announced a workforce reduction of approximately 5% as part of an efficiency plan, expecting $65 million in savings for 2025 [17][60] - The Government of Canada signed a $72 million contract extension for digital services, indicating ongoing confidence in the project [47][81] Q&A Session Summary Question: What are you hearing from customers regarding HR and payroll projects? - Bookings in Q1 were strong, with expectations for the first half to be up approximately 40% year over year, indicating confidence in future performance [27][28] Question: How has demand strength in HRMS and payroll deals played out? - Demand remains strong, with significant deals signed in Q1, including the largest deal ever with a government agency [35][36] Question: Can you discuss the cadence of total revenue growth? - A deceleration in total revenue growth is expected in Q2, followed by a pickup in the second half due to seasonality and strong demand [38][39] Question: How are you seeing trends in industries affected by tariffs? - No impact from tariffs has been observed, and the pipeline remains healthy [45] Question: Can customers use Azure credits to purchase Dayforce? - Yes, customers can utilize their Azure credits for purchases, enhancing the partnership's value [45] Question: What is the expected utilization of the Wallet product? - High utilization rates are observed, particularly among unbanked employees, with an average of 25 uses per month [86] Question: How is the migration from the APJ legacy business to Dayforce progressing? - Migration is ongoing, with an expected uplift of about 50% as customers transition to the Dayforce platform [93][94] Question: What is the competitive landscape like? - The company has seen an increase in win rates, indicating strong product performance and market share growth [97][98]