Core Insights - Dayforce, Inc. has announced the rebranding of its payroll and HR management solution for SMEs to Powerpay by Dayforce, emphasizing a strategic shift to meet the evolving needs of over 46,000 clients across Canada [1][2][3] Company Overview - Dayforce is a global leader in human capital management technology, aiming to improve workplace life and assist thousands of clients and millions of employees worldwide [8] Industry Context - SMEs are a crucial driver of the Canadian economy, contributing billions to the GDP annually and representing nearly the entire business landscape [2] - Managing an SME has become increasingly complex due to hundreds of legislative changes each year, necessitating simple and reliable tools for compliance and payroll accuracy [2] Product Features - Powerpay is designed to simplify compliance, save time for business owners, and allow them to focus on their core operations [3] - The solution offers an intuitive user experience with enhanced features for time tracking and payroll, including a New Hire Assistant and mass self-service enrollment [4] Leadership Changes - Behrad Bayanpour has been appointed as the General Manager of Powerpay, overseeing sales, products, engineering, and services to drive the mission of providing reliable and compliant solutions for Canadian business owners [6] Client Testimonials - Clients like Apollo Property Management have praised Powerpay for transforming payroll management, highlighting its intuitive and scalable nature, which ensures accurate and timely payroll processing [5]

Core Insights - Dayforce, Inc. has rebranded its payroll and HR solution for Canadian small and mid-sized businesses (SMBs) as Powerpay by Dayforce, reflecting a strategic focus on meeting the needs of over 46,000 customers in Canada [1][3] Company Overview - Dayforce is a global leader in human capital management (HCM) technology, aiming to enhance work life for its customers and their employees [6] - The company offers a single AI-powered platform that integrates HR, Pay, Time, Talent, and Analytics, providing simplicity and scalability for organizations of all sizes [6] Industry Context - SMBs are crucial to Canada's economy, contributing billions to the GDP and representing a significant portion of the business landscape [2] - The complexity of running an SMB has increased due to numerous legislative changes, necessitating reliable tools for compliance and payroll management [2] Product Features - Powerpay is designed to simplify compliance and save time for business owners, allowing them to focus on their core operations [3] - Recent updates to Powerpay include enhanced time tracking, compensation features, a New Hire Wizard, and bulk self-service enrollment, aimed at improving efficiency and decision-making [3] Leadership and Growth - Behrad Bayanpour has been appointed General Manager of Powerpay, bringing a vision to advance the platform's mission of delivering reliable and compliant solutions [4] - The leadership emphasizes a commitment to empowering SMBs and fostering partnerships that drive growth and innovation [5]

Dayforce (DAY) Q1 2025 Earnings Call May 07, 2025 08:00 AM ET Company Participants David Niederman - VP - Investor RelationsDavid Ossip - Chairman, CEOJeremy Johnson - Executive VP & CFOSiti Panigrahi - Managing DirectorScott Berg - Managing DirectorMark Murphy - MD - Software ResearchKevin McVeigh - Managing DirectorSamad Samana - Managing DirectorRaimo Lenschow - Managing DirectorRyan Krieger - VP - Software Equity ResearchBrad Reback - Managing DirectorBhavin Shah - Director - Software Equity ResearchAll ...

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]