Ceridian(DAY) - 2020 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Ceridian reported a strong quarter with Dayforce recurring revenue ex float growing by 24.2% on a constant-currency basis [6] - Cloud recurring services gross margin increased by 140 basis points to 70.7%, and excluding float revenue, it expanded by 360 basis points [6] Business Line Data and Key Metrics Changes - Sales in the second quarter increased year over year, marking the best second quarter in the company's history [7] - The incremental revenue per new client increased by 68% in the quarter [12] Market Data and Key Metrics Changes - The company has seen a significant increase in attendance at virtual summits, doubling year over year [14] Company Strategy and Development Direction - The launch of Dayforce Wallet is progressing well, with over 40 customers piloting the product and more than 100 ready for implementation [7] - The company is confident in achieving record sales in the third quarter, aligning with pre-COVID-19 growth targets [14] Management's Comments on Operating Environment and Future Outlook - Management noted that while there were initial delays due to COVID-19, they are confident in the implementation pace and the ability to get customers live [21] - Retention rates have remained stable, with no material negative changes observed [22] Other Important Information - The company emphasized the importance of digital marketing, which has positively impacted their sales pipeline and momentum [15] Q&A Session Summary Question: Expectations for net new additions and customer size - Management indicated that the incremental revenue per new client has increased significantly, and they expect the trend to continue [12][13] Question: Competitive landscape and market commentary - Management expressed confidence in their competitive position and noted an acceleration in sales pipeline momentum [14][15] Question: Implementation pace and client behavior changes - Management reported that clients continue to go live, and while there were initial distractions due to COVID-19, they are optimistic about future implementations [20][21] Question: Retention rates and changes - Management confirmed that retention has been very sticky, with no notable changes in enterprise departures [22]