Dayforce Reports Second Quarter 2024 Results¹
Dayforce reported strong Q2 2024 results, with Dayforce recurring revenue up 20% to $321.6 million and total revenue up 16% to $423.3 million. Year-to-date net cash from operations increased 16% to $108.3 million. Key highlights include:
- Cloud recurring gross margin improved to 77.7%
- Adjusted EBITDA rose to $116.3 million from $98.4 million
- 6,657 customers now live on Dayforce platform, up 6.1% YoY
- Average float balance of $4.74 billion with 4.1% yield
The company announced a $500 million share repurchase program and plans to host its first Investor Day on November 12, 2024. Dayforce also expanded its global advisory partner ecosystem and launched new product capabilities including AI enhancements and Dayforce Payroll in Singapore.
Dayforce ha riportato risultati solidi per il secondo trimestre del 2024, con le entrate ricorrenti di Dayforce aumentate del 20% a 321,6 milioni di dollari e le entrate totali aumentate del 16% a 423,3 milioni di dollari. L'utile netto da operazioni dall'inizio dell'anno è aumentato del 16%, raggiungendo i 108,3 milioni di dollari. I principali punti salienti includono:
- Il margine lordo ricorrente del cloud è migliorato al 77,7%
- L'EBITDA rettificato è aumentato a 116,3 milioni di dollari rispetto ai 98,4 milioni di dollari
- 6.657 clienti ora attivi sulla piattaforma Dayforce, in aumento del 6,1% su base annua
- Saldo medio fluttuante di 4,74 miliardi di dollari con un rendimento del 4,1%
L'azienda ha annunciato un programma di riacquisto di azioni da 500 milioni di dollari e prevede di ospitare il suo primo Investor Day il 12 novembre 2024. Dayforce ha anche ampliato il suo ecosistema di partner di consulenza globale e ha lanciato nuove capacità di prodotto, inclusi miglioramenti AI e il Dayforce Payroll a Singapore.
Dayforce reportó resultados sólidos para el segundo trimestre de 2024, con los ingresos recurrentes de Dayforce aumentando un 20% a 321,6 millones de dólares y los ingresos totales aumentando un 16% a 423,3 millones de dólares. El flujo de caja neto de las operaciones hasta la fecha ha aumentado un 16% a 108,3 millones de dólares. Los puntos destacados clave incluyen:
- El margen bruto recurrente en la nube mejoró al 77,7%
- El EBITDA ajustado aumentó a 116,3 millones de dólares desde 98,4 millones de dólares
- 6,657 clientes ahora están activos en la plataforma Dayforce, un aumento del 6,1% interanual
- Saldo promedio flotante de 4,74 mil millones de dólares con un rendimiento del 4,1%
La compañía anunció un programa de recompra de acciones de 500 millones de dólares y planea celebrar su primer Día del Inversionista el 12 de noviembre de 2024. Dayforce también amplió su ecosistema de socios de asesoría global y lanzó nuevas capacidades de producto, incluidos mejoras en IA y Dayforce Payroll en Singapur.
데이포스는 2024년 2분기 강력한 실적을 보고했으며, 데이포스의 반복 수익이 20% 증가하여 3억 2,160만 달러에 달하고 총 수익이 16% 증가하여 4억 2,330만 달러에 달했습니다. 연초부터 현재까지 운영에서 발생한 순 현금은 16% 증가하여 1억 830만 달러에 이릅니다. 주요 하이라이트는 다음과 같습니다:
- 클라우드 반복 총 이익률이 77.7%로 개선되었습니다.
- 조정된 EBITDA가 9840만 달러에서 1억 1,630만 달러로 증가했습니다.
- 현재 6,657명의 고객이 데이포스 플랫폼에서 활동 중이며, 전년 대비 6.1% 증가했습니다.
- 47억 4천만 달러의 평균 유동 잔액과 4.1%의 수익률
회사는 5억 달러 규모의 자사주 매입 프로그램을 발표했으며, 2024년 11월 12일 첫 투자자 데이를 개최할 계획입니다. 데이포스는 또한 글로벌 자문 파트너 생태계를 확장하고 싱가포르에서 AI 향상 및 데이포스 급여를 포함한 새로운 제품 기능을 출시했습니다.
Dayforce a rapporté de bons résultats pour le deuxième trimestre 2024, avec une augmentation de 20% des revenus récurrents de Dayforce atteignant 321,6 millions de dollars et une augmentation de 16% du revenu total à 423,3 millions de dollars. Le flux de trésorerie net des opérations depuis le début de l'année a augmenté de 16% pour atteindre 108,3 millions de dollars. Les points forts comprennent :
- La marge brute récurrente dans le cloud a amélioré à 77,7%
- L'EBITDA ajusté a augmenté pour atteindre 116,3 millions de dollars contre 98,4 millions de dollars
- 6 657 clients sont maintenant actifs sur la plateforme Dayforce, en hausse de 6,1% d'une année sur l'autre
- Un solde flot moyen de 4,74 milliards de dollars avec un rendement de 4,1%
La société a annoncé un programme de rachat d'actions de 500 millions de dollars et prévoit d'organiser son premier Investor Day le 12 novembre 2024. Dayforce a également élargi son écosystème de partenaires de conseil mondial et lancé de nouvelles fonctionnalités produit, y compris des améliorations basées sur l'IA et Dayforce Payroll à Singapour.
Dayforce berichtete über starke Ergebnisse für das zweite Quartal 2024, mit einer Steigerung des wiederkehrenden Umsatzes von Dayforce um 20% auf 321,6 Millionen Dollar und einer Gesamtumsatzsteigerung um 16% auf 423,3 Millionen Dollar. Der Nettogeldfluss aus laufenden Betrieben stieg im bisherigen Jahresverlauf um 16% auf 108,3 Millionen Dollar. Zu den wichtigsten Highlights gehören:
- Die wiederkehrende Bruttomarge in der Cloud verbesserte sich auf 77,7%
- Das bereinigte EBITDA stieg von 98,4 Millionen Dollar auf 116,3 Millionen Dollar
- 6.657 Kunden sind jetzt aktiv auf der Dayforce-Plattform, ein Anstieg von 6,1% im Jahresvergleich
- Durchschnittlicher Schwankungsbestand von 4,74 Milliarden Dollar mit einer Rendite von 4,1%
Das Unternehmen kündigte ein Aktienrückkaufprogramm in Höhe von 500 Millionen Dollar an und plant, am 12. November 2024 seinen ersten Investorentag abzuhalten. Dayforce hat auch sein globales Beratungspartner-Ökosystem erweitert und neue Produktfähigkeiten eingeführt, einschließlich KI-Enhancements und Dayforce Payroll in Singapur.
- Dayforce recurring revenue grew 20% to $321.6 million
- Total revenue increased 16% to $423.3 million
- Year-to-date net cash from operations up 16% to $108.3 million
- Cloud recurring gross margin improved to 77.7% from 76.7%
- Adjusted EBITDA increased to $116.3 million from $98.4 million
- Customer base grew 6.1% year-over-year to 6,657 live on Dayforce platform
- Announced $500 million share repurchase program
- Expanded global advisory partner ecosystem with 11 new partners
- Launched new product capabilities including AI enhancements and Dayforce Payroll in Singapore
- Operating profit decreased to $14.1 million from $29.4 million
- Net loss of $1.8 million compared to net income of $3.1 million in previous year
- Diluted net loss per share of $0.01 compared to diluted net income per share of $0.02 in previous year
Insights
Dayforce's Q2 2024 results demonstrate robust growth and improved profitability, signaling strong market positioning in the HCM technology sector. Key highlights include:
- Dayforce recurring revenue grew
19.9% to$321.6 million - Total revenue increased
15.7% to$423.3 million - Adjusted EBITDA rose to
$116.3 million , up from$98.4 million - Free cash flow for H1 2024 improved to
$53.9 million , up from$36.5 million
The company's focus on cloud-based solutions is paying off, with cloud recurring gross margin expanding to
However, it's worth noting the net loss of
The company's guidance for Q3 and full-year 2024 suggests continued strong performance, with total revenue expected to grow
Dayforce's Q2 results underscore its growing prominence in the HCM technology landscape. The company's strategic focus on innovation and AI integration is evident in several key developments:
- Launch of Dayforce Co-Pilot with enhanced AI capabilities, including Retrieval-Augmented Generation for document processing
- Introduction of Dayforce Flex Work, an on-demand marketplace for contingent workforce management
- Expansion of Dayforce Integration Studio with new pre-built connectors
- Launch of Dayforce Partner Exchange, facilitating access to vetted system integrators and technology providers
These advancements position Dayforce at the forefront of AI-driven HCM solutions, addressing critical needs in workforce management, talent acquisition and system integration. The company's ability to deliver over 200 compliance updates in H1 2024 demonstrates its agility in adapting to regulatory changes, a important factor for global HCM providers.
The milestone of
The expansion into Singapore's payroll market opens up new growth opportunities in the Asia-Pacific region, potentially driving future revenue growth. However, Dayforce will need to navigate complex regulatory environments and compete with established local providers to gain market share in this region.
Dayforce's Q2 2024 results and strategic initiatives reveal several key market trends in the HCM technology sector:
- Growing demand for AI-powered HCM solutions, as evidenced by the enhancements to Dayforce Co-Pilot
- Increasing importance of flexible work arrangements and contingent workforce management, addressed by Dayforce Flex Work
- Rising adoption of on-demand pay solutions, highlighted by the success of Dayforce Wallet
- Continued global expansion of HCM providers, exemplified by Dayforce's entry into the Singapore payroll market
The company's success in attracting large, multinational clients across diverse industries (e.g., government, agribusiness, hospitality, entertainment) suggests a broad market appeal for comprehensive HCM solutions. The average Dayforce recurring revenue per customer of
Dayforce's recognition in various industry rankings (e.g., The Hackett Group's Digital World Class Matrix™, PEAK Matrix® Assessment, Nucleus Research WFM Technology Value Matrix) reinforces its competitive position in the market. The company's focus on sustainability, as evidenced by its top rankings in climate leadership and sustainability lists, aligns with growing investor and customer interest in ESG factors.
The upcoming Investor Day in November 2024 could be a catalyst for the stock, as it promises to provide insights into the company's long-term strategy and financial model. However, investors should monitor the competitive landscape closely, as the HCM technology market remains highly dynamic with potential for disruptive innovations from both established players and new entrants.
Dayforce® recurring revenue of
Total revenue of
Year-to-date net cash provided by operating activities of
MINNEAPOLIS and TORONTO, July 31, 2024 (GLOBE NEWSWIRE) -- Dayforce, Inc. ("Dayforce" or the "Company") (NYSE:DAY) (TSX:DAY), a global leader in human capital management ("HCM") technology, today announced its financial results for the second quarter ended June 30, 2024.
“Our business momentum continued in the second quarter of 2024, with Dayforce recurring revenue up
“Our strong results are translating into improved cash flow generation, prompting our Board of Directors to approve a
Financial Highlights for the Second Quarter 20241
- Total revenue was
$423.3 million , an increase of15.7% , or16.3% on a constant currency basis. - Dayforce recurring revenue was
$321.6 million , an increase of19.9% , or20.4% on a constant currency basis. Excluding float revenue, Dayforce recurring revenue was$277.7 million , an increase of20.1% , or20.5% on a constant currency basis. - Cloud recurring gross margin was
77.7% , compared to76.7% . Adjusted cloud recurring gross margin was78.8% , compared to78.1% . - Operating profit was
$14.1 million compared to$29.4 million . Adjusted operating profit was$94.9 million compared to$83.0 million . - Net loss was
$1.8 million , compared to net income$3.1 million . Adjusted net income was$76.2 million , compared to$50.8 million . - Adjusted EBITDA was
$116.3 million , compared to$98.4 million . - Diluted net loss per share was
$0.01 , compared to diluted net income per share of$0.02 . Adjusted diluted net income per share was$0.48 , compared to$0.32 . - Net cash provided by operating activities for the six months ended June 30, 2024 was
$108.3 million , compared to$93.0 million for the six months ended June 30, 2023. Free cash flow for the six months ended June 30, 2024 was$53.9 million , compared to$36.5 million for the six months ended June 30, 2023.
Supplemental Detail
- 6,657 customers were live on the Dayforce platform as of June 30, 2024, an increase of 82 customers since March 31, 2024 and an increase of 385 customers since June 30, 2023, or
6.1% year-over-year.2 - Dayforce recurring revenue per customer was
$154,998 for the trailing twelve months ended June 30, 2024, an increase of17.7% .3 - The average float balance for Dayforce's customer funds during the quarter was
$4.74 billion and the average yield on Dayforce's float balance was4.1% , an increase of 45 basis points year-over-year. Float revenue from invested customer funds was$48.9 million for the three months ended June 30, 2024. - The average U.S. dollar to Canadian dollar foreign exchange rate was
$1.37 for the three months ended June 30, 2024, compared to$1.34 for the three months ended June 30, 2023. Dayforce presents percentage change in revenue on a constant currency basis in order to exclude the effect of foreign currency rate fluctuations, which it believes is useful to management and investors. Percentage change in revenue was calculated on a constant currency basis by applying the average foreign exchange rate in effect during the comparable prior period.
1 The financial highlights are on a year-over-year basis, unless otherwise stated. All financial results are reported in United States ("U.S.") dollars and in accordance with accounting principles generally accepted in the U.S. ("GAAP"), unless otherwise stated.
2 Excluding Ascender, ADAM HCM, and eloomi.
3 Excluding float revenue, Ascender, ADAM HCM, and eloomi revenue, and on a constant currency basis. Please refer to the “Non-GAAP Financial Measures” section for discussion of percentage change in revenue on a constant currency basis.
Business Highlights
In the second quarter, Dayforce:
- Placed highest on the value realization axis within The Hackett Group’s inaugural Digital World Class Matrix™, and was named a Leader in both the PEAK Matrix® Assessment 2024 for People Analytics, and the Nucleus Research WFM Technology Value Matrix 2024.
- Ranked #1 on USA TODAY's list of America's Climate Leaders 2024, recognized on TIME’s list of World’s Most Sustainable Companies, and named a LinkedIn Top Company in Technology and Information.
- Launched the Dayforce 2024 ESG Report, Impact through Innovation, highlighting company performance across five sustainability pillars: Our People, Governance and Trust, Tech for Good, Our Communities, and the Environment.
- Expanded our global advisory partner ecosystem significantly by adding 11 new partners.
- Hosted two Summits, in Dallas in April and Chicago in June, and announced its next Summit in New York City on August 21.
- Celebrated global volunteer month where Daymakers from five continents contributed nearly 10,000+ hours of volunteer time.
Sales Highlights
- The Government of Canada is expanding the scope of its Dayforce usage to include an additional 30,000 users for Dayforce HR, Payroll, Workforce Management, Talent, and more.
- A global agribusiness and food company with more than 20,000 employees selected Dayforce Managed Payroll and Benefits, Workforce Management, Wallet, and Dayforce Industry Solutions, for its 5,000 U.S. and Canadian employees.
- A family of independent hospitality brands based in the United Kingdom ("U.K.") with more than 20,000 employees chose the full Dayforce suite to be used across its employee population in the U.K. and Ireland.
- A multi-national entertainment company purchased Dayforce Pay and Time for its 9,000 U.S. and Canadian employees.
- A global food supplier selected Dayforce Workforce Management and Advanced Scheduling for 7,300 employees, and Dayforce Global Payroll, Workforce Management, and Advanced Scheduling for an additional 2,500 employees.
- An Australian utilities organization chose the full Dayforce suite to support its 7,000 employees.
- A diverse portfolio of world-class fashion brands purchased the full Dayforce suite to support its 6,100 global employees across 28 countries.
- A global manufacturer of highly engineered equipment selected Dayforce Payroll to support its global workforce of over 5,000 employees across more than 30 countries.
- A 5,000 person U.S. government services contractor chose the full Dayforce suite for its employees in the U.S., U.K., Germany, and the United Arab Emirates.
- A U.S. dairy cooperative has purchased the full Dayforce suite, including Dayforce Learning, for its 1,400 employees.
Customer Highlights
- A multi-national government consulting firm is now live on Dayforce Payroll, HR, and Time for all 39,000 employees in the U.S., U.K., Canada, Netherlands, Germany, Singapore, and Saudi Arabia.
- A global e-commerce company with over 7,000 employees has gone live on Dayforce Payroll and Workforce Management for its U.S. employee population.
- A U.K. seller of new and used cars went live with the full Dayforce platform to its 6,000 employees.
- A U.S. regional airline that flies into more than 100 cities across North America implemented the full Dayforce suite for its 5,000 employees.
- A U.S. based transportation services company went live on Dayforce HR, Recruiting, and Onboarding for 4,500 employees as phase one of its two-phased deployment.
- A health-conscious restaurant chain with more than 3,500 U.S. employees went live with the full Dayforce suite.
- A large U.S. healthcare system deployed the full Dayforce suite to 2,000 of its U.S. employees.
- A North American engineering and manufacturing company has gone live with Dayforce HR, Payroll, Benefits, Time and Attendance, and Wallet for more than 1,500 active employees and retirees.
- A U.S. based manufacturer and retailer of home furnishings has implemented Dayforce HR, Benefits, and Time and Attendance for its 1,500 employees.
Product Roadmap Highlights
In the second quarter, Dayforce released new capabilities and platform updates to help Dayforce customers across the globe conquer the workplace complexity crisis and unlock value for the boundless workforce.
- Dayforce Co-Pilot updates include enhancements to Dayforce’s proprietary generative Artificial Intelligence model, including Retrieval-Augmented Generation document capabilities, to fuel trusted answers and foster a productive user experience.
- 200+ compliance updates in the first half of 2024, covering topics including unemployment taxes, workers’ compensation, garnishments, dependent care, and multiple state and city rate changes, enable Dayforce customers to operate with security, scalability, and transparency.
- Dayforce Talent updates include improved candidate and recruiter experiences, which enable candidates to save progress on, retrieve, and complete an application later and empower new talent to discover additional roles during their recruitment journey.
- On-the-job learning checklists allow managers to see how training impacts their employees’ performance and can automatically update Dayforce Workforce Management with job step rate and pay increases.
- Attendance management improvements include customizations of application logic and rule-based policy configurations to help track incidents and violations.
- Dayforce Flex Work, an on-demand marketplace for the contingent workforce, connects customers with skilled and flexible talent, while managing background checks, onboarding, and payroll to reduce employers’ administrative burden – all through a single system.
- Dayforce Partner Exchange, a curated ecosystem of software and service providers, facilitates access to fully vetted system integrators and technology providers within the Dayforce platform.
- Dayforce Payroll launched in Singapore, enabling customers operating in the region and across Asia with access to Dayforce’s industry-leading payroll capabilities.
- Dayforce Wallet reached the milestone of delivering more than
$4 billion in payroll to users across the U.S., Canada, and the U.K., reflecting the growing demand for on-demand pay and the value it brings to both employers and employees. As of June 30, 2024, over 1,270 customers were live on Dayforce Wallet. - Dayforce Integration Studio enhancements enable customers to prepare and import external data into the platform, as well as deploy new, pre-built connectors for benefits providers and strategic employee resource planning solutions and benefits providers.
Business Outlook
Based on information available as of July 31, 2024, Dayforce is issuing the following guidance for the third quarter and full year of 2024 as indicated below. Comparisons are on a year-over-year basis, unless stated otherwise.
| Guided Metrics | Full Year 2024 | Third Quarter 2024 | |
| Total revenue | |||
| Dayforce recurring revenue, excluding float | |||
| Float revenue | |||
| Adjusted EBITDA |
Dayforce has not reconciled the Adjusted EBITDA ranges for the third quarter or full year of 2024 to the directly comparable GAAP financial measures because applicable information for the future period, on which these reconciliations would be based, is not available without unreasonable efforts due to uncertainty regarding, and the potential variability of, depreciation and amortization, share-based compensation expense and related employer taxes, changes in foreign currency exchange rates, and other items.
Foreign Exchange
For the third quarter and fourth quarter of 2024, Dayforce's guidance assumes an average U.S. dollar to Canadian dollar foreign exchange rate of
Conference Call Details
Dayforce will host a live webcast to discuss the second quarter 2024 earnings at 8:00 a.m. Eastern Time on July 31, 2024. The event can be accessed via direct registration link at https://dayforce.zoom.us/webinar/register/WN_swoeFGDzRNGacRi3JC0bgg#/registration or through the Investor Relations section of the Company's website at https://investors.dayforce.com. A recording of the event will be made available on the Investor Relations section of Dayforce's website following the call.
About Dayforce
Dayforce makes work life better. Everything it does as a global leader in HCM technology is focused on improving work for thousands of customers and millions of employees around the world. Its single, global people platform for HR, payroll, talent, workforce management, and benefits equips Dayforce customers to unlock their full workforce potential and operate with confidence. To learn how Dayforce helps create quantifiable value for organizations of all sizes and industries, visit dayforce.com.
Forward-Looking Statements
This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this press release are forward-looking statements. Forward-looking statements give Dayforce's current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance, and business. Users can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements in this press release include statements relating to the third quarter and full fiscal year of 2024, as well as those relating to future growth initiatives. These statements may include words such as “anticipate,” “estimate,” “expect,” "assume", “project,” “seek,” “plan,” “intend,” “believe,” “will,” “may,” “could,” “continue,” “likely,” “should,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-looking statements contain these identifying words. The forward-looking statements contained in this press release are based on assumptions that Dayforce has made in light of its industry experience and its perceptions of historical trends, current conditions, expected future developments and other factors that it believes are appropriate under the circumstances. As users consider this press release, it should be understood that these statements are not guarantees of performance or results. These assumptions and Dayforce’s future performance or results involve risks and uncertainties (many of which are beyond its control). In particular:
- its inability to maintain its high Cloud solutions growth rate, manage its domestic and international growth effectively, or execute on its growth strategy;
- the impact of disruptions to the movement of funds to initiate payroll-related transactions on behalf of customers;
- its failure to manage its aging technical operations infrastructure;
- system breaches, interruptions or failures, including cyber-security breaches, identity theft, or other disruptions that could compromise customer information or sensitive company information, including its ongoing consent order with the Federal Trade Commission regarding data protection;
- its failure to comply with applicable privacy, data protection, information security, and financial services laws, regulations and standards;
- its inability to successfully compete in the markets in which Dayforce operates and expand its current offerings into new markets or further penetrate existing markets due to competition;
- its failure to properly update its solutions to enable its customers to comply with applicable laws;
- its failure to provide new or enhanced functionality and features, including those that may involve artificial intelligence or machine learning;
- its inability to maintain necessary third-party relationships, and third-party software licenses, and identify errors in the software it licenses;
- its inability to offer and deliver high-quality technical support, implementation, and professional services;
- its inability to attract and retain senior management employees and highly skilled employees;
- the impact of its outstanding debt obligations on its financial condition, results of operations, and value of its common stock;
- its ability to maintain effective internal control over financial reporting, and the effect of the existing material weakness in its internal control over financial reporting on its business, financial condition, and results of operations; or
- the impact of adverse economic and market conditions on its business, operating results, or financial condition.
Although Dayforce has attempted to identify important risk factors, additional factors or events that could cause Dayforce’s actual performance to differ from these forward-looking statements may emerge from time to time, and it is not possible for Dayforce to predict all of them. Should one or more of these risks or uncertainties materialize, or should any of Dayforce’s assumptions prove incorrect, its actual financial condition, results of operations, future performance, and business may vary in material respects from the performance projected in these forward-looking statements. In addition to any factors and assumptions set forth above in this press release, the material factors and assumptions used to develop the forward-looking information include, but are not limited to: the general economy remains stable; the competitive environment in the HCM market remains stable; the demand environment for HCM solutions remains stable; Dayforce’s implementation capabilities and cycle times remain stable; foreign exchange rates, both current and those used in developing forward-looking statements, specifically U.S. dollar to Canadian dollar, remain stable at, or near, current rates; Dayforce will be able to maintain its relationships with its employees, customers, and partners; Dayforce will continue to attract qualified personnel to support its development requirements and the support of its new and existing customers; and that the risk factors noted above, individually or collectively, do not have a material impact on Dayforce. Any forward-looking statement made by Dayforce in this press release speaks only as of the date on which it is made. Dayforce undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
| Dayforce, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (Unaudited) | ||||||||
| June 30, | December 31, | |||||||
| 2024 | 2023 | |||||||
| (In millions, except per share data) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and equivalents | $ | 465.4 | $ | 570.3 | ||||
| Restricted cash | 0.8 | 0.8 | ||||||
| Trade and other receivables, net | 260.8 | 228.8 | ||||||
| Prepaid expenses and other current assets | 140.1 | 126.7 | ||||||
| Total current assets before customer funds | 867.1 | 926.6 | ||||||
| Customer funds | 4,969.5 | 5,028.6 | ||||||
| Total current assets | 5,836.6 | 5,955.2 | ||||||
| Right of use lease assets, net | 14.8 | 19.1 | ||||||
| Property, plant, and equipment, net | 220.0 | 210.1 | ||||||
| Goodwill | 2,383.4 | 2,293.9 | ||||||
| Other intangible assets, net | 256.2 | 230.2 | ||||||
| Deferred sales commissions | 205.6 | 192.1 | ||||||
| Other assets | 129.5 | 110.3 | ||||||
| Total assets | $ | 9,046.1 | $ | 9,010.9 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Current portion of long-term debt | $ | 7.3 | $ | 7.6 | ||||
| Current portion of long-term lease liabilities | 5.9 | 7.0 | ||||||
| Accounts payable | 66.3 | 66.7 | ||||||
| Deferred revenue | 46.5 | 40.2 | ||||||
| Employee compensation and benefits | 80.2 | 92.9 | ||||||
| Other accrued expenses | 41.8 | 30.4 | ||||||
| Total current liabilities before customer funds obligations | 248.0 | 244.8 | ||||||
| Customer funds obligations | 5,032.3 | 5,090.1 | ||||||
| Total current liabilities | 5,280.3 | 5,334.9 | ||||||
| Long-term debt, less current portion | 1,210.7 | 1,210.1 | ||||||
| Employee benefit plans | 25.9 | 27.7 | ||||||
| Long-term lease liabilities, less current portion | 14.5 | 18.9 | ||||||
| Other liabilities | 38.9 | 21.1 | ||||||
| Total liabilities | 6,570.3 | 6,612.7 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Common stock, | 1.6 | 1.6 | ||||||
| Additional paid in capital | 3,246.7 | 3,151.1 | ||||||
| Accumulated deficit | (312.5 | ) | (317.8 | ) | ||||
| Accumulated other comprehensive loss | (460.0 | ) | (436.7 | ) | ||||
| Total stockholders’ equity | 2,475.8 | 2,398.2 | ||||||
| Total liabilities and stockholders' equity | $ | 9,046.1 | $ | 9,010.9 | ||||
| Dayforce, Inc. | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (In millions, except per share data) | ||||||||||||||||
| Revenue: | ||||||||||||||||
| Recurring | $ | 365.0 | $ | 314.9 | $ | 747.7 | $ | 632.8 | ||||||||
| Professional services and other | 58.3 | 51.0 | 107.1 | 103.7 | ||||||||||||
| Total revenue | 423.3 | 365.9 | 854.8 | 736.5 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Recurring | 89.3 | 78.8 | 177.7 | 158.9 | ||||||||||||
| Professional services and other | 69.6 | 67.0 | 135.7 | 130.9 | ||||||||||||
| Product development and management | 58.3 | 49.2 | 111.4 | 100.2 | ||||||||||||
| Depreciation and amortization | 19.3 | 15.0 | 37.8 | 30.3 | ||||||||||||
| Total cost of revenue | 236.5 | 210.0 | 462.6 | 420.3 | ||||||||||||
| Gross profit | 186.8 | 155.9 | 392.2 | 316.2 | ||||||||||||
| Selling and marketing | 83.1 | 61.5 | 162.1 | 115.7 | ||||||||||||
| General and administrative | 89.6 | 65.0 | 175.3 | 132.7 | ||||||||||||
| Operating profit | 14.1 | 29.4 | 54.8 | 67.8 | ||||||||||||
| Interest expense, net | 11.1 | 9.1 | 24.4 | 18.3 | ||||||||||||
| Other expense, net | 3.0 | 0.7 | 12.0 | 1.5 | ||||||||||||
| Income before income taxes | — | 19.6 | 18.4 | 48.0 | ||||||||||||
| Income tax expense | 1.8 | 16.5 | 13.1 | 35.0 | ||||||||||||
| Net (loss) income | $ | (1.8 | ) | $ | 3.1 | $ | 5.3 | $ | 13.0 | |||||||
| Net (loss) income per share: | ||||||||||||||||
| Basic | $ | (0.01 | ) | $ | 0.02 | $ | 0.03 | $ | 0.08 | |||||||
| Diluted | $ | (0.01 | ) | $ | 0.02 | $ | 0.03 | $ | 0.08 | |||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 157.9 | 155.1 | 157.4 | 154.7 | ||||||||||||
| Diluted | 157.9 | 157.6 | 159.8 | 157.8 | ||||||||||||
| Dayforce, Inc. | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (Unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| (In millions) | ||||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 5.3 | $ | 13.0 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Deferred income tax (benefit) expense | (17.4 | ) | 5.5 | |||||
| Depreciation and amortization | 99.4 | 45.4 | ||||||
| Amortization of debt issuance costs and debt discount | 2.1 | 2.2 | ||||||
| Loss on debt extinguishment | 4.3 | — | ||||||
| Provision for doubtful accounts | 3.8 | 2.5 | ||||||
| Net periodic pension and postretirement cost | 5.1 | 0.7 | ||||||
| Share-based compensation expense | 78.8 | 81.7 | ||||||
| Change in fair value of contingent consideration | — | 7.2 | ||||||
| Other | — | 0.2 | ||||||
| Changes in operating assets and liabilities, excluding effects of acquisitions: | ||||||||
| Trade and other receivables | (34.5 | ) | (27.6 | ) | ||||
| Prepaid expenses and other current assets | (2.6 | ) | (13.5 | ) | ||||
| Deferred sales commissions | (14.8 | ) | (12.9 | ) | ||||
| Accounts payable and other accrued expenses | (7.6 | ) | 5.2 | |||||
| Deferred revenue | (1.6 | ) | 2.5 | |||||
| Employee compensation and benefits | (12.3 | ) | (28.1 | ) | ||||
| Accrued taxes | 7.3 | 13.1 | ||||||
| Other assets and liabilities | (7.0 | ) | (4.1 | ) | ||||
| Net cash provided by operating activities | 108.3 | 93.0 | ||||||
| Cash flows from investing activities | ||||||||
| Purchases of customer funds marketable securities | (322.9 | ) | (101.6 | ) | ||||
| Proceeds from sale and maturity of customer funds marketable securities | 167.9 | 174.0 | ||||||
| Purchases of marketable securities | (4.0 | ) | — | |||||
| Proceeds from sale and maturity of marketable securities | 3.0 | — | ||||||
| Expenditures for property, plant, and equipment | (6.7 | ) | (10.1 | ) | ||||
| Expenditures for software and technology | (47.7 | ) | (46.4 | ) | ||||
| Acquisition costs, net of cash acquired | (173.1 | ) | — | |||||
| Other | — | (1.0 | ) | |||||
| Net cash (used in) provided by investing activities | (383.5 | ) | 14.9 | |||||
| Cash flows from financing activities | ||||||||
| (Decrease) increase in customer funds obligations, net | (3.0 | ) | 100.4 | |||||
| Proceeds from issuance of common stock under share-based compensation plans | 16.8 | 23.2 | ||||||
| Proceeds from debt issuance | 650.0 | — | ||||||
| Repayment of long-term debt obligations | (644.7 | ) | (4.1 | ) | ||||
| Payment of debt refinancing costs | (11.4 | ) | — | |||||
| Net cash provided by financing activities | 7.7 | 119.5 | ||||||
| Effect of exchange rate changes on cash, restricted cash, and equivalents | (21.7 | ) | 63.1 | |||||
| Net (decrease) increase in cash, restricted cash, and equivalents | (289.2 | ) | 290.5 | |||||
| Cash, restricted cash, and equivalents at beginning of period | 3,421.4 | 3,151.2 | ||||||
| Cash, restricted cash, and equivalents at end of period | $ | 3,132.2 | $ | 3,441.7 | ||||
| Reconciliation of cash, restricted cash, and equivalents to the condensed consolidated balance sheets | ||||||||
| Cash and equivalents | $ | 465.4 | $ | 486.6 | ||||
| Restricted cash | 0.8 | 0.8 | ||||||
| Restricted cash and equivalents included in customer funds | 2,666.0 | 2,954.3 | ||||||
| Total cash, restricted cash, and equivalents | $ | 3,132.2 | $ | 3,441.7 | ||||
| Dayforce, Inc. | ||||||||||||||||||||||||||||
| Trade and Other Receivables, Net | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||
| Trade receivables from customers | $ | 194.7 | $ | 203.7 | $ | 177.5 | $ | 163.2 | $ | 142.1 | $ | 137.1 | $ | 143.0 | ||||||||||||||
| Interest receivable from invested customer funds | 16.0 | 25.7 | 18.1 | 15.8 | 15.1 | 26.8 | 12.7 | |||||||||||||||||||||
| Dayforce Wallet on-demand pay receivables | 38.1 | 34.8 | 19.6 | 33.0 | 27.0 | 23.9 | 22.2 | |||||||||||||||||||||
| Other (a) | 29.8 | 28.4 | 27.6 | 37.3 | 32.9 | 27.9 | 11.4 | |||||||||||||||||||||
| Total gross receivables | 278.6 | 292.6 | 242.8 | 249.3 | 217.1 | 215.7 | 189.3 | |||||||||||||||||||||
| Less: reserve for sales adjustments and allowance for doubtful accounts | (17.8 | ) | (16.6 | ) | (14.0 | ) | (13.0 | ) | (11.8 | ) | (11.1 | ) | (9.2 | ) | ||||||||||||||
| Trade and other receivables, net | $ | 260.8 | $ | 276.0 | $ | 228.8 | $ | 236.3 | $ | 205.3 | $ | 204.6 | $ | 180.1 | ||||||||||||||
(a) Other includes short-term investments not classified as cash equivalents, interest receivable and other current receivables.
| Dayforce, Inc. | ||||||||||||||||||||
| Revenue Financial Measures | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended June 30, | Percentage change in revenue | Impact of changes in foreign currency (a) | Percentage change in revenue on a constant currency basis (a) | |||||||||||||||||
| 2024 | 2023 | 2024 vs. 2023 | 2024 vs. 2023 | |||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Revenue: | ||||||||||||||||||||
| Recurring revenue: | ||||||||||||||||||||
| Dayforce recurring, excluding float | $ | 277.7 | $ | 231.3 | 20.1 | % | (0.4 | )% | 20.5 | % | ||||||||||
| Dayforce float | 43.9 | 36.9 | 19.0 | % | (0.5 | )% | 19.5 | % | ||||||||||||
| Total Dayforce recurring | 321.6 | 268.2 | 19.9 | % | (0.5 | )% | 20.4 | % | ||||||||||||
| Powerpay recurring, excluding float | 19.9 | 19.7 | 1.0 | % | (2.0 | )% | 3.0 | % | ||||||||||||
| Powerpay float | 4.7 | 4.4 | 6.8 | % | (— | )% | 6.8 | % | ||||||||||||
| Total Powerpay recurring | 24.6 | 24.1 | 2.1 | % | (1.6 | )% | 3.7 | % | ||||||||||||
| Total Cloud recurring | 346.2 | 292.3 | 18.4 | % | (0.6 | )% | 19.0 | % | ||||||||||||
| Other recurring (b) | 18.8 | 22.6 | (16.8 | )% | (1.8 | )% | (15.0 | )% | ||||||||||||
| Total recurring revenue | 365.0 | 314.9 | 15.9 | % | (0.7 | )% | 16.6 | % | ||||||||||||
| Professional services and other (c) | 58.3 | 51.0 | 14.3 | % | (0.2 | )% | 14.5 | % | ||||||||||||
| Total revenue | $ | 423.3 | $ | 365.9 | 15.7 | % | (0.6 | )% | 16.3 | % | ||||||||||
(a) Dayforce has calculated percentage change in revenue on a constant currency basis by applying the average foreign exchange rate in effect during the comparable prior period. Please refer to the "Non-GAAP Financial Measures" section for discussion of percentage change in revenue on a constant currency basis.
(b) Float attributable to Other recurring was
(c) For the three months ended June 30, 2024, Professional services and other consisted of
| Six Months Ended June 30, | Percentage change in revenue | Impact of changes in foreign currency (a) | Percentage change in revenue on a constant currency basis (a) | |||||||||||||||||
| 2024 | 2023 | 2024 vs. 2023 | 2024 vs. 2023 | |||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Revenue: | ||||||||||||||||||||
| Recurring revenue: | ||||||||||||||||||||
| Dayforce recurring, excluding float | $ | 560.1 | $ | 460.9 | 21.5 | % | (0.2 | )% | 21.7 | % | ||||||||||
| Dayforce float | 98.7 | 78.5 | 25.7 | % | (0.3 | )% | 26.0 | % | ||||||||||||
| Total Dayforce recurring | 658.8 | 539.4 | 22.1 | % | (0.3 | )% | 22.4 | % | ||||||||||||
| Powerpay recurring, excluding float | 40.4 | 39.2 | 3.1 | % | (0.7 | )% | 3.8 | % | ||||||||||||
| Powerpay float | 10.2 | 9.0 | 13.3 | % | (— | )% | 13.3 | % | ||||||||||||
| Total Powerpay recurring | 50.6 | 48.2 | 5.0 | % | (0.6 | )% | 5.6 | % | ||||||||||||
| Total Cloud recurring | 709.4 | 587.6 | 20.7 | % | (0.3 | )% | 21.0 | % | ||||||||||||
| Other recurring (b) | 38.3 | 45.2 | (15.3 | )% | (2.0 | )% | (13.3 | )% | ||||||||||||
| Total recurring revenue | 747.7 | 632.8 | 18.2 | % | (0.3 | )% | 18.5 | % | ||||||||||||
| Professional services and other (c) | 107.1 | 103.7 | 3.3 | % | (0.3 | )% | 3.6 | % | ||||||||||||
| Total revenue | $ | 854.8 | $ | 736.5 | 16.1 | % | (0.3 | )% | 16.4 | % | ||||||||||
(a) Dayforce has calculated percentage change in revenue on a constant currency basis by applying the average foreign exchange rate in effect during the comparable prior period. Please refer to the "Non-GAAP Financial Measures" section for discussion of percentage change in revenue on a constant currency basis.
(b) Float attributable to Other recurring was
(c) For the six months ended June 30, 2024, Professional services and other consisted of
| Dayforce, Inc. | ||||||||||||||||
| Share-Based Compensation Expense and Related Employer Taxes | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (in millions) | ||||||||||||||||
| Cost of revenue - Cloud | $ | 3.0 | $ | 4.0 | $ | 6.6 | $ | 8.0 | ||||||||
| Cost of revenue - Other | 0.6 | 0.4 | 1.1 | 0.7 | ||||||||||||
| Professional services and other | 3.9 | 4.7 | 7.7 | 9.1 | ||||||||||||
| Product development and management | 8.9 | 9.8 | 16.9 | 17.9 | ||||||||||||
| Sales and marketing | 9.3 | 7.4 | 17.8 | 12.6 | ||||||||||||
| General and administrative | 15.1 | 15.4 | 28.7 | 33.6 | ||||||||||||
| Total | $ | 40.8 | $ | 41.7 | $ | 78.8 | $ | 81.9 | ||||||||
| Dayforce, Inc. | ||||||||||||||||||||||||||||
| Reconciliation of GAAP to Non-GAAP Financial Measures | ||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||
| The following tables reconcile Dayforce's reported results to its non-GAAP financial measures: | ||||||||||||||||||||||||||||
| Three Months Ended June 30, 2024 | ||||||||||||||||||||||||||||
| As reported | As reported margins (a) | Share-based compensation | Amortization | Other (b) | As adjusted (b) | As adjusted margins (a) | ||||||||||||||||||||||
| (Dollars in millions, except per share data) | ||||||||||||||||||||||||||||
| Cost of Cloud recurring revenue | $ | 77.1 | 77.7 | % | $ | 3.0 | $ | — | $ | 0.8 | $ | 73.3 | 78.8 | % | ||||||||||||||
| Operating profit | $ | 14.1 | 3.3 | % | $ | 40.8 | $ | 29.5 | $ | 10.5 | $ | 94.9 | 22.4 | % | ||||||||||||||
| Net (loss) income | $ | (1.8 | ) | (0.4 | )% | $ | 40.8 | $ | 29.5 | $ | 7.7 | $ | 76.2 | 18.0 | % | |||||||||||||
| Interest expense, net | 11.1 | — | — | — | 11.1 | |||||||||||||||||||||||
| Income tax expense (c) | 1.8 | — | — | (6.1 | ) | 7.9 | ||||||||||||||||||||||
| Depreciation and amortization | 50.6 | — | 29.5 | — | 21.1 | |||||||||||||||||||||||
| EBITDA | $ | 61.7 | $ | 40.8 | $ | — | $ | 13.8 | $ | 116.3 | 27.5 | % | ||||||||||||||||
| Net (loss) income per share - diluted (d) | $ | (0.01 | ) | $ | 0.26 | $ | 0.18 | $ | 0.05 | $ | 0.48 | |||||||||||||||||
(a) Cloud recurring gross margin is defined as total Cloud recurring revenue less cost of Cloud recurring revenue as a percentage of total Cloud recurring revenue. Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net (loss) income are of total revenue. Please refer to the "Non-GAAP Financial Measures" section for additional information on the as adjusted margins.
(b) The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items including
(c) Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.
(d) GAAP diluted net loss per share is calculated based upon 157.9 million weighted average shares of common stock, and Adjusted diluted net income per share is calculated based upon 159.5 million weighted average shares of common stock.
| Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||
| As reported | As reported margins (a) | Share-based compensation | Amortization | Other (b) | As adjusted (b) | As adjusted margins (a) | ||||||||||||||||||||||
| (Dollars in millions, except per share data) | ||||||||||||||||||||||||||||
| Cost of Cloud recurring revenue | $ | 68.0 | 76.7 | % | $ | 4.0 | $ | — | $ | — | $ | 64.0 | 78.1 | % | ||||||||||||||
| Operating profit | $ | 29.4 | 8.0 | % | $ | 41.7 | $ | 6.7 | $ | 5.2 | $ | 83.0 | 22.7 | % | ||||||||||||||
| Net income | $ | 3.1 | 0.8 | % | $ | 41.7 | $ | 6.7 | $ | (0.7 | ) | $ | 50.8 | 13.9 | % | |||||||||||||
| Interest expense, net | 9.1 | — | — | — | 9.1 | |||||||||||||||||||||||
| Income tax expense (c) | 16.5 | — | — | (5.4 | ) | 21.9 | ||||||||||||||||||||||
| Depreciation and amortization | 23.3 | — | 6.7 | — | 16.6 | |||||||||||||||||||||||
| EBITDA | $ | 52.0 | $ | 41.7 | $ | — | $ | 4.7 | $ | 98.4 | 26.9 | % | ||||||||||||||||
| Net income per share - diluted (d) | $ | 0.02 | $ | 0.26 | $ | 0.04 | $ | — | $ | 0.32 | ||||||||||||||||||
(a) Cloud recurring gross margin is defined as total Cloud recurring revenue less cost of Cloud recurring revenue as a percentage of total Cloud recurring revenue. Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net income are of total revenue. Please refer to the "Non-GAAP Financial Measures" section for additional information on the as adjusted margins.
(b) The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items including
(c) Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.
(d) GAAP and Adjusted diluted net income per share are calculated based upon 157.6 million weighted average shares of common stock.
| Six Months Ended June 30, 2024 | ||||||||||||||||||||||||||||
| As reported | As reported margins (a) | Share-based compensation | Amortization | Other (b) | As adjusted (b) | As adjusted margins (a) | ||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||
| Cost of Cloud recurring revenue | $ | 153.4 | 78.4 | % | $ | 6.6 | $ | — | $ | 0.8 | $ | 146.0 | 79.4 | % | ||||||||||||||
| Operating profit | $ | 54.8 | 6.4 | % | $ | 78.8 | $ | 57.9 | $ | 12.5 | $ | 204.0 | 23.9 | % | ||||||||||||||
| Net income | $ | 5.3 | 0.6 | % | $ | 78.8 | $ | 57.9 | $ | 2.2 | $ | 144.2 | 16.9 | % | ||||||||||||||
| Interest expense, net | 24.4 | — | — | — | 24.4 | |||||||||||||||||||||||
| Income tax expense (c) | 13.1 | — | — | (23.0 | ) | 36.1 | ||||||||||||||||||||||
| Depreciation and amortization | 99.4 | — | 57.9 | — | 41.5 | |||||||||||||||||||||||
| EBITDA | $ | 142.2 | $ | 78.8 | $ | — | $ | 25.2 | $ | 246.2 | 28.8 | % | ||||||||||||||||
| Net income per share - diluted (d) | $ | 0.03 | $ | 0.49 | $ | 0.36 | $ | 0.01 | $ | 0.90 | ||||||||||||||||||
(a) Cloud recurring gross margin is defined as total Cloud recurring revenue less cost of Cloud recurring revenue as a percentage of total Cloud recurring revenue. Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net income are of total revenue. Please refer to the "Non-GAAP Financial Measures" section for additional information on the as adjusted margins.
(b) The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items including
(c) Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.
(d) GAAP and Adjusted diluted net income per share are calculated based upon 159.8 million weighted average shares of common stock.
| Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||
| As reported | As reported margins (a) | Share-based compensation | Amortization | Other (b) | As adjusted (b) | As adjusted margins (a) | ||||||||||||||||||||||
| (In millions) | ||||||||||||||||||||||||||||
| Cost of Cloud recurring revenue | $ | 134.9 | 77.0 | % | $ | 8.0 | $ | — | $ | — | $ | 126.9 | 78.4 | % | ||||||||||||||
| Operating profit | $ | 67.8 | 9.2 | % | $ | 81.9 | $ | 12.2 | $ | 9.6 | $ | 171.5 | 23.3 | % | ||||||||||||||
| Net income | $ | 13.0 | 1.8 | % | $ | 81.9 | $ | 12.2 | $ | (7.0 | ) | $ | 100.1 | 13.6 | % | |||||||||||||
| Interest expense, net | 18.3 | — | — | — | 18.3 | |||||||||||||||||||||||
| Income tax expense (c) | 35.0 | — | — | (17.2 | ) | 52.2 | ||||||||||||||||||||||
| Depreciation and amortization | 45.4 | — | 12.2 | — | 33.2 | |||||||||||||||||||||||
| EBITDA | $ | 111.7 | $ | 81.9 | $ | — | $ | 10.2 | $ | 203.8 | 27.7 | % | ||||||||||||||||
| Net income per share - diluted (d) | $ | 0.08 | $ | 0.52 | $ | 0.08 | $ | (0.04 | ) | $ | 0.63 | |||||||||||||||||
(a) Cloud recurring gross margin is defined as total Cloud recurring revenue less cost of Cloud recurring revenue as a percentage of total Cloud recurring revenue. Operating profit margin and net profit margin are determined by calculating the percentage operating profit and net income are of total revenue. Please refer to the "Non-GAAP Financial Measures" section for additional information on the as adjusted margins.
(b) The as adjusted column is a non-GAAP financial measure, adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items including
(c) Income tax effects have been calculated based on the statutory tax rates in effect in the U.S. and foreign jurisdictions during the period.
(d) GAAP and Adjusted diluted net income per share are calculated based upon 157.8 million weighted average shares of common stock.
| Dayforce, Inc. | ||||||||||||||||
| Reconciliation of Free Cash Flow | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (In millions) | ||||||||||||||||
| Net cash provided by operating activities | $ | 99.2 | $ | 81.7 | $ | 108.3 | $ | 93.0 | ||||||||
| Expenditures for property, plant, and equipment | (3.2 | ) | (3.6 | ) | (6.7 | ) | (10.1 | ) | ||||||||
| Expenditures for software and technology | (23.3 | ) | (24.5 | ) | (47.7 | ) | (46.4 | ) | ||||||||
| Free cash flow | $ | 72.7 | $ | 53.6 | $ | 53.9 | $ | 36.5 | ||||||||
Non-GAAP Financial Measures
Dayforce uses certain non-GAAP financial measures in this release including:
| Non-GAAP Financial Measure | GAAP Financial Measure | |
| EBITDA | Net (loss) income | |
| Adjusted EBITDA | Net (loss) income | |
| Adjusted EBITDA margin | Net profit margin | |
| Adjusted Cloud recurring gross margin | Cloud recurring gross margin | |
| Adjusted operating profit | Operating profit | |
| Adjusted operating profit margin | Operating profit margin | |
| Adjusted net income | Net (loss) income | |
| Adjusted net profit margin | Net profit margin | |
| Adjusted diluted net income per share | Diluted net (loss) income per share | |
| Free cash flow | Net cash provided by operating activities | |
| Percentage change in revenue, including total revenue and revenue by solution, on a constant currency basis | Percentage change in revenue, including total revenue and revenue by solution | |
| Dayforce recurring revenue per customer | No directly comparable GAAP measure | |
Dayforce believes that these non-GAAP financial measures are useful to management and investors as supplemental measures to evaluate its overall operating performance including comparison across periods and with competitors. Dayforce's management team uses these non-GAAP financial measures to assess operating performance because these financial measures exclude the results of decisions that are outside the normal course of its business operations, and are used for internal budgeting and forecasting purposes both for short- and long-term operating plans. Additionally, Adjusted EBITDA is a component of its management incentive plan and Adjusted Cloud recurring gross margin and Adjusted operating profit are components of certain performance based equity awards for its named executive officers. Additionally, Dayforce believes that the non-GAAP financial measure free cash flow is meaningful to investors because it is a measure of liquidity that provides useful information in understanding and evaluating the strength of Dayforce’s liquidity and future ability to generate cash that can be used for strategic opportunities or investing in its business. The exclusion of capital expenditures facilitates comparisons of Dayforce’s liquidity on a period-to-period basis and excludes items that management does not consider to be indicative of Dayforce’s liquidity.
These non-GAAP financial measures are not required by, defined under, or presented in accordance with, GAAP, and should not be considered as alternatives to Dayforce's results as reported under GAAP, have important limitations as analytical tools, and its use of these terms may not be comparable to similarly titled measures of other companies in its industry. Dayforce's presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by similar items to those eliminated in this presentation. Please refer to Dayforce’s full financial results, including further discussion of non-GAAP financial measures, on the Investor Relations portion of its website at investors.dayforce.com.
Dayforce defines its non-GAAP financial measures as follows:
- EBITDA is defined as net (loss) income before interest, taxes, depreciation, and amortization, and Adjusted EBITDA is EBITDA, as adjusted to exclude share-based compensation expense and related employer taxes, and certain other items.
- Adjusted EBITDA margin is determined by calculating the percentage Adjusted EBITDA is of total revenue.
- Adjusted Cloud recurring gross margin is defined as Cloud recurring gross margin, as adjusted to exclude share-based compensation and related employer taxes, and certain other items, as a percentage of total Cloud recurring revenue.
- Adjusted operating profit is defined as operating profit, as adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items.
- Adjusted net income is defined as net (loss) income, as adjusted to exclude share-based compensation expense and related employer taxes, amortization of acquisition-related intangible assets, and certain other items, all of which are adjusted for the effect of income taxes.
- Adjusted net profit margin is determined by calculating the percentage Adjusted net income is of total revenue.
- Adjusted diluted net income per share is calculated by dividing adjusted net income by diluted weighted average common shares outstanding. When adjusted diluted net income per share is positive, diluted weighted average common shares outstanding incorporate the effect of dilutive equity instruments.
- Free cash flow is defined as net cash provided by operating activities, as adjusted to exclude capital expenditures.
- Percentage change in revenue, including total revenue and revenue by solution, on a constant currency basis is calculated by applying the average foreign exchange rate in effect during the comparable prior period.
- Dayforce recurring revenue per customer is an indicator of the average size of Dayforce recurring revenue customers. To calculate Dayforce recurring revenue per customer, the Company starts with Dayforce recurring revenue on a constant currency basis by applying the same exchange rate to all comparable periods for the trailing twelve months and excludes float revenue and Ascender, ADAM HCM, and eloomi revenue. This amount is divided by the number of live Dayforce customers at the end of the trailing twelve month period, excluding Ascender, ADAM HCM, and eloomi. The Company has not reconciled the Dayforce recurring revenue per customer because there is no directly comparable GAAP financial measure.
Source: Dayforce, Inc.
For further information, please contact:
Investor Relations
1-844-829-9499
investors@dayforce.com
Public Relations
1-647-417-2117
teri.murphy@dayforce.com
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