UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 7, 2024
Dayforce, Inc.
(Exact name of Registrant as Specified in Its Charter)
Delaware |
001-38467 |
46-3231686 |
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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3311 East Old Shakopee Road, Minneapolis, MN |
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55425 |
(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s Telephone Number, Including Area Code: (952) 853-8100
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
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Trading Symbol(s) |
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Name of each exchange on which registered |
Common stock, $0.01 par value |
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DAY |
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New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 7, 2024, Dayforce, Inc. issued a press release announcing its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2023. A copy of the press release is furnished as Exhibit 99.1 to this current report and is incorporated by reference herein. The information furnished on this Current Report on Form 8-K, including the exhibits attached, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are furnished pursuant to Item 2.02 with this report and shall not be deemed to be “filed.”
Exhibit No. |
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Description |
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99.1 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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DAYFORCE, INC. |
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By: |
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/s/ Jeremy R. Johnson |
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Name: |
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Jeremy R. Johnson |
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Title: |
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Executive Vice President, Chief Financial Officer |
Date: February 7, 2024
Exhibit 99.1
Dayforce Reports Fourth Quarter and Full Year 2023 Results
Dayforce® recurring revenue of $292.1 million, up 30.1% year-over-year in the fourth quarter, or 29.9% on a constant currency basis
Total revenue of $399.7 million, up 18.9% year-over-year in the fourth quarter, or 18.7% on a constant currency basis
Net cash provided by operating activities was $219.5 million for the full year of 2023, compared to $132.6 million for the full year of 2022
Annual Dayforce gross revenue retention rate of 97.1%
Minneapolis, MN and Toronto, ON, February 7, 2024 - Dayforce, Inc. ("Dayforce" or the “Company" formerly known as ("f/k/a") Ceridian HCM Holding Inc.) (NYSE:DAY) (TSX:DAY), a global leader in human capital management ("HCM") technology, today announced its financial results for the fourth quarter and fiscal year ended December 31, 2023.
“Dayforce delivered another strong quarter underpinned by record enterprise go-lives and operating cash flows,” said David Ossip, Chair and CEO of Dayforce. “I’m incredibly proud of everything our team accomplished in 2023 and am confident about our path ahead as our entire community is fully united around a brand new Dayforce.”
"Our fourth quarter results were delivered predictably across all guided metrics," said Jeremy Johnson, CFO of Dayforce. "In 2023, we maintained strong revenue growth rates, showed improvement across all key measures of profitability, and delivered operating cash flow at record levels. As we look forward to 2024, we remain confident in our path to achieve our mid-term commitments on revenue and profitability."
Financial Highlights for the Fourth Quarter 20231,2
1 | Q4 2023 Earnings Release
Financial Highlights for the Full Year 20231,2
Supplemental Detail
1 Dayforce recurring revenue and annual Dayforce revenue retention rate refer to the Dayforce platform. All other uses of Dayforce refer to Dayforce, Inc.
2 | Q4 2023 Earnings Release
2 The financial highlights are on a year-over-year basis, unless otherwise stated. All financial results are reported in United States ("U.S.") dollars unless otherwise stated.
3 Excluding the 2021 acquisitions of Ascender HCM Pty Limited ("Ascender") and ATI ROW, LLC and ADAM HCM MEXICO, S. de R.L. de C.V. (collectively, "ADAM HCM").
4 Excluding float revenue, Ascender and ADAM HCM 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
Sales Highlights
3 | Q4 2023 Earnings Release
Customer Highlights
Platform and Roadmap Highlights
Dayforce's innovations delivered simplicity at scale to help customers create better experiences, strengthen compliance, and embrace an open and connected approach to work:
4 | Q4 2023 Earnings Release
Business Outlook
Based on information available as of February 7, 2024, Dayforce is issuing the following guidance for the first quarter and full year of 2024 as indicated below. Comparisons are on a year-over-year basis, unless stated otherwise.
First Quarter 2024 Guidance |
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Supplemental Commentary and Factors |
Total Revenue |
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$424 million to $427 million, an increase of 14% to 15% on a GAAP and a constant currency basis. |
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Dayforce expects Other recurring revenue, excluding float1 to decline mid-single digits on a GAAP and a constant currency basis, as a result of the sunsetting of certain legacy solutions.
Dayforce expects PowerPay® recurring revenue, excluding float to increase high-single digits on a GAAP and a constant currency basis. |
Dayforce recurring revenue, excluding float |
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$276 million to $279 million, an increase of 20% to 22%, or 20% to 21% on a constant currency basis. |
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Dayforce expects employment levels to reflect a normalized seasonal cadence. |
Float revenue |
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$55 million |
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Float guidance reflects the near-term rate environment and the rolling maturity of the laddered core portfolio. |
Adjusted EBITDA |
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$123 million to $126 million or margins of 29.0% to 29.5% |
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Dayforce continues to make investments to expand its global HCM footprint while scaling the platform. |
5 | Q4 2023 Earnings Release
Fiscal Year 2024 Guidance |
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Supplemental Commentary and Factors |
Total Revenue |
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$1,720 million to $1,730 million, an increase of 14%, or 13% to 14% on a constant currency basis. |
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Dayforce expects Other recurring revenue, excluding float1 to decline mid-single digits on a constant currency basis, as a result of the sunsetting of certain legacy solutions.
Dayforce expects PowerPay recurring revenue, excluding float to increase high-single digits on a GAAP and a constant currency basis. |
Dayforce recurring revenue, excluding float |
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$1,160 million to $1,165 million, an increase of 20% to 21% on a GAAP and a constant currency basis. |
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Dayforce expects employment levels to reflect a normalized seasonal cadence. |
Float revenue |
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$174 million |
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Float guidance reflects the near-term rate environment and the rolling maturity of the laddered core portfolio. |
Adjusted EBITDA |
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$480 million to $495 million or margins of 27.9% to 28.6% |
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Dayforce continues to make investments to expand its global HCM footprint while scaling the platform. One-time impacts associated with the Dayforce rebrand and acquisition of eloomi are reflected in this metric. |
Dayforce has not reconciled the Adjusted EBITDA or Adjusted EBITDA margin ranges for the first 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 full year and first quarter of 2024, Dayforce's guidance assumes an average U.S dollar to Canadian dollar foreign exchange rate of $1.33, compared to an average rate of $1.35 for the first quarter of 2023 and $1.35 for the full year of 2023.
Conference Call Details
Dayforce will host a live webcast to discuss the fourth quarter and fiscal year 2023 earnings at 8:00 a.m. Eastern Time on February 7, 2024. The event can be accessed via direct registration link at https://dayforce.zoom.us/webinar/register/WN_TSU5KnEEReC_o9p9VC6C-Q#/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
6 | Q4 2023 Earnings Release
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 first 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:
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 the 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 USD to CAD, 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.
7 | Q4 2023 Earnings Release
Dayforce, Inc. (f/k/a Ceridian HCM Holding Inc.)
Condensed Consolidated Balance Sheets
(Unaudited)
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December 31, |
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2023 |
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2022 |
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(In millions, except per share data) |
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ASSETS |
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Current assets: |
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Cash and equivalents |
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$ |
570.3 |
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$ |
431.9 |
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Restricted cash |
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0.8 |
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0.8 |
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Trade and other receivables, net |
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228.8 |
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180.1 |
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Prepaid expenses and other current assets |
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126.7 |
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98.0 |
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Total current assets before customer funds |
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926.6 |
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710.8 |
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Customer funds |
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5,028.6 |
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4,729.5 |
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Total current assets |
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5,955.2 |
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5,440.3 |
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Right of use lease assets, net |
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19.1 |
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24.3 |
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Property, plant, and equipment, net |
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210.1 |
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174.9 |
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Goodwill |
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2,293.9 |
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2,280.0 |
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Other intangible assets, net |
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230.2 |
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281.6 |
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Other assets |
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302.4 |
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262.4 |
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Total assets |
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$ |
9,010.9 |
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$ |
8,463.5 |
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LIABILITIES AND EQUITY |
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Current liabilities: |
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Current portion of long-term debt |
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$ |
7.6 |
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$ |
7.8 |
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Current portion of long-term lease liabilities |
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7.0 |
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10.0 |
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Accounts payable |
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66.7 |
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54.3 |
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Deferred revenue |
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40.2 |
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41.2 |
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Employee compensation and benefits |
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92.9 |
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97.4 |
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Other accrued expenses |
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30.4 |
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24.0 |
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Total current liabilities before customer funds obligations |
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244.8 |
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234.7 |
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Customer funds obligations |
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5,090.1 |
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4,845.1 |
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Total current liabilities |
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5,334.9 |
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5,079.8 |
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Long-term debt, less current portion |
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1,210.1 |
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1,213.4 |
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Employee benefit plans |
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27.7 |
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17.7 |
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Long-term lease liabilities, less current portion |
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18.9 |
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23.7 |
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Other liabilities |
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21.1 |
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19.5 |
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Total liabilities |
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6,612.7 |
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6,354.1 |
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Commitments and contingencies |
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Stockholders’ equity: |
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Common stock, $0.01 par, 500.0 shares authorized, 156.3 and 153.9 shares issued and outstanding, respectively |
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1.6 |
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1.5 |
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Additional paid in capital |
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3,151.1 |
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2,965.5 |
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Accumulated deficit |
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(317.8 |
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(372.6 |
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Accumulated other comprehensive loss |
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(436.7 |
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(485.0 |
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Total stockholders’ equity |
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2,398.2 |
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2,109.4 |
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Total liabilities and stockholders' equity |
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$ |
9,010.9 |
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$ |
8,463.5 |
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8 | Q4 2023 Earnings Release
Dayforce, Inc. (f/k/a Ceridian HCM Holding Inc.)
Condensed Consolidated Statements of Operations
(Unaudited)
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Three Months Ended December 31, |
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Twelve Months Ended December 31, |
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2023 |
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2022 |
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2023 |
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2022 |
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(In millions, except per share data) |
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Revenue: |
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Recurring |
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$ |
339.1 |
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$ |
284.8 |
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$ |
1,297.3 |
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$ |
1,047.6 |
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Professional services and other |
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60.6 |
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51.3 |
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216.4 |
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198.6 |
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Total revenue |
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399.7 |
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336.1 |
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1,513.7 |
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1,246.2 |
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Cost of revenue: |
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Recurring |
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85.5 |
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75.0 |
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324.9 |
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309.4 |
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Professional services and other |
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68.6 |
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66.1 |
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265.6 |
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238.7 |
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Product development and management |
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56.4 |
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44.9 |
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209.9 |
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169.9 |
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Depreciation and amortization |
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19.4 |
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15.0 |
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66.8 |
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55.0 |
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Total cost of revenue |
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229.9 |
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201.0 |
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867.2 |
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773.0 |
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Gross profit |
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169.8 |
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135.1 |
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646.5 |
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473.2 |
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Selling and marketing |
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72.7 |
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68.1 |
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250.2 |
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251.5 |
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General and administrative |
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58.3 |
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63.7 |
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263.2 |
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247.5 |
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Operating profit (loss) |
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38.8 |
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3.3 |
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133.1 |
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(25.8 |
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Interest expense, net |
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8.9 |
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8.7 |
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36.1 |
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28.6 |
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Other (income) expense, net |
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(5.6 |
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(2.9 |
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1.0 |
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8.5 |
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Income (loss) before income taxes |
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35.5 |
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(2.5 |
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96.0 |
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(62.9 |
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Income tax (benefit) expense |
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(10.1 |
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2.7 |
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41.2 |
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10.5 |
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Net income (loss) |
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$ |
45.6 |
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$ |
(5.2 |
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$ |
54.8 |
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$ |
(73.4 |
) |
Net income (loss) per share: |
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Basic |
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$ |
0.29 |
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$ |
(0.03 |
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$ |
0.35 |
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$ |
(0.48 |
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Diluted |
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$ |
0.29 |
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$ |
(0.03 |
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$ |
0.35 |
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$ |
(0.48 |
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Weighted average shares outstanding: |
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Basic |
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156.2 |
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153.7 |
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155.3 |
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152.9 |
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Diluted |
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159.2 |
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153.7 |
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158.5 |
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152.9 |
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9 | Q4 2023 Earnings Release
Dayforce, Inc. (f/k/a Ceridian HCM Holding Inc.)
Condensed Consolidated Statements of Cash Flows
(Unaudited)
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Year Ended December 31, |
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2023 |
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2022 |
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(In millions) |
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Net income (loss) |
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$ |
54.8 |
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$ |
(73.4 |
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Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
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Deferred income tax expense |
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4.1 |
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(1.7 |
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Depreciation and amortization |
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132.5 |
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89.0 |
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Amortization of debt issuance costs and debt discount |
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4.4 |
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4.6 |
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Provision for doubtful accounts |
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5.4 |
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2.2 |
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Net periodic pension and postretirement cost |
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1.1 |
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4.8 |
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Share-based compensation expense |
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136.7 |
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|
144.8 |
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Change in fair value of contingent consideration |
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4.3 |
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4.6 |
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Other |
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1.0 |
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(0.2 |
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Changes in operating assets and liabilities, excluding effects of acquisitions and divestitures: |
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Trade and other receivables |
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(48.3 |
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(39.5 |
) |
Prepaid expenses and other current assets |
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(22.1 |
) |
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(11.4 |
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Deferred sales commissions |
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(39.5 |
) |
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(8.9 |
) |
Accounts payable and other accrued expenses |
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9.3 |
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(0.2 |
) |
Deferred revenue |
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(1.3 |
) |
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(5.6 |
) |
Employee compensation and benefits |
|
|
(7.5 |
) |
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|
21.2 |
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Accrued taxes |
|
|
(4.7 |
) |
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|
7.5 |
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Other assets and liabilities |
|
|
(10.7 |
) |
|
|
(5.2 |
) |
Net cash provided by operating activities |
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|
219.5 |
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|
132.6 |
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Cash Flows from Investing Activities |
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Purchases of customer funds marketable securities |
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(528.1 |
) |
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(652.8 |
) |
Proceeds from sale and maturity of customer funds marketable securities |
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445.5 |
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|
404.8 |
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Purchases of marketable securities |
|
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(6.8 |
) |
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|
— |
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Proceeds from sale and maturity of marketable securities |
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|
2.0 |
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|
|
— |
|
Expenditures for property, plant, and equipment |
|
|
(19.0 |
) |
|
|
(20.2 |
) |
Expenditures for software and technology |
|
|
(95.4 |
) |
|
|
(74.3 |
) |
Other |
|
|
(1.0 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(202.8 |
) |
|
|
(342.5 |
) |
Cash Flows from Financing Activities |
|
|
|
|
|
|
||
Increase in customer funds obligations, net |
|
|
200.9 |
|
|
|
734.6 |
|
Proceeds from issuance of common stock under share-based compensation plans |
|
|
49.0 |
|
|
|
38.4 |
|
Repayment of long-term debt obligations |
|
|
(7.9 |
) |
|
|
(8.4 |
) |
Net cash provided by financing activities |
|
|
242.0 |
|
|
|
764.6 |
|
Effect of exchange rate changes on cash, restricted cash, and equivalents |
|
|
11.5 |
|
|
|
(46.8 |
) |
Net increase in cash, restricted cash, and equivalents |
|
|
270.2 |
|
|
|
507.9 |
|
Cash, restricted cash, and equivalents at beginning of period |
|
|
3,151.2 |
|
|
|
2,643.3 |
|
Cash, restricted cash, and equivalents at end of period |
|
$ |
3,421.4 |
|
|
$ |
3,151.2 |
|
Reconciliation of cash, restricted cash, and equivalents to the consolidated |
|
|
|
|
|
|
||
Cash and equivalents |
|
$ |
570.3 |
|
|
$ |
431.9 |
|
Restricted cash |
|
|
0.8 |
|
|
|
0.8 |
|
Restricted cash and equivalents included in customer funds |
|
|
2,850.3 |
|
|
|
2,718.5 |
|
Total cash, restricted cash, and equivalents |
|
$ |
3,421.4 |
|
|
$ |
3,151.2 |
|
Supplemental Cash Flow Information |
|
|
|
|
|
|
||
Cash paid for interest |
|
$ |
52.4 |
|
|
$ |
30.1 |
|
Cash paid for income taxes |
|
|
43.0 |
|
|
|
17.6 |
|
Cash received from income tax refunds |
|
|
0.6 |
|
|
|
8.0 |
|
10 | Q4 2023 Earnings Release
Dayforce, Inc. (f/k/a Ceridian HCM Holding Inc.)
Revenue Financial Measures
(Unaudited)
|
|
Three Months Ended December 31, |
|
|
Percentage change in revenue |
|
|
Impact of |
|
|
Percentage change in revenue on a constant currency basis (a) |
|
||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 vs. 2022 |
|
|
|
|
|
2023 vs. 2022 |
|
|||||
|
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Recurring revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Dayforce recurring, excluding float |
|
$ |
256.4 |
|
|
$ |
198.3 |
|
|
|
29.3 |
% |
|
|
0.2 |
% |
|
|
29.1 |
% |
Dayforce float |
|
|
35.7 |
|
|
|
26.2 |
|
|
|
36.3 |
% |
|
|
(— |
)% |
|
|
36.3 |
% |
Total Dayforce recurring |
|
|
292.1 |
|
|
|
224.5 |
|
|
|
30.1 |
% |
|
|
0.2 |
% |
|
|
29.9 |
% |
Powerpay recurring, excluding float |
|
|
23.1 |
|
|
|
22.4 |
|
|
|
3.1 |
% |
|
|
(— |
)% |
|
|
3.1 |
% |
Powerpay float |
|
|
5.0 |
|
|
|
4.3 |
|
|
|
16.3 |
% |
|
|
(— |
)% |
|
|
16.3 |
% |
Total Powerpay recurring |
|
|
28.1 |
|
|
|
26.7 |
|
|
|
5.2 |
% |
|
|
(0.4 |
)% |
|
|
5.6 |
% |
Total Cloud recurring |
|
|
320.2 |
|
|
|
251.2 |
|
|
|
27.5 |
% |
|
|
0.2 |
% |
|
|
27.3 |
% |
Other recurring (b) |
|
|
18.9 |
|
|
|
33.6 |
|
|
|
(43.8 |
)% |
|
|
(0.3 |
)% |
|
|
(43.5 |
)% |
Total recurring revenue |
|
|
339.1 |
|
|
|
284.8 |
|
|
|
19.1 |
% |
|
|
0.1 |
% |
|
|
19.0 |
% |
Professional services and other (c) |
|
|
60.6 |
|
|
|
51.3 |
|
|
|
18.1 |
% |
|
|
0.8 |
% |
|
|
17.3 |
% |
Total revenue |
|
$ |
399.7 |
|
|
$ |
336.1 |
|
|
|
18.9 |
% |
|
|
0.2 |
% |
|
|
18.7 |
% |
11 | Q4 2023 Earnings Release
Dayforce, Inc. (f/k/a Ceridian HCM Holding Inc.)
Revenue Financial Measures
(Unaudited)
|
|
Year Ended December 31, |
|
|
Percentage change in revenue |
|
|
Impact of |
|
|
Percentage change in revenue on a constant currency basis (a) |
|
||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 vs. 2022 |
|
|
|
|
|
2023 vs. 2022 |
|
|||||
|
|
(In millions) |
|
|
|
|
|
|
|
|
|
|
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Recurring revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Dayforce recurring, excluding float |
|
$ |
962.9 |
|
|
$ |
752.8 |
|
|
|
27.9 |
% |
|
|
(0.8 |
)% |
|
|
28.7 |
% |
Dayforce float |
|
|
148.2 |
|
|
|
62.4 |
|
|
|
137.5 |
% |
|
|
(2.1 |
)% |
|
|
139.6 |
% |
Total Dayforce recurring |
|
|
1,111.1 |
|
|
|
815.2 |
|
|
|
36.3 |
% |
|
|
(0.9 |
)% |
|
|
37.2 |
% |
Powerpay recurring, excluding float |
|
|
81.9 |
|
|
|
80.7 |
|
|
|
1.5 |
% |
|
|
(3.7 |
)% |
|
|
5.2 |
% |
Powerpay float |
|
|
18.4 |
|
|
|
12.5 |
|
|
|
47.2 |
% |
|
|
(5.6 |
)% |
|
|
52.8 |
% |
Total Powerpay recurring |
|
|
100.3 |
|
|
|
93.2 |
|
|
|
7.6 |
% |
|
|
(4.0 |
)% |
|
|
11.6 |
% |
Total Cloud recurring |
|
|
1,211.4 |
|
|
|
908.4 |
|
|
|
33.4 |
% |
|
|
(1.2 |
)% |
|
|
34.6 |
% |
Other recurring (b) |
|
|
85.9 |
|
|
|
139.2 |
|
|
|
(38.3 |
)% |
|
|
(2.0 |
)% |
|
|
(36.3 |
)% |
Total recurring revenue |
|
|
1,297.3 |
|
|
|
1,047.6 |
|
|
|
23.8 |
% |
|
|
(1.4 |
)% |
|
|
25.2 |
% |
Professional services and other (c) |
|
|
216.4 |
|
|
|
198.6 |
|
|
|
9.0 |
% |
|
|
(1.1 |
)% |
|
|
10.1 |
% |
Total revenue |
|
$ |
1,513.7 |
|
|
$ |
1,246.2 |
|
|
|
21.5 |
% |
|
|
(1.3 |
)% |
|
|
22.8 |
% |
12 | Q4 2023 Earnings Release
Dayforce, Inc. (f/k/a Ceridian HCM Holding Inc.)
Share-Based Compensation Expense and Related Employer Taxes
(Unaudited)
|
|
Three Months Ended December 31, |
|
|
Twelve Months Ended December 31, |
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
|
|
(in millions) |
|
|||||||||||||
Cost of revenue - Cloud |
|
$ |
3.5 |
|
|
$ |
2.8 |
|
|
$ |
15.4 |
|
|
$ |
14.2 |
|
Cost of revenue - Other |
|
|
0.3 |
|
|
|
0.5 |
|
|
|
1.5 |
|
|
|
1.5 |
|
Professional services and other |
|
|
3.7 |
|
|
|
3.2 |
|
|
|
17.2 |
|
|
|
13.7 |
|
Product development and management |
|
|
6.8 |
|
|
|
5.9 |
|
|
|
32.5 |
|
|
|
24.8 |
|
Sales and marketing |
|
|
4.5 |
|
|
|
5.4 |
|
|
|
23.5 |
|
|
|
24.3 |
|
General and administrative |
|
|
— |
|
|
|
13.5 |
|
|
|
47.0 |
|
|
|
66.6 |
|
Total |
|
$ |
18.8 |
|
|
$ |
31.3 |
|
|
$ |
137.1 |
|
|
$ |
145.1 |
|
13 | Q4 2023 Earnings Release
Dayforce, Inc. (f/k/a Ceridian HCM Holding 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 December 31, 2023 |
|
|||||||||||||||||||||||||
|
|
As reported |
|
|
As reported margins (a) |
|
|
Share-based |
|
|
Amortization |
|
|
Other (b) |
|
|
As adjusted (b) |
|
|
As adjusted margins (a) |
|
|||||||
|
|
(Dollars in millions, except per share data) |
|
|||||||||||||||||||||||||
Cost of Cloud recurring revenue |
|
$ |
73.7 |
|
|
|
77.0 |
% |
|
$ |
3.5 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
70.2 |
|
|
|
78.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating profit |
|
$ |
38.8 |
|
|
|
9.7 |
% |
|
$ |
18.8 |
|
|
$ |
27.8 |
|
|
$ |
(6.5 |
) |
|
$ |
78.9 |
|
|
|
19.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income |
|
$ |
45.6 |
|
|
|
11.4 |
% |
|
$ |
18.8 |
|
|
$ |
27.8 |
|
|
$ |
(11.9 |
) |
|
$ |
80.3 |
|
|
|
20.1 |
% |
Interest expense, net |
|
|
8.9 |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8.9 |
|
|
|
|
||
Income tax benefit (c) |
|
|
(10.1 |
) |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
(10.6 |
) |
|
|
|
||
Depreciation and amortization |
|
|
48.4 |
|
|
|
|
|
|
— |
|
|
|
27.8 |
|
|
|
— |
|
|
|
20.6 |
|
|
|
|
||
EBITDA |
|
$ |
92.8 |
|
|
|
|
|
$ |
18.8 |
|
|
$ |
— |
|
|
$ |
(12.4 |
) |
|
$ |
99.2 |
|
|
|
24.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income per share - diluted (d) |
|
$ |
0.29 |
|
|
|
|
|
$ |
0.12 |
|
|
$ |
0.17 |
|
|
$ |
(0.07 |
) |
|
$ |
0.50 |
|
|
|
|
14 | Q4 2023 Earnings Release
|
|
Three Months Ended December 31, 2022 |
|
|||||||||||||||||||||||||
|
|
As reported |
|
|
As reported margins (a) |
|
|
Share-based |
|
|
Amortization |
|
|
Other (b) |
|
|
As adjusted (b) |
|
|
As adjusted margins (a) |
|
|||||||
|
|
(Dollars in millions, except per share data) |
|
|||||||||||||||||||||||||
Cost of Cloud recurring revenue |
|
$ |
65.3 |
|
|
|
74.0 |
% |
|
$ |
2.8 |
|
|
$ |
— |
|
|
$ |
2.6 |
|
|
$ |
59.9 |
|
|
|
76.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating profit |
|
$ |
3.3 |
|
|
|
1.0 |
% |
|
$ |
31.3 |
|
|
$ |
8.0 |
|
|
$ |
9.1 |
|
|
$ |
51.7 |
|
|
|
15.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net (loss) income |
|
$ |
(5.2 |
) |
|
|
(1.5 |
)% |
|
$ |
31.3 |
|
|
$ |
8.0 |
|
|
$ |
1.8 |
|
|
$ |
35.9 |
|
|
|
10.7 |
% |
Interest expense, net |
|
|
8.7 |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8.7 |
|
|
|
|
||
Income tax expense (c) |
|
|
2.7 |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(3.8 |
) |
|
|
6.5 |
|
|
|
|
||
Depreciation and amortization |
|
|
24.6 |
|
|
|
|
|
|
— |
|
|
|
8.0 |
|
|
|
— |
|
|
|
16.6 |
|
|
|
|
||
EBITDA |
|
$ |
30.8 |
|
|
|
|
|
$ |
31.3 |
|
|
$ |
— |
|
|
$ |
5.6 |
|
|
$ |
67.7 |
|
|
|
20.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net (loss) income per share - diluted (d) |
|
$ |
(0.03 |
) |
|
|
|
|
$ |
0.20 |
|
|
$ |
0.05 |
|
|
$ |
0.01 |
|
|
$ |
0.23 |
|
|
|
|
15 | Q4 2023 Earnings Release
|
|
Year Ended December 31, 2023 |
|
|||||||||||||||||||||||||
|
|
As reported |
|
|
As reported margins (a) |
|
|
Share-based |
|
|
Amortization |
|
|
Other (b) |
|
|
As adjusted (b) |
|
|
As adjusted margins (a) |
|
|||||||
|
|
(Dollars in millions, except per share data) |
|
|||||||||||||||||||||||||
Cost of Cloud recurring revenue |
|
$ |
278.5 |
|
|
|
77.0 |
% |
|
$ |
15.4 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
263.1 |
|
|
|
78.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating profit |
|
$ |
133.1 |
|
|
|
8.8 |
% |
|
$ |
137.1 |
|
|
$ |
60.5 |
|
|
$ |
9.1 |
|
|
$ |
339.8 |
|
|
|
22.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income |
|
$ |
54.8 |
|
|
|
3.6 |
% |
|
$ |
137.1 |
|
|
$ |
60.5 |
|
|
$ |
(13.7 |
) |
|
$ |
238.7 |
|
|
|
15.8 |
% |
Interest expense, net |
|
|
36.1 |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
36.1 |
|
|
|
|
||
Income tax expense (c) |
|
|
41.2 |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(22.2 |
) |
|
|
63.4 |
|
|
|
|
||
Depreciation and amortization |
|
|
132.5 |
|
|
|
|
|
|
— |
|
|
|
60.5 |
|
|
|
— |
|
|
|
72.0 |
|
|
|
|
||
EBITDA |
|
$ |
264.6 |
|
|
|
|
|
$ |
137.1 |
|
|
$ |
— |
|
|
$ |
8.5 |
|
|
$ |
410.2 |
|
|
|
27.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net income per share - diluted (d) |
|
$ |
0.35 |
|
|
|
|
|
$ |
0.86 |
|
|
$ |
0.38 |
|
|
$ |
(0.09 |
) |
|
$ |
1.51 |
|
|
|
|
|
|
Year Ended December 31, 2022 |
|
|||||||||||||||||||||||||
|
|
As reported |
|
|
As reported margins (a) |
|
|
Share-based |
|
|
Amortization |
|
|
Other (b) |
|
|
As adjusted (b) |
|
|
As adjusted margins (a) |
|
|||||||
|
|
(Dollars in millions, except per share data) |
|
|||||||||||||||||||||||||
Cost of Cloud recurring revenue |
|
$ |
254.4 |
|
|
|
72.0 |
% |
|
$ |
14.2 |
|
|
$ |
— |
|
|
$ |
19.5 |
|
|
$ |
220.7 |
|
|
|
75.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating (loss) profit |
|
$ |
(25.8 |
) |
|
|
(2.1 |
)% |
|
$ |
145.1 |
|
|
$ |
30.9 |
|
|
$ |
46.0 |
|
|
$ |
196.2 |
|
|
|
15.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net (loss) income |
|
$ |
(73.4 |
) |
|
|
(5.9 |
)% |
|
$ |
145.1 |
|
|
$ |
30.9 |
|
|
$ |
17.9 |
|
|
$ |
120.5 |
|
|
|
9.7 |
% |
Interest expense, net |
|
|
28.6 |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
28.6 |
|
|
|
|
||
Income tax expense (c) |
|
|
10.5 |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
(32.7 |
) |
|
|
43.2 |
|
|
|
|
||
Depreciation and amortization |
|
|
89.0 |
|
|
|
|
|
|
— |
|
|
|
30.9 |
|
|
|
— |
|
|
|
58.1 |
|
|
|
|
||
EBITDA |
|
$ |
54.7 |
|
|
|
|
|
$ |
145.1 |
|
|
$ |
— |
|
|
$ |
50.6 |
|
|
$ |
250.4 |
|
|
|
20.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net (loss) income per share - diluted (d) |
|
$ |
(0.48 |
) |
|
|
|
|
$ |
0.93 |
|
|
$ |
0.20 |
|
|
$ |
0.11 |
|
|
$ |
0.77 |
|
|
|
|
16 | Q4 2023 Earnings Release
Use of Non-GAAP Financial Measures
Dayforce uses certain non-GAAP financial measures in this release including:
Non-GAAP Financial Measure |
|
GAAP Financial Measure |
EBITDA |
|
Net income (loss) |
Adjusted EBITDA |
|
Net income (loss) |
Adjusted EBITDA margin |
|
Net profit margin |
Adjusted Cloud recurring gross margin |
|
Cloud recurring gross margin |
Adjusted operating profit |
|
Operating profit (loss) |
Adjusted operating profit margin |
|
Operating profit (loss) margin |
Adjusted net income |
|
Net income (loss) |
Adjusted net profit margin |
|
Net profit margin |
Adjusted diluted net income per share |
|
Diluted net income (loss) per share |
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 |
Cloud annualized retention rate |
|
No directly comparable GAAP measure |
Dayforce revenue retention rate |
|
No directly comparable GAAP measure |
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 is a component of certain performance based equity awards for its named executive officers. 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:
17 | Q4 2023 Earnings Release
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
18 | Q4 2023 Earnings Release