NYSE$DAY

Dayforce Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Ceridian's Q1 2023 results were reported, demonstrating strong growth in Dayforce recurring revenue and exceeding profitability objectives.

Ceridian reported a strong first quarter in 2023, with total revenue of $370.6 million, representing a 26.4% increase year-over-year. Dayforce recurring revenue increased by 43.8% year-over-year, reaching $271.2 million. The company's operating profit was $38.4 million, and net income was $9.9 million.

  • Total revenue increased by 26.4% year-over-year, reaching $370.6 million.
  • Dayforce recurring revenue grew by 43.8% year-over-year, amounting to $271.2 million.
  • Operating profit reached $38.4 million, a significant improvement from the previous year's operating loss.
  • 6,179 Dayforce customers were live on the platform as of March 31, 2023.

Headline financials

Total Revenue

$371M

Previous: $293M+26.4%
EPS (adj)

$0.31

Previous: $0.13+138.5%
Live Dayforce customers

6.2K

Previous: 5.6K+10.2%
Capital Expenditures

-$6.5M

Previous: -$2.1M-209.5%
Free Cash Flow

$4.8M

Previous: $3.4M+41.2%
Net Income

$9.9M

Previous: -$27.4M+136.1%
Operating Income

$38.4M

Previous: -$18.9M+303.2%
Gross Profit

$160M

Previous: $103M+55.5%
Cash & Equivalents

$429M

Previous: $355M+20.8%
Total Assets

$10.1B

Previous: $11.1B-9.0%
Stock-Based Comp

$40.2M

Previous: $35.5M+13.2%

Revenue & EPS history

Dayforce · Revenue · Quarterly

$371M

Q1 2023+26.4%vs Q1 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Dayforce · $371M total across 4 segments · Q1 2023

  • Dayforce recurring
    $271M+43.8%
  • Professional services
    $52.7M+16.1%
  • Powerpay recurring
    $24.1M+11.6%
  • Other recurring
    $22.6M-40.1%

Forward guidance

Ceridian issued guidance for the second quarter and full year of 2023. Second quarter total revenue is expected to be $356 million to $360 million, an increase of 18% to 20%. Full year total revenue is expected to be $1,480 million to $1,500 million, an increase of 19% to 20%.

Tailwinds

  • Total revenue is expected to increase by 18% to 20% in the second quarter.
  • Dayforce recurring revenue, excluding float, is expected to increase by 22% to 23% in the second quarter.
  • Tax migration from legacy infrastructure is expected to contribute approximately 400 basis points of growth in the second quarter.
  • Total revenue is expected to increase by 19% to 20% for the full year.
  • Dayforce recurring revenue, excluding float, is expected to increase by 25% to 26% for the full year.

Headwinds

  • Other recurring revenue is expected to decline approximately 36% to 38% in the second quarter.
  • PowerPay recurring revenue is expected to decline low single digits in the second quarter.
  • Tax migration from legacy infrastructure is expected to contribute approximately 460 basis points of growth in fiscal year 2023.
  • Other recurring revenue is expected to decline approximately 35% to 38% for the full year.
  • PowerPay recurring revenue is expected to decline low single digits for the full year.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-1.1%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+0.4%

Avg return

30 days after

42%

14 / 33 earnings

Positive

+17.4%

Q2 2022

Best reaction

-15.4%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025+0.0%+0.2%+1.1%
Q2 2025+0.5%-6.0%+29.9%
Q1 2025-5.9%+2.7%+4.1%
Q4 2024-8.0%-8.4%-22.8%
Q3 2024+8.9%+15.6%+22.4%
Q2 2024+5.4%-1.4%+6.4%
Q1 2024-5.9%-5.3%-19.4%
Q4 2023-1.8%+2.1%-6.2%
Q3 2023+4.8%+2.0%+7.7%
Q2 2023+1.5%+4.0%+3.7%
Q1 2023-9.9%-7.6%+2.3%
Q4 2022+3.6%+3.4%-9.5%
Q3 2022-3.1%-12.3%+6.4%
Q2 2022+17.4%+19.3%+5.0%
Q1 2022-1.2%-4.0%-3.6%
Q4 2021-0.6%-9.5%-20.6%
Q3 2021-6.7%
Q2 2021+1.2%
Q1 2021-1.1%
Q4 2020-10.8%
Q3 2020+2.3%
Q2 2020-9.6%
Q1 2020+7.4%
Q4 2019-15.4%
Q3 2019+9.6%
Q2 2019+2.3%
Q1 2019-6.9%
Q4 2018-0.3%
Q3 2018+0.2%
Q3 2017+0.2%
Q2 2018-10.0%
Q4 2017-1.1%
Q1 2018-3.4%
Q2 2017
Q1 2017

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