NYSE$DAY

Dayforce Inc · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Second quarter financial performance was strong with increased demand for Dayforce.

Ceridian announced its Q2 2020 financial results, reporting Dayforce recurring services revenue of $118.5 million, up 15.7% year-over-year. Total revenue was $192.6 million, a decline of 1.9%. Net income was $5.5 million, and diluted net income per share was $0.04.

  • Dayforce recurring services revenue increased by 15.7% year-over-year, reaching $118.5 million.
  • Excluding float revenue, Dayforce recurring services revenue grew by 23.3% year-over-year to $110.2 million.
  • Total revenue decreased by 1.9% year-over-year to $192.6 million.
  • Operating profit was $4.0 million, while adjusted EBITDA was $37.5 million, down 14.8% year-over-year.

Headline financials

Total Revenue

$193M

Previous: $196M-1.9%
EPS (adj)

$0.13

Previous: $0.12+8.3%
Live Dayforce customers

4.6K

Previous: 4.0K+14.9%
Capital Expenditures

-$9.9M

Previous: -$7.7M-28.6%
Free Cash Flow

$14M

Previous: $2.5M+460.0%
Net Income

$5.5M

Previous: $6.3M-12.7%
Operating Income

$4M

Previous: $18.7M-78.6%
Gross Profit

$78.6M

Previous: $88M-10.7%
Cash & Equivalents

$986M

Previous: $2.13B-53.7%
Total Assets

$5.85B

Previous: $6.73B-13.0%
Stock-Based Comp

$15.3M

Previous: $9.6M+59.4%

Revenue & EPS history

Dayforce · Revenue · Quarterly

$193M

Q2 2020-1.9%vs Q2 2019
Beat estimate in 11 of 13 quarters(85%)
ActualEstimate

Revenue by segment

Dayforce · $193M total across 4 segments · Q2 2020

  • Dayforce recurring
    $119M+15.7%
  • Professional services
    $33.5M
  • Other recurring
    $24.4M-39.3%
  • Powerpay recurring
    $16.2M-22.5%

Forward guidance

Ceridian issued guidance for the third quarter of 2020, expecting Dayforce recurring services revenue of $118 million to $120 million and total revenue of $198 million to $203 million.

Tailwinds

  • Dayforce recurring services revenue is expected to increase approximately 8% to 10% on a GAAP and constant currency basis.
  • Excluding float revenue, Dayforce recurring services revenue is expected to grow approximately 14% to 16% on a GAAP and constant currency basis.
  • Dayforce revenue is projected to increase approximately 8% to 10% on a GAAP basis and 8% to 11% on a constant currency basis.
  • Excluding float revenue, Dayforce revenue is expected to grow approximately 12% to 14% on a GAAP basis and 13% to 15% on a constant currency basis.
  • Cloud revenue is anticipated to increase approximately 5% to 7% on a GAAP basis and 5% to 8% on a constant currency basis.

Headwinds

  • Total revenue is expected to decline approximately 2% to flat on a GAAP basis.
  • Total revenue is expected to decline approximately 1% to an increase of approximately 1% on a constant currency basis.
  • Float revenue is expected to be approximately $7 million within Dayforce revenue.
  • Float revenue is expected to be $9 million within Cloud revenue.
  • Float revenue is expected to be $10 million within total revenue.

Historical earnings impact

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

Avg. return before/after earnings

Based on 15 quarterly earnings reports

Historical avg

-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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