NYSE$DAY

Dayforce Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Ceridian's Q2 2022 financial results were announced, demonstrating growth in Dayforce recurring revenue and expansion of cloud recurring gross margin.

Ceridian reported a 20.3% increase in total revenue, reaching $301.2 million. Dayforce recurring revenue increased by 29.0% to $194.3 million. The company's cloud recurring gross margin was 72.2%, and adjusted net income was $33.0 million, or $0.21 per share.

  • Total revenue increased by 20.3% year-over-year, reaching $301.2 million.
  • Dayforce recurring revenue grew by 29.0% year-over-year, amounting to $194.3 million.
  • Cloud revenue increased by 25.5% year-over-year, totaling $262.9 million.
  • Adjusted net income was $33.0 million, or $0.21 per share.

Headline financials

Total Revenue

$301M

Previous: $250M+20.3%
EPS (adj)

$0.21

Previous: $0.06+250.0%
Live Dayforce customers

5.7K

Previous: 5.2K+10.9%
Capital Expenditures

-$6.6M

Previous: -$5.9M-11.9%
Free Cash Flow

$32.1M

Previous: $17.2M+86.6%
Net Income

-$19.8M

Previous: -$25.8M+23.3%
Operating Income

-$6.5M

Previous: -$19.7M+67.0%
Gross Profit

$116M

Previous: $92.1M+26.0%
Cash & Equivalents

$371M

Previous: $335M+10.7%
Total Assets

$9.08B

Previous: $6.81B+33.4%
Stock-Based Comp

$38.8M

Previous: $31.4M+23.6%

Revenue & EPS history

Dayforce · Revenue · Quarterly

$301M

Q2 2022+20.3%vs Q2 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Dayforce · $301M total across 4 segments · Q2 2022

  • Dayforce recurring
    $194M+29.0%
  • Professional services
    $50.1M+18.4%
  • Other recurring
    $34.5M-6.8%
  • Powerpay recurring
    $22.3M+8.8%

Forward guidance

Ceridian provided guidance for the third quarter of 2022 and updated its full-year 2022 outlook. The outlook reflects a revised average U.S. dollar to Canadian dollar foreign exchange rate of $1.29. Dayforce recurring revenue, cloud revenue, total revenue and Adjusted EBITDA are expected to increase.

Tailwinds

  • Dayforce recurring revenue, excluding float revenue, of $188 million to $190 million or an increase of 23% to 24% on a GAAP basis, and 24% to 26% on a constant currency basis.
  • Cloud revenue of $269 million to $272 million, or an increase of 22% to 24% on a GAAP basis and 24% to 26% on a constant currency basis.
  • Total revenue of $304 million to $307 million, or an increase of 18% to 19% on a GAAP basis and 20% to 21% on a constant currency basis.
  • Float revenue of $17.5 million, an increase of 77% on a GAAP basis, and 79% on a constant currency basis.
  • Adjusted EBITDA of $48 million to $50 million.

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 Q2 2022

Historical avgQ2 2022

-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

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro