NYSE$DAY

Dayforce Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Delivered strong results, exceeding guidance for Dayforce recurring revenue, total revenue, and Adjusted EBITDA.

Ceridian reported a slight increase in total revenue, driven by Dayforce recurring services revenue and cloud revenue growth. Net loss was $0.8 million, impacted by a one-time tax benefit in Q3 2019. Adjusted EBITDA declined due to float revenue impact.

  • Dayforce recurring services revenue increased by 12.2% year-over-year.
  • Excluding float revenue, Dayforce recurring services revenue increased by 17.9% year-over-year.
  • Cloud revenue increased by 6.8% year-over-year.
  • Net loss was $0.8 million, down $63.5 million, primarily due to a one-time tax benefit in the third quarter of 2019.

Headline financials

Total Revenue

$204M

Previous: $202M+1.0%
EPS (adj)

$0.12

Previous: $0.11+9.1%
Live Dayforce customers

4.7K

Previous: 4.2K+12.8%
Capital Expenditures

-$13.6M

Previous: -$10.8M-25.9%
Free Cash Flow

$33.7M

Previous: $13.8M+144.2%
Net Income

-$800K

Previous: $62.7M-101.3%
Operating Income

-$600K

Previous: $6.5M-109.2%
Gross Profit

$76.7M

Previous: $88.8M-13.6%
Cash & Equivalents

$1.05B

Previous: $752M+39.7%
Total Assets

$5.92B

Previous: $5.44B+8.9%
Stock-Based Comp

$18.5M

Previous: $10.4M+77.9%

Revenue & EPS history

Dayforce · Revenue · Quarterly

$204M

Q3 2020+1%vs Q3 2019
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Revenue by segment

Dayforce · $204M total across 4 segments · Q3 2020

  • Dayforce recurring
    $123M+12.2%
  • Professional services
    $36.3M
  • Other recurring
    $26.8M-26.4%
  • Powerpay recurring
    $18.6M-13.9%

Forward guidance

Ceridian provided guidance for the fourth quarter of 2020, including Dayforce recurring services revenue of $128 million to $129 million and total revenue of $215 million to $219 million.

Tailwinds

  • Dayforce recurring services revenue is expected to increase by approximately 12% to 13%.
  • Excluding float revenue, Dayforce recurring services revenue is expected to grow approximately 18% to 19%.
  • Dayforce revenue is expected to increase by approximately 5% to 6%.
  • Excluding float revenue, Dayforce revenue is expected to grow approximately 9% to 10%.
  • Adjusted EBITDA of $30 million to $34 million.

Headwinds

  • Total revenue is expected to decline by approximately 3% to 1%.
  • Float revenue is expected to be approximately $6 million within Dayforce revenue.
  • Float revenue is expected to be approximately $8 million within Cloud revenue.
  • Float revenue is expected to be approximately $9 million within total revenue.
  • Cloud revenue is expected to grow approximately 3% to 4%.

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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