NYSE$DAY

Dayforce Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Ceridian delivered a strong quarter, driven by Dayforce recurring revenue growth and increased revenue and profitability outlook for Q4 and fiscal year 2023.

Ceridian reported a strong third quarter with total revenue of $377.5 million, up 19.6% year-over-year, and Dayforce recurring revenue growth of 34.6%. The company raised its revenue and profitability outlook for the fourth quarter and fiscal year 2023.

  • Total revenue increased by 19.6% year-over-year to $377.5 million.
  • Dayforce recurring revenue grew by 34.6% year-over-year to $279.6 million.
  • Operating profit was $26.5 million, compared to an operating loss of $3.7 million in the prior year.
  • Adjusted operating profit was $89.4 million, compared to $50.1 million in the prior year.

Headline financials

Total Revenue

$378M

Previous: $316M+19.6%
EPS (adj)

$0.37

Previous: $0.20+85.0%
Live Dayforce customers

6.3K

Previous: 5.8K+8.5%
Capital Expenditures

-$15.4M

Previous: -$10.4M-48.1%
Free Cash Flow

$114M

Previous: $80.4M+42.0%
Net Income

-$3.8M

Previous: -$21M+81.9%
Operating Income

$26.5M

Previous: -$3.7M+816.2%
Gross Profit

$161M

Previous: $119M+34.9%
Cash & Equivalents

$510M

Previous: $408M+25.0%
Total Assets

$8.94B

Previous: $8.01B+11.7%
Stock-Based Comp

$36.3M

Previous: $39.2M-7.4%

Revenue & EPS history

Dayforce · Revenue · Quarterly

$378M

Q3 2023+19.6%vs Q3 2022
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Dayforce · $378M total across 4 segments · Q3 2023

  • Dayforce recurring
    $280M+34.6%
  • Professional services
    $52.1M+0.6%
  • Powerpay recurring
    $24M+6.2%
  • Other recurring
    $21.8M-34.7%

Forward guidance

Ceridian is issuing guidance for the fourth quarter and full year of 2023. For the fourth quarter, total revenue is expected to be $398 million to $401 million, and Dayforce recurring revenue, excluding float, is expected to be $255 million to $257 million. For the full year, total revenue is expected to be $1,512 million to $1,515 million, and Dayforce recurring revenue, excluding float, is expected to be $962 million to $964 million.

Tailwinds

  • Total revenue of $398 million to $401 million, an increase of 18% to 19% on a GAAP and a constant currency basis.
  • Dayforce recurring revenue, excluding float, of $255 million to $257 million, an increase of 29% to 30% on a GAAP and a constant currency basis.
  • Tax migration from legacy infrastructure to the same platform as Dayforce is expected to contribute approximately 430 basis points of growth.
  • Float revenue of $39 million.
  • Adjusted EBITDA of $97 million to $99 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 Q3 2023

Historical avgQ3 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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