NYSE$DAY

Dayforce Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Ceridian's Q4 2019 earnings were released, revealing strong growth in Dayforce revenue and recurring services gross margin.

Ceridian reported a 35.4% increase in Dayforce revenue, reaching $158.7 million, and a 30.2% increase in Dayforce recurring revenue, amounting to $114.3 million. The company ended the year with 4,363 live Dayforce customers. Net loss was $1.5 million for the quarter.

  • Dayforce revenue increased by 35.4% to $158.7 million.
  • Dayforce recurring revenue grew by 30.2% to $114.3 million.
  • Recurring services gross margin improved to 70.1%.
  • Live Dayforce customers reached 4,363.

Headline financials

Total Revenue

$222M

Previous: $200M+10.7%
EPS (adj)

$0.08

Previous: $0.07+14.3%
Live Dayforce customers

4.4K

No prior period
Dayforce revenue/customer

$131K

No prior period
Net Income

-$1.5M

Previous: -$200K-650.0%
Operating Income

$19.7M

Previous: $21.5M-8.4%
Gross Profit

$97.8M

Previous: $91.5M+6.9%
Cash & Equivalents

$281M

Previous: $218M+29.2%
Total Assets

$6.09B

Previous: $5.25B+16.0%
Stock-Based Comp

$10.5M

Previous: $5.2M+101.9%

Revenue & EPS history

Dayforce · Revenue · Quarterly

$222M

Q4 2019+10.7%vs Q4 2018
Beat estimate in 10 of 12 quarters(83%)
ActualEstimate

Revenue by segment

Dayforce · $222M total across 4 segments · Q4 2019

  • Dayforce recurring
    $114M+30.2%
  • Professional services
    $45.4M
  • Other recurring
    $37.1M-27.8%
  • Powerpay recurring
    $25M-1.2%

Forward guidance

Ceridian provided guidance for the full year 2020 and first quarter 2020, anticipating continued growth in Dayforce and Cloud revenues, while also factoring in investments for future growth.

Tailwinds

  • Dayforce revenue of $708 million to $713 million, or an increase of approximately 24% to 25%.
  • Cloud revenue of $800 million to $805 million, or an increase of approximately 21% to 22%.
  • Total revenue of $903 million to $908 million, or an increase of approximately 10%.
  • Dayforce revenue of $166 million to $168 million, or an increase of approximately 25% to 27% for Q1 2020.
  • Cloud revenue of $188 million to $190 million, or an increase of approximately 22% to 23% for Q1 2020.

Headwinds

  • Adjusted EBITDA is expected to be $185 million to $190 million, or an increase of 0% to 3%.
  • Adjusted EBITDA of $47 million to $49 million, or a decline of approximately 2% to 6% for Q1 2020.
  • Float revenue of approximately $50 million within Dayforce revenue.
  • Float revenue of approximately $62 million within Cloud revenue.
  • Total revenue of $221 million to $223 million, or an increase of approximately 8% to 9% for Q1 2020.

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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