NYSE$DAY

Dayforce Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Ceridian's financial performance exceeded expectations despite economic headwinds from the pandemic, with Dayforce recurring services revenue growing significantly excluding float revenue.

Ceridian reported a slight increase in total revenue for Q4 2020, with significant growth in Dayforce recurring services revenue excluding float revenue. The company's cloud revenue also saw growth, and the number of Dayforce customers increased. However, the company reported a net loss for the quarter, and Adjusted EBITDA declined.

  • Dayforce recurring services revenue grew by more than 19% excluding float revenue.
  • Cloud revenue increased, driven by Dayforce and Powerpay.
  • The number of Dayforce customers live on the platform increased to 4,906.
  • The company continues to invest in product development and sales & marketing.

Headline financials

Total Revenue

$223M

Previous: $222M+0.5%
EPS (adj)

$0.09

Previous: $0.08+12.5%
Live Dayforce customers

4.9K

Previous: 4.4K+12.4%
Net Income

-$17.3M

Previous: -$1.5M-1053.3%
Operating Income

-$21.9M

Previous: $19.7M-211.2%
Gross Profit

$85.5M

Previous: $97.8M-12.6%
Cash & Equivalents

$188M

Previous: $281M-33.1%
Total Assets

$6.7B

Previous: $6.09B+10.1%
Stock-Based Comp

$19.5M

Previous: $10.5M+85.7%

Revenue & EPS history

Dayforce · Revenue · Quarterly

$223M

Q4 2020+0.5%vs Q4 2019
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Dayforce · $223M total across 4 segments · Q4 2020

  • Dayforce recurring
    $131M+14.5%
  • Professional services
    $41.3M-9.0%
  • Other recurring
    $27.7M-25.3%
  • Powerpay recurring
    $22.9M-8.4%

Forward guidance

For the first quarter of 2021, Ceridian anticipates Dayforce recurring services revenue between $141 million and $142 million, and Adjusted EBITDA between $32 million and $36 million.

Tailwinds

  • Dayforce recurring services revenue is expected to grow approximately 10% to 11% on a GAAP basis.
  • Excluding float revenue, Dayforce recurring services revenue is expected to grow approximately 18% to 19% on both a GAAP and constant currency basis.
  • Dayforce revenue of $176 million to $178 million is anticipated.
  • Excluding float revenue, Dayforce revenue is expected to grow approximately 10% to 11% on a GAAP basis and 9% to 10% on a constant currency basis.
  • Cloud revenue of $194 million to $197 million is expected.

Headwinds

  • Total revenue is expected to decline approximately 1% to an increase of approximately 1% on a GAAP basis.
  • Total revenue is expected to decline approximately 2% to flat on a constant currency basis.
  • Float revenue is expected to be approximately $6 million within Dayforce revenue.
  • Float revenue is expected to be $8 million within Cloud revenue.
  • Float revenue is expected to be $9 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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