NYSE$DAY

Dayforce Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Ceridian's Q4 2022 earnings were reported, showcasing strong growth in Dayforce recurring revenue and overall financial performance.

Ceridian reported strong Q4 2022 results, with Dayforce recurring revenue increasing by 31.7% year-over-year (34.7% on a constant currency basis) and total revenue up by 19.1% (23.0% on a constant currency basis). The company exceeded its guidance across all metrics, driven by Dayforce recurring revenue momentum, operating profit expansion, and increased cash flow generation.

  • Dayforce recurring revenue increased by 31.7% year-over-year, or 34.7% on a constant currency basis.
  • Total revenue increased by 19.1% year-over-year, or 23.0% on a constant currency basis.
  • Operating profit was $3.3 million, compared to $2.6 million in the prior year.
  • Net loss was $5.2 million, compared to $9.5 million in the prior year.

Headline financials

Total Revenue

$336M

Previous: $282M+19.1%
EPS (adj)

$0.23

Previous: $0.06+283.3%
Live Dayforce customers

6.0K

Previous: 5.4K+10.3%
Net Income

-$5.2M

Previous: -$9.5M+45.3%
Operating Income

$3.3M

Previous: $2.6M+26.9%
Gross Profit

$135M

Previous: $104M+30.0%
Cash & Equivalents

$432M

Previous: $368M+17.5%
Total Assets

$7.92B

Previous: $7.17B+10.5%
Stock-Based Comp

$31.3M

Previous: $29.8M+5.0%

Revenue & EPS history

Dayforce · Revenue · Quarterly

$336M

Q4 2022+19.1%vs Q4 2021
Beat estimate in 13 of 15 quarters(87%)
ActualEstimate

Revenue by segment

Dayforce · $336M total across 4 segments · Q4 2022

  • Dayforce recurring
    $225M+31.7%
  • Professional services
    $51.3M+1.6%
  • Other recurring
    $33.6M-7.7%
  • Powerpay recurring
    $26.7M+7.7%

Forward guidance

Ceridian provided guidance for Q1 2023 and full year 2023, including revenue and adjusted EBITDA targets.

Tailwinds

  • Total revenue of $359 million to $363 million, or an increase of 22% to 24% on a GAAP basis and 25% to 26% on a constant currency basis for Q1 2023.
  • Dayforce recurring revenue, excluding float of $222 million to $224 million, or an increase of 23% to 24% on a GAAP basis and 25% to 26% on a constant currency basis for Q1 2023.
  • Adjusted EBITDA of $92 million to $95 million for Q1 2023.
  • Total revenue of $1,480 million to $1,500 million, or an increase of 19% to 20% on a GAAP basis and 20% to 21% on a constant currency basis for FY 2023.
  • Dayforce recurring revenue, excluding float of $936 million to $946 million, or an increase of 24% to 26% on a GAAP basis and 25% to 27% on a constant currency basis for FY 2023.

Headwinds

  • Float revenue of $45 million for Q1 2023
  • Adjusted EBITDA of $360 million to $375 million for FY 2023.
  • Expects Bureau recurring revenue excluding float to decline greater than 40% on a GAAP basis and on a constant currency basis as a result of tax migration and the sunsetting of certain legacy products for Q1 2023.
  • Expects PowerPay recurring revenue excluding float to remain flat on a GAAP basis and to increase 5 to 6% on a constant currency basis for Q1 2023.
  • Expects Bureau recurring revenue excluding float to decline greater than 38% on a GAAP basis and to decline greater than 36% on a constant currency basis as a result of tax migration and the sunsetting of certain legacy products for FY 2023.

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 Q4 2022

Historical avgQ4 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

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