NYSE$DAY

Dayforce Inc · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Dayforce reported strong Q4 2024 results with significant revenue growth and increased profitability.

Dayforce reported a strong fourth quarter in 2024, marked by a 16% increase in total revenue to $465.2 million and a 19% increase in Dayforce recurring revenue to $347.9 million. The company's adjusted EBITDA rose to $129.2 million, representing a 27.8% margin. The company also issued guidance for Q1 and full year 2025.

  • Total revenue increased by 16% year-over-year to $465.2 million.
  • Dayforce recurring revenue grew by 19% year-over-year to $347.9 million.
  • Cloud recurring gross margin improved to 80.0%.
  • Adjusted EBITDA increased to $129.2 million, with a margin of 27.8%.

Headline financials

Total Revenue

$465M

Previous: $400M+16.4%
EPS (adj)

$0.60

Previous: $0.50+20.0%
Live Dayforce customers

6.9K

Previous: 6.4K+7.6%
Capital Expenditures

-$26.8M

Previous: -$26.1M-2.7%
Net Income

$10.8M

Previous: $45.6M-76.3%
Operating Income

$28.5M

Previous: $38.8M-26.5%
Gross Profit

$239M

Previous: $170M+40.8%
R&D Expense

$57M

Previous: $56.4M+1.1%

Revenue & EPS history

Dayforce · Revenue · Quarterly

$465M

Q4 2024+16.4%vs Q4 2023
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

Dayforce provided guidance for the first quarter and full year 2025, including revenue and adjusted EBITDA margin targets.

Tailwinds

  • Q1 2025 total revenue, excluding float, is expected to be $421 million to $427 million, an increase of approximately 13.5% to 15% on a GAAP basis.
  • Q1 2025 Adjusted EBITDA margin is expected to be 31% to 32%.
  • Full year 2025 total revenue, excluding float, is projected to be $1,745 million to $1,760 million, an increase of approximately 11.9% to 12.8% on a GAAP basis.
  • Full year 2025 Dayforce recurring revenue, excluding float, is expected to be $1,315 million to $1,340 million, an increase of approximately 13.4% to 15.5% on a GAAP basis.
  • Full year 2025 Adjusted EBITDA margin is expected to be 32%.

Headwinds

  • Guidance assumes stable economic conditions.
  • Guidance assumes stable competitive environment in the HCM market.
  • Guidance assumes stable demand for HCM solutions.
  • Guidance assumes stable implementation capabilities and cycle times.
  • Guidance assumes stable foreign exchange rates.

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 2024

Historical avgQ4 2024

-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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