Shares of Dayforce (DAY) tumbled 5.48% in pre-market trading on Wednesday following the release of the company's first-quarter earnings report and future guidance. The human capital management technology provider's stock decline appears to be primarily driven by weaker-than-expected revenue guidance for the second quarter of 2025.

Dayforce reported solid first-quarter results, with total revenue of $481.8 million and adjusted earnings per share of $0.58. However, investors seemed to focus on the company's outlook for the second quarter, which fell short of analysts' expectations. Dayforce projected Q2 revenue between $454 million and $460 million, below the consensus estimate of $465.5 million according to LSEG IBES data.

Despite the disappointing Q2 guidance, Dayforce maintained a positive outlook for the full year 2025. The company expects total revenue for the year to be in the range of $1,929 million to $1,944 million, which is roughly in line with analysts' expectations of $1.93 billion. This suggests that while Dayforce anticipates a softer second quarter, it remains confident in its ability to accelerate growth in the latter half of the year.