Dayforce Reports First Quarter 2025 Results(1)

Dayforce$(R)$ recurring revenue, excluding float, of $323 million, up 14%, or 16% on a constant currency basis

Total revenue of $482 million, up 12%, and excluding float, up 15%, or 17% on a constant currency basis

Net cash provided by operating activities of $50 million

MINNEAPOLIS and TORONTO, May 07, 2025 (GLOBE NEWSWIRE) -- Dayforce, Inc. ("Dayforce" or the "Company") $(DAY)$ (TSX:DAY), a global leader in human capital management ("HCM") technology, today announced its financial results for the first quarter ended March 31, 2025.

"We kicked off the year with strong first quarter results and excellent sales momentum," said David Ossip, Chair and CEO of Dayforce. "The Dayforce value proposition of consolidating multiple separate technologies into the single Dayforce platform continues to resonate with organizations across a broad range of industries and sizes. Our first quarter sales growth builds on our already strong fourth quarter sales performance, reinforcing our optimism for continued momentum through 2025 and beyond as we further our HCM leadership position."

"Our plan to deliver durable top line growth alongside increasing profitability and cash flow is progressing well," said Jeremy Johnson, CFO of Dayforce. "With cash from operating activities of nearly $50 million in the first quarter, we were able to repurchase approximately $30 million worth of shares during the quarter under our $500 million repurchase program. To date we have returned more than $66 million of capital to stockholders under this program."

Financial Highlights for the First Quarter 2025(1)

   -- Total revenue was $481.8 million, an increase of 11.7%, or 13.6% on a 
      constant currency basis. Excluding float, total revenue was $426.5 
      million, an increase of 15.0%, or 17.1% on a constant currency basis. 
 
   -- Dayforce recurring revenue, excluding float, was $323.1 million, an 
      increase of 14.4%, or 15.9% on a constant currency basis. 
 
   -- Operating profit was $31.0 million, compared to $40.7 million. Adjusted 
      operating profit was $132.3 million, compared to $109.1 million. 
 
   -- Net income was $14.9 million, compared to $7.1 million and net profit 
      margin was 3.1%, compared to 1.6%. Adjusted net income was $93.9 million, 
      compared to $68.0 million. 
 
   -- Adjusted EBITDA was $156.7 million, compared to $129.9 million. Adjusted 
      EBITDA margin was 32.5%, compared to 30.1%. 
 
   -- Diluted net income per share was $0.09, compared to $0.04. Adjusted 
      diluted net income per share was $0.58, compared to $0.43. 
 
   -- Net cash provided by operating activities was $49.6 million, compared to 
      $9.1 million. Operating cash flow margin was 10.3%, compared to 2.1%. 
 
   -- Free cash flow was $19.5 million, compared to $(18.8) million. Free cash 
      flow margin was 4.0%, compared to (4.4)%. 

Supplemental Detail

   -- 6,929 customers were live on the Dayforce platform as of March 31, 2025, 
      an increase of 5.4% year-over-year.2 
 
   -- Dayforce recurring revenue per customer was $167,600 for the trailing 
      twelve months ended March 31, 2025, an increase of 11.5%.3 
 
   -- The average float balance for Dayforce's customer funds during the 
      quarter was $5.86 billion and the average yield on Dayforce's float 
      balance was 3.8%. Float revenue from invested customer funds was $55.3 
      million for the three months ended March 31, 2025. 

(1) The financial highlights are on a year-over-year basis, unless otherwise stated. All financial results are reported in United States ("U.S.") dollars and in accordance with accounting principles generally accepted in the U.S. ("GAAP"), unless otherwise stated.

(2) Excluding Ascender, ADAM HCM, and eloomi.

(3) Excluding float revenue, Ascender, ADAM HCM, and eloomi revenue, and on a constant currency basis. Please refer to the "Non-GAAP Financial Measures" section for discussion of percentage change in revenue on a constant currency basis.

Recent Highlights

   -- Announced an expanded partnership with Microsoft, making the Dayforce 
      platform available in the Microsoft Azure Marketplace. 
 
   -- Named a Leader in the IDC MarketScape Worldwide Talent Acquisition 2025 
      Vendor Assessment and the Nucleus Research Enterprise HCM Value Matrix 
      2025. 
 
   -- Welcomed a large entertainment and leisure company that has chosen the 
      complete Dayforce suite as its unified HCM solution to support 61,500 
      employees across North America. 
 
   -- Welcomed a leading uniform and workplace solutions provider that selected 
      the full Dayforce suite to support its 22,000 employees across North 
      America. 
 
   -- Introduced Dayforce AI Assistant (formerly Dayforce Co-Pilot) on 
      Mobile for support on iOS and Android; enhanced the Advanced Experience 
      Hub with personalized updates; improved Dayforce Learning and Dayforce 
      Recruiting workflows for intuitive, mobile-friendly talent management; 
      launched new direct-to-bank capabilities for Dayforce Wallet, allowing 
      employees to route their pay to any personal bank account, released Total 
      Remuneration Package calculation for comprehensive compensation 
      management; and delivered compliance enhancements for global statutory 
      requirements in the United Kingdom, Singapore, Australia, and New 
      Zealand. 

Business Outlook

Based on information available as of May 7, 2025, Dayforce is issuing the following guidance for the second quarter and full year ("FY") of 2025 as indicated below. Comparisons are on a year-over-year basis, unless stated otherwise.

Second Quarter 2025 Guidance

   -- Total revenue of $454 million to $460 million. 
 
   -- Total revenue, excluding float, of $408 million to $414 million, an 
      increase of approximately 8.9% to 10.6% on a GAAP basis, or approximately 
      10% to 11% on a constant currency basis. 
 
   -- Float revenue of $46 million. 
 
   -- Adjusted EBITDA margin of 30.5% to 31.5%. 

Full Year 2025 Guidance

   -- Total revenue of $1,929 million to $1,944 million. 
 
   -- Total revenue, excluding float, of $1,749 million to $1,764 million, an 
      increase of approximately 12.1% to 13.1% on a GAAP basis, or 
      approximately 14% to 15% on a constant currency basis. 
 
   -- Dayforce recurring revenue, excluding float, of $1,317 million to $1,342 
      million, an increase of approximately 13.6% to 15.7% on a GAAP basis, or 
      approximately 15% to 17% on a constant currency basis. 
 
   -- Float revenue of $180 million. 
 
   -- Adjusted EBITDA margin of 32%. 
 
   -- Free cash flow margin of 12%. 

Please refer to the "Reconciliation of GAAP to Non-GAAP Financial Measures" section for a reconciliation of Dayforce's free cash flow margin guidance. Dayforce has not reconciled the Adjusted EBITDA margin ranges for the second quarter and full year of 2025 to the directly comparable GAAP financial measures because applicable information for the future period, on which these reconciliations would be based, is not available without unreasonable efforts due to uncertainty regarding, and the potential variability of, depreciation and amortization, share-based compensation expense and related employer taxes, changes in foreign currency exchange rates, and other items.

Foreign Exchange

For the second quarter and full year of 2025, Dayforce's guidance assumes an average U.S. dollar to key foreign currencies as follows:

 
                           Foreign    Foreign 
                          exchange   exchange 
                            rate       rate 
                           assumed    assumed    Foreign    Foreign 
              % of 2024     in Q2      in FY    exchange   exchange 
                total       2025       2025      rate in    rate in 
               revenue    guidance   guidance    Q2 2024    FY 2024 
U.S. dollar 
 to Canadian 
 dollar              21%       1.40       1.43       1.37       1.37 
U.S. dollar 
 to 
 Australian 
 dollar               4%       1.59       1.60       1.51       1.52 
U.S. dollar 
 to Great 
 British 
 pound                3%       0.76       0.79       0.79       0.78 
 

Conference Call Details

Dayforce will host a live webcast and conference call to discuss the first quarter 2025 earnings at 8:00 a.m. Eastern Time on May 7, 2025. Those wishing to participate via the webcast should access the call through the Investor Relations section of the Dayforce website. Those wishing to participate via the telephone may dial in at 877-497-9071 $(USA)$ or 201-689-8727 (International). The webcast replay will be available through the Investor Relations section of the Dayforce website.

About Dayforce

Dayforce makes work life better. Everything we do as a global leader in HCM technology is focused on enabling thousands of customers and millions of employees around the world do the work they're meant to do. With our single AI-powered people platform for HR, Pay, Time, Talent, and Analytics, organizations of all sizes and industries are benefiting from simplicity at scale with Dayforce to help unlock their full workforce potential, operate with confidence, and realize quantifiable value. To learn more, visit dayforce.com.

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