Executive Summary

Q2 2024 delivered mid-teens top-line growth: total revenue $423.3M (+15.7% YoY), Dayforce recurring revenue $321.6M (+19.9% YoY), with adjusted EBITDA $116.3M and adjusted diluted EPS $0.48 .
FY 2024 guidance was raised across key metrics (total revenue to $1.736–$1.746B; Dayforce recurring ex-float to $1.163–$1.168B; float revenue to $187M; adjusted EBITDA to $490–$505M), and Q3 2024 guidance introduced ($425–$430M revenue; adjusted EBITDA $115–$125M) .
Board authorized a $500M share repurchase program, citing undervaluation and stronger cash generation, adding a capital-allocation catalyst .
Sequentially, revenue and adjusted EBITDA stepped down vs Q1 ($431.5M, $129.9M), largely reflecting seasonality in float and operating cost cadence; cloud recurring gross margin improved to 77.7% (adjusted 78.8%) .

What Went Well and What Went Wrong

What Went Well

Dayforce recurring revenue grew 19.9% YoY to $321.6M, with cloud recurring gross margin expanding to 77.7% and adjusted cloud margin to 78.8% (“our business momentum continued”) .
Adjusted operating profit rose to $94.9M (from $83.0M YoY) and adjusted EBITDA to $116.3M (from $98.4M), reflecting operating leverage; CEO emphasized “simplicity” and platform efficiencies .
Strategic wins across large enterprise/government (e.g., Government of Canada expansion by 30,000 users) and global brands deepened adoption breadth .

What Went Wrong

GAAP profitability weakened: net loss of $1.8M vs income of $3.1M YoY; operating profit fell to $14.1M from $29.4M as G&A and sales and marketing costs increased .
Sequential softness vs Q1: total revenue $423.3M vs $431.5M and adjusted EBITDA $116.3M vs $129.9M; float revenue declined sequentially ($48.9M vs $60.7M) in line with seasonal ladder maturities .
“Other recurring” revenue declined YoY (-16.8%), consistent with legacy solution sunsetting; other expense increased to $3.0M .

Financial Results

Consolidated P&L and Key Margins

Metric	Q4 2023	Q1 2024	Q2 2024
Total Revenue ($USD Millions)	$399.7	$431.5	$423.3
GAAP Diluted EPS ($USD)	$0.29	$0.04	-$0.01
Adjusted Diluted EPS ($USD)	$0.50	$0.43	$0.48
Adjusted EBITDA ($USD Millions)	$99.2	$129.9	$116.3
Adjusted EBITDA Margin (%)	24.8%	30.1%	27.5%
Cloud Recurring Gross Margin (%)	77.0%	79.0%	77.7%
Adjusted Cloud Recurring Gross Margin (%)	78.1%	80.0%	78.8%
Operating Profit ($USD Millions)	$38.8	$40.7	$14.1
Adjusted Operating Profit ($USD Millions)	$78.9	$109.1	$94.9
GAAP Net Income (Loss) ($USD Millions)	$45.6	$7.1	-$1.8

Segment and Revenue Composition (Q2 2024 vs Q2 2023)

Metric	Q2 2023	Q2 2024
Dayforce Recurring ex Float ($USD Millions)	$231.3	$277.7
Dayforce Float ($USD Millions)	$36.9	$43.9
Total Dayforce Recurring ($USD Millions)	$268.2	$321.6
Powerpay Recurring ex Float ($USD Millions)	$19.7	$19.9
Powerpay Float ($USD Millions)	$4.4	$4.7
Total Powerpay Recurring ($USD Millions)	$24.1	$24.6
Other Recurring ($USD Millions)	$22.6	$18.8
Total Recurring Revenue ($USD Millions)	$314.9	$365.0
Professional Services & Other ($USD Millions)	$51.0	$58.3
Total Revenue ($USD Millions)	$365.9	$423.3

KPIs and Operational Metrics

KPI	Q4 2023	Q1 2024	Q2 2024
Live Dayforce Customers (#)	6,393	6,575	6,657
Dayforce Recurring Rev/Customer ($)	$146,771	$150,362	$154,998
Avg Float Balance ($USD Billions)	$4.18	$5.56	$4.74
Avg Float Yield (%)	3.9%	4.4%	4.1%
Float Revenue ($USD Millions)	$41.2	$60.7	$48.9
Free Cash Flow ($USD Millions, quarter)	—	$53.6	$72.7

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue ($USD)	FY 2024	$1.720B–$1.730B	$1.736B–$1.746B	Raised
Dayforce Recurring ex Float ($USD)	FY 2024	$1.160B–$1.165B	$1.163B–$1.168B	Raised
Float Revenue ($USD)	FY 2024	$174M	$187M	Raised
Adjusted EBITDA ($USD)	FY 2024	$480M–$495M	$490M–$505M	Raised
Total Revenue ($USD)	Q3 2024	—	$425M–$430M	New
Dayforce Recurring ex Float ($USD)	Q3 2024	—	$289M–$294M	New
Float Revenue ($USD)	Q3 2024	—	$40M	New
Adjusted EBITDA ($USD)	Q3 2024	—	$115M–$125M	New

Earnings Call Themes & Trends

Note: A Q2 2024 earnings call transcript was not available via our document tools; themes are synthesized from company press releases/8-Ks.

Topic	Previous Mentions (Q4 2023)	Previous Mentions (Q1 2024)	Current Period (Q2 2024)	Trend
AI/Technology Initiatives	New mobile shift, benefits expansion, candidate experience upgrades	Dayforce Co-Pilot AI features; Talent enhancements; platform openness	Dayforce Co-Pilot enhancements incl. RAG; 200+ compliance updates; Talent and Learning improvements	Expanding scope and AI integration
ESG/Recognition	Multiple awards incl. Gartner Leader, sustainability mentions	ESG Report launch; JUST Capital, Newsweek recognition	USA TODAY Climate Leaders #1; TIME Sustainable Companies; ESG Report launch	Strengthening recognition
Wallet/On-demand Pay	1,150 customers live by YE; high registration and usage rates	1,200+ customers live; ~25 transactions/month per user	>$4B delivered via Wallet; 1,270 customers live	Scaling adoption
Global/Regional Expansion	Deployments across APAC/EMEA; major global logos	Additional global wins and expansions	New launches in Singapore; large multi-country wins (Gov’t of Canada, U.K. brands)	Continuing global footprint
Compliance/Regulatory	Ongoing compliance capabilities	160+ global compliance updates	200+ compliance updates H1 2024	Increasing cadence

Management Commentary

David Ossip, CEO: “Our business momentum continued in the second quarter of 2024, with Dayforce recurring revenue up 20%... enabling [customers] to create significant efficiencies... while delivering a best-in-class HCM experience” .
Jeremy Johnson, CFO: “Our strong results are translating into improved cash flow generation, prompting our Board... to approve a $500 million share repurchase program” .
Jeremy Johnson, CFO (repurchase rationale): The program “reflects our belief that our shares are currently undervalued and demonstrates our confidence in the business” .

Q&A Highlights

A Q2 2024 earnings call transcript was not available via our document tools; therefore, Q&A specifics and tone shifts cannot be reliably cited for this quarter [ListDocuments, 0 results for earnings-call-transcript in July–Aug 2024].

Estimates Context

We attempted to pull S&P Global/Capital IQ Wall Street consensus for Q2 and Q3 2024, but data was unavailable due to a CIQ mapping issue for CDAY (GetEstimates error). As a result, comparisons versus consensus and estimate counts could not be provided from S&P Global for this recap [GetEstimates errors].

Key Takeaways for Investors

Solid top-line growth with Dayforce recurring +19.9% YoY and cloud margins strengthening to 77.7% (adjusted 78.8%), reinforcing platform economics .
FY24 guidance raised across revenue, ex-float recurring, float, and adjusted EBITDA, indicating management confidence in H2 trajectory .
Capital allocation turn: $500M buyback authorization adds potential technical support to shares; management cites undervaluation and improved cash generation .
Sequential softness vs Q1 (revenue and adjusted EBITDA) reflects seasonal float dynamics and higher operating costs; monitor execution into Q3 where guidance implies reacceleration .
Legacy “Other recurring” contraction continues; mix shifting toward Dayforce and Powerpay recurring, with professional services steady growth .
Watch float revenue path (Q2 $48.9M vs Q1 $60.7M) and FX assumptions (USD/CAD 1.38 in H2) for near-term earnings cadence .
With Investor Day on Nov 12 and product momentum (Co-Pilot AI, global payroll launches), narrative catalysts remain on execution and margin durability .

Dayforce, Inc. (CDAY)·Q2 2024 Earnings Summary