Executive Summary

Q4 2023 delivered in line or above guidance: total revenue $399.7M (+18.9% YoY), Dayforce recurring $292.1M (+30.1% YoY), Cloud recurring gross margin 77.0% (adjusted 78.1%) . Adjusted EBITDA hit $99.2M and adjusted diluted EPS was $0.50; GAAP diluted EPS was $0.29 .
Versus prior quarter: revenue grew to $399.7M from $377.5M; adjusted EBITDA moderated to $99.2M from $107.2M as float revenue (Q4 $41.2M vs Q3 $38.8M) and recurring mix shifted; margins remained strong (Cloud recurring GM 77.0% vs 77.0% in Q3) .
2024 outlook introduced: Q1 revenue $424–$427M, FY revenue $1,720–$1,730M; Dayforce recurring ex-float +20–21% for Q1 and FY; FY adjusted EBITDA $480–$495M (27.9–28.6% margin) .
Management emphasized record enterprise go-lives, cash flow strength, and unified rebrand to Dayforce; CEO: “another strong quarter underpinned by record enterprise go-lives,” CFO: “results delivered predictably across all guided metrics” .
Estimates context: S&P Global consensus was unavailable via our system for CDAY this quarter; we benchmarked against company guidance and prior-quarter guidance instead.

What Went Well and What Went Wrong

What Went Well

Record operating performance: Dayforce recurring revenue +30.1% YoY to $292.1M; total revenue +18.9% YoY to $399.7M; adjusted cloud recurring gross margin improved to 78.1% (from 76.2% YoY) .
Profitability expansion: adjusted operating profit $78.9M (19.7% margin) vs $51.7M (15.4%) prior year; adjusted EBITDA $99.2M vs $67.7M prior year .
Management confidence and execution: “delivered predictably across all guided metrics” (CFO) and “record enterprise go-lives” (CEO), reinforcing operational cadence and pipeline conversion .

What Went Wrong

Professional services cost intensity persisted: Q4 professional services and other revenue $60.6M with cost of professional services and other $68.6M, reflecting continued pressure on services margins .
Other recurring continues to decline due to legacy sunsetting: Q4 Other recurring fell 43.8% YoY to $18.9M as legacy solutions sunset (consistent with guidance narrative) .
Estimates/market context: Wall Street consensus data via S&P Global was unavailable in our system this quarter, limiting precise beat/miss quantification vs external estimates; internal benchmarking shows delivery within/above guidance ranges .

Financial Results

Metric	Q2 2023	Q3 2023	Q4 2023
Total Revenue ($USD Millions)	$365.9	$377.5	$399.7
YoY Growth (%)	+21.5%	+19.6%	+18.9%
Total Recurring Revenue ($USD Millions)	$314.9	$325.4	$339.1
Dayforce Recurring ex Float ($USD Millions)	$231.3	$245.6	$256.4
Dayforce Float ($USD Millions)	$36.9	$34.0	$35.7
Powerpay Recurring ex Float ($USD Millions)	$19.7	$19.6	$23.1
Powerpay Float ($USD Millions)	$4.4	$4.4	$5.0
Other Recurring ($USD Millions)	$22.6	$21.8	$18.9
Professional Services & Other ($USD Millions)	$51.0	$52.1	$60.6
Cloud Recurring Gross Margin (%)	76.7%	77.0%	77.0%
Adjusted Cloud Recurring GM (%)	78.1%	78.3%	78.1%
Operating Profit ($USD Millions)	$29.4	$26.5	$38.8
Adjusted Operating Profit ($USD Millions)	$83.0	$89.4	$78.9
Net Income (Loss) ($USD Millions)	$3.1	$(3.8)	$45.6
Adjusted Net Income ($USD Millions)	$50.8	$58.3	$80.3
Diluted EPS (GAAP) ($USD)	$0.02	$(0.02)	$0.29
Adjusted Diluted EPS ($USD)	$0.32	$0.37	$0.50
Adjusted EBITDA ($USD Millions)	$98.4	$107.2	$99.2
Weighted Avg Diluted Shares (Millions)	157.6	155.7	159.2

Segment/KPI trends:

KPI	Q2 2023	Q3 2023	Q4 2023
Live Dayforce Customers	6,272	6,346	6,393
Dayforce RR per Customer (TTM, $)	$131,693	$138,838	$146,771
Dayforce Wallet: Signed / Live Customers	1,640 / 1,010	1,760 / 1,060	1,860+ / 1,150+

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	Q4 2023	$398–$401M (Nov 1)	Actual $399.7M	Maintained/Delivered in range
Dayforce Recurring ex Float	Q4 2023	$255–$257M	Actual $256.4M	Maintained/Delivered in range
Float Revenue	Q4 2023	$39M	Actual $41.2M	Beat (above guidance)
Adjusted EBITDA	Q4 2023	$97–$99M	Actual $99.2M	Beat (top end)
Total Revenue	Q1 2024	—	$424–$427M (+14–15%)	New
Dayforce Recurring ex Float	Q1 2024	—	$276–$279M (+20–22%)	New
Float Revenue	Q1 2024	—	$55M	New
Adjusted EBITDA	Q1 2024	—	$123–$126M (29.0–29.5%)	New
Total Revenue	FY 2024	—	$1,720–$1,730M (+14%)	New
Dayforce Recurring ex Float	FY 2024	—	$1,160–$1,165M (+20–21%)	New
Float Revenue	FY 2024	—	$174M	New
Adjusted EBITDA	FY 2024	—	$480–$495M (27.9–28.6%)	New

Earnings Call Themes & Trends

Note: The Q4 2023 earnings call transcript (Document ID 19) could not be retrieved due to a database inconsistency. Themes below reflect company materials across Q2–Q4 press releases.

Topic	Previous Mentions (Q2 & Q3)	Current Period (Q4)	Trend
AI/Technology Initiatives	Introduced Dayforce Co-Pilot (GenAI), Autonomous Payroll, HR Service Delivery, Alumni Network, Exchange marketplace at INSIGHTS 2023	Product roadmap adds Mobile Shift Experience, Benefits expansion (Ireland), Entitlement Tracer, Candidate Experience, Automated Engagement Surveys, Career Explorer Insights	Broadening feature set; continued cadence
Macro/Float Revenue Tailwind	Float yield increase; Q2 float $41.8M; Q3 float $38.8M	Q4 float revenue $41.2M; FY24 float guidance $174M; Q1 $55M	Sustained tailwind; laddered portfolio
Legacy Sunsetting/Other Recurring	Guided declines in “Other” recurring due to sunsetting legacy solutions (APJ & NA)	Other recurring down 43.8% YoY; FY24 outlook mid-single-digit decline ex-float	Ongoing managed sunset
Regional/Global Scale	Multi-country wins (EMEA/APJ expansions) and global payroll extensibility	Customer go-lives across global enterprises; continued large-scale deployments	Scaling globally
Internal Controls/Reporting	Prior period correction and material weaknesses disclosed; remediation targeted by year-end	No impact to operating results; continued remediation context into Q4	Remediation progressing

Management Commentary

CEO David Ossip: “Dayforce delivered another strong quarter underpinned by record enterprise go-lives and operating cash flows…confident about our path ahead as our entire community is fully united around a brand new Dayforce.”
CFO Jeremy Johnson: “Our fourth quarter results were delivered predictably across all guided metrics…we maintained strong revenue growth rates, showed improvement across all key measures of profitability, and delivered operating cash flow at record levels.”
Leadership changes supporting strategy/finance: Jeremy Johnson appointed CFO effective Jan 1, 2024; Justine Janssen appointed Chief Strategy Officer effective Dec 4, 2023 .

Q&A Highlights

Unable to provide Q&A themes for Q4 2023 as the earnings call transcript (Document ID 19) could not be retrieved due to a database inconsistency. We can supplement when the transcript becomes accessible.

Estimates Context

S&P Global/Capital IQ consensus estimates for CDAY were unavailable via our system this quarter (mapping error). As a result, we benchmarked results versus company guidance and prior-quarter guidance rather than external estimates. Guidance comparisons show delivery in range for total revenue and Dayforce recurring ex-float, and above guidance for float revenue and adjusted EBITDA .

Key Takeaways for Investors

Strong recurring growth and margin quality: Dayforce recurring +30.1% YoY, Cloud recurring GM 77.0% (adjusted 78.1%) underpin durable profitability; adjusted operating margin expanded vs prior year .
Guidance-in-line execution: Q4 delivered within/above guidance; float revenue and adjusted EBITDA at/above the top end—supportive of year-end confidence .
2024 setup: FY revenue +14% implied; Dayforce recurring ex-float +20–21%; FY adjusted EBITDA $480–$495M, suggesting continued scale benefits while investing in platform expansion .
Product cadence accelerates: sequential feature launches (Mobile Shift, Benefits expansion, Candidate Experience, Surveys, Career Explorer Insights) strengthen differentiation and cross-sell potential .
Transition away from legacy: Other recurring declines are planned; mix shifts toward Dayforce and Powerpay; watch services cost discipline to preserve consolidated margins .
Float remains a tailwind near-term: laddered portfolio and rate backdrop support FY24 float ($174M), but investors should monitor rate normalization risk .
Governance/controls: Prior material weaknesses identified; company indicates no impact to operating results and expects remediation—monitor disclosures in subsequent filings .

Dayforce, Inc. (CDAY)·Q4 2023 Earnings Summary