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    Dayforce (DAY)

    Dayforce, Inc. is a global human capital management (HCM) software company that optimizes the management of the entire employee lifecycle. The company offers a comprehensive suite of cloud-based solutions that integrate HR, payroll, benefits, workforce management, and talent management functionalities into a single application. Dayforce, Inc. targets organizations of all sizes, providing them with tools to enhance decision-making and streamline workflows.

    1. Dayforce Recurring Revenue - Provides a flagship cloud HCM platform that integrates multiple HR functionalities into a single application, offering real-time data access for decision-making.
    2. Professional Services and Other - Offers additional services that complement the core HCM platform, enhancing customer engagement and support.
    3. Powerpay Recurring Revenue - Delivers a cloud HR and payroll solution specifically designed for the Canadian small business market.
    4. Other Recurring Revenue - Includes various other recurring revenue streams that support the company's comprehensive service offerings.

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    1. Employee volumes came in slightly below expectations in Q4 due to a muted holiday spike and extreme weather events; what measures are you taking to mitigate such fluctuations going forward, and how do you anticipate these factors affecting Q1 and beyond?

    2. You plan to repurchase more than 1 million shares during 2025, effectively doubling 2024 purchases; given your goal of minimizing dilution from stock-based compensation, how does this align with your overall capital allocation strategy, especially considering the $575 million convertible debt maturing in March 2026 that you plan to retire with cash on hand?

    3. With the Canadian government deal targeting April 2025 for milestones and being on track, can you elaborate on the risks associated with this timeline and how potential delays might impact your recurring revenue growth expectations?

    4. Despite increasing adjusted EBITDA margin guidance by 100 basis points to 32% , you did not raise your free cash flow guidance; can you explain the factors limiting free cash flow growth, and how you plan to improve cash conversion moving forward?

    5. You reported 60 unit sales of your Copilot AI product after its announcement; how sustainable do you believe this early momentum is, and what strategies are in place to maintain a competitive advantage in the rapidly evolving AI-driven HCM market?

    Research analysts who have asked questions during Dayforce earnings calls.

    Brad Reback

    Stifel

    4 questions for DAY

    Also covers: ASUR, CFLT, DDOG +10 more

    Mark Marcon

    Baird

    4 questions for DAY

    Also covers: ADP, AMN, ASGN +13 more

    Mark Murphy

    JPMorgan Chase & Co.

    4 questions for DAY

    Also covers: ADBE, AKAM, CRM +21 more

    Scott Berg

    Needham & Company, LLC

    4 questions for DAY

    Also covers: AMPL, BILL, BRZE +20 more

    Bhavin Shah

    Deutsche Bank

    3 questions for DAY

    Also covers: ADSK, CLBT, EVCM +4 more

    Daniel Jester

    BMO Capital Markets

    3 questions for DAY

    Also covers: ADP, BL, INTU +9 more

    Kevin McVeigh

    Credit Suisse Group AG

    3 questions for DAY

    Also covers: ADP, ALIT, ASGN +13 more

    Raimo Lenschow

    Barclays

    3 questions for DAY

    Also covers: APPN, BASE, BIGC +33 more

    Samad Samana

    Jefferies

    3 questions for DAY

    Also covers: ADP, ALRM, AUDC +17 more

    Sitikantha Panigrahi

    Mizuho

    3 questions for DAY

    Also covers: ADSK, BSY, CDNS +13 more

    Steven Enders

    Citigroup Inc.

    3 questions for DAY

    Also covers: APPN, ASAN, BL +14 more

    Aleksandr Zukin

    Wolfe Research

    2 questions for DAY

    Also covers: ADBE, DOCU, FRSH +19 more

    Jared Levine

    TD Cowen

    2 questions for DAY

    Also covers: ASUR, G, GDYN +5 more

    Jason Celino

    KeyBanc Capital Markets

    2 questions for DAY

    Also covers: ADSK, AZPN, BSY +11 more

    Michael Turrin

    Wells Fargo

    2 questions for DAY

    Also covers: ADBE, ADSK, CFLT +27 more

    Alex Zukin

    Wolfe Research LLC

    1 question for DAY

    Also covers: ADBE, ASAN, FRSH +19 more

    Allan Verkhovski

    Scotiabank

    1 question for DAY

    Also covers: ASAN, INTU, MNDY +5 more

    Jake Roberge

    William Blair & Company, L.L.C

    1 question for DAY

    Also covers: APPN, ARCT, BL +12 more

    Ryan Krieger

    Wolfe Research

    1 question for DAY

    Also covers: BL, OS, WK

    Sheldon McMeans

    Barclays

    1 question for DAY

    Also covers: PATH, PCTY, TDC

    Siti Panigrahi

    Mizuho Securities

    1 question for DAY

    Also covers: ADSK, BSY, CDNS +13 more

    Steve Enders

    Citigroup

    1 question for DAY

    Also covers: APPN, ASAN, BL +8 more

    Zane Meehan

    KeyBanc Capital Markets Inc.

    1 question for DAY

    Also covers: PRO
    Program DetailsProgram 1
    Approval DateJuly 31, 2024
    End Date/DurationNo expiration date
    Total Additional Amount$500 million
    Remaining Authorization$470 million (as of 2024-09-30)
    DetailsAims to manage dilution from stock-based compensation and provides flexibility for opportunistic market purchases

    Notable M&A activity and strategic investments in the past 3 years.

    CompanyYearDetails

    eloomi A/S

    2024

    eloomi A/S was acquired by Dayforce, Inc. for $179.6 million on February 1, 2024, with the purchase price allocated across goodwill, intangible assets (developed technology and customer relationships), and other assets/liabilities; the deal is strategically aimed at enhancing Dayforce's portfolio through integration of a leading learning experience platform, though the purchase accounting remains provisional as of September 30, 2024.

    ADAM HCM

    2022

    The ADAM HCM acquisition (including ATI ROW, LLC and ADAM HCM MEXICO) was finalized with a total purchase price of $34.5 million on December 3, 2021, positioning the company as a leading payroll and HCM provider in Latin America by enabling Dayforce customers in 33 countries to access global HCM solutions; purchase accounting was finalized by June 30, 2022, with detailed allocations for goodwill, intangibles, and other adjustments.

    Recent press releases and 8-K filings for DAY.

    Dayforce Enters into Definitive Agreement with Thoma Bravo
    ·$DAY
    M&A
    Takeover Bid
    Delisting/Listing Issues
    • Dayforce, Inc. has entered into a definitive agreement with Thoma Bravo to become a privately held company.
    • The all-cash transaction has an enterprise value of US$12.3 billion, with Dayforce stockholders set to receive US$70.00 per share.
    • This per share purchase price represents a 32% premium over the Company’s unaffected closing share price on August 15, 2025.
    • The transaction, which includes a significant minority investment from a wholly owned subsidiary of the Abu Dhabi Investment Authority, is expected to close in early 2026.
    • Upon completion, Dayforce's common stock will no longer be listed on any public stock exchange.
    Aug 21, 2025, 12:00 AM
    Dayforce Nears Acquisition by Thoma Bravo
    ·$DAY
    M&A
    Takeover Bid
    • Private equity firm Thoma Bravo is in advanced negotiations to acquire Dayforce, a human resources management software company, in a deal valued at around $8.4 to $9 billion.
    • The potential acquisition would take Dayforce private, with its shares surging over 20% on the news, despite having fallen approximately 60% from their peak in 2021.
    • Dayforce, which provides AI-driven recruitment, payroll, and employee career development software, has experienced revenue growth exceeding 70% from 2021 to 2024.
    Aug 18, 2025, 12:32 AM
    Dayforce Discusses Strong Demand, Revenue Acceleration, and Free Cash Flow Expansion
    ·$DAY
    Revenue Acceleration/Inflection
    New Projects/Investments
    Guidance Update
    • Dayforce is experiencing strong demand, with 40%+ bookings growth for three consecutive quarters, starting in Q4 last year and continuing through Q2, with Q3 also showing strength.
    • Dayforce recurring revenue is forecast to accelerate, with Q3 expected at 13% to 16% and Q4 at 16% to 19%, signaling continued strength through 2026 and beyond.
    • The company is successfully moving upmarket, securing wins with the Government of Canada and a large U.S. Federal agency, and taking live its largest customer ever, which is scaling to 500,000+ employees.
    • Dayforce has launched an AI assistant, which has been attached to approximately 50% of sales year-to-date, and plans to introduce about 30 AI agents over the next few years, leveraging its single database advantage.
    • Dayforce aims to achieve $1 billion in free cash flow by 2031 and expand free cash flow margins to 20%+ by 2031, with current margins at 13.5% to 14%, up from 9.7%.
    Aug 11, 2025, 4:05 PM
    Dayforce Reports Strong Q2 2025 Results and Raises Full-Year Free Cash Flow Guidance
    ·$DAY
    Earnings
    Guidance Update
    Revenue Acceleration/Inflection
    • Dayforce reported strong Q2 2025 results, with Dayforce recurring revenue (excluding float on a constant currency basis) growing 14% and adjusted EBITDA margin expanding 420 basis points to 31.7%.
    • The company raised its full-year 2025 free cash flow margin guidance to 13.5% to 14%, up from 12%, partly due to an estimated $40-50 million benefit from the One Big Beautiful Bill Act. Dayforce aims for $1 billion in free cash flow by 2031.
    • Sales momentum continued with year-to-date bookings growing over 40%, and sales to existing customers increasing over 50% in Q2, comprising 40% of total bookings.
    • For Q3 2025, Dayforce expects total revenue between $476 million and $486 million, and Dayforce recurring revenue (excluding float) between $329 million and $339 million.
    Aug 6, 2025, 11:40 PM
    Dayforce outlines strategic transformation and growth targets
    ·$DAY
    Revenue Acceleration/Inflection
    Layoffs
    Product Launch
    • CFO Jeremy Johnson emphasized Dayforce’s integrated HCM suite featuring a continuous pay and time calculation engine, with managed services experiencing 70% growth in Q1.
    • The company is simplifying its financial presentation—terminating its defined benefit pension plan and executing a 5% workforce reduction—while targeting $1B free cash flow and $5B in revenue.
    • Management expects modest 1% employment growth amid a challenging macro environment and is leveraging AI and automation to boost productivity.
    May 13, 2025, 7:11 PM
    Dayforce Inc Reports Strong Q1 2025 Results
    ·$DAY
    Earnings
    Guidance Update
    Layoffs
    Share Buyback
    Revenue Acceleration/Inflection
    • Q1 2025 revenue: Dayforce delivered total revenue of approximately $482 million, registering strong growth [up 14% on a constant currency basis and 11.7% on a reported basis (13.6% constant currency) ].
    • Financial performance: Achieved an adjusted EBITDA margin of 32.5% – up 240 basis points year-over-year .
    • Recurring revenue reached about $323 million, with growth of 14.4% (15.9% constant currency) during the quarter .
    • Profitability highlights: Operating profit was $31.0 million, adjusted operating profit improved to $132.3 million, and net income increased to $14.9 million .
    • Operational achievements: Maintained a record sales pipeline, secured significant government contracts (including a Canadian extension valued at CAD 105 million/USD 72 million), and advanced its AI strategy with a 50% attachment rate on the AI assistant .
    • Efficiency measures: Implemented a 5% workforce reduction and repurchased approximately $30 million in shares under a $500 million repurchase program to enhance shareholder returns .
    May 7, 2025, 12:01 PM