You might also like
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.
- 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.
- Professional Services and Other - Offers additional services that complement the core HCM platform, enhancing customer engagement and support.
- Powerpay Recurring Revenue - Delivers a cloud HR and payroll solution specifically designed for the Canadian small business market.
- Other Recurring Revenue - Includes various other recurring revenue streams that support the company's comprehensive service offerings.
-
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?
-
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?
-
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?
-
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?
-
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?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
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.
- 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 .