Dayforce Recurring Revenue: $337 million, up 24% (including float) and 23% (excluding float).
Total Revenue: $431.5 million, an increase of 16%.
GAAP Gross Profit: $205 million, up 28% from the previous year.
Cloud Recurring Gross Margin: 79%, up 170 basis points versus last year.
Adjusted Cloud Recurring Gross Margin: 80%, up 130 basis points versus last year.
Adjusted EBITDA: $130 million, up 23%, with an adjusted EBITDA margin of 30.1%, up 170 basis points versus the previous year.
Powerpay Recurring Revenue: $26 million, up 8% (including float) and 5% (excluding float).
Future Guidance
Q2 Forecast for Dayforce Recurring Revenue (ex float): Between $276 million to $279 million, representing 19% to 21% growth as reported.
Q2 Total Revenue Forecast: Between $414 million to $419 million, indicating 13% to 15% growth.
Q2 Adjusted EBITDA Forecast: Between $108 million to $113 million, with margins around 26.1% to 27%.
Full Year Dayforce Recurring Revenue Forecast (ex float): Between $1.163 billion to $1.168 billion, indicating a growth of 21%.
Full Year Total Revenue Forecast: Between $1.73 billion to $1.74 billion, indicating 14% to 15% growth.
Full Year Adjusted EBITDA Forecast: Between $484 million to $499 million, with margins around 28% to 28.7%.
Trends, Market Conditions, Sentiment
Market Opportunity: Estimates of global HCM and managed payroll spending in the $50 billion to $60 billion range, growing over 10% annually.
Product Innovation: Focus on AI capabilities with Dayforce Co-Pilot and expansion of partner ecosystem.
Customer Growth: Strong sales, primarily in the mid-market segment and enterprise segments, with significant customer acquisitions and go-lives.
Government of Canada Investment: Positive outlook based on the Government of Canada’s budget commitment to payroll modernization.
AI Sentiment: High excitement and investment in AI technology, such as Dayforce Co-Pilot, to drive productivity and efficiency.
Economic Conditions: Attention to automation and efficiency amid varying economic conditions, with the company’s solution simplifying customer technology stacks.
Notable Quotes
David Ossip, CEO: “We remain confident in the business with strong momentum across sales, product, and operations, and we have raised our guidance across all key metrics.”
Jeremy Johnson, CFO: “We exceeded guidance across all key revenue and profitability metrics…We view adjusted cloud recurring gross margins as a key metric…reflecting our continued improvement in gross profit margins and scale in adjusted G&A.”
Stephen Holdridge, President: “From a sales perspective, we continue to see strong demand for Dayforce across the globe…Our partner ecosystem momentum continued into Q1 with SI-led sales growth up 35% year-over-year.”
Joseph Korngiebel, Chief Product and Technology Officer: “…with the launch of Dayforce Co-Pilot to our charter customers at the beginning of the year, our new generative AI teammate for the balanced workforce is empowering our customers, their employees, and also our own employees here at Dayforce with new levels of productivity and efficiency.”
