DAY Dayforce Inc

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 30, 2024

 

Dayforce, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

Delaware	001-38467	46-3231686
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
3311 East Old Shakopee Road, Minneapolis, MN		55425
(Address of Principal Executive Offices)		(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (952) 853-8100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, $0.01 par value		DAY		New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

On October 30, 2024, Dayforce, Inc. issued a press release announcing its unaudited financial results for the third quarter ended September 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits. The exhibits are furnished with this report and shall not be deemed to be “filed.”

 

Exhibit No.		Description
99.1		Press Release dated as of October 30, 2024.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

		DAYFORCE, INC.
		By:		/s/ Jeremy R. Johnson
		Name:		Jeremy R. Johnson
		Title:		Executive Vice President, Chief Financial Officer

 

Date: October 30, 2024

 

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Dayforce Reports Third Quarter 2024 Results1

 

Dayforce® recurring revenue of $333.2 million, up 19%

Total revenue of $440.0 million, up 17%

Year-to-date net cash provided by operating activities of $200.1 million, up 54%

Minneapolis, MN and Toronto, ON, October 30, 2024 - Dayforce, Inc. ("Dayforce" or the "Company") (NYSE:DAY) (TSX:DAY), a global leader in human capital management ("HCM") technology, today announced its financial results for the third quarter ended September 30, 2024.

“Our dedicated team achieved excellent results in the third quarter, positioning us to finish 2024 with strength,” said David Ossip, Chair and CEO of Dayforce. “Dayforce recurring revenue grew 19% year-over-year, and year-to-date cash flows from operating activities were up 54%, underscoring our ability to both grow and generate profits at scale. We continue to see organizations across the globe realize greater value as they simplify their people operations with the all-in-one Dayforce platform.”

“In the third quarter, we repurchased approximately $30 million worth of shares under our $500 million share repurchase program that we launched last quarter highlighting our progress in enhancing our overall profit profile and the flexibility of our cash-generative business model," said Jeremy Johnson, CFO of Dayforce. "Looking forward, we are excited to meet many of our investors in-person at our inaugural Investor Day alongside our Dayforce Discover conference in Las Vegas where we will outline our strategy for future growth.”

Financial Highlights for the Third Quarter 20241

Supplemental Detail

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1 The financial highlights are on a year-over-year basis, unless otherwise stated. All financial results are reported in United States ("U.S.") dollars and in accordance with accounting principles generally accepted in the U.S. ("GAAP"), unless otherwise stated.

2 Excluding Ascender, ADAM HCM, and eloomi.

3 Excluding float revenue, Ascender, ADAM HCM, and eloomi revenue, and on a constant currency basis. Please refer to the “Non-GAAP Financial Measures” section for discussion of percentage change in revenue on a constant currency basis.

Business Highlights

Sales Highlights

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New Customer Highlights

Product Roadmap Highlights

In the third quarter, Dayforce launched new product capabilities to help Dayforce customers realize quantifiable value through enriched workforce engagement, enhanced analytics, and improved employee financial wellness, and to update their compliance capabilities.

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Business Outlook

Based on information available as of October 30, 2024, Dayforce is issuing the following guidance for the fourth quarter and full year of 2024 as indicated below. Comparisons are on a year-over-year basis, unless stated otherwise.

Guided Metrics		Full Year 2024		Fourth Quarter 2024
Total revenue		$1,747 million to $1,752 million, an increase of 15% to 16% on a GAAP basis or 16% on a constant currency basis.		$452 million to $457 million, an increase of 13% to 14% on a GAAP basis or 13% to 15% on a constant currency basis.
Dayforce recurring revenue, excluding float		$1,163 million to $1,168 million, an increase of 21% on a GAAP and on a constant currency basis.		$311 million to $316 million, an increase of 21% to 23% on a GAAP and on a constant currency basis.
Float revenue		$192 million		$37 million
Adjusted EBITDA		$492 million to $507 million		$120 million to $135 million

Dayforce is also providing an initial outlook for full year 2025 as follows:

Dayforce has not reconciled the Adjusted EBITDA ranges, Adjusted EBITDA margin, or free cash flow for the fourth quarter or full years of 2024 or 2025 to the directly comparable GAAP financial measures because applicable information for the future period, on which these reconciliations would be based, is not available without unreasonable efforts due to uncertainty regarding, and the potential variability of, depreciation and amortization, share-based compensation expense and related employer taxes, changes in foreign currency exchange rates, and other items.

Foreign Exchange

For the fourth quarter of 2024, Dayforce's guidance assumes an average U.S. dollar to Canadian dollar foreign exchange rate of $1.38, which results in an average rate of $1.37 for the full year of 2024, compared to an average rate of $1.36 and $1.35 for the fourth quarter and full year of 2023, respectively.

Conference Call Details

Dayforce will host a live webcast and conference call to discuss the third quarter 2024 earnings at 8:00 a.m. Eastern Time on October 30, 2024. Those wishing to participate via the webcast should access the call through the Investor Relations section of the Dayforce website. Those wishing to participate via the telephone may dial in at 877-497-9071 (USA) or 201-689-8727 (International). The webcast replay will be available through the Investor Relations section of the Dayforce website.

About Dayforce

Dayforce makes work life better. Everything we do as a global leader in HCM technology is focused on improving work for thousands of customers and millions of employees around the world. Our single, global people platform for HR, Pay, Time, Talent, and Analytics equips Dayforce customers to unlock their full workforce potential and operate with confidence. To learn how Dayforce helps create quantifiable value for organizations of all sizes and industries, visit dayforce.com.

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Forward-Looking Statements

This press release contains forward-looking statements that are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this press release are forward-looking statements. Forward-looking statements give Dayforce's current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance, and business. Users can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements in this press release include statements relating to the fourth quarter and full fiscal years of 2024 and 2025, as well as those relating to future growth initiatives. These statements may include words such as “anticipate,” “estimate,” “expect,” "assume", “project,” “seek,” “plan,” “intend,” “believe,” “will,” “may,” “could,” “continue,” “likely,” “should,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events, but not all forward-looking statements contain these identifying words. The forward-looking statements contained in this press release are based on assumptions that Dayforce has made in light of its industry experience and its perceptions of historical trends, current conditions, expected future developments and other factors that it believes are appropriate under the circumstances. As users consider this press release, it should be understood that these statements are not guarantees of performance or results. These assumptions and Dayforce’s future performance or results involve risks and uncertainties (many of which are beyond its control). In particular:

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Although Dayforce has attempted to identify important risk factors, additional factors or events that could cause Dayforce’s actual performance to differ from these forward-looking statements may emerge from time to time, and it is not possible for Dayforce to predict all of them. Should one or more of these risks or uncertainties materialize, or should any of Dayforce’s assumptions prove incorrect, its actual financial condition, results of operations, future performance, and business may vary in material respects from the performance projected in these forward-looking statements. In addition to any factors and assumptions set forth above in this press release, the material factors and assumptions used to develop the forward-looking information include, but are not limited to: the general economy remains stable; the competitive environment in the HCM market remains stable; the demand environment for HCM solutions remains stable; Dayforce’s implementation capabilities and cycle times remain stable; foreign exchange rates, both current and those used in developing forward-looking statements, specifically U.S. dollar to Canadian dollar, remain stable at, or near, current rates; Dayforce will be able to maintain its relationships with its employees, customers, and partners; Dayforce will continue to attract qualified personnel to support its development requirements and the support of its new and existing customers; and that the risk factors noted above, individually or collectively, do not have a material impact on Dayforce. Any forward-looking statement made by Dayforce in this press release speaks only as of the date on which it is made. Dayforce undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

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Dayforce, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

 

		September 30,				December 31,
		2024				2023
(In millions, except per share data)
Assets
Current assets:
Cash and equivalents		$	494.1			$	570.3
Restricted cash			—				0.8
Trade and other receivables, net			255.8				228.8
Prepaid expenses and other current assets			153.3				126.7
Total current assets before customer funds			903.2				926.6
Customer funds			4,000.7				5,028.6
Total current assets			4,903.9				5,955.2
Right of use lease assets, net			14.7				19.1
Property, plant, and equipment, net			228.3				210.1
Goodwill			2,394.5				2,293.9
Other intangible assets, net			228.3				230.2
Deferred sales commissions			215.6				192.1
Other assets			131.7				110.3
Total assets		$	8,117.0			$	9,010.9
Liabilities and stockholders' equity
Current liabilities:
Current portion of long-term debt		$	7.3			$	7.6
Current portion of long-term lease liabilities			6.0				7.0
Accounts payable			73.1				66.7
Deferred revenue			42.7				40.2
Employee compensation and benefits			77.9				92.9
Other accrued expenses			66.3				30.4
Total current liabilities before customer funds obligations			273.3				244.8
Customer funds obligations			4,004.6				5,090.1
Total current liabilities			4,277.9				5,334.9
Long-term debt, less current portion			1,209.9				1,210.1
Employee benefit plans			25.0				27.7
Long-term lease liabilities, less current portion			14.0				18.9
Other liabilities			34.2				21.1
Total liabilities			5,561.0				6,612.7
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par, 500.0 shares authorized, 157.8 and 156.3 shares issued and outstanding, respectively			1.6				1.6
Additional paid in capital			3,291.5				3,151.1
Accumulated deficit			(340.5	)			(317.8	)
Accumulated other comprehensive loss			(396.6	)			(436.7	)
Total stockholders’ equity			2,556.0				2,398.2
Total liabilities and stockholders' equity		$	8,117.0			$	9,010.9

 

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Dayforce, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
(In millions, except per share data)
Revenue:
Recurring		$	375.9			$	325.4			$	1,123.6			$	958.2
Professional services and other			64.1				52.1				171.2				155.8
Total revenue			440.0				377.5				1,294.8				1,114.0
Cost of revenue:
Recurring			87.4				80.5				265.1				239.4
Professional services and other			75.1				66.1				210.8				197.0
Product development and management			55.4				53.3				166.8				153.5
Depreciation and amortization			20.8				17.1				58.6				47.4
Total cost of revenue			238.7				217.0				701.3				637.3
Gross profit			201.3				160.5				593.5				476.7
Selling and marketing			86.4				61.8				248.5				177.5
General and administrative			94.1				72.2				269.4				204.9
Operating profit			20.8				26.5				75.6				94.3
Interest expense, net			8.8				8.9				33.2				27.2
Other (income) expense, net			(6.3	)			5.1				5.7				6.6
Income before income taxes			18.3				12.5				36.7				60.5
Income tax expense			16.3				16.3				29.4				51.3
Net income (loss)		$	2.0			$	(3.8	)		$	7.3			$	9.2
Net income (loss) per share:
Basic		$	0.01			$	(0.02	)		$	0.05			$	0.06
Diluted		$	0.01			$	(0.02	)		$	0.05			$	0.06
Weighted average shares outstanding:
Basic			158.1				155.7				157.6				155.0
Diluted			159.7				155.7				159.9				158.2

 

 

 

 

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Dayforce, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

		Nine Months Ended September 30,
		2024				2023
(In millions)
Cash flows from operating activities
Net income		$	7.3			$	9.2
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income tax (benefit) expense			(27.5	)			13.9
Depreciation and amortization			151.5				84.1
Amortization of debt issuance costs and debt discount			3.2				3.3
Loss on debt extinguishment			4.3				—
Provision for doubtful accounts			4.7				4.2
Net periodic pension and postretirement cost			7.6				0.9
Share-based compensation expense			118.4				118.0
Change in fair value of contingent consideration			9.0				11.8
Other			(1.2	)			0.3
Changes in operating assets and liabilities, excluding effects of acquisitions:
Trade and other receivables			(26.2	)			(62.0	)
Prepaid expenses and other current assets			(4.5	)			(20.1	)
Deferred sales commissions			(22.9	)			(25.9	)
Accounts payable and other accrued expenses			5.9				8.5
Deferred revenue			(6.5	)			7.5
Employee compensation and benefits			(16.1	)			(23.2	)
Accrued taxes			22.5				11.0
Payment of contingent consideration			(20.9	)			—
Other assets and liabilities			(8.5	)			(11.9	)
Net cash provided by operating activities			200.1				129.6
Cash flows from investing activities
Purchases of customer funds marketable securities			(483.2	)			(252.0	)
Proceeds from sale and maturity of customer funds marketable securities			283.4				326.4
Purchases of marketable securities			(10.0	)			—
Proceeds from sale and maturity of marketable securities			7.6				—
Expenditures for property, plant, and equipment			(8.7	)			(15.4	)
Expenditures for software and technology			(74.1	)			(72.9	)
Acquisition costs, net of cash acquired			(173.1	)			—
Other			—				(1.0	)
Net cash used in investing activities			(458.1	)			(14.9	)
Cash flows from financing activities
(Decrease) increase in customer funds obligations, net			(1,049.9	)			311.0
Proceeds from issuance of common stock under share-based compensation plans			22.0				40.3
Repurchases of common stock			(28.8	)			—
Proceeds from debt issuance			650.0				—
Repayment of long-term debt obligations			(646.5	)			(6.0	)
Payment of debt refinancing costs			(11.4	)			—
Payment of contingent consideration			(3.0	)			—
Net cash (used in) provided by financing activities			(1,067.6	)			345.3
Effect of exchange rate changes on cash, restricted cash, and equivalents			(18.2	)			5.1
Net (decrease) increase in cash, restricted cash, and equivalents			(1,343.8	)			465.1
Cash, restricted cash, and equivalents at beginning of period			3,421.4				3,151.2
Cash, restricted cash, and equivalents at end of period		$	2,077.6			$	3,616.3
Reconciliation of cash, restricted cash, and equivalents to the condensed    consolidated balance sheets
Cash and equivalents		$	494.1			$	510.3
Restricted cash			—				0.8
Restricted cash and equivalents included in customer funds			1,583.5				3,105.2
Total cash, restricted cash, and equivalents		$	2,077.6			$	3,616.3

 

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Dayforce, Inc.

Revenue Financial Measures

(Unaudited)

 

		Three Months Ended September 30,								Percentage change in revenue				Impact of changes in foreign currency (a)				Percentage change in revenue on a constant currency basis (a)
		2024				2023				2024 vs. 2023								2024 vs. 2023
		(In millions)
Revenue:
Recurring revenue:
Dayforce recurring, excluding float		$	292.0			$	245.6				18.9	%			(0.1	)%			19.0	%
Dayforce float			41.2				34.0				21.2	%			(0.3	)%			21.5	%
Total Dayforce recurring			333.2				279.6				19.2	%			(0.1	)%			19.3	%
Powerpay recurring, excluding float			20.2				19.6				3.1	%			(2.0	)%			5.1	%
Powerpay float			4.2				4.4				(4.5	)%			(2.2	)%			(2.3	)%
Total Powerpay recurring			24.4				24.0				1.7	%			(2.0	)%			3.7	%
Total Cloud recurring			357.6				303.6				17.8	%			(0.3	)%			18.1	%
Other recurring (b)			18.3				21.8				(16.1	)%			0.9	%			(17.0	)%
Total recurring revenue			375.9				325.4				15.5	%			(0.2	)%			15.7	%
Professional services and other (c)			64.1				52.1				23.0	%			(—	)%			23.0	%
Total revenue		$	440.0			$	377.5				16.6	%			(0.1	)%			16.7	%

 

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		Nine Months Ended September 30,								Percentage change in revenue				Impact of changes in foreign currency (a)				Percentage change in revenue on a constant currency basis (a)
		2024				2023				2024 vs. 2023								2024 vs. 2023
		(In millions)
Revenue:
Recurring revenue:
Dayforce recurring, excluding float		$	852.1			$	706.5				20.6	%			(0.2	)%			20.8	%
Dayforce float			139.9				112.5				24.4	%			(0.2	)%			24.6	%
Total Dayforce recurring			992.0				819.0				21.1	%			(0.2	)%			21.3	%
Powerpay recurring, excluding float			60.6				58.8				3.1	%			(1.2	)%			4.3	%
Powerpay float			14.4				13.4				7.5	%			(0.7	)%			8.2	%
Total Powerpay recurring			75.0				72.2				3.9	%			(1.1	)%			5.0	%
Total Cloud recurring			1,067.0				891.2				19.7	%			(0.3	)%			20.0	%
Other recurring (b)			56.6				67.0				(15.5	)%			(1.0	)%			(14.5	)%
Total recurring revenue			1,123.6				958.2				17.3	%			(0.3	)%			17.6	%
Professional services and other (c)			171.2				155.8				9.9	%			(0.2	)%			10.1	%
Total revenue		$	1,294.8			$	1,114.0				16.2	%			(0.3	)%			16.5	%

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Dayforce, Inc.

Share-Based Compensation Expense and Related Employer Taxes

(Unaudited)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
		(in millions)
Cost of revenue - Cloud		$	3.0			$	3.9			$	9.6			$	11.9
Cost of revenue - Other			0.6				0.5				1.7				1.2
Professional services and other			4.0				4.4				11.7				13.5
Product development and management			8.1				7.8				25.0				25.7
Sales and marketing			9.4				6.4				27.2				19.0
General and administrative			14.5				13.4				43.2				47.0
Total		$	39.6			$	36.4			$	118.4			$	118.3

 

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Dayforce, Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(Unaudited)

The following tables reconcile Dayforce's reported results to its non-GAAP financial measures:

 

		Three Months Ended September 30, 2024
		As reported				As reported margins (a)				Share-based compensation				Amortization				Other (b)				As adjusted (b)				As adjusted margins (a)
		(Dollars in millions, except per share data)
Cost of Cloud recurring revenue		$	75.1				79.0	%		$	3.0			$	—			$	0.1			$	72.0				79.9	%
Operating profit		$	20.8				4.7	%		$	39.6			$	29.6			$	13.2			$	103.2				23.5	%
Net income		$	2.0				0.5	%		$	39.6			$	29.6			$	3.3			$	74.5				16.9	%
Interest expense, net			8.8								—				—				—				8.8
Income tax expense (c)			16.3								—				—				(4.0	)			20.3
Depreciation and amortization			52.1								—				29.6				—				22.5
EBITDA		$	79.2							$	39.6			$	—			$	7.3			$	126.1				28.7	%
Net income per share - diluted (d)		$	0.01							$	0.25			$	0.19			$	0.02			$	0.47

 

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		Three Months Ended September 30, 2023
		As reported				As reported margins (a)				Share-based compensation				Amortization				Other (b)				As adjusted (b)				As adjusted margins (a)
		(Dollars in millions, except per share data)
Cost of Cloud recurring revenue		$	69.9				77.0	%		$	3.9			$	—			$	—			$	66.0				78.3	%
Operating profit		$	26.5				7.0	%		$	36.4			$	20.5			$	6.0			$	89.4				23.7	%
Net (loss) income		$	(3.8	)			(1.0	)%		$	36.4			$	20.5			$	5.2			$	58.3				15.4	%
Interest expense, net			8.9								—				—				—				8.9
Income tax expense (c)			16.3								—				—				(5.5	)			21.8
Depreciation and amortization			38.7								—				20.5				—				18.2
EBITDA		$	60.1							$	36.4			$	—			$	10.7			$	107.2				28.4	%
Net (loss) income per share - diluted (d)		$	(0.02	)						$	0.23			$	0.13			$	0.03			$	0.37

 

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		Nine Months Ended September 30, 2024
		As reported				As reported margins (a)				Share-based compensation				Amortization				Other (b)				As adjusted (b)				As adjusted margins (a)
		(Dollars in millions, except per share data)
Cost of Cloud recurring revenue		$	228.5				78.6	%		$	9.6			$	—			$	0.9			$	218.0				79.6	%
Operating profit		$	75.6				5.8	%		$	118.4			$	87.5			$	25.7			$	307.2				23.7	%
Net income		$	7.3				0.6	%		$	118.4			$	87.5			$	5.5			$	218.7				16.9	%
Interest expense, net			33.2								—				—				—				33.2
Income tax expense (c)			29.4								—				—				(27.0	)			56.4
Depreciation and amortization			151.5								—				87.5				—				64.0
EBITDA		$	221.4							$	118.4			$	—			$	32.5			$	372.3				28.8	%
Net income per share - diluted (d)		$	0.05							$	0.74			$	0.55			$	0.03			$	1.37

 

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		Nine Months Ended September 30, 2023
		As reported				As reported margins (a)				Share-based compensation				Amortization				Other (b)				As adjusted (b)				As adjusted margins (a)
		(Dollars in millions, except per share data)
Cost of Cloud recurring revenue		$	204.8				77.0	%		$	11.9			$	—			$	—			$	192.9				78.4	%
Operating profit		$	94.3				8.5	%		$	118.3			$	32.7			$	15.6			$	260.9				23.4	%
Net income		$	9.2				0.8	%		$	118.3			$	32.7			$	(1.8	)		$	158.4				14.2	%
Interest expense, net			27.2								—				—				—				27.2
Income tax expense (c)			51.3								—				—				(22.7	)			74.0
Depreciation and amortization			84.1								—				32.7				—				51.4
EBITDA		$	171.8							$	118.3			$	—			$	20.9			$	311.0				27.9	%
Net income per share - diluted (d)		$	0.06							$	0.75			$	0.21			$	(0.01	)		$	1.00

 

 

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Dayforce, Inc.

Reconciliation of Free Cash Flow

(Unaudited)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
		(In millions)
Net cash provided by operating activities		$	91.8			$	36.6			$	200.1			$	129.6
Expenditures for property, plant, and equipment			(2.0	)			(5.3	)			(8.7	)			(15.4	)
Expenditures for software and technology			(26.4	)			(26.5	)			(74.1	)			(72.9	)
Free cash flow		$	63.4			$	4.8			$	117.3			$	41.3

 

 

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Non-GAAP Financial Measures

Dayforce uses certain non-GAAP financial measures in this release including:

Non-GAAP Financial Measure		GAAP Financial Measure
EBITDA		Net (loss) income
Adjusted EBITDA		Net (loss) income
Adjusted EBITDA margin		Net profit margin
Adjusted Cloud recurring gross margin		Cloud recurring gross margin
Adjusted operating profit		Operating profit
Adjusted operating profit margin		Operating profit margin
Adjusted net income		Net (loss) income
Adjusted net profit margin		Net profit margin
Adjusted diluted net income per share		Diluted net (loss) income per share
Free cash flow		Net cash provided by operating activities
Percentage change in revenue, including total revenue and revenue by solution, on a constant currency basis		Percentage change in revenue, including total revenue and revenue by solution
Dayforce recurring revenue per customer		No directly comparable GAAP measure

Dayforce believes that these non-GAAP financial measures are useful to management and investors as supplemental measures to evaluate its overall operating performance including comparison across periods and with competitors. Dayforce's management team uses these non-GAAP financial measures to assess operating performance because these financial measures exclude the results of decisions that are outside the normal course of its business operations, and are used for internal budgeting and forecasting purposes both for short- and long-term operating plans. Additionally, Adjusted EBITDA is a component of its management incentive plan and Adjusted Cloud recurring gross margin and Adjusted operating profit are components of certain performance based equity awards for its named executive officers. Additionally, Dayforce believes that the non-GAAP financial measure free cash flow is meaningful to investors because it is a measure of liquidity that provides useful information in understanding and evaluating the strength of Dayforce’s liquidity and future ability to generate cash that can be used for strategic opportunities or investing in its business. The exclusion of capital expenditures facilitates comparisons of Dayforce’s liquidity on a period-to-period basis and excludes items that management does not consider to be indicative of Dayforce’s liquidity.

These non-GAAP financial measures are not required by, defined under, or presented in accordance with, GAAP, and should not be considered as alternatives to Dayforce's results as reported under GAAP, have important limitations as analytical tools, and its use of these terms may not be comparable to similarly titled measures of other companies in its industry. Dayforce's presentation of non-GAAP financial measures should not be construed to imply that its future results will be unaffected by similar items to those eliminated in this presentation. Please refer to Dayforce’s full financial results, including further discussion of non-GAAP financial measures, on the Investor Relations portion of its website at investors.dayforce.com.

Dayforce defines its non-GAAP financial measures as follows:

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Source: Dayforce, Inc.

For further information, please contact:

Investor Relations

1-844-829-9499

investors@dayforce.com

Public Relations

1-647-417-2117

teri.murphy@dayforce.com

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v3.24.3

Document and Entity Information	Oct. 30, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 30, 2024
Entity Registrant Name	Dayforce, Inc.
Entity Central Index Key	0001725057
Entity Emerging Growth Company	false
Entity File Number	001-38467
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	46-3231686
Entity Address, Address Line One	3311 East Old Shakopee Road
Entity Address, City or Town	Minneapolis
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55425
City Area Code	952
Local Phone Number	853-8100
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Common stock, $0.01 par value
Trading Symbol	DAY
Security Exchange Name	NYSE

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