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): July 31, 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. ☐

 

 

---

Item 2.02 Results of Operations and Financial Condition.

On July 31, 2024, Dayforce, Inc. (the “Company”) issued a press release announcing its unaudited financial results for the second quarter ended June 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 8.01 Other Events.

On July 31, 2024, the Company announced that its Board of Directors (the “Board”) authorized and approved a share repurchase program pursuant to which the Company may purchase up to $500 million of its outstanding Common Stock, par value $0.01 per share (the “Common Stock”). A copy of the press release is furnished as Exhibit 99.2 to this Current Report on Form 8-K.

Share repurchases under the program may be made from time to time, in the open market, in privately negotiated transactions, or otherwise, with the amount and timing of repurchases to be determined at the discretion of the Company’s management, depending on market conditions and corporate needs. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. The primary purpose of the Company’s entry into the share repurchase program is to mitigate stockholder dilution from stock-based compensation.

The share repurchase program has no expiration date, does not obligate the Company to acquire any particular amount of Common Stock, and may be modified, suspended, or terminated at any time at the discretion of the Board. The Company expects to fund repurchases with existing cash and cash equivalents and working capital.

The information furnished on this Current Report on Form 8-K, including the exhibits attached, shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, regardless of any general incorporation language in such filing.

Forward-Looking Statements

This Current Report on Form 8-K contains not only historical information, but also forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Exchange Act, and that are subject to the safe harbor created by those sections. Forward-looking statements, including, without limitation, statements concerning the Company’s operations, performance, and financial condition, and the amount, timing, and benefits of a share repurchase program, can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “assumes,” “projects,” “could,” “continues,” “likely,” “may,” “will,” “should,” and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements are based on the Company’s current expectations and assumptions regarding the Company’s business, the economy, and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Consequently, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include those more fully described under the caption “Risk Factors” and elsewhere in documents that the Company files with the Securities and Exchange Commission from time to time, including the Company’s Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q. Any forward-looking statement made by the Company in this Current Report on Form 8-K speaks only as of the date on which the Company makes it. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update or to revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by law.

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 July 31, 2024.
99.2		Press Release dated as of July 31, 2024.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

---

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: July 31, 2024

 

---

Dayforce Reports Second Quarter 2024 Results1

 

Dayforce® recurring revenue of $321.6 million, up 20%

Total revenue of $423.3 million, up 16%

Year-to-date net cash provided by operating activities of $108.3 million, up 16%

Minneapolis, MN and Toronto, ON, July 31, 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 second quarter ended June 30, 2024.

“Our business momentum continued in the second quarter of 2024, with Dayforce recurring revenue up 20%, and year-to-date cash flows from operating activities up 16%. Our success is rooted in the simplicity that organizations around the world are seeing with the Dayforce platform, enabling them to create significant efficiencies in their businesses while delivering a best-in-class HCM experience for their employees,” said David Ossip, Chair and CEO of Dayforce.

“Our strong results are translating into improved cash flow generation, prompting our Board of Directors to approve a $500 million share repurchase program,” said Jeremy Johnson, CFO of Dayforce. “I’m also pleased to announce our first ever Investor Day on November 12, 2024, in Las Vegas, alongside our Dayforce Discover conference where we plan to present a comprehensive view of our vision, strategy, and multi-year financial model.”

Financial Highlights for the Second Quarter 20241

Supplemental Detail

---

 

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

In the second quarter, Dayforce:

Sales Highlights

---

Customer Highlights

Product Roadmap Highlights

In the second quarter, Dayforce released new capabilities and platform updates to help Dayforce customers across the globe conquer the workplace complexity crisis and unlock value for the boundless workforce.

---

Business Outlook

Based on information available as of July 31, 2024, Dayforce is issuing the following guidance for the third 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		Third Quarter 2024
Total revenue		$1,736 million to $1,746 million, an increase of 15% on a GAAP basis or 15% to 15.5% on a constant currency basis.		$425 million to $430 million, an increase of 13% to 14% on a GAAP and on a constant currency basis.
Dayforce recurring revenue, excluding float		$1,163 million to $1,168 million, an increase of 21% on a GAAP basis or 21% to 21.5% on a constant currency basis.		$289 million to $294 million, an increase of 18% to 20% on a GAAP and on a constant currency basis.
Float revenue		$187 million		$40 million
Adjusted EBITDA		$490 million to $505 million		$115 million to $125 million

Dayforce has not reconciled the Adjusted EBITDA ranges for the third quarter or full year of 2024 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 third quarter and 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 $1.34 and $1.35 for the third quarter and full year of 2023, respectively.

Conference Call Details

Dayforce will host a live webcast to discuss the second quarter 2024 earnings at 8:00 a.m. Eastern Time on July 31, 2024. The event can be accessed via direct registration link at https://dayforce.zoom.us/webinar/register/WN_swoeFGDzRNGacRi3JC0bgg#/registration or through the Investor Relations section of the Company's website at https://investors.dayforce.com. A recording of the event will be made available on the Investor Relations section of Dayforce's website following the call.

About Dayforce

Dayforce makes work life better. Everything it does as a global leader in HCM technology is focused on improving work for thousands of customers and millions of employees around the world. Its single, global people platform for HR, payroll, talent, workforce management, and benefits 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.

---

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 third quarter and full fiscal year of 2024, 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:

---

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.

---

Dayforce, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

 

		June 30,				December 31,
		2024				2023
(In millions, except per share data)
Assets
Current assets:
Cash and equivalents		$	465.4			$	570.3
Restricted cash			0.8				0.8
Trade and other receivables, net			260.8				228.8
Prepaid expenses and other current assets			140.1				126.7
Total current assets before customer funds			867.1				926.6
Customer funds			4,969.5				5,028.6
Total current assets			5,836.6				5,955.2
Right of use lease assets, net			14.8				19.1
Property, plant, and equipment, net			220.0				210.1
Goodwill			2,383.4				2,293.9
Other intangible assets, net			256.2				230.2
Deferred sales commissions			205.6				192.1
Other assets			129.5				110.3
Total assets		$	9,046.1			$	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			5.9				7.0
Accounts payable			66.3				66.7
Deferred revenue			46.5				40.2
Employee compensation and benefits			80.2				92.9
Other accrued expenses			41.8				30.4
Total current liabilities before customer funds obligations			248.0				244.8
Customer funds obligations			5,032.3				5,090.1
Total current liabilities			5,280.3				5,334.9
Long-term debt, less current portion			1,210.7				1,210.1
Employee benefit plans			25.9				27.7
Long-term lease liabilities, less current portion			14.5				18.9
Other liabilities			38.9				21.1
Total liabilities			6,570.3				6,612.7
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par, 500.0 shares authorized, 159.8 and 156.3 shares issued and outstanding, respectively			1.6				1.6
Additional paid in capital			3,246.7				3,151.1
Accumulated deficit			(312.5	)			(317.8	)
Accumulated other comprehensive loss			(460.0	)			(436.7	)
Total stockholders’ equity			2,475.8				2,398.2
Total liabilities and stockholders' equity		$	9,046.1			$	9,010.9

 

---

Dayforce, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

 

		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
(In millions, except per share data)
Revenue:
Recurring		$	365.0			$	314.9			$	747.7			$	632.8
Professional services and other			58.3				51.0				107.1				103.7
Total revenue			423.3				365.9				854.8				736.5
Cost of revenue:
Recurring			89.3				78.8				177.7				158.9
Professional services and other			69.6				67.0				135.7				130.9
Product development and management			58.3				49.2				111.4				100.2
Depreciation and amortization			19.3				15.0				37.8				30.3
Total cost of revenue			236.5				210.0				462.6				420.3
Gross profit			186.8				155.9				392.2				316.2
Selling and marketing			83.1				61.5				162.1				115.7
General and administrative			89.6				65.0				175.3				132.7
Operating profit			14.1				29.4				54.8				67.8
Interest expense, net			11.1				9.1				24.4				18.3
Other expense, net			3.0				0.7				12.0				1.5
Income before income taxes			—				19.6				18.4				48.0
Income tax expense			1.8				16.5				13.1				35.0
Net (loss) income		$	(1.8	)		$	3.1			$	5.3			$	13.0
Net (loss) income per share:
Basic		$	(0.01	)		$	0.02			$	0.03			$	0.08
Diluted		$	(0.01	)		$	0.02			$	0.03			$	0.08
Weighted average shares outstanding:
Basic			157.9				155.1				157.4				154.7
Diluted			157.9				157.6				159.8				157.8

 

 

---

Dayforce, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

		Six Months Ended June 30,
		2024				2023
(In millions)
Cash flows from operating activities
Net income		$	5.3			$	13.0
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income tax (benefit) expense			(17.4	)			5.5
Depreciation and amortization			99.4				45.4
Amortization of debt issuance costs and debt discount			2.1				2.2
Loss on debt extinguishment			4.3				—
Provision for doubtful accounts			3.8				2.5
Net periodic pension and postretirement cost			5.1				0.7
Share-based compensation expense			78.8				81.7
Change in fair value of contingent consideration			—				7.2
Other			—				0.2
Changes in operating assets and liabilities, excluding effects of acquisitions:
Trade and other receivables			(34.5	)			(27.6	)
Prepaid expenses and other current assets			(2.6	)			(13.5	)
Deferred sales commissions			(14.8	)			(12.9	)
Accounts payable and other accrued expenses			(7.6	)			5.2
Deferred revenue			(1.6	)			2.5
Employee compensation and benefits			(12.3	)			(28.1	)
Accrued taxes			7.3				13.1
Other assets and liabilities			(7.0	)			(4.1	)
Net cash provided by operating activities			108.3				93.0
Cash flows from investing activities
Purchases of customer funds marketable securities			(322.9	)			(101.6	)
Proceeds from sale and maturity of customer funds marketable securities			167.9				174.0
Purchases of marketable securities			(4.0	)			—
Proceeds from sale and maturity of marketable securities			3.0				—
Expenditures for property, plant, and equipment			(6.7	)			(10.1	)
Expenditures for software and technology			(47.7	)			(46.4	)
Acquisition costs, net of cash acquired			(173.1	)			—
Other			—				(1.0	)
Net cash (used in) provided by investing activities			(383.5	)			14.9
Cash flows from financing activities
(Decrease) increase in customer funds obligations, net			(3.0	)			100.4
Proceeds from issuance of common stock under share-based compensation plans			16.8				23.2
Proceeds from debt issuance			650.0				—
Repayment of long-term debt obligations			(644.7	)			(4.1	)
Payment of debt refinancing costs			(11.4	)			—
Net cash provided by financing activities			7.7				119.5
Effect of exchange rate changes on cash, restricted cash, and equivalents			(21.7	)			63.1
Net (decrease) increase in cash, restricted cash, and equivalents			(289.2	)			290.5
Cash, restricted cash, and equivalents at beginning of period			3,421.4				3,151.2
Cash, restricted cash, and equivalents at end of period		$	3,132.2			$	3,441.7
Reconciliation of cash, restricted cash, and equivalents to the condensed    consolidated balance sheets
Cash and equivalents		$	465.4			$	486.6
Restricted cash			0.8				0.8
Restricted cash and equivalents included in customer funds			2,666.0				2,954.3
Total cash, restricted cash, and equivalents		$	3,132.2			$	3,441.7

 

---

Dayforce, Inc.

Trade and Other Receivables, Net

(Unaudited)

 

 

		June				March				December				September				June				March				December
		30,				31,				31,				30,				30,				31,				31,
		2024				2024				2023				2023				2023				2023				2022
		(In millions)
Trade receivables from customers		$	194.7			$	203.7			$	177.5			$	163.2			$	142.1			$	137.1			$	143.0
Interest receivable from invested customer funds			16.0				25.7				18.1				15.8				15.1				26.8				12.7
Dayforce Wallet on-demand pay receivables			38.1				34.8				19.6				33.0				27.0				23.9				22.2
Other (a)			29.8				28.4				27.6				37.3				32.9				27.9				11.4
Total gross receivables			278.6				292.6				242.8				249.3				217.1				215.7				189.3
Less: reserve for sales adjustments and allowance for doubtful accounts			(17.8	)			(16.6	)			(14.0	)			(13.0	)			(11.8	)			(11.1	)			(9.2	)
Trade and other receivables, net		$	260.8			$	276.0			$	228.8			$	236.3			$	205.3			$	204.6			$	180.1

 

---

Dayforce, Inc.

Revenue Financial Measures

(Unaudited)

 

		Three Months Ended June 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		$	277.7			$	231.3				20.1	%			(0.4	)%			20.5	%
Dayforce float			43.9				36.9				19.0	%			(0.5	)%			19.5	%
Total Dayforce recurring			321.6				268.2				19.9	%			(0.5	)%			20.4	%
Powerpay recurring, excluding float			19.9				19.7				1.0	%			(2.0	)%			3.0	%
Powerpay float			4.7				4.4				6.8	%			(—	)%			6.8	%
Total Powerpay recurring			24.6				24.1				2.1	%			(1.6	)%			3.7	%
Total Cloud recurring			346.2				292.3				18.4	%			(0.6	)%			19.0	%
Other recurring (b)			18.8				22.6				(16.8	)%			(1.8	)%			(15.0	)%
Total recurring revenue			365.0				314.9				15.9	%			(0.7	)%			16.6	%
Professional services and other (c)			58.3				51.0				14.3	%			(0.2	)%			14.5	%
Total revenue		$	423.3			$	365.9				15.7	%			(0.6	)%			16.3	%

 

---

		Six Months Ended June 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		$	560.1			$	460.9				21.5	%			(0.2	)%			21.7	%
Dayforce float			98.7				78.5				25.7	%			(0.3	)%			26.0	%
Total Dayforce recurring			658.8				539.4				22.1	%			(0.3	)%			22.4	%
Powerpay recurring, excluding float			40.4				39.2				3.1	%			(0.7	)%			3.8	%
Powerpay float			10.2				9.0				13.3	%			(—	)%			13.3	%
Total Powerpay recurring			50.6				48.2				5.0	%			(0.6	)%			5.6	%
Total Cloud recurring			709.4				587.6				20.7	%			(0.3	)%			21.0	%
Other recurring (b)			38.3				45.2				(15.3	)%			(2.0	)%			(13.3	)%
Total recurring revenue			747.7				632.8				18.2	%			(0.3	)%			18.5	%
Professional services and other (c)			107.1				103.7				3.3	%			(0.3	)%			3.6	%
Total revenue		$	854.8			$	736.5				16.1	%			(0.3	)%			16.4	%

---

Dayforce, Inc.

Share-Based Compensation Expense and Related Employer Taxes

(Unaudited)

 

		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
		(in millions)
Cost of revenue - Cloud		$	3.0			$	4.0			$	6.6			$	8.0
Cost of revenue - Other			0.6				0.4				1.1				0.7
Professional services and other			3.9				4.7				7.7				9.1
Product development and management			8.9				9.8				16.9				17.9
Sales and marketing			9.3				7.4				17.8				12.6
General and administrative			15.1				15.4				28.7				33.6
Total		$	40.8			$	41.7			$	78.8			$	81.9

 

---

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 June 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		$	77.1				77.7	%		$	3.0			$	—			$	0.8			$	73.3				78.8	%
Operating profit		$	14.1				3.3	%		$	40.8			$	29.5			$	10.5			$	94.9				22.4	%
Net (loss) income		$	(1.8	)			(0.4	)%		$	40.8			$	29.5			$	7.7			$	76.2				18.0	%
Interest expense, net			11.1								—				—				—				11.1
Income tax expense (c)			1.8								—				—				(6.1	)			7.9
Depreciation and amortization			50.6								—				29.5				—				21.1
EBITDA		$	61.7							$	40.8			$	—			$	13.8			$	116.3				27.5	%
Net (loss) income per share - diluted (d)		$	(0.01	)						$	0.26			$	0.18			$	0.05			$	0.48

 

 

---

 

		Three Months Ended June 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		$	68.0				76.7	%		$	4.0			$	—			$	—			$	64.0				78.1	%
Operating profit		$	29.4				8.0	%		$	41.7			$	6.7			$	5.2			$	83.0				22.7	%
Net income		$	3.1				0.8	%		$	41.7			$	6.7			$	(0.7	)		$	50.8				13.9	%
Interest expense, net			9.1								—				—				—				9.1
Income tax expense (c)			16.5								—				—				(5.4	)			21.9
Depreciation and amortization			23.3								—				6.7				—				16.6
EBITDA		$	52.0							$	41.7			$	—			$	4.7			$	98.4				26.9	%
Net income per share - diluted (d)		$	0.02							$	0.26			$	0.04			$	—			$	0.32

 

 

---

 

		Six Months Ended June 30, 2024
		As reported				As reported margins (a)				Share-based compensation				Amortization				Other (b)				As adjusted (b)				As adjusted margins (a)
		(In millions)
Cost of Cloud recurring revenue		$	153.4				78.4	%		$	6.6			$	—			$	0.8			$	146.0				79.4	%
Operating profit		$	54.8				6.4	%		$	78.8			$	57.9			$	12.5			$	204.0				23.9	%
Net income		$	5.3				0.6	%		$	78.8			$	57.9			$	2.2			$	144.2				16.9	%
Interest expense, net			24.4								—				—				—				24.4
Income tax expense (c)			13.1								—				—				(23.0	)			36.1
Depreciation and amortization			99.4								—				57.9				—				41.5
EBITDA		$	142.2							$	78.8			$	—			$	25.2			$	246.2				28.8	%
Net income per share - diluted (d)		$	0.03							$	0.49			$	0.36			$	0.01			$	0.90

 

 

---

 

		Six Months Ended June 30, 2023
		As reported				As reported margins (a)				Share-based compensation				Amortization				Other (b)				As adjusted (b)				As adjusted margins (a)
		(In millions)
Cost of Cloud recurring revenue		$	134.9				77.0	%		$	8.0			$	—			$	—			$	126.9				78.4	%
Operating profit		$	67.8				9.2	%		$	81.9			$	12.2			$	9.6			$	171.5				23.3	%
Net income		$	13.0				1.8	%		$	81.9			$	12.2			$	(7.0	)		$	100.1				13.6	%
Interest expense, net			18.3								—				—				—				18.3
Income tax expense (c)			35.0								—				—				(17.2	)			52.2
Depreciation and amortization			45.4								—				12.2				—				33.2
EBITDA		$	111.7							$	81.9			$	—			$	10.2			$	203.8				27.7	%
Net income per share - diluted (d)		$	0.08							$	0.52			$	0.08			$	(0.04	)		$	0.63

 

 

---

Dayforce, Inc.

Reconciliation of Free Cash Flow

(Unaudited)

 

		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
(In millions)
Net cash provided by operating activities		$	99.2			$	81.7			$	108.3			$	93.0
Expenditures for property, plant, and equipment			(3.2	)			(3.6	)			(6.7	)			(10.1	)
Expenditures for software and technology			(23.3	)			(24.5	)			(47.7	)			(46.4	)
Free cash flow		$	72.7			$	53.6			$	53.9			$	36.5

 

 

---

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:

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

---

Dayforce Announces $500 Million Share Repurchase Program

Minneapolis, MN, and Toronto, ON, July 31, 2024 – Dayforce, Inc. ("Dayforce" or the "Company") (NYSE: DAY; TSX: DAY), a global human capital management (HCM) leader that makes work life better, announced that its Board of Directors approved a share repurchase program with authorization to purchase up to $500 million of its common stock.

"Dayforce continues to disrupt the HCM market, allowing the Company to achieve strong results, profitability improvements, and enhanced cash flow generation," said Jeremy Johnson, Chief Financial Officer of Dayforce. "Our robust, scalable business model and improving cash flow metrics enable us to take a comprehensive view of capital allocation, balancing investments in maintaining technology innovation, ongoing strategic M&A, and now a share repurchase program. This program reflects our belief that our shares are currently undervalued and demonstrates our confidence in the business."

Dayforce may repurchase shares of common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions. The timing and total amount of stock repurchases will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations. The share repurchase program has no expiration date, may be modified, suspended, or discontinued at any time at the Company’s discretion, and does not obligate the Company to acquire any amount of common stock.

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, payroll, talent, workforce management, and benefits 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.

Source: Dayforce, Inc.

---

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, and that are subject to the safe harbor created by those sections. Forward-looking statements, including, without limitation, statements concerning the Company’s operations, performance, and financial condition, and the amount, timing, and benefits of a share repurchase program, can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “assumes,” “projects,” “could,” “continues,” “likely,” “may,” “will,” “should,” and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements are based on the Company’s current expectations and assumptions regarding the Company’s business, the economy, and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict. Consequently, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements, including those more fully described under the caption “Risk Factors” and elsewhere in documents that the Company files with the Securities and Exchange Commission from time to time, including the Company’s Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q. Any forward-looking statement made by the Company in this press release speaks only as of the date on which the Company makes it. Factors or events that could cause the Company’s actual results to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to publicly update or to revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by law.

For more information, contact:

David Niederman

Investor Relations

1-844-829-9499

investors@dayforce.com

---

v3.24.2

Document and Entity Information	Jul. 31, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 31, 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

---