Ceridian Reports Robust Second Quarter 2023 Results
Minneapolis, MN and Toronto, August 2, 2023 – Ceridian HCM Holding Inc. (“Ceridian”) (NYSE:CDAY) (TSX:CDAY), a global leader in human capital management (HCM) technology, announced its financial results for the second quarter ended June 30, 2023.
“Our results reflect the strength and resiliency of our business, coupled with strong demand for Dayforce,” said David Ossip, Chair and Co-CEO of Ceridian. “Our global HCM suite truly stands alone, by way of breadth and depth of the solutions we provide.”
“This quarter was strong across all areas of the business, and we executed well across sales, product, and all areas of operations – underscoring our unique position to deliver differentiated value to customers,” said Leagh Turner, Co-CEO, Ceridian. “I’m confident in the outlook as we focus on continued growth of our customer community, our pipeline of innovation, and ongoing investment in our people.”
“Our second quarter results demonstrate the durability, continued momentum, and scale across our business,” said Noemie Heuland, CFO of Ceridian. “As a result, we are raising our full year outlook across all growth and profitability metrics.”
Financial Highlights
Total revenue was $365.9 million, an increase of 21.5%, or 23.5% on a constant currency basis.
Dayforce recurring revenue was $268.2 million, an increase of 38.0%, or 39.4% on a constant currency basis. Excluding float revenue, Dayforce recurring revenue was $231.3 million, an increase of 26.3%, or 27.5% on a constant currency basis. Tax migration from legacy infrastructure to the same platform as Dayforce completed in the first quarter of 2023 contributed approximately 480 basis points of growth to Dayforce recurring revenue, excluding float in the second quarter of 2023.
Cloud recurring gross margin was 76.7%, compared to 72.2%. Adjusted cloud recurring gross margin was 78.1%, compared to 76.4%.
Operating profit was $29.4 million, or 8.0% of revenue, compared to operating loss of $6.5 million, or (2.2)% of revenue. Adjusted operating profit was $83.0 million, or 22.7% of revenue, compared to $50.0 million, or 16.6% of revenue.
Net income was $3.1 million, compared to net loss of $19.8 million. Adjusted net income was $50.8 million, compared to $33.0 million.
Adjusted EBITDA was $98.4 million, compared to $61.8 million.
Diluted net income per share was $0.02, compared to diluted net loss per share of $0.13. Adjusted diluted net income per share was $0.32, compared to $0.21.
Net cash provided by operating activities was $93.0 million for the six months ended June 30, 2023, compared to $38.7 million for the six months ended June 30, 2022.
Business Highlights
Ceridian announced the appointment of Sam Alkharrat as EVP and Chief Revenue Officer. Leading the global revenue organization, Alkharrat is responsible for fostering existing and prospective customer relationships and accelerating company growth across Ceridian’s global operations.
The Ceridian Partner Network (“CPN”) saw strong partner momentum with PwC UK, RSM, and Deloitte (Australia) accelerating the growth of their Dayforce offerings and deliver added value to shared customers.
Ceridian joined the EY Global Alliance Partner program, bringing the transformational benefits of Dayforce together with EY’s extensive array of services and industry insight.
Ceridian was named one of Newsweek’s Global Most Loved Workplaces®, one of USA TODAY’s America’s Climate Leaders 2023, and earned an “AA” ESG rating and placement in the Leader category from MSCI for the second year in a row.
Ceridian’s second quarter volunteer programming resulted in employees participating across 12 countries, 100 in-person volunteer activities organized globally, and 5,000 hours of volunteer time logged.
Ceridian will welcome its customer and partner communities to Ceridian Insights® 2023, its annual customer conference in Las Vegas, from October 2 – 5, 2023.
Sales Highlights
An aviation services company with 55,000 employees globally selected Dayforce to support its people operations in 35 countries.
A U.S. consumer goods manufacturer with 35,000 employees globally added Europe, the Middle East, and Africa to its partnership with Ceridian. The company had already chosen Dayforce for its Latin America and Asia Pacific operations in the fourth quarter of 2022.
A leading professional services company with 33,000 employees in nine countries chose Ceridian as a trusted partner for global Managed Payroll.
A leading global jewelry company with 30,500 employees selected Dayforce to provide a single Workforce Management solution across 39 countries.
A premier hospitality investment and management company with more than 22,000 employees selected Dayforce to help power its growth strategy and engage employees.
An online auction and shopping website with 17,000 employees globally chose Dayforce Payroll for its U.S. workforce of 7,700. The potential for future expansion to process global payroll within Dayforce was a key differentiator in this win.
A leading multi-brand global automotive distributor with over 14,500 employees in 32 countries decided to partner with Ceridian for Managed Payroll for 4,800 employees in nine countries, and SaaS payroll in one country.
A transportation company with 3,000 employees in Australia selected Dayforce to unify HR, Payroll, Time and Attendance, and Talent Intelligence.
Customer Highlights
A multinational chemical and consumer goods company with 60,000 employees globally is continuing its implementation journey with Ceridian. The company recently went live with Dayforce Payroll and Time and Attendance for over 12,000 employees in five more countries, bringing the company’s implementation of Dayforce globally up to a total of 20 countries and approximately 27,000 employees to date.
A leading global pet care organization with 30,000 employees launched Dayforce to its U.S. and Canadian workforces to help standardize operations and reduce turnover.
A luxury and commercial automotive brand has launched Dayforce HR and Workforce Management to a pilot group of employees in Germany, with plans to expand to its full German workforce of 10,000 in the next few years.
A U.S. public sector entity with 1,450 employees went live with Dayforce for HR, Payroll, Benefits, Workforce Management, and Talent Intelligence. This implementation project was a joint effort between Ceridian and one of our systems integrator partners.
A global luxury watch company began using Dayforce for Managed Payroll, Time and Attendance, Advanced Workforce Management, and Talent Intelligence in its UK operations.
An industrial electronic product manufacturer with operations in 14 countries went live with Dayforce in the U.S. and India. This successful go-live has set the stage for the company to continue expanding its use of Dayforce globally.
An American multinational media and entertainment company expanded its use of Dayforce to Malaysia and the Philippines, bringing its total number of countries on the platform to six.
A hotel chain with operations in nine countries introduced Dayforce for HR, Payroll, Time and Attendance, and Recruiting to 2,000 employees across Australia, New Zealand, and Europe. This implementation project was a joint effort between Ceridian and one of our systems integrator partners.
Ceridian had more than 1,640 customers signed onto Dayforce Wallet with over 1,010 customers live as of June 30, 2023. The average registration rate was above 50% across all eligible employees and the typical Dayforce Wallet user transacts on average 25 times per month throughout a calendar year.
Platform and Roadmap Highlights
Ceridian continues to advance the breadth and depth of the Dayforce platform, with new innovations delivered in the second quarter including:
The launch of Dayforce Career Explorer, a new solution in its Talent Intelligence suite that leverages Dayforce’s skills engine and combines Artificial Intelligence and skills data to support employee career pathing, while helping organizations promote internal mobility and succession planning.
Extending the industry-leading capabilities in Dayforce Global Payroll with formula-based, complex pay extensibility, allowing rapid adoption of new, native Dayforce Global Payroll for most countries across the Middle East and Africa.
Expanding access of Dayforce People Search, a key functionality of People Experience that enhances search capabilities for both employers and employees, to all North American customers.
Global availability of Experience Hub, the Dayforce platform’s reimagined home page with audience segmentation capabilities and experience customization.
The launch of Burnout Dashboard, offered within Dayforce People Analytics, to help organizations identify at-risk teams and employees and make critical data-driven decisions to alleviate burnout.
Accelerating of Dayforce Integration Studio’s interoperability with partners globally, enabling organizations to create, manage, and deploy integrations between Dayforce and other systems within their ecosystem.
About Ceridian HCM Holding Inc
Ceridian is a global human capital management software company. Dayforce, the flagship cloud HCM platform, provides human resources, payroll, benefits, workforce management, and talent management functionality. The Dayforce platform is used to optimize management of the entire employee lifecycle, including attracting, engaging, paying, deploying, and developing people. Ceridian has solutions for organizations of all sizes.
SOURCE Ceridian
