CDAY - Earnings call transcript Q2 2020

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Operator

Greetings and welcome to the Ceridian second-quarter 2020 earnings conference call. [Operator instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to your host for today, Jeremy Johnson, vice president of finance and investor relations at Ceridian.

You may begin, sir.

Jeremy Johnson

Thank you, and good evening.

we CEO, today, CFO, Ossip; call Gitajn. Arthur the have David Ceridian's and On

currently the on David intentions, forward-looking call in remarks, hand guidance, achievements, about I or Before to are future to and developments. are Each of information based to may forward-looking events outlook, a light activities, our call Listeners current allow that any results expectations such beliefs These from future set forward-looking assumptions for statements required provide and and future management's disclaimer to levels other or assumptions This regarding cautioned goals and statements. plans, include place statements with or the made results, me brief no on call, reasonable some risks us. or is law. subject undue to underlying We forward-looking obligation any risks statement could undertake statements. and available as may of the regarding such revise except statements affect not reliance statements. statements and our actual differ forth to We ability SEC other those performance to to on uncertainties on previous in significant statements. our by factors you forward-looking cause that to update these refer information deliver filings for be and materially performance, certain this could

website on With and in David. been as U.S. will Form the the investors.ceridian.com. SEC's The second as will SEDAR database the have report on the investor the earnings the call Ceridian database quarter available I EDGAR XX-Q quarterly and letter, or and to relations on well be at filed stockholder furnished that, turn release, over with Canada, SEC in

David Ossip

I Thanks, Jeremy. uncertainty. thank and this safe earnings and during everyone, for everyone time call. you of Good staying our is hope healthy joining evening,

I from Q&A, stockholder spend to a points important want our minutes letter. on go some to we Before few

COVID-XX Despite on grew ex a headwinds, float Dayforce basis recurring strong XX.X%. a First, quarter. constant-currency we had by revenue

basis In addition, by XX.X%, cloud recurring excluding and services XXX XXX revenue, expanded gross float increased points. basis points to by margin it

continue our history. Second, Sales increased was record-setting accelerated, in quarter Dayforce. see in in best it year also strong sales the momentum quarter to our growth pre-COVID-XX second year, and a over for and pipeline and and be in our we third second expect Sales we the quarter line with has quarter targets. to demand

was and Wallet Third, launched going well. quarter, it's Dayforce second in the

ready who customers the Wallet and signed XX are implementation. over have XXX have piloting for Dayforce more We have and over

we like While to it's the hand specific model. open early the I business and disclose in to would metrics, too product for the to now operator to back are confident call up it pleased questions. with the

Operator

from from Your Mizuho Panigrahi of first instructions] question Siti line [Operator the comes Group.

Michael Berg

a Siti. on wrong, This saw there. for from nice I is new quick. correct Hi wanted real Berg great new a I'm QX if is, Congrats for you some increased bookings mentioned this me on quarter, record on quarter. additions ask that And is you QX. pace actually I Michael to had quarter.

your new be applies to terms to Are well. it customer that if customers? months, I'm Is in are increased levels XX% per new larger XX of in new close of can your they to how the new trailing at pre-COVID those of additions of revenue the size XXX Dayforce or we And expect rest here year? customers increase net revenues? adds? in the for going from what So the on to Looking trending as XXX wondering

David Ossip

Yeah.

up per pleased by it we're the client with The went does. the new revenue So me very that. quarter, answer Mike, Yes, let in last XX% question. incremental so

client per continue, would where to Dayforce QX will continue in expect trend the see trailing increase. I to So revenue the XX-month

look to your and quarter to as you multiplied incremental I question, per As of know, number of to of product QX would adds, terms in would probably at look go the up. the number I of quarter. expect it fluctuates obviously, start QX the But so, adds the client, at more Dayforce by would of we first revenue the combined. which,

Michael Berg

color All on right. will you're the seeing new or the it. That helps and follow-up. market feel just like that out? general in And pipeline just then anything be for quick to a there point -- business in in you clarify competitively or Any commentary Is for volume? general key market

David Ossip

us. year digital over up for We've I very has year. seen marketing to our worked out, As summits at our attendance well virtual go pointed shift times two

in As set began. confident QX we expect line the we're with the that year sales COVID QX, very I be to targets our at we before beginning on mentioned, of and

been there's with that and say I would quite So we're competitively. obviously the an business. sales of pipeline acceleration momentum inside well doing

Michael Berg

you Thank much. Great. very

Operator

of Bergin. Bryan [Operator comes question line the instructions] Your next from

Bryan Bergin

pace. you. ask implementation Good to wanted evening. I about Thank

give the sense you the to pace the pipeline a So of by you're behavior changed April, has any really clients? in and can let's seeing deferrals to material signed how kind Curious just some say, of converting from, is signings July. and if us May the live how implementation clients

David Ossip

we're clients that. letter, go So with to in continue live. pleased obviously, as very mentioned the shareholder And

before recurring and revenue, months generally, contract recognizing time In about to six it begin the from start take takes revenue we nine how on those bookings into of to accounts. customer terms we signing of translate us live

distracted of market, the to terms the seen companies were the trends start there in work-from-home would very say we've of In moving a of COVID, at in that environment. were that I -- lot

quarter delays, great professional they'll QX, in implementation When look toward the utilization saw levels And I within live. saw and so hard I QX working some we're response we tremendously basically and get that down the say are and that. service doing our to work. go people confident And would customers we and

Bryan Bergin

or still there? relatively enterprises Are some seeing has notable you And Okay. us in changes color away, retention, been then there? are can far give you it going sticky as as any just that

David Ossip

sticky. change retention material negative side. in been the the haven't retention the We'll of Dayforce the It's very rates or we seen of change terms but end report at year, any on

Bryan Bergin

All right. you. Thank

Operator

in today's [Operator instructions] presentation. joining And are no questions thank queue. And you there for

You now disconnect. may

Dayforce (DAY) 7 Aug 202020 Q2 Earnings call transcript