Dayforce (DAY) 4 Nov 212021 Q3 Earnings call transcript

Company Profile

Participants

Erik Zimmer	Executive Vice President, Head of Mergers & Acquisitions
David Ossip	Chairman & Chief Executive Officer
Noemie Heuland	Chief Financial Officer
Alex Zukin	Wolfe
Jared Levine	Cowen
Siti Panigrahi	Mizuho
Mark Marcon	Baird
Matthew Pfau	William Blair
Samad Samana	Jefferies
Arvind Ramnani	Piper Sandler
Michael Turrin	Wells Fargo
Brad Clark	BMO
Robert Simmons	D.A. Davidson
Bhavin Shah	Deutsche Bank

Call transcript

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Erik Zimmer

[Abrupt Start] All participants are in a listen-only mode, and question-and-answer session will follow the – in the formal remarks.

As a reminder, this conference is being recorded.

On the call today, we have Ceridian, Chair and CEO, David Ossip; and CFO, Noemie Heuland.

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

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

David Ossip

everyone earnings and you, our call. to Thank Erik, welcome QX

Let a currency grew by revenue GAAP XX% ex-float a me a up We XX% by Dayforce on the constant or XX% on about business. revenue, Q&A. on a on basis. currency basis the or for with Total general a XX%. open had words basis before entire we by quarter, solid great execution it quarter recurring basis continued across few very increased say GAAP a quick constant

increased XXXX, slightly $X.XX narrowed of the year to range fiscal we billion and the billion. guidance to For the $X.XX we

in on by slight increased year-over-year, customers basis Customer negatively a Float also and XX ex-float the basis, up to basis. cloud but POP by on an basis a EBITDA of points also average XX.X%, Adjusted of points up gross a is income an live and to basis XX and we customers. quarter-over-quarter accounts was margin XX.X%, float a yield saw margin, on impacted XXX cloud by size basis on basis, points which XX% about the balances increased up we points. constant by about currency gross about decline XX-month was the taken about is improvement have increased XX%, basis. the On XX which XX the XX%,

to of Wallet, live continue on strong metrics. above The the now On see customers. Wallet is Dayforce very we customers number Dayforce XXX

be number and technology continues team with which Also delivery end-to-end XX%. gives We is be Ceridian people event. solution above over registration delivery, announced manufacturing, pay, anchored We event obviously Vegas. we global payments, had us the is better. is of wallet starting compliance And first highlights investor the and we contracting, few and rate discussed two support. years of event This Time over XX%. a available an early earnings environments, making us. Thursday sector, certified our that We October, above October, in government profit. our see first accelerate, the construction, on Las At the will track portion p.m. of eligible the We promise about work rates York. of on our session saw Dayforce calculations, held will CWT at Eastern employees, specific and the workforce immediately we the the In This of AI an growth Intelligence prevailing have healthy, rates net Ceridian on Usage reporting. primarily in advantage an shared is by Dayforce. will earnings for deliver also an solutions some talent brand event, have very incentive Talent to suite customer including service the compliance product very unionized management on feature of the is Tour in increases our on the to transformative We sold of HR in-person which November at public not This of life please platform Webcast, we in with look which Dayforce stop we with access XX of first for the in customers and week calculations, announcements HR our help union XXX in general CWT capabilities point focused top ledger of payroll employee and complex integrated will to wage across we our the Fusion, when acquisition our reporting, Wallets. on into also for next customers, rate announcement time. the which provides Data automatic XXth A World to Dayforce by accounts per the Torstar data. which grow to build a with who that at join vision plan empowered for screaming X:XX closed further including wallets of be employees' registration tenured average quartile New this of to always transactions acquisition transactions And so month. always success the an new executive the

Management product this innovation Gartner or Magic Ceridian or our leader delivering also Quadrant website, to You on enterprises on share the the quantifiable named very validates was X,XXX for can value vision, Cloud live our report I'm pleased via Webcast. once commitment find Dayforce our in employees. believe a that this to session XXXX register the further above to Human for of event information again join how investor the and We suites Capital our the customers.

like hand Before of am globe. proud to Ceridian across close team would the it by I our to Erik, I saying, back I how

are metrics engagement Our up.

new purpose work and never Our transition more Erik, to culture been life to you. relevant, clear vibrant, work customers, our our better make our alongside remains as we to environment brand and a back and promise hybrid has

Erik Zimmer

from comes Alex first the question Today Zukin line Thanks the of go David. of Wolfe. ahead. Alex [Operator Instructions] please

Alex Zukin

and employment And quarter. letter Ceridian start solid to seeing the a in base from ask tailwinds guidance of headwind anticipate a look particularly in business? or wanted question we congrats seeing called And question you, to which I be if able hire the initiative to. customer at out get on many you not at of and a pace same the Thank I'm of impacted how big picture narrowing wanted pace you and it clearly -- I rehire paid they impacted to the more. hire for long, broader organizations being perspective And modernization some you tools, do pay Ceridian back for And war the per David guess, but at shareholder you're talent necessitating And employee HR it range. assuming if this the around the them can't headwinds out we can't then per a guide a wanted business month. you I asking the quarter. of step the around at that time your by the somewhat. are you the Erik. is the team to

ahead We helpful you And but were So stuff those bookings PEPM work about are we think? -- well very you to can where balancing because would that talk can't those they to be. two thought out numbers. are see be us see I new of only going the dynamics,

David Ossip

Sure.

break down So it into different Alex pieces. great series try I'll of to questions, so

the from we time accounts. we expected QX, spoke headwind last improvement had $X.X a for employee million So in

As we their for in taking seeing our the out we're slightly customers pointed fill it's requisitions. job shareholder that leisure, to longer, open

that million. be So And by Dayforce decreased of is the taken. we actually we've to what we about down have expect $X.X improvement tightness that the

amount. corresponding So we've widened the that guidance QX by by

taken we beat in the guidance to full like. if the QX you we However, have year had that

So in that gave the actual guidance. us the increase

that executing sales I last and a business. have look for remains will the speaks to In pipeline in before obviously at actual believe the we it it sales are half the the terms very well forecasting come the of execution strong. of obviously do favorable quite if tremendously second the of business perspective which to year that I And that still we year been to year from

of a of implemented with implementation from satisfaction On levels to seeing in feedback our customer terms activity tremendous NPS the well. the customers. lot some our the customers I'm And continue projects actually as be or

tightness the which a magic in market, just will given or into which at good. employment the saw wish give mirror something. remember this guidance that do what November had September we visibility see believe give currently us range But us October. hiring and like And numbers the I October if point of pretty did I we we're the which us what believe terms into In in is in you know looking seeing of at November our We December. visibility we we gives what

Alex Zukin

models based a of did marketing we the our then an on and then year just the spending multiple look of track also for postings Ceridian's more that on for check And we great early either the should I start it some job this is maybe as guess like I assuming we indications? bit activities. And be adjustments bit you over for we wanted tailwind our couple these start model assumptions are hiring implies through I as because double -- it. Noemie declined postings guide? adjust a quite targets to past around all should And job could but moderating weeks you the that hit do thinking adjusted hiring It I'm walk EBITDA and sales apologize questions employee your or little general in us for also that? we of but Got next

David Ossip

Yes.

What been Just fantastic struggling on we the organization. haven't hiring very we across hiring say in throughout will been have the that the is year. finding really aggressively candidates side I

Noemie In in the that it goodness terms to fun EBITDA conversation. hand I'll all for and adjusted the of over

Noemie all to over So you.

Noemie Heuland

Sure. Yes.

as $XX.X XX.X% total QX for saw revenue. was or EBITDA XX% of adjusted our So you million

total hiring expect before. This of which as And pretty tight saw what and range with attracting year, well. our talents recently. in exciting strong largest XX.X% are comment For the ramping to our invest top significant very Fusion also We've There's is we to to technology which made live a some our up continuing as Data to shows EBITDA brand R&D focused in is and service QX our And our the market announcements in our above saw less to of about total where is you spend of ramped revenue We delivery investments timing capacity very product from this consistent margin the see XX% our in we're cash successful than we to R&D from went XX.X% quarter. thing year is revenue. We're go-live into QX. a actually made customers last of services go the we've our in QX said in in we you going up full lot QX strong our Dayforce integrating technology. we're product in reputation that your our live quarter. labor to on large kind We've some continue XX.X% customers adjusted the of up QX, is which on platform.

invest The say customers is and marketing which We've our very was that other from for meeting learning we've thing, be pandemic also throughout prospects I successfully capability Vegas to years we've reopened selling the meetings prospects throughout two the that's obviously and fourth quite in-person benefits on we go continue so digital reps having sales quarter. the team site a do the not would offices and and our away summer sales an that well throughout example done we sales seen after continue as We've apart. are of QX. returned in spent sales our digital we customers from people to traveling to North want as to America. important our our in lot also -- and going And But to to times. is great meet a and in

But So the consistent. adjusted guidance overall, and QX hasn't little range bit changed between full year that our timing investment EBITDA and QX. explains and remained a priority our

Alex Zukin

Thank much, you so Perfect. guys.

Erik Zimmer

next Up got Levine Jared Thanks, Alex. we've from Cowen.

Jared Levine

you. Thank

of kind In that when stand expect And do if do what's full above improvement? pre-pandemic if Dayforce we versus below you sales a of where force -- we're productivity driven terms what recovery?

David Ossip

pre-COVID? Sorry, productivity Jared about prior you're to talking sales

Jared Levine

Yes.

David Ossip

quite answer next number more I productivity if our know are That's I And I of we even the to because with get group. look pre-COVID, would we expect numbers. think pleased would a is post-COVID. But when actually towards productivity out to what difficult we've measured year actual don't sales I a say that

very put building in focus platform, would move to anything the you America working out we As team. compliance our only this And we only muscle with all been relationships, capability year, in number that? know for We that heavily in add sales a going very modules. the place Noemie, space but system the that would global integrator not you HCM invested on of into out One, enterprise to reasons. actual on obviously, and the the has out is of a build on say I did build to basis. to North full not to in well that also

Noemie Heuland

No, support with alongside We've advisers, it I can in who customer. all. system think integrators a large you people solution also and advisers sales invested sell covered value with upmarket organization, the and

So that -- the of but covered points, most you David.

Jared Levine

Okay. Great. can Dayforce there? into of an you anticipate dig in pace And what XQ? of lives do terms on you XQ, weighed then that uptick And of the kind in go pace in

David Ossip

quarter. bigger QX normally QX a is always is lighter quarter. the

the in live yes, for the we expecting actual many is QX QX, over period. So, are which accounts typical to go more

being the of of are going accounts size by the of terms driven largely it's the In live. accounts, that number

take that live live a X,XXX counts employee XX,XXX compare where trends XX,XXX effectively to for I we the count employee account, if for XX. say we're historical example if So taking would

more an type average we of basis look trend now, at on So LTM actual which the more an business. us gives of for it

Jared Levine

Thank you. Okay.

Erik Zimmer

Thanks, Jared.

Mizuho. Next from got we've Panigrahi Siti? Siti up

Siti Panigrahi

guys. the growth your a expense dig solid of couple Congratulation you to, in into of back. drivers and I quarter. a genital years wanted be to market. used That Hey, David, about talked one international

you expanding well. will and market? and think talked native like, some your you do be contributor you you're of also are it us your -- international Now a payroll seeing global from payroll wins when what to material these as Tell revenue about

David Ossip

definitely companies global terms core It and global advanced success operations. market look nine I we players goal moving to XX% the are terms well of very as in in take positions discussed across these and in that client it in in experience basis about come a the in three-year about our additional in employees with in might for adding base the America countries accounts. would having us North outside longer, payroll generally We might of our all CWT, revenue demand definitely that relative So And and I we that basis. are regardless think seeing, of and quicker payroll, We again, inside other bit XXXX At companies organizations of that suites an compliance increase headquartered in probably give Obviously, as, to a a market global with of, live say, we'll the of globe America, push they global direction. of HR. win well cut modules actually systems for global onto have are market lot a core have North just capability. to that HR we're native that that talent work. their single all where of but

Siti Panigrahi

event. about it or we Dayforce when the this as the Wallet. CWT That's great. the do the and to go other sign like, start That's in will contribution? you you then well customer live to as quarter. or But think reasonable next see you should pay other for introduced then Dayforce talked good in October ramp new streaming few in quarters? in disclosing versus quarter also Wallet, about be follow-up How metrics think revenue acceleration any revenue a And And to last

David Ossip

next revenue year late start contribution. probably we'll think I on the

it's I What know, the look I business every you on a can quarter-over-quarter still us. it's business As at quarter. doubling new effectively if a basis, for say,

hyper stages of of kind through we're I So it. still call growth of the what the going early

the believe to the about we be that all a like. convenience, the customers withdrawals been at we about gas, metrics doing spoke over registration top with transactions I'll grocery, XX%. that people look now average strong when discussed. that rates you Some And well XX%. we're ATM to, employees seeing in across metrics quarter, fast-food, of the eligible Those It's last registration quarter have live I year, point XX% the living. everyday over usage XX It's above and very we that are

released early wait the nicely. user, type us your earnings payment when get you obviously The will one-third or instead up pay can over Dayforce early well. to want net as days earnings will to come for mentioned remaining So in it's strains as on-demand we deposit financial is obviously during direct with the compliant early quarter doing product. wallet paid of a fully which direct true out get is that because automatically that inside means payroll, rich is every deposit, paired days actual believe excites of to if you about access an to the we online that Wallet or that two quite you instantaneous fees there idea fees will means And talking to the two-third the which wellness well, say the we're transfer. you streaming a of pay membership period, organization. and be a work you're every We with two as can and as In quite earnings you'll pay for into to I whole an completely employees, no slip my take model on two-day the no of set accelerate get XXXX. up having to your making and again, fees, no And predicated the offering very

given So with tremendous the Dayforce in quite we a it. market. excited us by wallet also has are way advantage

business attachment Dayforce I have top still with the is of every clients, with well mind. in seeing that new early conversation clients, wallet are rates across And We across XX%.

Siti Panigrahi

Great. Thanks, David.

Erik Zimmer

Siti. Thanks,

Marcon is with Mark? up Next Mark Baird.

Mark Marcon

results. Dayforce great the on congratulations and everybody afternoon, good Hey,

automotive if characterize from really bit mean I up enterprises. those you number who ended winning like global organization. just significant all a largest could car long large are you a wondering little mentioned wins. rental luxury you companies, of had You I'm

is of how had pipeline? changing the number international Gartner terms your replacing? And scope You the ones. a of the impacting you are is from Who opportunities the How to in sell? ability of recognition

David Ossip

customers, I seeing full Mark, HCM a today buy is full more is HCM suite. the suite. clients of I we're more say and buy customers the first the thing number would believe larger XX%

takeaway so, data not now core and that and talent but comprise HR, only being robust from system in and other compliance rich that that payroll time employees. the all benefits leader player, are as workforce pieces management, very a compliance is a and seen we the engaging also analytics a And intelligence, for being of

As we upmarket, we've compete are add proud the our obviously over customers. and the more quite management are I'm more quite gone payroll our success seeing rates obviously backs as against you against of there. do ERPs capital win We traditional human nicely. over know there And and also

of seeing And a more or comes on-prem of be different wins, terms or more type solutions payroll of point solution of we're time usually also server replacement based. either to talent replacing through might In not lot types obviously, when modules. legacy a that replace systems ERP legacy-based we mainframe We're of it the various client or cloud.

Mark Marcon

you've about the And for opportunities, impact a going think perspective That's your all international How that to to then EBITDA lot that should relative margins How got term opportunities in we great. of digital next of the have? investment year? is wallet. short you different growth government investment

David Ossip

still America share North a basis. it a be on whether have market We our Look focus in on Yeah. small relatively is growth. global

invest is than the company for we growth more what's on believe EBITDA. on the So actual increasing to right

product continue sales are in marketing. technology, We going and investing to and

in one single that to And very base. platform add-ons space. way speak we tremendous every factors of we in really innovations us have the white the of remain platform. a five and we're expand XX% to to what some doing about new spoke at back long go of terms our Jared still growth allows to market bring the lot remember number around quarter. go obviously terms always In well Two acquiring increasing actual about, customers, which a

moving a years, talking XX% the the we time not enterprise full space. Moving only enterprise benefit spoken spoken good. excitement the into enterprise are a about into are buying metrics And come wallet, about into course, Again a have now of payroll a about expect our And in suite. lot HCM moving on HCM really but that, look XX% of number we the there's of the a of perspective, markets, I've space full which lot the basis. opportunity. about on the from space basis. adjacent We've of it's Dayforce customers which the very and global then and I global is revenues

in company, factors down of as trade-offs And to for of considerations there it the different obviously the excited. comes a long-term when very So emphasized. you mentioned, which we five as growth annual terms of are and to the lot budget growth, are we

Mark Marcon

Should ahead. assume we just -- go

Noemie Heuland

one which business. that the at us, recurring and long-term was really looking going fuel excluding indicator XXX because the to up of also what's indicator We're And It basis margin, points, the is cloud for float sustainability the gross profitability that's of up. this key quarter. going keeps

So that's as looking really well. we at as what scale we're

Mark Marcon

at EBITDA short-term investment all really probably should year investors margin given terms looking just gross recurring cloud deemphasize over the focus of… perspective next the and on margin from the in So opportunities the

David Ossip

a we growth going it's And about look nicely. or a up at gross we cloud revenue. has that went think, that expanding public, would the I alongside time it's say margin metric is continued the recurring I have whether to emphasized important talk that is not internally, from point. It's very the we very that one which Noemie

basis headwinds. still up on even the employment XXX headwinds it's the have basis almost points mentioned, Noemie the from currency sorry, constant given -- X% a we As year-over-year that from

Mark Marcon

Thank you. Great.

Erik Zimmer

you, Thank Great. Mark.

from Pfau Matthew Blair. is up Matt? William Next

Matthew Pfau

how that was in can of market just working terms And more in area? opportunity? functionality Yeah. Tour employees. vision the some that in your workforce on that and Great. provide on Ceridian potentially area you connecting employers guys. at Thanks, David, with World comments you discussed think elastic that the some you Maybe about

David Ossip

steps three about of the for time. spoken always I've about having spoke I sequential delivery. this here. technology Matt some Thanks, quite

out in to obviously would net calculate continuous can merger that's The worked. us And engine thing the others us to that believe first we do a the build someone quite around have earnings step quite difficult we we as that allow and do and to can't. that a competitive was

step second and we also pay earnings not the Wallet that in but seen was and time calculate in traction. only came people rails so The time down that to net real could the creating would real payment great we Dayforce we've

part The third right you're download to and Dayforce your well, we you person. a are. process. safe was, the the who the you We I if have KYC know certifications that Wallet We are know work. We know what know

the learn We time. management jurisdictional contract. the And along what even allow the are the And we also the minimum could to to know easy clock see Ceridian looking get the and code some allow things awards the can a to and competencies be premium with able they hours, around out like show say their for the apply they'll can then when four-week through and actually It we could doing look their just of publish doing remittances, a all And access be having going. app the of which at could be a would clock money make would work Dayforce also they'll now We actually the ability QR is could do this were the have or all not to as what would be for three, for for the has only all shift organizations instant number from soon different vacancies such could of of vacancies. program where can as the as app get for all clock management through go you'd the would the to inside And Wallet actually time, you about a and but in in like. we we hours as approved, users and learning that movement. workforce learning real assignment and In your believe They say paid show a they clock earnings longer-term be we're much vacancy, right possibly to Dayforce delivery they all organization task be publish they a matched And to geo responsible competencies. worked. to the have the of to a them, required is, filings locations. via that a case their up and very application local year-end have content, be types vacancy overtime, it in out. paid. rules necessary in vacancy the you which get And matches pay Dayforce wages, capability find like

that payment Obviously the with started us build-out excited enable quite calculation We've that will we're Wallet research So have already opportunity. we rails. actual think that the great to I through that. Dayforce the the and partnerships the and stuff do leveraging continuous Dayforce the engine

Matthew Pfau

of features to point conversation? around And some then at from the is an think the that Tour of discussed And do when it. selling How Got a prospective customers? just an ROI AI and the self-service some perspective you of you on other the that follow-up it. World important specifically about those Got features. you're

David Ossip

everything said always impact Matthew, KPI measured, that a tie So needs back down money KPI saving. and measurable as we've that a at built, And we we can convertible to to be into we a customer.

basically in hire rates. For show we the I the decrease believe talk the in use in attrition we're of industry some about Dayforce we the ranked someone. terms quicker the decrease number in very term delivering XX-day strong quantifiable rates, value metrics about The ROI. Wallet, attrition strong that first us, one talk to we actually and When time

always out, it the along lines. same build actually we as it's So

and market list a particular the I say management job In If level, a is would framework. what the who candidates, has on requirements. X.X. to really Netflix you or I once the at Talent terms a I I that list movie or candidates be release a of called list but or now, that good to very hiring that I'm requisition. is high candidate Talent prediction for of the with accordingly. sought can set those then today talent this driven. lot a to and shows act operating sequential align for engage not at technology. instance we and the or can people I Amazon systems we're recruiter. a we intelligence, look candidate meet automation TV the go when a in We're usually operates with the same products will the we a go go And on candidates find recruiting, of list even something it's And model, recommendation self-schedule, system more recommend match moving on now have of that, the use that either bot candidate based that predicted I to of interacts steps list the number would when like go of then side. system, type and X.X talent that to we're you When that through I'd the similar manager manually like beginning a recommended your shows we to doing filter it's of who like and In to

at the available them is application job who be or they good the on applying for may and candidate for for in type particular the fit them. candidate that is if recommend requisitions, So one and we get and even point can opportunities, complete engage, candidate, back applying other to the a the based of to where time job,

would much at look models a engage models currently in go using people talent it's to they expect. and that natural what's ML in with manner been effectively done So more typically in order AI to and

Dayforce terms In system of a service there, lot the there's information that desk over the of has.

or continually ML I of have? off natural I becomes that again, a Am And can department. a continually And and load of way learns off moved policy. by more HR the the interacting What already given of in for natural driven type to As now the to workspaces about can through way. ask through as days just opposed questions we've engage Slack now very Teams of take We that's the the with you system policy a do doing you employee can system. model eligible natural with know, vacation how many into is of evolves, something? we allow lot

obviously, and get lot excitement So, around of intelligence data. order a in to

come before about and you do actually technology, see have in few Ceridian exciting. talk Joe really of a demonstrations Tour, the the which we to obviously which came you you'll is Vegas others, If World that

Matthew Pfau

David. Thanks, Perfect.

Erik Zimmer

Samad Jefferies. we've Thanks, Samad? Samana got Matthew. from Up next,

Samad Samana

for Thanks as it questions. Hey, appreciate I good always. taking evening. my

new maybe the about booked David commentary in company about going as you, How prior the how just we around percentage was international for first book side, new I bookings this think clearly So forward? And And maybe this as should that. or the has think done around quarter international international traction. positive M&A dollars like of quarters? dollars maybe versus should a quarter

David Ossip

obviously live and Samad, I actually that side. global I of in very But both to on and I don't success think terms APJ's continues we've them look implementations, if seeing of included numbers. the business global actual only not getting EMEA but referenceable. off a the sales the hand, we're don't have in customers well, lot in at do across

certainty global North a some we in almost In systems it's or America. based instances, as actually see space, they upmarket they're the whether headquartered globally whether I into that go our always we are both. selling companies we're mentioned, As

two If global you kind letter, we through. look speak have headquartered more the across their actually actually for There One went Germany, manufacturing of we other processes, that was for the the were company Germany. one operations. at dealers shareholder and was out of automotive they an separate about

benefit vendor a we're as benefit And lot risk go become through a the kind lot across a the overall of having So those. of the see just both organization of globe. from or a and of growth you profile we obviously, and there's

Samad Samana

that's from maybe of outlook that? near-term on the that? included And EBITDA then the margin or we the reopens. XXXX, as think should government then, there think it into the the in impact maybe back Is the world just for fourth see how any the how about the brought on just we great impact federal been should that and that -- quarter? that Canadian guidance, margins from to revenue now about even deal contribution was Great Is

David Ossip

revenue the we of inside wouldn't midst subscription actual being for material. phases amount service the Where planning of little and for pilot call in the quarter, GOC the It's So Obviously, test departments calendar the of bit more are in the government. government we're the majority will experimental to but inside of the out obviously, included the revenue effort department the there's a with that a across of the small to as happen pilot work first XXXX. in that the also of will pilot of executing in elements terms require various system. be the actual I

move of well. forward number be will thoroughly, as we the that expanded departments as likely more it's So

Samad Samana

employment payroll just and hiring I Great. to just they're know base a how just way ask levels same those well the in many a where we the base? assume shifted if question as is? there's could have And something to installed I hiring think all just one, is back you company automation a I HR were to or before heard the to guess, goes sales should so it given of which CEO pandemic? safe the companies plans back the I about if growth else there's recovery. equal everybody When think more squeeze I get you're levels? within far where curious, to different wanted third the the as I as about will to maybe assumption within is the a regularly, I'm large efficient mean, they exposed don't that about how Is much need as get same-store then if

David Ossip

factors. pre-pandemic. of they'll think do levels I where I above quickly. think a that very There Samad, me, with ask do were up they economy you the is If are end employment growing number

previous their levels but back not And levels. above hiring are their so are hiring to companies

economy pre do the new that didn't are think actually is, And well. part as have exist are lot that second there of The pandemic. those hiring the companies entered a companies I

we'll back XXXX. move we do think, I the into So economy as to employment full very go inside

Samad Samana

much, so David Thanks Great.

David Ossip

Samad you, Thank

Erik Zimmer

Up got with we've Ramnani, Sandler. Arvind Piper next

Arvind Ramnani

be about But Wallet. ability just derivative Hi, talk couple to about a ask Siti's of can a Dayforce to second Erik. going derivative you to what Dayforce know more I lot benefits think Dayforce But of you bit David revenue start on year. some impact question of or some on are provide great. when is of it to I interesting engagement? I mean some derivative One charge like, on of is Wallet. second Just color a the of the portion more Wallet? the Wallet. on be rates, provided second win Thanks, you want I clients the have next benefits Dayforce questions I would

David Ossip

we employees. them fees run is without to is are companies because that any having our up, way of they terms obviously payroll to subscription cost in goes to them move to allowing to fees or rate the first to the fund immediately do what their people Look paying without change, and their

both So benefit tremendous to to employees. it's and their a organization, the

an from a and weekly working They get fact, go could onetime lift wanted well. capital a organization benefit. a additional biweekly In to monthly payroll of or payroll as

I So important. that's very think becoming

The second say, It's paid get that the business in requirement optional. is, is I is what today. no becoming to would a desire immediately longer

is that to in that I anyone state tech When moving think do there deals, on going a have else think And compliant market that's at well. we money, better fully in is our the has have cases, we it as the just or So the based piece do pricing we seeing the payroll very every than and provincial strong I federal or true employees us with actually where There actually And the as allowed believe last we Dayforce advantage been have Wallet. in our the the of some are well a the customers. market. some inside that them help basis Canada. on is economy we in very that the we're move time very, that, does to I brand increase maintain focused on

choice that I the but only the over time become the And solution, preferred not of worker well. so, as for expect we organizations, HCM would for

Arvind Ramnani

then, back model? What understood or And derivative like mean, revenue I impact. the an is XX interchange Terrific. something. it, to the like I've it's maybe getting bps of from first sort what

say use to they So card. I someone debit two pulls, let's and is go to is bank an for $XXX say it. debit the fee Is goes $X,XXX associated going model? the -- into gained stay there account, they be from interchange account? And questions. that where $XXX when in bank card understand there's business What with situation But in my even my the to $XXX that the into revenue to pay

David Ossip

we mentioned, seeing the is cards. all, we currently, don't spending of When they actual an the usually of transfer month, don't any the that again, So And living. about there's XX from the someone probably $XX actually fee of per on per we many average ACH day-to-day XX-day see transactions much which to first does isn't about transfers see transaction, actual as there cards. What we're employee.

what there charge into transfers XX we instant there, that. is to up year, for Next ability an call will or OCT And move they transfers. is to over basis it points Usually the credit transfer. that the we disruptive card usage of quite becoming are to in is discharge type seeing wallet that particular terms industry. cap small What for the of of a

the card of are seeing of more way, on of card, obviously get into of their the are don't lot on big employees the actual instead a that the In now XX% benefit we're Dayforce where them. instead. a So the using a using There's end statement at balance the situation, credit paying they the they top from of there month. and are the finances

additional we'll terms rewards ability increase opportunities, as buy our of In move year, opportunities of moving into take into pay start revenue like rate. into next later. we the to now like, things we those the And move areas types of us probably all give and

points revenue that actual on the the with rewards, item on For for now would pay be that there example over later spend get we of by obviously share about the buy the expect a was covered basis particular reward there. on would type to XX basis, partner

Arvind Ramnani

looking for you’re weeks it next event to ward and that Appreciate That’s terrific. hosting.

David Ossip

That’s great. Thank you.

Erik Zimmer

Thanks, Arvind.

up Fargo. Michael Wells from is Turrin Next

Michael Turrin

constraints, in suggests either we labor at on that's maybe was either taking even weighting reflective move all this a the likely so that on the if seasonal Thanks there lighter earlier if to up I'm is question. side and expecting. But or the go-forward And little partner if Good see year the seasonal appreciate a number for or it to of wondering, services or And more truly were and know afternoon. there. basis? model I just Hey does one already towards if model. the partners? tied look go-live in dynamics the a that net QX market than here what you're of a

David Ossip

Mike, was of tied to the it customers. size just largely

Michael Turrin

Okay.

David Ossip

it to year, So, customers out at between biggest used to I the in QX quarter a we basis the because the reconciliation. as evens because to always year wouldn't avoid say you read first the on want US have last half And being it. look anything it quarter Typically, quarters.

we obviously a it value the of we're track very at honestly, internally, Quite expecting QX go-live. dollar healthy So a go-lives.

really So the we we at on go-live focus look don't their cap number. actual the quarter, in on

it one actually as through The a we system. perspective, could viewed other it number a system I'd country, call if part customer when type a whereas pure about what really from you number would different different have view live isn't contracted because, go-live, as a a from that finance they that have go-live, of the as in be second entity, goes a

look you So much the anything at it. encourage read too more LTM than else. I would into again, I wouldn't to basis

Michael Turrin

us If you that PEPM metric maybe David, you go-live to we'll want give But talk... the take can too.

David Ossip

I'm a just Noemie. question That's for customer. a

Michael Turrin

Maybe incremental the now Dayforce you just could about above $XXX,XXX. that's metric talk

if as you wondering you milestones is just all that there there there continues or think if trend given new thresholds to at a are I'm well? So hitting higher ceiling just and

David Ossip

is it obviously on we on the then look number the you of at which growing And the that up with No as And number go the employees I modules And y-axis as on the look x-axis that the have get way the time. a of those. we the that well. pricing we we rectangle. increase y-axis have for it's customer all is the PEPM

continue it to up. I would going expect so And

Michael Turrin

much. very you Thank

Erik Zimmer

Thank Great. Michael. you,

Clark Next up from we've got BMO. Brad Brad?

Brad Clark

for guys the to question. Thanks want I my on focus taking strategy. payroll

You lot focused announced of agent XXXX. path. Looks new countries build the out like a lot for on a to

Dayforce And how see And just so discuss customers? if Thank rollout? to impact want the payroll your see of winning can level I around do on on new to strategy broader when the you a you. expect payrolls you

David Ossip

Yes.

we're actually would three great a focused regions. on Brad So Currently, I say question.

would first you'll manufacturing as impact the cover That see complete And move and inside America. into on customers be North region to in probably us North have the North well America short-term Mexico obviously obviously will with The rollout. America.

and on we're EMEA. is tremendous as second good seen Ireland. presence solution got in We've a in really we're quite area focused for know very I've the Germany The UK interest into and as in quite traction native we you of Germany launching and in are other year expand to lot of countries footprint the we're a seeing obviously to that. EMEA. next road have get a well Once payroll surrounding dot going Germany Germany we across

got core only we're customers we Excelity regions management we and And opportunity go-to-market. HR to revenue a base us. move within obviously attendance modules on but the build is lot customers you things payroll time well and kind Also all workforce we've of which their that bureau not to like APJ, call gives we as back what capabilities quite the have acquisitions and for and of onto as doing integrated an also go the is the large opportunity add talent Dayforce, Obviously is across APJ. for of area very pointed out those us native that and of a so RITEQ. Ascender the third out reason that do through The

a presence areas have across. we across region A&D across big sales marketing like and areas the and Singapore, So other

market which anything XXXX market focus the as customers us which to about X,XXX means we capabilities we also add more into get move would what to And have quite Noemie in in see migration the quickly. to and start we you'll upsell the base call can implementation is incumbent you that? and We of service on region. that

Noemie Heuland

you No covered all. it

Brad Clark

you. Thank Great.

Erik Zimmer

Brad. you, Thank

Davidson. Simmons Robert. D.A. Robert call to is up Next Welcome from

Robert Simmons

my Thanks questions. for taking

that model revenue for it's wallet you going is simply to said about the streaming monetization as any money into not going the charges isn't what but So be you wallet and talked pay there?

David Ossip

as is It's on on year. the It's comes the demand same pay same model, streaming next Robert. board effectively pace. -- It

at is at I earnings much So mobile current device the net me it tells look have I earned. experience my how the moment

they Wallet So all When added I $XX seconds wait on I'd day. as seconds what streaming we're elect reason a funding at the their my earnings the money pay year to I my that XX XX of actually the our taxes to earn spend. the can is And look every my and I to is Where flows before to XX-second and I other that X doing balance end wait card. of we stream Dayforce at wallet that my do to transaction for or goes slip card seconds about transactions still a we're and interchange an my is to it growth we they same on go but like deductions often exactly on going get when the about elect then card just have then about don't do spend through I card. immediately the when calculation types and to the on-demand of creating say the or I X the to pay. back actually seconds and

Robert Simmons

Got it.

Okay.

comp. was directly thought it was not guess into correct. going that I the I So

David Ossip

onto Yes, goes Dayforce it the Wallet.

Robert Simmons

Got it.

be going to preview then And week what investor have giving any Okay. you're you at next us do track? the

David Ossip

is the the you investors With the investor provide actually executive an for team. do meet to wanted to track, we opportunity

Leagh who Customer I your Leagh the also think a group? obviously, and dialogue our we'll Noemie, set executive people Chris Group. Chief heads Erik, wanted broader Officer. will we'll quite we to am else the with track, Korngiebel, the have by Noemie, our a up in Armstrong, Consumer missing allow have Products Ross we'll of So Turner. a I our moderated – to Technology Erik, Seth we'll have in it Chief team. executive have Well, So Joe have have Officer, have have we'll

Erik Zimmer

few There's Yeah, be earlier what the then that's actual applicable we and we've a customer kind right. selected we've done And sessions investors. other a most that executives. curated is think couple of of to will

Robert Simmons

Got Thanks Great. it. very much.

Erik Zimmer

Shah Robert. question And Bhavin last from of for Bank. Deutsche our the Thank you, night

Bhavin Shah

guys of expect deals? on focusing we I more taking the what as maybe Is you're to provide SI just Can you adding you just probing something opportunities? us seeing in partnerships. for these go once should into next update the we pipeline terms mean, an question. Thanks year this my that start on Great. more

David Ossip

Yeah.

that. of number off great sizable at Obviously, us the up Obviously, question by to zero. margin. of base a seeing actually So go SIs on opportunities we're started a large the brought we a

can you happy we're but the increases growth rapid see that to So influenced SIs. expect by very a with very percentage of basis, on pipeline been the the has

So that's we're seeing. the first piece

allows which we Without it Second doing global we a Dayforce great, obviously continue and priming, growing, group focus to have basis. software, create us necessarily software, to and got piece build great to us own deliver what which to service out allows build SIs our is software. is especially internally, services do on more having on implementations, continue really grade to

have CWT at quite Vegas, event we in partner by trained the network, well SI York and XX few above have terms In very partners, good of resources, are the are at I who of we believe a well. see a New who we'll them them as chain

Bhavin Shah

helpful. Got it. Super

an terms providing go-lives employee growth trend the of you're follow-up I what that what's increase in adoption been it seeing provide Just to wallet, on terms like? a XX% or of like on-demand but can whether basis employee's continued you more the an in on your from information XX% to the mean, you're seeing quick see from terms and nice any them maybe to and in on XX% base, paycheck of customers available XX% of

David Ossip

those pay quite as the up period. to the we've earlier seen before use the their so they're direct end appears comes and wages use business it they nicely. of wallet and that types When two put individuals of overall others to population, deposit deposit, move on the get full would go at access funds well. The wallet those the guardrails, have they If their They to give two of XX% than about it Yeah. who look XX% for I days access. limited direct normally actually

deposit don't amount three-minute go answer be wages. the the XX% has direct we side. I water expect actual starting to to that question, the driven we're And given just would to of your natural of seems that emphasize to actually a pay, the about your organization start doing higher. been by think, So Once it also movement onto I now

direct the And deposit at effectively of so actual the as the well. get it you if all you of get period end

Bhavin Shah

Got it. Super helpful. Congrats on the strong quarter.

David Ossip

to Appreciate pass it. you. much. Erik, very Thanks back to it just

Erik Zimmer

Thanks, our Yeah. question that tonight. that David. concludes for And call with

we the behalf rest look very of the of the much David executive the time throughout on and So for to and Noemie, this conversation your continuing we you team, thank Ceridian forward quarter. evening,

David Ossip

Great. Thank hope I speaking of forward you next many everyone. week well. Thank see And to And I you you and to lot very look to tonight tomorrow. much. of a you as

Noemie Heuland

Bye.

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