Dayforce (DAY) 1 Nov 232023 Q3 Earnings call transcript

Company Profile

Participants

Matthew Wells	executive
David Ossip	executive
Stephen Holdridge	executive
Joseph Korngiebel	executive
Noemie Heuland	executive
Mark Marcon	analyst
Sitikantha Panigrahi	analyst
Scott Berg	analyst
Steven Enders	analyst
Samad Samana	analyst
Bhavin Shah	analyst
Mark Murphy	analyst
Daniel Jester	analyst
Kevin Kumar	analyst
Aleksandr Zukin	analyst
Matthew Pfau	analyst
Robert Simmons	analyst

Call transcript

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Matthew Wells

Good morning, and thank you for joining. Welcome to Ceridian's Third Quarter 2023 Earnings Conference Call. I'm Matt Wells, Head of Investor Relations. And on the call today, we have our Co-CEO, David Ossip, our CFO, Noemie Heuland, our Chief Product and Technology Officer, Joe Korngiebel, and our President of Customer and Revenue Operations, Steve Holdridge. [Operator Instructions] Now before I hand the call over to David, I want to remind everyone that our commentary may include forward-looking statements. to differ uncertainties or materially subject written's could present are to results from statements risks that and cause expectations. These historical experience can filings. reports of found such Securities as description some statements these Commission and A in cautionary our of and Exchange in filed we uncertainties the the with the risks be

the reconciliation and call of with describe Please this And documents, review behind a our Additionally, to over Ceridian these over call call, GAAP of addition this of website. our performance. of the use the we'll These Relations that, reference for to press you. measures our David, a release the filings non-GAAP replay non-GAAP the course on Investor in metrics. non-GAAP I'd will like with available SEC measures and be turn or to full these earnings to rationale for

David Ossip

year detail of implementations. our results delivery Today, that outlook. ] continually wins us our provide highlight Thank provide will customer announcements especially strong all for to platform and year Dayforce on at you, joining our an information on quarter more service our outlook. will key and discussed full of to Noemie we you successful and update and [ Ceridian's add I'll discuss thank on our quarterly and And gender the AI highlight out will payroll Joe full today. autonomous items copilots insight, Steve desk, commitment other conference. updated Insight you third sales innovate to performance

for Dayforce at currency, incrementally and pushing full for all full guidance that report by and we guidance we revenue XX% revenue the QX and year-over-year third exceeded constant the In to grew pleased beat our and profitability metrics. profitability revenue I'm and year. across are raising the recurring quarter, again

become mixed news leaving CEO that on [indiscernible] it's I Leagh the to go emotions details, Ceridian Software. with I Before be will into that of financial Cooper shared the

If processes X ago, brought years growth. Leagh to to I scale build on deliver to recall, durable board and you and bring structure

During are [ and our results themselves. time together, we speak have for delivered ]

will Our by end $X.X surpass doubled revenues of have this and the year. billion

base customer adjusted customers some X,XXX expanded gross biggest meaningfully margins organizations including world the of to well the live grown over in Our cloud over today. to from as has and have XX% XX%

customers highly and delighted cloud I'd a and now And a chance team, her of success truly exceptional her we committed including to continued of have like They you'll is leader and Therefore, and although domain. to team the people development to are whom of structure, her have express reins Joe, I the business. in I'm leadership as my at personally, helm. bit a She to now terms this scale a to regarded Steve and deserved. appointment hear from an at are gratitude best-in-class proud the our well of today. sweet, fortunate Cooper, has and take in the Leagh

Leagh, and us, you. of all from So congratulations thank

recurring Dayforce of financial of reflects and of revenue basis, expanded to year-over-year the revenue a EBITDA continued the XX.X% by XXX year-over-year. XX% revenue float grew points Dayforce recurring ex turn currency. revenue Dayforce or expansion across grew basis XXX results. in In $XXX.X constant quarter, year-over-year. was scale million This a business points revenue third upside, Adjusted approximately cloud XX.X% margin basis platform. and share constant our expanded on let's the greater Now margins gross Adjusted XX%. recurring currency recurring at

will QX and This full profitability in and of details for of we the incremental our raise of attendees, and we Noemie growth had based outlook QX we Ceridian the customers, raising quarter I Dayforce. guidance dig our record the flow-through XXXX. mentioned the a in in minutes. reflects an as beach year. discuss showcased And visibility, prospects earlier into QX where performance and another narrowing included and meaningful into are on increased we and the Joe which range will that full few Dayforce insights, including record number Other and shortly. innovation the Notably, a partners, across is announced platform, highlights the becoming break of product

full of life our enterprises. [ cloud experience This management Gartner And platform Quadrant decision This millions ] brand are HCM year, for just better. our an achievement. of last the unify Dayforce employee suite straight and in validates engaging HCM will on cloud of ambition Gartner I'm and leader we today, shines tables who continued leader further our with fourth making reflects capital light work positive company. industry-leading enterprise-grade advance X,XXX-plus suites week, named for users recognition human proud Dayforce in this so for the daily. This the a Magic shared a a as

As momentum. our results we show, have

And the growth. profitable that, me macro and deliver Steve and customer in Steve, you. highlights speak current the well to durable are over to ask We environment execute with to to market let positioned and

Stephen Holdridge

David. you, Thank

be organization. demand partners history. we This of customers. market. go-to-market of A now [indiscernible] cohort Chief sales, across is strategy going the largest our Revenue Our Sam reflects of fully number across our consistent by continue XXX QX and role with and live new into byproduct customers. the live of Sam shifting brought qualified now marketing, settled Dayforce deals Officer. to large this momentum up is a driving referenceable focus our highly net We in in Year-to-date, of and pipeline by most all, impressed the led the have First I sales and has best-in-class and team, our execution sales

back XX%, our annual sales value sell go for notably, the are customers now focus gross with to of year-to-date For retention of base. in over XX% context, range the trends from where expanding and XX% enterprise consistent line values with time up net segment lives of in contract Dayforce revenue add-on in some remains to our historical

base new of This Dayforce both validation also our work. solution the new with is attached continue XX% customers and full adopt is sales. resonates our XX% to we've can customer as we to products new of This the base. Dayforce means Dayforce talent of And across bring and world experience sales of adoption full suite continued We're year-to-date, customers. Hub Wallet also value that seeing the full to healthy nearly help strategy. now transform while of to our suite existing understand showing customer our organizations adoption and continues see the

the We customer with loads to customer we billion. year-to-date notably, QX on new in approximately sales. of X,XXX over Wallet. customers $X over billion on now in loads card, total well X,XXX And have XX% live are We and customers sold the attaching solution $X crossed

QX, payroll its countries HR in use India, of and bank key to core employees sample bring employees across X,XXX employees new its an European retail Lithuanian now supermarket around Moving global technology XX,XXX the Lithuania of chose the by extending and in management A employees retail customer of platform. a group upgraded and wins of supermarket the one included which Dayforce A chains Canada selected additional support Dayforce chains onto across X to globe. locations. Latvia. go-lives in In for with largest workforce from Dayforce XXX,XXX wins to XX,XXX XX,XXX will with

current with self-service. organizations adding Kenya Dayforce countries service recruiting, Dayforce in went XX,XXX expanded time live its in a HR, partnership for the employees on some Ceridian XX onboarding global And of on employees in core and QX, that and by organization attendance, the leading customer

XX,XXX as for employees region. A the with global platform when and a analytics and across we launched spot separate go-lives, employees talk professional streamline XX,XXX Dayforce XX of about and ingredients HR employees of with must our services systems U.S. in like we in have this our it partners in payroll to A strategy. XX,XXX important and U.S. the quarter. XX live Canada, part across with different And this company allowing for chemical countries know, you countries cycles pay an Dayforce we company growth XX are XX recently, role also distribution into single the Who, wins

RINs growth leverage how in to of expand expanding and breadth for all and SI Insights depth and partner-led ecosystem Conference betterment further our XXX% and We of continue regions continue our our thriving, partners including and showcase look the network presence to enhanced the the plus partner at see across of community. than we our year-over-year to no segments our

well This to macros ride quarter to and the value deliver demonstrated Ceridian's customers. ability

are a into growing seeing partner quantifiable company, the to you. we are the go-to Product hear focus our our and Officer, the across into same Dayforce our as global As results from leaning we ability Technology areas front, the know serve as the on around all people with Chief I Joe, product business. it's to Joe value Korngiebel. for over And And durably, sustainably. profitably platform, transformations and on customers we'll world now where HR of our translate

Joseph Korngiebel

we innovation insights. announcements key much, Thank innovation, you stronger Customer and greater Steve. front, our at industry-leading more focused Dayforce recently and Conference better very platform. our intelligence, shared connected open compliance, Yes, some X announcements experiences Annual on on a HCM of These planned our suite Dayforce areas around product and

and have following. themes We been delivering these announce on the

repetitive assistant better tasks business informed AI and real-time by also data Copilot. done decisions automating enhancing work them their to work helping that employees First, into get a drive by and Yes, Dayforce enabling dramatically transforms generative faster with Dayforce insights.

deliver their and this open AI, our our customers access through in able partnership see connection today. to You we're to Microsoft early to with

capabilities right. delivering today, and do will more efficiency with That's on what customers We're release and it and can to and of coming we AI drive the our year. productivity more the over promise

in for Dayforce anomalies administrators identification completely airs It these the is data announced administrators Payroll. lot a global with. of to manual payroll of removes Autonomous run our we Next, instantaneously. payroll need the ability major to payroll industry-leading that This suffer product. and enhancement offers a It already

allows run on connection on leverages the This to the arise potential gives that administrators continuous to notice issues really during This payroll leverages anomaly through power pay those autonomous business. circulation You their engine. AI see and constantly payroll of and advanced data face payroll may cycle. it to our complexities that that account simulations cut

XXXX. This be our productive more customers to new this half to is customers of in ways. availability and entirely to efficient excited introduce enabling the in We're first with our

our Exchange. customers, together our Finally, all to of I ties users, across partners Dayforce Dayforce area with is a of This about our our experts. our ecosystem. together entire It talk innovation want key

one-stop You entire a integrations. for to ecosystem our see this Exchange our This organizations for better Dayforce customers. make content solutions of a help rich and access to shop leverages is library

We will the half again be delivering first this of in XXXX.

change. as that time to efficiency of this our and where David in their leader just of Gartner customers Dayforce for to including about in It ability placement productivity. reflects spoke the this the a go momentum, our Magic us All Quantum engine need be behind allows

our in be agile highlights what's going and technology on to also nimble changes. ability face It with and workforce of the

focused Our our agility providing to Copilot by announcements their this for highlights is delivering partner of Dayforce value And simplicity with what and differentiating over and customers world at a help becoming With Dayforce on customers a operations this let and -- in us, continually our ability nimbleness. this, interact close trusted scale market. to driving for in for change. customer for the is is can hand that staying of Noemie us to out. quantifiable our that, people together, me the and innovate

Noemie Heuland

EBITDA QX the on report Thank adjusted revenue ex continue to expand deliver you, financial said year we float, and we year. raising scale the rate. delivery all QX key our through the that and we report margin on gross being promise beat and 'XX revenue our last mix our the total full total XX% to profile with a from up fiscal recurring, I cloud XX% especially of happy we of are revenue as towards shift guidance to product and of exceeded happy recurring margin cloud targets, to automation. recurring reflect issued revenue, Joe. of share would byproduct revenue efficiencies flat that in am Dayforce When cloud an recurring I'm incremental and metrics

quarter margin gross couples business disciplined cloud by over expansion as period. organization of In adjusted significant evidenced XXX our the basis in expansion addition points The drove profitability scale to the spend across of EBITDA recurring cloud third adjusted same the beat. the and with

scale Year-to-date cash continued business. increase up cash are is And driven of flow $XXX this by year-on-year. operating million XX% primarily the in in flows

conversion XX% exacerbated into While flow, impacting there was of approximately year continue in cash flow QX 'XX. we seasonality fiscal expect operating EBITDA adjusted to cash

total million recurring Turning our fiscal incremental incremental still $X resulting headwind Dayforce adjusting to fiscal QX accounting revenue. $X raising 'XX outlook outlook beat. note, We're and year float and revenue this headwind, dollar ex our our recurring for across year Of Dayforce in guidance. in to Canadian for third quarter million a FX we're after QX, above

revenue quarter, $XX revenue. fourth in a of Canadian reflecting end as reflects XX%, revenue is employee to million year. in the yield constant expected strong go-lives, for typical XX% to seasonality XX% constant grow at weaker recurring revenue customer the base the guidance stable is grow compared QX In to strength of Float and relatively impacted to currency, dollar. expected ex quarter recurring volumes Dayforce incrementally balances currency, average of of float durable Dayforce in a QX and the at another of Total range reflecting at XX%

knock-on is revenue, drive The and expect we've the partner As to SI we ecosystem, share build to recurring of professional our seen revenue throughout services margin accordingly. greater expansion as year. a helping we moderate continue effect our

adjusted As up expand XX.X% year to from year XX%, margin to such, in we 'XX. expect 'XX fiscal EBITDA full

Timing in range previously the driving trends seasonality QX largest quarter, in $XX of I million, million in quarter-over-quarter $XX of being be spend typically to expected go-live our with the to adjusted sales reflecting EBITDA is highlighted. QX

brand of financial Now and applications. on a words couple the its

year amortize Dayforce in granular X third details earlier, With the is report quarter. of in our months margins, $XX EBITDA of name effective year. billion and targets our plan becoming into a we'll operating execute X-year fiscal brand margin million into the investments to we We over in to X quarter we as around million XXXX a clear mentioned next And amounts anticipate the $X visibility targets. David expense guidance for Dayforce. XXXX this XX% Ceridian with in G&A February. do screen not Ceridian As approximately to $XX This revenue 'XX per to to noncash continue adjusted of when August more period in path or head affect we

the over you to With Q&A. for call that, Matt, turn I'll

Matthew Wells

Noemie. Thanks,

from come will question first from Our Baird. Mark Marcon

Mark Marcon

you to questions. very on congratulations X team have and the the quarter. entire Great, I strong

basically see The wondering margins. upside to can a adjusted to with terms almost the source We up regards the more give EBITDA. revenue with from first upside bit a and the more line one, And little it regards the X% the was having a of I'm XX% deconstruction margin on of nice if us but even really you upside. beat top ended to in perspective, beat

any think there first of that are should anything to the wondering, That's regards we are I'm so unusual, And question. with future? things that the

Leagh's and selling takes congratulations enterprise can And then the second a How I success question, of should effort. David, relates to Leagh's basis position. departure, some enterprises had think becoming I'm on is in little we the impact wondering terms global the talk mean, of that you've team big big larger if those a sales much wondering, I'm Coupa CEO so Leagh cadence desirable to But obviously, you departure to about of of bit. on a sales? a

David Ossip

questions. those for thanks X Mark, Well, Great.

largely On in reflected XX% So high implementations recurring the more see stronger more the you'll obviously a the go-forward exceed would the we've And and business, expect to to as the seeing a margins of at given know, if moderating EBITDA to much That margin And revenue. shift drives the side partners. adjusted mix in a I pointed the near are overall And outperformed that towards we're more on margin and in beat guidance you our results, that you on system a continue. integrator basis, Dayforce you term. we Noemie considerable margin. vastly on shift implementation the is look we as the first, as the what out, revenue recurring see revenue. total you

ago and Regarding now Leagh I I'll definitely this say the We team joined really bring delivered X she best about is to and the years organization Leagh, to organization what have process structure argue, industry. the would the -- in that. on

actual mentioned of sales, speed. that Steve in talk. terms his to In is up fully Sam

We committed of personally business. in the very, expert I'm and team I terms and I'm the really the also the entire very to into enterprise large have market. confident, obviously very profession enterprise what call really obviously

Matthew Wells

Our comes Panigrahi Mizuho. next from question Siti with

Sitikantha Panigrahi

and Congratulations terms in It your how on pipeline mostly good you want was guidance. seeing And I are ask environment, very looking impressive is the last enterprise to what a David, quarter also demand at this you of for deals? X quarters. point?

So any those and color of large that on also go the deals? live

David Ossip

pipeline. go The into pipeline it 'XX expect this will record has and with into I a grown year go quarter-over-quarter. We QX, fiscal

Sitikantha Panigrahi

Anything on the live? go

David Ossip

go-to tracking, the side, On Live I say, plan. according it's would to

actually raise actual What to I going guidance larger the which that see in with and seeing go-lives, a You actual live, communicated guidance. the think of you're we in earlier year. obviously, the shift accounts also the reflected the

at mix, larger customer slight a look the towards obviously, you the customers. So if scale overall base,

Sitikantha Panigrahi

we David. follow-up, X investors started about Lately, growth payroll from the And getting sector. have questions for opportunity

So don't how is different you you're XX% next I is And know drivers a you next year are thinking ], grower. the when do this but you growth in see question about what [ guide -- fear for typical in look year, it the midterm?

comment So on that be helpful. would any

David Ossip

Look, towards and We EBITDA, XXXX. believe we've given billion with that. be we're gross consistent by near-term the spoken guidance XX% also on EBITDA mark about margins. will adjusted and track We've XX% $X the

I good look also. ] [ guidance in giving think towards been the I'd expect the to marketplace. to in very XX I of we've next near-term actual If rule be us year,

And components do the so math of on actual can that. to kind you do the

change payroll actually the seen sector. I haven't sector, terms in In a of the payroll

very is actually healthy. it think I still

management available capital to modules company, to well lot as different that XX for go like a base. customer we over are I'd out have point our also land us now and of a to there's we human think forward. I are grab that we

more global invested where actually even capture. to time cycle some as land on And the quite there's well, we've

So think focusing consistent very since growth, in we'll be and consistent terms XXXX. in durable that our we've levers again, terms on of our we'll of been I growth keep X performance,

Matthew Wells

Our next question comes from Scott Berg of Needham.

Scott Berg

the Nice partner everyone. quarter. its ecosystem. during Hi, I in the third want involvement start results on company's to

partners in X really with nicely positively guess, helpful your of year, is implementations, come in recent think I and last increased them bringing more they think is, years, in deal your opportunities things should of of the talk maybe the gone I you about you how in And them particular? of last I some just right more of over really we my with the help engagement up think forward? that's are couple round opportunities. kind over what's Can about engagement improved of your what's go as or those checks outside

David Ossip

What partners. Scott. thanks, have about I integration would we think of the had I say our with degree in a system high integrity that is conversations So

us remember, not of seeing on cloud services note. now profitability the is, you company, And cloud as EBITDA revenue a I Steve, a know, you As SI X revenue to within And we quarter, towards actual I actually the developing earlier, we're at the we as believe, the channel into When very the are Mark's deals to side, important is company, several which we've of side a go stream. increase market, SIs to for services kicked over To years the actually software you're opposed now. implementation. think, first doing in of XX% the the revenue terms off question positioning in get look reasons we're that been number higher recurring more when we now. shifts the the

of in busy the the seeing see And also the insights if global and pipeline obviously of a number bodes proud. it's of were SIs, positive their engaged. we're We had terms very, well. impact have our aspirations, did attending employees, Steve, very like, are exhibits We're which very in and could very global our which the global, terms the and regional well. we Tier partners some partners a that the also on people anything add? with very, record you insights. prospects, if to attend terms you you very who that both business. many our And the would positive influence at very here way, seeing partners call reach the have of If but as our are local I SI In to look very deals our we important them helpful partners very actual went customers X with is in of of particularly you hall, and expo

Stephen Holdridge

Yes.

David I X program and the thing, on design is gate. Scott, it, think the of was the our of collaborative hit out

large that revenue dependency can with putting addition We deals, in we have services the are that on them. go-to-market fact, partners we don't collaborate. to we we we together opportunity recommending didn't where And such a that our in but compete, strategies have support

map. and partners, significant contribution investment product our in and sales enablement of of Secondly, enablement both in a terms the of and enablement their road

the if to you and our in program I had they've that what us had the say think players will the surpasses with they've partners, experience other So talk the with they industry.

Scott Berg

Very in couple from adoption Understood. the then perspective, prepandemic of whole. more largest some had really seeing as a reflective And last it's years. around maybe the about slowing kind module a spend normalizing bolus additional recently levels a space space just the HCM survey the of of after And helpful. in talked follow-up

a X kind be But about XX% be that what is quarters? kind also maybe X, how expect of You're suite forward, customers opportunity attach in full cross-sell new what do number. you or Do might attach in of obviously Or couple, change to rates recent pipelines an representative going survey today think line in impressive seeing your next you're getting which we highlighted. seeing the of are you the to trends? of the the with

David Ossip

of we're of in a and target the remember, not we're go on. Scott, hit really, billion actually the next to later number, business, year. are mark attachment just has purchased compliance The around as high to being to are but which billion platform modules, you structure part like always in the and things certainly that? would the place regard. leaning $X modules we Steve, So of need of hit actual that recruiting. expect, are that in for be the are that are place expansion see those to critical modules we big sales more very rates the so obviously, would the and you we're the demand, beginning customer $X we And types leader to in now that. planning add-on structure high towards what sales Obviously, we base into the add the into And add-on a

Stephen Holdridge

would Yes, are next fact, in sales I agree. we down go-to our doubling And year plan, with our market in on attachment.

We are putting suite. specific talent motions around our

We we the are of putting that areas. motions for other space specific have around to white think in there's add-on the And fact, customers. to us percentage increased sales

Matthew Wells

Citi. Our Murphy back can next Mark, we with question Steve comes with from circle JPMorgan. Enders later. Mark

Steven Enders

Okay. I any opportunity? government Great. is if Canadian could last there an wondering changes from there earnings I And guess, update the -- a if on maybe get we guess, so I was the call.

David Ossip

Steve, the quite for would progressing have in go waiting to positive. all procurement them cycle what We're very we're been you the through add? now nicely results their government, processes. Steve with Canadian the internal

Stephen Holdridge

Yes. look No, cycles with we that we continues but them. and bullish be the to opportunity. government continue planning what rollout move would the in We're pace, to continue Obviously, a be at engaged on positive. like, with certain and we're be dealing a decision very to of everything very

Steven Enders

about announcements, guess, they're I of been then conference cost And how the they're AI maybe that feedback the what's and for other Thanks there. product targeting thinking prospects about you that update AI and adoption the use announcements off of for all customers it? your there core cases made Great. coming kind the and from in Okay.

David Ossip

tremendous about and showed that real platform. I'll hand product of start, and and generative we pervasive delivery INSIGHT excitement. really we Joe. they're across doing that of the just What and products it's entire to So with say the that can off I'll it insights amount are is a I There's the AI

of in So way the terms we're industry. think anyone ahead actual leading, in else I Joe? of

Joseph Korngiebel

what's efficiency your with the make in what them Thank in question, question. to general, every like in with it's better. promise, we you with our systems. of specifically a doing for do it's to with going give can was starting life in that. we're to come our AI, your make that What AI And providing IT. for at is but What the to there's enterprises, are look generative highlighted we're the conference to instantly get work and starting Without people things other write looking reports brand a a only to user a create to out reports ability access staff Friday those reports we of our lot meaningful and data the productivity few customers at of generating of their And because and people backlogs data, do help automatically instant able difference value. reports being to administrators

of customers collaboration at productivity. reception efficiency the heard was of time from So to one our INSIGHT we this really and promise help and in them

report analytics, in our Autonomous some and operations. we're Pay whether what whether processes of inefficiencies the so Copilot and people, and of taking the people capabilities some it's it's the doing writer out on happen And with that

And a customers our advantage choices data warming that to the incredibly allowing to an architecture, have made we our was said, and invent it co-create some technology in with which single that's is like customers. So most our connect David with us of with we've really platform today. importantly,

so And give today. starting we're listen to that and feedback really

So in I'm incredibly transformation the and our about quite industry. promising, that's bullish happening

Matthew Wells

Samana from comes Our Samad next Jefferies. with question

Samad Samana

night the that incredible. the they [indiscernible] the congrats them last rides opportunity. as automation knows no well HR another process. headwind improve the David, is company in ecosystem and one payroll noted as creating your . new improving for increased One, as We on payroll a It payroll the industry sounds significant revenue

their revenue and rerun fixed either Ceridian we've or from revenue it's on there payroll for investors categories that? impact and a errors payrolls that's automation how think we stream own subscription filing like I or big the significant by should is in got or revenue a revenue -- frankly, and that's in that. is stream X think of have fee with of to Ceridian the just maybe the amount questions whether having about other associated every generated And company, a industry

like I with payroll helpful very think would everybody [ for you industry be listening somebody it that's ]. scholar

David Ossip

Let a actually We're begin payroll companies processing. that Merrell company, run for saying guess of capital of payroll like human me charge we legacy actually didn't about archaic [ cloud other charging automation, terms it charge by batch or process, controls would I of capability pay a I way other I be don't view types to a fully in is and something companies on online payroll which automation they're the competitors to which just isn't used employees. about I their the how inside. of batch-based in in talk or they I very base ] a on understand what He's a It's the doing think slips management of cloud think this. kind I would And company suppose they're that. system. of talking think been the players or when able any dialogue would charge

a see I should And revenue of that the can't impact how company.

beginning engine that. efficient. XX% whereby the we're AI the generative across the life the for around innovation XX% team, of entire In time expanding continuous real since innovation, and even [ We make ] about payroll and start about can management. we all delivering the talking successful talk efficiencies, people. The very it. calculation we've into of processes talk on we payroll was human focus about other across better reduction full talk direction. us, to now the use going making product capital more depots work we been We're about designed We're terms of autonomous payroll to and When

That our do batch-based process crazy. impacting sensitivity would any, not be processes we no, have and as I'd say, revenue. So to

Samad Samana

Great. appreciate that. I really

I maybe you maybe we the focused on you've for think especially on how lot about I traction investors about shift the of topic that what's of the that or any going environment. that talked get important better on the should initiatives that have And a strategic Wallet about worse, as but puts curious keenly Ceridian metrics, know want And back was targets the guys to or to previously are for an in towards to takes there? changed that updated your think some trajectory for address think we I'm macro broader company's that. I key side maybe it. and

David Ossip

nicely We've Yes. one at in percentage of rates number transfer and some instant are spoke we If will as to people above next go out up about XX%. quite look track, the probably transfers will well. ARR release now seen is year. capability QX also eligible hit peer-to-peer of come Wallet on on registration that about around of kind that the I the The We're and new previously.

App Store, rating We've the the the the the Steve bit moving If you see a got pay. are helpful. the money customers the on is very not exceptionally for through deposit direct is round about do you'll eligible at amount wallet, high. employees our also ability which to Wallet that spoke that's look of now actual for that on-demand

good as So program planned. very again, a executing

Samad Samana

on quarter. strong the Congrats

Matthew Wells

next Our question from Bank. Bhavin comes Deutsche with Shah

Bhavin Shah

Can you're announcements. AI little monetization of or how these David, a some first, I about generative Autonomous Payroll your just of maybe services? you both elaborate just thinking on bit on guess,

David Ossip

win be may actually as I go There possibility we forward. think, a fees. increase the one, actually to will So rate for increase our us platform

that do when through of will comes Joe, going to anything want add. we're a in the it that to believe generative we analysis right that lead the you have We now. So AI. industry sensitivity

Joseph Korngiebel

an will in Copilot product suite. Yes. overall product In additional general, our be itself

examples simply do need natural pay backlog doing And not what the quarter so giving answered of really and a of department demonstrated operations answer. able to where productivity demonstrated simple questions question bunch have what get that people a to with the automatically a will same can ability we of and to make We they asked a language, With notifications we ask your the and of by over complete the employees itself. or to can again. tasks, end you self-learn we're to It of so being you your can run. enhance to end when questions in close or effectiveness over from the being employee faster, managers send

comes of question quickly to instantly that and the in multiple answer And next the times. instead so gets then question having answered same

to and and more your top have yes, saying, efficiency on So even our a Copilot these way that looking can see you a provide by suite as add you our powerful of to and we productivity. monetize employees, SKU type we're efficiencies core can of it and enhance as

product of start new in So important our that from terms vector showing you'll overall in as another to SKUs a can grow see as up suite what we revenue standpoint.

Stephen Holdridge

And this is Steve.

will what to will Just easily generative and out and seen believe market it's come go-to-market, because get business command savings price it. of a in the value efficiencies simple. will premium we've to of the of companies We a out it From the add AI case they that. on of flock very and

Bhavin Shah

Very helpful.

Dayforce of with quarters. talk the be second Payroll recurring Autonomous pretty my SKU? just of of question you last will just in clarifying, customers? from Can that? And few customer. for the nice uptick terms accelerating included that Just Dayforce drivers a quarter separate Saw a all kind just be is about this growth Will

David Ossip

is the the in take the customers actual at XX% Well, drivers the I'll obviously, actual of the the that, widening of product back and full suite of suite.

terms next for ability we're for payroll through the at packaging autonomous that terms of that Joe, bundling in and and you moment. anything In add going charge to exercise it? year, still would of

Joseph Korngiebel

Yes.

that on And was we're delivering both previous an and asked people delivering is think modern we're offering payroll different We're as wallet payroll. things. checks point with the important a payroll. see is autonomous the what while really printed our are landscape finalizing question are you cleaning doing I competitive package transforming and And that. very can and still component what to of where key than the we're well

wallet and example. is driver revenue a new a have great We

a workforce. pay payroll a in they boundless new the provider world to to really new and this be payroll no revenue your global driver people growth being are in We global matter where have in able

we of so help this providing leading what nature generation payroll, workforce many the and need the next and by ourselves and companies growth doing What ways And and global of really modern companies charge what disrupting Wallet with core we're take autonomous business. and really doing payroll. with in for with really changing is the we're changing we're payroll to

Bhavin Shah

Congrats on strong the quarter.

Matthew Wells

Okay. with Murphy JPMorgan. Great. Mark

Mark Murphy

David, that of the the terms very you're pretty Congratulations counts. massive you beyond? load? seat QX I of ever comment onboarding, believe, some that that feel And into scalability about Can you've and customers on a just largest you heavy system how differentiated in on performance. landed is here under how performing transactional currently onboarding process

David Ossip

Yes. But project the going at probably to you bit to level, versus do it's about a been containers talk servers? Thanks, going want Joe, XX I'm ask over well. speak very Mark. the hyperscale that doing we've about months. high last hyperscale Joe to just little a payroll about

Joseph Korngiebel

big architecture. fundamentally architecture and of was right really for our and essential single Yes, of us, it really Data we've years I one is market to the we came data. getting reasons that. ago, here with started X push changing grow in that having up to to One, a and terms been

second scale moving just shortcomings. world has and The limits scale, in is a horizontal vertical has

we've And so can run horizontally. that as we're our as doing engine pay, continuous that mentioned we've capabilities, gone and payroll taken live, payroll I a

to Mark, new that's with spin going by larger new the -- Microsoft just Azure containers larger and customers and can we just off be up run customers. partnership can with able And being exactly said, and our what we're paid we doing with so And you live. what cloud,

refer the new side as to We're running proper complete experience we user experience with user been payroll help on equals in do the horizontally customers experience driving years, user several working our engine And scale. scale in a well. to running we're And experience complete and to change hyperscale, a them as user the a over into service, need it scale last well. change as you as that we've at what then to

experience overall have with the now last several the out the for the in light scale customers. years, been horizontal and factors, So these both works both seeing rolled large-scale have those been it as well we're up user as

Mark Murphy

ask Yes, helpful. that's that. I to I quick very follow-up. David, wanted appreciate as a

QX Can quarter the -- activity, pipeline, the confidence sounds very you're is on largest you like seeing well. could out comment on you did bookings comment that's there. it but given your comment business on progressing been for Just sales and you

or out the our higher psychology cost prospects health bookings instance, For Or all? seeing [indiscernible] ongoing there among spending. inflation you capital into new and affecting At of the are

David Ossip

Mark, of the the we we've approach investment led talking and money very rate longer very our return quickly a free, the And when to no industry is return to our can with time how much on always strong very today, making you're is We've which the a proficient as live, them they important. Fed quick is X% to but return. terms ROI customers. about of taken were customers. by the right us, deliver stronger quite us return always against get the to in a time a the fully more are not on any strong It's competitive which away, side, know go with the ERPs system or allows you actual customers,

to broaden The don't modules new to systems. at the saving about that and purchase a buy because environment there's platform, integration of well, as the considerable pay to goes our second customers have part they time for between we hosting additional database, as it another another

into strong ties the simplification very system ROI. the So

also and level, at Sam record that of is out tremendous. pipeline, speed mentioned, really is terms In a have as up but to I I point to

the in we'll of And on adjusted said we're confidence I $X I lot year. so as billion, the And XX% us target a very gives and that as margin, of of think remainder the XXXX the EBITDA XX% earlier, on that. you focused, know, deliver gross

Matthew Wells

comes from next Our of Dan BMO. question Jester

Daniel Jester

just Maybe Great. ones. X

So purchases, the the first, on great momentum suite continued full see to there.

everything is my think makes. full doesn't necessarily that Ceridian mean that I understanding suite

and full using question, within gave you've additional about the time higher then and you back out margin. the of historically, you organization that so maybe X efficiencies modules the only maybe like. AI second the come this over that trials? X to to you like the customers update suite buy And expanded analytics the propensity in earlier buyers those Any than as if or Is look to year has my some David, learnings start. generative And the of and updates of things some drive buy

David Ossip

Yes.

sales next force. in terms of actual the mentioned, in So down we're terms of look, as Steve add-on year had doubling sales

on us for the an widen the use customer very the right allows set fact ROI go allows with customers. quite that that that which it optimize next the the initial opportunity great our nicely a is from with of, Again, our and to actual of there pricing us after is to actually they strong the that regard. believe the you strategy at the to of like, of of so product them quickness ROI, products. can get price if time Part to us for do modules we purchase focusing So back

generative the the well of the thinking. customer across believe XX% that We've as actually to AI. similar we the our of spoken tool generative actually that terms should inside the When we terms drive showed use that internal efficiencies be through use look In of the at at side, we support it's of through and able our customers, intelligence we very INSIGHTS, about AI we've in reduce inside built this? with administration operations search And and able is what ask the inbound the self-service, get user mean form which the to responses help allows the copilots, but through Or does we're a our users to team, of support that able do efficiency. how them the to quicker now with calls for to I of That's do of questions, also copilot driving system? administration actual this the actually product.

that? Steve, anything you would add on

Stephen Holdridge

before we I get respond proactive outreach providing but to we're more in industry that our think will terms EPS on of seeing see of the that guidance question. customers customer a as helping David's answers in a proactively seeing into an fact, experience guess, but ask we're and results their us inbound, based No, We're seeing we're to customers on only a that. both that. that quicker. in of benefit they point, into reduced real ahead because to things And is customers not I turning can you lean also the increase better And

Matthew Wells

Kumar Sachs. Goldman with comes next Our from Kevin question

Kevin Kumar

which curious the see this to cash great It's slower. has which EBITDA in But expanded year. bit grown progress margin, margin, on nice a has flow

color the give can levers cash about better time? you of conversion how flow can think on a EBITDA drive you into over help that bit So

Noemie Heuland

the enhanced about for talked And we've the profitability, one driver of Yes. primary is drivers which going forward. think I

into from and lower within You'll see cloud us the into to margin continuing also revenue shift recurring recurring. recurring

well. we corresponding as as customers platforms into of you'll the over into expansion flow So profitability cash that from generation translate see migrate Dayforce, legacy will

the Specifically but a loaded collected favorability we in the and difference QX, the but guided conversions of XX% had we've for we've that very those between you we AR, bit on the billings, that's for much of of half little average see in the that which driven second remain number we've for primarily the committed is billings, outlined the back-end by year. for QX, September, remainder

Kevin Kumar

then Wallet. wanted in to helpful. X Dayforce about European traction maybe I the And market. ask on the just That's

out I think a over for been it's now. year

markets so the And U.S. just kind clients curious international of reception to in with relative on overall

David Ossip

Sure.

have because North in you view differentiating We've we U.K., about North the of U.K. adoption I'm the markets, the are there across terms model good a America, part the cabin different I'll of as seen with there The patterns the I'd customers real no surprises wallet model. isn't America. the say, market. in or, slightly U.K. Canada international talk So so It's a that assuming interchange

Matthew Wells

from with Wolfe. Our next Zukin Alex question comes

Aleksandr Zukin

performing Congrats guess seems my another how I I ask actually in to wanted on been the around and quarter. solid it executing well to is like first you've one mid-market.

Our pretty tick-ups checks rates. some suggested interesting seeing win that you're in

head-to-head you're doing competitors? are Any there? there landscape competitive versus the Or that's working? that to changes any just maybe So plays the changed anything that

David Ossip

the probably deals, deeply mid-market has in outside major that for lifting of and call on doing think that have. segment, almost Look, work we really is side us, the really data full that talent for in remember, other find the enterprise Joe over we're and broadening more AI the experience, and in the been the suite we every I seeing terms last working and enterprise Yes. market there. player what We years user up the offerings in actual the X the

beautiful. absolutely and experiences Some the just [indiscernible] that the product are of

well. across now returns it, customer other of we we of out, go have And it of so investments case demonstrations, then just And base. actual when side strong actually very shows show studies our we so the can on very many the

we the third and think as as can factor. which as own last But an well. that factor that very very, I system obviously, the services, parties our we yes, have robust also we earlier approach the integrators the noticed And discussed is do first that taken really And internal is product that administer on would well product market. because can Prime good be just to SI a we've

Aleksandr Zukin

and logos you some Perfect. the last at construct large And of announcing been of couple your guess, even this late very press and you've of quarters, then, to and that have suite But David, not even there last plus look year releases, landing are as the if these those I right those you're hundreds logos you're landing employees. even multiple logos that of entire thousands tens away. all away, not employees of thousand right in sometimes

better notion much of as if construction look new your growth So come to is I like for customers? a guess within existing idea net the the customers, or specifically, versus going Ceridian's question maybe within to from how the I XXXX, from those I get you is, expand for wanted look next larger at at expansion opportunity year

David Ossip

are maybe these buying time. multiple I actually actually from would number is over just change years, the wallet expand clients; enterprise have global and the we number acquire used would the X us, modules very large last types we've remember, of seen, that to of say, year, be are modules customers, of or logos of growth products. new each So One payroll three, that one, X actual and not by go X new the factors: a the of logos

So takeaway time. our from ERP competitors very experience, than if at that a just a There's towards more usage hobby analytics the side. takeaway the of same on a chain, really grocery pair a is X large high the from side. an look of the I was kind and it Where time the of

look or there the a expand full that very large of enterprise U.K., is that at suite did to of footprint. actually X we out very potential strong deal think a HCM large do I side. the And If I the that was

white large lot that major a to expanding the in to theme be of market, of for business. durable growth the in general down whether and of space lot it space, a there's ties be land for had, enterprise, the us grab product actual global, So side, it

Unknown Executive

those some have to we for our ability them. us that of point those very That's and long-term And reason is X not view because line that. revenue only year confidence X-year against as multiyear X- your but expanded, a to other sight correct. clear on gives I'd phases streams in you shown large we and logos thing to live, rollout current that's come another that are we've our add execute of And

Aleksandr Zukin

Congrats, Perfect. guys.

Matthew Wells

Raimo with we'll Raimo, next question from comes Barclays. back. Lenschow circle Our

next with Matt William Our from question Pfau Blair. comes

Matthew Pfau

Great.

to And the how adoption. And ask metrics impacting you can East? demand global wondering Ceridian. terms model a were also, interest then that's I progressing. payroll of or new that how engine Just wanted Just testing any in on you for was deployment Middle give know in payroll

David Ossip

differentiator in is that markets wins the it enterprises global, call global in segment, we it's major strong of the reasons that of that very of large more have footprint. a terms marketplace. Enterprise a the just in we we're getting the the not have what one So and It's

payroll Joe the engines, us from really been that in quite I think payroll has the the the work does doing differentiate terms of the marketplace. interfaces significantly global in people net

Matthew Wells

Wells Michael from Fargo. come will question next our So

here. with Okay. to circle back D.A. Raimo. Robert Otherwise, Davidson. Simmons you We'll

Robert Simmons

first, you update I could us was [indiscernible] the Ideal . wondering on

there, the coming you kind to along. differentiated wondering so have really a pretty progress in idea how is it's go So I'm but of

David Ossip

Yes, it's going really nicely.

we to actually For the on came those of that INSIGHTS, you had who stage. main

a around also of it. number breakouts We did

will the And you properly. the the be into market Ideal By be would we'll first of We along. out year, completion, customers of the like, of customers next should year, which using charter I actually talent year, then if it the actual expect we of by product end probably going have the going X pays have would the start and marketplace. building end I live the now go-to coming kind on think

Robert Simmons

would search. Great. give to you updates it. ideal close somebody? candidate find you are your How the then ]? can us you what And on [ any And CFO Got be

David Ossip

Yes.

we have We progressing believe we're candidate nicely. think or by the I by the of should start a the that year. announced very time

Matthew Wells

us thank call. our you, everyone, Thank earnings and concludes for This you, Robert, third joining today. quarter

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