DAY - Earnings call transcript Q1 2024

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Jeremy Johnson

I am Jeremy Johnson our CFO, and joining me on the call today is CEO, David Ossip; Chief Product and Technology Officer, Joe Korngiebel; and our President, 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. These statements are subject to risks and uncertainties that could cause Dayforce's results to differ materially from historical experience or present expectations. A description of some of these risks and uncertainties can be found in the reports we file with the Securities and Exchange Commission, such as the cautionary statements in our filings.

for of performance we'll press and please filings the course to non-GAAP release for the the metrics. with our behind of describe review SEC to a over full this non-GAAP these reference call, measures and use reconciliation Additionally, of rationale GAAP measures non-GAAP our our earnings Relations this available on be documents, addition website. These will in to call a Dayforce replay Investor of the

with over And I'd to turn like call the that, to David.

David Ossip

all you thank and joining us. Jeremy, Thanks, for

Next innovation to who call review we'll me, and provide I have will performance full who the quarter to updated customer Steve Joe, highlights. year details will and first to back hand and market to Jeremy highlight our platform then outlook.

to We XX% float for pleased of materially, recurring of $XXX.X strong In $XXX key million and across profit Dayforce was quarter, report grew including and we revenue and up the XX%. Dayforce. and exceeded guidance total revenue revenue increased revenue excluding million and float all I'm quarter both metrics. another profitability first XX%,

profit recurring On XX%, $XXX points profitability last basis up gross adjusted margin last was recurring GAAP side, from XXX million, up was and year versus gross year. Cloud the cloud XX% gross versus points year. margin an million, points up Adjusted up adjusted XX.X%, versus was XX%, EBITDA XXX last XX%, EBITDA up basis basis XXX representing year. last was $XXX margin of

momentum and across confident all product and strong remain have business guidance sales, with raised across metrics. We key in the we operations, our

the payroll HCM are $XX is analysis very $XX of expand. continues beyond range of currently year billion on and XX% well opportunity Dayforce annually in the at spending growing Estimates and it, the HCM to rest look based market at and the managed the data. we IDC of global billion to As over large and

and to in capitalize of us. of is on durable This a growth. front continues market Dayforce opportunity this to resilient be well positioned

quantifiable their world and experiences the their that their across demand and meets scale. all providing at for value leaders and of need As create choose organizations productive people platforms to optimize processes, better to organizations simplicity they Dayforce and to technology more sizes the be with by for need

is with at as AI Dayforce product Co-Pilot capabilities Simplicity our both innovation, and organization. at particularly core we the inside of our scale for our customers accelerate our with

to we've AI our is on single of discussed, a foundation and approach our trusted built As source of compliance data.

teammate and of by version seen advantage We are believe employees charter productivity. our and Dayforce gain them to help customer customers cases initial use utilize our the launched an there numerous as Co-Pilot. competitive We their to have a supercharge AI Co-Pilot Dayforce Co-Pilot help base using across

how to and environment. own Internally, help critical content see of questions has pace encouraged to our within day. will our significantly company it's been answering Co-Pilot very share Joe experience more Dayforce our more but very innovation. Dayforce I'm with daymakers our progress shortly, be the enhanced every exciting on surfacing productive

our leadership growth efficiencies. Finally, and driving Welcome our appointment Amy training this joined exclusivity Officer, experience, and and engagement team workforce People who of happy operational Chief I'm to business Amy, team, the Dayforce week. talent Amy. announce development, extensive brings the and new to through

I'll community, customer a to discuss to call and had like I'd we summary, to year thank you. daymakers. XXXX, for to In partners remain market now highlights. ahead. our strong the Steve, the customers, pass to and strong I start over excited and our Steve

Stephen Holdridge

recurring year-over-year. the customers have quarter growth the up with acquisition, consistent We across and on X,XXX balanced now per delivered customer And had go-lives. platform. kickoffs expansion customer and retention. we QX, and revenue Dayforce activation, results XX% for In We live Dayforce strong David. Thanks, sales, we ended

for our globe as Dayforce segments demand expansion From mid-market in and of see continued complement wins an a a acceleration saw segment the sales perspective, across enterprise competitive our to we talked the we've strong to in before. continue about

Sales full platform regions. for all Dayforce pipeline suite and see we the in steady remains demand healthy,

ecosystem growth up sales continued momentum XX% into QX with year-over-year. partner Our SI-led

strength We continue XX% full our to overall new nearly demonstrate bookings. Dayforce the of of to suite attaching platform, sales

healthy We suite. saw significant new XX% customers talent add-on customers with customer added over Dayforce live And continued also bookings, comprising and traction total. our on across our including motion performance base X,XXX we intelligence in nearly total Wallet, sales growth customer sales saw in X,XXX with of

with positively continue healthy wallet and above wallet remaining trend about XX%, rates Average per of continue usage we XXx month. registration to

wallet X Dayforce launched to users Transfer, also card which for rails App move We money and to transfer, Instant credit allows using quarter. to the provides with in new off users fee; to first revenue-generating which and instantly the money a interchange Cash cash features revenue. apps move allows the

project. which modernization additional secured We the to received out Canada, of payroll of progress budget the positive news Government

We the with expect continued see and revenues partners XXXX. acceleration related Dayforce our for to and in expanded in program opportunity of investment potential

from Dayforce energy selected turning grocer existing with workforce management. the partnership its QX. talent employees the sales than support Dayforce more of payroll to addition wins in employees. A for company expanding to across globe is has and Now key with XXX,XXX Dayforce U.S. Canadian A XX,XXX large

chosen insurance One XX of in for the leading brokers has employees the suite Dayforce X,XXX full independent countries. world's

X Western employees in of payroll partnership expanding by Dayforce existing Digital drives managed for as Dayforce flash its countries. Technologies, adding is U.S. Carhartt employees people its disk X,XXX with provider a selected global for the global X,XXX memories across and platform

to the employees. U.S. as Dayforce organizations of partner selected the support top strategic a X,XXX One in dental support XX

manager to go-lives an and Dayforce estate time included international real developer and Some QX launched the payroll, of benefits, property XX,XXX managed managed employees. key customer U.S. attendance

X,XXX XX employees for and across suite Holdings manufacturing its use went organization the its Canada. the full global operations. extended U.S. Malaysian XX,XXX retail include across and with A with to Dayforce employees countries Dayforce Windstream live

in over managed Dayforce employees. A pay, global U.K. Dayforce company with use XX,XXX employees expanded XX,XXX time, XXX locations attendance its went countries X,XXX in grocery to a advanced California and scheduling. employees analytics with professional live chain services And XX with

With that, hand and partner, now my Officer. over Product Technology you. Korngiebel, innovation I'm Joe, to to off Chief our to pleased Joe

Joseph Korngiebel

Thank you, terms start to product XXXX innovation. a exciting and had fast in We Steve. of

As and employees our with you own is the heard customers, launch workforce of teammate at from employees David, for year, charter generative our the here also customers Dayforce the the at AI our balanced efficiency. of productivity new our Co-Pilot empowering their and to levels with Dayforce of beginning new

significant customers detailed and Co-Pilot better our their instant often our innovation cutting-edge questions in marks within workforce. answers corporate Dayforce milestone and entire work-life This data a to guides common lengthy the large provides workforce handbooks, benefits FAQs. commitment is to employee buried that make for from

Powered beginning by just our the data we best-in-class are with customer, Dayforce and Co-Pilot. per language model innovation large architecture,

our now summarizing generative are the data all experience. initial seamless task in context content full-fledged within cases user generation into questions Co-Pilot and expanding Dayforce with answering beyond use We AI it's and automation and

and a extend the industry. their customers our iterate in continue for transformative early future we and sincere new truly to Together, partnership gratitude and of our shaping our we As setting invaluable work journey, of are feedback. standard we excellence this

as add-on products. new delivering entire simply Dayforce of a We Co-Pilot our priced to are suite HCM

that realize the that can Dayforce for with business. that provides single impact source about data single excited our of truth people I'm to tell, are the starting can their on value their customers massive Co-Pilot and system a a you have As

experiences. our needed when to Dayforce help In productivity talent within also delivered customers processes most. several delivered optimize We they're key and with addition our to great innovations efficient candidate enable we faster more manage employee recruiting drive products compliance, build to improved Co-Pilot, these and their talent, innovations recruiting experiences and

Dayforce new order in multiweek that helps flash. with product maintain Alumni to their can our or Management, talent to leading to We scheduling efficiencies management past a even business. enhanced and boomerang launched have We drive in who greater multi-departments through a strong a organizations workforce support refer calendaring companies centralized relationships products become talent that multi-locations, employees new

quarter. CAC job for added here one optimized is Dayforce. reporting updates XXX we which requirements, functionality, first and our truly rates confidence. us the us to than for data includes year-end global talk compliance, on the exciting year and at you, This to our financials. expanded Over help to A customers start our complete finally, compliance Jeremy. let's just import now in operate with And to updates capabilities more But enhanced customers.

Jeremy Johnson

Thanks, healthy strong, Joe. underpinned profitability and line started improvements. growth We by continued top XXXX

trends. exceeded we underpinned XX% grew across revenue healthy Dayforce underlying profitability delivered Dayforce by said, guidance and excluding As million, growing revenue of metrics. XX% and recurring revenue customer $XXX.X float, key recurring all go-lives and strong David We

a revenue on Dayforce grew Total on as revenue revenue revenue $XXX.X Dayforce growth highlighting of constant basis, continued total million is basis revenue. XX% convergence the XX% recurring of XX% GAAP currency a our total and and rates, recurring of

Powerpay was profit of million, at million, $XX the recurring in On X% X%, up basis, G&A a float $XXX $XX X%, full growing quarter and gross profit which excluding approximately $XX was was including GAAP and a the of is million. expenses up XX%; float. name, operating revenue million, including Ceridian amortization trade

XX%, adjusted year-over-year. last non-GAAP to basis Cloud basis XXX expanding by recurring gross the gross basis gross points cloud our as expand up margin margin year. improving cloud scale. XX%, excluding nicely, And points points continues versus continued Dayforce was margin was XXX recurring to a also float, recurring year-over-year basis, XXX platform On

of as the cloud as to we it on as items recurring average peers dollar and make noncash and a market customers key HCM how excludes recurring costs. from depreciation, It's a We compensation R&D-related shows that share-based like margins revenue after great an view comparison much go-live well gross our platform. adjusted metric

in From up $X.X XXX year-over-year trade $XXX.X basis primarily cash lower higher profit QX, margins million improvement G&A. margin, points XX.X% expanding reflecting $X were Adjusted EBITDA in was operating and in continued perspective, million, cash due adjusted receivables. last year, our flows or scale million and to XX% flow gross than a a

cycles related our a EBITDA to This adjusted our cash full full operating name customer result of the cash year to targets change timing, year name of was delayed change to in in We conversion as from result our brand some remain Dayforce. as upper the specifically confident XX% payment of flow. were flow

in revenue first our recurring basis expected, points As revenue XXX eloomi to approximately quarter. the growth of Dayforce added

basis. year, to of and the constant ahead, $X.XX now to basis. a XX% currency ex Dayforce currency and a XX% as billion float recurring approximately growth constant reported as or billion reported $X.XXX growth on of expect of Looking XX% $X.XX $X.XXX billion billion or full on revenue for to Total revenue we

anticipated. $XXX $XXX year, now expected the is million revenue margin. EBITDA to be reflecting or Adjusted originally $XXX full cuts million fewer to rate Float for to XX.X% of than XX% million

quarter, float Dayforce a ex second XX% to basis. $XXX in XX% as growth million, expect the recurring range we $XXX For or XX% currency XX% reported revenue or the on million of of to constant to

Total range second or of million revenue quarter. EBITDA XX% expected to or and constant $XXX be $XXX on of $XXX million in is growth Float be expected the to XX% million as $XX XX% currency to million revenue of reported to basis. adjusted million margin. XX.X% is the And a $XXX to to for

As but seasonal off you that QX to QX. QX tend in don't QX, that a recall, and items higher and that growth typically are guidance. This print in between is and our handful year-end volumes in sequential reflected fall filing including impact revenue QX there reoccur employee of drive

assumptions to We CAD XXXX. have USD beginning from as the our used observed X.XX FX the current rate the level worsened of of for the also has X.XX approximately rate updated spot at guidance

accounting have to financial internal are since a Q&A, policies accounting and We review. go external reporting our reviewed processes been considered, becoming procedures I carefully want and into undergo public strong and we and underpinned which stand reporting our layers financial and remind of in stakeholders that behind investors that company Before multiple disclosed by audited and and transparently policies, XXXX.

policies accounting transcripts on with comprehensive statements call, and our metrics. releases our We profile, key of encourage our to financial past along for earnings our investors a and financial press operating viewpoint financial and view our review

for conviction in continued Thank your you support Dayforce. and

We are excited the for future.

we With our portion begin the can that, call. Q&A of

Matthew Wells

Marcon with Thanks, Jeremy. [Operator Mark Mark? Instructions] comes Our first from Baird. question

Mark Marcon

Canadian questions. they $XXX up and X government during year. systems. The pay Canada materially ended service, relative million That's in allocated XX resources that public up got the the XXXX CAD improve million budget, to basically of I've One, committing human they to their prior had

what of sounds really things I'm so progressing first wondering And all, is, well. are it like

terms I additional what huge a You had sounds call sensitivities until mentioned really if perspective the going us milestones don't of but step in there's can it what Because like you in of XXXX. be some are, this up give any the anticipate you should are next things deal. monitoring? what on I'm know disclose, that seeing that we terms is major a you wondering And obviously can well.

Stephen Holdridge

jump this of the is welcome budget I'll statement continued that to Holdridge, positive as this call, we is This in. Steve view expansion that. on Mark, is It right? Yes, a anyone is I take said commitment. a going as into and news,

terms in further So Keep that the this mind of a long-term cements in macro, is this step. program.

we It's the continue chunk a first go begin even of probably prior see this funding before set is lives. to of A minimum X to years from years. the of big

it. bunch there's goes we the lot of work. the with And partners employee there. in it services in of early then government their to see expect it sort a have do of focused implementation increases and some uptick, an a chunk then and of terms we'll But we big labor XXXX, expect And in infrastructure. of to on Another volumes

So but overall a journey. part long positive, of

Mark Marcon

then and Wondering, regards can existing early my and it. upsell about excited Joe, how Dayforce Co-Pilot, the you give pricing is incremental base? us with expect it. to sounded it. the Joe, you as that there's feedback to both you pricing client that you Got David simplified any extremely around translate what follow-up, customer to and mentioned sense to the And

Joseph Korngiebel

use Co-Pilot a the to be really is platform efficient thank answers your and productive in people and to people able good employees. question. and their get transformation to hear how you Mark, make decisions more foundational for a voice, Yes, for

We customers program. with now out charter brought a realized. design to early customers to transformed how value vet could our an is early with started we program, in be early partnership the That start into work

able and see they your are their your I to We of can it, have mentioned, our with uploading off in customers it answers the the so customers, takes vary be leveraging admins early as workload answer that so really it documents, staff. oftentimes documents different HR to

It get done your ability to terms can their and get of back of job. really optimize performance answers in to staff their the

We'll the go from that in out to us, is year. then rolling of For half now. that second general this availability

As I statements, pricing. my simplifying in we the are mentioned

AI pricing in There's around these in a lot the type on of generative industry going complex tools.

HCM of an our to it's our add-on within us, For any products suite.

product And obviously a that's giving forward. on or really so interest you to same And exactly what add if of full that within you the get just suite, buy We're want. moves boost. X customers it productivity buy the our prospective can our and are customers seeing feedback, us us we kind the

Mark Marcon

anything X I Jeremy, in this? for more terms recurring in, did Can you build sneak in? of

Jeremy Johnson

this at incrementally probably we Mark, point, not in.

customer We're testing I cases. building think and base we're the point. not this with probably up out at incrementally this use

Matthew Wells

next Our question UBS. Kevin Kevin? comes from from McVeigh

Kevin McVeigh

results. Congratulations on the

update professional in from -- on terms Because starting like of of is SI-led how an it us of Can XX%. story transition services and in kind give distribution kind was that channel referenced on where of the that's growth you some think seems going I the about side the you quarter sales to the the forward? professional scale? that to SIs of part services sales the is

Stephen Holdridge

I that. consistent And in think Yes. we've been

primarily advisory to past broader also PE. to the that. partners, public We've SIs, our seen growth very than that few an move strategy is steady with even Over ecosystem, been years, we've in right, SI-led partners

large We as of as systems that, with well strength regional integrators to a both number mid-market. where continue we continue see see to on the global expansion

of markets. in our the for penetration outpace growth the growth to to SIs we all see year, and bookings, of across expect even balance expect We the

emerging in the focus sort services APJ, penetrations supporting high up and services really capability. and of us allowed the What where product-specific haven't to is have built we technology and capabilities. We with and on has our EMEA in U.S. do products SIs new

Kevin McVeigh

but we as how like whether impact should It's change just seems of with or obviously, to very given of that benefit? incremental just philosophically any somewhat about just remind that that the unexpected how kind rates gets because where just thinking helpful. And uptick we're us any in are, flow, float redeployed think about then

Jeremy Johnson

stick Thanks, Kevin. obviously longer bit float little nice a surprise to here. that around a It's Yes. is going

We bunch of targets significant There's can to invest. to we a that things. will we flow that the opportunities do margin We've want that at and But targets a cash we go the amount continue free have on we know hit. for look got to growth we after. time, can of side product same

the So you'll approach see probably a balanced us with here take float.

Matthew Wells

Lenschow from next from Raimo? Barclays. Raimo comes Our question

Raimo Lenschow

appetite there what a little starting in you projects? the that for just like the what's bit AI But traditional interest doors You really point, of out kind clients in terms Can then new transformation overall that on Jeremy. kind new I the long click I have And about in you're see. of good one? open had how in of seeing a thinking double is obviously to announced, you space? And is economy, HCM follow-up for of X terms which list of talking much

David Ossip

Raimo, We good it, full well math half amount early with the of Raimo, pushed as check guide. your your speak Not a of so in correction report year. to full Sure. just to in you. the just on actually terms the note. your

a we look we the healthy seeing and we In a translates remain terms focus way about that robust. systems of increased simplification typically the and that on the pipeline is levels of in and XX industry the is your that see we're actual would X. come What often at in automation, question, if pipeline, very there is to

have you efficiencies. manual And is economy, that in integration, means accounts Steve think errors, more less about. it I and messaging client, the for it's environment well the very that less the manual reflected today's the in automation, higher resonating numbers and effort, simplify spoke that we less FTEs, as less And

Raimo Lenschow

us revenue about there. you And maybe priorities me then into of I'll would it Can balancing about more, about some some Good. of talked of that float the bit think from look where little giving more be? in well, out, David. you Jeremy, you coming and of as talk congrats priorities extra that kind Perfect. of bit the little in terms if And investing that, that a kind versus a like

Jeremy Johnson

Thanks, Raimo. Yes.

could the is, getting there grow I -- think We're to flow I either kind down choose our line about of talk business. that ability as those dollars to can or of to incremental talking funds reinvest a right global. when we float mentioned, room to go we lot about in bottom this

new talking launching investing expanding like about across the space things in and products We're HCM and AI.

that So we product look really marketing technology do And do much how line. do at think sales, opportunity versus it and into put to put is I we growth I much out there. bottom continue our as into and huge how to the taking

the heard I approach, in as talk when out one market taking some with growing really we'll definitely and we'll we're you nicely, a expanding that balanced on that take a the well say continuing opportunities to go of us As is That's positioned invest to a that's capitalize that. margins look there. growth and and big huge HCM to TAM at as are really well both

Matthew Wells

Our Panigrahi from next from question comes Mizuho. Siti

Sitikantha Panigrahi

continue ex float. deliver your guide So payroll XX%-plus XX%-plus space, rating on Dayforce I you David, growth, recurring at just but or to -- your peers' in it's when recurring look your

you that you continue gives that kind kind deliver of So XX% growth? confidence to of will what

David Ossip

Siti. Yes. Thanks,

our quarter, which at talent first adding quarter, if is we was you it and at record point of suite in full the is The of look the employer sales And the look XX%. that XX% actual the was sales. if add-ons, component thing that out I'll

are at you company, the a Dayforce, on are an a when than in payroll which So market more durable company, actual we HCM that we growth gives others pay. more focused profile us look aren't much the

of the space, you about to segment are market which to of they each -- breadth well know, depth to our major with goes the large to out about that application from major of when Part X,XXX competitive as vendors you'll the enterprise of then the market across stand-alone sorry, find And up there. growth and look we even the markets from and about our whether the at very modules, are be above. as talent we XX,XXX goes about X,XXX X,XXX; XXX is, from it different major about the X,XXX major have -- enterprise and X,XXX; markets a enterprise sorry, we

emphasize profile, well. macro But we macro. the markets segmentation us on strong to a well, based which also changes ability different also balance have gives allows very actual growth And to different the the global as us as the differently as across

Sitikantha Panigrahi

your large not drive a those go-lives When is going at companies in and of the of pipeline help look And that How large this that year? around you now the of be of trend is of mentioned years-or-so. go-live before enterprise, deals? your right since next follow-up. going in terms should to confidence -- deals, terms with I you how that And closed growth those X live year as pipeline deals actually XXXX, QX

David Ossip

the know, of at Well, a their do we we've again, EBITDA additional implementations and discussed us give the business. guide and shortly. company, and plannable durable If expecting logistic population nice very stretch we very went as growth larger market. waves large plan different tight to as the in to business highly It's as it you that proportion But accounts carefully, a profile years. to see are the you the across we previously, allows look more us out live typically Siti, the revenue very, the give live go reflected before,

Matthew Wells

next with we circle back from question Our Scott. Berg comes Needham. Maybe can Scott on

Citi. from Enders Steve to go we'll Next,

Steven Enders

between just seeing overall you view mid-market clarity maybe today? what that? in driving start, rates bit to what maybe then out you're enterprise guess mid-market I quarter? terms on you little little detail think called improving bit And Great. a would be dynamics get win on Just demand as and the more a in of Okay. it more helpful just I I to guess

Stephen Holdridge

that. is I'll on that, can take in This and jump Yes. anyone Steve.

in in wins we've to to mid-market have on So the and and our the you've seen one, our our more continue go-to-market deals we increase market and past, we've in What more some we've as see ability coverage, the enterprise, win increased to, be that. sales continued is of up terms focus great seen rate. got continue in we

our feel with suite XXX%, to fits the We suite full there. tend and we lead

So And increase is David and We've balanced those our we in seen that have continuing talked full we're feed it's confident. as advantage guidance about, and predictability that we're portfolio. of mid-market, some we combination enterprise a of into think to in our a year drive the large revenue. the

Steven Enders

Okay. dynamics in flowing the I there. year? would in profitability of investment But or helpful. we EBITDA thinking anything any down of through Jeremy, year the has change that kind and That's seasonality guess about terms out of then in call else maybe XQ cadence for through of about kind think as Great. some just kind like And you

Jeremy Johnson

a think really quarter we've a QX. I of profitability No, ultimately, from had beat solid things. in We side

side. year in XQ our ultimately, remain through think come that we guidance. profitability to always But down a we updated I little beat from into bit confident a and flowed the tends full

that way. we've the set along target adjusted a a nice And under XX.X% our hit XX.X% to kind overall think And for that stopping midrange and XXXX. it's target just that us kind EBITDA point of good targets really us toward to XX.X% I I to of push XX% of think midpoint or for XX% or

as it's feeling balanced a -- will take pretty about solid flow get of revenue -- And we're I So that. as we with mentioned, approach here here. kind it incremental

Matthew Wells

Jester from Our BMO. next comes question with Dan

Daniel Jester

the things you, the helping a a macro Any out quarter get for the to little how maybe year? Dayforce terms you of you're into the about Jeremy, the rest guided think just about on the of kind about Maybe, relative bit changes Can called of year? full second few for you more you what us last to explicit line. seasonality in assuming quarter

Jeremy Johnson

with speak you, Nice to Dan.

of levels line seasonality. employment essentially kind in remain expectations, think flat I with our with ultimately, was which normal

that we doesn't I with any typical that think at and year-end if you off QX happen revenue print QX. seasonal some QX to in impacts, drop look the see of always in QX

And for drop you've It's QX with we to or talk year, to rest we'll in changes do the talk But QX. something business in in that's we're drops of real impact heard at that, years, factors about dynamics. been off point. guiding us the the seasonal QX through in off it tends would our consistently, or last volume the our of again, and QX couple to guidance in macro no continue this and how that any this

Daniel Jester

to maybe the a simple then that the Great. we on And going and back could Co-Pilot little comments more. about expand just Maybe pricing. bit

just these how do people customers what and for about compute the does maybe of thinking how sort one about think some help you're about manage you think I really this margins And so about is your mean? are of things can you tools? us many of costs and thinking simple and for usage

Joseph Korngiebel

on do but all can cost per with Dayforce that's large for we're for what put, our the with per language with month a happening rest is Co-Pilot, like, of innovation products. the costs we're and We the doing Simply just we're we making what employee rationalize doing it like simple the our models customers.

Matthew Wells

next with question from Our Wolfe. comes Alex Zukin

Aleksandr Zukin

sales guess the commentary kind growth. one. first maybe and If we I think just of the bookings around about

versus trending now through you into exiting that's new how of of month kind about the growth -- pipeline any the just April, commentary you're month a base? As and sales conversion or statistics selling between the way

David Ossip

good a ahead slightly come was of April plan. month, our in

Aleksandr Zukin

next company David, how talent over notion few and critical then, is And you an Perfect. of talked much the a becoming lot Dayforce how is kind to that years. about HCM

the what through far time, of rate today, that plus? next portfolio the How If where about base of And kind how impactful you are and pieces in that to is penetration addition of kind opportunity? customer payroll the that to you've year think within most about you? HCM over sold kind just of think your that

David Ossip

early stages. in We're

delta a client average PEPM can at across price. the still quite target our look you there's would price between and our If I between, you base, the average PEPM say, see

already. If inside very a results the sales base leader the strong. What look add-on both we base QX, in can at impact from in quarter, say terms and I very can suite is with seeing you onboard sales, strong of to are numbers see full the an you we number did that client of and the a back are

We that And well in also we really with pulled XXX,XXX the grocery talent suite, the team schedule. come enterprise If tremendously. purchased one entire of have our the actually out, the now ahead components. if strength, suite at the viability an we customers look their are has their at across year-to-date, overlay employee-plus are now, and replacing that and the of full they about doing results talent chain you I talent the talent ERPs large talks they've the capabilities of look where

Matthew Wells

Our next Bank. Deutsche question comes from Bhavin Shah with

Bhavin Shah

of of the you Who kind And into you one motion, the impressive upsell, Steve, of guess, that customer I just to opportunities of big other guys outside upsell customer typical talked a on Great. you base? kind are talent are elaborate that displacing in and just on dovetailing to the suite? base talent able kind for terms you're on that, what of Can about you stat.

Stephen Holdridge

So Yes. couple of a things.

one one, is year on versus this overlay out an said, a things customer we differently that, base motion double down is I'll what that dedicated David So motion. point the of did is

the and number invested account terms So focus executives in on that. the we've of of

up the all end we're displacing right? down of market, of end the displacing usual of displacing, ERPs. mid low the the upper we're terms In players it's market, market, UKG the in pays in and and the In we're who the the

technology And solution is with pay and in value with on talent win. competitive, because rationalization the in suite about, the newest an our fact capability around the we're And David fact, of of as time the this helping that the stickiness is what's our is now talked and market. cost entire that us intelligence our of platform incredibly displacing and the of them

Bhavin Shah

Super helpful.

customers, of some and question you post all that of customer digestion to the at with asked for there's Just at do I see it's as if in few a speak past on follow-up, as David, scrutiny all? spend describe elevated back-office to we know would some this been exited COVID. How When months? macro. conversations Raimo changed software, you you just another kind potential the period kind

David Ossip

you quarter. When I the every easy been I qualified look that XX live leadership, would say there's on under years, it's highly the argue that pipeline, now Over and situation. was last have, customers one almost actual Sam's of actual the platform and really know, now a an I as X,XXX competitive We can't pipeline. single RFP at a those

in types clearly, our very more of X earlier, target. Dayforce system. system client The efficiencies have around have a contribute plus they to the very better subscription good average saving customer year, to different which on different quantifiable the automation, manual at ratios strong they that less systems which that message, terms on to spoke as Steve and to for of first about is much about the rates, to And a IRR a I workflows much that simplicity ability our coverage simplifying and identify more mentioned, the typically place, error Dayforce which FTEs, scale are lower HR in also yields go automation very in the XX

both significantly based their are you their that up able the to and when that not market. we're have bottom differentiated AI, managers solutioning And quite organization impactful. it we really workers, of is the we same Dayforce, do a have would we why if layer and database question that top what we and now that decision-making experience have isn't actually at line data their it's I And frontline very because executives to Dayforce empowering the in on begin terms and Dayforce. line can time, the impact the And on doing on the for lift of all on single

Matthew Wells

Our next question Cowen. Levine from TD with comes Jared

Jared Levine

and those of grow discuss other looking terms and to each of versus your revenue currently In related revenue, at the of you over professional medium mix the how that related implementation and would you services term? that professional expect can non-implementation

Stephen Holdridge

our we then over to that around call But X with partners services services to implementation we implementation the one our is in profitability obviously, supporting to we what focus of mix continued core Yes, as increase. that. exception that value-added really that. mentioned And we into think and in new yes. decrease kind value-added categories: expect and to expect And year-over-year move emerging The as an Canada broad see expect of a time, the products with and growth we well. on that, also SIs and with Government as our we of and continue slow implementation increases

Jeremy Johnson

of professional Jared, It's I'll also there. and gross And add services margin. maybe inside other Yes.

to SIs, that. continue, of SI's still like that opportunity custom on and into and will things is and training have we a move as that the is, last the I'll paper. we all have not good continue to continue grow then say We And Cox revenue, thing move to and

Some account is X ASC couple which actually that with when and for obligations we SI-led, on of it a that. contracted under our means got XXX say is to some that performance paper, of things of like we've

clarify, misnomer I think So that there. a I to out think just might be

Jared Levine

ex ex And XQ. recurring results? revenue it later in float recurring what lower-than-expected both of you out for in float Got below it. year? more and discuss Bureau the those push came then expectations so your of Can drove Is Powerpay

Jeremy Johnson

Yes.

that float. general, think, employment and by in I for X% we grew we in lofty solid had I business or some the that as we I expectations, Canada And set think, still think total things expected. I of on as levels, side excluding -- though, we X% had aren't Powerpay in think, that

that really to Dayforce. expect that And revenue So what continued on on really one. bureau side, the see about to products just behind and And line over that's our kind migrating expectations you're going continue to year-on-year. slightly decrease that and end-of-lifing of into other we on it's

Jared Levine

here, updated guide could. assumed Just float a recurring quick follow-up is ex I there? Dayforce bureau What the if contribution migration a for

Jeremy Johnson

believe that don't I we've disclosed specifically.

David Ossip

immaterial. It's

Jeremy Johnson

Yes.

Matthew Wells

comes with Murphy question JPMorgan. Mark from next Our

Mark Murphy

digits When performing base, wondering a And ago your X% to being? the us slid How from U.S. give on we you if at that follow-up. labor does the in for have might few think the look I'm a at perspective obviously, years Recently, you growth I'm within your look could trend to single time continue quick because range. you're I has non-farm do wondering then payroll market. low David, about X.X% well. installed that the grow pretty comparatively X.X%,

David Ossip

strong had I fact volumes would for durable in system Mark, capabilities lead and a of record back our add-ons say cash profile employment the what to of and have that our the rates point part business. IRR customers. of client came slightly consistent growth very forecasted, again growth would that, our at talent we our we base the the of that I drive that out we're so ability is to ahead for inside top go On and do the employer and to still to seeing does healthy our

Mark Murphy

is still as across measured bounce back bit industry? the you some of seen as a as I positive broader the to or out suite seen bookings wanted Understood. Okay. curious, ask bookings the season think a total on because full softness comments we've I around you well, of we selling see buying of trends and just I'm well. April those there add-on were in saw said you've it bookings, a kind to the did relative environment holiday

David Ossip

January on with came we plan saw well. year I Mark, in ahead as very in and early mentioned, April that as coming the in actual Yes, of strong very

pleased we're sales with So year-to-date.

Matthew Wells

Kumar will Great. Kevin It looks from with Goldman come Sachs. like our final question

Kevin Kumar

you be color seen demand in any differences environment, would the of there call the terms would mid-market Any you helpful. versus trends In have out or enterprise? that

David Ossip

the we're integration, as to the about system in customers, market prospects less simplicity call and X are day again, topical both the to that on be work, from our quite major mid-market, less the what FTEs, at up goes enterprise manual we XX,XXX, scale, at average, we kind space, be different to seems XX efficiencies In well and automation, to the less seeing is more markets moment. more of which ask which X hearing they what the in theme systems seems

Matthew Wells

This for Great. call. dialing Thanks, today. in everyone, concludes our

Dayforce (DAY) 1 May 242024 Q1 Earnings call transcript