Ceridian HCM Holding Inc. (CDAY) Bundle
A Brief History of Dayforce, Inc.
Dayforce, Inc., formerly known as Ceridian HCM Holding Inc., has established itself as a leading provider of human capital management (HCM) solutions. The company rebranded to unify its identity under the Dayforce platform, which provides a comprehensive suite of tools for HR, payroll, talent management, and workforce management.
Financial Performance Overview
As of December 31, 2023, Dayforce reported significant growth in its financial performance:
| Metric | 2023 | 2022 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue | $1,513.7 million | $1,246.2 million | 21.5% |
| Dayforce Recurring Revenue | $1,111.1 million | $815.2 million | 36.3% |
| Adjusted EBITDA | $410.2 million | $250.4 million | 63.9% |
| Net Income | $54.8 million | $(73.4) million | Positive turnaround |
| Diluted Net Income per Share | $0.35 | $(0.48) | Positive turnaround |
Key Operational Metrics
Dayforce's operational metrics as of the end of 2023 indicate robust growth in customer engagement and platform utilization:
| Metric | 2023 | 2022 | Year-over-Year Change |
|---|---|---|---|
| Global Employees on Platform | 6.84 million | 5.95 million | 15.0% |
| Customers Live on Platform | 6,393 | 5,993 | 6.7% |
| Average Revenue per Customer | $146,771 | $121,500 | 20.9% |
Cash Flow and Liquidity
Dayforce's cash flow metrics reflect strong operational cash generation:
| Metric | 2023 | 2022 |
|---|---|---|
| Net Cash Provided by Operating Activities | $219.5 million | $132.6 million |
| Cash and Equivalents | $570.3 million | $431.9 million |
Market Position and Recognition
Dayforce has been recognized for its leadership in the HCM space:
- Named a Leader in the 2023 Gartner® Magic Quadrant™ for Cloud HCM Suites for 1,000+ Employee Enterprises.
- Awarded for compliance and payroll administration in the Gartner Critical Capabilities report for Cloud HCM Suites.
- Won the Benefits and Pensions Monitor’s inaugural Service Provider Awards 2023 for innovative solutions.
Future Outlook
Looking ahead to 2024, Dayforce anticipates continued growth:
| Metric | 2024 Guidance |
|---|---|
| Total Revenue | $1,720 million to $1,730 million |
| Adjusted EBITDA | $480 million to $495 million |
| Dayforce Recurring Revenue | $1,160 million to $1,165 million |
Dayforce's strategic investments in expanding its global footprint and enhancing its platform capabilities are expected to drive future growth and operational efficiencies.
A Who Owns Ceridian HCM Holding Inc. (CDAY)
Major Shareholders
As of 2024, Ceridian HCM Holding Inc. (CDAY) exhibits a diverse shareholding structure with significant institutional ownership. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| Vanguard Group, Inc. | 8.5% | Institutional |
| BlackRock, Inc. | 7.2% | Institutional |
| FMR LLC (Fidelity Investments) | 5.9% | Institutional |
| State Street Corporation | 4.8% | Institutional |
| Janus Henderson Group plc | 3.6% | Institutional |
| Other Institutional Investors | 30.0% | Institutional |
| Insider Ownership | 2.5% | Management |
| Public Float | 33.0% | Retail |
Stock Performance
As of February 2024, Ceridian HCM's stock (CDAY) is trading at approximately $85.00 per share. The stock has shown a year-to-date increase of 15%, reflecting a positive market sentiment toward the company's growth prospects.
Recent Financial Highlights
In the fourth quarter of 2023, Ceridian reported total revenue of $399.7 million, marking an increase of 18.9% year-over-year. The breakdown of revenue streams is as follows:
| Revenue Source | Q4 2023 Revenue (in millions) | Year-over-Year Growth |
|---|---|---|
| Dayforce Recurring Revenue | $292.1 | 30.1% |
| Powerpay Recurring Revenue | $28.1 | 5.2% |
| Professional Services | $60.6 | 18.1% |
| Other Recurring Revenue | $18.9 | (43.8%) |
Company Leadership
The current leadership team includes:
- David Ossip - Chair and CEO
- Jeremy Johnson - Chief Financial Officer
- Justine Janssen - Chief Strategy Officer
Market Capitalization
As of early 2024, Ceridian HCM has a market capitalization of approximately $13.3 billion, positioning it as a significant player in the Human Capital Management (HCM) technology sector.
Future Outlook
For fiscal year 2024, Ceridian projects total revenue between $1.72 billion and $1.73 billion, indicating a growth rate of approximately 14% compared to the previous year. The company anticipates continued growth in its recurring revenue streams.
Ceridian HCM Holding Inc. (CDAY) Mission Statement
Dayforce, Inc. (formerly known as Ceridian HCM Holding Inc.) focuses on enhancing work life for organizations and employees through its comprehensive human capital management (HCM) technology platform. The mission is to empower customers to unlock their workforce potential with confidence, offering solutions that encompass HR, payroll, talent management, workforce management, and benefits.
Financial Performance Overview
The financial performance of Dayforce for the fiscal year 2023 reflects significant growth across various metrics, emphasizing its strong market position and operational efficiency.
| Metric | 2023 Amount | 2022 Amount | Year-over-Year Change (%) |
|---|---|---|---|
| Total Revenue | $1,513.7 million | $1,246.2 million | 21.5% |
| Dayforce Recurring Revenue | $1,111.1 million | $815.2 million | 36.3% |
| Adjusted EBITDA | $410.2 million | $250.4 million | 63.9% |
| Net Income | $54.8 million | Net Loss of $73.4 million | Positive Turnaround |
| Cash and Equivalents | $570.3 million | $431.9 million | 32.0% |
| Operating Cash Flow | $219.5 million | $132.6 million | 65.5% |
Customer Metrics
Dayforce has successfully expanded its customer base and user engagement, reinforcing its commitment to providing value through its platform.
| Metric | 2023 Amount | 2022 Amount | Year-over-Year Change (%) |
|---|---|---|---|
| Global Employees on Dayforce | 6.84 million | 5.95 million | 15.0% |
| Customers Live on Dayforce | 6,393 | 5,993 | 6.7% |
| Recurring Revenue per Customer | $146,771 | Not Available | 20.9% |
Market Recognition and Growth Strategy
Dayforce has been recognized for its leadership in the HCM space, being named a Leader in the 2023 Gartner Magic Quadrant for Cloud HCM Suites for 1,000+ Employee Enterprises.
- Strong focus on integrating innovative solutions such as Mobile Shift Experience and automated engagement surveys.
- Plans to expand globally while enhancing the capabilities of existing platforms.
- Strategic investments in technology and customer experience to drive growth and retention.
Guidance for 2024
Looking ahead, Dayforce has provided guidance that indicates continued growth and operational improvements.
| Metric | 2024 Guidance Range | Expected Growth (%) |
|---|---|---|
| Total Revenue | $1,720 million to $1,730 million | 14% |
| Dayforce Recurring Revenue | $1,160 million to $1,165 million | 20% to 21% |
| Adjusted EBITDA | $480 million to $495 million | 27.9% to 28.6% |
How Ceridian HCM Holding Inc. (CDAY) Works
Business Model
Ceridian HCM Holding Inc. operates primarily through its cloud-based human capital management (HCM) platform, Dayforce. The platform integrates various HR functions, including payroll, talent management, workforce management, and employee benefits, into a single solution.
Financial Performance
As of the end of 2023, Ceridian reported total revenue of $1,513.7 million, marking a year-over-year increase of 21.5%, or 22.8% on a constant currency basis. The company achieved a cloud annualized recurring revenue (ARR) of $1,250.6 million, reflecting a 20.1% growth.
| Metric | 2023 | 2022 | Change (%) |
|---|---|---|---|
| Total Revenue | $1,513.7 million | $1,246.2 million | 21.5% |
| Cloud ARR | $1,250.6 million | $1,041.3 million | 20.1% |
| Net Income | $54.8 million | $(73.4) million | N/A |
| Adjusted Net Income | $238.7 million | $120.5 million | 97.9% |
| Adjusted EBITDA | $410.2 million | $250.4 million | 63.9% |
Revenue Breakdown
The revenue from Dayforce, excluding float revenue, was reported at $962.9 million, which indicates a growth of 27.9% year-over-year. The float revenue from customer funds for the year was $148.2 million, a significant increase of 137.5% compared to the previous year.
| Revenue Source | 2023 | 2022 | Change (%) |
|---|---|---|---|
| Dayforce Recurring Revenue (excluding float) | $962.9 million | $752.8 million | 27.9% |
| Dayforce Float Revenue | $148.2 million | $62.4 million | 137.5% |
| Total Dayforce Recurring Revenue | $1,111.1 million | $815.2 million | 36.3% |
Operational Highlights
As of December 31, 2023, Ceridian had 6,393 customers live on the Dayforce platform, an increase of 400 customers or 6.7% year-over-year. The platform supports 6.84 million global employees, up from 5.95 million in the previous year.
| Operational Metric | 2023 | 2022 | Change (%) |
|---|---|---|---|
| Customers Live on Dayforce | 6,393 | 5,993 | 6.7% |
| Employees Supported | 6.84 million | 5.95 million | 15.0% |
Profitability Metrics
Ceridian reported an operating profit of $133.1 million for 2023, translating to an operating margin of 8.8%. The adjusted operating profit was $339.8 million, or 22.4% of total revenue.
| Profitability Metric | 2023 | 2022 | Change (%) |
|---|---|---|---|
| Operating Profit | $133.1 million | $(25.8) million | N/A |
| Adjusted Operating Profit | $339.8 million | $196.2 million | 73.1% |
| Operating Margin | 8.8% | (2.1%) | N/A |
| Adjusted Operating Margin | 22.4% | 15.7% | 42.7% |
Cash Flow and Liquidity
Net cash provided by operating activities for 2023 was $219.5 million, compared to $132.6 million in 2022. The company reported cash and equivalents of $570.3 million at the end of 2023, up from $431.9 million at the end of 2022.
| Cash Flow Metric | 2023 | 2022 | Change (%) |
|---|---|---|---|
| Net Cash from Operating Activities | $219.5 million | $132.6 million | 65.3% |
| Cash and Equivalents | $570.3 million | $431.9 million | 32.0% |
Market Position and Recognition
Ceridian was recognized as a leader in the 2023 Gartner Magic Quadrant for Cloud HCM Suites for enterprises with over 1,000 employees, marking its fourth consecutive year in this position. The company was also recognized for compliance and payroll administration excellence.
How Ceridian HCM Holding Inc. (CDAY) Makes Money
Revenue Sources
Ceridian HCM Holding Inc. generates revenue primarily through its cloud-based human capital management (HCM) solutions, specifically the Dayforce platform. The revenue streams include:
- Dayforce Recurring Revenue: This segment generated $1,111.1 million in 2023, representing a 36.3% increase year-over-year.
- Float Revenue: Revenue from invested customer funds amounted to $174 million for 2024, with an average float balance of $4.18 billion and an average yield of 3.9%.
- Professional Services: This segment contributed $216.4 million in revenue for 2023, with a 9.0% growth compared to the previous year.
- Other Recurring Revenue: This category, previously known as Bureau, generated $85.9 million in 2023 but saw a decline of 38.3% year-over-year.
Financial Performance Overview
For the full year 2023, Ceridian reported total revenue of $1,513.7 million, an increase of 21.5% compared to 2022. The following table summarizes the key financial metrics:
| Metric | 2023 | 2022 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue | $1,513.7 million | $1,246.2 million | 21.5% |
| Dayforce Recurring Revenue | $1,111.1 million | $815.2 million | 36.3% |
| Float Revenue | $174 million | $62.4 million | 137.5% |
| Professional Services Revenue | $216.4 million | $198.6 million | 9.0% |
| Other Recurring Revenue | $85.9 million | $139.2 million | (38.3%) |
Profitability Metrics
Ceridian's profitability has shown significant improvement. The company reported:
- Operating Profit: $133.1 million in 2023, compared to an operating loss of $25.8 million in 2022.
- Net Income: $54.8 million in 2023, up from a net loss of $73.4 million in 2022.
- Adjusted EBITDA: $410.2 million in 2023, compared to $250.4 million the previous year.
- Adjusted Operating Profit: $339.8 million, a margin of 22.4% of total revenue.
Customer Base and Market Reach
As of December 31, 2023, Ceridian reported:
- 6,393 customers utilizing the Dayforce platform, reflecting an increase of 400 customers year-over-year.
- 6.84 million global employees were active on the Dayforce platform, marking a 15.0% increase from the previous year.
- Dayforce recurring revenue per customer: $146,771 for the trailing twelve months, an increase of 20.9%.
2024 Financial Guidance
For the fiscal year 2024, Ceridian projects:
- Total Revenue: Expected to be between $1,720 million to $1,730 million, reflecting a 14% growth.
- Dayforce Recurring Revenue (excluding float): Anticipated to be between $1,160 million to $1,165 million, an increase of 20% to 21%.
- Adjusted EBITDA: Forecasted between $480 million to $495 million, with margins of 27.9% to 28.6%.
Conclusion on Revenue Generation
Ceridian's revenue generation is primarily driven by its robust Dayforce platform, which has seen substantial growth in recurring revenues. The company's strategic positioning in the HCM market, alongside its commitment to innovation and customer satisfaction, supports its ongoing financial success.
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