On July 31, 2024, Dayforce Inc (DAY, Financial) released its 8-K filing for the second quarter of 2024. Dayforce, a global leader in human capital management (HCM) technology, provides payroll and human capital management solutions targeting clients with 100-100,000 employees. Following the 2012 acquisition of Dayforce, the company pivoted to become a cloud HCM provider, with about 80% of its revenue derived from its flagship Dayforce platform.
Financial Performance and Key Metrics
Dayforce Inc (DAY, Financial) reported total revenue of $423.3 million for Q2 2024, marking a 16% increase from the same period last year. Recurring revenue from the Dayforce platform reached $321.6 million, up 20% year-over-year. The company also noted a 16% increase in year-to-date net cash provided by operating activities, totaling $108.3 million.
Despite these gains, the company reported a net loss of $1.8 million, compared to a net income of $3.1 million in Q2 2023. Adjusted net income, however, was $76.2 million, up from $50.8 million in the previous year. Adjusted EBITDA also saw an increase, reaching $116.3 million compared to $98.4 million in Q2 2023.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $423.3 million | $365.9 million |
| Dayforce Recurring Revenue | $321.6 million | $268.2 million |
| Net (Loss) Income | $(1.8) million | $3.1 million |
| Adjusted Net Income | $76.2 million | $50.8 million |
| Adjusted EBITDA | $116.3 million | $98.4 million |
Balance Sheet and Cash Flow
Dayforce Inc (DAY, Financial) reported total assets of $9.05 billion as of June 30, 2024, slightly up from $9.01 billion at the end of 2023. The company's cash and equivalents stood at $465.4 million, down from $570.3 million at the end of 2023. Total liabilities were reported at $6.57 billion, with stockholders' equity at $2.48 billion.
Net cash provided by operating activities for the first six months of 2024 was $108.3 million, compared to $93.0 million for the same period in 2023. Free cash flow for the first half of 2024 was $53.9 million, up from $36.5 million in the first half of 2023.
Business and Sales Highlights
Dayforce Inc (DAY, Financial) added 82 new customers in Q2 2024, bringing the total to 6,657 live customers on the Dayforce platform. The company also announced several significant sales, including an expansion of its services to the Government of Canada and new contracts with a global agribusiness and a multi-national entertainment company.
In terms of product development, Dayforce released new capabilities and platform updates, including enhancements to its generative AI model and compliance updates covering various regulatory topics.
Commentary and Outlook
"Our business momentum continued in the second quarter of 2024, with Dayforce recurring revenue up 20%, and year-to-date cash flows from operating activities up 16%. Our success is rooted in the simplicity that organizations around the world are seeing with the Dayforce platform, enabling them to create significant efficiencies in their businesses while delivering a best-in-class HCM experience for their employees," said David Ossip, Chair and CEO of Dayforce.
Looking ahead, Dayforce Inc (DAY, Financial) has issued guidance for the third quarter and full year of 2024. The company expects total revenue for the full year to be between $1.736 billion and $1.746 billion, representing a 15% increase on a GAAP basis. Adjusted EBITDA for the full year is projected to be between $490 million and $505 million.
For more detailed information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Dayforce Inc for further details.
