Q1 2025 Dayforce Inc Earnings Call Transcript
Key Points
- Dayforce Inc (DAY) reported a strong first quarter with total revenue of $482 million, growing 14% on a constant currency basis.
- The company achieved an adjusted EBITDA margin of 32.5%, up 240 basis points year-over-year.
- Dayforce's sales momentum continued with the best first quarter in its history, and the sales pipeline remains robust.
- The company secured several key new business wins, including large contracts with major companies across various industries.
- Dayforce's partnership with Microsoft, placing its platform on the Azure marketplace, enhances accessibility and procurement for enterprise customers.
- Dayforce Inc (DAY) incurred a nonrecurring restructuring charge of $29.2 million in the first quarter due to a global workforce reduction.
- The company expects a deceleration in total revenue growth in the second quarter before picking up in the second half of the year.
- Dayforce's float revenue is subject to interest rate fluctuations, with expectations of rate cuts in the US affecting future revenue.
- The company faces challenges in migrating customers from its APJ legacy business to the Dayforce platform, impacting other recurring revenue.
- Despite strong sales, the conversion of bookings to revenue takes time, affecting immediate financial results.
Greetings, and welcome to the Dayforce first quarter 2025 Earnings Conference Call and Webcast. (Operator Instructions) As a reminder, this conference is being recorded.
It's now my pleasure to turn the call over to David Niederman, Vice President, Investor Relations. David, please go ahead.
Thank you for joining, and welcome to the Dayforce first quarter 2025 Earnings Call. I'm David Niederman, Vice President, Investor Relations. (Operator Instructions) Joining me on the call today are CEO, David Ossip; and CFO, Jeremy Johnson. We also have key Strategy, Product and Technology Officer, Joe Korngiebel, and our President and COO, Steve Holdridge available for Q&A.
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
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