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Highlights

  • Dayforce’s FY24 revenue reached USD 1,760 million, up 16.3% from FY23
  • Operating profit decreased by 21.8% in FY24 due to higher costs and expenses
  • FY25 revenue forecasted between USD 1,745 million and USD 1,760 million, with 11.9%-12.8% growth

Dayforce, Inc. (TSX: DAY) offers a complete suite of Human Capital Management (HCM) features, including HR, payroll, tax, workforce management, benefits, and talent intelligence.

FY24 Financial Update

In the fiscal year 2024 (FY24), the company’s total revenue reached USD 1,760 million, a 16.3% increase from USD 1,513.7 million in FY23. This growth was primarily attributed to its healthy recurring revenue model, which supported consistent performance throughout the year.

However, despite the positive revenue growth, the company faced challenges in profitability. Operating profit fell by 21.8% YoY, from USD 133.1 million in FY23 to USD 104.1 million in FY24. This decline was mainly due to a rise in operating expenses and higher revenue costs.

Additionally, the company's income before income taxes saw a notable drop of 60.8% YoY, from USD 96 million in FY23 to USD 37.6 million in FY24. This reduction was largely due to higher interest costs and other expenses. As a result, net income also suffered a steep decline of 67.0% YoY to USD 18.1 million, compared to USD 54.8 million in the previous fiscal year.

Recent Business Update

On February 5, 2025, the company made two significant announcements. First, the Dayforce Partner Network launch was revealed, a strategic initiative aimed at fostering growth opportunities and delivering an exceptional customer experience.

Additionally, the company reported healthy free cash flows, which increased to USD 171.5 million, up from USD 105.1 million. The free cash flow margin also saw growth, reaching 9.7%, an increase of 2.8 percentage points compared to the previous margin of 6.9%.

Company Outlook

For FY25, the company projects total revenue, excluding float, to fall between USD 1,745 million and USD 1,760 million, reflecting an anticipated growth of approximately 11.9% to 12.8% compared to FY24. In addition, it aims to achieve a 32% adjusted EBITDA margin and a 12% free cash flow margin.

Top 10 Shareholders

The top 10 shareholders of Dayforce together form ~76.70% of the total shareholding. Capital Research Global Investors and Capital International Investors hold a maximum stake in the company at ~­­­11.42% and ~11.11%, respectively.

Stock Information

Over the past week, Dayforce’s stock has seen an upside of approximately 0.80%, while experiencing a downside of around 4.07% over the last month. Currently, the stock is trading higher than its 52-week average, with a high of CAD 115.57 and a low of CAD 64.24. As of February 20, 2025, the stock closed at CAD 95.40.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is February 20, 2025. The reference data in this report has been partly sourced from EODHD/Others.