Solid results in the third quarter: Dayforce on a growth trajectory

Dayforce made remarkable progress in the third quarter of 2024, as the company continues to focus on both growth and profitability. Recurring revenue increased by 19% to $333 million, excluding capital, while total revenue grew by 17% to $440 million. The adjusted cloud gross margin improved to 79.9%. The company recorded an adjusted EBITDA of $126 million with a margin of 28.7%. Particularly impressive is the growth in operating cash flow by 54% to $200 million, while free cash flow increased by 184% to $117 million. Currently, 6,730 customers are active on the Dayforce platform, leading to a 15% increase in recurring revenue per customer. Dayforce is focusing on innovation, having recently relaunched the "Dayforce Learning" platform, integrated cashless tipping, and enhanced data analytics capabilities. The sales pipeline remains strong, supported by the expansion of the Dayforce portfolio and the growth of the system integrator channel. The upcoming "Dayforce Discover" event in Las Vegas will bring the company and its investors together to explore further growth opportunities. For the fourth quarter, Dayforce expects continued growth with a strong coverage ratio of sales opportunities to targets. Recurring revenue, excluding capital, is projected to be between $311 and $316 million, representing growth of 21% to 23%. The company remains confident in its long-term plans, aiming for revenue of $5 billion and free cash flow of $1 billion by 2025.