Ceridian HCM Holding Inc (CDAY) Reports 19.6% YoY Increase in Q3 2023 Total Revenue
Ceridian HCM Holding Inc (NYSE:CDAY) reports Q3 2023 total revenue of $377.5 million, a 19.6% YoY increase.
Dayforce recurring revenue reached $279.6 million, up 34.6% YoY.
Operating profit stood at $26.5 million, with adjusted operating profit at $89.4 million.
Net loss was $3.8 million, compared to $21.0 million in the same period last year.
On November 1, 2023, Ceridian HCM Holding Inc (NYSE:CDAY), a global leader in human capital management (HCM) technology, announced its financial results for the third quarter ended September 30, 2023. The company reported a total revenue of $377.5 million, marking a 19.6% year-over-year increase. Dayforce recurring revenue contributed significantly to this growth, with a 34.6% YoY increase to $279.6 million.
Financial Highlights
CDAY's operating profit for Q3 2023 was $26.5 million, compared to an operating loss of $3.7 million in the same period last year. Adjusted operating profit stood at $89.4 million, reflecting a significant increase from $50.1 million in Q3 2022. The company reported a net loss of $3.8 million, a notable improvement from the $21.0 million net loss in Q3 2022. Adjusted net income was $58.3 million, up from $31.1 million in the same period last year.
Key Financial Tables
CDAY's financial tables reveal a cloud recurring gross margin of 77.0%, compared to 72.1% in Q3 2022. Adjusted cloud recurring gross margin was 78.3%, up from 74.8% in the same period last year. The company's diluted net loss per share was $0.02, compared to $0.14 in Q3 2022. Adjusted diluted net income per share stood at $0.37, up from $0.20 in the same period last year.
Business and Sales Highlights
CDAY reported an increase of 498 customers since September 30, 2022, bringing the total number of customers live on the Dayforce platform to 6,346 as of September 30, 2023. The company also announced plans to unify its brand under its industry-leading, global people platform, Dayforce. In terms of sales, CDAY secured several significant contracts, including one with one of the largest supermarket chains in Canada, supporting 125,000 employees across 1,500 retail locations.
Business Outlook
Based on the information available as of November 1, 2023, CDAY issued guidance for the fourth quarter and full year of 2023. The company expects total revenue for Q4 2023 to be between $398 million and $401 million, representing an 18% to 19% YoY increase. For the full year 2023, CDAY anticipates total revenue to be between $1,512 million and $1,515 million, marking a 21% to 22% YoY increase.
Explore the complete 8-K earnings release (here) from Ceridian HCM Holding Inc for further details.
This article first appeared on GuruFocus.
