Dayforce forecasts weak first-quarter revenue on slowing payroll services demand
Feb 7 (Reuters) - Dayforce, formerly Ceridian HCM Holding, forecast first-quarter revenue below market expectations on Wednesday, on worries that a slower pace of hiring and IT budget cuts will dampen demand for the company's payroll services.
Shares of the company were down 10.6% in morning trade.
The company expects first-quarter revenue in the range of $424 million to $427 million compared to analysts' estimates of $427.8 million, according to LSEG data.
A tough macroeconomic environment has dampened demand for the company's human resource and payroll services, with U.S. tech companies continuing to let go of staff after massive retrenchment drives last year.
Dayforce, whose more than 6,000 customers include Spirit Aerosystems, posted fourth-quarter revenue of $399.7 million, which is in line with estimates.
However, on an adjusted basis, the company posted 50 cents per share, compared with analysts' expectations of 32 cents.
The company's results contrast with its peer Automatic Data Processing which reported upbeat results in January.
Dayforce announced earlier this year it will acquire learning experience platform Eloomi, to integrate and improve existing learning management and talent offering. (Reporting by Priyanka.G in Bengaluru; Editing by Shailesh Kuber)
