Dayforce lifts annual revenue forecast on strong payroll demand; shares rise
July 31 (Reuters) -Dayforce DAY.N raised its full-year revenue forecast on Wednesday, banking on robust demand for its payroll and human capital management services, sending its shares up 8% in premarket trading.
Strong client spending on the company's flagship Dayforce platform that provides services such as cloud-based human resource management, recruiting and payroll processing boosted its second-quarter recurring revenue 20% to $321.6 million.
Heavy investment in artificial intelligence has also helped the company compete with larger players such as Workday WDAY.O and Automatic Data Processing ADP.O.
"Our strong results are translating into improved cash flow generation, prompting our Board of Directors to approve a $500 million share repurchase program," CFO Jeremy Johnson said.
Dayforce expects fiscal 2024 revenue between $1.74 billion and $1.75 billion, above its prior view of $1.73 billion to $1.74 billion.
However, its third-quarter topline forecast of $425 million to $430 million was below analysts' average estimate of $430.7 million, according to LSEG data.
Its second-quarter revenue rose 15.7% to $423.3 million from a year ago, exceeding expectations of $417.5 million.
But the company reported a net loss of 1 cent per share, compared with a net income of 2 cents a year ago.
Reporting by Zaheer Kachwala in Bengaluru; Editing by Shreya Biswas
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
