Dayforce Sees Q1 Revenue $424M-$427M Vs $427.81M Est.; FY24 Revenue $1.72B-$1.73B Vs $1.74B Est.
Portfolio Pulse from Benzinga Newsdesk
Dayforce projects Q1 2024 revenue between $424M-$427M, slightly below the $427.81M estimate, and FY24 revenue between $1.72B-$1.73B, under the $1.74B estimate. The company anticipates a 14%-15% revenue increase in Q1 and a 14% increase for FY24 on a GAAP and constant currency basis. Dayforce expects a decline in other recurring revenue due to sunsetting legacy solutions but predicts an increase in PowerPay recurring revenue. Adjusted EBITDA is forecasted at $123M-$126M for Q1 and $480M-$495M for FY24, reflecting investments in global expansion and the Dayforce rebrand and eloomi acquisition.
February 07, 2024 | 3:19 pm
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Dayforce anticipates Q1 2024 revenue to be slightly below estimates and FY24 revenue to also fall short of expectations. The company expects growth in PowerPay recurring revenue but a decline in other recurring revenues due to sunsetting legacy solutions. Investments in global expansion and the acquisition of eloomi are highlighted.
The slight miss in revenue projections for both Q1 and FY24 compared to estimates could lead to a negative short-term impact on Dayforce's stock price. The decline in other recurring revenues may concern investors, despite the positive outlook on PowerPay recurring revenue and strategic investments for growth. The overall negative score reflects the immediate market reaction to earnings misses, although the company's strategic investments could mitigate some concerns.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100