Dayforce forecasts weak first-quarter revenue on slowing payroll services demand

Dayforce

07/02/2024 14:57

Feb 7 (Reuters) - Dayforce  DAY.N , 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  SPR.N , 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  ADP.O  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)
 ((Priyanka.G@thomsonreuters.com;))