Dayforce lifts annual revenue forecast on strong payroll demand; shares rise

Dayforce

31/07/2024 14:01

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)
 ((Zaheer.Kachwala@thomsonreuters.com;))