Payroll firm Dayforce forecasts downbeat fourth quarter, shares fall

Dayforce

30/10/2024 13:00

Oct 30 (Reuters) - Dayforce  DAY.N  forecast its
fourth-quarter revenue below Wall Street expectations on
Wednesday, in a sign of softer demand for payroll and human
capital management services as economic uncertainties persist.
    Shares of the company fell around 6% in premarket trading.
    Spending by enterprise clients on human resource and payroll
services remained stretched as hiring cooled, consistent with a
slowing labor market, pressuring demand for companies such as
Dayforce.
    The company expects fourth-quarter revenue to be between
$452 million and $457 million, compared with analysts' average
estimate of $458 million, according to data compiled by LSEG.
    Its total revenue of $440 million for the third quarter,
however, beat expectations of $428.3 million.
    On an adjusted basis, it earned 47 cents per share for the
three months ended Sept. 30, compared with estimates of 43
cents.
    Dayforce also provided its initial revenue growth forecast
of 14% and 15% for full-year 2025 versus expectations of a 13.1%
increase.

 (Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi
Majumdar)
 ((Zaheer.Kachwala@thomsonreuters.com;))