Dayforce (DAY.TO) was at last look down more than 3% in US premarket even as it reported higher than expected adjusted profit and revenue for its fourth quarter, but flagged lower than forecast sales to come.
The company, which specializes in workforce management, said adjusted net income rose to US$97.1 million, or US$0.60 per adjusted diluted share, from US$80.3 million, or US$0.50 per share, the previous year. The consensus forecast from FactSet was for $0.45.
Fourth-quarter revenue rose to US$465.2 million, an increase of 16.4%. The FactSet estimate was for $455.1 million. Dayforce said recurring revenue was US$347.9 million, up 19.1%.
For its fiscal first quarter, Dayforce is guiding for total revenue of US$421-$427 million. Analysts surveyed by FactSet expect $482.3 million.
The company is forecasting total revenue of US$1,745-US$1,760 million, for 2025. Analysts surveyed by FactSet expect $1.96 billion.
"The fourth quarter of 2024 was the strongest sales quarter in our history ---helping us close out a successful year with robust growth across both new business and add-on sales," said Stephen Holdridge, President and COO of Dayforce. "We saw a healthy mix of enterprise, major-market, and global sales on top of annual gross retention rate of 98% - another company record."
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