Dayforce Inc Reports 16% Revenue Increase in Q4 2024

By Tamara Parker • Wednesday, February 05 15:20 • Permanent Link

Dayforce, Inc. has reported its financial results for the fourth quarter and fiscal year ended December 31, 2024. In the fourth quarter of 2024, the company's total revenue stood at $465.2 million, marking a 16% increase year-over-year. Dayforce's recurring revenue for the same period was $347.9 million, reflecting a 19% increase year-over-year.

For the full year 2024, Dayforce reported total revenue of $1,760.0 million, up 16.3% year-over-year, while the recurring revenue was $1,339.9 million, showing a 20.6% increase year-over-year.

The company's net cash provided by operating activities for the full year 2024 was $281.1 million, up 28% from the previous year. The annual Dayforce gross revenue retention rate for 2024 was 98.0%, compared to 97.1% in the previous year.

Dayforce's adjusted EBITDA for the fourth quarter of 2024 was $129.2 million, up from $99.2 million in the same period the previous year. The adjusted EBITDA margin also increased to 27.8% from 24.8%, marking a 3.0 percentage point increase. For the full year 2024, the adjusted EBITDA was $501.5 million, compared to $410.2 million in the previous year, with an adjusted EBITDA margin of 28.5%, up from 27.1%.

The company reported a net income of $18.1 million for the full year 2024, compared to $54.8 million in the previous year. However, the adjusted net income for the same period was $315.8 million, up from $238.7 million in the previous year.

Dayforce's financial highlights also include an increase in the number of global employees live on the platform, which rose to 7.62 million, up 11.4% from the previous year. Additionally, the number of customers live on the Dayforce platform increased to 6,876, reflecting a 7.6% year-over-year growth.

Looking ahead, Dayforce issued guidance for the full year and first quarter of 2025. The company expects total revenue, excluding float, to be in the range of $1,745 million to $1,760 million for the full year 2025, representing an increase of approximately 11.9% to 12.8% on a GAAP basis. The adjusted EBITDA margin for the same period is expected to be 32%.

These figures indicate a strong performance for Dayforce, with notable increases in recurring revenue, adjusted EBITDA, and customer base, setting the stage for continued growth and success in the coming year. The market has reacted to these announcements by moving the company's shares -6.8% to a price of $66.86. If you want to know more, read the company's complete 8-K report here.

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