Dayforce Inc. Kicks Off 2025 with Strong Q4 Performance
Dayforce Inc., a leading provider of payroll and human resources services, has made a promising start to 2025, with CEO David Ossip proudly announcing that Q4 sales exceeded expectations. The company’s robust pipeline and historical sales cycles are driving its ambitious target of 15% revenue growth for the year.
However, the company’s stock price took a hit on Wednesday, falling by over 6% as investors reacted to Dayforce’s forecast of first-quarter revenue below estimates. This decline can be attributed to waning demand for its payroll and human resources services, a trend that is expected to continue in the short term.
Despite this setback, Dayforce’s financial results for Q4 and FY 2024 paint a more optimistic picture. The company’s recurring revenue grew a remarkable 19% in Q4, a testament to its loyal customer base and the value it continues to deliver. Moreover, Dayforce’s adjusted EBITDA margin expanded, indicating a more efficient use of resources and a stronger bottom line.
The company’s financial performance for Q4 and FY 2024 was marked by a 16% increase in total revenue and a 28% increase in net cash provided by operating activities. These figures demonstrate Dayforce’s ability to drive growth and improve its financial health, even in a challenging market environment.
Key Highlights:
- Q4 sales exceeded expectations, driven by a robust pipeline and historical sales cycles
- 15% revenue growth target for 2025
- Recurring revenue grew 19% in Q4
- Adjusted EBITDA margin expanded
- 16% increase in total revenue for Q4 and FY 2024
- 28% increase in net cash provided by operating activities for Q4 and FY 2024