Dayforce Inc. posted a 19 per cent increase in its fourth-quarter 2024 recurring revenue to US$347.9 million, part of total revenue of US$465.2 million for the quarter, up 16 per cent year over year. The Minneapolis- and Toronto-based human capital management company also reported a 98 per cent annual gross revenue retention rate.
“Our fourth quarter of 2024 was the strongest sales quarter in our history,” said Stephen Holdridge, president and COO of Dayforce. He said the company saw a “healthy mix of enterprise, major-market, and global sales,” and that Dayforce’s 98 per cent gross retention rate was “another company record.”
Chair and CEO David Ossip said 2024 was marked by “outstanding progress and innovation” as the company unified its brand under Dayforce, maintained its HCM product position, and developed new capabilities. “We are optimistic about 2025,” he said, citing demand from customers aiming to streamline processes and handle compliance challenges.
Fourth-quarter numbers showed Dayforce recurring revenue, excluding float, at US$307.6 million, a 20 per cent year-over-year jump. Operating profit for the quarter was US$28.5 million. Net income stood at US$10.8 million compared to US$45.6 million in the year-ago quarter, while adjusted EBITDA rose to US$129.2 million from US$99.2 million.
For the full year, Dayforce reported US$1.76 billion in total revenue, up 16 per cent year over year, and recurring revenue of US$1.34 billion, a 21 per cent gain. Net cash from operating activities totalled US$281.1 million, up 28 per cent. Free cash flow stood at US$171.5 million, compared to US$105.1 million in 2023.
Jeremy Johnson, Dayforce CFO, said the company plans to keep “operating the business for optimal cash generation while maintaining our pace of innovation and high levels of customer success.” He raised the 2025 adjusted EBITDA guidance by one percentage point, to 32 per cent.
Looking ahead, Dayforce expects first-quarter 2025 total revenue (excluding float) to come in between US$421 million and US$427 million, with float revenue of US$53 million. For the full year, the company projects total revenue (excluding float) between US$1.745 billion and US$1.76 billion, along with float revenue of US$180 million.
Underpinning this outlook is an anticipated adjusted EBITDA margin of 31 to 32 per cent for the first quarter and 32 per cent for the full year, as well as a free cash flow margin of 12 per cent for 2025.
