Ceridian HCM Holding (CDAY)

Jeremy Johnson VP, Finance and IR
David Ossip CEO
Arthur Gitajn CFO
Michael Turrin Deutsche Bank
Mark Murphy JP Morgan
Raimo Lenschow Barclays
Mark Marcon Baird
Anubhav Mehla Jefferies
Walter Pritchard Citi
Scott Berg Needham
Richard Davis Canaccord
Call transcript
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Good afternoon. My name is Chantelle and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Ceridian HCM Holding Inc.

Second Quarter 2019 Conference Call. All lines have been placed on mute to prevent any background noise. there a remarks, session. speakers' the will question-and-answer be After [Operator you. Instructions] Thank

and President you Vice Johnson, Investor of Jeremy conference. Finance Relations, your may begin

Johnson Jeremy

Thank you, evening. and good

Ossip; call CFO, the today, have CEO, On we Arthur David Gitajn. Ceridian’s and

are Listeners based allow events begin, performance, call intentions, beliefs undue about regarding to future any results, filings expectations except This not that Each uncertainties from to set our forth to cause refer risks and the Q&A by that We forward-looking other statements. ability statements may such the deliver results and with is statements. goals future we assumptions made a our and information developments. outlook, disclaimer forward-looking me SEC or forward-looking significant to Before our those forward-looking actual or this you including to performance required risks and forward-looking We revise information assumptions, future include and activities, or these regarding statements may such management's achievements, on call, or levels and subject affect on to These in currently other reasonable statements. underlying be any portion the current in and no available on are place to of of statements. law. light obligation on previous statement undertake certain differ materially could to could update provide as for statements reliance us. plans, to guidance, cautioned factors

on SEC's as Relations database the filed website will Investor and U.S. the earnings financial on EDGAR the have Ceridian on second database with well Form SEDAR been the release available in quarter the XX-Q, statements report and investors.ceridian.com. Canada, quarterly SEC at be the in as related The MD&A and and the

remainder, in dollars a otherwise on are this call U.S. figures conference noted. all discussed As unless

call With to David. the that, I over will turn

David Ossip

earnings quarter our thank call. evening, you everyone, second Thanks, for and Jeremy. Good joining

growing and constant We are Total XX%, momentum second XX% grew a Powerpay, other, XX% on basis. XX%, by a strong, quarter pleased currency results professional revenue, Dayforce recurring constant cloud and basis. with services XXXX. from and XX% the of and XX% year-over-year with the by increased on constant Including Dayforce revenue revenue including remained currency Dayforce on currency by basis.

count. higher the and Moving customers to net XXXX, strong a Dayforce on the customers mix this quarter larger of live trend last increase continues to in major product since see to enterprise the on our continue XXX both from to markets. the and be X,XXX XXXX. live customer taken our with of increase customers continued We and demand compared customers expect of net platform, sized as we year, to XXX quarter, Consistent with a June for first ended quarter of first the we quarter of a XX, second

standpoint, pleased negative gross X.X%, target. margin that are XX.X%. services expanded And services gross the profitability a XX.X% XXX basis improved From we our nearing year-over-year margin points other from negative professional to and cloud breakeven recurring

XX% increase of year, EBITDA XX.X%, increase basis was compared margin of an and million, $XX an to to was compared EBITDA Adjusted year. points last last XXX adjusted

we sales and but on into and highlight development, on will two financials, detail product Arthur have calls, I of areas will earnings more get the briefly prior investment marketing. the discussed

investment our product in second the During quarter, development. we continued

of second software research of expansion. our million and compared increase and an development was product global this cash spend XXXX. revenue, related capitalized X.X% the development or quarter expense, of to investment was portion A development, Our to including in XX% $XX.X of

for year. launch region. Dayforce anticipate payroll product native Early similar end in will are seeing year, in plan next ANZ Dayforce sell expansion Dayforce and the August and rollout launched to region. complete we and UK by UK Zealand native we those countries. the full Ireland native a payroll payroll Ireland of start recently As you know, This in we demand a XXXX the this New We the native payroll, strong with have complete the Australian

in quarter, and invested marketing sales continuation during grow This also to revenue. XX.X% million which We to global $X by segments represents and increased second to the in a our investments of of territories. enterprise approximately growing

bid exhaustive against as to our Canada, the we have procurement result payroll two the X announced of by vendors. future other a the contract a government’s our government supplier us followed a announcement process. of of This and time quarter, signed as enabling government during Canada. we Gate And for successful Also selection, selection business an with HCM

We and system and to well-positioned and to than payroll government's replace XXX,XXX believe employees existing we in to time that on Canada. the the are federal deliver more uniquely after qualified

will expected We is positively XXXX which continue updated the of on to keep and results to progress opportunity, this future years. you impact in

our given vertical our of in and the pursuit opportunity, sector are and in government wealth inside successful opportunities Leveraging sector America, knowledge of the segment. the a North of Canada we public new acquired public enterprise we experience creating

ability And in combined positions to us interface workforce our fifth financial that recorded enterprise retail will verticals, our vertical believe verticalized continued and vertical. public health the with the when of XXXX scenarios quarter the You announced services, segment a be handle user may fourth intuitive we most manufacturing, results sector. creation complex sector with four recall public Dayforce’s we approach hospitality. the and for human The the of we our services, success

beginning saw In see highlighting those from demand to our the traction in want second and wins, few customers, of we minutes strong global to continued a the I markets. quarter, enterprise with we some spend

won for has real seen Company time were and and workforce cost the insights sessions UK-based mobile could in move HCM system plan have chain level The control. of provide employees Dayforce global their deal world. to that and we HR at envision and with high who generated to employees already growth. support coffee payroll a a the the go-live partner a shop management and second using They per a million platform X,XXXX reduction for a year. looking fast from UK, single largest pace a In plan for greater X.X that legacy rapid was needed replace They

end they platform that was to great was and learning system. time, performance, they full management, Australian be advanced document win And continents. be needed rolled The compensation globally. its facilities work Dayforce a management, their out to including company because dashboard process solution management, disparate and a burden will more deploying full recruiting, simplify force end could IT looking five XX,XXX succession planning. company compliance payroll, management Dayforce reducing across than with on team an employees managed Another the They chose improve while

a unit North measure time HCM with the single option single proved a entities, attendance. do to each smaller In was XX,XXX-employee of full to The of exterior full the company legal its with smaller companies. and determine payroll other most rules. while be formed XX,XXX-employee team two we employees effective building two vendors signed this quarter, Dayforce of for suit, Dayforce America, largest The That a result rule X,XXX was Dayforce the move a or from whether a solution of to products. company was a company to and deal on and using recent chose manufacturer of for engine, XX They base with because cross-functional the which unique its payroll needs data the different handling to vendor.

key the for with services the [Technical technology of from ease Difficulty] relative the reach One factors and growth decision company acquisitions. team our continued was

the services a them environment. the financial and New an payroll with all company legacy Dayforce system. our financial the mind XX,XXX counters deal York Canada they U.S, than with with City across time a ERP our based company regulatory orders payroll with chose of UK accuracy. In for service gives an prominent cycle for And highest them closed employees. they visibility and The calculation real segment, processing we which as more spontaneous in-house capability, navigate previews payroll increasingly level complex piece entire Dayforce throughout gives was

enterprise help and the along Dayforce associated current move compliance antiquated beat Midwestern end, In city. with which new modern risks management identified and out vertical, document the employees the with city we a dashboards and auditor benefits this XX,XXX public to ERP had will significant contract our a the sector with in case, technology city's signed large city’s U.S. vendor, In management. system. pay workforce we a and And

sixth I’m announce the that named Finally, Research leader in consecutive for Nucleus year as pleased management workforce matrix. also Dayforce has to their

now turn it greater and to I financial will to guidance our you discuss with results detail. over in Arthur

Arthur Gitajn

good and everyone. David, evening, Thank you,

the minutes investors both I'll currency assess guidance provide and section I'm the in to fluctuations, and we've currency results; and on financial underlying going foreign the release third our XXXX To QX of how excluding and earnings of second earlier to take financial full then, analysis the quarter a few constant business our a is XXXX year. effect talk quarter our filed in results to for help discussion a others management our for performing, of today. XX-Q included Form schedule basis of the about

reconciliation added our earnings to of net income net release. reported a QX addition, adjusted we've in In non-GAAP income

Starting results. million. million to increased cloud by XX%. revenue Dayforce Dayforce, XX.X% constant HCM XXXX or quarter from $XX.X platform, with financial increased On $XXX.X our second a Revenue basis, currency flagship our

value of constant of HR Revenue the market, the up currency to the $XX.X from was business solution and cloud, declined X.X% our decline Canadian the Canadian excluding a dollar, in revenue small On X.X% payroll impact the X.X%. for Powerpay, million. Powerpay basis,

which XX.X% cloud constant revenue $XX.X And Total Cloud constant million. revenue Revenue, and bureau On revenue, increased million. a Dayforce $XX.X total from $XXX.X $XXX.X and both X.X% XX.X%. on includes increased solutions, basis, million, to by our which currency cloud currency or increased or increased revenue by includes Powerpay to million, XX.X%. basis, both a

quarter first Comparing second cloud revenue cloud sequentially. quarter revenue to

and discussed million some to U.S. quarter from TX seasonality was in Of first to $X.X and $X.X Dayforce did the year, As benefited in approximately not in recurring Powerpay WX, tax past, the cloud our the second this revenue. million and in revenue business. we've This we million, revenue about related reoccur quarter. Canada, in million recurring that $X forms X $X.X in in the million there's

as employee income, In tax of to addition, million in float yearend which revenue first bonus timing higher related X.X of higher processing, quarter all was float literally of Dayforce result a we and in recurring from in counts. filings balances reflective the average benefited

a have basis, would revenue million constant results, $X.X impacts the been from been and million currency Excluding first recurring on revenue second up seasonality $X.X quarter have Dayforce cloud quarter up compared second to QX by by quarter. the would

U.S. strengthened exchange quarter Canadian $X.XX, at quarter Our in during And average XXXX June effect dollar the a the although high by million quarter. the basis, just for the the $X.X the guidance cloud exchange in against reducing Even had dollar the second high guidance assumed which dollar, Canadian exceeded revenue currency Canadian $XXX at the Canadian The $X.X on to rate constant the dollar weakened ended $XXX million. end a for under of $X.XX. dollar U.S. of cloud and of to dollar $X.XX. was weaker revenue the range. came with our end range And guidance by of million, our cloud revenue million rate

exceeded to basis. the And adjusted our to and solid million the range million, guidance million $X results. our $XX to million, revenue $XXX of on by by primarily of $X EBITDA $X.X range exceeded due $XXX end high constant Total by high million $XX end revenue million million guidance a

and second XX% growth $XX.X services revenue, migrating to was other and in cloud Cloud the cloud total quarter or customers revenue, million attributable to increase in by XX.X% increase increase in the $X.X recurring in Dayforce. bureau services million XX.X% Of revenue. was a cloud professional driven a revenue

declined expectations. impact our solutions in bureau to Excluding revenue $X.X of Dayforce, was line by or from the which with XX.X%, million, migrations

customer Cloud XX% The accounted total quarter balance in compared of was compared revenue float in XX% second trust $X.XX to the during quarter for last billion $X.XX XXXX, average of billion, approximately in the for the funds to quarter second second year. revenue our of XXXX.

quarter of to average average trust grew balance impact our compared during the the of float of X.XX% yield funds X.X% float yield year-over-year. quarter balance for XXXX. in XXXX, customer The points, basis the an our second fluctuations, XX increase foreign Excluding was on currency the the second average

quarter, income quarter compared a second invested million the customer $XX.X trust second As result, funds in the $XX.X from was year. to last million in

generally sheet XXXX funds funds last fact higher trust business Monday the than day billion reflects business XX, are as June December customer was of The of of XX, balance in day QX trust a value Monday. customer $X And The balance increase balances. was of the XXXX QX the XXXX. $X.X XX, to sheet Friday, value billion that last balances of compared XXXX June of a was the Friday while as

margin our quarter. to second continued during expand the We gross

recurring services cloud only quarter cost recurring revenue And the margin support XX.X%. to our services of million ability services for last increased hosting year of our recurring XX% to and million XX.X%, XX.X% in gross XX.X% While economies from by in customer cloud to live reflecting grew or this $XX.X $X.X to increased customers continue more growth than year cloud on quarter in to the an increase second support from of in also our Dayforce two scale proportion XX%, and years last realize to costs. the second

processes. continued the use and Our XX.X% improvements negative in negative of in due to quarter experience professional gross consultants customers, X.X% automation implementing negative other implementation improved last productivity increased the services year implementation our from margin of on our new the in reflecting second and to

investments earnings $XX.X million quarter and reflect the primarily $XX.X these or increased IPO to X.X% in QX were due development reduced expenses year, and and research in in second million. to last refinancing, Total XX.X% we million discussed previous in incurred XXXX to administrative half million, XXXX. on up we development that our and second expense and our stepped debt general marketing QX by related by initiatives. and was not As management our in and selling, calls, $X.X $XX.X sales Product or results costs to

million expense, $X expenses are or adjusted expenses increased selling, compensation from $X.X share-based and general excluded Excluding XX%. reflecting other IPO-related and marketing administrative that expense of sales and increased million, EBITDA,

of last XX.X%. operating profit an quarter million compared adjusted of that up are million operating realized the in items second second compensation IPO-related other excluded expense, adjusting loss operating quarter and to the profit $XX.X $X.X from After an in We year. was EBITDA, for share-based

XX.X% or XXX adjusted XX.X%. $XX increased approximately million basis to margin increased Adjusted by and from $X.X XX.X% EBITDA million to EBITDA points

share notes was income the the income year, a net diluted net last second quarter net primarily $X.XX the second in diluted in reduced Diluted this per per compared in was the $X.XX profitability. year, quarter income to last second the share and nil, reflecting of last improved year seniors quarter per quarter during redemption from loss adjusted in compared share to this second diluted the year $X.XX interest quarter net of year share per expense, and the second

balance sheet. the Moving to

of the capital primarily $XX.X plans to of As and June And had share-based issuance was XXXX, XXXX. the we and million, cash total annual million support to incentive $XX.X of offset payments, cash the by expenses December of of acquisition increase $XXX.X a XX, compared EBITDA June million in proceeds of cash debt from our million, XX, adjusted XX, interest, $XXX.X stock compensation equivalents plan cash as common was XXXX. expenditures, quarter. prepaid decision The compared reduction partially an taxes, December under and benefits attributable first to increase million XX, XXXX, $X.X in

XXXX expenditures, were for QX $X.X QX the of and was technology $X.X in million, equipment, with $X.X $X.X $XX.X QX software software of capital XXXX. Included capitalized per million million expenditures and in $XX.X $X.X compared increase property Our in and in million million XXXX. development, to million capital million an compared to which

Turning full-year fiscal now quarter to and for outlook XXXX. the our third

exceeded Reserve on million of and $X.X Given by our high lot that guidance high we the a of end adjusted by of actions and timing million, uncertainty lot of federal million, exceeded that by second of full a perform revenue the year the discount around business guidance total guidance to next quarter months. basis, reduce currency $X quarter thought five and gave in range our range of $X the the while rate magnitude second board our end constant But prospective to the there's well, EBITDA consideration raising results. to Federal a continues in

before, ensuing As XX over XXX a in the million estimated we've revenue to months. each basis-point rates is discussed impact float interest have on $XX change

end and would XX relative million to EBITDA result estimated adjusted a basis-point in XX reduction middle the quarter. when revenue example, for and of the So, reduction float of we at full-year in our basis-point guidance reduction last September provided in an another July, assumptions $X

board given our the adjusted in XX for the of enables ranges assuming cuts second rate quarter, XXXX Reserve basis XXXX, year and provided in February X, EBITDA. second half, but to discount the QX cloud overperformance on in total points us So, two our each revenue Federal full reaffirm full-year the overperformance we revenue, for

revenue of to in XX.X% of on basis, basis. an constant we the million, a range Specifically, cloud expect $XXX currency to increase to constant on million XX% be $XXX currency a

million be to a the year-over-year. of XX.X% XX.X%, of Through an of XX.X% increase $XXX on currency $XXX EBITDA the XXXX, $XXX we constant adjusted of in XX.X% over the XX.X% $XXX revenue in cloud an currency constant of $XXX be to expect to basis, to an $XXX increase range and in million million to on $X.X% of basis. range third of Total to quarter million, million, range to a revenue to increase million to be the

As assume the to full-year second grows quarter, digits, half last will the we grow and on the Powerpay if low guidance the call our XX% in a year. on revenue you of the third Dayforce basis the quarter currency constant discussed XX% imply in single

in increase be basis, of constant in on XX.X%, to to XX.X% the year-over-year. quarter, For million, of million the X.X% range to total to of range million, $XX $XXX we the third million increase adjusted $XX a or XX.X% expect to to of and revenue be $XXX EBITDA an an

this to At to Thank the questions. hand back going any I'm operator to time, you.


Bank. Deutsche from first [Operator Michael question with Instructions] Turrin Your comes

is open. line Your

Michael Turrin

recurring XX% constant total Good in was afternoon. currency. great. up Hey, XX%, grew Dayforce Thanks. Dayforce

walk of in the or the to Is at you confidence through just visibility reaccelerate of there? there more some pipeline half color? anything factors expecting add Can in year. the back number you can giving You're you all terms of that for

David Ossip

Yes. you I I appreciate are well. hope the question.

the you actually say the revenue can growth basically assuming Dayforce that Powerpay to on the you of year, growth say the work revenue the remainder XX%. and year, for much call X% do if around back between closed X% you're of out pretty anywhere So, envelope math, that, end of

of Given a expanding that means year, seeing in be in XX% the market, for the talk say and taking we a implementation. do XX% beforehand by XX% our to two we're In we the up that QX. of they QX, guidance at it when accounts quarters the that kicked about XX.X% that have words, get also and the off. We've should we somewhere going discussed first about revenue number other through XX% modeling are currently bottom between and approach already we

go-live those we that. And projected from have number accounts. dates We the up for build

do confidence growth a project incarceration an release growth and just have of clear, be Dayforce year. we the year. So, degree have high numbers the Dayforce of press we of the in of it the remainder into we the put for in And remainder the to revenue

Michael Turrin

set to expansion? can international markets. territories? how in And with live we look know But, We playbook remind forward terms now of go expand to Ireland, early into as are repeatable Dayforce additional you where helpful. you of us in that terms That's new in going is it's those still

David Ossip

now capability in I'll have first. and start with Canada, the U.S., the UK, the Ireland native Australia. We

year. will of the Zealand beginning for next We New have

had in and UK arena. UK the we Ireland, so in press hospitality been that discussed as -- release, of Australian we go Ireland to very a the Australia. with having sell remainder I retail the well, the start wins XX,XXX employee XX,XXX-employee accounts year. of In been in we're see payroll, to both markets. terms we've that We've customers the pleased won organization of in the should hospitality In And about we won and

So, We traction repeatable. in both model we've of seen believe countries. those the great very is

capabilities, the the about and the We the workforce spoken capabilities different localized beforehand, to native native management out on we've product year a capabilities about already takes XX HR us As capabilities. close it into We’ve languages. talent Dayforce already to also build platform. have payroll

a the payroll regular we And continue native basis forward. terms believe footprint so of can going expanding in capability we on


Mark Your JP from next Murphy question with comes Morgan.

Your is open. line

Mark Murphy

aggressively I'm on much, Yes. very where in at And roughly embolden started year investments, you sales investing Thank reflect you QX. and ago. and incrementally David, next results you marketing a those bit curious, greatest congrats believe returns? in strong as back involved seen I XX in more you lines are on months? this have invest to those along the the point, a you

David Ossip

basis that, of that I non-GAAP XX.X% returns for increased QX, Let’s XXX just QX, year, We which in We great expenses. we sales. look terms on in XX.X%; we’ve that basis go very as seen, with last year-over-year. non-GAAP the expense my I and at seen pipeline to if can of spend. of sales was the pleased points are it measure QX would of kind mentioned QX, the marketing say, we've basis. I’ve growth, from we're pipeline a incremental actual we’ve before, QX, strong getting. terms of Again, that’s a see returns We’ve very growth had

in sales, the into been very of translating So, actually pipeline pleased. terms very, that and we’ve taking

You arena. sales inside and will the continued see investment marketing

internal a investments and into in to to more as allocation we’ve discussed take we segment, the sector some out discussed the we we well. spend, support changes services, direct of sellers hospitality, number of in and effectively in the before, beforehand layers Now, that some organization announced enterprise staff healthcare, government our verticals, sales more also different allocation we’ve organization. and well, financial addition retail manufacturing, as where our done increasing investment in sales In made we recently, did

Mark Murphy

your vision taking the a and it is appears you many notice just How on-demand industry payroll innovations. Okay. of pay. I certainly, of of several And learn for side as to sense companies about of prospects activity forward versus want equation follow-up, and your compliance wanted regarding with more perhaps ask overall the are to who the may that today that moving that you business? do their some feasibility David,

David Ossip

see on-demand to We do As strong of inside the give you for the kind features count know, module demand actual don’t application. market. the we

innovation, request, believe an of differentiated When we a do we does are in terms we employee same day that. pay. In

the a do on-demand instead differentiated. calculation some there the that pay employee, we term And the the business and that employee terms loan which money, long So, features leverages I believe and continuous of we that payroll we actually strong have we're across in the in pay not that engine is upside quite building the very alongside is of can what to other we to that do time. that.


next Lenschow Barclays. question Raimo Your comes with from

Your line now is open.

Raimo Lenschow

a I look across at cetera. David, payroll of side, that be your numbers that the examples of used sector, the up pipeline you the we really kind news cases terms as kind bigger -- of kind hence, shouldn't going accounts, flow getting if issues kind terms Is good thinking being it especially, and some et of that of out, cetera. to market. in on you in is like, see where And having few you you are et and kind of Thank of build, that more to of you more be? in element of classic and of you seeing handle should accurate Are the I'm that bigger competitors segment able you.

David Ossip

playing. we're on segments actually we're side sure not the question seeing trends the not first the on your from side, seeing only we're -- I'm that came where positive as payroll in

you major remind we goes XXX at -- our typically market segment to around X,XXX to begins employees. employees Just that about and

basically, an they we little a before more have made have obviously enterprise We employees. X,XXX enterprise segment accounts, towards us. didn't of above joined shift bit starts a because segment enterprise Our

So, upwards they’re go. saying to

a capabilities that I single in X.X%, base, a actual on that would at we about inside global And on any we've the which cash of about up go down industry. bit obviously of designed and was the before. look the about us argue player the built market it terms spoke spend a to before lower product, you In and spoken substantially see product from be R&D come highly to very than basis, which the scalable other onset. great It at we leverage. code I gives you if our

of see still market. as expect are of I an the mentioned, about confident Dayforce We in to the acceleration half year. we latter revenue the And

Raimo Lenschow

yes. sense. Makes Congrats. Perfect,

more talk But, Okay. I’ll about thanks. the yes, competition.

David Ossip

nicely. we’re But, doing speak the quite can’t I I competitors. think, to


Your comes with Mark Baird. next from question Marcon

Your line open. is

Mark Marcon

if your time bit Canada. was just capabilities, what you workforce about with that as well terms could both payroll, that attendance about in and ended and both that, about in initiative planning up I should of vertical, we talk think a how it the little is And government and think terms about we wondering as should because newer? proving of how

David Ossip

let end. success release, press about I We the have governments. the the actual XX,XXX-employee got in had In start municipal quarter. So, spoke we a me at inside that already -- we mean, government

In from terms of different the government number tender, let of answer me a aspects.

the that means to the for -- the task that we are And months. those exceptionally replacement of the employees. the allowed expect work to we have bid is on that Canada start pieces were over out terms, or to we bid First, the in of going -- future. successful that proud assignments we probably have they're are next we XX government What a payroll system bidder we for the of government Phoenix the

our What that players to which player the the government accessibility our large and we enterprise the et well, very That organizations, gives for expands viable evidence addressable in is of market. They means very go successful of a the that market that a we to covered colors. us first, did segment, government capabilities the highly for aspects we the bid security, market. we are the flying a all player cetera. organization came to through technical compliance are perspective, as extensive scalability, were all were of with for and from through had And calculation The comprehensive. evaluation gates to very viable

to a So, partners and for call, everyone who's the do something employees the we're I very because that to of. with the involved all thanks proud are be all it believe And listening big delighted very progress. should of is our we

Mark Marcon

think David? we the TAM of that should vertical about How

David Ossip

North overall from basically look of you at to and employment the expansion growth significant think the I in be business. But American the obviously, it Well, could it of perspective a could global markets. a numbers

I material you of not to this we years. would see do be However, caution for that a expect number to

Mark Marcon

to a sounds number like years it in few best take you're in It are when out. going breed it in. it's Yes. like on really of that modules position proved you a a all But, terms gets of in good sounds

David Ossip

opens and it time up provincial of But projects. states Exactly. also, possibility payroll us participating in actually the and other

proof significant with. technology well, And As many has give very a think big we're and of for integrators, mentioned, it validated I well large market. I us stamp to as of quality as it also which the does the pleased system enterprise our

Mark Marcon

Thank Terrific. you.


Instructions] Your next Credit Brad question Zelnick comes [Operator with from Suisse.

is open. line Your

Unidentified Analyst

my side, going. for business summit in the Brad. to quarter where employee that you mentioned kind excited into future? And you David, Bob is then, gets This Thanks you that is about HCM on taking What flip improve? at makes the Europe, what have engagement glass you the this harder seen question. to trend you want view looking work of a on as recent your for in


questions. Brad your [Technical is for difficulty] line Zelnick, open

Unidentified Analyst

as about going. mentioned seen side, quarter where into recent David, work flip to you harder about the you that And Thanks. to your in then, the have make you seen this excited HCM What that you Bob wants is gets This is at you improve? have that. employee Sorry glass future? the on Europe, what on summit view you Brad. engagement business that trends your in for looking

David Ossip

a Wow, that's quite question.

terms we're how a And for take in increase a numbers XX%. speaking at have you growth that by So, really of customer our perfect flexibility, experience belief satisfaction The customers look that just scores that is much in an better class, I have to we a to of me Dayforce that Ceridian that employees experience. and best we XX%, make about employee foster number environment employee quarter, optimizes And results engagement at about engagement. we NPS. the environment sure in and our seen and approach first seen of have leads our up start obviously by we last increase we’ve business a the engagement, measured if results. evidence currency employee spoken we our using that about in equality as Dayforce constant we’ve creates it as right become years client terms see fairness, business on can the corresponding to of of that product true let over example workplace the And particular and

a seen You’ve by about basis significant EBITDA, up points. improvement in XXX

basis You’ve and seen improvement XXX margin. as you’ve services professional as on a our gross numbers great go by points well the up Dayforce recurring seen

constant for a that making So, we entire employee have workplace we’ll a maintain on team. engagement, sure best our focus


Sachs. Goldman from Merwin Chris from comes question next Your

open. Your line is now

Unidentified Analyst

think -- business, potentially is for you new do for Hi. customer for the growth questions. David, How modules coming adds? taking forward. Powerpay to could the past from Thanks that which on new you’ve This talked in going up you versus come online of mix my about about Kevin moving the are features Chris. about accelerate selling growth additional

David Ossip

believe upsetting that for actual the lot of comes a a modules. So, double-digit base modules low We add to could in business. and of actual ACV the lift new probably the terms Powerpay the it of growth actually back going from

can mentioned we believe, double-digit into do low time. high into over I’ve as we that the Powerpay business aspirationally rate take very and before growth the So, single-digit


from with Anubhav question comes next Your Jefferies. Mehla

Your line open. is

Anubhav Mehla

The I and you should about kind contract but does what first government of there, if the bit are and are steps what that, and like back the specifically a contract, to point? Canadian at going actually just for looking you timelines, when about one, translate like that little how talked know next the they -- into this it

David Ossip

and pubic and multiple or Most has be position expect the functionality with is And inside it year publicly. to year go that or about looking take a is of The for probably and do products systems that pay at they’ve on point the one the replace the lot contract vendors. our a the government project about and conference a to to government which given government. Phoenix through data the that quite is the the The government. of understanding Canadian and half of cleansing spoken the in will that approximately press number will we would the step, certain is the next the just exercises, management of and generation the proceed in the system employees being changed HR challenged government of done actual for a awards government for next kind for of Canada this of to three populations to government a a technologies which XXX,XXX

Anubhav Mehla

And That like are understand down phase what think the balance, grew And X%. to was that how going drivers? saw here? very that should about given trying what your float basically we around helpful. And just that going a follow-up forward, just on I

David Ossip

by The on constant of are about float that basis got balance. Remember float probably the a balances third a you've X%. up currency

a low we're So, be slightly And opposed cyclical nature, terms in of and average a The it lower dollars. to last in of is years. as would somewhat year in float Canadian balance year. high

actually meeting. that included In XXX actual numbers, reduction we we also yield, terms year, about meeting rate at be points, on rate the Fed there XXX a have will the a In reduction in Fed of actual the guidance tomorrow points as with yield second later the our numbers. moment, in next assumed basis in well, And float. basis guidance inside the the have the we


[Operator Walter from comes instructions] next with Citi. Pritchard Your question

open. is line Your

Walter Pritchard

you it the your could I'm Hi, offset line. investments float situation investments float as or float talk the of wondering lower, around as year think to where to thanks. you've maintaining if level your on you of float you revenue. into -- about a relates bottom that helped Arthur, you made and and little do moderating, do some you've revenues think made thinking wondering last or revenue how about revenue moderating the the some investments a happens? And in get as higher I'm that you is

Arthur Gitajn

all, either feature that $XX a taken September. equals the I float based in million. David discount our our aspect of nice just you the business. a can So, one going attractive do have basis-point mentioned, rate is the comments, revenue, on we're And as, float expectation to as for and first forecast you of XX can it's the in an math would And as then revenue core It's we've down basis-point the -- XXX another business. from of say, tomorrow, in reduction I our not mentioned business. But, our

be an Because impact for overperformance as take If we our to able, about in revenue. we're the $X in float of you our the a forecast guidance reduction year, million. QX, those two, for the of result that despite estimate would of the maintain overperformance,

Walter Pritchard

is the I about much forward, investing it -- rates it philosophically obviously are have that how I half? curious can mean, beyond does think second it how think think interest you is, on going an impact just you or about you or about of much that volatile, do how

Arthur Gitajn

will in don't the haven't to We're We're beyond I historically stand you low rates profitably. the we be longer half. likelihood there's expanding continue to how we're low environment. really, growing that with But rate interest down, if We we rather than know benefit. I And up mean, second rates. long grow. greater assume margins, go a interest even continuing to range,


comes with from Needham. question Scott Berg Your next

open. is line Your

Scott Berg

customers -- of just up XX win me product maybe would on briefly deals question think larger some XX these that's is, more guess, over there just to is in success do for I something the to guess, market, your path that focus the innovation I attribute months you you rates? that those larger benefiting or one to with David your last in

David Ossip

as correction, capability allows the the much the Effectively, pieces. the net fact few to pay review is periods, and more during the payee data payroll we much well, that calculation a population higher The resonates employee any sizes which to the people necessary and earnings are increase. compliant information payroll. more gives continue There continuous calculate them which access time active to tremendously make

product. a of with strength start we So,

trained is changed focusing and strategy in in And to and that much second messaging. continued number approach convey developed we delivers The that that the quantified our organizations. of particular ago, very the we our the domain the different enterprise appropriate on We've are months our marketing specific in doing more the deep where making be a by done very verticals, of for organization identified joining XX instrumental each on product those value where expertise. with inside we And about And we Minister would brought sector, workings recent verticals. a people go-to-market be industry. for each the government he'll Lee with deep segment, convey that correctly Canada, we've material industry. started particular bringing we inside piece that that where sales more of in we of the the of chief obviously believe now the that we of Innovation in who very senior bringing staff on most government we one -- And different with about the to verticals, has sure value knowledge that people board, domain disciplined that


Your Canaccord. comes Richard next question Davis with from

open. line Your is

Richard Davis


time kind and of more about this that around employees and demarcation should more and obviously your should something are Because of what's engaged, in development expanding of partner, or well-trained is e-learning terms over something field, something think things? Is just this you In far is is you training do kind core you too the kind of that are that expertise skilled develop? between valuable. think the sticking about kind product, called how you HCM, and how of those

to Thanks. of just where think I'm and where trying line So, it blurs. about that kind blurs doesn't

David Ossip

that widest we I HCM employee very Recruiting you're to onboarding. very believe have aware the expand starting in XXXX, leads capabilities, in of started into capabilities. to on I the feature talent the platform rich set think, have recruiting. terms probably we market we Today, successful product four

delivery management do year, compensation management. area for and performance see an be Last in the that we would into. expand as we time, have customers to that the management, we content learning learning launched We actual Related can management. strong

Richard Davis

I able some HCM just of might with kind assume those the to Mobile, a to native learning of answer wanted quick is the Thanks. you’re I firms get go but one few follow-up, functionality. yes, check. I then And mobile of modules?

David Ossip


or Apple you'll mobile you go If app the the the Store, Android now that's to Dayforce learning available. see

that or the as they're don't through We often separate subways fact mobile because like the areas have content people in when connectivity. have a it to that app go of

we our native We the data -- particular X the for there's last app. -- from billion those saw exceeded on platform mobile think just over store think it we’ve the I is those we believe use now way, quarter. So, By last transactions a I speaking local apps. that on mobile -- over mobile

very, apps mobile these Apple ratings product around believe very strong the if on Store, Store, which Android you constantly. ratings are are So, at are our I as our well. look X.X, And used the


are at today's this conference time. concludes call. This no There further questions

disconnect. now may You