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Ceridian HCM Holding (CDAY)

Participants
Jeremy Johnson Head-FP&A and Investor Relations
David Ossip Chairman and Chief Executive Officer
Noémie Heuland Executive Vice-President, Chief Financial Officer
Mark Marcon Baird
Siti Panigrahi Mizuho
Samad Samana Jefferies
Michael Turrin Wells Fargo
Dan Jester Citi
Bryan Bergin Cowen
Mark Murphy JPM
Arvind Ramnani Piper Sandler
Josh Reilly Needham
Yao Chew Credit Suisse
Kevin Kumar Goldman Sachs
Brad Clark BMO
Matt Pfau William Blair
Chris Silvestre Veritas
Stephanie Price CIBC
Call transcript
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Jeremy Johnson

Greetings. My name is Jeremy Johnson, Head of FP&A and Investor Relations at Ceridian. I'd like to welcome everyone to the Ceridian Fourth Quarter, 2020 Earnings Call. All participants are in listen-only mode and a question-and-answer session will follow the formal remarks.

As a reminder, this conference is being recorded.

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

the light statements David. in David SEC's intentions, With or letter, forward-looking events on release, call remarks, call hand database guidance, that, or database the such well EDGAR as regarding you assumptions required in that deliver about update on turn Listeners subject the law. to will you could beliefs such in I any the Before to furnished to information achievements, We future information forward-looking performance made and and currently The investors.ceridian.com. SEDAR to differ have of revise available to affect ability us. are for that or been be to filed may forward-looking filings call, developments. statements and assumptions SEC reasonable outlook, a or activities, previous no as this and as obligation and our stockholder could except undertake call the goals relations our I current on quarter earnings on allow management's our factors forward-looking Ceridian statements website is the expectations underlying and to for of these Canada, be mute. investor are future risks other significant or with future are and with to and over in results the provide statements. place materially available certain on disclaimer SEC may levels to This forward-looking fourth on statements. We by uncertainties U.S. any statement at the regarding and based actual other statements. plans, include risks to undue These statements statements. results, from refer me not cause brief forth some cautioned those performance, reliance on Each set will David the

David Ossip

hope Jeremy. healthy Thanks, staying for you I safe. everyone is And earnings call. everyone. evening and Good thank joining our

get into our stockholder a to spend minutes important we Before want on Q&A, points some I from letter. few

we gross while our the EBITDA Dayforce investments We excluding our on to by quarter. basis range. accelerating quarter recurring were of sales in pace by points float’s Also, First, despite high-end strong elevated. delivered more revenue XXX XXX by float results, guidance above and revenue COVID-XX revenue which XX%, guidance a had points. expanded and we headwinds remaining than technology delivered our grew XX.X% recurring adjusted product revenue margin of the and basis marketing. and increased Cloud fourth excluding

instead the January did impact on sales December. side, in wave the enterprise from of of opportunities, elongated large the which COVID-XX an closed sales see cycles Second, in several, for we second form of

expectations, below our While in fourth was year, together factored performance in when sales of quarter with which quarter were line last the sales strongest January’s transactions, was closing previous history. those with

will return by is XXXX, revenue we recurring revenue to sales excluding rates, pre-COVID-XX above of Our growth levels the Dayforce our believe second strong. XX%. pipeline very And float half

And go in Third, we continues the strategy. very to well. Dayforce Wallet Wallet remain confident

in to be about XXX the to XXX continued than rates More using Wallet. continued have traction total. We sales And signed are in new strong customers have see over on up XX%. adoption. Attach

broader a the businesses. group it reduction proving increase customers’ rates, in in on customers. is thesis to our positive can our Wallet an the a data of X% addition, In from have recruiting a customers time compared X% are seeing impact to as that fill open takes close Wallet early position adopters our

and creating Wallet. among their quantifiable validate employees. employees of continue the our value lower strengthen to experienced These customers XX% proposition Wallet, voluntary customers and metrics Wallet turnover using the Additionally, the value will for

very Finally, we the excited of acquisition about are Ascender.

payroll over the cross and million X.X us X.X will the fastest customers Dayforce. employees provides provides growing APJ. across APJ, in million more sell a and X,XXX regions Combined, dominant serve Ascender contender of we positions than region. opportunity than X,XXX as This one more serving employees customers for for in the significant

provide We acquisition I'd it that the second the quarter and to for call open in the back expect close up to announcement the of acquisition to clarity at Thank hand Jeremy of with our questions. to we'll time. greater implications you. like

Jeremy Johnson

David. Thanks

I'll mute portion you re your ask Q&A we And the question that name. and ask through that go your of call, point, unmute line your at and announce line. we As then please this your

one that to your you also ask please follow-up. time limit and We one question

First right, Mark Mark question is please question The All We'll are of Mark from ahead. going Mark move the line from doesn't Mark, Baird. you to Murphy, on. go next to on? Morgan. of comes Mark – we're go you go Marcon ahead. seem J.P. please

Mark Marcon

the about of are – the Hi, we regards should quarter end think up that? and spilled wondering little fell to what How into to a first you quarter talk the elevated going this in anticipate impact everybody. into over January? what I'm And being if numbers sales sales we bit what the with about was more that should can quarter? because

David Ossip

early less & of customers to to just back to handful is say were that Mark opposed the December. Yes, reluctant accounts it Cs. I'd as executives call large late in a January, very What do the that was closed Ts

into final contracts in So, and stages just of spilled cases, for blackline final over we're signatures they waiting all normally the January. in

when go revenue minimal because obviously the customers In it's terms of know, recognize typically you as live. we whole, on impact, revenue the

had January, December We very from pipeline the of strong. strong spillover we're and the actual given still quarter. January the obviously remains terms a optimistic In about

Mark Marcon

about you this, the enterprises some that that of little are that unfolds HCM year? from number pipeline previously. over think even you extent Are really, And bit the integrators greater the an can looking you they greater course how digitizing their talk and of at hearing that chatter a processes Great. do there's than seeing we're to some, a saying systems large were

David Ossip

question XX an very moving over that to Remember It's interesting we've space the into months. enterprise up ask. been large last

there If large to are more it's there space. differentiate. more hard us So, being or in just enterprise opportunities out it's the relevant if

Mark Marcon

That along you or you say expected being said, lines? what opportunities to those anything how many you more have seeing are just David, can relative

David Ossip

Mark, lot we said, hard much processes, year. that contender. more digitizing to just obviously HR Well, looking see the particular leadership enterprise but, more Gartner for at opportunities. it's there we really, large makes again, Obviously, data there. guess, a know, differentiate, you large don’t enterprises had it's profit more which their points we or as that are obviously I as all I relevant were space us included are And We last in a in deals well. of many quadrant, more

and of those year-over-year, component. a to well as strengthened has operating global larger have global most opportunities Our

we from it seeing more opportunities. more being us enterprise So, deals. are in I is market just or included large you But tell opportunities if can't anymore

Mark Marcon

fair. That's you. Thank

Jeremy Johnson

question next comes The Panigrahi at ahead. Siti from go Mizuho. please Siti,

Siti Panigrahi

my Yes, thanks question. taking for

the know half Just the QX in revenue Dayforce get recurring for guidance terms didn't of full you I second XX%. guidance XX% and

XXXX? that base? guidance, of versus your in in level So, sales that do terms David, convertibles install can what's your of unemployment within unemployment And new these how much rate stance in

David Ossip

buying forms, those about add-ons two of And new add-ons Well, from XX% normally the sales our their additional modules. base. populations, either or take is global to from employees

acquisition market. obviously the growth of comes of the majority new customers in from So, our

sales a remember given system that the of the starting would growth that to said we In XXXX, rate terms in recovery recovery see second in of of quarter. last QX strong last it’s we year. We we expect saw about of very what the half said

Siti Panigrahi

international international opportunity. about XX countries, Okay. talked And expanding and the then mentioned now Last aggressive pretty on you that like year follow-up XX expansion. wanted countries, into seems to we about

sort the have should international and you we contribution now what of revenue forward? about contribution how revenue So, going think

David Ossip

of So, last The market an see enterprise global many as acquisition we in we opportunities. positive us more very opportunities. year up impact move that did space, obviously a with we had into helping Excelity global

if organizations APJ. populations So, win with that in especially you rates, we lift a, did had like, in see

continued But we over strengthen out Germany, also have region regard capabilities Our major upcoming Ascender in last that us the will well acquisition tremendously done as obviously year. of building has the well. UKI into

very global optimistic we on the So, side. remain

Siti Panigrahi

Thank you, David.

Jeremy Johnson

Samad from ahead. Samana, please Samad comes question Next go Jefferies.

Samad Samana

Thanks evening. question. my taking good for Hi,

David, appreciate the in remarks helpful, shareholder very always thoughtful much always, That's So, letter. especially all as when the uncertainty. we there's this

in But, So, remarks talked returning pre-COVID maybe to for growth levels. the that. you you thank about

float on will that And in further get so, level you that level? I of I pin the don't ex and to trying little just for before mean you hit? that as wanted to that us a in triangulate COVID that. saw growth Does back of maybe type you recurring XQ we Dayforce saying return that achievable of XXXX think down that not when of I'm any think plus happens. XX% that a bit but to know, XX% is on is the timing XXXX that

David Ossip

I the don’t to given There's still of Samad out say what bit of outside a a number guidance, So want I comfortable impacts that number with. uncertainty guidance we've feel our will a is but quite we of put around COVID.

of $X I had recovery QX terms look if employment we at levels. example, see we about in to For million expected a that passed, just

about $X.X So, saw our only from In million a – higher the $X impact recovery. $X.X revenue million. by million employment we increasing about reality,

see the aggressive the we the depends half kind recovery the more of so, at goes into of be then on think all rates the growth And we with it looking second in of I really as what we in bit If half little on a employment can year. the XXXX. second levels solidify, move

Samad Samana

data to to data three the last uplift just that has And looked Great. Clearly added we curious the international [ph]. any onto were acquisitions at could like least maybe us you like. what And Excelity have or Siti's can as Dayforce of my the how then over products for I'd years, think about or long-term customers if I'm give looks follow-up, question anecdotal that opportunity using start with points couple add so the side. to that Rytech on on around the

dollars like uplifter Dayforce were their base? products before what's they your sales when into sold look you've spending that if revenue in or So, x uplift

David Ossip

cross-sell with as this to been far to on a I’ve Rytech significant uplift [ph] we and upsells the opportunity. number the But do obviously expect in Excelity.

size. for look That not payroll. enterprise actually So, Dayforce. to down and nice additional effectively migrate opportunity Ascender And and quite at obviously the significant it customers, Ascender of most us provides if them opportunity X,XXX to a are break does I

add components be talent So, to on able all workforce the of and we management as well. various should

capital opportunity we APJ the paid, leader dominant the So, believe management. about X.X the excited that combine employees the million about is growing which XXXX in point with human other Excelity customers, we're about One you when about as and Ascender us quite region Ascender is over we're positions there. at for fastest region,

and So point, a optimism. very again, good data reason another for

Samad Samana

I to really questions you I'll Thank appreciate my it and you again. turn taking Great. over analyst. next the

Jeremy Johnson

Thanks.

Michael, line Our is come from Turrin. next question the of going ahead. go please to Michael

Michael Turrin

ahead Good there. us, Thanks Last recalibrating the pieces see guiding the can like XX% before modeling, and everyone. towards acceleration QX Go target It you we're questions into half. to quarter afternoon. Hey like looks looks the to the a going you shape that Good for were everyone. I all slight now but appreciate QX. we just just up think, of second were maybe day for of on, QX back there. what back implies moving came stepdown a maybe actually touch slight outlook the in in where move a

you there some of that touch on can driving are second letter. there's And maybe mentioned just the help enterprise setting trajectory? level? know in David some also with if and level good have just the how But that details impacts else anything change I you into visibility in target half much So,

David Ossip

going we with very into obviously So, are the visibility. good year

that of you employment expected, QX And of $X on levels million in another to would probably terms level about the improved we the have right, we seen revenue million are In QX. Dayforce outperformed side. $X have you had if

we at However, the the QX employment levels when we call. expected had levels did haven't that recovered to

to else that take we QX Noémie at and would so, look add Jeremy, into that? we you account anything guidance. when And that the

Noémie Heuland

No, I good think a that's summary.

from And would the beyond to that, the that expected side on point shifted of I think, seen David is revenue think that it think implementation, the all. the I have services a out pretty QX. from some really of pace may I thing we've steady of that But QX. covered in other I QX professional go-live

Michael Turrin

a signed last just the moving If numbers color. Wallet up XXX, squeeze helpful now on up, That's I from in it's the can quarter. pretty XXX up. using a big, quick customers and follow-up That's step sequential keep XXX

those around are on turnover are seem certainly help like Some that retention laid you could metrics in something this traction? with It helping that the things stats with that out, Wallet? of environment and of and would some adoption like, those adoption

David Ossip

things on higher. the actual few slightly A numbers are Wallet

customers on there. actually signed XXX XXX have I up Wallet think it's about that live and are customers

we’re obviously you that Dayforce we And point as still that to So as it the the so only turnover it people, not takes is Wallet selling yes, second lot right, on to and Wallet, be of expect a talent in and economy if for across the the focus probability well. time Wallet takes adoption the helps the also users, like it that fact but moving Obviously actually of acquisition. of that recovery, probably obviously find closing, improves seeing rapid, significantly will reduces time for starting the big we that to a see Wallet. actually actual the year, fact the half voluntary

Michael Turrin

Thank you. sense. Makes

Jeremy Johnson

question ahead. of line Dan Jester. go please comes next from Dan, the The

Dan Jester

Thanks. Great. Good everyone. afternoon,

couple that you with something sticking authorities that have to and and seen impact and we've on how hearing you limit some potentially regulations additional out are rolling wage some stories access from think fees. Wallet, any looking local So, Wallet state that does Is here? a about earned around about the of put of

David Ossip

don’t that's markets. appreciate I how fees. differentiate We employees Dan question, charge actually in Well, but the the any we

any holder. in the month fees So, usage certain wallet. We if or that. our you a to compare they of We third-party per don't don't active for some charge charge direct wallet wallets holder of do the wallets card per amount markets,

fees fees actual wallets So, in, there's effectively spend to either. to no no load on there's money the

People And the pay so, cases, is no they as as monthly we a wages earn had sense. that makes their longer longer belief period, actually is expected to access that. bi-weekly, And of our have in in narrated any of term which even it. weekly, construct should earned some

Dan Jester

you Thank or about Great. comments is in lower, and the to around just that? you. higher offset float, then investments think can the the excluding step-up you. go and and that do to turning could XXXX puts of sort the they XXXX, of revenue going between margins sort maybe fact would And Thank to takes float margins us be help the investments

David Ossip

cloud. a our metric from revenue we look So, profit at perspective, is recurring margin most on gross the on

see ex-float, would basis We XXX that points XXXX. basis to As you that grow by went continue metric up XXX into know, QX. or points in expect to

from correct in XXXX. if float side to about headwinds probably headwind me and correct QX, XXXX, to a EBITDA believe million. of we we about another compared again terms with that When $X.X of headwinds. impact million do alone look I'm margins, look about or QX, of to levels, we $X.X of Noémie, had compared we look go the In I $X have do at it's million just we it's year the prior employees If wrong, relative employment while at it if at the Jeremy as employment I me QX QX and

Noémie Heuland

Yes.

David Ossip

float actually think, in float go total about a of we And of from QX million at perspective, a I least perspective $X headwind. from a

$X Dayforce If it's respectively. you Cloudflare, and divide it million $X and between up about million

we obviously QX, even get QX a are a normalized start more Now years. to COVID QX, as into basis, little on operating bit it because into we becomes

Noémie Heuland

to And sales haven't as that in go our marketing the And of some making, investing yet David also we're support the add of tackled. in plan as after lot think, Yes. product customers there's globally, margins in looking customers. to to earlier customers I that and beyond definitely we're XXXX, those we on opportunities massive markets. investments capabilities well could color And and with we're as I investing maybe a the if we're mentioned

I So, really important. that's think

we’re invest We’re making think to on the conscious side, cautiously the But decisions recurrent get managing Dayforce to G&A future, to in where the scale. because fuel growth of I we're really that's also very betting.

improvements we towards and to the opportunities expansion that's both of in the that addressing see you'll important at looking product think, everyone and then back the have. for on to that's understand. XXXX think, critical And the really capabilities, But focus of of global XXXX. combination I I some So, more the the growth

Dan Jester

appreciate luck everyone. all Great, the of Best color.

David Ossip

you, you. Thank Dan. Thank

Operator

going Bryan go ahead. is come at question to Next please Bryan, Bergin Cowen. from

Bryan Bergin

Wanted guys. this that with like also, and a about for with you'll it Thanks to strategy layer it transactions. migrate Good attractive Dayforce the technology the expertise other David, right. the Ascender, one can And to clients evening. All far versus start seems targeted more it's field larger talk recent than your so into? as over whether to really you as in-country the was

a a you to So, I'm be or at transactions? bigger for one-off if is is this going curious the that are market this if signal

David Ossip

Let me start with the why Ascender.

X,XXX Australia look base the at Australia. and is two majority I products. if So, In employee the in actually have actually they customer Ascender base,

our of is products us different compared of verticals government, us historically. is Ascender domain to for is That the the market. because have dated in an significantly payroll, in people our what having technology who around comes for help help, will to which we've implement One around knowledge team just which growth when largely noted, in as They in space, and can ANZ it strong and you exceptionally than is spoken Dayforce. education products. stack constraints are the as one about for The no plan always great support new

time, movement workforce upsell and have management, like. attendance, it that, so, a time a we the opportunity of to expect and acquisition, ability And do talent the engagement, would And also we Dayforce. to towards over comp, provides period performance as on them

tremendous ability. sell cross So

with well. dominant I mentioned look APJ of become about I The systems is town. APJ other region. the we global the the combine the point as When when probably fastest at it’s at in management the you XX% growing we look is if region human capital player Excelity, probably and about it, And as Ascender do regions

So, the if of a accounts it actual you not in presence region. like, those significant, global in APJ seen inside APJ, us where accounts only impact the Excelity significant acquisition gives the had win, us already helping in we’ve other but region. companies And headcount

very, So, fits very it nicely.

country the the that can like Dayforce to people, upsell, if opportunity we'll find to that local continue provide move to to you of where in to and the for with and look terms inside customers great opportunities In knowledge future, get actual marketplace. we

So, we market well with it's very year about a the over what what communicated Ascender, say much to I in-line would ago.

Bryan Bergin

then Okay. around you in the Can comment to point what base expect future, benefits Dayforce here the of? to fiscal And the a here was it in migration bureau. you bureau the follow-up bureau on what's XXXX? convertible does And be potentially what out that at in left

David Ossip

XXXX numbers and the sorry, X.X year. X.X, for X.X X.X, The we're X.X – across

to As payroll. we see the would anything about we're And go into lower the actual Jeremy, the start Noémie end that or almost next revenue to it to year, as what at add to to as XXXX, end. color remains numbers coming there effectively should obviously bureau you by we're end be of relates going the no year? of

Noémie Heuland

I'm on that, David. No, not

really you knowledge come a if going building with as in now deep think operating North I add serve around robust a it American, with we now we've on that to us our been the the company global customer. mean, centered Ascender, it's like the is partners, strong why and are model region that, on well relevant Excelity, to would and I APJ have make start so add Canadian far very just customers I’ll And Board globally. locally you But of all. build, to we're the point that's on our leadership I to customers ecosystem we covered trying serving acquisition right other for

in also So, I critical that we're regard us real think a as building that's global company. for very

that I as just well. So point wanted to [Indiscernible] highlight

Bryan Bergin

you. Thank

Jeremy Johnson

Thanks, Bryan.

question Please comes – line of from JPM. Next Murphy, the Mark ahead. Mark go

Mark Murphy

your at wave to David, bookings maybe you January? in transactions the of Thank might you see period more help comment or Nice those Are Thank think total vaccines suspicion. infections think understandable. the there second with – you is Jeremy. would about looking that based kinds were that I little that certainly your rolling one-off? many of me. going out are Can the the trying lower. past importantly you bearing you dollar from and how you back convey that trending on way of value with you, us to understand the in you. commentary, of the but sound be benefit a a that disruptions impact Do closed And COVID where just for the kind to

David Ossip

Mark, urgency we that end year, you like it's I started where say the from at see any year same to customer the didn't get on is at deck we of the last we by contract to would the typically teams. of fatigue What that have if I all signed. mean hands customer the have end that

lines beforehand. even with we So though seen effort actual customers getting the more were was a than black we've at It signature. bit little that final

three So a the of or moved that transactions into over shortly we're customers, after large talking handful year January. close, the four new transactions those about

of to COVID, had terms $X In recovery that million about we only million improve recovery. QX. expected the would mentioned, didn't we terms $X.X thought QX. headwinds we saw $X in employment between see had And numbers we of in of In reality, in million that I as the

been successful you that the seen Canada are in by as QX, U.S. the in the COVID it the through like, employment going we is we in is though the do would still terms should Canada because little in vaccine U.S. as rollout the behind the bit already counts. looks to a in I we've and say be like that think seem half published if believe it up. seeing hasn't second numbers numbers being so year, the And in of employment be We I U.S., of impact of

Mark Murphy

If quick can I in a sneak Okay. follow-up.

how quite per to possible your Is growth Dayforce revenue that kind absorbing of XXXX. brought to that It's versus impressive of be larger customer on just of average more peer if much you – it is the is base terms unpack in above during that are lifting that listed up the think how customers I technologies? that group. in you've well the a has of X.X% existing much here that your

David Ossip

If year, enterprise it XX% and markets ratios the is at of the in across tremendous was of XX% the customer it What about base. at the the side. we I are major in about seeing end still kind look our mid though upsell

Now, if ago, the I customer. back a about go we're additional year to we speaking spoke typically we about adding that when modules were add-ons,

Now, we're also seeing the impact of global.

So last year, global the that’s probably I say populations add-ons actually were would Dayforce. we the look on of that were about at XX%. is If to QX, impact I employee XX%. And at the adding we're

in The remember the of in the I the that that off terms I've wouldn't and average the float in look headwinds. we up about But obviously employment into terms I at the had we of mentioned growth that taking believe that other is are if headwinds size have typically actual X%, counts, employment QX. point account,

retention corrected more from on very, it Other at rate we I and than our actually already those in think I have remained think numbers. even COVID more at do you even strong impressive around our if about year, metrics would So net significant. And been retention XX% that, look XXX%, cloud. remained rate actually if very I a think are

Mark Murphy

very you Thank much. Excellent.

Jeremy Johnson

line of the comes ahead. question from Sandler. Ramnani from Piper Arvind, Arvind go please Next

Arvind Ramnani

a to taking Hi. go really question. Thanks of digital my wanted Yes, wallet. for I back to kind

demand on have it versus your continues on like as secure digital kind metrics to much you has kind high early wallet the provided the in next looking the where if usage, actual at a you'll at this conversations research fairly years will is are and for And to helping of driver become the color pay a the reception solution. customer a talk Can on of my is two win good You suggested sort that Ceridian of stages it. choose competitor, some of how in really also, mainstream. even terms have grow compelling reason rates? And not – customer terms of your a of about some and

David Ossip

the as It module we rate used XX% definitely I that is impact the same to methodology wallet having KPI the win through an KPIs does I actual metrics now onset, impact remember customers. use new of can how we've very have an our we from attachment seen of the through build is actual we've we translate also module that use Dayforce about an of for that the on benefit or look when and dollar rate improvement which customer into the customer. at, a are on the The – in what the if – mentioned, money

talent and make alone. easy. I we're And reduction acquisition in get metrics on retention group population side. and numbers, our at Maybe test, look I just at and when the to so we the wallet not the versus math look seeing a voluntary we're you actually if the looking run almost have And the obviously that users to wallet we customers, turnover. that actual retention general X,XXX mean, big you on by customers that get side just able benefit do the at, we and the side a of so XX% we now, a through you have

by XX% reducing $XX,XXX. their that impact those is they that person we people. of XX% that save a lose XXX means people XX%, people attrition per by replacing they that them year. at of okay, makes that probably cost each say, a voluntary salary. You a have of typically XX can If company. a The can would We're employees, we rates at about looking If that a a typically X,XXX means

customer. That's person, a just that in about of So from times $XX,XXX big that's use XX XXX,XXX particular per a people right then. obviously the the wallet And number.

again, whole premise. beginning you're So to back ties the see that And it to ROI.

to have customers. We for quantifiable value our create

the the with side use well, wallet, their funds we employee because an wallet, extend to to that continually. employee Now they actually as access begins get onto when

balance. as if So credit card middle comes your to card, pay credit full pay in very that this doing payday I'd at pay with compare to it have payment, you as that rule allows one we have of paying the to loan actually of between expensive have And paycheck, and to someone that bill the paycheck fees continuous inside to expensive you competitor really if us, the one is we a or due engine. to a opposed in those the also wallet you borrowing. we minimum who employee allows engine your the or to going at off the avoid that periods, with month types when are of you any remember interest system we XX% the leverages, non-bank other way of Dayforce, with types we other built markets look of

We have direct payroll. or change the So usage we end the actually that pay any don't and the don't them period, or the They net we onto wallet their net still charge the how Dayforce the the taxes load fees throughout it, the the go that's earnings. wallet. payroll much allows anything they your deductions made the actual fund to fund use money We of and employee wallet, all The off of of way wallet the the to spend. do added wallet to spend cycle. the the see charge actual at the to of they've calculate employee actual for don't continually customer,

in differentiation created a tremendous anyone our customer the of as we've to big – base. else that So as well again, employees And value market. the for for relative is customers, our

Arvind Ramnani

success. detailed I incredible appreciate And metrics. Yes, absolutely. providing that an That's the

look wallet just point of product high at or some a when free they , philosophically in be like going essentially usage, or always brought some to the will fees that there you at changing… are be may Given ROI,

David Ossip

a call would let’s actually usage for an the ESG, we wallet. a of of the – fundamentally, challenge charging of employees think kind just I have

would go life I trying think to work afford to what those can't our Remember were don't of a we is think brand especially employees counter to promise the those who to usage employees, And wallet. that do. make pay, I charging better.

ethically I think actually that is wrong.

make interchange a wallets nice the we it the to we through here intent allows least way is funds use profit that to design in the us America of So the from the benefit can wallet. that the and sure wallet at in the North of that make

Arvind Ramnani

Thank really you. I appreciate Yes, it. Great.

Jeremy Johnson

Thanks Arvind.

Needham. was next Berg in comes Reilly Josh question for Scott Our from at

Josh Reilly

you. Thank

So I surging any modules the pandemic are the in upselling during complementary platform several Are might points are usage with or cross trends pre-pandemic process the at using have was sales period? you quarters you than data inactivity curious, that better of of here? that seeing guys then the to sell be what that now there on modules? any data And you

David Ossip

of were add-ons, and focus I in benefits the lift hub we intelligence in seen So out. In grew base I've around of the XXXX, XXXX. was averaged terms the we the And to type quantifiable key learning for on to monthly in the of add as going of again, the of management, engagement the that we very, ROI XXXX, performance into typically If sales look see things customers. surveys. that to we've see are I global we're about that values coming basis we'll see compensation, part last what optimistic to that module the at plus add-ons. And of to on continue the our management, did in XX% released probably a year, add the employee very typically XX% and well were additional which about terms end hub we're to that obviously the add-on that XXXX. very as mentioned saw from strong be believe benefit

general yes, for obviously trend a across we our did more digitization customer usage was and the And so Josh, more modules base. across see it

Josh Reilly

marketing been then given activity the follow Okay, here, but we think for and and meaningful targeting we're about one up, Obviously, XXXX? sales growing be pretty there in investments international Canada great. has a here else native there's what that APJ, regions here? an on should should we opportunity investments in And M&A focused Thanks. is where be payroll. opportunity as to How aware obviously of of just outside going anything we

David Ossip

market in Well, region. obviously, Germany the quite product at management moment. we're our building inside We've with workforce out major for successful particular phase that been

the And Germany see more surrounding do countries. in you'll us a so and investments lot

Jeremy Johnson

comes ahead. Credit Suisse. please Chew Yao Next the of line from question of Yao, go

Yao Chew

is you out these you the assets you Can or hunting assets for differentiated my and can't or that acquires M&A. one philosophical sponsors at one we for the advantage on looking you're local only a Thanks one David, as Ceridian help be the for how there. either imagine question. versus explain us I have taking are? I buyer same

David Ossip

down we of a what it employees lot the think to of those comes I can actually offer particular customers.

at again, attractive I the really Noémie ups, a opportunities we And think they regional a American the North and companies be compared lot look history an mass doing today, of the look operating we already option. actual would if is gives where from a of I've other that Ceridian land large And you essentially acquisition with players critical of mentioned, how that region, the beginning us you the that's part leveraged if market. to you acquisition significant a from where that was then us the creating from career really of APJ if really model, And people now further look inside myself, to more Ascender as at more to typically of which Dayforce the the example and with differentiates us would organization. really an company started Dayforce. are in globally a at insight inside transition

opportunity inside side, be global people see the of terms country believe the more we technology win have that if customers. our to we I we leverage and On a differentiated and like you significant how in – actually do more platform can to

Yao Chew

depressed has just quick great. trended follow-up one And may That's speak you. the levels? the call recover second a the half if on pricing you how pricing and pricing just I seeing again? you COVID pricing Are high rationalizing what dynamic? Do marketplace? competitive you conceptually competition environment, Thank How more and broadly can have from just might at level to approach you expect

David Ossip

pricing contract us last our to to a that think changed given I What inherent me don't others terms in COVID. customers. more XXXX. XXXX provide of more risk I to would really year. just flexible came as terms It's of as and compared say to I down that was talking QX

Yao Chew

helpful. Thank you. That's very

Jeremy Johnson

Yao. Thanks

Next Kevin Merwin question for Chris at Sachs. was comes in Kumar from Goldman

Kevin Kumar

pay. seeing and think the about trajectory that kind on we rebound thanks for to business my think impacts of it of in COVID should Question and power How the Hi, half of of back XXXX? growth? Should question. taking similar Dayforce we to a employment

David Ossip

I be largely because that have, think the is if under power lockdown. and pressure which pay we we than what largest going business Canada. is look it the markets are both Canada, only to – Montreal small is be a Toronto would under And at in Dayforce more

the be a So we Dayforce. revenue actually that is about on all pressure see power for we QX towards so? or on going look more To when a million believe Jeremy I to power pay pay headwind, what of are kind it we seen $X quantify

Noémie Heuland

correct. that’s Yes,

David Ossip

much at Going we stream whereas QX, into looked in million. significant which revenue more X.X Dayforce, is aggregate it's a about

power it’s vaccines line is of later. recovery the of distribution. a obviously the the to than terms U.S., expectation it's in that the COVID we feeling start And Canadians to seeing act to a think So like on more with they'll And determined end probably is everyone somewhat looks the vaccine able it with quarter wants which now really I be QX, the is It's although currently are still good going much pay. in Dayforce. the by together largely who it provide

Kevin Kumar

Great. Thanks lot, David, a

Jeremy Johnson

Kevin. Thanks,

Next question Brad Clark comes from at BMO.

Brad Clark

question. Thank you for taking my

XXXX. understand little employment retention was you. impacting want in versus just market. down other factors the that bit I kicked much rate revisit revenue Just how to a cloud metric want to Thank to compared

David Ossip

Sure.

he impact netted amount. be would the around same to the net less the the one actually out just add-on about added time of employment So you numbers actively rate. It's retention employment remained really, constant six, to basically

XX.X the kind actual relative XX, retention before the XX.X of of terms to before that. year at year In the rate came or in

over years, was it of pay XX% of losses that the three power last around that that business to saw we customers by business. were the out Dayforce some largely linked on impacted small small So very went

Brad Clark

you. Thank

Jeremy Johnson

Next Matt go Blair. William Pfau question please from Matt, comes at ahead.

Matt Pfau

question. Hey my taking guys. for Thanks

expansion Just wanted to on ask the strategy. international

organic of acquisition. to two the taking and Asia-Pac terms approaches So in you more kind with bit by of bit different Europe, be seem a driven a more build-out

also in how different the between strategies think the rationale behind the you of just there, then in that and regions? maybe program, terms any two different about So difference the partner

David Ossip

have look experienced very that doing nature, with and broadly lots side strategy on differentiated broader players and started beforehand. When get type perspective but differentiated would largely the so which acquisition successful, grow of region. we up momentum country us is that to slightly do the there. actually with Dayforce time other ANZ that of Germany. that APJ we rebuilding platform Yes, Ascender people really the at UKI believe outside look region. we ANZ believe little of particularly but I look first picking expanding inside built into weren't we will that are that we by Ascender, given for out of was more workforce continue to very UK, other native still the allow had I you'll and in lots to parts we us And continue not of a of continue ANZ a for history it Ireland we Europe. all RITEQ different, to technology market, an building towards the America for because the allow scope were global and world's if – different. mean understood the in more into of we start [ph] similar inside extended out big Australia, in with the been management inside region. they say In we we around And assets from types reality, our thought type bit do people to doesn't marketplace place, That team then I'm to Latin we're further who did market, particular the for payroll region. We global see Excelity implementation market. The of opportunities then to looking and that I a major and wonderful that the payroll a also pay we’ve our

Matt Pfau

regions? partner the difference strategy, terms between in any the then Got of it. And different

David Ossip

a question. mentioned Noémie sorry. All beforehand. I'm right. Yes. That's great that

more and made in out progress the SI of If I the with being at up very piece which doing side, not more many it, the much Another integrator. picked terms And play that. it's Excelity look And by partnered system government on SIs. the large enterprise are Ascender opportunity SI space, and a the them system of a with region pretty the that but a actually we shareholder report you'll were integrators, of with attractive we as both partnerships building say by see to example letter more customer. largely one we've was us tremendous partners size that system just global we and we work differentiated of large begin of in integrators. network a software would But the large

In account. are let particular they fact, they contracts that for leading and

Matt Pfau

Thank Great. you.

Jeremy Johnson

Matt. Thanks,

next Our Veritas. of the from question Chris from Silvestre line Chris, comes go please ahead.

Chris Silvestre

taking afternoon. question. for lot Good the a Thanks

Just another one on if you don't mind. wallet,

be very in is now. position very seems right active captive spaces And with wallet digital the like like to what privileged course seems Of audience. Ceridian a a

more the whether year of that's So some but of and and the really functionality typical see by popular you some currencies achieve digital whatnot. wallet this these to helped transfers. wallets kind of past is more really of explosive and I like proven just growth, reality an over peer opportunity a other And add stretch, to peer wondering know

need whole and me one part of my know mass which second kind to question. Why I a mean, leads I critical lot that's So wallets, not you of what…

David Ossip

you frozen of direct that around you typical another like things The your OCT differentiation your Powerpay do of are really Chris, first large have deposit. would on adding to question, a yes, the part area we we see features seem [ph] is peer-to-peer transfers, have Yes, the up transfers. But that wallet Sorry. question. terms second

you actually usage in more wallet ask of even you so capture we second very there. What question a having He card is and of will to obviously as I capability if try, experience consumer actual a see from the issues, the network joined wallet Chris, should your to want like a seasoned about technology more, adding us QX. is wonderful but allow on I side the actual more as Dot. wallet you're say It pay individual you on potential And Green part still your Seth technology. wallet. again. us tremendous brought to we're like to maybe looks

Chris Silvestre

Yes.

that. about Sorry

prevents I for So of I is, roll accelerate wants of what right the why wallet? to guess, turning and what's there? away mean, and to you out it the mass it who on from question you factor the for the the it? reaching some need anyone some critical second I peer-to-peer customers all out limiting just stuff, I'm know use just not like wondering just Is

David Ossip

May wallet last of we launched in the only year. Remember

vendors wallet Of And Canada. and in hey, of just app, types attractive our year go I see is giving building wallet we access have so look any to really, you'll it, value and we for launching and wages tremendous. do. that experience do in think a of are a the for of create charging the on in talk think the other fees their make don't of for do to the on which perspective, importance sure QX, we We markets. most them mobile features about that see our with cases Remembering now how continual think, we employee focus par our sure it that us, user end But we be now, some we use when making them by employees are properly. benefit we the from at to easy product very it's We customers them. experience, much we from and I really for a use which to the we that you'll without have out if

So we'll well. QX, Canada wallets launch in at the the end of as

Chris Silvestre

you. Thank it. Got

Jeremy Johnson

from Stephanie, the comes And line CIBC. Price me. Excuse our at last please ahead. question go Stephanie of

Stephanie Price

question. Hi, thanks my for taking

going wave any given larger the second of the in implementations seeing that smaller you're just deals if pace curious of COVID we're through the here? – the Just where change

David Ossip

of in a mentioned say that is saw Dayforce robust well. I in think I as technology. acceleration actually implementations I Almost again, market customers think, When earlier an have we're Stephanie, actually We Noémie using in differentiated have customer a that look X,XXX will we QX. on that at very today. were if on they we customer a with take significantly. live can implementation good promoter customer we experience. the high up signs very confidence on up, our a net and year-over-year, budget I scores and And time What

implementation much So measured but also to have period, able NPS. we experiences this as we by accelerate been better not even only implementations, during COVID seen have

Stephanie Price

And Right. one up. maybe just

sense bookings in QX, strongest the any the you think where size? versus the curious where across composition Just of client kind of demand of QX

David Ossip

hard a question. It's

markets, space lot we're do continue to seeing well. but enterprise very in a well major obviously of We in as success the

the would year what we I line very as with say in and it's well. QX in much probably So earlier in saw

Stephanie Price

you Thank much. Great. very

Jeremy Johnson

welcome. are You

Jeremy Johnson

That a for have concludes and Thank for to want joining today. questions earnings much. a – call you excellent good wish the and I thank for evening. everyone the have happy you very

David Ossip

one. Thank you, everyone. Have a great