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Ceridian HCM Holding (CDAY)

Participants
David Ossip Chairman & Co-Chief Executive Officer
Leagh Turner Co-Chief Executive Officer
Noemie Heuland Chief Financial Officer
Siti Panigrahi Mizuho
Jared Levine Cowen
Matthew Pfau William Blair
Kevin D. McVeigh Credit Suisse
Mark Marcon Baird
Robert Simmons D. A. Davidson
Pinjalim Bora JP Morgan
Daniel Jester BMO Capital Market
Josh Reilly Needham
Raimo Lenschow Barclays
Call transcript
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Operator

I would like to remind everyone that our remarks may include forward-looking statements and projections. These forward-looking statements are based on management's reasonable assumptions and current beliefs. There are a number of factors that could cause Ceridian's results to differ materially from our expectations.

You can learn more about these risks in the press release and shareholder letter to be issued earlier this afternoon on our website and in our SEC filings. Ceridian undertakes no obligation to revise any forward-looking statements made on this call, except as required by law. the to turn I'll that, call David. over With

David Ossip

everyone. for joining Matt. And the you evening, good Thanks, into Thank call today.

range. into the grew margin year-over-year, a Total and technology. Before XX.X%, few by exceeding sales recurring revenue guide implementation, year, XX end our XX% the go points. high basis Q&A, recurring by gross and to across want end we of product support, spend basis -- executing minutes well highlighting start revenue, quarter. strong Adjusted had exceeded Dayforce customer XXX and by guidance adjusted XX.X%. EBITDA We on of to the increased grew our I a to excluding the XXX was points by margin high float,

XXX full XX%. side, revenue which and sales, balancers on live time, have customers year-over-year. Wallet customer eligible XXX,XXX customers the added by XX% Load sold Dayforce. recurring the Dayforce we the a over average of the well. by grew on increased Registration have And the we on suite. customer over customers now of We now At across acquiring to Wallet same are XX% new sold Dayforce customers per have increased XXXX live. employees. rates to Dayforce XX% also XXX do continues On

So overall a very strong quarter.

who are to us letter. as we over to our healthy employee revenue in that, through the from such, benefit indicators With Q&A. for profitability our macro-environment, the guide Matt, continue XXXX as interest resilient business detailed I'd the our rates. rising we On like to call and fiscal shareholder guidance And will and remains and turn year raising

Operator

David. you, Thank

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

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

from from question Mizuho. First Panigrahi Siti

Siti Panigrahi

question. my taking thanks Tim, [Indiscernible]

so wallet. think to wanted Just

So period the If so our several years. time to it's see and almost momentum registration other full-year, XX%. now good and even like two it's

what -- in sort the getting what of to training two XXXX? compared products cast expect should back expectation years. of And wondering you're Just the we on And remaining -- so how the also I far? [Indiscernible] is new what feedback your remainder in

David Ossip

to within answer Siti, support XX% is partnership to seen good that against the for Also year-over-year. quarter we U.S. our of customers have increase is seen this allows obviously we've solution well Nosh. your are us an from our new reception question wallet, in expectation. our minor added and cashback We've retail. employees, with the tracking deliver attached hospitality is merit which obviously that which better that we to Also

Siti Panigrahi

Just to good. seemed to EBITDA quick follow up be pretty margin,

team the of leaning workforces. there any This was of of quarter, given some thinking remainder onetime kind about quarter, is the I or the year-over-year

David Ossip

I'll raised a guidance to year. by to to Andrew end we've by top million. both me bit ask [Indiscernible] [Indiscernible] the We've that. low-end start the raised add color and more $XX for the

Leagh Turner

Yes. Sure.

continue Last We've Services our some re-balance actions you that's the things. We gross center our Cloud in term. long scale important in and margin APJ. so the are increased well. will products couple exceeded because in in recurring continued We've our that very tax so as well. of and American our margin executed into of bottom and than and through we also also things flew taken little QX, gross we For Of as technology of our in year. efficiencies bit to line, as in a expected Cloud will workforce QX that Payroll in us the in investments some upside Bureau. That's to North main bit the do quarter, that discussed had well had had happened our helps and QX we've actually well, We've we expectations. also did we We QX. little throughout make volume a note, shared recurring an on that that that remember, of a so our better float to some gained directly very in upside also in had those second-half-of-the-year continue as the

Siti Panigrahi

Thank Great. you.

Operator

up, have, we Levine of Cowen. Jared Next

Jared Levine

including expectations, size you in employer Can geography you. segment as performance versus came your how discuss XQ in Thank contributions bookings internal well? by

David Ossip

to one? want that you take Leagh,

Leagh Turner

Really mean, customer here's I and robust solid say. Sure. little really a an quarter. demand. results bookings excellent was QX

mid-market. the growth out of in AMIA, good APJ. gate performance the quarter An and in excellent Solid North American in a really

As a David And we're seeing were full that our into. full-year win continued suite. able warm back first to four to therefore, very sell on sales promoter rolling be of ability said, very pipeline go our is to the quarter high, continue and back and more scores for makes have strong, the pretty gone for seeing up The we're platform very base base retention into year-over-year. sell. to in the quarter to very, and And quarter and and net remain than rates rates the rolling innovation XX% which our demonstrably

consistently is of ecosystem, and and therefore size known number seeing we're which of result ecosystem greater referred one well things, a that SI the by which the our As building of pipeline drives that from the is win-rate.

bookings solid overall. really quarter a So

Siti Panigrahi

impacts well whether it is Okay, inflation, Ukraine great. approving crew Russia, macro great be higher? activity, -- productivity or And demand hear is like trending be Salesforce color as there. many in environment? just basically Salesforce but don't to It So sounds the that then your healthy that concerns of as terms know or I

David Ossip

and the None Salesforce executed The well GIA across across all. at segment.

Siti Panigrahi

you. Thank

Operator

Blair. Next up, Pfau we have William from Matthew

Matthew Pfau

the client XX% seeing. Great. what size? my Wanted that that full by attach Nice does results, guys seen on there and to suite thanks Are for major attach any differences question. in you're historically? to How compared ask you've taking

David Ossip

goes significantly was, say, particularly doing or so will we it that see where and ago, higher year years rate quite quarter-over-quarter ago, a up We've well the majors seen up we would to ERPs looking now for more the attach at two side, do time players. very both We're Talent our to than well. of when market, go us in some and employees. competitively strong, XXXX the continue say now, I are relative on about the pure-play which it's to

Jared Levine

in point to you follow-up some wins the is the Got on And to it. that of of discussion released, full-service differentiation a And you're competition? your some of is seeing Talent and relative a some suite the intelligence that point big major there? functionality that

David Ossip

a application, single the within Again, system. user one as a you single know, we differentiate experience having database, by

actually of And I we our we differentiated, capability HR, and all compete, across from so are think, payroll. when in talent, end-to-end terms core

Jared Levine

it. Appreciate Great. Thanks, guys.

Operator

Kevin from it muted. like we McVeigh sounds up you're Credit Next Kevin, Suisse. have

Kevin D. McVeigh

about you results. recurring Thank you to the give really the beat you thank Sorry first the you the that. gross a coming in first quarter? Cloud much, through and Can full-year, sense where of expectations model -- for on in margin expectations so nice congratulations leverage us the and in relative but quarter, the just

David Ossip

implementation well the hosting We're inbound also of seeing to technology, are refining is customer well. which and, rate as per volumes, performed across in support. led obviously, as parts more hiring and and our reflected a efficiencies has bosoms the of there scores, the very very net motor we lower decrease What's cost. call is retention customer in that Look, so

Leagh Turner

support The previously add only we've is last customer center. come may communities come other our issues customers spent building where may thing I into that have year the self-solve would -- can in

a result, a as we built by so And really need have customer way sustainable of good really solving team. that's been a

Kevin D. McVeigh

just said the XXXX are live. them we XXX, Great. sequencing XXX that I were in shareholder live, going quick customers incremental terms then how And the Of should you follow-up. Wallet, a about of the Dayforce signed letter, the in think think the that of on

David Ossip

no is customers. It's the a sequencing the of to actual -- magic real there

quickly [Indiscernible] As and to to in they start we comfortable, with will tested they know, down want quarter typically full more they or the to comes the take it to Most extend customers then there on comes move. will smaller a the our to once When employees you monthly end be how U.S. the more monthly payroll be it customers the APJ. which live population. and income AMIA get and in out, out, really it group of off customers rolled tried

Kevin D. McVeigh

so much. you Thank

Operator

Marcon have Baird. we up from Mark Next

Mark Marcon

from by Hey to of that the what's about, scope services have competitive Wondering terms like the the that if there, for well And clients call. quarter looks my is Congratulations can wins magnitude are there, like the bookings making of on I like impressed as it a in that progressing It government you you're follow-up are really the regards is in the thanks progress are you that what's Wondering Canada. highlighted of give the getting, Wanted on? nice the and and as taking some color international I with can to are well. from, particularly then you deeply international was more taking takeaways comment you shareholder letter. if the environment looks who of the that delve perspective.

David Ossip

color. contract value and inside government appears will well. quarter. of there a progressing Canadian I'm the The lot project $XX more Canada was by start to add The sure be I'll you very million increased

there. a progress making of reflection over I think the that's good we're that

native didn't payroll. talk amiss about side, global be the across the expansion On I think had I we've I'd if

quarter, Excelity Project as the now with Singapore Ascender in charger releasing with well pilot which And we is is native and Unify, the started few which Within engines. pay payroll, customers. a the

that head-on and and to we the the We we side, because market. Two inside to our made on and are Indonesia, now only have And the that populations competitive Taiwan, of selling investments not progress actually obviously marketplaces are the APJ, points the our the the are products made one, South is global countries Malaysia, in very Brazil, in inside outlets the Kong. supporting global this compete chart players. North Hong and players data geography very employee competitive in those products local Caribbean have American we Philippines, We [Indiscernible], EMEA, Management, Korea, tremendous Thailand, companies that very, Workforce side. on with

In Global of of within becoming considerable. sales it is I was XX% the quite about outside terms of numbers, of the percentage quarter, number America. of now ACV. North the, the ACV believe

GRC? to want oe other Leagh, any to to do you global Now color add

Leagh Turner

think have thing way we sell do sell add base Mark. geographies. with that different in I only that can can to two as opportunity we're an would expand, is, we locale of or customers so global is lots that locally, employee there's we to multinationals servicing We Only global an to things, about the the

unlock shareholder see that expansion can simultaneously. you both global our our in allows TAM to in And So us indices those of letter.

operations in in in that to to based larger population. online They gaming So what is, their When and with also the with population Shareholder letter world American full next say North chose shareholder the we which now in but their XX,XXX global the can largely, it out over the you in the of entire consultancy a population references going call to employees us retailer employees. company out would the American in based section, their first, A opportunity to willing than suite, second company, roll shows their countries the X,XXX the customers XX to across IMEA and be us standing shift serviced information IMEA we they're business I under they're XX to global longest world's the by us. global letters, the less noted UK some Ceridian bought as our North course service globally. out months. largest you and with of live And countries largest referenced XX to then year, of XX,XXX, went leading expand deploy to

opportunity which we So to our two an success. grow really have we to things important as is a those do marker globally,

Mark Marcon

rolling a Noemie. a think talk discussions in hikes? already we the out for could the rates? further afternoon, That's in terms the impact bake in bit [Indiscernible] as potentially about What little I of question a short-term did guidance? be addition you to terms this of fantastic. had rising rate Can about what you And

Noemie Heuland

those and until account to the today, revenue the ladder for We've on have recent seems so invested raised rate near-term other [Indiscernible] instruments -- we portfolios, and our timing so you is a our bit is portfolio in half accounted of liquidity cloud as including the longer-term half there's that's to revenue benefit in little remember also that rates invested all guidance the until [Indiscernible] hikes saw more a we there's not environment. there interest like years for We've saw,

Mark Marcon

Great. Thank you much. so

Operator

Davidson. from go we'll A. D. Robert up, Next to Simmons

Robert Simmons

a taking for question. Thanks

higher presumably from inflation are I First, Are what you on rates? terms customers, wondering price you of to move of your at renewals? impact to some increases was past seeing able the

David Ossip

so benefit we over our increased CPI In an time we [Indiscernible] the majority on have contracts, of inflation. do

Robert Simmons

The sound off. quality a is little

something something with kind there's severance pretty I maybe Can high. what pretty times. or your starters microphone think we're making? about you wrong like second things at I question, much think you this in Do you're point? the But speaker that. [Indiscernible] the at or got changes of set you've quarter talk

Noemie Heuland

and color. can take me some Let that maybe you add

all, quite of services trends over hiring done now First we and our We center support We've we've expanded workforce, there. shared very that rebalanced as in the APJ. Manila. We've operations we had in center discussed good especially before, our expected had in into support successfully. our

at also in typically force, our performance-managed typical so sales and the would us year, well do in product the and scale it. that We've gross has other beginning as us to that's of of of done also be performance technology resources expect we've as the margin, look part beginning Cloud-recurring -- -- So at helped existing looked you as as the year, do, we group, efficient every mentioned. management the the at what we've and gain more

Robert Simmons

Got much. Thank it. you Great. very

Operator

JPMorgan. Next Bora we up from have Pinjalim

Pinjalim Bora

it at I where this I will Hey, and to Wallet. the of pretty point. identity Great. everyone the to care. sitting and our question thanks organizations. across a be And on taking are where journey? understand you respect have carry different expect Because maybe to unit How original to are able you them, Product? questions David congrats that economics carry along employees with Dayforce realizing the us Wallet with in wallet the far the on from a quarter are vision division the remember just that Help a was at grand you our

David Ossip

other with wallet to two happy the moved of capabilities. system. traction XX months the money very about Wallet lot a over very to would also and words, with a say robust getting the we're In is So that we're I Wallet reliably very we last years.

terms would it In And year. I the to late now come to actively we next vision, are expect that. market full of building

Pinjalim Bora

revenue? expect year. And this more Later we'll

David Ossip

Late year, next sorry,

Pinjalim Bora

Late next year.

about question labor capacity us where got Okay, Helps sales with hiring. this the to tight it. market. you And given second the [Indiscernible] are for respect understand year

Leagh Turner

is now. near I the would organization say sales capacity

performance-managed making does year, doing amount in QX we spent we setting is So were we changes that huge to in in a the of time QX, and our which went year what every on believed go-to-market, order their we organization required the should unlock appropriately not the only higher-quality healthy Noemie's hired every in which sales team -- we organization, and belief. do the to and appropriately, sales backfill a one of point, in

And for so a really a as setup great result, go-to-market full-year. the have

Pinjalim Bora

you. Thank Good to hear.

Operator

Next up, we have back. Bank. Deutsche Bhavin Okay. We'll Shah, Bhavin? circle

have BMO. we up, Next Dan Jester from

Daniel Jester

takes any in Just conceptually, environment thinking puts the a that should And fund and wallet? thinking about rate from about perspective? higher you how should we be and we how interest be

David Ossip

In go a basis time probably if the up, will basis points up thing. about rates points the X% that's well, but data up amounts XX type if you it by goes be go as the points of terms Say do the take it basis actual XX to interest points, as of amount wallet basis seven outstanding. of

Daniel Jester

how catch was the much international Can of years. new And over in that, Thank I conversions commentary, data dive net from versus some positive. please? you of the very then didn't just to to with the sounds regards that you. acquisitions

David Ossip

net new. were They

Noemie Heuland

end. a know little don't I if on they net that? all this David new. said here choppy were you we're Did

Daniel Jester

Okay. Great. Thank you.

Operator

from Reilly we up next Needham. have So Josh

Josh Reilly

you're has here my we divergence the the started Hey, for the the you looking guys, But U.S. taking have States, the started. the war outside that specifically? outside resilient business macro know United pretty confidence any here. since at U.S. When on been one the war customer in Maybe questions. thanks Ukraine seen since has

David Ossip

London Ukraine. strange I from was ago, the war, probably see as be. I impact Russia have little We exposure any and in four weeks might to that about didn't very as and

and So in very in we've do well UK continued the and Ireland. EMEA to

Josh Reilly

in by helpful. it's used That's customers XX relevant. And continues then you times the average in of be and where it. shareholder letter to month Dayforce card that Got mentioned the per

David Ossip

times. XX

Josh Reilly

it Is Okay. XX?

it's changing these Sorry, economy's of the is size that and or reopening? transactions mix the XX. Curious, now

David Ossip

particular. to I haven't followed seems looked withdrawal be grocery, withdrawals. at restaurants, $XX. that still the food, fast convenience, about and It typically in same, largely, is average by ATM gas, The

Josh Reilly

guys. Thanks it. Got

Operator

we Barclays. have from up, Next Raimo Lenschow

Raimo Lenschow

also t-shirt you pitches. sales you differentiation a trying you Can up in a do with that's copycat "Oh, we there, in I calling say, that, -- that's industry I'm wanted How with of to well". from you. What offered as for it to come David, out? Thank products please? expect terms in black factor ask [Indiscernible] the to about that to playing the of terms Hey. speak have Wallet

David Ossip

Look, Raimo, it's very strong.

we're As U.S., employees and rate that I an the new value of which perceived it talks to product seeing wallet of the strength brings the XX% obviously, mentioned, the in attachment about, sales, customers. the for our to

the We The loan is there into solutions to no bolted-on players the and have the other major marketplace. in that's made is employee. with reconciliation difference us, no required, bringing market seen there's

payroll solutions, card of number a do don't the days for other the outstanding. day. and All do remittances the at next effectively state to employee very the federal We of vendor where We that. the the we loan a gives true level do the the

solution. So it's a of truly compliant type

use is be doing the We the think actual the whereas we fees employees fees other do of would charge We in do don't to difference solutions that require to our wrong, not other or customers. morally that. direct The any fees believe wallet. membership

Raimo Lenschow

may, then follow-up. if one And I Okay.

do their -- appetite of HR whole office you back of but back to front more and have see good, you that "Oh, customer started systems? back my very is bigger office customer in As my you dated". like, revisit look office terms Going accounts, systems what really realizing upmarket, winning theme interest

You have as more terms see me of customer you. congrats success in well. upmarket now. here? conversations What And do from Thank you

David Ossip

EMEA, by start are but saying know, for as with forward, off core APJ. those now are our that and HR gauging the would with quality I in and you demanded as that's HR, payroll, the government HR, and and all traction management, very, that In know, do what market goes typically if upsell we rate start Payroll as as particular In across have workforce margin. that back-office off space, our you we is Canada, of more over market customers and HR being a and well core well healthy where Talent means the same the testing are the and the as rate Talent, the attachment people. say, we we the XXX,XXX then and the enterprise core as major because you to probably very of to some talent, considered core for Talent components. thesis, Gartner positioning, well would We probably to

Raimo Lenschow

you. Thank Okay.

Operator

to if At we'd audience questions. are the like poll check remaining this there point, any to

are have the There please look further to your joining questions. raise call If one, in no forward you us all on you hand. and with Thank we you future. speaking for the

David Ossip

you. Thank

Noemie Heuland

Thank you.