Dayforce Q2 Revenue Surges 24.81%, Stock Down 0.99% Pre-Market

Dayforce Inc.'s stock price closed at $52.88 USD, down 0.99% from the previous day. The company's Q2 adjusted earnings and revenue advanced and beat expectations, with full-year revenue guidance updated to $1,935 million to $1,955 million.

Dayforce Inc. (DAY) reported robust second-quarter (Q2) results, with adjusted earnings and revenue beating expectations. The company's stock price closed at $52.88 USD, down 0.99% from the previous day. Dayforce's Q2 adjusted earnings per share (EPS) came in at $0.61, exceeding analyst estimates of $0.53, and revenue reached $464.7 million, surpassing expectations of $457.7 million [1].

Management attributed the strong performance to robust demand for its single-platform human capital management (HCM) solution, driven by sales momentum, particularly in system integrator-led channels and back-to-base sales. Key product innovations around AI-enabled features and successful onboarding of large enterprise customers also contributed to the positive results [1].

Dayforce's CEO, David Ossip, highlighted the company's focus on driving efficiencies and simplicity, which has yielded value for both the business and its customers. The company's operating margin improved to 26.9% from 9.4% in the same quarter last year, while adjusted operating income reached $124.9 million, beating estimates of $114.2 million [1].

The company slightly lifted its full-year revenue guidance to $1,935 million to $1,955 million, reflecting confidence in sustained demand for its cloud-based HCM platform. Analysts expect DAY's EPS to grow 52.5% year-over-year to $1.51 for the fiscal year ending in December 2025 [2].

Dayforce's stock price has been volatile, with shares peaking in 2021 but declining about 60% amid softer enterprise software investment. The company's recent quarterly results show signs of improvement, with net income of $21.3 million (13 cents per share) in Q2, reversing a loss of $1.8 million a year earlier [3].

Shares of Dayforce jumped more than 27% in premarket trading Monday after reports surfaced that private equity firm Thoma Bravo is exploring a potential purchase of the human resources software company. The acquisition plan would involve taking Dayforce private and delisting its shares [3].

References:
[1] https://finance.yahoo.com/news/top-5-analyst-questions-dayforce-054424457.html
[2] https://www.barchart.com/story/news/34219550/dayforce-stock-outlook-is-wall-street-bullish-or-bearish
[3] https://investorshub.advfn.com/market-news/article/14867/thoma-bravo-eyes-dayforce-acquisition-driving-shares-up