On this page of StockholderLetter.com we present the latest annual shareholder letter from Dayforce, Inc. — ticker symbol CDAY. Reading current and past CDAY letters to shareholders can bring important insights into the investment thesis.

 •  3/13/2025 Letter Continued (Full PDF)
 •  3/16/2023 CDAY Stockholder Letter
 •  3/12/2024 CDAY Stockholder Letter
 •  More "Miscellaneous" Category Stockholder Letters

CDAY Shareholder/Stockholder Letter Transcript:

2024 Annual Report

2025 Dayforce

Message from our
Chief Executive Officer
Dear fellow Dayforce stockholders,
2024 was an exciting year marked by strong revenue growth, improved cash flow generation, and a renewed focus
on becoming the leading company in Human Capital Management (   HCM   ) software. We took bold steps towards
our goals, fueled by investments in innovation, operations, and our commitment to making work life better for our
Dayforce community.
We continued infusing our Dayforce    platform with new capabilities throughout 2024, including developments in
Artificial Intelligence (   AI   ), the launch of our new Dayforce Talent Marketplace, and the successful integration of
eloomi    to power Dayforce Learning. With these enhancements, alongside the continued refinement of our go-tomarket engine, we believe that we truly have    the right to win    in 2025.
A highlight of 2024 was hosting Dayforce Discover, our flagship global customer conference, in Las Vegas. There
we announced new innovations that we believe will set the standard in intelligent systems     those designed to
power the workforce of today, and well into the future. Dayforce Communications, Dayforce AI Agents, and Dayforce
Strategic Workforce Planning took center stage during the Innovation Keynote, all of which we aim to make
available to Dayforce customers this year. The excitement these innovations generated with existing and potential
customers was outstanding. We believe the energy generated by these innovations will power our momentum
through 2025 and beyond.
With 6,876 customers and 7.6 million global employees live on Dayforce at the end of 2024, we are successfully
scaling our business and securing new wins across our global footprint. I   m proud to share that we concluded the
year with strong fourth quarter results     including the strongest sales quarter in our history.
Our 2024 financial and operating performance delivered strong revenue growth, expanded profitability, and
increased cash flow metrics.

Annual revenue was $1.76 billion, an increase of 16.3% or 16.7% on a constant currency basis.*

Dayforce recurring revenue, excluding float, was $1.16 billion, an increase of 20.4% or 20.7% on constant
currency basis.*

Cloud annualized recurring revenue was $1.47 billion, an increase of 17.9%.*

Annual Dayforce gross revenue retention rate was 98.0% for the full year of 2024, compared to 97.1% in
2023.*

Net income was $18.1 million and net profit margin was 1.0%. Adjusted EBITDA was $501.5 million and
Adjusted EBITDA margin was 28.5%, expanding 140 basis points.*

Net cash provided by operating activities was $281.1 million and operating cash flow margin was 16.0%.
Free cash flow was $171.5 million and free cash flow margin was 9.7%, expanding 280 basis points.*
Drilling down into our 2024 innovation, we focused our efforts on a product roadmap built around IT simplification,
data, experience, and compliance. This focus was further elevated by our talented team of Daymakers who are
dedicated to make work life better through a best-in-class HCM experience for our customers and their employees.
Our differentiated innovations helped us achieve strong win rates, high customer retention, and industry recognition
in 2024.

We made Dayforce Co-Pilot, a fully immersive, AI-fueled experience within Dayforce Hub, generally
available to our customers globally.


We introduced Dayforce Flex Work, an on-demand marketplace that helps organizations augment their
workforce with flexible talent, to better help our customers address fluctuating labor demands.

We launched Dayforce Payroll in Singapore, enabling customers operating in Singapore and across
Asia with access to our industry-leading payroll capabilities.

We surpassed $5 billion USD in funds delivered to Dayforce Wallet users through on-demand pay, early
direct deposit, and paycard.

We launched Dayforce Learning, an innovative learning and development solution embedded within our
single, mobile-first Dayforce platform. This followed the acquisition of eloomi, a leading learning
experience platform, in the first quarter.

We won Top HR Product of the Year by Human Resources Executive for Dayforce Career Explorer, our
AI-integrated career pathing tool.

We delivered more than 900 compliance updates, addressing taxes, workers    compensation,
garnishments, dependent care, forecasting, and more.
We also announced the next evolution of our partner ecosystem built to accelerate opportunities, innovation, and
value across the Dayforce Partner Network. Three interconnected pillars     Service Delivery Partners, Community
Partners, and Technology & Innovation Partners     are designed to support each partner   s unique strengths and
opportunities for expansion. We   ve also introduced three new tiers     Emerging, Growth, and Strategic     designed to
unlock a range of benefits as partners progress along each stage. Our partner ecosystem is grounded in the ability
to deliver comprehensive solutions that maximize value for customers and accelerate go-to-market efforts.
In 2024, our market leadership was validated for the fifth consecutive year when Dayforce was named a leader in
the 2024 Gartner   Magic Quadrant    for Cloud HCM Suites for 1,000+ employee enterprises. Further, Dayforce was
ranked as #1 in the two NA Compliance Suite Use Cases (for 1000-2500 Employees and for 2500+ Employees) in
the 2024 Gartner "Critical Capabilities for Cloud HCM Suites for 1000+ Employee Enterprises" report.
And not to be overlooked, we were energized by the successful transition of our brand to Dayforce. The unification
of our brand underscores our unrelenting focus to deliver simplicity at scale     in both the overall value proposition of
our singular brand, and the efficiencies realized when our customers consolidate an average of 12 systems with the
all-in-one Dayforce platform. I am optimistic that we can help our customers operate with confidence by harnessing
the power of our comprehensive, AI-enhanced platform     and in turn drive workforce efficiencies, tackle compliance
complexities, and achieve positive business outcomes. And as one united brand, our company is making true on our
mission to foster satisfied customers, engaged employees, industry-leading products, and strong returns for the
market.
Our increased profitability, productivity, and operational excellence sets a solid foundation for the year ahead     and I
believe Dayforce is well-positioned to continue delivering value and making work life better for our people, partners,
customers, and stockholders.
David Ossip, Chair and CEO
* Refer to the "Non-GAAP Financial Measures" section in our Annual Report on Form 10-K for additional details and a reconciliation of our nonGAAP financial measures.



 3/13/2025 Letter Continued (Full PDF)