Dayforce Reports $481.8 Million Revenue in Q1 2025, Up 11.7% Year-Over-Year

Dayforce, Inc. reported a total revenue of $481.8 million for the first quarter of 2025, marking an increase of 11.7% from $431.5 million in the same period of the previous year. The growth was primarily driven by a 7.3% rise in recurring services revenue, which reached $410.5 million, and a significant 46.1% increase in professional services revenue, which totaled $71.3 million. The company also achieved a net income of $14.9 million, a substantial increase of 109.9% compared to $7.1 million in Q1 2024. This resulted in a diluted earnings per share of $0.09, up from $0.04 in the prior year.

In terms of operational metrics, Dayforce's customer base expanded to 6,929 live customers, reflecting a 5.4% increase from 6,575 customers a year earlier. The average recurring revenue per customer also grew to $167,600, compared to $150,362 in the previous year. However, the company experienced a decline in float revenue, which decreased by 8.9% due to a lower average yield, despite a 5.4% increase in the average float balance of customer funds, which reached $5.86 billion.

Strategically, Dayforce implemented an efficiency plan that included a workforce reduction of approximately 5%, which was largely completed by the end of March 2025. This restructuring resulted in non-recurring charges of about $29.2 million, impacting various expense categories. The company also reported a significant increase in total costs and expenses, which rose by 15.4% to $450.8 million, driven by higher labor and benefit expenses across multiple departments, including professional services and general administration.

Looking ahead, Dayforce maintains a positive outlook, with approximately $1.28 billion in remaining performance obligations expected to be recognized as revenue in the coming years. The company believes that its cash flow from operations, combined with existing cash reserves of $557.3 million and access to its revolving credit facility, will be sufficient to meet its liquidity needs for the foreseeable future. However, management acknowledges that future performance is subject to various economic factors, including interest rate fluctuations and market conditions.