Ceridian Hcm
Q4 2022 Earnings Call
Feb 08, 2023, 5:00 p.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Matt Wells
[Audio gap] all participants are in listen-only mode, and the question-and-answer session will follow the opening remarks. Before I hand the call over to David, I want to remind everyone that our commentary may include forward-looking statements. These statements are subject to risks and uncertainties that could cause Ceridian's results to differ materially from historical experience or present expectations. A description of some of these risks and uncertainties can be found in the reports we filed with the Securities and Exchange Commission, such as the cautionary statements in our filings.
Additionally, over the course of this call, we will reference non-GAAP measures to describe our performance. Please review our earnings press release and filings with the SEC for our rationale behind the use of non-GAAP measures and for a full reconciliation of these GAAP to non-GAAP metrics. Both our earnings press release and SEC filings are available on the Ceridian Investor Relations website. As a final note, a replay of this call will also be available on our investor relations website.
And with that, I'd like to turn the call over to David.
David Ossip -- Co-Chief Executive Officer and Chairman
Thank you, Matt, and thank you all for joining us today for our Q4 earnings call. Today, I'll discuss our exceptional results for the quarter and fiscal year and talk to our continued strength in technology that positions us for 2023 and beyond. Leagh will give more information on our successful customer implementations and recent organizational changes that will help drive efficiency and continue to grow. Noemie will then provide insights on our Q4 performance, 2023 full year guidance and reaffirm our medium-term goal becoming a $2 billion revenue company with industry-leading cloud recurring gross margins of 80% and adjusted EBITDA up 30% by 2025.
I'll begin with our financial results. I'm happy to report that we closed Q4 and fiscal year 2022 with strong momentum in financial performance. For Q4, we exceeded our guidance across all metrics. On a constant currency basis, Dayforce recurring revenue grew 35% and 24%, excluding float.
Our adjusted EBITDA was $67.7 million or 20.1% of revenue with cloud recurring gross margins expanding by 250 basis points on an adjusted basis to 76.2%. Cash flow from operating activities were $41.8 million, a significant improvement from a year ago. Our annual Dayforce gross retention rate remains best in class at 97.1%, and our cloud annual recurring revenue surpassed $1 billion, growing 34% year over year. In 2022, Ceridian demonstrated efficiency in its operations while achieving impressive revenue growth and enhancing profitability.