Ceridian HCM (CDAY) Q1 2022 Earnings Call Transcript

For the period ending March 31, 2022

May 4, 2022 5:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

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. With that, I'll turn the call over to David.

David Ossip

Thanks, Matt. And good evening, everyone. Thank you for joining into the call today. Before we go into Q&A, I want to spend a few minutes highlighting the quarter. We had a strong start to the year, executing well across sales implementation, customer support, and product and technology. Dayforce recurring revenue, excluding float, grew by 31% year-over-year, exceeding the high end of our guidance range. Total revenue was 20 -- grew by 25.1%, and adjusted gross margin on recurring increased by 220 basis points to 75.5%. Adjusted EBITDA margin exceeded the high end of our guide by 347 basis points. On the customer side, we added 175 customers and now have 505,609 customers live on Dayforce.

At the same time, the average recurring revenue per Dayforce customer grew by 10%. And on new sales, we sold over 35% of customers acquiring a full suite. Dayforce Wallet continues to do well. We now have sold over 1100 customers on the Dayforce Wallet of which 530 are live. Registration rates have increased to 36% across the eligible employees. Load balancers also increased by 17% year-over-year. So overall a very strong quarter. On the macro-environment, our business remains resilient and we continue to benefit from healthy employee indicators and rising interest rates. And as such, we are raising our fiscal year 2022 guidance for revenue and profitability as detailed in our shareholder letter. With that, I'd like to turn the call over to Matt, who will guide us through the Q&A.

Questions and Answers:

Operator

Thank you, David. As we go through the Q&A portion of the call, I'll announce your name, and at that point, we ask that you please unmute your line and ask your question and then a re-mute your line. We also ask that you please limit your time to one question and one follow-up. Thank you. First question from Siti Panigrahi from Mizuho.