Dayforce, Inc.

Hello and good evening. I'd like to welcome everyone to the second quarter earnings call for Ceridian. I'm Eric Zimmer, head of corporate development and investor relations. I am joined on the call today by our co-CEOs, David Austin and Lee Turner, our CFO, Noemi Uland, and our senior director of investor relations, Matt Wells. I will now turn it over to Matt, who will run through our legal disclaimers.

Thanks Eric. As a reminder, all participants are in listen-only mode and this call is being recorded. 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 expectations. A description of some of these risks and uncertainties can be found in the reports that we file with the Securities and Exchange Commission, in addition to statements included in our current and periodic filings. Additionally, over the course of this call, we will reference non gap measures to describe our performance. Please review our earnings press release and filings with the SEC for rationale behind the use of these non-GAAP measures and a full reconciliation of our GAAP to non-GAAP measures. As a final note, our earnings press release and other SEC filings are available on the Ceridian Investor Relations website. With that, I'll turn the call over to David.

Hello, everyone, and thank you for joining our Q2 earnings call. Today, I'll speak briefly about our strong performance in the quarter, what we are seeing in the macro environment, and I'll highlight our technology differentiation. Lee will then give more color on our sales momentum and outlook for the second half of the year. And she'll go into details on how we are driving efficiencies across the organization. And then Naomi will go into the numbers before we open up the call for questions. Turn into performance. We had a very strong quarter, and in constant currency, we exceeded the high of our guide on all of our metrics. Dayfall's recurring revenue, ex-float, grew by 30%, and 31% including float. Adjusted EBITDA came in at 61.8 million, or 20.5% of revenue, versus a year ago when the business was operating at 15.9%. This is a significant improvement in probability and in scale. A large part of our EBITDA beat came from the 230 basis point year-over-year increase in adjusted gross profit on cloud recurring to 76.4%. On the macro side, we have not seen any slowdown in sales or any slowdown in decision-making. Year-to-day sales are up significantly year-over-year and growth appears to be accelerating. We have seen continued momentum across all segments. Deals above $1 million are up 50% year-over-year. Mid-market sales are above plan. Add-on sales to the base continues to be a healthy 30%. The number of customers who have brought a suite is up to 36%. And global traction continues, with EMEA and APJ sales both up year over year by more than 50%. In other words, we are firing on all cylinders and are quite confident on the outlook for the second half of the year. And turning to technology, we continue to build great tech that continually expands our addressable market by extending our platform with new modules, adding capabilities that scale for large enterprises, and adding global HR, payroll, and time features that service the needs of global organizations and those headquartered outside of North America, all of which deliver more value to our customers and drives recurring revenue growth and profitability. And as you know, we differentiate in the market through our Dayforce technology in a number of ways. First, we have a single solution with a single database that spans across HCM. This drives efficiencies and cost savings for our customers. Second, our continuous calculation engine also drives significant efficiencies and much better compliance for our customers. In fact, we have seen payroll processing times drop from over 20 hours to less than two hours at our customers. and we are broadly recognized as a worldwide leader for payroll, workforce management, and compliance. It is this continuous calculation engine that has allowed us to bring Dayforce Wallet to market. Dayforce Wallet allows employees to get paid when they want, improving their financial wellness by avoiding costly alternatives, while significantly reducing employee turnover and cost for our customers. Today, more than 1,200 customers have signed for Dayforce Wallet, over 650 are live, average registrations are above 40% of eligible users, and the typical wallet user uses the wallet about 25 times per month. These trends illustrate what our customers are telling us, which is that Dayforce Wallet is a modern extension of a payroll process and is a base expectation of today's employee. Another advantage we have relative to the ERPs is our payment and tax services capabilities. In fact, I would argue that selling payroll without tax and money movement is like selling a bus without wheels and an engine. And on the global front, our global capabilities for HR, payroll, time, and talent allows customers to have a single system for their global operations, which is a significant competitive differentiator for Ceridian. And finally, our focus on driving returns for our customers has led to our success. Each time we build a module, we determine which KPI we can impact with that module. That measurement needs to be quantifiable and convertible into a money saving. This focus on ROI has led to powerful customer case studies and reinforces our value messaging, which resonates so well in today's macro environment. And our results stand as proof. I'll now turn it to Lee to go into more details on sales productivity and how we're driving efficiencies across our business.