Dayforce, Inc.

Greetings and welcome to the Dayforce third quarter 2024 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce David Niedermann, Vice President of Investor Relations. Thank you. You may begin.

Thank you for joining. And welcome to the Dayforce Third Quarter 2024 Earnings Call. I'm David Niederman, Vice President, Investor Relations. As a reminder, all participants are in a listen-only mode, and a question-and-answer session will follow our opening remarks. Joining me on the call today are CEO David Ossip and CFO Jeremy Johnson. We also have Chief Strategy, Product, and Technology Officer Joe Korngabel and our President and COO Steve Holdridge available for Q&A. 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 day forces 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 file with the Securities and Exchange Commission, such as the cautionary statements in our filings. Additionally, over the course of this call, we'll 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. These documents, in addition to a replay of this call and also a transcript, will be available on our Dayforce Investor Relations website. With that, I'd like to turn the call over to David.

Thanks, David. And thank you all for joining us. I'll provide some high-level comments on our third quarter results, and turn the call to Jeremy to provide more details of our financials, sales, wins, and customer go-lives, and an updated full-year outlook. In the third quarter, we achieved strong results as we continue to focus on healthy growth, combined with a focus on profitability metrics and cash flow generation. Therefore, recurring revenue of $333 million was up 19% with and without float, and total revenue of $440 million increased 17%. Cloud recurring gross margin was 79%, up 200 basis points, and adjusted cloud recurring gross margin was 79.9%, up 160 basis points. Adjusted EBITDA was $126 million, up 18%, and adjusted EBITDA margin of 28.7%, up 30 basis points. Year-to-date operating cash flow was $200 million, up 54%, and year-to-date free cash flow was $117 million, up 184%. We ended the third quarter with 6,730 customers live on the Dayforce platform. with the average Dayforce recurring revenue per customer up 15%. We believe we are well positioned to continue to win in the marketplace, with the Dayforce platform providing a competitive advantage. Our pace of innovation is faster than ever, and some examples from our most recent product release include the delivery of the new Dayforce Learning, a re-platforming of our eLumi acquisition into the Dayforce platform, introduction of cashless tips into our wallet product, and enhancement of our people analytics with introduction of measures, allowing organizations to set thresholds and track performance of their people with intelligent nudges. The market opportunity remains substantial. Organizations recognize that adopting a modern and best-in-class HCM system can yield significant benefits. These benefits stem from replacing as many as 12 disparate systems with the Dayforce platform. Drilling down into our sales during the quarter, we did see instances of elongated sales. There was no specific industry or segment where this was more pronounced. However, we continue to have strong confidence in our fourth quarter guidance. underscored by our go-live plans, our expanding sales motion to our existing customer base, and more full suite deals. Our Q4 pipeline remains strong, with a coverage ratio of sales opportunities to sales targets of approximately four times. We believe the pipeline's strength is a result of our key growth drivers, including the expansion of the Dayforce platform to include a broad set of HCM offerings, our move up market to target and win large customers, building the system integrated channel, which allows us to leverage our partners' implementation and sales capabilities, and finally, building the foundation to win and serve global clients. Additionally, sales to our customer base continues to be a driver of growth. with add-on sales compromising approximately 37% of total bookings in the quarter, with solid growth across our talent intelligence suite. Looking now to the fourth quarter, we are excited to host customers at our annual Dayforce Discover event in Las Vegas in a few weeks. We also will be holding an investor day alongside the customer-focused program. I'll now pass the call to Jeremy to discuss our financial results in more detail Jeremy, over to you.