Sector: Industrials | Focus: Human Resource & Employment Services
HQ: Minneapolis, Minnesota
Financial Risks
Dayforce faces risks related to maintaining high Cloud growth, managing international expansion, payroll transaction disruptions, aging infrastructure, cybersecurity breaches, legal compliance, competition, inability to update solutions, third-party relationships, and attracting/retaining talent. Outstanding debt obligations and internal control weaknesses (GITC Material Weakness) also pose significant risks. Adverse economic conditions are a further concern. Fluctuations in customer fund investment values and interest rates are also noted risks.
Financial Upside
Dayforce's recurring revenue model, high customer retention, and potential for expanding existing customer relationships offer significant revenue visibility. Growth within the enterprise segment and increased adoption of the full HCM suite are expected to drive recurring revenue per customer. Float revenue, generated from invested customer funds, is also a substantial revenue source. A receivables securitization program and share repurchase program are also potential sources of upside.
