Ceridian HCM Holding Inc. (NYSE:CDAY) Q4 2022 Earnings Call Transcript

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Raimo Lenschow: Okay, perfect. Yes. Same here. Can you talk a little bit the enterprise wins are really, really impressive like where — what are you seeing there? Are there any patterns in terms of where these customers are coming from in terms of like having tried it out other cloud vendors where the offering is not very strong, some of the old legacy stuff is getting dated and people are moving. Are there any things that you can see that kind of create a trend here?

David Ossip: It’s right across the Board. We’re replacing some of the cloud branders that you obviously know of. We’re obviously replacing some of the legacy payroll bureau companies that you would expect that we’ve always had. We’re also replacing some of the ERPs in the market, but I don’t think that’s changed. Look when I look at it I think we are differentiated in that we’re the only pure-play HCM vendor in that Gartner leadership quadrant. And specifically we are number one for compliance. We’re number one for payroll. We’re number one for customer set. But also we completely differentiated on our global capabilities whether it be global HR, global workforce management, global payroll. So, I do think we’re quite unique inside the market when it comes to the large enterprise companies.

And as I spoke about at the very beginning the move of all companies of scale to shared services and globalization of the operations is just the reality of a post-COVID world. Leagh what would you add to that?

Leagh Turner: I think the only thing I would add is that the driver is consolidation and efficiency. So in many of our wins over the course of the last quarter, we’re replacing like multiple systems. I’ll give you an example. The win in Australia that both David and I referred to as a replacement of 34 different systems. This is a really common trend as companies look to drive efficiency in order to be able to fuel growth. And so I would say that that’s a really key driver.

Q €“ Raimo Lenschow: Yes. Okay. Perfect. And then one quick follow-up more for the future around like your revenue recognition usually started when you get the customer live. Other vendors are starting actually from almost day one because the client is using system integrators and in the client say, how are you thinking about that as you evolve and as more system integrators coming on stream? Have you changed it? Are you thinking about changing that? Any help there as well. Thank you, and congrats from me as well.

Leagh Turner: Yes. I mean I’ll ask Noemie add a little bit of color, but I’ll simply say that’s a business model that you can imagine we’re moving towards. As we partner with system integrators we come in with a joint value proposition. We sell the software. They sell the implementation. Together we do the transformation services. And you should expect that over the course of the next few years that we will continue to mature that model. Noemie what would you add?

Noemie Heuland: Yes, no, you’ve covered it Leagh. We’ve actually started doing that a couple of years ago and some opportunities and customers have kept that starts right upon signing the contract. We’re moving in that direction. Obviously, when you sell the full suite and you have a SaaS offering that includes more ACM and additional modules other than payroll. It’s obviously a bit easier to do but the — we’re also making big strides in that model with a payroll and time and attendance customers as well

Q €“ Raimo Lenschow: Okay. Perfect. Thank you.

David Ossip: Thanks, Raimo. Thanks everyone for joining the call.

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