Dayforce Inc (NYSE:DAY) Q1 2024 Earnings Call Transcript

Mark Murphy: Thank you very much. David, I’m wondering if you could give us your perspective on the labor market. When we look at non-farm payroll growth in the US, it slid from 5% a few years ago to about 1.8%, 1.9% range recently. I’m wondering, because obviously you’re performing pretty well, how does that trend look comparatively within your install base? Do you think that might continue to grow at the low single digits for the time being? Then I have a quick follow-up.

David Ossip: Hey, Mark. So, I would say the volumes came in slightly ahead of what we had forecasted, and we’re still seeing healthy employment rates at our customers. On top of that, I’ll point out again that part of our durable growth profile is the fact that we have a very strong employer of record and talent capabilities inside the system. And our ability to go back to the base and do the add-ons to drive that cash IRR for our client, does lead to consistent growth for our business.

Mark Murphy: Okay, understood. I wanted to ask as well because we saw the comments on full suite bookings and add-on bookings, I think you said those trends were positive in April as well. I’m just curious, did you see a total bookings bounce-back relative to some of the softness you’d seen around the holiday selling season, or is it still a bit of a measured buying environment out there as we’ve kind of seen across the broader industry?

David Ossip: Yes, Mark, we saw that very early on in the actual year, with January coming in very strong. And as I mentioned, April came in ahead of plan as well. So, we’re pleased with sales year-to-date.

Mark Murphy: Thank you.

Erik Zimmer: Great. Looks like our final question will come from Kevin Kumar with Goldman Sachs.

Kevin Kumar: Hi, thanks for taking my question. In terms of the demand environment, have you seen any differences or trends that you would call out in the mid-market versus enterprise? Any color that would be helpful. Thanks.

David Ossip: In the mid-market, which we call major markets, and as well in our enterprise space, which goes up to 12,000, what we are seeing is the simplicity at scale, again, that on average, 12 different systems to one day full system, seems to be kind of the theme in the market. What we’re hearing from both prospects and customers, the ask about more automation, less integration, less manual work, less FTEs, more efficiencies, seems to be quite topical at the moment.

Kevin Kumar: Very helpful. Thank you.

Erik Zimmer: Great. Thanks, everyone, for dialing in today. This concludes our call.