Ceridian HCM Expands Retail Sector Presence with Dayforce Innovations Ceridian HCM Expands Retail Sector Presence with Dayforce Innovations

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By Ronald Tech

The retail sector is about to receive a jolt of innovation, thanks to Ceridian HCM’s (CDAY) recent announcement of pioneering retail product developments in its Dayforce platform. The company’s unique offering of workforce management (WFM) and global payroll capabilities on a single platform is empowering retailers and the hospitality sector to efficiently manage their workforce, enhance employee engagement, and make informed staffing decisions, leading to increased operational agility.

With over 1,280 retailers worldwide, including prominent brands like American Dream, Costa Coffee, and SPARC Group, benefiting from Ceridian’s solutions, the firm stands at the forefront of optimizing workforce dynamics. The latest features in the Dayforce platform, such as machine learning-powered forecasting, shift marketplace for workforce flexibility, next-generation labor planning, and a reimagined time experience, demonstrate Ceridian’s unwavering commitment to providing innovative solutions that cater to the evolving needs of the retail industry.

Dayforce Expands Ceridian’s Portfolio, Aids Growth

Ceridian’s move aligns perfectly with the dynamic demands of the retail industry, offering innovative solutions through its Dayforce platform. The company witnessed a substantial 35% year-over-year growth in Dayforce recurring revenues in the third quarter of 2023, driven by the continuous adoption of new clients and Ceridian HCM’s focus on innovation.

The introduction of Dayforce Co-Pilot, powered by generative AI, is further expanding Ceridian’s portfolio, empowering organizations to enhance workforce productivity across the Dayforce suite. This commitment to innovation has led to new customers like Microsoft and Swissport. In the third quarter of 2023, Ceridian HCM partnered with Microsoft to launch Dayforce Co-Pilot, a generative AI assistant, leveraging Microsoft’s capabilities and OpenAI connection to automate tasks and enhance productivity in the Dayforce human capital management platform. Additionally, the global aviation service provider Swissport selected Ceridian’s Dayforce platform to optimize payroll, standardize global human capital management, and enhance workforce engagement for its 55,000 employees across 292 airports worldwide.

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Solid 2023 View

Ceridian’s expanding clientele and robust Dayforce portfolio are contributing to top-line growth. For the fourth quarter of 2023, the management expects revenues to range between $398 million and $401 million, indicating an increase of 18-19% on a GAAP basis and at constant currency (cc).

Dayforce recurring revenues, excluding float, are projected to be in the range of $255-$257 million, suggesting a 29-30% rise from third-quarter 2023 levels on a GAAP basis and at cc. The Zacks Consensus Estimate for the fourth quarter of 2023 revenues is $400.09 million, indicating a 19.04% growth from the fourth quarter of 2022 levels. The consensus mark for earnings is pegged at 32 cents per share, unchanged in the past 30 days.

Looking ahead, for 2023, the company expects revenues to be between $1.512 billion and $1.515 billion, signifying a leap of 21-23% at cc. The Zacks Consensus Estimate for 2023 revenues is $1.51 billion, indicating a 21.5% growth from a year ago. The consensus mark for earnings is pegged at $1.33 per share, unchanged in the past 30 days.

Zacks Rank & Other Stocks to Consider

Currently, Ceridian HCM holds a Zacks Rank #1 (Strong Buy). The company’s shares have declined 1.6% in the past six months, compared with the Zacks Computer & Technology sector’s rally of 7.7%. Some other top-ranked stocks in the broader technology sector are DoorDash and Camtek, each sporting a Zacks Rank #1. DoorDash and Camtek shares have returned 26.9% and 102.4%, respectively, in the past six-month period. Long-term earnings growth rates for DoorDash and Camtek are pegged at 42.13% and 12.26%, respectively.