UPDATE: Ceridian HCM Holding Inc. (CDAY) Reports Q1 Loss of $0.11 on Revenues of $208.9M; Offers 2Q & FY18 Revenue Outlook

Ceridian HCM Holding Inc. (NYSE: CDAY) reported Q1 EPS of ($0.11). Revenue for the quarter came in at $208.9 million, versus $0 reported last year.

David Ossip, Chairman and Chief Executive Officer of Ceridian, commented, “Over the last five years, we have transformed Ceridian into a leading HCM cloud technology company. Our recent IPO was a significant milestone for us. Although we are very proud of all that we have achieved so far, we believe we have much more to accomplish and look forward to the opportunities and challenges that lie ahead.”

Ossip continued, “We are pleased with our strong financial results for the first quarter of 2018. We believe that our focus on a culture of innovation and employee engagement creates successful outcomes for our customers and drives growth in our business.”

Financial Highlights for the First Quarter of 2018

Revenue

• Cloud revenue increased 38.0% to $125.2 million from $90.7 million in the first quarter of 2017.
• Total HCM revenue, which includes revenue from both our Cloud and Bureau solutions, increased 11.8% to $187.2 million; and total revenue, which includes revenue from both the HCM and Lifeworks segments, increased 11.7% to $208.9 million from $187.0 million in the first quarter of 2017.
• Excluding the effect of foreign currency fluctuations, Cloud revenue increased 35.6%, and total revenue increased 9.9%.

Operating Profit (loss), Pretax Income (Loss) and Net Income (Loss)

• HCM operating profit increased to $27.3 million from $10.9 million in the first quarter of 2017, and total operating profit increased to $26.4 million from $12.2 million in the first quarter of 2017.
• Pretax income was $4.2 million as compared to a pretax loss of $9.2 million in the first quarter of 2017.
• GAAP net loss from continuing operations attributable to Ceridian was $2.1 million, compared to a net loss from continuing operations attributable to Ceridian of $11.7 million for the first quarter of 2017. Net loss per share from continuing operations attributable to Ceridian was $(0.11) for the first quarter of 2018 based on 65.3 million basic and diluted weighted average common shares outstanding. Net loss per share from continuing operations attributable to Ceridian was $(0.25) for the first quarter of 2017, based on 65.0 million basic and diluted weighted average common shares outstanding.

HCM Adjusted EBITDA

• HCM Adjusted EBITDA increased 39.7% to $43.6 million from $31.2 million in the first quarter of 2017.
• HCM Adjusted EBITDA margin increased to 23.3% from 18.6%, in the first quarter of 2017.

Balance Sheet and Cash Flow

• Cash and cash equivalents were $62.2 million as of March 31, 2018.
• Cash flow from operating activities for the first quarter of 2018 was ($23.3) million compared to ($44.0) million for the first quarter of 2017.

Dayforce Live Customer Count

• 3,154 Dayforce customers were live on the Dayforce platform at the end of the first quarter of 2018, an increase of 674 customers as compared to 2,480 Dayforce customers at the end of the first quarter of 2017.

Business Outlook

Based on information available as of May 22, 2018, Ceridian is issuing guidance for the second quarter and full year fiscal 2018 as indicated below.

Second Quarter 2018

• Cloud revenue is expected to be in the range of $123 million to $125 million.
• Total HCM revenue is expected to be in the range of $173 million to $175 million.
• HCM Adjusted EBITDA is expected to be in the range of $27 million to $29 million.

Full Year Fiscal 2018

• Cloud revenue is expected to be in the range of $521 million to $524 million.
• Total HCM revenue is expected to be in the range of $730 million to $735 million.
• HCM Adjusted EBITDA is expected to be in the range of $148 million to $152 million.

GUIDANCE:

sees FY2018 revenue of $730-735 million.

sees Q2 2018 revenue of $173-175 million.

For earnings history and earnings-related data on (CDAY) click here.

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