The number of live Dayforce customers increased to 6,393 in 2023 from 5,993 in 2022, representing approximately 6.84 million global employees. This indicates successful customer acquisition and expansion within existing accounts.

Dayforce recurring revenue per customer increased to $146,771 in 2023 from $121,425 in 2022, driven by the company's expansion within the enterprise segment. This suggests a focus on larger clients and more comprehensive solution adoption.

The purchase of 100% of the outstanding shares of eloomi A/S, a learning experience platform software provider, was completed on February 1, 2024. This acquisition enhances the company's talent intelligence solutions.

Tax migration from legacy infrastructure to the same platform as Dayforce contributed approximately 490 basis points of growth for the year ended December 31, 2023 to Dayforce recurring revenue, excluding float.

The company recently engaged in a rebalancing of its global workforce that particularly impacted its support organization, which may result in disruption as it fills existing positions in its APJ geographies.

The Board of Directors approved plans to transition the Company's name and branding from Ceridian HCM Holding Inc. to Dayforce, Inc. This transition involves assessing the impact on the carrying amount of the Ceridian trade name intangible asset.

The company states that its revenues from Cloud solutions have grown substantially and that a significant portion of its market capitalization is based upon maintaining high Cloud solutions growth rate. Failure to maintain this growth rate could have a material adverse effect on market capitalization.

The company acknowledges that its payroll and tax processing services involve the movement of significant funds and are subject to an increasingly complex series of regulations and laws. Disruption of fund movement could have significant consequences, including defaults under customer agreements and exposure to monetary damages.

The company's aging software infrastructure, technology, and sophistication of these systems, and the migration to new platforms, has and will continue to lead to increased costs, vulnerability to cyber-attack, or disruptions in operations that could have a material adverse effect on its business, market brand, financial condition, and results of operations.

The company acknowledges that the markets in which it participates are highly competitive and competition could intensify in the future. Key competitive factors include product functionality, scalability, customer service, and pricing.

The company's international growth strategy exposes it to risks including costs of establishing a market presence, localizing product and service offerings, difficulties in managing and staffing international operations, and increased reliance on partners to provide services in additional geographies.

The company depends on strategic relationships with third parties who provide services and license software. Any disruption in these relationships could adversely affect the company's business, financial condition, and results of operations.

Total cost of revenue increased 12.2% in 2023, while total revenue increased 21.5%. This indicates improvements in operational efficiency and cost management.

Selling and marketing expense decreased by 0.5% for the year ended December 31, 2023, compared to the year ended December 31, 2022. The reduction in selling and marketing expense is primarily driven by a reduction in commission expense

General and administrative expense increased 6.3% for the year ended December 31, 2023, compared to the year ended December 31, 2022. The increase in general and administrative expense is driven by increases in amortization of acquisition-related intangible assets and employee-related costs

Investment in software development was $198.5 million for 2023, compared to $162.2 million for 2022. This indicates a continued focus on enhancing the Dayforce platform.

Our Al Governance Framework closely evaluates the potential use of Al from idea through all key stages of the product development lifecycle.

Some of our applications include software covered by open source licenses. From time to time, there have been claims challenging the ownership of open source software against companies that incorporate such software into their products or applications.

Capital expenditures increased to $114.4 million in 2023 from $94.5 million in 2022, with the majority allocated to software and technology. This reflects a commitment to investing in future growth and innovation.

The company is shifting its focus to long term investments, which is reflected in the increase in capital expenditures for software and technology, and the acquisition of eloomi A/S.

In the third quarter of 2023, our Board of Directors approved plans to transition our Company's name and branding from Ceridian HCM Holding Inc. to Dayforce, Inc. Given the significance of this transition, we assessed the impact on the carrying amount of $167.2 million related to our Ceridian trade name intangible asset to determine whether an impairment exists, and/or if the asset is deemed to have a finite life and should be amortized.

We are committed to doing our part to help address the climate crisis. This includes actively working to decrease our carbon footprint by pursuing two near-term reduction targets that cover Scope 1, 2, and 3 emissions.

We encourage you to review our ESG Report for more detailed information which can be found on our website at https://www.dayforce.com/who-we-are/corporate-responsibility.

As of December 31, 2023, women represented approximately 50% of our global workforce, including approximately 44% of employees in manager-level roles and above, and approximately 36% in vice president-level roles and above.

Our business depends on the overall demand for HCM applications and on the economic health of our current and prospective clients. If economic conditions in the U.S., Canada, or in global markets deteriorate, clients may cease their operations, reduce headcount, delay or reduce their spending on HCM and other outsourcing services or attempt to renegotiate their contracts with us.

Regulatory requirements placed on our software and services could impose increased costs on us, delay or prevent our introduction of new products and services, and impair the function or value of our existing products and services.

We operate and are subject to tax in multiple jurisdictions. Audits, investigations, and tax proceedings could have a material adverse effect on our business, results of operations, and financial condition.