The number of live Dayforce customers increased by 6.1% YoY to 6,730 at the end of Q3 2024. This expansion is a key driver of recurring revenue growth, particularly in the Dayforce segment.

Dayforce recurring revenue per customer grew to $159,496 for the trailing twelve months ended September 30, 2024, compared to $138,838 in the prior year. This increase reflects the growing average size of customers and increased adoption of the full HCM suite.

The company invested $52.4 million in software development during Q3 2024, with $29.5 million in research and development expense and $22.9 million in capitalized software development costs. This ongoing investment supports future product enhancements and innovation.

Management's focus on cost management and revenue growth is reflected in the improved gross margins, which increased by 330 basis points YoY. This indicates effective operational execution and resource allocation.

Management is actively working to remediate the GITC Material Weakness related to IT controls over financial reporting, with ongoing efforts to enhance risk assessments, improve training, and strengthen user access controls. Full remediation is expected by the end of 2024.

Selling and marketing expenses increased by 39.8% YoY, driven by higher personnel-related costs and advertising expenses related to rebranding. This indicates a strategic focus on expanding market presence and brand awareness.

The company acknowledges that its stock price may continue to experience wide fluctuations and volatility. This volatility is influenced by various factors, including market conditions, economic recession, and announcements by the company and its competitors.

The share repurchase program, while intended to enhance shareholder value, may increase the volatility of the market price of the company's stock and potentially reduce market liquidity.

Changes in laws and regulations, such as those affecting tax withholding or remittance timing, could reduce average customer fund balances and float revenue. A 100 basis point decrease in market investment rates would result in an estimated $26 million decrease in float revenue over the ensuing twelve-month period.

The increase in live Dayforce customers and Dayforce recurring revenue per customer indicates a strengthening competitive position in the HCM market. The company's ability to attract larger customers and expand its HCM suite offerings contributes to this success.

The company has completed its transition to Dayforce, Inc., reflected in increased spending on sales and marketing. This rebranding effort aims to strengthen brand recognition and market positioning.

The company acknowledges that float revenue is subject to market conditions and any change in regulations. This is a reflection of the competitive landscape.

Increased gross margins, driven by revenue growth outpacing cost increases, indicate improvements in operational efficiency. This suggests better cost management and resource allocation.

Recurring cost of revenue increased by 8.6% YoY, primarily due to additional labor-related costs and increased costs of hosting applications to support the growing Dayforce customer base. This indicates the need for continued focus on scalability and efficient resource utilization.

Increased amortization expense, particularly related to the Ceridian trade name, negatively impacted operating profit. This highlights the importance of managing intangible asset values and amortization schedules.

The company continues to invest significantly in software development, allocating $52.4 million in Q3 2024. This investment supports ongoing innovation and enhancement of the Dayforce platform.

The company's ability to attract larger customers and expand its HCM suite offerings demonstrates the value of its innovative technology and platform capabilities.

Dayforce provides continuous real-time calculations across all modules to enable, for example, payroll administrators access to data through the entire pay period, and managers access to real-time data to optimize work schedules. The platform is designed to drive efficiencies for our customers and their employees.

The company initiated a share repurchase program authorizing the purchase of up to $500 million of common stock. This reflects management's confidence in the company's future prospects and cash flow generation.

The company completed the purchase of 100% of the outstanding shares of eloomi A/S. The goodwill arising from the eloomi acquisition is primarily attributable to the potential to achieve synergies and other cost savings through integration with our existing operations.

The company continues to invest significantly in software development, allocating $52.4 million in Q3 2024. This investment supports ongoing innovation and enhancement of the Dayforce platform.

The defined benefit plans and postretirement benefit plan were terminated with an effective date of September 30, 2024. We anticipate that we will reflect the plan terminations within our condensed consolidated balance sheets on our next remeasurement date of December 31, 2024.

The company's revenue growth and customer expansion reflect the overall growth and demand in the human capital management (HCM) software market.

The company's revenue is subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the Canadian Dollar.

The company acknowledges that float revenue is subject to market conditions and any change in regulations. This is a reflection of the competitive landscape.