The Dayforce customer base increased to 6,876 customers, representing approximately 7.62 million global employees, demonstrating successful customer acquisition and expansion within the enterprise segment. This growth is a key driver of recurring revenue.

The acquisition of eloomi, a learning experience platform software provider, was completed on February 1, 2024, expanding Dayforce's HCM suite and potentially driving incremental value for customers. The acquisition adds new capabilities and may contribute to future revenue growth.

The company continues to expand operations and sales into new international markets, which exposes it to risks such as managing international operations, localizing product offerings, and complying with local laws and regulations. These risks could adversely affect operations or the business as a whole.

Management successfully remediated the previously identified material weakness in general information technology controls (GITCs) related to user access and change management over the IT systems supporting Canada trust and Powerpay revenue processes. This remediation demonstrates improved internal controls and financial reporting.

The company continues to invest in software development, with $213.1 million spent in 2024, consisting of $123.0 million of research and development expense and $90.1 million of capitalized software development. This investment is crucial for maintaining a competitive edge and meeting customer needs.

On February 26, 2025, an efficiency plan was announced, including an expected reduction of approximately 5% of the current workforce, indicating a focus on cost management and operational efficiency. This may impact employee morale and service quality in the short term.

The company acknowledges that a significant portion of its market capitalization depends on sustaining the revenue growth trajectory of its Cloud solutions. Failure to continue growing revenue from Cloud solutions may reduce the revenue growth rate.

The company recognizes the ongoing and evolving cybersecurity risks that threaten the confidentiality, integrity, and availability of its IT systems and the data stored therein. A successful cyberattack could have a material adverse effect on the business, market brand, financial condition, and results of operations.

The company acknowledges the increasing reliance on AI and the potential risks associated with evolving legal and regulatory frameworks around the development and use of AI. Failure to comply with these frameworks could adversely affect the business, results of operations, and financial condition.

The market for HCM technology solutions is highly competitive and subject to changing technology and shifting client needs. The company faces competition from firms that provide both integrated and point solutions for HCM, as well as with local providers in each jurisdiction that it operates.

The company has and will continue to expand operations and sales into new international markets. These international operations are subject to risks that could adversely affect those operations or the company's business as a whole.

The markets in which the company participates are highly competitive, and if the company does not compete effectively, it could have a material adverse effect on its business, financial condition, and results of operations.

Total gross margin for the year ended December 31, 2024 increased 340 basis points compared to December 31, 2023, and gross profit increased by $165.6 million, or 25.6%. This increase was primarily due to the increase in revenue, including float revenue, which outpaced the increase in cost of revenue.

Cloud recurring gross margin was 78.9% for the year ended December 31, 2024, compared to 77.0% for the year ended December 31, 2023. The increase in Cloud recurring gross margin was primarily due to the increase in revenue, including float revenue, and due to the growth of the proportion of Dayforce customers live for more than two years.

General and administrative expense increased $102.8 million, or 39.1%, for the year ended December 31, 2024, compared to the year ended December 31, 2023. The increase in general and administrative expense was primarily driven by an increase of $59.5 million in amortization of intangible assets and $41.4 million of increases in various expense categories.

The Dayforce Co-Pilot and AI agents are being leveraged to improve productivity and planning. The company is continuously evolving its platform to address the needs of organizations.

The company believes that its modern Cloud technology stack, agile design and development methodologies, and efficient software deployment process enable it to innovate quickly in response to industry trends.

The company's aging software infrastructure, technology, and sophistication of these systems, and its migration to new platforms, has and will continue to lead to increased costs, vulnerability to cyber-attack, or disruptions in operations.

The board of directors approved a share repurchase program authorizing the purchase of up to $500 million of issued and outstanding common stock. This indicates management's belief that shares are undervalued and confidence in future cash flow generation.

The company completed the purchase of eloomi A/S, a learning experience platform software provider. This acquisition expands Dayforce's HCM suite and potentially drives incremental value for customers.

The company completed the refinancing of its 2018 Senior Secured Credit Facility, which resulted in a loss on debt extinguishment of $4.3 million. The new facility has different interest rates and terms.

The company believes that Tech for Good and responsible innovation can have a positive impact on all stakeholders, including employees. The Dayforce Wallet product provides individuals with on-demand access to their earned pay, which enables them to better cover both everyday expenses as well as any urgent or unplanned costs.

Through our employee-led charity Dayforce Cares, we provide financial support to individuals and families struggling with basic needs and quality of life across the U.S. and Canada and to local youth organizations in Mauritius.

Our disclosures and ambitions related to sustainability matters, which include environmental, social, and governance matters, may expose us to risks that could adversely affect our reputation and performance.

The company's business depends on the overall demand for HCM applications and on the economic health of its current and prospective clients. If economic conditions 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.

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 or prevent the function or value of our existing products and services.

Failure to comply with privacy, data protection, and information security laws and regulations could have a material adverse effect on our business, results of operations or financial condition, or have other adverse consequences.