Ceridian HCM Holding Inc. (NYSE:CDAY) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 05:00 pm ET

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Ceridian HCM Holding Inc. (NYSE:CDAY) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings and welcome to the Ceridian Second Quarter 2020 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the call over to your host for today, Jeremy Johnson, Vice President of Finance and Investor Relations at Ceridian. You may begin, sir.

Executive
Jeremy Johnson

Thank you, and good evening. On the call today, we have Ceridian's CEO, David Ossip; and CFO, Arthur Gitajn. Before I hand the call to David for some brief remarks, allow me to provide a disclaimer regarding forward-looking statements. This call may include forward-looking statements about our current and future outlook, guidance, plans, expectations and intentions, results, levels of activities, performance, goals or achievements or any other future events or developments. These statements are based on management's reasonable assumptions and beliefs in light of information currently available to us. Listeners are cautioned not to place undue reliance on such statements.

Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those set forth in such statements. We refer you to our previous filings with the SEC for information regarding the significant assumptions underlying forward-looking statements and certain risks and other factors that could affect our future performance and ability to deliver on these statements.

We undertake no obligation to update or revise any forward-looking statements made on this call, except as may be required by law. The second quarter stockholder letter, earnings release and quarterly report on Form 10-Q have been furnished or filed with the SEC and will be available on the SEC's EDGAR database in the U.S. and the SEDAR database in Canada as well as on the Ceridian Investor Relations website at investors.ceridian.com.

With that, I will turn the call over to David.

Executive
David D. Ossip

Thanks, Jeremy. Good evening, everyone, and thank you for joining our earnings call. I hope everyone is staying healthy and safe during this time of uncertainty.

Before we go to Q&A, I want to spend a few minutes on some important points from our stockholder letter. First, we had a strong quarter. Despite COVID-19 headwinds, Dayforce recurring revenue ex float on a constant currency basis grew by 24.2%. In addition, Cloud recurring services gross margin increased by 140 basis points to 70.7%, and excluding float revenue, it expanded by 360 basis points.

Second, we continue to see strong demand for Dayforce. Sales in the second quarter increased year-over-year, and it was our best second quarter in our history. Sales momentum and pipeline has accelerated, and we expect sales in the third quarter to also be a record-setting quarter and in line with our pre-COVID-19 growth targets.

Third, Dayforce Wallet was launched in the second quarter, and it's going well. We have over 40 customers piloting the Dayforce Wallet and have over 100 more who have signed and are ready for implementation. While it's too early to disclose specific metrics, we are pleased with the product and confident in the business model.

I would now like to