Ceridian HCM Holding Inc. (NYSE:CDAY) Q2 2020 Earnings Conference Call - Final Transcript
Aug 05, 2020 • 05:00 pm ET
[Operator Instructions] Your first question comes from the line of Siti Panigrahi from Mizuho Group.
Hi. This is Michael Berg on for Siti. Congrats on a great quarter. I wanted to ask real quick. I saw you had some nice new additions this quarter, actually increased from Q1. And you mentioned that Q3 is -- correct me if I'm wrong, is on pace for a record new bookings quarter. So how can we expect in terms of net new additions trending from here on for the rest of the year? Is it going to be close to the pre-COVID levels of 150 to 200 new adds? And what are the size of those new customers? Are they larger or increased revenues? Looking at your 13% increase in Dayforce revenue per customer in trailing 12 months, I'm wondering if that applies to your new customers as well.
David D. Ossip
Yeah. So Mike, let me answer the last question. Yes, it does. The incremental revenue per new client went up by 68% in the quarter. So we're very pleased with that. So I would expect in Q3 to see the trend continue, where the trailing 12-month Dayforce revenue per client will continue to increase. As to the start of your first question, in terms of the number of adds, as you know, it fluctuates quarter-to-quarter. I would look at Q3 and Q4 probably combined, but more so, I would look at the product of the number of adds multiplied by the incremental Dayforce revenue per client, which obviously we would expect to go up.
All right. That helps clarify it. And then a quick follow-up. Is there anything competitively or -- just in the market in general for new business that you feel like will be key to point out? Any color or commentary on just the market in general you're seeing and for pipeline volume?
David D. Ossip
As I pointed out, our shift to digital marketing has worked very well for us. We've seen attendance at our virtual summits go up 2 times year-over-year. As I mentioned, we're very confident on Q3, and we expect Q3 sales to be in line with our targets that we set at the beginning of the year before COVID began. So there's obviously been an acceleration of sales pipeline and momentum with inside the business. I would say that we're doing quite well competitively.
[Operator Instructions] Your next question comes from the line of Bryan Bergin.
Hi, good evening. Thank you. I wanted to ask about implementation pace. So can you give us a sense how the pace of the pipeline and the signings is converting to implementation in live clients? Curious if you're seeing any material deferrals by some signed clients. And really just how the behavior has changed from, let's say, April, May to kind of July?
David D. Ossip
So as mentioned in the shareholder letter, clients continue to go live. And obviously, we're very pleased with that. In terms of how bookings translate into revenue, generally, it takes