Dayforce sees lower-than-expected second-quarter revenue (May 7)

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(This May 7 story has been corrected to remove an incorrect reference to muted spending in the headline and paragraph 1; and to drop paragraphs 3 and 4 that focused on the job market and the economy)

(Reuters) – Human resources software provider Dayforce on Wednesday forecast second-quarter revenue below market estimates.

Shares of the Minneapolis, Minnesota-based company fell 10% following the results.

Dayforce expects its total second-quarter revenue to be between $454 million and $460 million, below analysts’ average estimate of $465.5 million, according to data compiled by LSEG.

It forecast full-year revenue between $1.93 billion and $1.94 billion, in line with estimates of $1.93 billion.

The projections come in contrast with those of larger rival ADP, which raised its annual revenue forecast last week on the back of resilient enterprise demand and recent acquisitions.

Dayforce, formerly known as Ceridian, provides cloud-based payroll, workforce and human capital management software to enterprise clients globally.

The company in February announced a workforce reduction of about 5%, aiming to streamline its operations and achieve annual cost savings of about $65 million.

It posted total revenue of $481.8 million for the quarter ended March 31, compared with expectations of $476.7 million. Excluding float, the total quarterly revenue was $426.5 million.

Float revenue refers to the earnings or interest a company generates from holding cash or other liquid assets for a period before using them for their intended purpose.

The company earned 58 cents per share on an adjusted basis in the first quarter, compared with estimates of 55 cents per share.

(Reporting by Meghana Khare; Editing by Shreya Biswas)