What happened
Shares of Ceridian HCM (CDAY +0.00%) jumped on Friday, rising 10.2% by the time the market closed.
The stock's gain follows the third-quarter update of the company, which specializes in human-capital-management software, and featured better-than-expected top- and bottom-line results.
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So what
Revenue in the tech company's third quarter rose 13.6% year over year, to $202.3 million, beating analysts' average forecast for revenue of $196.5 million. The company's earnings per share was $0.11, up from $0.10 in the year-ago quarter and beating a consensus estimate for $0.10.
"During the third quarter, we continued to see strong market demand for our solutions," said Ceridian CEO David Ossip in the company's earnings release. He also noted that its Dayforce recurring revenue was up 32.6% year over year, coming in at $109.4 million. Further, when including "revenue from Dayforce professional services and other, total Dayforce revenue grew 30.2%, to $143.7 million, which was above 30% growth for the first time since the third quarter of 2018," the CEO added.
Now what
Notably, Ossip said Ceridian expects an acceleration in Dayforce revenue in Q4, driven by Dayforce recurring revenue.
The company lifted its outlook for the full year, guiding for 2019 revenue between $822 million and $825 million. This is up from a previous forecast for revenue between $810 million and $815 million.
