(Reuters) – Dayforce forecast first-quarter revenue below estimates on Wednesday due to waning demand for its payroll and human resources services, as small- and medium-sized businesses curtail spending due to macroeconomic uncertainty.
Shares of the Minneapolis, Minnesota-based company fell 3.1% in premarket trading.
Hiring in the U.S. labor market is slowing down, leading to lower demand for payroll, human resources management and other products offered by companies such as Dayforce.
U.S. job openings fell by the most in 14 months in December, although the hiring rate was steady and layoff rates low.
The company expects first quarter total revenue, excluding float, between $421 million and $427 million, below analysts’ estimates of $482.4 million, according to data compiled by LSEG.
Company forecasts a float revenue of $53 million in the quarter.
Float revenue refers to earnings or interest that a company generates from holding cash or other liquid assets for a period of time before using them for their intended purpose.
For the quarter ended Dec. 31, Dayforce posted a revenue of $465.2 million, compared with analysts’ estimates of $455.1 million.
On an adjusted basis, Dayforce earned 60 cents per share in the quarter, compared with estimates of 58 cents per share.
(Reporting by Kritika Lamba in Bengaluru; Editing by Sahal Muhammed)
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