Bloomington-based HR software company Ceridian changing name in rebranding effort

Bloomington-based Ceridian HCM Holding Inc. is changing its name to Dayforce in 2024, as it spreads that brand globally and adds artificial intelligence features to its products.

Dayforce is the company's signature human capital management software platform for employers for managing payroll, taxes, benefits, rewards and other human resource functions.

"Dayforce represents our products, company and community at their best, so it is only fitting that we are doubling down on the brand as we look to accelerate our growth as the go-to global people platform," David Ossip, chair and co-CEO of Ceridian, said in a news release.

The move, he said, also creates clarity for customers and employees.

The roots of Ceridian go back to Control Data Systems and was a public company before being taken private in 2007 by a private equity firm. Five years ago, it filed what was then the largest initial public offering in Minnesota and started trading publicly again.

The company acquired Toronto-based Dayforce in 2012 and has become its largest source of revenue.

Ceridian had provided similar business services to corporate human resource departments, but Dayforce did so on a common platform that makes it easier for large corporations to manage their various HR functions.

"Today's workforce looks nothing like the past. It is boundless — ever-changing, borderless, and always on — giving companies a once-in-a generation opportunity to radically transform," said Leagh Turner, Ceridian's other co-CEO. "With this as a backdrop, we knew it was time to usher in a brand-new Dayforce."

The total market for human capital management software is valued at about $21.8 billion and expected to grow to $33.4 billion over the next five years, according to industry research firm Mordor Intelligence. Among top competitors are SAP, Oracle, Paycom, Workday and UKG.

The market is healthy, said Matthew Pfau, an analyst with William Blair.

"While many areas of software are seeing challenges with customers looking for ways to reduce spending, [human capital management] software providers continue to see new and existing customers willing to spend more with them," Pfau wrote in a research note this summer.

To stay competitive in the crowded field, Ceridian has talked in the past few earnings calls about its AI adoption both internally and for its customers.

At the consumer conference, it introduced a new AI feature called Dayforce Co-Pilot, which automates repetitive tasks.

"This new AI teammate can help improve workplace productivity by automating routine tasks such as generating job descriptions, answering HR related questions, or by finding and resolving anomalies in payroll data," Eric Glass, chief marketing and communications officer at Ceridian, said in an email.

Last year, Ceridian lost $73.4 million but has been profitable in each of the first two quarters of 2023. Revenue grew 22% to $1.2 billion last year.