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Revenue
 12 Months Ended
Dec. 31, 2020
Revenue From Contract With Customer [Abstract]  
Revenue

13. Revenue

Our Solutions

We categorize our solutions into two categories: Cloud and Bureau offerings.

 

•

 

Cloud revenue is generated from solutions that are delivered via two cloud offerings, Dayforce and Powerpay. The Dayforce offering is a single application with continuous calculation that offers a comprehensive range of functionality, including global HR, payroll, benefits, workforce management, and talent management on web and native iOS and Android platforms. Dayforce recurring revenue is primarily generated from monthly recurring fees charged on a per-employee, per-month (“PEPM”) basis and the allocation of investment income generated from holding Dayforce customer funds in trust before funds are remitted to taxing authorities, Dayforce customer employees, or other third parties. Dayforce professional services and other revenue is primarily generated from implementation and post go-live professional services revenue. Other sources of Dayforce revenues include revenue from the sale, rental and maintenance of time clocks; revenue from the sale of third-party services; and billable travel expenses for Dayforce customers. The Powerpay offering is our solution designed primarily for small market Canadian customers, which typically have fewer than 20 employees. Powerpay recurring revenue is primarily generated from recurring fees charged on a per-employee, per-process basis and the allocation of investment income generated from holding Powerpay customer funds in trust before funds are remitted to taxing authorities, Powerpay customer employees, or other third parties. Typical processes include the customer’s payroll runs, year-end tax packages, and delivery of customers’ remittance advices or checks. Powerpay professional services revenue is primarily generated from the setup of the Powerpay customer on their platform.

 

•

Bureau revenue is generated primarily from solutions delivered via a service-bureau model. These solutions are delivered via three primary service lines: payroll, payroll-related tax filing services, and outsourced human resource solutions. Revenue from payroll services is generated from recurring fees charged on a per-process basis. Typical processes include the customer’s payroll runs, year-end tax packages, and delivery of customers’ remittance advices or checks. In addition to customers who use our payroll services, certain customers use our tax filing services on a stand-alone basis. Our outsourced human resource solutions are tailored to meet the needs of individual customers, and entail our contracting to perform many of the duties of a customer’s human resources department, including payroll processing, time and labor management, performance management, and recruiting. We also perform individual services for customers, such as check printing, wage attachment and disbursement, and Affordable Care Act (“ACA”) management. Additional items included in Bureau revenue are fees for custom professional services to Bureau customers; the allocation of investment income generated from holding Bureau customer funds in trust before funds are remitted to taxing authorities, Bureau customer employees, or other third parties; consulting services related to Bureau offerings; revenue from the sale of third party services to Bureau customers; and Excelity revenue.

Customer Information

No single customer accounts for 1% or more of our consolidated revenue for any of the periods presented.

Disaggregation of Revenue

Revenue by solution and category was as follows:

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(Dollars in millions)

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Cloud

 

 

 

 

 

 

 

 

 

 

 

 

Dayforce

 

 

 

 

 

 

 

 

 

 

 

 

Recurring services

 

$

500.2

 

 

$

429.0

 

 

$

325.7

 

Professional services and other

 

 

148.6

 

 

 

140.7

 

 

 

111.8

 

Total Dayforce revenue

 

 

648.8

 

 

 

569.7

 

 

 

437.5

 

Powerpay

 

 

 

 

 

 

 

 

 

 

 

 

Recurring services

 

 

79.5

 

 

 

89.0

 

 

 

90.0

 

Professional services and other

 

 

1.1

 

 

 

1.3

 

 

 

1.3

 

Total Powerpay revenue

 

 

80.6

 

 

 

90.3

 

 

 

91.3

 

Total Cloud revenue

 

 

729.4

 

 

 

660.0

 

 

 

528.8

 

Bureau

 

 

 

 

 

 

 

 

 

 

 

 

Recurring services

 

 

110.5

 

 

 

162.1

 

 

 

209.3

 

Professional services and other

 

 

2.6

 

 

 

2.0

 

 

 

2.6

 

Total Bureau revenue

 

 

113.1

 

 

 

164.1

 

 

 

211.9

 

Total revenue

 

$

842.5

 

 

$

824.1

 

 

$

740.7

 

 

Recurring services revenue includes float revenue of $52.3 million, $80.2 million, and $67.0 million for the year ended December 31, 2020, 2019, and 2018, respectively.

Revenue by Geographic Area

The country in which the revenue is recorded is determined by the legal entity with which the customer has contracted. Revenue by country was as follows:

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(Dollars in millions)

 

United States

 

$

579.3

 

 

$

578.1

 

 

$

513.8

 

Canada

 

 

223.5

 

 

 

237.0

 

 

 

224.0

 

Other

 

 

39.7

 

 

 

9.0

 

 

 

2.9

 

Total revenue

 

$

842.5

 

 

$

824.1

 

 

$

740.7

 

 

Contract Balances

The Company records a contract asset when revenue recognized for professional services performance obligations exceed the contractual amount of billings for implementation related professional services. Contract assets were $55.2 million and $43.2 million as of December 31, 2020, and 2019, respectively. Contract assets expected to be recognized in revenue within twelve months are included within Prepaid expenses and other current assets, with the remaining contract assets included within Other assets on our consolidated balance sheets.

Deferred Revenue

Deferred revenue primarily consists of payments received in advance of revenue recognition. The changes in deferred revenue were as follows:

 

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Dollars in millions)

 

Deferred revenue, beginning of period

 

$

25.5

 

 

$

23.2

 

New and acquired billings

 

 

432.6

 

 

 

365.5

 

Revenue recognized

 

 

(433.9

)

 

 

(363.5

)

Effect of exchange rate

 

 

0.2

 

 

 

0.3

 

Deferred revenue, end of period

 

$

24.4

 

 

$

25.5

 

 

Transaction Price for Remaining Performance Obligations

In accordance with ASC Topic 606, the following represents the aggregate amount of transaction price allocated to the remaining performance obligations that are unsatisfied as of the end of the reporting period.

As of December 31, 2020, approximately $917.1 million of revenue is expected to be recognized over the next three years from remaining performance obligations, which represents contracted revenue for recurring services and fixed price professional services, primarily implementation services, that has not yet been recognized, including deferred revenue and unbilled amounts that will be recognized as revenue in future periods. In accordance with the practical expedient provided in ASC Topic 606, performance obligations that are billed and recognized as they are delivered, primarily professional services contracts that are on a time and materials basis, are excluded from the transaction price for remaining performance obligations disclosed above.