Ceridian Delivers Solid Third-Quarter Results Despite Foreign-Exchange Headwinds

Narrow-moat Ceridian enjoyed continued momentum in its third quarter despite challenging macroeconomic conditions and foreign-exchange headwinds. Group revenue increased 23% year on year, or 25% on a constant-currency basis, reflecting strong client wins, a further skew upmarket, and higher module uptake per client. A greater contribution from ultra-high-margin interest income revenue, customer service efficiencies including greater automation and lower labor costs, and greater operating leverage on a larger client base supported impressive year-on-year adjusted EBITDA margin expansion of 480 basis points to 20.1%.