Dayforce

Moat drivers and durability: 1) Switching costs (score ~85, weight high). Payroll, tax, time, benefits, and talent run on a single database and are woven into compliance and scheduling processes. Implementation effort, data model differences, and regulatory risk make switching costly.

Gross revenue retention was 98 percent in 2024 and live customers rose to roughly 6,876 at year‑end and over 7,000 by Q3 2025, supporting stickiness. 2) Intangibles (score ~70, weight medium).

Dayforce is repeatedly recognized by major analysts and highlights AI features and Wallet adoption; brand credibility in mid‑market and enterprise remains solid. 3) Cost advantages (score ~55, weight medium‑low).

Scale in payroll operations and hosting plus float revenue support unit economics, but competitors are also scaled. 4) Network effects (score ~25, weight low). Limited two‑sided effects; value scales more with product breadth than user network. 5) Efficient scale (score ~50, weight low).

HCM is competitive but oligopolistic in payroll for larger enterprises. Key erosion risks: aggressive competition from Workday, ADP, UKG, Paycom/Paylocity; potential AI feature parity; and macro shifts that reduce customer employee counts.

Evidence: 98 percent gross revenue retention (2024), ongoing customer adds, Gartner leadership mentions, and Wallet milestones.