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Kronos Announces Tremendous First-Quarter Fiscal 2014 Financial Performance; Fast Approaching $1 Billion in Annual Revenue
[February 05, 2014]

Kronos Announces Tremendous First-Quarter Fiscal 2014 Financial Performance; Fast Approaching $1 Billion in Annual Revenue

CHELMSFORD, Mass. --(Business Wire)--

Kronos Incorporated today announced financial results1, company advancements, and customer successes for the first quarter of Fiscal 2014. Kronos (News - Alert) revenue for the quarter increased 9 percent to $243.4 million. Earnings before interest, tax, depreciation, and amortization (EBITDA) increased 18 percent to $78.7 million.

"Kronos experienced a tremendous start to Fiscal 2014, with superior execution across our global operation," said Aron Ain, Kronos chief executive officer. "The significant investments we have been making in key strategic areas - such as bringing unprecedented innovation and ease of use to workforce management applications; extending our Kronos Cloud solutions; continuing to expand our deep vertical market expertise; expanding our SMB offerings; and further bolstering our global product capabilities - are clearly making a difference for our customers every day. Kronos will soon celebrate crossing the exclusive $1 billion revenue mark as we continue our journey of strong growth as the undisputed leader and pace-setter in the global workforce management market."

First-Quarter News Facts

  • Explosive growth of the Kronos Cloud - Kronos workforce management cloud revenue increased 137 percent as new customers continued to choose the Kronos Cloud and existing customers accelerated the move of their on-premise instances to the Kronos Cloud. As the fastest-growing aspect of the company's business, the Kronos Cloud is experiencing significant expansion across all targeted vertical markets in both the enterprise as well as small and midsize business (SMB) segments. Kronos continues to aggressively invest in its cloud infrastructure in anticipation of even more rapid growth as organizations continue to embrace cloud computing. Today nearly 10,000 distinct organizations leverage the Kronos Cloud.
  • Speed of adoption continues to accelerate in SMB sector - Kronos is further expanding its leadership in workforce management through increasing adoption in the SMB sector. Driven by a significant investment in product development and a relentless focus across its engineering, services, and sales organizations, Kronos product bookings in the SMB sector increased a remarkable 46 percent.
    • Well established in the U.S. with rapidly accelerating adoption among new and existing customers across all business segments, the Kronos Workforce Ready® cloud suite is expanding into other countries around the world. The latest version of Workforce Ready includes expanded global capabilities for controlling absenteeism and managing overtime and employee leave; new applications to help SMBs minimize risk associated with labor law compliance such as Affordable Care Act (ACA) and the Family Medical Leave Act (FMLA); and a range of ease-of-use enhancements.
  • Innovation strategy drives product bookings - Recent innovations in Kronos workforce management solutions drove a strong 13-percent increase in product bookings during the quarter, with notable strength in areas such as workforce analytics, scheduling, and absence management. During the quarter, Kronos delivered a series of innovative new products and enhancements which transform the way organizations manage their workforces:
    • Uniting enterprise social networking and workforce management - By integrating popular enterprise social networking and collaboration capabilities with its unparalleled workforce management offering, the Kronos Workforce Central® suite now provides yet another innovative option to impact business performance.
    • Transforming big data workforce analytics with self-service visualization and exploration - By leveraging data visualization and exploration tools, the Kronos Workforce Analytics application now delivers on the promise of big data for workforce management by dramatically advancing the ability to quickly explore, understand, and act on critical workforce data to improve financial results. Workforce Analytics delivers: enhanced visibility including heat map visualization; an intuitive cause and effect analysis; and self-service analytics with guided discovery so managers can easily interpret data and react to improve cost savings and productivity.
    • Mobile workforce management any time, any place - Significant enhancements to Kronos award-winning smartphone and tablet applications - Workforce Mobile and Workforce Tablet - give managers and employees the peace of mind that comes from knowing their workforce management solution is available wherever and whenever they need it. The latest Kronos mobile applications include geo-fencing capabilities so organizations can leverage GPS coordinates to define locations where employees can clock in and out.
    • Bringing innovation in consumer and biometric technology to the time clock - The updated Kronos InTouch® time clock, which is built for the cloud, incorporates new biometric technology for enhanced processing speed; support for more employee records; a new optical sensor for unrivaled accuracy of authentication of employees; and communicates information through WiFi (News - Alert) when an Ethernet connection is not available or desired.
  • Undisputed global market leader - Kronos remains the world's leading supplier of workforce management solutions, according to a new report by IHS. IHS (News - Alert) data shows that Kronos has 37 percent of the Americas market share and 25 percent of worldwide market share. The report also highlights that Kronos is growing twice as fast as the worldwide workforce management market. Organizations in more than 100 countries use Kronos workforce management solutions every day.
  • Employer of choice - Based on leading edge workplace practices including leadership, employee appreciation, workplace flexibility, benefits, and compensation, Kronos has again been recognized as a Top Place to Work. Kronos ranked the fourth-best place to work among top large employers in Massachusetts, where the company is headquartered, and has achieved a similar distinction in other regions in North America and Asia. Kronos hired more than 620 employees around the world in the past 12 months, and currently has more than 150 job openings worldwide, as its employee population approaches 4,000.
  • Customer successes around the globe - In the first quarter of Fiscal 2014, Kronos signed agreements with organizations around the world such as: America National Insurance Company, a major American insurance corporation headquartered in Texas; City of Tallahassee, the capital of Florida; Famous Dave's of America, developer, owner, and operator of franchise barbeque restaurants; Hercules Offshore, a leading global provider of offshore contract drilling and liftboat services; HUGO Boss AG (UK), a market leader in the premium and luxury segment of the apparel market; Mater Health Services (AUS), a leading not-for-profit provider of health services in Queensland; Midwest Health, manager of some of the Midwest's premier senior healthcare communities, including independent, and assisted living facilities and health centers; Nassau University Medical Center, a Level I Trauma Center and teaching hospital in Long Island, New York; Nova Southeastern University, a private university serving more than 28,000 undergraduate and graduate students in the U.S. state of Florida; Regal Entertainment Group, operator of the largest theatre circuit in the U.S.; University of Virginia Medical Center, an academic health system that includes a 604-bed hospital, the UVA School of Medicine, UVA School of Nursing, a Level I trauma center, nationally recognized cancer, and heart centers and primary and specialty clinics throughout Virginia; Walter Energy, a leading metallurgical coal producer for the global steel industry; Wayne State University Physician Group, one of the largest non-profit multispecialty physician groups in southeast Michigan; and YMCA of Greater Houston, one of Houston's leading non-profits.

Supporting Resources

About Kronos Incorporated

Kronos is the global leader in delivering workforce management solutions in the cloud. Tens of thousands of organizations in more than 100 countries - including more than half of the Fortune 1000® - use Kronos to control labor costs, minimize compliance risk, and improve workforce productivity. Learn more about Kronos industry-specific time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications at Kronos: Workforce Innovation That Works.

© 2014 Kronos Incorporated. Kronos, the Kronos logo, Workforce Central, and InTouch are registered trademarks and Workforce Ready, Workforce Analytics, Workforce Mobile, Workforce Tablet, and Workforce Innovation That Works are trademarks of Kronos Incorporated or a related company. All other trademarks are property of their respective owners.

Footnote 1: All financial information within this press release is presented using non-GAAP financial measures. Kronos believes that non-GAAP measures of financial results provide useful information regarding certain financial and business trends relating to Kronos' results of operations. Non-GAAP revenue consists of GAAP revenue excluding the effect of the write-down of deferred revenue associated with purchase accounting for certain acquisitions and includes timing adjustments related to international product deliveries which management includes when evaluating operating results. Product bookings represent gross product value of product orders and the product equivalent value of SaaS (News - Alert) orders. EBITDA consists of GAAP income from operations excluding: (1) share-based compensation expense for stock options and stock awards in accordance with ASC (News - Alert) 718; (2) amortization of capitalized software development costs; (3) depreciation of property, plant and equipment; (4) amortization of acquired intangible assets; (5) acquisition-related expenses including advisory, legal, accounting, acquired employee-related costs, and integration costs; and (6) consulting expenses that are excluded from the definition of EBITDA under the terms of the Company's Credit Agreement.

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