[April 26, 2017] |
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Top-Ranked Workforce Management Vendor Kronos Reports Second-Quarter Results; Nearly 90 Percent of New Customers Choose Kronos Cloud
Kronos
Incorporated today announced financial results, company
advancements, and customer successes for the second quarter of Fiscal
2017. Kronos (News - Alert) recognized revenue for the quarter was $317 million.
Earnings before interest, tax, depreciation, and amortization (EBITDA)
was $91.2 million.1
"We had a solid second quarter, continuing our momentum with enterprise
customers expanding in the Kronos Cloud. During the quarter we secured
the second-largest software bookings transaction in our history from an
existing customer that expanded its use of a Kronos solution in the
Kronos Cloud," said Aron Ain, Kronos chief executive officer. "With a
robust pipeline across our entire product portfolio, we are poised for
continued growth as we prepare to celebrate our 40th
anniversary."
SaaS (News - Alert) Continues to Drive Recurring Revenue Growth Kronos
again delivered strong growth in the cloud, with subscription revenue
increasing 46 percent.
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Nearly 90 percent of new customer bookings came from an array of
Kronos Cloud offerings, which marks the 9th consecutive
quarter that cloud bookings accounted for at least 80 percent of new
deals.
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More than 21,000 organizations around the globe now run in the Kronos
Cloud, representing the majority of the company's global customer base.
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Long-standing, on-premise customers continue to migrate to
software-as-a-service. Significant on-premise to SaaS conversions
included: a global leader in the manufacturing of construction and
building materials; a worldwide manufacturer of medical equipment with
more than 25,000 employees; the local government of a large city in
southern Florida; a private university in the Northeast U.S. with
10,000 students; a high-end Italian fashion company; a movie theater
chain with hundreds of locations in the U.S.; a quick-service
restaurant with more than 2,500 locations in the U.S.; and a major
multinational sportswear retailer.
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Significant new Kronos Cloud deployments include: a private research
university in Washington, D.C.; the local government of a city in
central Louisiana; a boutique hospitality organization specializing in
operating fine dining establishments; a multinational manufacturer of
hot tub spas and bathtubs; and a country club in California known for
dining, golfing, and tennis amenities.
Large Workforce Management Deals Globally
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Kronos secured a multimillion dollar transaction - the second-largest
software bookings transaction in its history - with one of the largest
healthcare organizations in the U.S. expanding its use of Kronos with
multiple strategic products hosted in the Kronos Cloud, including
mobile, scheduling, and attestation for more than 160,000 employees.
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Other large transactions included a discount retailer with more than
200,000 employees; a global food services and facilities organization
with more than 250,000 employees; a large multinational manufacturer
of automotive parts and equipment; and a leader in landscaping
services with clients in a variety of industries across the U.S. These
organizations expanded their use of Kronos to accommodate growth or
add additional applications; some chose Kronos to replace competitive
workforce management applications; and others automated manual
processes for the first time or replaced legacy homegrown applications.
Human Capital Management Momentum (News - Alert) Long known as the global
leader in workforce management, Kronos is rapidly expanding its
footprint in the human capital management (HCM) market as customers
leverage the Kronos HCM suite to engage employees, from pre-hire to
retire, with insight and data to help drive performance. Recent HCM
highlights include:
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SaaShr celebrated its fifth anniversary as part of Kronos. SaaShr
is the most successful acquisition in the history of Kronos, growing
from a $5 million business to what will exceed $100 million in 2017.
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Customers are increasingly leveraging the full potential of Workforce
Ready, with more new customers purchasing a full suite of HCM
applications, including payroll and human resources.
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Subscription revenue for the Kronos Workforce Ready suite increased 57
percent year over year.
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Kronos and the Kronos partner channel combined to increase
implementations by 40 percent year over year.
Double-digit Year-to-date Increase in Product Bookings With
a double-digit year-to-date increase in product bookings, Kronos
continues to invest in product development and services enablement,
delivering enhancements and new innovations across its product and
services portfolio.
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Underscoring its focus on innovation, Kronos again claimed the top
ranking in Ventana Research's Value Index for Workforce Management.
The Value Index is an independent analysis of how well vendor
offerings meet buyers' requirements for software that enables and
supports global workforce management. In addition to being the overall
Value Index leader, Ventana Research also recognized Kronos and its
solutions in categories such as manageability of the product;
reliability of the product; and validation of the vendor.
WorkInspired Culture of Caring and Executive Recognition Kronos
has become widely recognized for its corporate culture, which emphasizes
a focus on caring for colleagues and customers.
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The most recent Global Employee Engagement Survey conducted by CEB for
Kronos revealed an employee engagement score of 87 percent. This
statistic is one in a range of proof points about exceptionally high
employee engagement t Kronos stemming from this survey completed by
nearly 90 percent of Kronos employees worldwide.
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Kronos has officially been certified
as a great workplace by independent analysts at Great Place to Work®.
Kronos earned this esteemed credential based on extensive ratings
given by its employees in an anonymous employee engagement survey
conducted by Great Place to Work. Based on the organization's
assessment, 96 percent of Kronos employees have great pride in the
company.
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Kronos was named one of the 2017 Best
Workplaces for Giving Back by Fortune magazine in
conjunction with consultancy Great Place to Work. Kronos' GiveInspired
corporate giving initiative is driven by a two-pronged approach:
to support causes that empower the next-generation workforce and give
back to communities where Kronites live and work.
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Two Kronos executives have been named finalists for prestigious
awards: David Almeda, chief people officer, is a finalist for the
Chief Human Resources Officer award hosted by HRO Today and
John McGregor, chief information officer, is a finalist for the Chief
Information Officer award hosted by the Boston CIO Leadership
Association.
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Kronos, with more than 5,000 employees worldwide, is actively hiring
and currently has nearly 300 job openings.
Other Highlights
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Deepening its expertise in and demonstrating its commitment to the
financial services market, Kronos
acquired Financial Management Solutions Inc. (FMSI), a leading
provider of workforce management and analytics applications for the
credit union and retail banking industry.
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Kronos hosted a range of KronosLIVE customer events on its multi-city
tour throughout the Asia-Pacific region, North America, and Latin
America, with more scheduled for May.
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Kronos
formed a strategic relationship with Press Ganey to facilitate
collaboration on behalf of joint customers to participate in research
and analysis. Combining data from the Kronos Workforce Central
solution and Press Ganey's National Database of Nursing Quality
Indicators, the research will assess, measure, and analyze the impact
of workforce characteristics and behaviors on both patient and
caregiver outcomes such as safety, quality, staff engagement, and
turnover.
Second Quarter Customer Success Around the Globe In the
second quarter of Fiscal 2017, Kronos signed agreements with
organizations around the world, such as: Americold Logistics, a
global leader in cold storage, refrigerated warehousing, trucking, and
freight logistics; Central Ohio Transit Authority, a public
sector transit agency serving Central Ohio; City Central Group,
an Australia cleaning and event services company; CSL, an
Australia-based multinational biotherapeutics company; Czarnowski
Display Service, a full-service exhibit and event marketing company; Fort
Worth Fire, serving the residents of Fort Worth, Texas; Health
First, a locally-owned, not-for-profit community healthcare system
serving the residents of Brevard County, Florida through its hospitals,
health insurance plans, and outpatient and wellness services; Hospital
For Special Care, a not-for-profit long-term care facility with
expertise for patients with a variety of special healthcare needs; Kyrene
Elementary School District, an Arizona public school district
with 25 schools, serving the communities of Tempe, Chandler and Phoenix,
Arizona; Merivale, a hospitality group in Australia; NOW Foods,
one of the largest independent manufacturers of natural products in the
U.S. health food store channel; Northeast Georgia Health System,
a top-ranked community health system serving the residents of
northeast Georgia; Penn Highlands Dubois, a leading health
center serving the community of west central Pennsylvania; Reyes
Holdings, a food service wholesaler distributing some of the
best-known food and beverage brands around the world; Rochester
Regional Health, a leading integrated health system in New York with
more than 15,000 employees; Roper St. Francis Healthcare, the
largest healthcare system for adults in Charleston, South Carolina with
more than 110 facilities in seven counties; Safelite AutoGlass (News - Alert)
, the nation's largest provider of vehicle glass repair and
replacement services with more than 7,800 MobileGlassShops and stores in
all 50 states; SSL, a world leading provider of innovative
satellites and spacecraft systems; St Lukes Cornwall Hospital, a
not-for-profit hospital serving the residents of the Hudson Valley in
New York; Teleflex Incorporated, a provider of specialty medical
devices for a range of procedures in critical care and surgery; Tempe
School District, a school district serving the Tempe, Arizona
region; and The Warrell Corporation, one of the top candy
manufacturing companies in North America.
Supporting Resources
About Kronos Incorporated Kronos is a leading provider of
workforce management and human capital management cloud solutions.
Kronos industry-centric workforce applications are purpose-built for
businesses, healthcare providers, educational institutions, and
government agencies of all sizes. Tens of thousands of organizations -
including half of the Fortune 1000® - and more than 40
million people in over 100 countries use Kronos every day. Visit www.kronos.com.
Kronos: Workforce Innovation That Works.
© 2017 Kronos Incorporated. All rights reserved. Kronos, the Kronos
logo, Kronos Workforce Ready, and Kronos Workforce Central are
registered trademarks and Workforce Institute, and Time Well Spent, and
Workforce Innovation That Works are trademarks of Kronos Incorporated or
a related company. See a complete list of Kronos
trademarks. All other trademarks, if any, 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 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 and compensation expenses
related to ordinary dividends; (2) amortization of capitalized software
development costs; (3) depreciation of property, plant, and equipment;
(4) amortization of acquired intangible assets; (5) acquisition-related
deferred revenue write-downs and expenses including advisory, legal,
accounting, acquired employee-related costs, and integration costs; and
(6) unusual costs related to relocation of corporate HQ and certain
consulting and financing-related expenses that are excluded from the
definition of EBITDA under the terms of the company's Credit Agreement.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170426005987/en/
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