[February 04, 2019] |
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Kronos Enjoys Strong First Quarter Results Led by HCM Momentum and Stellar Workforce Dimensions Adoption
Kronos
Incorporated today announced financial results, company
advancements, and customer successes for the first quarter of Fiscal
2019. Annual recurring revenue (ARR) bookings increased 24 percent with
total revenue for the quarter approaching $350 million.
"Following the strong momentum of closing the best quarter in the best
year in company history, we had an exciting start to Fiscal 2019," said
Aron Ain, Kronos (News - Alert) chief executive officer. "We continue to heavily invest
in our future - from aggressively growing our human capital management
(HCM) presence and riding the wave of Workforce Dimensions adoption, to
investing in the customer experience and further extending our deep
focus on being a great place to work - Kronos is on track to continue
growing our business in multiple dimensions. Following a strong close to
the first quarter, we're eyeing another record-breaking Fiscal 2019."
ARR Bookings Increased 24 Percent as HCM and Workforce Management
SaaS (News - Alert) Deals Surge ARR bookings continued to grow across HCM and
workforce management solutions, fueling a strong start to 2019.
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With essentially all new Kronos customers opting for a cloud solution,
more than 29,000 organizations worldwide are in the Kronos Cloud today.
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Subscription revenue, which is now the company's largest revenue
stream, grew 25 percent in the quarter and has exceeded maintenance
revenue for the first time in company history.
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Continued
investments in enhancing the world-class Kronos customer experience
fueled SaaS growth, as the company remains focused on converting
thousands of its long-standing, on-premise customers worldwide to a
modern Kronos Cloud solution.
Rapid Adoption of Kronos HCM Driven by Human Resources (HR) and
Payroll Enhancements Driven by market demand for an HCM
provider with deep industry expertise and the ability to deliver HCM for
the modern workforce - whether hourly or salaried, part-time, full-time,
or contractor - Kronos HCM bookings rose 57 percent in the first quarter
and 38 percent over the last 12 months.
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Kronos ushered in a new era for HCM with the launch
of Workforce Dimensions HCM in November, unifying talent
acquisition and onboarding, core HR, talent and performance
management, workforce management, and payroll in a single
next-generation solution.
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Approximately one-third of Workforce Dimensions deals in the quarter
included full-suite HCM.
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More than 23,000
organizations use a Kronos HCM solution with employee records in
85 countries.
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Enhancements
to the Kronos Workforce Ready HCM cloud suite included a new user
experience with fully responsive design; powerful predictive analytics
that help recruit, hire, manage, pay, and retain a thriving and
engaged workforce; and the introduction of Kronos Benefits Center to
streamline and automate benefits enrollment.
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Employee
Perspectives was named a 2018 Gold Stevie Award winner for best
new talent management solution.
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In November, Kronos held its largest payroll provider event with the 11th
annual Workforce Ready Partner Community Workshop.
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Significant Kronos HCM deals in the quarter included: one of the
largest and most complex commuter rail systems in North America; a
global distributor of raw material for equipment to the oil and gas
industry; one of the largest school districts in the nation serving
more than 100,000 students; a large non-profit organization focused on
youth development, charitable activities, and humanitarian work; a
care management and home healthcare provider; and a provider of
home-delivered refrigerated foods.
Workforce Dimensions, AIMEE, and Innovations Built on Kronos D5
Reshape the Future of Work After Workforce Dimensions
out-performed the company's most aggressive estimates in the first year
of availability, Kronos added more than a quarter million additional
hourly and salaried employee licenses in the first quarter of Fiscal
2019.
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Kronos
introduced AIMEE, an artificial intelligence (AI) engine
specifically built for managers and employees that analyzes massive
amounts of data in real time to provide a variety of next-generation
insights and automation to improve engagement, retention, scheduling,
and performance while driving more informed decisions that support
organizational success.
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The Workforce Dimensions Technology Partner Program features
dozens of global technology and HCM partners developing innovative
applications, product extensions, and integrations leveraging
the Kronos D5 platform, including:
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MarketSource,
an organization delivering brand advocacy and retail sales support to
more than 30,000 unique stores, selected Workforce Dimensions to
deploy its employee engagement portal on the Kronos D5 platform,
integrating leading communication, workforce management, and routing
applications into one solution.
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On top of organizations
like LondonEnergy that are revolutionizing the manager and
employee experience with Workforce Dimensions, significant first
quarter deals included: a supercenter chain with hundreds of locations
across the U.S.; a global biotechnology company with 20,000+ employees
serving more than 60 countries; one of the leading steel manufacturers
in Europe; a retailer with hundreds of stores across Canada, Europe,
and the U.S.; an advanced medical center serving more than 3 million
people; a global provider of personal care items serving consumers in
more than 50 countries; and a non-profit organization providing loans
and financial services to customers in Latin America.
Global Organizations Benefit from Continued Enhancements to Kronos
Workforce Central Driven by its customer-first commitment,
proven cloud approach, and continued product enhancements, Kronos
continues to drive success with Workforce Central.
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Recent
Workforce Central enhancements that help organizations engage and
empower their employees, control labor costs, minimize compliance
risk, and improve productivity, include:
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Mobile self-service that empowers employees to take control of
their work-life balance, allowing access to schedules and the
ability to request time off, swap or pick up shifts, and view
payroll information from anywhere, at any time;
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An unrelenting focus on complex and ever-changing labor
requirements around the world that ensures Workforce Central meets
the needs of customers in all markets; and
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Workforce Central 8 going completely flash-free.
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Workforce Central helped bring
the employee experience to life at Dave & Buster's, managing
all 15,000 employees across 110 locations in Canada, Puerto Rico, and
the U.S.
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Customers using Workforce Central have a clear path to migrate
to Workforce Dimensions, with the majority of an existing Kronos
customer's current configuration easily migrated to Workforce
Dimensions, providing a jump-start for an accelerated implementation.
Verticalization Continues to be a Key Differentiator in the Kronos
Customer Experience Kronos vertical success is driven by deep
industry knowledge and continued investments.
Kronos Proves Employee Engagement is Good for Business as
"WorkInspired" Hits Shelves
First Quarter Customer Success Around the Globe In the first
quarter of Fiscal 2019, Kronos signed agreements with organizations
around the world, including: Bluetree Group, the
fastest-growing print business in the U.K.; Burneys, artisan
bread maker for Warburtons, the largest bakery brand in the U.K.; Carinity,
a non-profit healthcare organization in Australia; City Beach, Australia's
biggest surf, skate, and fashion retailer; Elior Spain, one of
the leading operators in catering, concession catering, and support
services in Europe; El Paso County, one of the most populous
counties in Texas with more than 800,000 residents; Fletcher Building,
a New Zealand manufacturer and distributor of building materials and
residential and commercial construction with 20,000 employees in 40
countries; General Atomics Aeronautical Systems, Inc., a provider
of unmanned aerial vehicles and radar solutions for the U.S. military
and commercial applications worldwide; The Hongkong and Shanghai
Hotels, a hotel group in China with 10,000+ employees globally; Les
Ambassadeurs Club, one of London's most exclusive and distinguished
gaming establishments; Oji Fibres Solutions, a leading producer
of market pulp, paper, and fibre-based packaging in New Zealand; SummitCare,
a residential aged care, dementia-specific residential care, and other
aged care services provider in Australia; Sunac China, a top real
estate company listed on the Hong Kong Stock Exchange; Villa
Healthcare, a post-acute and long-term provider with 35 facilities
in Illinois, Michigan, Minnesota, Ohio, and Wisconsin.
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.
© 2019 Kronos Incorporated. All rights reserved. Kronos and the Kronos
logo are registered trademarks and Workforce Innovation That Works is a
registered trademark 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. 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) depreciation of
property, plant, and equipment; (3) amortization of intangible assets;
(4) acquisition-related deferred revenue write-downs and expenses
including advisory, legal, accounting, acquired employee-related costs,
and integration costs; and (5) unusual costs or one-time expenses that
are excluded from the definition of EBITDA under the terms of the
company's Credit Agreement.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190204005531/en/
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