Kronos Incorporated today announced financial results, company advancements, and customer successes for the first quarter of Fiscal 2020. Annual recurring revenue (ARR) bookings increased 29% in the quarter. Total revenue approached $370 million with earnings before interest, tax, depreciation, and amortization (EBITDA) crossing $95 million1.
“I continue to be energized quarter-after-quarter by the results generated by this world-class team of Kronites,” said Aron Ain, Kronos chief executive officer. “With already more than 40,000 Kronos customers around the world, it’s remarkable that we can still set a record for new customers to begin a fiscal year – and that’s just the start. As Workforce Dimensions reshapes the future of work and Workforce Ready grows at a record pace across the HCM industry, our forecast shows that our best years are yet to come as we keep our deep focus on investing in innovation, our unparalleled customer experience, and inspiring our people.”
ARR Bookings Grew Across Entire SaaS Portfolio Driven by Record New Customer Sales
Following the best quarter in the best year in company history where ARR exceeded $1 billion for the first time, Workforce Dimensions, Workforce Ready, and Workforce Central SaaS orders pushed ARR bookings growth to 29%, fueling an excellent start to Fiscal 2020.
- More than 34,000 organizations worldwide are in the Kronos Cloud as the company set a record for the most new customers in a first quarter.
- Subscription revenue continued to accelerate with growth of 33% in the quarter as subscription margins also continued to expand.
- Investments in enhancing the award-winning Kronos customer experience drove consistent, industry-leading retention.
Historic Workforce Dimensions Adoption and Launch of Kronos InTouch DX
Organizations around the world are reshaping the future of work with Workforce Dimensions – the fastest-adopted solution in company history – and the next-generation Kronos InTouch DX.
- The largest-ever Workforce Dimensions order was signed in the quarter with a multimillion-dollar on-premise migration.
- Intelligent, mobile-first, and industry-specific enhancements around usability, flexibility, and labor insights helped make Workforce Dimensions the No. 1 ranked workforce management solution in the world as organizations like Woodbine Entertainment revolutionize their employee experience.
- Unveiled in November, Kronos InTouch DX surpassed expectations in the first quarter of availability as the time clock of the future combines consumer-grade personalization, enterprise-level intelligence, and renowned Kronos durability to accelerate digital transformation (DX) and empower workers across all industries.
- Leading systems integrators worldwide raced to partner with Kronos to capitalize on surging global demand while Kronos surpassed 100 Workforce Dimensions Technology Partners.
Kronos HCM Continues Incredible Surge Punctuated by SMB Momentum and New Customers
Kronos HCM bookings rose 29% in the first quarter driven in large part by Workforce Ready adoption by small and midsized businesses (SMB) worldwide.
- Workforce Ready ARR bookings grew 61% with a strong mix of existing customers expanding their unified HCM cloud solution and a record first quarter for new customers.
- Advanced People Analytics powered by AIMEE complements the award-winning Employee Perspectives predictive analytics tool for personalized and proactive insights and recommendations to help managers and administrators make evidence-based people-centric decisions.
- Kronos was named “HR Technology Solutions Provider of the Year” for innovation and exceptional customer service as tens of thousands of organizations use Kronos HCM solutions including talent acquisition and onboarding, core HR, talent and performance management, benefits administration, workforce management, and payroll.
- To extend the reach of Kronos HCM, Kronos acquired Optimum Solutions, a national provider of HCM services and solutions to the healthcare, manufacturing, and retail industries.
- In December, Kronos held its largest-ever payroll provider event with the 12th annual Workforce Ready Partner Community Workshop.
Kronos Record Employee Engagement Drives Success Worldwide
Kronos continues to build on its “WorkInspired” success story using employee engagement as a growth strategy for more than 6,300 employees worldwide.
- Kronos scored its highest-ever Glassdoor Best Places to Work ranking, climbing another nine spots on the annual Employees’ Choice list.
- In Massachusetts where the company is headquartered, The Boston Globe again named Kronos one of the Best Places to Work and Chief People Officer David Almeda was named “Chief People Officer of the Year” by the region’s largest technology association.
- Globally, Kronos was recognized by Great Place to Work in three separate countries – Canada, China, and India – while also being named a Top Workplace in Orange County, California.
- Validating its LiveInspired focus on employee wellbeing, Kronos received three separate health and wellness accolades, including being named one of the 50 healthiest employers in the U.S.
- In the continuing effort to show the world that focusing on the employee experience is good for business, The Workforce Institute at Kronos released its fourth book, “Being Present: A Practical Guide for Transforming the Employee Experience of Your Frontline Workforce.”
First Quarter Customer Success Around the Globe
In the first quarter of Fiscal 2020, Kronos signed agreements with organizations around the world, including: Adidas, a global sportswear brand; Bis Industries, a leading provider of logistics and materials handling solutions to the resources sector in Australia; Coates Hire, Australia’s largest machinery and equipment rental company; Cummins, a leading manufacturer of diesel engines in China; DTLR VILLA, a retailer in the urban fashion industry operating on the U.S. East Coast and Mid-West; Indiana Department of Correction, the largest state agency in Indiana operating adult and juvenile correctional facilities statewide; JJ Foodservice, a nationwide wholesale food supplier in the U.K.; Longacres Garden Centre Ltd., the largest independent garden center in the U.K.; Lotte Tour Development, a tourism services provider and chartered transportation business in South Korea; North Shore Healthcare, which offers long-term skilled nursing care, short-term rehabilitation, and assisted living communities in Michigan, Minnesota, North Dakota, and Wisconsin; Northwest Pipe, the largest manufacturer of engineered welded steel pipe water systems in North America; SEHA, United Arab Emirates’ health service in Abu Dhabi; Southern Motion, a leader in design and innovation in all categories of motion furniture; Trolex, a designer and manufacturer of safety products for global hazardous industrial, mining, and tunneling markets; UTA, which operates public transportation in the state of Utah including bus, light rail, commuter rail, van pool, streetcar, and paratransit services; Wabash National Corporation, an innovation leader of engineered solutions for the transportation, logistics, and distribution industries; and Wihuri, a global Finnish industry and trade conglomerate.
- Connect with Kronos via Facebook, Instagram, LinkedIn, Twitter, and YouTube.
- Visit the Kronos Corporate Social Responsibility (CSR) page to learn how Kronites strive to be great people every day.
- Take a look at the lighter side of the workforce in the Time Well Spent cartoon series from Kronos.
- Subscribe to follow The Workforce Institute at Kronos for insight, research, blogs, and podcasts on how organizations can manage today’s modern workforce to drive engagement and performance.
- Kronos CEO Aron Ain shares how to transform employee engagement into a growth strategy in his book, “WorkInspired: How to Build an Organization Where Everyone Loves to Work.”
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.
© 2020 Kronos Incorporated. All rights reserved. Kronos and the Kronos logo are registered trademarks and Workforce Innovation That Works is a 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 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. For purposes of calculating growth rates, prior years have been restated for acquisitions and dispositions.