Kronos Announces Record 2019 Results as Annual Recurring Revenue Crosses $1 Billion
LOWELL, Mass.--(BUSINESS WIRE)--Oct 30, 2019--
Kronos Incorporated today announced financial results, company advancements, and customer successes for Fiscal 2019. Kronos revenue for the year was $1.433 billion. Earnings before interest, tax, depreciation, and amortization (EBITDA) was over $378 million 1.
“Kronos set a new mark with the best quarter in the best year in company history. Our performance across all aspects of the business driven by the energy, passion, and compassion for how Kronites support our customers continues to energize me every day,” said Aron Ain, Kronos chief executive officer. “Workforce Dimensions has officially become the fastest-adopted solution in our history, while our exceptional growth in HCM led by Workforce Ready continues to drive new cloud opportunities worldwide. It took Kronos 30 years to cross $500 million in recurring revenue – yet in less than a decade, annual recurring revenue crossed $1 billion and is the fastest-growing part of our business. And even with our aggressive investments across the company, profitability remains ahead of plan – simply incredible.”
SaaS Success Fueled by Workforce Dimensions and HCM, as ARR Catapults Beyond $1 Billion
In a year when Kronos was celebrated for its groundbreaking cloud transformation – including Fast Company naming it one of the Best Workplaces for Innovators – Kronos again delivered exceptional SaaS growth. With 33,000 organizations worldwide leveraging a Kronos Cloud solution across Workforce Dimensions, Workforce Ready, Workforce Central, and other product offerings, SaaS is now the choice for nearly all new customers.
Record-breaking Workforce Dimensions Adoption Accelerates Future of Work Innovation
In the first 18 months of availability, Workforce Dimensions soared past 600 customers worldwide, making it the fastest-adopted solution in the company’s history.
Continued HCM Business Growth Driven by New Workforce Ready Customers
Following Kronos being named “ HR Technology Solutions Provider of the Year,” HCM subscription bookings increased 29%, driven by a surge of Workforce Ready orders worldwide and complemented by Workforce Dimensions customers adding HR applications, cloud payroll, and payroll services.
Record Year for Large Deals, International Success, and R&D Investments Fortifies Kronos Position as Global Workforce Management Leader
Kronos topped last year’s record-setting mark for large deals, while international teams saw remarkable growth, strengthening the company’s position as the global leader in enterprise workforce management.
Focus on Partners, Unmatched Customer Experience Unlocks Better Business Outcomes
Partner-influenced business increased significantly while exponential growth of the Workforce Dimensions Technology Partner Network complements the award-winning customer experience at Kronos to drive ROI and solve specific business challenges across a variety of industries worldwide.
Award-winning Employee Engagement Reaches Record Heights Around the World
Kronos surpassed 6,000 employees worldwide – hiring more Kronites in 12 months than ever before – as employee engagement reached an all-time high of 89% with a 91% survey participation rate.
Fourth Quarter Customer Success Around the Globe
In the fourth quarter of Fiscal 2019, Kronos signed agreements with organizations around the world, including: Atlanta Public Schools, one of the largest school districts in Georgia serving 52,000 students across 18 schools, organized into nine K-12 clusters with 58 neighborhood schools, six partner schools, 18 charter schools, two citywide single-gender academies, and three alternative programs; Bond University, Australia’s #1 university for the student experience; City of Southlake, located near Dallas, Texas with a population of 27,000 residents; Community College of Allegheny County, a nationally renowned community college serving 43,000+ students each year; DART, a public transit agency serving Dallas, Texas and 12 surrounding North Texas cities with a multi-modal network of buses, light rail, commuter rail, and paratransit services for more than 200,000 passengers each day; Fishers Service Ltd., a U.K. provider of commercial laundry services; The Distribution Center for Bestseller, a famous Denmark fashion brand with 8,000 stores in China; Healius, one of Australia’s leading healthcare companies; Lifespan Corporation, Rhode Island’s largest health system and largest employer with a network of nationally recognized hospitals; Luxottica, a leader in the design, manufacture, and distribution of fashion, luxury, and sports eyewear; Marriott Middle East, part of the largest hotel operator in the world, encompassing a portfolio of more than 7,000 properties globally; Metro Mechanical Services Ltd., a U.K. commercial drainage specialist; Mingara Recreation Club, the destination for Australia’s Central Coast restaurants and bars, entertainment, promotions, kids play areas, sport and fitness facilities, corporate events, celebrations, and community involvement; Moffitt Cancer Center, a top-10 cancer hospital and National Cancer Institute Comprehensive Cancer Center, pioneering advances such as CAR T cell therapy; Monash Health, Victoria, Australia’s largest public health service; National Timber Group, the largest independent added-value timber distribution and processing group in the U.K. created through the acquisitions of market-leading brands Arnold Laver, North Yorkshire Timber, Rembrand, and Thornbridge; UTMB Health, an academic medical center and comprehensive health system of hospitals and a network of clinics; and Whistl U.K. Ltd., a leading delivery management company.
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 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.
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CONTACT: Domenic Locapo
KEYWORD: UNITED STATES NORTH AMERICA NEVADA MASSACHUSETTS
INDUSTRY KEYWORD: TECHNOLOGY MOBILE/WIRELESS HUMAN RESOURCES OTHER TECHNOLOGY PROFESSIONAL SERVICES SOFTWARE INTERNET HARDWARE DATA MANAGEMENT
SOURCE: Kronos Incorporated
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PUB: 10/30/2019 09:09 AM/DISC: 10/30/2019 09:09 AM