[January 31, 2018] |
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Kronos Announces First Quarter Fiscal 2018 Results
Kronos
Incorporated today announced financial results, company
advancements, and customer successes for the first quarter of Fiscal
2018. Kronos (News - Alert) recognized revenue for the quarter was $324.5 million.
Earnings before interest, tax, depreciation, and amortization (EBITDA)
increased to $94.9 million1.
"The energy at Kronos has never been stronger," said Aron Ain, chief
executive officer. "The opportunity to truly revolutionize the workforce
management industry with the launch of Workforce Dimensions combined
with the exceptional growth of our Workforce Ready HCM solution has
positioned us for the next 40 years of SaaS (News - Alert) success. Nearly 26,000
organizations worldwide leverage a Kronos Cloud solution - including 97
percent of net new customers - as subscription revenue grew 38 percent
in the first quarter. A day doesn't go by where I don't marvel at the
efforts of Kronites around the world to successfully shift our business
model these past several years while continuing to grow and deepen
long-term partnerships with our customers."
Launch of Workforce Dimensions Reshapes the Future of Workforce
Management In the most-anticipated launch in the company's
40-year-history, Kronos unveiled its next-generation workforce
management solution, Workforce
Dimensions, during the opening session of KronosWorks in November,
which was streamed
live around the world for the first time.
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Workforce
Dimensions redefines workforce management and pushes the limits of
innovation while capitalizing on decades of Kronos customer
success around the world, enabling organizations to:
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Work their way with the industry's first fully responsive
UI, allowing managers and employees unprecedented and customizable
control over how they consume information with one-click actions
and collaborative self-scheduling to simplify common workflows,
empower employees, and remove burdensome administrative tasks from
managers;
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Work smarter by transforming the role of frontline managers
through artificial intelligence (AI) and advanced machine
learning, leveraging the industry's first personal digital
consultant -Workforce Advisor - proactive compliance, advanced
forecasting, and embedded analytics to optimize workforce
operations while delivering strategic insights in real-time; and
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Work in a modern cloud leveraging the Kronos D5 platform,
the industry's first specifically designed workforce management
cloud platform with an open API, foundational AI, and lightning
fast in-memory computing to meet the challenges of today's global
enterprises.
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Kronos D5 Platform is being used to develop product extensions and
connectors from leading global technology and HCM partners, including
Google, Microsoft, Oracle, and SAP.
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Workforce
Dimensions early adopters around the world - including Brookstone,
GATE Petroleum Company, LondonEnergy, Snyder's-Lance, Things
Remembered, Tru Blu Beverages, and University of Colorado, Boulder -
led the charge of high demand in the mere weeks following the
KronosWorks announcement and were instrumental in development
alongside the wider Workforce Dimensions customer advisory board.
Workforce Ready Innovations Drive HR Growth with Record Small and
Midsize Market Success Workforce Ready, which combines the
power of Kronos workforce management with human resources, talent
acquisition, onboarding, performance management, benefits and
compensation, and payroll into one unified cloud platform, continues to
be the fastest-growing
part of the business with annual recurring revenue (ARR) up another
52 percent in the quarter for direct sales.
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Overall deal size for Workforce Ready increased 24 percent as
customers increasingly opt for a full suite solution, capitalizing on
Kronos' continued investments in powerful
HR- and payroll-focused enhancements with each new product
release, including:
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Employee Perspectives that leverages metric-backed
scorecards to provide real-time feedback and performance
management specifically for frontline workers;
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Succession Planning via a talent matrix dashboard to
identify and groom top talent to reach the next level in their
careers;
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Position Management to help organizations better manage
employees who work multiple roles while providing clearer
visibility into recruiting and staffing needs; and
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Predictive scheduling compliance to help remove guesswork
from schedule stability regulations arising in more states and
municipalities, such as in San Francisco and Seattle.
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Workforce Ready had a record first quarter for large ARR deals with
small and midsized organizations.
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Some of the largest Workforce Ready deals in the quarter included:
one of the world's largest manufacturers of pumps, valves, and
seals, serving customers worldwide; a global provider of transit
services; a North American supplier of fully cooked and ready to
cook meats; and a major cargo management, documentation
management, and aircraft load and unload provider to airlines in
the U.S.
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The Kronos Workforce Ready Partner Network, which held the 10th
annual Partner Community Workshop in November, saw subscription
revenue from partners increase 23 percent while nearly doubling the
number of new partners added compared to the first quarter of last
year.
Workforce Central Enhancements, Integration, and Thought Leadership
Spur Global Success Kronos strengthened its position as the
world leader in workforce management with enhancements to its Workforce
Central 8 suite while expaning global integration and thought
leadership.
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Two new
releases of Kronos Workforce Central 8 brought an array of
enhancements to help organizations engage and empower their employees,
control labor costs, minimize compliance risk, and improve
productivity, including:
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Scheduling enhancements that make it easier to apply a 9/80
compressed work week to help employees manage work-life balance;
contract definitions to ensure employees work a defined number of
hours to maintain compliance; and smart
scheduling solutions;
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Advanced
HR reporting tools to help human resources leaders
make data-driven decisions and identify workforce trends - like
performance, hiring, and turnover - before problems arise;
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Customizable dashboards to provide at-a-glance, detailed
visualizations to identify undiagnosed issues potentially lurking
in heaps of data;
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Tools to help mitigate compliance risk of complex international
labor laws while expanding the number of standard languages
supported with the additions of Hindi and Czech; and
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Mobile tools and self-service features - including
technology that enables an employee's smartphone to be used as a
badge at an InTouch terminal and configurable employee access
profiles - to help strike better work-life balance while enabling
more control over schedules.
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Kronos announced an enhanced
integration with Kronos Workforce Central and longtime global cloud
partner SAP SuccessFactors to further simplify complex and
challenging global HCM requirement for multinational organizations.
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The Workforce Institute at Kronos, a think tank focused on empowering
organizations and their employees through education and research, announced
the launch of a European chapter on its 10th
anniversary with its first European-focused study showing that French
and German workers are outperforming their U.K. counterparts.
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Significant new Workforce Central deals in the quarter included: a
multi-million dollar order with one of the world's largest food,
snack, and beverages companies with hundreds of thousands of
employees; two separate $1 million+ Workforce Central SaaS orders in
healthcare with the leading pediatric hospital in the U.S. plus the
first health system serving the state of Nebraska; a Canadian
corporation engaged in structures and logistics, electricity,
pipelines and liquids, and retail energy; a SaaS deployment in a large
Maryland county; a Kronos Cloud deal with one of the top wireless
network operators in the U.S.; and a warehouse services company and
third-party logistics provider.
Vertical Expertise, Investments Continue to Differentiate Kronos Kronos'
vertical success - led by the manufacturing sector (up 35 percent) and
services and distribution teams (up 23 percent) in the first quarter -
is driven by deep industry knowledge and continued investments.
Kronos Celebrates 40th Birthday by Opening
New Home, Culture Accolades Break New Ground Kronos followed on
a record year for global accolades honoring its WorkInspired culture
of caring and innovation by breaking new ground in Fiscal 2018 for
its exceptional employee experience:
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On October 31, Kronos celebrated its 40th anniversary with the
grand opening of its new global headquarters, a half-a-million
square foot, $68 million state-of-the-art home for 1,500 Kronites.
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In December, Kronos was honored to be named a Glassdoor
Employees' Choice Award as a Top 100 Best Place to Work for the
first time.
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On the heels of the new office opening, Kronos was honored by MassEcon
for its significant contributions to economic growth in the
Commonwealth of Massachusetts.
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The
Boston Globe named Kronos the top technology employer in
Massachusetts, marking the fifth straight year the company was named a
top four employer in the state across any industry.
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Adding to its growing list
of global workplace culture accolades in Australia, China, and
India, Great Place to Work® Canada name Kronos
one of the Best Workplaces in Technology.
First Quarter Customer Success Around the Globe In the first
quarter of Fiscal 2018, Kronos signed agreements with organizations
around the world, including: Adidas China, a sport chain retailer
with over 300 stores in China; City of Miami Gardens, a city
located in north-central Miami-Dade County, Florida; County of
Onondaga, a county located in the state of New York; Denton County,
a county located in the state of Texas; Eldorado Resorts Inc., a
leading casino entertainment company that owns and operates 20
properties in 10 states; Forrest General Hospital, the
Mississippi-based flagship hospital of Forrest Health; Froedtert
Health, eastern Wisconsin's only academic medical center and
regional healthcare network; Joyu Group, a travel services
provider in China; Mackenzie Health, a dynamic regional
healthcare provider serving a population of more than a half a million
people in Canada; Molded Fiber Glass Companies, a diversified,
custom molder of fiber reinforced plastic and composite products; Solomon
Corporation, the largest full-service transformer repair and
recycling business in the U.S.; YT Express, one of the top
three logistics companies in China.
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.
© 2018 Kronos Incorporated. All rights reserved. Kronos, the Kronos
logo, Workforce Central, and Kronos Workforce Ready are registered
trademarks and Workforce Innovation That Works, Workforce Dimensions,
and Kronos D5 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/20180131005987/en/
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