[January 25, 2017] |
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Stellar Start to 2017 for Kronos as SaaS Business Continues to Surge; Human Capital Management Full-Suite Transactions Exceed Goals; Product Bookings Up 19 Percent with Exceptional Quarter for $1 Million+ Deals
Kronos
Incorporated today announced financial results, company
advancements, and customer successes for the first quarter of Fiscal
2017. Kronos (News - Alert) recognized revenue for the quarter increased 14 percent to
$312.6 million. Earnings before interest, tax, depreciation, and
amortization (EBITDA) increased 17 percent to $91.1 million.1
"Kronos is off to a fantastic start in Fiscal 2017, with financial
results exceeding our expectations," said Aron Ain, Kronos chief
executive officer. "Our SaaS (News - Alert) business is growing by leaps and bounds; we
are rapidly expanding our offerings and market position beyond workforce
management to include a full, end-to-end suite of human capital
management solutions; and we experienced our best-ever first quarter in
terms of transactions that exceeded $1 million. All of this momentum -
coupled with our steadfast focus on global expansion and being a great
place to work - will ultimately bring even more value to our customers
and the tens of millions of people around the world who work for
organizations that use Kronos solutions."
SaaS Continues to Surge with Banner Quarter for Migrations, Driving
Recurring Revenue Growth Kronos again delivered strong growth
in the cloud, with subscription revenue increasing 51 percent.
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Nearly 85 percent of new customer bookings came from an array of
Kronos Cloud offerings, which marks the 8th 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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The pace of conversions of long-standing, on-premise customers
migrating to software-as-a-service continues to rapidly increase.
Significant on-premise to SaaS conversions included: a top-ranked
academic medical center serving more than 1.5 million patients each
year; a fast-growing discount retailer with more than 500 stores
across 30 states; a leading provider of technology and supplies for
correctional facilities across the U.S.; an international retailer
with more than 1,000 locations; a manufacturer of meat products with
more than 6,000 employees; a large operator of casinos and
entertainment headquartered in Nevada; a large healthcare organization
with more than 20,000 employees; a chain of convenience stores
employing more than 18,000 associates; and the Australian operations
for a global leader in logistics and relocation services.
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Significant new Kronos Cloud deployments include: a large
transportation patrol department in the Western U.S.; an iconic luxury
fashion brand; the school district of a major U.S. city with more than
80,000 students; an Australian distribution center for a major energy
services provider; an operator of brand name retail stores throughout
Mexico; a financial services company among the largest banks in the
U.S.; a nationally recognized higher education organization in
California; a retailer with more than 400 stores in the UK; a home
décor retailer with locations in 30 states; a global life sciences
distributor and manufacturer of more than 50,000 products; and a
leading provider of home alarm security systems.
Rapidly Establishing Leadership Position in Human Capital Management 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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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 applications.
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Subscription revenue for the Kronos
Workforce Ready suite increased 57 percent year-over-year.
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Providing an opportunity for Kronos to further extend its
comprehensive HCM suite to additional customers, Kronos
acquired Datamatics Management Services, Inc., a provider of time
and labor management services and solutions.
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Industry analysts and bloggers attended KronosWorks in November with
rave reviews of the company's momentum in HCM:
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"Kronos has been investing heavily in its Workforce Ready product
(through the 2012 acquisition of SaaShr). It also continues to
position this product for organizations needing a full HCM suite.
Kronos believes that Workforce Ready has the right combination of
features, simplicity, and price to penetrate the HCM market."
(KronosWorks: Understanding the Kronos Way, IDC (News - Alert))
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"Kronos has been investing in Workforce Ready for some time, now
with the recent additions in functional footprint, it has taken
off more than would expect, reaching a triple digit million amount
for the first time." (KronosWorks - Solid Progress and Big Things
Loom, Constellation Research)
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"Kronos has continued to add new functionality to Workforce Ready
since the SaaShr acquisition. Workforce Ready has grown its
customer base 45 percent and increased international customer
adoption by 110 percent over the past 12 months. Workforce Ready
is now a $100 million-a-year business for Kronos, and the vendor
believes that it has plenty of headroom to grow. SMB Group
agrees." (Workforce Ready Mission for SMBs, The SMB Group)
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"Kronos reports it (HCM solution) as the industry's fastest
selling end-to-end solution for HR, getting to $100 million in
sales in five years." (Who is the Fifth-Largest HCM Vendor?, Human
Resource Executive)
Record-breaking Quarter for Large Workforce Management Deals Globally In
a 50 percent increase over any previous first quarter, Kronos closed a
record number of transactions over $1 million last quarter, representing
an array of vertical markets.
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Some of 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. This included an agreement with an
industry-leading supermarket chain with more than 80,000 employees; a
large school district in Texas serving more than 70,000 students; a
multinatonal provider of enterprise IT infrastructure and services
with more than 100,000 employees; one of the largest law enforcement
organizations in the world; a restaurant franchisee in Mexico with
more than 90,000 employees; and a global hospitality company with
nearly 6,000 properties.
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Kronos
and NGA Human Resources formed a strategic global alliance to
further simplify the delivery of workforce management, HR, and payroll
services to organizations with complex global workforces. The alliance
creates a deep integration between the Kronos Workforce Central suite
and NGA Payroll Exchange, which supports payroll engines in more than
145 countries.
Kronos Innovation Revolutionizes Workforce Management for Customers
Large and Small Kronos total product bookings increased 19
percent, with sales increasing across all deal sizes and regions.
International constant FX product bookings increased 32 percent. Kronos
continues to invest in product development and services enablement,
delivering enhancements and new innovations across its entire product
and services portfolio, including:
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The latest
version of the Kronos InTouch delivers the most powerful and
responsive model of the Kronos InTouch time clock series, a device
which is already used by more than 4 million workers around the world
every day. Orders for time clocks were at record levels.
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Kronos
Paragon, a unique and revolutionary implementation methodology for
Workforce Central cloud customers, helps organizations accelerate
their time to value by significantly reducing implementation times and
bringing customers live sooner than ever before.
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New enhancements in the latest
version of Workforce TeleStaff, an automated public safety
scheduling and notification solution, further empowers first
responders to succeed in their mission-critical jobs by gaining more
control over their schedules; accessing greater means to communicate
with each other; and make changes to their shifts with minimal
supervisor involvement.
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An enhanced
version of the Kronos EZCall automated physician scheduling solution
includes functionality to help healthcare organizations better align
physician and clinician schedules with patient care needs.
Award-winning WorkInspired Culture and Expansion of Corporate
Headquarters Kronos has become widely recognized for its
corporate culture, which emphasizes a focus on caring colleagues and for
customers.
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Kronos announced the results of its most recent Global Employee
Engagement Survey, which revealed that 92
percent of Kronos employees are proud to work at Kronos. This
statistic is one in a range of proof points about exceptionally high
employee engagement at Kronos stemming from a survey conducted by CEB,
which was completed by 90 percent of Kronos employees worldwide.
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Great Place to Work again placed Kronos on its list of the 50
Best Information Technology Companies to work for in India.
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The
Boston Globe named Kronos a Top Place to Work, with the
company ranking again as one of the top places to work in
Massachusetts in the Largest Employers category.
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Beginning in February, Kronos will begin relocating its Chelmsford,
Mass. worldwide corporate headquarters to a completely
renovated 500,000 square feet of state-of-the-art space in Lowell,
Mass., marking one of the area's largest real estate transactions
in recent history in Massachusetts.
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Kronos, with more than 5,000 employees worldwide, is actively hiring
and currently has nearly 300 job openings.
First Quarter Customer Success Around the Globe In the first
quarter of Fiscal 2017, Kronos signed agreements with organizations
around the world, such as: Action, one of Europe's largest
non-food discount retailers; Aramark China, a provider of
professional facility and food services to customers in healthcare,
business, and education throughout China; Axo, a leading
multi-brand company in Mexico for apparel, footwear, beauty, body care,
accessories, and furniture; Beaumont Health, the largest
healthcare system in Michigan in terms of inpatient admission and net
patient revenue; Catholic Medical Center, an acute care hospital
and one of the largest healthcare organizations in New Hampshire; Chemist
Warehouse, Australia's leading online pharmacy; City of Fort Worth,
a city in Texas; City of Flagstaff, a city in Arizona; City of
Santa Fe, a city in New Mexico; Corporate Protection Australia
Group, the largest Australian-owned private emergency services
company, delivering health and medical/rescue/security/education and
risk services to critical infrastructure; Greencross,
Australasia's largest integrated pet care company; Harford County,
a county in Maryland; Koelsch Communities, a leader in
independent and assisted living and memory care headquartered in
Washington; Kum & Go, a gas station and convenience store
chain with more than 400 locations in 11 states; R&F Ocean World,
a theme park in the Hainan Province in China; Temple University,
a top-ranked research university in Philadelphia, Penn.; University
of Mississippi Medical Center, an academic health science center and
one of the largest employers in Mississippi; Valero Services, Inc.,
a subsidiary of the Valero Energy enterprise, an international
manufacturer and marketer of transportation fuels, petrochemical
products and power; Vigor, a leader in ship building, ship
repair, and complex metals fabrication; and Wellmont Health System,
a leading healthcare provider serving Northeast Tennessee and Southwest
Virginia.
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, Workforce Central, Kronos InTouch, and
EZCall are registered trademarks and Kronos Paragon, Workforce
TeleStaff, 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) consulting and other 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/20170125005690/en/
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