UKG (Ultimate Kronos Group), a leading global provider of HCM, payroll, HR service delivery, and workforce management solutions, today announced financial results for the first quarter of Fiscal 2021, ending December 31, 2020.
Total revenue for the quarter continued growing and was $776 million1, with earnings before interest, tax, depreciation, and amortization (EBITDA) excluding float growing 17% to $210 million.1 Subscription revenue excluding float grew 16%1, driven by a healthy distribution of new-customer orders, continued strong retention, and customers enhancing their existing UKG solutions - including adding new HCM, payroll, workforce management, or HRSD offerings now available to them as a result of the merger.
"I'm beyond energized by the start of what will be our first full fiscal year as UKG. This is the third consecutive quarter of proof that we are better together," said Aron Ain, UKG chairman and CEO. "The strength and depth of our unique product portfolio and dedication to customer success continue to drive strong financial performance and, more importantly, is helping organizations everywhere quickly adapt to challenging market conditions and take care of their people. Our own focus on people was acknowledged recently, with Forbes ranking UKG #2 on its 2021 list of America's Best Large Employers. We're extremely honored to receive this recognition of the culture we are building for UKG."
At UKG (Ultimate Kronos (News - Alert) Group), our purpose is people. Built from a merger that created one of the largest cloud companies in the world, UKG believes organizations succeed when they focus on their people. As a leading global provider of HCM, payroll, HR service delivery, and workforce management solutions, UKG delivers award-winning Pro, Dimensions, and Ready solutions to help tens of thousands of organizations across geographies and in every industry drive better business outcomes, improve HR effectiveness, streamline the payroll process, and help make work a better, more connected experience for everyone. UKG has 13,000 employees around the globe and is known for an inclusive workplace culture. The company has earned numerous awards for culture, products, and services, including consecutive years on Fortune's 100 Best Companies to Work For list. To learn more, visit ukg.com.
© 2021 UKG Inc. All rights reserved. For a full list of UKG trademarks, please visit www.ukg.com/trademarks. All other trademarks, if any, are property of their respective owners. All specifications are subject to change.
Footnote 1: UKG fiscal results are pro forma as though Kronos Incorporated and Ultimate Software were combined for all periods presented. Ultimate Software's results have also been pro forma to align with UKG's fiscal year calendar, which closes September 30th. All financial information within this press release is presented using non-GAAP financial measures and are approximate amounts. UKG believes that non-GAAP measures of financial results provide useful information regarding certain financial and business trends relating to UKG's 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 mergers and acquisitions. EBITDA consists of EBITDA per the definition under the Company's credit agreement which excludes items such as: (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 and prepaid commissions write-downs and expenses including advisory, legal, accounting, acquired employee-related costs, and integration costs and (5) unusual costs or one-time expenses. For purposes of calculating growth rates, prior years have been restated for acquisitions, dispositions, and pro forma for the combination of Kronos Incorporated and Ultimate Software.
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