LOWELL, Mass., Apr 30, 2019
Kronos Incorporated today announced financial results, company advancements, and customer successes for the second quarter of Fiscal 2019. Subscription revenue increased 29% in the quarter with total company revenue reaching $354 million.
“Strategic investments in our products, people, and customer success have driven growth each quarter and positioned Kronos for an exciting future full of unlimited potential,” said Aron Ain, Kronos chief executive officer. “Workforce Dimensions continues to surpass expectations; Kronos HCM solutions – including payroll services – is on an exciting trajectory; and international growth excelled in the quarter. Our success continues to be fueled by great people, with Kronite employee engagement at an all-time high worldwide. Kronos is a special place today and, with our continued investments into the business, we will excel well into the future.”
Subscription Revenue Grows Incredibly Fast Across SaaS Solutions
Subscription revenue was up 29% in the quarter and now represents the largest revenue category.
- More than 30,000 organizations worldwide are now in the Kronos Cloud, with native cloud-suites Workforce Dimensions and Workforce Ready driving the majority of SaaS success.
- Customer retention across Workforce Dimensions, Workforce Ready, and Workforce Central SaaS solutions remains strong at nearly 95%.
Workforce Dimensions Drives the Future of Work – and the Future of Kronos – with Highly Diversified, Rapid Adoption
Workforce Dimensions continues to out-perform company expectations as adoption has spread across every global region and industry vertical with second-quarter deals seeing nearly an even split between existing customer migrations and new Kronos customers.
- Kronos announced a global agreement for SAP to resell Workforce Dimensions as its workforce management solution for customers with complex requirements under the name “SAP Time Management by Kronos.”
- Kronos launched powerful Workforce Dimensions enhancements that help attract, retain, and develop a highly engaged workforce while streamlining operational execution for retail, hospitality, and food service organizations by combining advanced labor volume forecasting, predictive scheduling, and task management.
- Nearly one in every four Workforce Dimensions deals have included a Workforce Dimensions Technology Partner integration or solution extension to help customers solve specific business challenges across a variety of industries. The Workforce Dimensions Technology Partner Program also continues to grow rapidly, including many new healthcare-specific partners and integrations.
- Significant Workforce Dimensions deals in the second quarter included: a west coast National Basketball Association team; a leading energy utilities company in Asia Pacific; one of the largest insurance providers in the U.S.; a global wholesaler serving hardware stores worldwide; a Mexican manufacturer of innovative components systems to the commercial vehicle and heavy equipment markets; one of the world’s largest privately held hospitality and food service companies; one of the largest public university systems in New England; an integrated health system serving more than 1 million residents; a large Australian waste management company; and a Canadian value retailer with hundreds of locations nationwide.
Award-winning Kronos HCM Cloud Solutions Propel Success for Organizations of All Sizes
Kronos HCM bookings rose 32% in the second quarter and 42% over the last 12 months.
- Since the launch of Workforce Dimensions with HCM capabilities, nearly one out of every four Workforce Dimensions deals have included Kronos HR or payroll solutions.
- Kronos Workforce Ready garnered a trio of award honors for excellence in HR and payroll, including being named by Constellation Research to the Constellation ShortList™ for Payroll for North American small and midsize businesses.
- Significant Kronos HCM deals in the quarter included: a leading agricultural cooperative specializing in canned fruits and tomatoes; a provider of concrete construction services to the commercial and residential sectors and municipalities; one of the oldest and largest non-profit transfusion medicine organizations; one of the world’s largest producers of oil-filled distribution transformers and transformer components; a casino hotel located in the midwestern U.S.; a public school district with more than 75,000 students; and one of the leading U.S. hotel and resort management companies.
Customer Experience Leadership, Kronite Engagement Help Spark International Growth
International regions grew by 43% in the quarter – led by Latin America at 48% and Europe, Middle East, and Africa at 42% – as Kronos continues its focus on customer experience innovation and employee engagement around the world.
- Kicking off in London in February, Kronos announced the 2019 KronosLIVE Customer Conference World Tour with additional events across Canada, China, India, Mexico, and South America.
- Kronos Community – a fast-growing online community where customers, partners, and product experts across all industries ask questions, share ideas, and provide product insight in real time – won the top award for “Innovation in Customer Service” by the Stevie Awards.
- Kronos Vice President of Customer Engagement Lisa Pratt was named a Top 10 “Innovator of the Year" by Great Place to Work.
- With global Kronite employee engagement at an all-time high of 87%, Kronos added more employer of choice award wins to its name worldwide, including being named a:
- Best Workplace for Inclusion for the second time and top employer across Canada;
- Best Workplace in IT by Forbes India;
- Best Company to Work For in Greater China by Bloomberg Businessweek/China;
- Top 20 Best Workplace in Technology by Fortune and Great Place to Work; and
- FORTUNE 100 Best Companies to Work For® winner for the second consecutive year.
Second Quarter Customer Success Around the Globe
In the second quarter of Fiscal 2019, Kronos signed agreements with organizations around the world, including: ArrowXL, the U.K.’s leading two-person delivery company that delivers to 200,000 households across the U.K. and Ireland each month on behalf of e-tailers and retailers; INTEGRIS Health, Oklahoma’s largest non-profit health system; Iron Mountain Services Private Limited, the global delivery center for Iron Mountain, a global business dedicated to storing, protecting, and managing information and assets; ISS, one of the world’s leading facility services companies located in Hong Kong; Melba Support Services, a disability services and support organization in Australia; Owensboro Health, a regional healthcare system serving 15 counties in Western Kentucky and Southern Indiana and one of the largest employers in Kentucky; Perekrestok, Russia’s largest supermarket chain; R&F Group, one of the top real estate development enterprises in China; Rencol, part of the Saint-Gobain Group, a U.K. manufacturer of high-quality tolerance rings; St. Elizabeth Healthcare, which operates five facilities throughout Northern Kentucky and more than 115 primary care and specialty offices in Indiana, Kentucky, and Ohio; Temple University, a top-ranked research university with 40,000 students located in Philadelphia, Pennsylvania; Tutera Senior Living & Health Care, one of the nation’s premier providers of independent living, assisted living, skilled nursing, and home health and hospice care; and The Wilburn Company, a provider of premier cleaning services to businesses and facilities across the state of Maryland.
- Connect with Kronos via Facebook, Twitter, LinkedIn, Instagram, and YouTube.
- Take a look at the lighter side of the workforce in our Time Well Spent cartoons.
- Kronos CEO Aron Ain shares how to transform employee engagement into a growth strategy in his new book, “WorkInspired: How to Build an Organization Where Everyone Loves to Work.”
- 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.
- Learn about the Kronos WorkInspired culture and check out Kronos job openings.
- Visit the Kronos Corporate Social Responsibility (CSR) page to learn how Kronites strive to be great people every day.
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.