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Cloud Momentum, Product Innovation, and Global Expansion Drive Kronos Beyond $1 Billion in Revenue in Fiscal 2014
CHELMSFORD, Mass. --(Business Wire)--
Kronos
Incorporated today announced financial results, company
advancements, and customer successes for Fiscal 2014, which closed Sept.
30. Product bookings continued to accelerate, with Kronos (News - Alert) Cloud bookings
the fastest-growing part of the business. Kronos recognized revenue for
the year increased to $1.040 billion. Earnings before interest, tax,
depreciation, and amortization (EBITDA) increased to $343 million.1
"Based on our tremendous momentum over 37 years and our achievement of
$1 billion in annual revenue, we are often asked 'What is Kronos'
secret?'", said Aron Ain, Kronos chief executive officer. "Our company
strategy is multi-dimensional and clear. We have a passion for
innovation and delivering great products. We have a winning global
distribution strategy. We have a commitment to our customers to provide
world-class product support. And we have exceptional employees who make
a difference every single day. These attributes drove us to be a $1
billion company. In our next phase of growth, Kronos will become
synonymous with workforce management in the cloud. Our future has never
been brighter."
Fiscal 2014 News Facts
-
Explosive growth of the Kronos Cloud - Kronos added thousands
of Kronos Cloud customers, as new customers deploy in the cloud and
existing customers move their on-premise instances to the cloud.
Kronos workforce management cloud revenue increased 58 percent and
SaaS (News - Alert) bookings increased 69 percent. Demonstrating this increasing
momentum, in the second half of the fiscal year, 75 percent of new
customer bookings were from an array of Kronos Cloud offerings. Kronos
continues to aggressively invest in its cloud infrastructure in
anticipation of even more rapid growth.
-
Growth in the enterprise - Kronos secured more than twenty
$1,000,000+ contracts. Transactions included new customers as well as
existing customers from around the world, such as one of the largest
operators of acute care hospitals in the U.S. with more than 200
hospitals; a Fortune 500 multinational organization that
purchased Kronos in the cloud for 115,000 salaried employees around
the world following its deployment of Kronos to hourly employees in
more than 50 countries; a multinational hospitality organization with
more than 500 properties worldwide; a U.K.-based multinational
automotive company; a leading services company with more than 12,000
locations worldwide; one of the largest retailers in the world with
nearly 2,500 stores; and a U.S. state with 35,000 employees.
-
Growth in SMB sector - In Fiscal 2014, Kronos added more than
3,800 organizations to its SMB customer community. Product bookings in
the small and midsize business (SMB) sector increased 25 percent
driven by strong performance of the Kronos Workforce Ready and Kronos
Workforce Central suites. This momentum included sales to new
customers as well as the migration of hundreds of existing Kronos
customers to Workforce Ready. Kronos continues to bolster Workforce
Ready by adding enhancements and new applications which will
accelerate adoption of this platform. Kronos also continues to
experience significant traction in the Kronos SaaShr partner
channel where the customer count has doubled since Kronos acquired SaaShr
in 2012.
-
Growth through product innovation - Kronos product bookings
enjoyed a double-digit increase, providing further indication of the
company's growth trajectory and global market share advancements.
Kronos delivered an unprecedented level of innovative new products and
enhancements, which are transforming the way organizations manage
their workforces including:
-
Growth across all targeted industry segments - Verticalizing
its sales, services, and marketing teams is a recent cornerstone of
Kronos' success, setting the company apart from other vendors by
delivering a strong value proposition across targeted industry
segments. In Fiscal 2014, Kronos delivered strong financial results
across all targeted industry markets as organizations large and small
seek to align with the workforce management market leader and its
proven industry-specific expertise. All targeted segments surpassed
their financial goals, including the services and distribution,
healthcare, manufacturing, retail and hospitality, and public sector
groups.
-
Growth internationally and among multinationals - Kronos
international product bookings increased 27 percent in the fourth
quarter, as new customer adoption and the size of transactions
continues to rise. India experienced its best-ever year with a range
of new customer wins, including its first $1,000,000+ contract with a
major food services company, and multiple Kronos Cloud and SaaS
customer transactions. Australia continued on its market-leading
growth trajectory. In the U.K., Kronos experienced a record quarter
for product bookings across a broad segment of industries. In
addition, Kronos launched its Workforce Ready suite in various regions
to give SMBs the advantages of an enterprise-class workforce
management solution in the cloud with single-source access to easily
analyze and manage real-time employee data.
-
Kronos to host record number of attendees at KronosWorks - The
world's largest vendor-led workforce management gathering is taking
place Nov. 9-12 in Las Vegas. With more than 2,500 attendees from
around the world and hundreds of industry- and product-specific
sessions, KronosWorks
2014 will offer deep-dive product demonstrations, customer success
sessions, and a forum for customers to network with peers and Kronos
experts. Thousands of Kronos customers also recently attended KronosLIVE
events throughout the U.S. and international locations such as London,
Mexico City, Montreal, Mumbai, and Shanghai.
Fourth Quarter News Facts
-
In the fourth quarter of Fiscal 2014, Kronos signed agreements with
organizations around the world such as: American Woodmark
Corporation, a kitchen and bath cabinet manufacturer; Autoliv
ASP Inc., a worldwide leader in automotive safety systems; City
of Abilene, the largest city in west central Texas; Correct
Care Solutions, a community healthcare provider offering
comprehensive medical, dental, and behavioral health services for
inmates; County of Richmond, a county in the U.S. state of
North Carolina; District of Columbia Housing Authority, a
provider of quality affordable housing to extremely low- through
moderate-income households in the Washington, D.C. area; Emerson (News - Alert)
Fisher, one of the largest control valve manufacturers in
the world with locations across the U.S. and Canada; Froedtert &
the Medical College of Wisconsin, a regional healthcare network in
southeastern Wisconsin; Geisinger Health Services, an
integrated health services organization serving more than 2.6 million
residents throughout 44 counties in the U.S. state of Pennsylvania;
The GEO Group, Inc., a leading provider of correctional,
detention, and community reentry services; JEVS Human Services,
the largest nonprofit social services agency of its kind serving the
Greater Philadelphia region; Marc Community Resources, a
not-for-profit community organization providing day treatment,
vocational, residential, respite, and behavioral health/outpatient
services to children and adults with developmental disabilities and
behavioral health challenges; Marcus Theatres Corporation, a
leader in the entertainment industry; Medicalodges, Inc., an
employee-owned nursing system operating over 30 facilities in the U.S.
states of Kansas, Missouri, and Oklahoma; The MetroHealth System,
one of the largest, most comprehensive healthcare providers in
Northeast Ohio and the region's only Level I trauma center; Niagara
Falls Memorial Medical Center, a provider of a full range of
medical, surgical, rehabilitation, skilled nursing and adult mental
health services in Niagara Falls, New York as well as outpatient
facilities located in Wheatfield, North Tonawanda, and Grand Island; Tacoma
Public Schools, the third-largest school district in the
U.S. state of Washington with more than 65 sites; YMCA of Middle
Tennessee, a nonprofit organization with 18 family wellness
centers and hundreds of program locations dedicated to strengthening
communities across Middle Tennessee.
Supporting Resources
About Kronos Incorporated
Kronos is the global leader in
delivering workforce management solutions in the cloud. Tens of
thousands of organizations in more than 100 countries - including more
than half of the Fortune 1000® - use Kronos to control labor
costs, minimize compliance risk, and improve workforce productivity.
Learn more about Kronos industry-specific time and attendance,
scheduling, absence management, HR and payroll, hiring, and labor
analytics applications at www.kronos.com.
Kronos: Workforce Innovation That Works™.
© 2014 Kronos Incorporated. All rights reserved. Kronos and the Kronos
logo are registered trademarks and Workforce Innovation That Works is a
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. 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
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.
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