| [July 23, 2014] |
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Kronos Announces Another Strong Quarter as SaaS Bookings Grow 97 Percent
CHELMSFORD, Mass. --(Business Wire)--
Kronos
Incorporated - which recently surpassed $1 billion in annual revenue1
- today announced financial results, company advancements, and customer
successes for the third quarter of Fiscal 2014. Product bookings
continued to accelerate, with Kronos (News - Alert) Cloud bookings as the
fastest-growing part of the business. Kronos recognized revenue for the
quarter increased to $265 million. Earnings before interest, tax,
depreciation, and amortization (EBITDA) increased to $88.5 million.2
"It's thrilling to be part of the exclusive group of software companies
that have grown beyond $1 billion in annual revenue, and the first
vendor to do so in the workforce management market," said Aron Ain,
Kronos chief executive officer. "Equally thrilling is the pace of our
growth compared to the global workforce management market, our
increasing market share, and our rapidly expanding cloud footprint.
Kronos is in a fantastic position moving into the final quarter of our
Fiscal 2014. Our strong financial results and the investments we are
making in our company - including continued product innovation,
expansion of our sales force, and delivery of a superior customer
experience - all reinforce that the best days are still ahead for
Kronos."
Third-Quarter News Facts
-
Outpacing the workforce management market - Deployed in more
than 100 countries, Kronos is the leader in the global workforce
management market. According to a global
study of workforce management solutions3 published by
IHS (News - Alert) Technology (NYSE: IHS), Kronos grew more than 11 percent. The IHS
report determined that the overall worldwide workforce management
market grew 7.9 percent during the same period, indicating that Kronos
continues to increase its market share. Only Kronos was found to have
positive market share growth in all global regions during this period,
while the share of other leading suppliers of workforce management
solutions declined. Also according to IHS, Kronos led all vendors with
more than 25 percent share of the global workforce management market.
In the Americas, Kronos broadened its number-one position by
increasing its share to nearly 38 percent.
-
Tremendous growth of the Kronos Cloud - The Kronos Cloud is
experiencing significant growth across all market segments. 77 percent
of new customer bookings were from an array of Kronos Cloud offerings,
bringing the total number of organizations leveraging the Kronos Cloud
to nearly 12,000. Kronos workforce management cloud revenue increased
57 percent and SaaS (News - Alert) bookings increased 97 percent during the quarter.
-
Vertical expertise - Kronos experienced strong momentum across
targeted vertical segments - including retail and hospitality,
healthcare, services and distribution, manufacturing, and the public
sector. The services and distribution sector was particularly strong,
having its best-ever product bookings quarterly performance.
-
Extraordinary growth in SMB sector - Product bookings in the
small and midsize business (SMB) sector increased 42 percent driven by
strong performance of the Workforce Ready® and Workforce
Central® suites and increased traction in the SaaShr
partner channel. Workforce Ready is increasingly being adopted by new
customers, as well as those upgrading from prior generations of Kronos
solutions. During the quarter, Kronos delivered the latest
release of Workforce Ready, providing even greater value to SMBs,
making it easier than ever for them to effectively manage their
workforces.
-
Rapid pace of innovation - Continued innovations in Kronos
workforce management solutions was a key driver in the strong
double-digit increase in product bookings during the quarter. Recent
product releases include: the latest version of the Kronos Workforce
Central suite including hundreds of enhancements; Workforce
Collaboration™ social networking and collaboration; Workforce
Analytics™ and Workforce Analytics on Tablet with
visualization and exploration; Workforce
Mobile™ and Workforce Tablet™ with
geo-fencing capabilities; the latest version of the Kronos
InTouch® time clock with new biometric technology;
availability of Workforce
Task Management™ via tablet devices; the latest version
of the Kronos Workforce Ready® suite; many enhancements to
meet specific vertical and global requirements; and additions and
advancements to many other Kronos applications. There has never before
been a timeframe in which Kronos has released so many new product
offerings in such a short period of time.
-
Engaged and satisfied customers - During the quarter, Kronos
hosted thousands of customers in a 30-city
world tour of KronosLIVE, a series of events that offered the
latest insights into how Kronos' game-changing workforce management
solutions combine ease of use and deep functionality to help
organizations control labor costs, minimize compliance risk, and
improve workforce productivity. KronosLIVE was offered in cities
throughout the U.S. and in international locations such as London,
Mexico City, Montreal, Mumbai, and Shanghai. In addition, during the
quarter Kronos was recognized for consistently exceeding customer
expectations by Omega Management Group Corp (News - Alert). Kronos is one of only two
companies to receive this award 14 consecutive years.
-
Customer successes around the globe - In the third quarter of
Fiscal 2014, Kronos signed agreements with organizations around the
world such as: Allity Pty Ltd., a for-profit organization with
31 aged care facilities in Australia; CenterLight Health System,
a leading resource for long-term residential and community-based
healthcare; Century 21 Department Stores, a retailer located in
New York City offering designer merchandise; Charleston County
School District, a K-12 school system comprised of 80 schools; City
of Hampton, a city in Virginia; Country Fire Authority, a
volunteer- and community-based fire and emergency services
organization in Australia; Crittenton Hospital Medical Center,
a full continuum provider of nationally ranked clinical programs
representing a wide range of medical specialties providing primary,
secondary, and tertiary-level care; Department of Justice Federal
Prison Industries (FPI), a U.S. government corporation that
employs and provides job opportunities to inmates in the Federal
Bureau of Prisons; Dulsco, a leading provider of human
resource solutions and waste management services headquartered in
Dubai with operations throughout the UAE and Qatar; Element Fresh,
a fast-growing dining chain company with more than 20 locations in
Beijing, Guangzhou, Nanjing, and Shanghai; Emory Healthcare, a
comprehensive hospital system in Georgia; EnviroWaste, a
company that delivers EnviroSolutions to address the waste and
recycling needs of New Zealand's communities and businesses; Hastings
Entertainment, Inc., a leading multimedia entertainment retailer; Indiana
University Health, a comprehensive healthcare system in Indiana; Nebraska
Department of Roads, a state agency responsible for surface
transportation programs; NYC Transit Authority, one of the
largest transit systems in North America; Presence Health, the
second-largest healthcare system in Illinois; Ridley Family Markets,
a family-owned chain of grocery stores operating 24 supermarkets in
Idaho, Utah, Nevada, and Wyoming; Sky Lakes Medical Center, an
internationally accredited, community-owned acute-care hospital in
Oregon; Silver Reef Casino, a casino resort serving the
northwestern region of the U.S.; St Andrews Healthcare, one
of the largest charities in the UK providing specialist mental
healthcare services; Town Sports International, an operator of
fitness centers in the U.S. and Switzerland; Trusthouse Services,
provider of outsourced food management services, operating primarily
in the education and healthcare sectors; and Wyoming Department of
Health, an organization dedicated to supporting and enhancing the
health of citizens in Wyoming.
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. Kronos, the Kronos logo, Workforce
Central, InTouch, and Workforce Ready are registered trademarks and
Workforce Collaboration, Workforce Analytics, Workforce Mobile,
Workforce Tablet, Workforce Task Management, and Workforce Innovation
That Works are trademarks of Kronos Incorporated or a related company.
All other trademarks are property of their respective owners.
Footnote 1: As announced May 7, 2014 on a last-twelve-month basis,
ending March 29, 2014.
Footnote 2: 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; (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 expenses that are excluded from the definition of EBITDA
under the terms of the Company's Credit Agreement.
Footnote 3: "The Workforce Management Solutions - World Report"
(2011-2013), published April 2014 and written by Sam Grinter, market
analyst at IHS.
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