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Kronos Momentum Continues with a Strong Fiscal 2015 Finish; Surpasses 16,000 Customers in the Kronos Cloud; Sets Aggressive Growth Targets for Fiscal 2016
Kronos
Incorporated today announced financial results, company
advancements, and customer successes for Fiscal 2015. Cloud bookings
continued to accelerate across multiple product lines. Kronos (News - Alert) recognized
revenue for the year increased to $1.1 billion. Earnings before
interest, tax, depreciation, and amortization (EBITDA) increased to $355
million.1
"Kronos continued its fantastic growth trajectory in Fiscal 2015, with
remarkable momentum across all dimensions of our business. We yet again
executed wonderfully, the highlights of which include rapid acceleration
of growth of the Kronos Cloud; delivery of a vast array of innovative
workforce management solutions; aggressive global expansion; and
fantastic employee engagement scores and external recognition as a top
place to work," said Aron Ain, Kronos chief executive officer. "As a
privately held company, we have the advantage of making strategic and
significant investments back into our business. With these investments
and our thousands of incredibly talented and engaged Kronites worldwide,
Kronos is in an excellent position to grow well beyond the $1.1 billion
company we are today."
Remarkable Growth of the Kronos Cloud
-
Kronos again delivered strong growth in the cloud, with SaaS (News - Alert) bookings
increasing 87 percent and workforce management cloud revenue
increasing 62 percent.
-
Ninety percent of new customer bookings were from an array of
Kronos Cloud offerings and hundreds of existing customers moved
their on-premise instances to the Kronos Cloud.
-
Kronos secured its largest-ever new SaaS transaction, representing
$22 million over a multi-year period.
-
More than 16,000 organizations now run in the Kronos Cloud,
representing the majority of Kronos' global customer base.
-
In Fiscal 2016, Kronos will make unprecedented investments in its
products, infrastructure, and delivery models to further accelerate
its transition to SaaS and expedite customer migrations to the Kronos
Cloud.
Exceptional Pace of Product Innovation and Market Adoption
-
In the past year, Kronos delivered an array of innovative new products
and enhancements, which are transforming the way organizations manage
their workforces including:
-
In Fiscal 2016, Kronos plans to spend more than $130 million on
research and development, continuing on its path of revolutionizing
the way organizations manage their workforces.
Tremendous Momentum in the Enterprise and Across all Targeted
Industry Segments
-
Kronos secured a record-breaking number of $1,000,000+ product booking
contracts1 and delivered strong financial results across
all targeted industry markets. Some of the largest and most noteworthy
transactions included:
-
Public sector/b> - departments in states spanning across the
U.S., as well as a multi-million dollar contract for the Kronos
TeleStaff public safety scheduling solution from a long-standing
U.S. federal government agency customer.
-
Healthcare - results reached new heights with record
bookings performance, including one of the largest children's
hospitals in the U.S.; a 12,000-employee, highly reputable
healthcare organization; and a large provider of senior housing.
In addition, Kronos
acquired physician scheduling vendor Productive Scheduling
Solutions.
-
Manufacturing - continued growth and expansion including to
one of the world's largest international oil and gas companies; a
global supplier of office products and services; and an American
multinational automotive manufacturer. In addition, Kronos
acquired the AutoTime business from Kaba Workforce Solutions,
LLC.
-
Services and Distribution - achieved its best year ever
with a myriad of successes including one of the world's largest
express transportation companies; a leading waste management
company with 34,000 employees; a major financial institution; and
a global provider of business process and technology management
services.
-
Retail and Hospitality - a leading food retailer; a leading
lifestyle specialty retail company; a clothing and accessories
retailer with nearly 40,000 employees; and a world-class
entertainment and hospitality organization with 8,000 employees.
-
In Fiscal 2016, Kronos anticipates investing in additional company
and product acquisitions to gain access to valuable vertical-specific
functionality to address the unique workforce management needs of
customers in targeted industry segments.
Accelerated Adoption of HCM Solutions in SMB Sector
-
HCM revenue in the SMB sector continued to accelerate helped by a 75
percent increase in Workforce Ready and SaaShr group revenues1.
Kronos added more than 3,700 organizations to its SMB customer
community in Fiscal 2015.
-
In Fiscal 2016, Kronos will significantly increase investments to
deliver even more HCM capabilities.
Growth Internationally and Among Multinationals
-
Kronos international product bookings increased 12 percent2,
as new customer adoption and the size of transactions continues to
rise.
-
China experienced its best-ever year with new customer wins,
including its first $1,000,000+ transaction. Kronos continued to
expand its partner network, adding relationships with
organizations such as Elitesland and SIE Consulting.
-
The EMEA region experienced a strong year, particularly in the UK
which secured transactions with organizations such as a leading
supermarket retailer with more than 160,000 employees and a
multinational logistics provider - both of which will deploy in
the Kronos Cloud. In addition, Kronos successfully launched
Workforce Ready in the UK, Belgium, and Holland to serve the SMB
market opportunity in these countries.
-
Canada experienced its best-ever year, closing multiple
$1,000,000+ contracts including its largest-ever transaction;
major customer wins included one of the largest provincial health
authorities in Canada and one of the largest cities in Canada.
-
In addition to customer momentum in India, Kronos expanded its
partner network by establishing relationships with organizations
such as Bluetree and Tech Mahindra.
-
The Latin America region experienced its most successful year
ever, closing a variety of strategic transactions including a
significant $1,000,000+ contract with a large public sector entity.
-
Australia, which is the latest international region to offer the
Kronos Workforce Ready suite, secured significant contracts such
as with a well-known timber manufacturer and a $1,000,000+ order
from a community services organization.
-
Kronos opened a new Latin America headquarters in Mexico City;
relocated its Delhi/Noida, India operation to a 93,000 square-foot
space to accommodate future growth; and relocated its EMEA
headquarters to Bracknell, UK.
-
In Fiscal 2016, Kronos will further expand its partner network to
meet the needs of locally based organizations as well as its large
multinational customer base, and anticipates investing in additional
company acquisitions in strategic regions.
Exceptional Place to Work
-
Kronos has become widely recognized as an employer of choice according
to its exceptional employee
engagement survey results and external recognition such as
recently being named a top place to work by the Boston Business
Journal, The Boston Globe, and Forbes, and The Great
Place to Work Institute® rankings in Canada and India.
-
In Fiscal 2016, Kronos anticipates hiring more than 1,000
employees. Kronos is actively hiring with more than 300 current Kronos
job openings worldwide.
Fourth Quarter News Facts
-
In the fourth quarter of Fiscal 2015, Kronos signed agreements with
organizations around the world such as: Brookshire Brothers, a
chain of supermarkets in Texas and Louisiana; Blount Memorial
Hospital, a general medical and surgical hospital in
Tennessee; City of Sunrise, a city in Florida; Comprehensive
Pharmacy Services, a leading pharmacy services company; County
of Denton, a county in Texas; HHS, a provider of
forward-thinking solutions for healthcare support services management
that streamline facility operations and improve the patient and
resident experience; MGM Resorts International, one of
the world's leading global hospitality companies, operating a
portfolio of destination resort brands; Mondelez International,
a leading global supplier of snacks and confectionery; National
Amusements, a world leader in the motion picture exhibition
industry; Niemann Foods Inc., an operator of more
than 100 retail locations with grocery, pet, hardware, pharmacy, and
convenience stores in Illinois, Missouri, and Iowa; Orange (News - Alert) Lake
Resorts, a leader in the vacation ownership industry; Southcoast
Health System, Inc., a community-based health system in
Massachusetts and Rhode Island; and TS Tech Americas, Inc., a
global supplier of automobile seats and interiors with 71 locations in
13 countries.
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™.
© 2015 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.
Footnote 2: Constant currency.
View source version on businesswire.com: http://www.businesswire.com/news/home/20151102006554/en/
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