Kronos Incorporated today announced financial results, company advancements, and customer successes for the second quarter of Fiscal 2016. Kronos recognized revenue for the quarter increased to $291.2 million. Earnings before interest, tax, depreciation, and amortization (EBITDA) was $83.2 million.1 Annual Recurring Revenue (ARR) now represents more than 60 percent of total revenues and is the fastest-growing part of the business.
“As a result of tremendous performance throughout every corner of our company, we continue to lead the industry’s shift from on-premise software to the cloud,” said Aron Ain, Kronos chief executive officer. “We are investing heavily back into our business with the goal of continuously delighting our customers around the world. With a record pipeline across our entire product portfolio – from our Workforce Central workforce management suite for large enterprises and our Workforce Ready human capital management suite for small and midsize businesses – we anticipate again exceeding our projections for this fiscal year. Thank you to Kronites around the world for the role they play and the inspiration they bring to Kronos every day. As I often say, ‘Engaged Kronites equals an exceptional customer experience!'”
SaaS Driving Recurring Revenue Growth
In an ongoing trend, Kronos again delivered strong growth in the cloud, with subscription revenue accelerating, increasing by 57 percent.
Adoption Accelerating Among Small and Midsize Businesses (SMB) in Human Capital Management(HCM)
Kronos – long known as the global leader in workforce management – is rapidly expanding its footprint in the HCM market.
Kronos Workforce Management: Vendor of Choice for Large Employers
Kronos secured many $1+ million contracts such as a multinational manufacturer of automotive parts; a health system in Florida with more than 1 million patient interactions per year; a global pharmaceutical and consumer packaged goods corporation operating in more than 50 countries with more than 250 subsidiaries; and an operator of major car rental services in the U.S. with more than 85,000 employees. These transactions added to an already robust enterprise customer community that includes more than half of Fortune 1000® companies. Some of these organizations expanded their use of Kronos solutions to accommodate growth or add additional applications; some chose Kronos to replace competitive workforce management applications; and others automated manual processes for the first time or replaced legacy homegrown applications.
Kronos Products and Services Revolutionizing Workforce Management
Kronos constant currency total product bookings increased 18 percent compared to last year, with sales increasing across all deal sizes.
Global Momentum Accelerates
Revenue generated outside North America increased 18 percent and product bookings increased 33 percent year over year (both percentages in constant currency). Significant contracts included a major department store with more than 180 locations in Australia; a large global furniture retailer with locations in China; a luxury fashion retailer based in France with more than 450 locations around the world; a global high-end fashion brand headquartered in Germany; and a major theme park complex in China with more than 15 million visitors per year. All regions exceeded expectations, and China closed its third-consecutive $1 million quarter.
Kronos WorkInspired Culture
Second-Quarter Customer Success Around the Globe
In the second quarter of Fiscal 2016, Kronos signed agreements with organizations around the world, such as: 7-Eleven Australia, a privately held chain licensing the U.S. brand with 620 stores in Australia; Capital Senior Living Corporation, a provider of home care services, independent living, and assisted living for senior adults; Chimelong, an operator of parks and hotels in China; City of Denton, a city in Texas; City of McAllen, a city in Texas; County of La Crosse, a county in Wisconsin; Johnson Controls Automotive U.K., a leading manufacturer of automotive seat systems; Maxim’s, one of the largest dining chains with 900 stores throughout China; Oakland County Sheriff, a sheriff’s office in Michigan; Pankoo, a dining chain with more than 160 stores in China; Sitel Operating Corporation, an outsourcing provider of customer experience management; Spinx Company Inc., an operator of more than 80 convenience stores in South Carolina; SupplyOne, a premier packaging services and solutions company;Wellstar Health System, a not-for-profit health system based in Georgia; Woods Services, a service organization for people with exceptional challenges and disabilities; Upson Medical Center, a 75-bed regional medical center in central Georgia.