Kronos Reports Exceptional Third-Quarter Results
August 3rd, 2015 at 12:44 pm
CHELMSFORD, Mass., July 23, 2015—Kronos Incorporated today announced financial results, company advancements, and customer successes for the third quarter of Fiscal 2015. Kronos recognized revenue for the quarter increased to $274.2 million. Earnings before interest, tax, depreciation, and amortization (EBITDA) increased to $88.8 million1.
“Kronos continues to operate like a start-up company even after nearly 38 years in business with exciting momentum, expansion, and agility,” said Aron Ain, Kronos chief executive officer. “Among the many highlights of our third quarter include: 84 percent of new customer product bookings were from an array of Kronos Cloud offerings; our largest-ever SaaS transaction; a major new release of our flagship Workforce Central platform; shipment of our one-millionth time clock; and yet more external recognition of our inspiring work culture. I am so proud of our accomplishments, all of which ultimately help organizations around the globe to best manage their most strategic asset – their workforces.”
Third-Quarter News Facts
- Kronos Cloud expansion – More than 15,000 organizations now run in the Kronos Cloud, representing the majority of Kronos’ global customer base. During the quarter, Kronos software-as-a-service (SaaS) bookings increased 74 percent and workforce management cloud revenue increased 58 percentas new customers deploy in the cloud and existing customers move their on-premise instances to the cloud at an accelerating pace.
- New customer bookings in the quarter were from an array of Kronos Cloud offerings, including almost all of the largest transactions. Kronos secured its largest-ever new SaaS transaction during the quarter, representing $22 million over a multi-year period. Additional new Kronos Cloud customers announced during the quarter include Crayola LLC; Mercy Hospital, Iowa City; Murray-Calloway County Hospital; Smoothie King;Willamette Dental Group; and YMCA of Greater Boston.
- The pace of existing customers converting from on-premise instances to a Kronos Cloud offering is exceeding Kronos’ high expectations. Due to this continued high demand, Kronos announced a Kronos Cloud Readiness assessment service to help new and existing customers maximize the value of migrating to the Kronos Cloud, which allows customers to rely on Kronos to maintain their workforce management solution, freeing up IT resources to focus on other aspects of the business.
- Employer of choice – Kronos has become widely recognized as an employer of choice according to its employee engagement survey results and external recognition such as:
- Growth through innovation – Kronos software bookings increased 17 percent year over year1.
- Kronos not only announced the latest release of its Workforce Ready suite for small and midsize businesses (SMBs), it also reimagined workforce management with the release of Workforce Central 8. This latest release of the company’s flagship product suite combines a reimagined user experience with unmatched industry-specific functionality, powerful analytics, comprehensive global capabilities, and proven cloud delivery for a complete, uncompromised solution that allows organizations to control labor costs, minimize compliance risk, improve workforce productivity, and increase employee engagement – regardless of an organization’s industry or where they do business.
- While Kronos revenues are primarily derived from software and services, during the quarter the company also achieved a hardware milestone by shipping its one-millionth time clock.
- Global successes – Kronos international product bookings increased 21 percent year over year2.
- Kronos continues to invest in regions where it sees strong growth potential. Soon after the opening of its new Latin America headquarters in Mexico City, Kronos relocated its Delhi/Noida, India operations to a new 93,000 square-foot space to support its growing software development, Kronos Cloud, professional services, finance, and information technology functions. In the coming weeks, Kronos will unveil its new and expanded UK headquarters in Bracknell, England.