Kronos Reports Strong Third-Quarter Results; Cloud Business Rapidly Accelerating
August 13th, 2012 at 11:14 am
CHELMSFORD, Mass., Aug. 13, 2012 — Underscoring the rapid acceleration of its Kronos Cloud business, Kronos Incorporated today announced a 60 percent year-over-year increase in cloud revenue and a 50 percent increase in cloud customer adoption. Kronos also today announced financial results, company advancements, and customer successes for the third quarter of Fiscal 2012, including double-digit growth in new customer contracts. Kronos revenues for the quarter increased to $224.8 million. Earnings before interest, tax, and amortization (EBITA) was $59.9 million.1
“Customers are enthusiastically embracing our Kronos Cloud and SMB offerings,” said Aron Ain, Kronos chief executive officer. “In addition, the explosion of Big Data is driving rapid adoption of our labor analytics solution. The powerful combination of Kronos Cloud adoption, SMB, and our next-generation workforce management solutions – along with our aggressive international expansion efforts and deep vertical market expertise – position Kronos very well.”
Third-Quarter News Facts
- Accelerated SMB strategy – Kronos is revolutionizing the way small and midsize businesses (SMBs) manage their workforce. Kronos unveiled its new SaaS Workforce Ready™ product suite designed to help SMBs stay competitive through single-source access to real-time employee data. Capitalizing on a hosted, multi-tenant architecture and shared common technology platform to provide a universal employee record and single user interface, Workforce Ready includes time and attendance, HR, and payroll solutions. Momentum also continued in the company’s reseller partner channel where more than 1,100 new SMB customers were added in the past 120 days alone. Today, nearly 400,000 employees across more than 5,400 organizations use the Kronos SMB platform.
- Fast-growing cloud business – As more organizations around the world adopt cloud computing, Kronos is actively responding to a rapid increase in demand. Kronos Cloud revenues increased 60 percent year over year and the Kronos Cloud customer base increased 50 percent. The Kronos Cloud is now being used successfully at thousands of organizations on a global basis including one of the world’s largest hotel chains, one of the world’s most successful online retailers, a leading global cosmetics company, one of the largest healthcare systems, a leading financial services institution, a leading multinational manufacturing company, and some of the largest state and local government entities. Combined with rapidly building demand for Kronos’ new cloud-based Workforce Ready suite, Kronos is successfully bringing customers of all sizes into a cloud computing environment.
- Enhanced Big Data labor analytics capabilities – With the release of an enhanced labor analytics solution built to deliver instant insights that inform fact-based decisions, Kronos is making it easier than ever for organizations to find value in Big Data and turn their workforce into a competitive advantage. Workforce Analytics™ is now the fastest-growing product in Kronos’ workforce management portfolio, enabling organizations to easily access and leverage their workforce data to identify, predict, and manage opportunities for cost savings and productivity gains.
- Aggressive international growth strategy – Kronos continues to experience double-digit year-over-year international product revenue growth. Supporting its international growth strategy and strengthening its presence in the Europe, Middle East, and Africa (EMEA) region, Kronos acquired UK-based SMART Computer Holdings and its Spanish affiliate SMART Human Logistics. The acquisition gives Kronos a leadership position in the UK healthcare market through SMART’s domain expertise and well-established base of NHS Trust customers, and also establishes a physical presence for Kronos in Spain. In addition, Kronos extended its reach into the Middle East through a reseller agreement with OCSHI.
- Vertical performance – Kronos continued to gain market share and traction as the company experienced another quarter of double-digit growth in contracts with new customers. The company’s highly focused vertical go-to-market strategy is contributing to Kronos’ high win rate in competitive deals.