LAS VEGAS, KronosWorks, 05 Nov, 2018

Kronos Incorporated today announced financial results, company advancements, and customer successes for Fiscal 2018. Kronos revenue for the year was $1.4 billion. Earnings before interest, tax, depreciation, and amortization (EBITDA) was $383 million1.

“Kronos just closed the best quarter in the best year of the company’s 41-year history. Kronites worldwide should be extremely proud,” said Aron Ain, Kronos chief executive officer. “Our internal revolutionary start-up tasked years ago with ‘putting ourselves out of business’ has completely changed the face of workforce management with Workforce Dimensions. Market adoption of Workforce Dimensions far exceeded even our most optimistic expectations in less than a year of availability. Simultaneously, investments in and success of our fast-growing HCM, HR, and payroll offerings opened the door to new customer opportunities where Kronite vertical expertise is a true differentiator. Our future as a SaaS organization truly has unlimited potential for our employees, our partners, and, of course, our customers around the globe.”

Workforce Dimensions Growth Soars Beyond Expectations, Further Accelerating SaaS Success

New and longtime customers flocked to Workforce Dimensions, the groundbreaking workforce management solution from Kronos, which catapulted overall subscription revenue growth to 30 percent as the fastest-growing part of the business.

  • More than 1 million hourly and salaried employee licenses have been ordered for Workforce Dimensions.
  • Workforce Dimensions orders in the fourth quarter alone doubled total customer orders in the first three quarters of the fiscal year combined, surpassing overall expectations by 50 percent.
  • Three out of every four Workforce Dimensions deals came from existing Kronos customers migrating to realize all the benefits of the future-ready solution today.
  • Significant $1 million+ Workforce Dimensions deals in the quarter included: one of the largest cancer treatment and research centers in the world; the world’s largest commercial bakery manufacturer with operations in more than 20 countries; a Canadian healthcare system with 40,000+ employees; a U.S. grocery store operator with 200+ stores and 15,000 employees; one of the largest amusement-resort operators in the world; one of the largest natural gas distributors in the U.S.; and a multinational leader in omnichannel commerce technologies and operations.

HCM Business Surges on Continued Workforce Ready Success, Kronos Payroll Growth

Kronos HCM has quickly grown into a significant business, driven primarily by continued Workforce Ready growth and complemented by Workforce Dimensions and Workforce Central customers adding HR applications and payroll services.

  • Subscription bookings for Kronos HCM business was up 37 percent over last year.
  • A significant number of Workforce Dimensions customers chose to attach Kronos HCM capabilities.
  • Kronos saw a record year for new customers choosing Workforce Ready, while the HCM cloud solution continues to scale to meet the needs of larger organizations, with average employee size for new deals increasing by 21 percent.
  • It was the most successful year ever for Kronos Payroll, including an accelerating increase in the selection of Kronos Payroll Services to simplify the management of payroll taxes and payments as well as the acquisition of longtime partner Advanced Payroll Systems.
  • Significant new HCM deals in the fourth quarter included: one of the largest egg producers in the U.S.; a leading provider of innovative and reliable climate and HVAC solutions; a provider of comprehensive security, training, and fingerprinting services; and the department that oversees food services, contract services, and educational supplies to a large state university.

SaaS Deals Across All Product Suites Combine to Set ARR Bookings Record

Kronos again delivered exceptional SaaS growth, with more than 28,000 organizations worldwide now leveraging a Kronos Cloud solution across Workforce Dimensions, Workforce Ready, and Workforce Central, including nearly all new customers.

  • Kronos annualized run-rate business now exceeds $1 billion of annual recurring revenue (ARR) for the first time ever.
  • Kronos had another record year converting long-standing, on-premise customers to a SaaS solution, as hundreds of existing Kronos on-premise customers migrated to the Kronos Cloud.

Record Year for Large Deals as Kronos Vertical Industry Teams Surpass Goals Worldwide

Kronos topped last year’s record-setting mark for $1 million+ deals in Fiscal 2018, strengthening its position as the worldwide leader in global enterprise workforce management.

  • Kronos had a record year for $1 million+ wins, including many additional new fourth quarter customer deals.
  • All key vertical industry sales teams met or exceeded goals for the year, while most saw double-digit growth led by manufacturing (30 percent), services and distribution (29 percent), healthcare (18 percent), and public sector (15 percent).
  • Globally, exceptional growth happened in Canada, LATAM, and APAC, as each region exceeded goals – including nearly 20 percent of total Workforce Dimensions deals with international organizations.

Future of Work is Now Driven by Investments in Innovation, Partners, and Customer Success

Kronos invested a record $182 million on R&D in Fiscal 2018 to deliver next-generation enhancements, features, and functionality.

Employee Engagement, Passion, and Innovation Drives Kronos Growth Worldwide

Led by the vision of CEO Aron Ain – a three-time winner of Glassdoor’s Top CEOs honor and author of WorkInspired: How to Build an Organization Where Everyone Loves to Work– Kronos has grown to 5,600 Kronites worldwide while continuing to secure top workplace honors around the globe.

Fourth Quarter Customer Success Around the Globe

In the fourth quarter of Fiscal 2018, Kronos signed agreements with organizations around the world, including: 7-Eleven Stores, a retailer with nearly 2,000 convenience stores across mainland China, Hong Kong, and Macau; Accolade Wines, the number one wine company in the U.K. by volume, producing some of the world’s best-known brands; Anderson Hospital, an independent, non-profit hospital serving patients throughout Madison County, Illinois; Advanced Plastics Ltd., a supplier of technical injection moulded products located in the U.K.; Belmont Village, a leading developer, owner, and operator of premier senior living communities in the U.S.; Federated Co-operatives Limited (FCL), a wholesaling, manufacturing, marketing, and administrative co-operative owned by more than 170 independent retail co-operative associations in Canada; Grupo Comercial Control, a Mexican retailer with more than 50 years of experience and locations in more than 50 cities across the country; Hamilton Health Care System, a non-profit, fully integrated system of care serving northwest Georgia; Hong Kong Civil Aviation Department, the first wing of government in Greater China; Hy-Vee, an employee-owned chain of more than 245 supermarkets located throughout the Midwestern U.S.; Lakeland, a British kitchenware retail chain; Nevada Department of Corrections, the state agency that houses 14,000 felons in 18 facilities across the state; Sheetz, a family-owned chain of 500+ convenience stores located in several U.S. states; Telenomics, one of the largest O2 mobile network operator franchise partners in the U.K.; Watco Companies, a Kansas-based company providing transportation, terminal and port, supply chain, and mechanical solutions for customers across North America and Australia; Waterside Holiday Group, a premium holiday park operator on the south coast of the U.K.; and Ziemann Sicherheit, a provider of case security services in Germany.

Supporting Resources

About Kronos Incorporated

Kronos is a leading provider of workforce management and human capital management cloud solutions. Kronos industry-centric workforce applications are purpose-built for businesses, healthcare providers, educational institutions, and government agencies of all sizes. Tens of thousands of organizations — including half of the Fortune 1000® — and more than 40 million people in over 100 countries use Kronos every day. Visit Kronos: Workforce Innovation That Works.