Kronos annual recurring revenue (ARR) bookings increased 24 percent with total revenue for the quarter approaching $350 million in Q1. ARR bookings continued to grow across HCM and workforce management solutions, fueling a strong start to 2019, said the company.
The company said with essentially all new Kronos customers opting for a cloud solution, more than 29,000 organizations worldwide are using Kronos Cloud. Subscription revenue, which is now the company's largest revenue stream, grew 25 percent in the quarter and has exceeded maintenance revenue for the first time.
“Following the strong momentum of closing the best quarter in the best year in company history, we had an exciting start to Fiscal 2019,” said Aron Ain, Kronos chief executive officer.
“We continue to heavily invest in our future – from aggressively growing our human capital management (HCM) presence and riding the wave of Workforce Dimensions adoption, to investing in the customer experience and further extending our deep focus on being a great place to work – Kronos is on track to continue growing our business in multiple dimensions. Following a strong close to the first quarter, we're eyeing another record-breaking Fiscal 2019,” said Ain.
Kronos has made enhancements to the Kronos Workforce Ready HCM cloud suite which includ a new user experience with fully responsive design; predictive analytics that help recruit, hire, manage, pay, and retain a thriving and engaged workforce; and the introduction of Kronos Benefits Center to streamline and automate benefits enrollment.
Significant Kronos HCM deals in the quarter included: one of the largest and most complex commuter rail systems in North America; a global distributor of raw material for equipment to the oil and gas industry; one of the largest school districts in the nation serving more than 100,000 students; a large non-profit organization focused on youth development, charitable activities, and humanitarian work; a care management and home healthcare provider; and a provider of home-delivered refrigerated foods.
Kronos introduced AIMEE, an artificial intelligence (AI) engine specifically built for managers and employees that analyzes massive amounts of data in real time to provide a variety of next-generation insights and automation to improve engagement, retention, scheduling, and performance while driving more informed decisions that support organizational success.
In the first quarter of Fiscal 2019, Kronos signed agreements with organizations around the world, including: Bluetree Group, the fastest-growing print business in the U.K.; Burneys, artisan bread maker for Warburtons, the largest bakery brand in the U.K.; Carinity, a non-profit healthcare organization in Australia; City Beach, Australia's biggest surf, skate, and fashion retailer; Elior Spain, one of the leading operators in catering, concession catering, and support services in Europe; El Paso County, one of the most populous counties in Texas with more than 800,000 residents; Fletcher Building, a New Zealand manufacturer and distributor of building materials and residential and commercial construction with 20,000 employees in 40 countries; General Atomics Aeronautical Systems, Inc., a provider of unmanned aerial vehicles and radar solutions for the U.S. military and commercial applications worldwide; The Hongkong and Shanghai Hotels, a hotel group in China with 10,000+ employees globally; Les Ambassadeurs Club, one of London's most exclusive and distinguished gaming establishments; Oji Fibres Solutions, a leading producer of market pulp, paper, and fibre-based packaging in New Zealand; SummitCare, a residential aged care, dementia-specific residential care, and other aged care services provider in Australia; Sunac China, a top real estate company listed on the Hong Kong Stock Exchange; Villa Healthcare, a post-acute and long-term provider with 35 facilities in Illinois, Michigan, Minnesota, Ohio, and Wisconsin.
