UKG Announces First Quarter FY2022 Financial Results, Subscription Revenue Growth Continues


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LOWELL, Mass. & WESTON, Fla.–(BUSINESS WIRE)–
UKGone of the world’s leading providers of human capital management (HCM), payroll, HR service delivery (HRSD) and workforce management solutions, today announced its financial results for the first quarter of the financial year 2022, ended December 31, 2021.

Total revenue for the quarter increased to $872 million, with non-floating subscription revenue up 15% year-over-year.1 Earnings before interest, taxes, depreciation, and amortization (EBITDA) was of $200 million.

“Our diversified business met and exceeded many of our financial targets in an unprecedented quarter, which produced a strong finish to quarterly bookings,” said UKG Chairman Chris Todd. “We met our plan for the quarter in terms of bookings and annual recurring revenue under contract. Our subscription revenue trend, the largest and fastest growing revenue generator for UKG, has been up sharply over the past six quarters due to the momentum of UKG Pro and UKG Dimensions. I firmly believe that the strength of our business rests solidly on the continued dedication of U Krewers around the world and the partnerships we have with our remarkable customers.

Company Highlights

  • Around the world, new and long-time customers have placed orders for UKG HCM, Payroll, Talent, Workforce Management, Scheduling and HRSD solutions, including:

    • the world’s largest integrated nonprofit medical group with 73,000 employees;

    • a facility management and building maintenance provider with 24,000 employees serving organizations across the United States and Canada;

    • a lingerie, apparel and beauty products retailer with a global team of 30,000 associates;

    • a national provider of janitorial, staffing and security services based in the United States with more than 10,000 employees;

    • a global leader in commercial refrigeration, dedicated to the design, development and manufacture of refrigeration equipment, and one of the largest manufacturers of consumer packaged goods in Mexico;

    • a world leader in the design, engineering and delivery of facilities for high-tech industries, based in Germany, with more than 5,000 employees in 20 countries;

    • a British aerospace, defense and nuclear engineering services company with 36,000 employees;

    • the largest parcel delivery service in Europe, with 97,000 delivery experts and a network of over 58,000 collection points; and

    • an Irish global nutrition group present in 32 countries.

  • UKG honored 13 deserving customers with Innovation Awards celebrating their pioneering use of UKG HCM and Workforce Management products at customer conferences UKG works and UKG connections.

  • UKG has received awards and accolades from influential software review sites which are a direct result of user ratings and reviews. These sites include:

    • G2, which ranked Pro #1 in its Enterprise Relationship Index for Core HR and Payroll for Fall 2021. In addition to Pro, UKG Ready is included in the G2 Enterprise Relationship Index for Core HR.

    • SoftwareReviews, which ranked Pro #1 in its 2021 Emotional Footprint Awards for HCM. The Emotional Footprint Awards evaluate products based on scores drawn from many aspects of the supplier-customer relationship, as well as product effectiveness, to create accurate and unbiased overall end-user impressions.

    • Trust Radius, which recognized UKG for the second consecutive year with a TrustRadius Tech Cares award for its focus on business social responsibility. The TrustRadius Tech Cares Award is given to technology companies that demonstrate environmental sustainability, a positive work culture and strong diversity, equality and inclusion programs, as well as philanthropy and volunteerism.

  • UKG continues to be the only HCM vendor recognized as a leader by all major industry analysts and peer review sites, with Q1 analyst accolades including:

  • Organizations around the world exceeded 15 million approved leave requests in Dimensions in early October 2021, and most recently helped approve the 22 millionth leave request, an increase of more than 41% in just one quarter.

  • UKG has improved the UKG InTouch DX with UKG Contactless IDa facial scanning option that helps people feel safer, clock in faster, and securely unlock access to scheduling, time off, and other workplace information with a contactless experience.

  • With one of the largest and most collaborative partner ecosystems fully focused on the HCM industry, UKG welcomed nearly two dozen additional technology partners who share the UKG vision of a frictionless technology experience for employees in the UKG market and whose solutions serve key markets spanning North America, Latin America, EMEA and APAC.

  • UKG Wallet was introduced, offering a new financial wellness platform designed to provide people with immediate access to their earned pay while giving them budgeting tools, educational resources and financial advice.
  • UKG announced UKG Fill the Gap initiative – a multimillion-dollar global pay equity initiative to raise global awareness and action to address pay disparities between men, women and underrepresented groups that continue to have a significant impact on today’s workforce.

  • UKG received several awards for its corporate culture and innovative HR practices during the quarter, including being named by Comparably as one of the best companies for women and the best companies for diversity; The Boston Globe again naming UKG Top Place to Work in Massachusetts, where the company is headquartered, and the UKG HR team ranking #7 in technology and #24 overall in HR Today inaugural HR 100: Top Teams in HR Awards.

“As I reflect on the past few months, I am inspired by the many people who have gone above and beyond during this difficult time,” said Aron Ain, Chairman and CEO of UKG. “We are excited for the future. We all succeed together.

About UKG

At UKG, our purpose is people. Resulting from a merger that created one of the largest cloud computing companies in the world, UKG believes that organizations succeed when they focus on their people. As the world’s leading provider of HCM, payroll, HR service delivery and workforce management solutions, UKG offers award-winning Pro, Dimensions and Ready solutions to help tens of thousands of organizations across geographies and in all industries to drive better business results, improve HR efficiency, streamline the payroll process, and help make work a better, more connected experience for everyone. UKG has 13,000 employees worldwide and is known for its inclusive corporate culture. The company has won many awards for culture, products and services, including consecutive years Fortuneit’s List of top 100 companies to work for. To learn more, visit ukg.com.

Footnote 1: UKG tax results are pro forma as if Kronos Incorporated and Ultimate Software were combined for all periods presented. Ultimate’s results have also been pro forma to align with the UKG fiscal year calendar, which ends September 30. All financial information in this press release is presented using non-GAAP financial measures and amounts are approximate. UKG believes that non-GAAP measures of financial results provide useful information about certain financial and business trends relating to UKG’s results of operations. Non-GAAP revenue includes GAAP revenue excluding the impact of deferred revenue impairment associated with purchase accounting for certain mergers and acquisitions. EBITDA consists of EBITDA as defined in the Company’s credit agreement, which excludes items such as: (1) stock-based compensation expense for stock options and equity awards in accordance with ASC 718 and ordinary dividend compensation expense; (2) depreciation of property, plant and equipment; (3) amortization of intangible assets; (4) acquisition-related deferred revenue and write-downs and expenses of prepaid commissions, including consulting, legal, accounting, acquired employee costs and integration costs; and (5) unusual costs or one-time expenses. For the purposes of calculating growth rates, prior years have been restated for acquisitions, divestitures and pro forma for the combination of Kronos and Ultimate.

Copyright 2022 UKG Inc. All rights reserved. For a full list of UKG brands, please visit ukg.com/brands. All other trademarks, if any, are the property of their respective owners. All specifications are subject to change.

Contact UKG:

Heather Gironemus

heather.geronemus@ukg.com

Source: UKG