Kronos Announces Record 2019: Annual Recurring Revenue Crosses $1 Billion

October 30, 2019

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Editor’s Note: As the leader in HCM technology consulting services, and an official Kronos services partner, HRchitect is widely recognized as the go-to resource for workforce management technology services. Working with more than 150 clients across the globe on workforce management related projects over the past decade, our experience includes Project Management, Implementation, Process Analysis/Redesign, Training, Optimization, Reporting, Integration, Change Management, Client-side implementation assistance, and Ongoing Support.


Historic Workforce Dimensions Adoption and Record Year for HCM Drives Subscription Revenue Growth to 30% 


LOWELL, Mass. ,

Kronos Incorporated today announced financial results, company advancements, and customer successes for Fiscal 2019. Kronos revenue for the year was $1.433 billion. Earnings before interest, tax, depreciation, and amortization (EBITDA) was over $378 million 1.

“Kronos set a new mark with the best quarter in the best year in company history. Our performance across all aspects of the business driven by the energy, passion, and compassion for how Kronites support our customers continues to energize me every day,” said Aron Ain, Kronos chief executive officer. “Workforce Dimensions has officially become the fastest-adopted solution in our history, while our exceptional growth in HCM led by Workforce Ready continues to drive new cloud opportunities worldwide. It took Kronos 30 years to cross $500 million in recurring revenue – yet in less than a decade, annual recurring revenue crossed $1 billion and is the fastest-growing part of our business. And even with our aggressive investments across the company, profitability remains ahead of plan – simply incredible.”

SaaS Success Fueled by Workforce Dimensions and HCM, as ARR Catapults Beyond $1 Billion

In a year when Kronos was celebrated for its groundbreaking cloud transformation – including Fast Company naming it one of the Best Workplaces for Innovators – Kronos again delivered exceptional SaaS growth. With 33,000 organizations worldwide leveraging a Kronos Cloud solution across Workforce Dimensions, Workforce Ready, Workforce Central, and other product offerings, SaaS is now the choice for nearly all new customers.

  • Kronos annual recurring revenue (ARR) exceeded $1 billion for the first time ever.
  • Percent of total revenue from ARR increased to over 70%, making it the largest and fastest-growing aspect of the business.
  • Subscription revenue was up 30%, fueled by Workforce Dimensions adoption and an all-time best year for human capital management (HCM) deals.
  • With overall customer retention across all suites remaining very strong throughout the year, Kronos had another record year converting existing on-premise customers to a SaaS solution, as hundreds of existing on-premise customers migrated to the Kronos Cloud.

Record-breaking Workforce Dimensions Adoption Accelerates Future of Work Innovation

In the first 18 months of availability, Workforce Dimensions soared past 600 customers worldwide, making it the fastest-adopted solution in the company’s history.

Continued HCM Business Growth Driven by New Workforce Ready Customers

Following Kronos being named “HR Technology Solutions Provider of the Year,” HCM subscription bookings increased 29%, driven by a surge of Workforce Ready orders worldwide and complemented by Workforce Dimensions customers adding HR applications, cloud payroll, and payroll services.

Record Year for Large Deals, International Success, and R&D Investments Fortifies Kronos Position as Global Workforce Management Leader

Kronos topped last year’s record-setting mark for large deals, while international teams saw remarkable growth, strengthening the company’s position as the global leader in enterprise workforce management.

  • International regions grew bookings 35% overall, including exceptional growth in APAC, Canada, and EMEA, as each region dramatically exceeded goals.
  • With more than 2,000 engineers working worldwide to deliver next-generation enhancements, features, and functionality across Workforce Dimensions, Workforce Ready, Workforce Central, and other product offerings, Kronos invested a record $200 million in R&D in Fiscal 2019.
  • Workforce Central enhancements – including an unrelenting focus on complex and ever-changing labor requirements to meet the needs of customers in multiple countries – helped bring the employee experience to life at customers such as Dave & Buster’s while driving payroll accuracy and efficiency with automated time and attendance at customers including the University of Toronto.

Focus on Partners, Unmatched Customer Experience Unlocks Better Business Outcomes

Partner-influenced business increased significantly while exponential growth of the Workforce Dimensions Technology Partner Network complements the award-winning customer experience at Kronos to drive ROI and solve specific business challenges across a variety of industries worldwide.

Award-winning Employee Engagement Reaches Record Heights Around the World

Kronos surpassed 6,000 employees worldwide – hiring more Kronites in 12 months than ever before – as employee engagement reached an all-time high of 89% with a 91% survey participation rate.

Fourth Quarter Customer Success Around the Globe

In the fourth quarter of Fiscal 2019, Kronos signed agreements with organizations around the world, including: Atlanta Public Schools, one of the largest school districts in Georgia serving 52,000 students across 18 schools, organized into nine K-12 clusters with 58 neighborhood schools, six partner schools, 18 charter schools, two citywide single-gender academies, and three alternative programs; Bond University, Australia’s #1 university for the student experience; City of Southlake, located near Dallas, Texas with a population of 27,000 residents; Community College of Allegheny County, a nationally renowned community college serving 43,000+ students each year; DART, a public transit agency serving Dallas, Texas and 12 surrounding North Texas cities with a multi-modal network of buses, light rail, commuter rail, and paratransit services for more than 200,000 passengers each day; Fishers Service Ltd., a U.K. provider of commercial laundry services; The Distribution Center for Bestseller, a famous Denmark fashion brand with 8,000 stores in China; Healius, one of Australia’s leading healthcare companies; Lifespan Corporation, Rhode Island’s largest health system and largest employer with a network of nationally recognized hospitals; Luxottica, a leader in the design, manufacture, and distribution of fashion, luxury, and sports eyewear; Marriott Middle East, part of the largest hotel operator in the world, encompassing a portfolio of more than 7,000 properties globally; Metro Mechanical Services Ltd., a U.K. commercial drainage specialist; Mingara Recreation Club, the destination for Australia’s Central Coast restaurants and bars, entertainment, promotions, kids play areas, sport and fitness facilities, corporate events, celebrations, and community involvement; Moffitt Cancer Center, a top-10 cancer hospital and National Cancer Institute Comprehensive Cancer Center, pioneering advances such as CAR T cell therapy; Monash Health, Victoria, Australia’s largest public health service; National Timber Group, the largest independent added-value timber distribution and processing group in the U.K. created through the acquisitions of market-leading brands Arnold Laver, North Yorkshire Timber, Rembrand, and Thornbridge; UTMB Health, an academic medical center and comprehensive health system of hospitals and a network of clinics; and Whistl U.K. Ltd., a leading delivery management company.

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