UKG said total revenue for its fiscal fourth quarter increased to $872 million while full-year revenue rose 10% to $3.26 billion. Subscription revenue grew 19% for the quarter and 17% year over year. Earnings before interest, tax, depreciation and amortization (EBITDA) for the year grew to $801 million.
Noting the year was UKG’s first since the merger of Ultimate Software and Kronos, Chairman and CEO Aron Ain said the business growth came with increased profitability and EBITDA for the year exceeding the company’s expectations. At the same time, the company has increased its investment in R&D, he said. During the year, the company spent more than $530 on research and development.UKG says performance exceeded expectations during first year after Ultimate-Kronos merger. #HR #HRTech @ukginc Click To Tweet
“We had incredible bookings momentum to finish the year, a sign of the strong demand for UKG solutions and an indication of our potential for Fiscal 2022,” added UKG President Chris Todd.
During the fiscal year, the company hired more than 2,000 employees globally and grew its business through acquisition of firms including Great Place to Work Institute, an authority on workplace culture, and EverythingBenefits, a provider of end-to-end benefits technology.
Cultures and Employees
During the year, UKG also announced enhancements to the analytics in its UKG Pro and UKG Ready platforms, added tools to help employers handle the impact of the Covid-19 pandemic, expanded its collaboration with Microsoft and surpassed 250 technology and services partners in its UKG Marketplace.
The company also added a number of enterprise and multinational customers, including a supermarket chain with 280,000 employees, a health system with more than 120,000 workers, an industrial manufacturer with 60,000 and a consumer-packaged goods firm with 3,000.
Meantime, the company seems intent on maintaining its focus on its own employees and the idea that the right culture can lead to business success. For example, Ain said the acquisition of Great Place to Work gives the company’s ‘our purpose is people’ message “even more meaning as we extend our mission to focus as much on helping other organizations build their cultures as we do our own.” In other words, UKG sees itself expanding its scope to include helping other companies build their own strong cultures.
Pay on Demand
Separately, UKG introduced UKG Wallet, a new financial wellness platform. Powered by Payactiv, the service is available to customers using UKG Pro, UKG Dimensions and UKG Ready.
UKG also expanded its partnership with DailyPay, a provider of HCM, payroll, HR service delivery and workforce management solutions. The move allows DailyPay to further integrate into additional UKG products with no additional per-employee monthly fee.