UKG Reports Higher Earnings for Fiscal First Quarter

Earnings

UKG reported revenue of $776 million for its fiscal 2021 first quarter, which ended Dec. 31, 2020. Earnings before interest, tax, depreciation, and amortization (EBITDA), excluding float, increased 17% to $210 million, while subscription revenue excluding float grew 16%.

The company said financial growth was driven by new-customer orders, strong retention and customers enhancing their existing solutions, including the addition of new solutions available to them as a result of last year’s merger of Ultimate Software and Kronos Inc.

UKG reports higher quarterly earnings, says "we're better together." @UKGInc #HR #HRTech Click To Tweet

“This is the third consecutive quarter of proof that we are better together,” said Chairman and CEO Aron Ain.

UKG said “hundreds” of new and existing customers placed orders during the quarter, representing a range of industries including retail, mobile technology, utilities, restaurants and automotive manufacturing. More than 600 customers went live on UKG products around the world.

Among the product highlights the company touted were enhancements to the analytics in its Pro and Ready platforms and a new industry-specific solutions, with the launch of UKG Dimensions Gaming for casino resorts and gaming business customers around the globe.

In November, UKG reported that its total revenue increased by 9% during fiscal 2020, hitting nearly $3 billion. Earnings before interest, tax, depreciation and amortization (EBITDA) rose 10%, to almost $770 million. Those results were the first announced since Ultimate Software and Kronos merged to form UKG earlier in the year.  

From the beginning, analysts said that Ultimate and Kronos were close-to-perfect fits. They were home to similar cultures, headcount and revenue levels, not to mention remarkably complementary product lines. Ultimate, whose customer base tilted toward the enterprise, was known for its HCM solutions. Kronos was well-established across industries as a provider of workforce management products.

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