UKG’s total revenue reached $1 billion for the first time during the company’s fiscal 2023 first quarter, up 15% year over year and highlighted by a 20% increase in subscription revenue. Earnings before interest, tax, depreciation and amortization (EBITDA) grew faster than revenue in the mid-20th percentile during the period ending Dec. 31, 2022.
CEO Chris Todd said customer migration to the company’s cloud solutions more than doubled compared to last yeagr, with a record number of new customers signing up for full-suite HR, payroll and workforce management solutions.
UKG spent a record amount on R&D during 2022, resulting in a record number of new product innovations, programs and enhancements in a single quarter. These include:
- UKG Great Place to Work, which combines Great Place To Work benchmarks and Trust Index survey results with UKG Pro HCM data to help business leaders understand their drivers of engagement and performance.
- UKG Flex, a platform purpose-built to help organizations evolve alongside the needs of their workforce by connecting the business with applications that meet people where they want to work.
- Growing partnerships with a variety of technology companies, which allows UKG solutions to be embedded into different systems of engagement and communication, which allows employees to complete actions in the application they prefer.
- UKG Labs, an ecosystem of early-stage HCM companies from around the world.
The company also acquired Quorbit, a U.K.-based workforce planning startup specializing in solutions for workers in front-line and hourly roles. UKG also surpassed 75,000 customers world-wide.
In January, UKG and Hireology announced a “deeper” partnership, paving the way for the companies to begin an integration of Hireology and UKG Pro, the company’s payroll solution. The pair began their original collaboration and integration in July of 2022. Through the collaboration, employers can transfer new hire data from Hireology to UKG, which the companies said will make onboarding new hires faster and more efficient. In addition, the partnership will mean better visibility into system data and reporting.