What Inflation? UKG Grows Revenue, Adds Customers

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UKG reported its revenue grew to $960 million during the fourth quarter ended Sept. 30, while its full-year revenue rose to about $3.7 billion. Subscription revenue grew 15% from the prior year.

CEO Chris Todd said the quarter was the most successful in the company’s history, “despite the inflationary environment we are in.” The company is adding new customers from across the business landscape, he said, including the small business, mid-market and enterprise segments.

What Inflation? @UKGInc Grows Revenue, Adds Customers #HR #HRTech Share on X

Meanwhile, existing customers are adding additional UKG products and migrating to updated solutions.

During fiscal 2022, the company spent about $625 million on research and development, a 13% increase from last year. Over the past five years, UKG said it has spent $2.5 billion on R&D.

The company also announced the launch of FleX by UKG, as new technology platform designed to help organizations evolve with the needs of their workforce by connecting business to emerging applications.

UKG solutions will also be embedded into popular systems of engagement and communication, beginning with Microsoft Teams. The company believes this initiative will help reduce the disruption caused by users switching between multiple applications.  

Acquisition and Expansion

UKG closed six acquisitions in 17 months — including the November 2022 acquisition of workforce planning startup Quorbit — as part of its growth and product roadmap strategy. Other acquisition include the HR and workforce management solutions provider Ascentis Corporation; Interboro Systems Corporation, which helped the company expand its presence in the LATAM and Caribbean markets; and SpotCues, which provides a mobile communications and engagement platform for frontline workers. (It’s now called UKG Talk.)

Meanwhile, UKG surpassed 70,000 customers worldwide during fiscal 2022 and nearly doubled the number of $1 million-plus annual recurring revenue deals from fiscal 2021. The company’s SMB bookings, primarily led by UKG Ready solutions, grew by 72% in the quarter and 56% year over year.

Image: UKG

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