LOWELL, Mass. & WESTON, Fla.–(BUSINESS THREAD)–UKGa leading provider of HR, payroll and workforce management solutions for all people, today announced financial results for the third quarter of fiscal year 2022, ending June 30, 2022.
Total revenue for the quarter was $925 million, with subscription revenue excluding float growing 15% year-over-year.1
“We had another outstanding quarter, building on an incredible second quarter, with strong bookings growth that exceeded our plan,” said UKG CEO Chris Todd. “More than 70% of new clients selected UKG’s full suite of HR, payroll and workforce management solutions, an all-time high. Client migrations to our modern workforce management solution have also increased by 64% compared to the same quarter last year, with a significant number of these customers attaching our HR and Payroll solutions. Demand for our products remains high as organizations around the world they’re looking for a single solution to find, hire, retain and inspire great people.”
Globally, new and long-standing clients placed orders for human capital management (HCM), payroll, talent, workforce management, scheduling and HR service delivery solutions, including: a multinational technology company American that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence, with more than one million employees; a French multinational with 166,000 people that manufactures and distributes materials to the construction and industrial markets; an American multinational focused on transportation, e-commerce and services, with 550,000 employees; one of India’s largest multinational information technology companies providing business consulting, IT and outsourcing services, with operations in over 50 countries and 335,000 employees; a global American hospitality and entertainment company with more than 70,000 employees; a large Canadian county consisting of 11 municipalities and a population of more than 125,000 inhabitants; a multinational imaging and electronics company with more than 90,000 employees; a satellite TV provider with more than 14,000 associates in the US; a global market and technology leader in steel wire transformation and coating technologies, headquartered in the Netherlands and operating in more than 45 countries with more than 27,000 employees worldwide; a supermarket operator with hundreds of stores and 30,000 employees; and a healthcare company with more than 60,000 employees in 30 US states. UKG welcomed new customers including Dana-Farber Cancer Instituteworld-renowned leader in adult and pediatric cancer treatment and research, and Services of the M Groupone of the largest critical infrastructure services organizations in the UK and Ireland, and announced successes with organizations such as From Portillo, Eventide communities of elderly peopleand the The National Hockey League (NHL) team Seattle Kraken and its Climate Pledge Arena. UKG was recognized by Google Cloud for driving diversity and inclusion in the DevOps fieldas well as to provide solutions to help mitigate employee burnout, especially during the COVID-19 pandemic.
UKG partnered with Uber to help organizations deliver impactful rewards and incentives to people, in a unique association of its kind. UKG announced a historic, multi-year partnership with the National Women’s Soccer League (NWSL), increasing the Challenge Cup’s annual bonus pool by ten in 2022, with plans to double the bonus again in 2023 to make the UKG Challenge Cup 2023 the first women’s professional football tournament to achieve pay equity with the game male equivalent With one of the largest and most collaborative partner ecosystems focused entirely on the HCM industry, UKG welcomed new technology partners focused on recruiting, retaining and developing people in the UKG market. UKG launched monthly live market briefings to inform economists, policy makers, financial institutions, customers, prospects, HCM analysts and other interested parties about the company’s properties. UKG Workforce Activity Report data and provide information about the economy to guide employment decisions and strategies.
“I couldn’t be more proud or excited to lead this amazing company and the dedicated group of U Krewers who continue to exceed expectations quarter after quarter, year after year,” said Todd. who became CEO of UKG on 1 July. “As UKG continues to grow and prosper, we are more committed than ever to empowering and inspiring the workforce around the world through the use of innovative technology that enables people to be the best version of themselves both inside and outside of work.”
At UKG, our purpose is people. As strong believers in the power of culture and belonging as the secret to success, we champion great workplaces and build lifelong partnerships with our clients to show what’s possible when businesses invest in his people Born out of a landmark merger that created one of the world’s leading cloud HCM companies, our Life-work Technology approach to HR, payroll and workforce management solutions for all people helps more than 70,000 organizations around the world and in all sectors to anticipate and adapt to their employees’ needs beyond work. For more information, visit ukg.com.
Footnote 1: All financial information in this press release is presented using non-GAAP financial measures and amounts are approximate. UKG believes that measures of non-GAAP financial results provide useful information about certain financial and business trends related to UKG’s results of operations. Non-GAAP revenue consists of GAAP revenue excluding the effect of the reduction in deferred revenue associated with purchase accounting for certain mergers and acquisitions. EBITDA consists of EBITDA as defined in the Company’s credit agreement, which excludes items such as: (1) stock-based compensation expense for stock options and stock awards pursuant to ASC 718 and compensation expenses related to ordinary dividends; (2) depreciation of property, plant and equipment; (3) amortization of intangible assets; (4) acquisition-related deferred revenue and severance and prepaid commission expenses, including advisory, legal, accounting, acquired employee-related and integration costs; and (5) unusual costs or one-time expenses. For the purposes of calculating growth rates, previous years have been restated for acquisitions and disposals.
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