UKG Announces Outstanding Third-Quarter Fiscal 2022 Financial Results

UKG, a leading provider of HR, payroll, and workforce management solutions for all people, today announced financial results for the third quarter of Fiscal 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 Q2, with strong bookings growth that exceeded our plan," said Chris Todd, CEO at UKG. "More than 70% of new customers selected the UKG full suite of HR, payroll, and workforce management solutions ? an all-time high. Customer migrations to our modern workforce management solution are also up 64% from the same quarter last year, with a significant number of these customers attaching our HR and payroll solutions. The demand for our products continues to be high, as organizations around the world seek a single solution to find, hire, retain, and inspire great people."

Business Highlights

• Globally, new and longtime customers placed orders for UKG human capital management (HCM), payroll, talent, workforce management, scheduling, and HR service delivery solutions, including:
  • an American multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence, with more than one million employees;
  • a French multinational corporation employing 166,000 people that manufactures and distributes materials to the construction and industrial markets;
  • an American multinational company focused on transportation, e-commerce, and services, with 550,000 employees;
  • one of India's largest multinational information technology companies that provides business consulting, IT, and outsourcing services, with operations across over 50 countries and 335,000 employees;
  • an American global hospitality and entertainment company with more than 70,000 employees;
  • a large Canadian county composed of 11 municipalities and a population of over 125,000 residents;
  • a multinational imaging and electronics company with more than 90,000 employees;
  • a satellite-television provider with more than 14,000 associates across the U.S.;
  • a world market and technology leader in steel wire transformation and coating technologies, headquartered in the Netherlands and operating in over 45 countries with more than 27,000 employees worldwide;
  • a supermarket operator with hundreds of store locations and 30,000 employees; and
  • a healthcare company with more than 60,000 employees across 30 U.S. states.
• UKG welcomed new customers, including Dana-Farber Cancer Institute, a world-renowned leader in adult and pediatric cancer treatment and research, and M Group Services, one of the largest essential infrastructure services organizations in the U.K. and Ireland, and announced successes with organizations such as Portillo's, Eventide Senior Living Communities, and 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 field of DevOps, as well as for delivering solutions that help mitigate employee burnout, especially during the COVID-19 pandemic.
• UKG collaborated with Uber to help organizations offer impactful rewards and incentives to people, in a first-of-its-kind partnership.
• UKG announced a historic, multiyear partnership with the National Women's Soccer League (NWSL), increasing the annual Challenge Cup bonus pool tenfold in 2022, with plans to more than double the bonus again in 2023 to make the 2023 UKG Challenge Cup the first-ever women's professional soccer tournament to achieve pay equity with the equivalent men's game.
• With one of the largest and most collaborative partner ecosystems focused wholly on the HCM industry, UKG welcomed new technology partners focused on hiring, retaining, and developing people into the UKG Marketplace.
• UKG launched monthly live market briefings to inform economists, policymakers, financial institutions, customers, prospects, HCM analysts, and other stakeholders on the company's proprietary UKG Workforce Activity Report data, and provide insights about the economy to guide decisions and labor strategies.

"I couldn't be prouder or more excited to lead this incredible company and the dedicated group of U Krewers who continue to outperform expectations quarter after quarter, year after year," said Todd, who became CEO of UKG on July 1. "As UKG continues to grow and thrive, we are more committed than ever to empowering and inspiring workforces worldwide through the use of innovative, life-work technology that allows people to be the best version of themselves both inside and outside of work."

About UKG

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 customers to show what's possible when businesses invest in their people. Born from a historic merger that created one of the world's leading HCM cloud companies, our Life-work Technology approach to HR, payroll, and workforce management solutions for all people helps more than 70,000 organizations around the globe and across every industry anticipate and adapt to their employees' needs beyond just work. To learn more, visit ukg.com.

Footnote 1: All financial information within this press release is presented using non-GAAP financial measures and amounts are approximate. UKG believes that non-GAAP measures of financial results provide useful information regarding certain financial and business trends relating to UKG results of operations. Non-GAAP revenue consists of GAAP revenue excluding the effect of the write-down of deferred revenue associated with purchase accounting for certain mergers and acquisitions. EBITDA consists of EBITDA per the definition under the company's credit agreement, which excludes items such as: (1) share-based compensation expense for stock options and stock awards in accordance with 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 prepaid commissions write-downs and expenses, including advisory, legal, accounting, acquired employee-related costs, and integration costs; and (5) unusual costs or one-time expenses. For purposes of calculating growth rates, prior years have been restated for acquisitions and dispositions.

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