UKG, a leading provider of HR, payroll, and workforce management solutions for all people, today announced a business update for the fourth quarter and fiscal 2023, ending September 30, 2023.
“We began the year with our first-ever $1 billion revenue quarter and closed out Q4 in remarkable fashion, including signing the most multimillion-dollar SaaS deals in our history,” said Chris Todd, CEO at UKG. “Overall, it was a big year for customers reinvesting in their UKG solutions, and ARR bookings continued to grow at a strong rate over the last 12 months. We also had a record-breaking quarter for our UKG InTouch timeclocks, which customers use to connect to our modern cloud solutions and make life easier for their frontline workers. As a business, we’ve made exceptional strides in profitability, and our focused investments in key areas, such as the SMB market, are generating significant growth. Thanks to the investments we’ve made in our products, our people, and our customers, fiscal 2024 will without a doubt be the best one yet.”
“UKG’s continued focus on employee experience and the frontline worker is vital,” said Josh Bersin, global industry analyst and CEO at JBC. “As UKG focuses its AI and design efforts toward the entire workforce, organizations will see dramatic improvements in engagement, performance, and productivity across all employee groups.”
Fourth-Quarter and Fiscal 2023 Business Highlights
The company just concluded its largest-ever UKG Aspire customer conference, where more than 5,000 attendees saw several product innovations, programs, and enhancements debuted in fiscal 2023, including:
- Generative AI (GenAI)-powered conversational experiences in UKG Pro and UKG Ready;
- An expanded GenAI partnership with Google Cloud that will apply large language models (LLMs) through Vertex AI that are supercharged with Great Place To Work® data to improve the employee experience and give people managers insight into how business decisions impact employee engagement;
- The highly anticipated launch of the UKG Great Place To Work Hub, which was showcased at Aspire last week, as an industry-first solution to help leaders unlock the true drivers of engagement and performance at their organizations and make more informed decisions about DEI&B across their teams;
- UKG FleX, a modern technology platform to help organizations evolve alongside the needs of their people, which has accelerated innovation from all corners of the HCM industry through programs like:
- UKG Developer Hub, a dedicated portal that organizations can use to extend the capabilities of their UKG solution, deploy real-time data exchanges between UKG and third-party applications, and build their own applications and workflows;
- Growing relationships across the broader technology ecosystem to help employees complete actions in their UKG solution via apps they regularly use throughout their day, including an expanded collaboration with Microsoft;
- UKG Labs, a startup ecosystem and virtual laboratory of early-stage companies from around the world, with products and ideas poised to help transform the HCM landscape; and
- The creation of a UKG Diversity Accelerator Program to connect support and resources to diverse-owned and diversity-focused companies within the technology ecosystem, as well as a culture-focused partner ecosystem that will help businesses create truly great workplace experiences.
Complementing the speed of its own in-house innovation, UKG also closed two major acquisitions in fiscal 2023 as part of its mission to deliver technology built for all. Immediately following its acquisition of Immedis in July, UKG saw early customer successes with UKG One View, a multi-country payroll experience that modernizes the traditionally fragmented, costly, and cumbersome global payroll model. Additionally, its acquisition of Quorbit led to the debut of UKG Strategic Workforce Planning, a long-term forecasting and capacity-planning technology that helps organizations predict demand and staffing needs with people-centric and behavior-focused AI.
These innovations and acquisitions were a key component of UKG again being named a Leader in the Gartner Magic Quadrant for Cloud HCM Suites for 1,000+ Employee Enterprises, making UKG the only HCM vendor named a Leader by all major analyst firms and peer-review sites. Additional analyst and peer-review accolades during the fiscal year included:
- Forrester Research naming UKG a Leader in The Forrester Wave™: Human Capital Management Q2 2023 report;
- UKG Pro earning the highest overall score in the 2023 Gartner Critical Capabilities for Cloud HCM Suites for 1,000+ Employee Enterprises report for North American Midmarket Use Case;
- NelsonHall positioning UKG Pro as the Overall Leader in the New World Workforce Management 2022 NEAT vendor evaluation;
- Nucleus Research ranking UKG Top Overall in HCM for the second consecutive year in the HCM Technology Value Matrix 2023;
- Fosway Group, Europe’s top HR analyst group, recognizing UKG Ready as a Core Leader in its 9-Grid™ for Cloud HR; and
- UKG Pro and UKG Ready receiving dozens of top rankings from peer-review sites, including G2, SoftwareReviews, and TrustRadius, as a direct result of customer feedback and reviews, including UKG Pro landing at #1 for HCM Enterprise in SoftwareReviews’ Data Quadrant and #1 in Best Feature Set for HR Management Software by TrustRadius.
The UKG customer base continues to grow exponentially, topping 80,000 worldwide in 2023. Organizations of all sizes and across industries shared their stories about ROI, operational success, and how their UKG partnership propelled strategic employee-experience initiatives, meaningful people outcomes, and operational excellence, including InfoSync, Belle Tire, Boba Tea Company, and Yoga Joint. New and longtime customers selecting UKG solutions in the fourth quarter included:
- A globally recognized leader in the beverage and snack industry with a diverse portfolio of popular food and beverage brands, with almost 300,000 employees globally;
- One of the world’s largest car-rental providers, with more than 10,000 rental locations across the globe;
- A leader in the global hospitality industry that operates hotels, resorts, and vacation properties in more than 90 countries;
- A worldwide leader in the production of tools and equipment known for innovative solutions in construction, DIY, and industrial sectors, with 60,000 employees in 60 countries;
- An insurance provider in the technology sector offering protection, repair, installation, and support in more than 700 U.S. locations;
- One of the world’s largest brand-name apparel companies and a global leader in denim products;
- The largest provider of health services in Nova Scotia, employing more than 24,000 people in hospitals, health centers, and community-based programs across the province;
- A popular retail brand in Australia, with hundreds of employees across 40 stores nationally, and a dedicated online presence;
- A healthcare company with nearly 70,000 employees worldwide that delivers innovative health solutions through its prescription medicines, vaccines, biologic therapies, and animal-health products;
- A global manufacturing company with more than 250,000 employees across 100 locations in 30 countries working with 300 of the biggest brands in the world of healthcare, packaging, smartphones, cloud equipment, automotive, and home appliances; and
- One of the world’s leading suppliers of engineered-to-order hi-tech equipment in the areas of refinery, oil and gas, fertilizer, and petrochemicals, with more than 50,000 employees.
Growing its own employee base worldwide, UKG held a grand opening of a new Innovation Hub in Montevideo, Uruguay, housing a growing group of 100 engineers focused on the development and delivery of UKG solutions. Additionally, UKG received numerous third-party honors and awards throughout the year for its own people practices and innovative culture, including:
- Forbes ranking UKG #40 overall and #6 in its category of the World’s Best Employers, being named by Newsweek as one of America’s Greatest Workplaces with a perfect five-star rating, and Computerworld selecting UKG as the #5 Best Place to Work in IT;
- Forbes also naming UKG one of America’s Best Employers for Diversity in the same year the company earned 100% for the third consecutive year on the Disability Equality Index; and
- Another five-star rating by Newsweek on the America’s Greatest Workplaces for Women list, followed by Forbes naming UKG one of America’s Best Employers for Women and UKG being named a Leader by AnitaB.org as a Top Company for Women Technologists for the fourth consecutive year.
In a year where the UKG Global Impact Report established a set of near- and long-term goals for environmental, social, and governance (ESG), UKG was again honored by TrustRadius with the 2023 Tech Cares award, recognized for going above and beyond in its ESG efforts and for its commitment to supporting employees and communities. Additionally, UKG improved its EcoVadis sustainability rating to Silver status, which puts the company in the top 17% of all organizations rated by the international agency.
UKG was also honored by Brandon Hall Group honoring UKG with a Gold Award in the “Best Advance in Social Impact Innovation” and earned a spot on the Fast Company Brands That Matter list for the UKG Close the Gap campaign and partnership with the National Women’s Soccer League, which included bringing the first-ever $1.1 million dollar prize pool to U.S. women’s professional soccer.
“I’m proud of the work we’ve put in this year to balance the needs of our customers, our people, and our shareholders,” continued Todd. “We have a special opportunity to be the only HCM provider focused exclusively on people and show the world that it’s good business to be a great place to work.”
At UKG, our purpose is people. We are on a mission to inspire every organization to become a great place to work through HCM technology built for all. More than 80,000 customers worldwide trust UKG HR, payroll, and workforce management cloud solutions to drive great workplace experiences and make better, more confident people and business decisions. With the world’s largest collection of people, workforce, and culture data combined with rich experience using AI in the service of people, we connect culture insights with business outcomes to show what’s possible when organizations invest in their people. Learn more at ukg.com.
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