NEW YORK (TheStreet) - Kronos Incorporated said on Wednesday the company has reached $1 billion in annual revenue, a milestone for the company after taking on Blackstone Group (BX) and Singaporean sovereign wealth fund GIC as investors earlier in 2014.
The Kronos's revenue milestone comes as the company is working to convert its customers from software licenses to a subscription model, while expanding its cloud HR offerings. "It gives us confidence in our strategy," CEO Aron Aid said of the revenue mark, in a telephone interview with TheStreet.
He also said that Kronos has seen no signs of an economic slowdown in United States and cited strong trends among the company's automotive, pharmaceutical, energy and healthcare customers. Many of those sectors are either rebounding from a sharp downturn from the Great Recession, or are in the grips of cyclical tailwinds created by new technologies or government policy.
"We actually don't notice any negative trends in the economy," Ain said. "Our retail customers seem to be doing well, our hospitality customers are doing well," he added.
Earlier in 2014, Kronos agreed to a recapitalization of the company through a $750 million equity investment by Blackstone Group and GIC. The minority equity investment by Blackstone and GIC will allow Kronos's long-time investors, PE firms Hellman & Friedman and JMI Equity, to maintain a controlling interest in the company.
Chelmsford, Mass.-based Kronos, during its time in private equity hands, has effectuated a shift in its business towards cloud-based solutions. That transformation is driving top-line growth at Kronos and strong operating margins for the company at a time when IT giants such as Oracle (ORCL), IBM (IBM) and Hewlett-Packard (HPQ) are working to boost their cloud offerings.