Workhuman reports 29% rise in revenues in 2022

Irish tech company Workhuman has reported a 29 per cent increase in turnover in 2022, with operating profit for the year of $68 million (€62.23 million).

The human resources software company announced earlier this year that it was cutting 10 per cent of its 1,300 strong global workforce in response to an uncertain economic environment.

Latest results show that the company grew its workforce by 30 per cent in 2022, to average employee numbers of 1,022 from 787 a year previously.

Announcing results for 2022, Workhuman acknowledged that it had “executed some difficult decisions” relating to its business and headcount in 2023, “to ensure the business is set up for continued growth in the years ahead”.

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Founded in 1999 and formerly known as Globoforce, Workhuman operates employee reward and incentive schemes for more than six million employees on its platform.

The company saw revenues rise to $1.1 billion (€1.01 billion) in 2022, up 29 per cent on 2021 revenues of $876 million (€802 million).

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A director’s report accompanying the financial statements noted the “significant revenue increases” in 2022 were attributed to an increase in the issuance and redemption of recognition awards by the employees of existing clients, along with new client additions.

The company’s operating profit was slightly down, falling 4 per cent from $70 million (€64 million) in 2021 to $68 million (€62 million) in 2022.

The director’s report noted that an increase in operating expenses was due to increased recruitment to support business growth, as well as a higher spend on marketing.

Shareholders received a dividend of $2 per share in 2022, amounting to a total dividend payment of $49.7 million (€45.5 million), down from $94.3 million (€86.3 million) in 2021.

In a statement, Workhuman said that the “strong operational and financial performance” in 2022 “points to the sustained financial strength of the company”.

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The tech company said that its focus for 2023 and 2024 is on strategic growth, by integrating artificial intelligence (AI) into its products and enabling innovation in its social recognition platform.

“The company’s strong financial position has enabled it to realign its investments with strategic initiatives and opportunities, balancing growth and profitability and exercising prudence given current market volatility,” Workhuman said.

The company added that it does not expect the 20 per cent plus year-on-year growth that it has seen in recent years to continue.

It said it expects to build profitability “in a more measured and sustainable fashion”, as it has recently appointed a new chief financial officer Mark Schwartz.