Page 33 - CU Solutions Group Annual Shareholder Report

CUSG PERFORMANCE SOLUTIONS LLC,
2021 YEAR IN REVIEW

HR Performance Solutions ended 2021 with a revenue growth rate of 22 percent
and an EBITDA margin of 33 percent. This put the business above the ‘Rule of
40’ threshold at 55 percent, which indicates exceptional value for shareholders.
Strong new sales results, renewal growth from 2020 sales, robust retention, and
the acquisition of CU Training spurred this growth.

Solid sales are due in part to continued interest from partners across the country
eager to sell Performance Pro, Compease, and The Learning Center to their
many customers. HR Performance Solutions has developed nearly 20 strategic
relationships with professional employer organizations (PEOs), payroll software
providers, and consulting firms.

The products continued to see investments in 2021 with feature additions, UI/UX
improvements, and additions to the software development team. Recent examples
of product changes for Performance Pro include the addition of chatbots that
prompt users to set higher quality goals and leave more meaningful feedback, as
well as informal 360 assessments and surveys that can be initiated by the employee
or manager. These assessments are designed with capabilities for including
informal peer feedback and employee recognition based on the achievement
of specific tasks or goals.

For Compease and the Learning Center, product changes include more flexibility
to add variables in merit and bonus calculations - for example, business unit size
or performance relative to KPMs. The user interface was enhanced with a simple,
clean, modern look and feel, and all proprietary courses were updated using a
state-of-the-art outside authoring tool.

Looking ahead, HR Performance Solutions expects an exciting and successful 2022.
There are several initiatives already in the works that will be shared throughout
the year.

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