- Record Recurring Revenues of $152.8 Million, Up by 28%
- Record Total Revenues of $187.2 Million, Up by 29%
“Once again, achieving all of our goals as planned in the first quarter has put us in a strong position to execute on our future objectives.Recurring revenues were nearly $153 million, up by more than 28%, and total revenues were $187 million, up by 29%, both compared with Q1 2015. At the same time, our non-GAAP operating margin came in on the positive side of our targeted 19%, and our year-over-year customer retention rate again exceeded 97%,” said Scott Scherr, founder, president, and CEO of Ultimate.
“In early March, we were honored to be ranked #15 on Fortune’s 2016 100 Best Companies to Work For list, marking our fifth consecutive year in the top 25. Ultimate’s identity and strategic approach as a company have been focused on culture and putting ‘People First’ since the company’s beginning, and will continue to drive our strategic direction. Also in March, more than 2,000 HR and business professionals attended our annual Connections customer conference in Las Vegas, where we featured more than 60 breakout sessions and workshops aimed at ‘Inspiring Engagement’ in employees.”
- Recurring revenues from our cloud offering grew by 28% for the first quarter of 2016 as compared with the same period in 2015. Recurring revenues were 82% of total revenues for the first quarter of 2016 and for the first quarter of 2015
- Ultimate’s total revenues for the first quarter of 2016 increased by 29%, as compared with those for the first quarter of 2015.
- Ultimate’s annualized retention rate, on a rolling 12-month basis, exceeded 97% for its recurring revenue cloud customer base as of March 31, 2016, which compares with greater than 96% for the same period of the prior year.
Cash flows from operating activities for the first quarter of 2016 were $32.1 million, compared with $26.1 million for thefirst quarter of 2015.
The combination of cash, cash equivalents, and corporate marketable securities was $103.8 million as of March 31, 2016, compared with $129.4 million as of December 31, 2015.
During the three months ended March 31, 2016, we used $29.7 million to acquire 190,400 shares of our Common Stock under our previously announced stock repurchase plan (the “Stock Repurchase Plan”), and we used $17.9 million to acquire 114,253 shares of our outstanding $0.01 par value common stock (“Common Stock”) to settle employees’ tax withholding obligations associated with their restricted stock that vested during the period.
On April 25, 2016, Ultimate’s Board of Directors extended our Stock Repurchase Plan further by authorizing the repurchase of up to 1,000,000 additional shares of our Common Stock. We have 1,342,005 shares available for repurchase under our Stock Repurchase Plan.
Ultimate provides the following financial guidance for the second quarter ending June 30, 2016, and full year 2016:
For the second quarter of 2016:
• Recurring revenues of approximately $158 million,
• Total revenues of approximately $187 million, and
• Operating margin, on a non-GAAP basis (discussed below), of approximately 20%.
For the year 2016:
• Recurring revenues to increase by approximately 26% over 2015,
• Total revenues to increase by approximately 26% over 2015, and
• Operating margin, on a non-GAAP basis (discussed below), of approximately 21%.
Operating margin expectations were determined on a non-GAAP basis using the methodologies identified under the caption “Use of Non-GAAP Financial Information” in this press release.
To learn more about HRchitect and how we can help your organization and your Human Capital Management (HCM) technology needs, please request a consultation. As the leader in HCM Systems strategic consulting, we offer end-to-end HR technology consulting services focused around strategic planning, evaluation and selection, change management, implementation, project management and ongoing support of HCM systems of all types including Talent Acquisition, Talent Management, Learning Management, Workforce Management, Benefits, Core HR/Payroll, and more. Over the past two decades, working on thousands of successful engagements for clients of all sizes and industries across the globe, our experience is vast and unsurpassed. We have expertise around all major HCM systems including BenefitFocus, WorkForce Software, Ultimate Software, Oracle, Taleo, Saba, IBM Kenexa, SumTotal Systems, SAP, SuccessFactors, Lumesse, PeopleFluent, Cornerstone OnDemand, Infor, and more. HRchitect is a name you can trust for all of your organization’s HCM technology-related consulting needs.
Press releases posted on HCM Tech Vendor News are provided to HRchitect by the technology vendors and posted by HRchitect as a service to our readers.