Ultimate Reports Q1 2017 Financial Results

April 27, 2017


Ultimate Reports Q1 2017 Financial Results

• Record Recurring Revenues of $190.0 million, Up by 24%

• Record Total Revenues of $228.5 million, Up by 22%

Weston, FL, April 25, 2017Ultimate Software, a leading provider of human capital management (HCM) solutions in the cloud, announced today its financial results for the first quarter ended March 31, 2017. Ultimate reported recurring revenues of $190.0 million, a 24% increase, and total revenues of $228.5 million, a 22% increase, both compared with 2016’s first quarter. GAAP net income for the first quarter of 2017 was $7.3 million, or $0.24 per diluted share, as compared with GAAP net income of $6.6 million, or $0.22 per diluted share, for the first quarter of 2016.

Non-GAAP net income for the first quarter of 2017, which excludes stock-based compensation expense and amortization of acquired intangibles, was $23.0 million, or $0.75 per diluted share. Non-GAAP net income for the first quarter of 2016 was $21.9 million, or $0.73 per diluted share. See “Use of Non-GAAP Financial Information” below.


“At Ultimate, we continue to focus on innovations that contribute to our customers’ business success. We were the first HCM provider to deliver a multi-tenant, subscription service over the Internet in 2002, a model that later became known as cloud delivery. Since that time, we have led our industry with many other innovations, and in the first quarter this year, we unveiled our new artificial intelligence platform, Xander, at Connections, our annual customer and partner conference. Named in honor of Alexander Graham Bell, Xander offers our customers ground-breaking opportunities for understanding their employees better by interpreting the emotions behind survey responses in addition to extracting meaningful statistics. More than 3,000 HR and business professionals attended Connections, where we showcased two other new product solutions, shared our product roadmap, and led more than 70 breakout sessions,” said Scott Scherr, founder, president, and CEO of Ultimate.


“Ultimate’s innovative approach to HCM was further validated in February by independent research firm HfS Research in its 2017 Blueprint Market Guide, where they rated Ultimate as the top vendor for predictive people analytics in the HCM space. Also in February, Ultimate won three Stevie awards for Customer Service, including the People’s Choice Award for Favorite Customer Service. In March, Ultimate was honored to be ranked #7 on Fortune magazine’s 2017 list of 100 Best Companies to Work For, making this our sixth consecutive year in the top 25, and was also ranked #2 on People magazine’s inaugural list of 50 Companies That Care. We have built our business around the concept of putting people first, and this principle will continue to remain at the forefront of all that we do,” added Scherr.


“We executed on our top-level financial objectives as planned in the first quarter this year, with recurring revenues on the plus side of our expectations at $190 million, total revenues at $228.5 million, and our non-GAAP operating margin at 16.5%, putting us in good position to achieve our future goals. At the same time, our year-over-year customer retention rate was approximately 96%.”


Ultimate’s financial results teleconference was held on April 25, 2017, at 5:00 p.m. Eastern time, at www.investorcalendar.com/event/175490. 


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 knowledge of best practices continues to expand and our experience is vast and unsurpassed. We have expertise around all major HCM systems including Benefitfocus, WorkForce Software, Ultimate Software, Oracle, Taleo, SAP, SuccessFactors, Saba, IBM Kenexa, 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.