• Record 2016 Recurring Revenues of $654.2 million, Up by 27%
• Record 2016 Total Revenues of $781.3 million, Up by 26%
• Record Q4 Recurring Revenues of $175.9 million, Up by 25%
• Record Q4 Total Revenues of $210.5 million, Up by 23%
Weston, FL, February 7, 2017 — Ultimate Software (Nasdaq: ULTI), a leading provider of human capital management (HCM) solutions in the cloud, announced today its financial results for the fourth quarter and year ended December 31, 2016. For the quarter ended December 31, 2016, Ultimate reported recurring revenues of $175.9 million, a 25% increase, and total revenues of $210.5 million, a 23% increase, both compared with 2015’s fourth quarter. GAAP net income for the fourth quarter of 2016 was $12.8 million, or $0.42 per diluted share, as compared with GAAP net income of $9.0 million, or $0.30 per diluted share, for the fourth quarter of 2015.
Non-GAAP net income for the fourth quarter of 2016, which excludes stock-based compensation expense and amortization of acquired intangibles, was $27.8 million, or $0.91 per diluted share. Non-GAAP net income for the fourth quarter of 2015, which excludes stock-based compensation expense and amortization of acquired intangibles, was $24.7 million, or $0.83 per diluted share. See “Use of Non-GAAP Financial Information” below.
For 2016, recurring revenues increased 27% to $654.2 million, and total revenues increased 26% to $781.3 million, both as compared with the prior year. For 2016, GAAP net income was $30.3 million, or $0.99 per diluted share, compared with GAAP net income of $22.7 million, or $0.76 per diluted share, for 2015. For 2016, non-GAAP net income, which excludes stock-based compensation expense, amortization of acquired intangible assets and transaction costs related to business combinations, was $96.2 million, or $3.16 per diluted share. For 2015, non-GAAP net income, which excludes stock-based compensation expense and amortization of acquired intangible assets, was $78.8 million or $2.65 per diluted share.
“Our sales team closed 2016 in the fourth quarter with their strongest quarter performance in our history. With both our 2016 total and recurring revenues also coming in on the positive side of our plan, total revenues at $781 million and recurring revenues at $654 million, we are well positioned to achieve our 2017 objectives and our 2018 goals as well. We grew the number of people records in our cloud to approximately 33 million in 2016, and we maintained a year-over-year customer retention rate of approximately 97%,” said Scott Scherr, founder, president, and CEO.
“To accommodate our growth, we hired more than 1,000 new people in 2016 while achieving an overall employee retention rate of greater than 94%. At the same time, our services team brought more new customers live on UltiPro than ever before in a single year, and our development team continued to enhance our UltiPro product suite, focusing specifically on trendsetting business analytics for human resources leaders and enhanced mobile capabilities. In addition, we acquired Kanjoya, an award-winning cloud workforce intelligence provider, and Vestrics, another award-winning provider with a leading HR-focused predictive analytics platform.
“We were honored in January this year to be named #1 on Fortune’s 2017 list of Best Large Workplaces in Technology, our second consecutive year to top this list. We thank our people for making it so. Our collective belief in the power of trust and putting people first is the driving force that makes our products and services the best in our industry,” added Scherr.
Ultimate’s financial results teleconference was held on February 7, 2017, at 5:00 p.m. Eastern time, at www.investorcalendar.com/IC/CEPage.asp?ID=175489. The call will be available for replay. Windows Media Player software is required to listen to the call and can be downloaded from the site. Forward-looking information about future company performance will be discussed during the teleconference call.
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.
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