Ultimate Software (ULTI) announced their quarterly earnings results for 1Q – 2018 on May 1, 2018. Total Revenues of $276.8 million were up 21% and Recurring Revenues of $236.6 million were up 25% compared to 1Q -2017 a year ago. Excellent job on the recurring revenue metric.
Ultimate Software hit their $1 billion annual revenue goal this year and their next goal is to achieve $2 billion in annual revenues by 2022. Quite an achievement for a company that had $228 million in annual revenues back in 2010.
The Ultimate client retention rate, which is annualized on a rolling 12-month calculation, was 96% for recurring cloud revenue customers. Another important metric that Ultimate has maintained over time.
Ultimate Software has grown to more than 4,300 employees, 38 million people records in the cloud, and has achieved a market value of $8 billion.
The company has had one of the longest-tenured executive teams in the business and ULTI has benefited from that over the years. An important change to the executive team was mentioned during their earnings call. Mitchell Dauerman, CFO for 22 years, will be passing the baton to Felicia Alvaro, who has been promoted to CFO and Treasurer. She has been with Ultimate for 20 years. Mr. Dauerman will remain with Ultimate in Investor Relations.
Bottom line, Ultimate Software had a great quarter, is continuing to grow the company, and a management change at CFO should be viewed as positive.
If you want to know more, check out Ultimate Software’s press release for their Q1 2018 earnings.