On July 31st, Ultimate Software (ULTI) released their financial results for Q2 2018. The financial results were impressive, but the most interesting news of the quarter was declared on July 17th  when Ultimate Software announced they were acquiring PeopleDoc.

Here are some ULTI financial highlights for Q2 2018:

  • Recurring revenues from cloud offerings were up 23% from Q2 2017
  • Recurring Revenues for Q2 were $239.5 million
  • Total revenues increased 21% versus Q2 2017
  • Total revenues for Q2 were $271.2 million
  • Ultimate’s client retention rate was 96% for recurring revenue customers
  • Free Cash Flow was $77 million and improved by $31 million compared to same period in 2017

Scott Scheer, Chairman, Founder, CEO & President, of Ultimate Software, said in the quarterly earnings conference call that the company is on track to achieve $1 billion in revenue for 2018.  This appears to be the case as Ultimate produced $547.9 million in revenue for the first half of the year.  The momentum and the logic are there for this outstanding milestone to be achieved by Ultimate Software this year. The next goal, as stated by the CEO, is to achieve $2 billion in revenue by 2022!

PeopleDoc acquisition:

The acquisition of PeopleDoc, a cloud-based HR Service Delivery company, is the most interesting development during the quarter. The purchase price for PeopleDoc was approximately $300 million in stock and cash. The announcement for the Paris based company illustrates at least three important things. One, Ultimate can and will do acquisitions to enhance their human capital management (HCM) services. Two, strategic acquisitions make sense. Three, expanding internationally enhances growth opportunities for the future.

Ultimate Software released the following statement as part of their press release on the acquisition:

PeopleDoc’s HR Service Delivery platform allows HR organizations to serve employees anytime, anywhere, with the ability to easily answer employee requests on demand; automate employee processes; and manage document acknowledgment, storage, and compliance across multiple global locations. With less time spent managing time-consuming administrative tasks.”  Read full Ultimate press release > 

PeopleDoc has more than 1,000 customers and users in 180 countries. As a strategic buyer of PeopleDoc, Ultimate gains some additional services, enhanced customer experience, and a nice presence in Europe with offices in Paris, London, Stuttgart, and Amsterdam. PeopleDoc also has additional offices in New York.

In the future Ultimate will begin offering PeopleDoc on multiple HCM platforms and it’s expected that Ultimate customers will be able to select the PeopleDoc HR Delivery Service products under the unified UltiPro HCM Suite by January 2019.  PeopleDoc will continue to operate as a wholly owned subsidiary of Ultimate.


The quarterly financial results from Ultimate are impressive and their goal to obtain a $1 billion in revenue this year seems realistic and achievable. Ultimate is expanding their services and presence in Europe by acquiring PeopleDoc. This looks like a great fit and integration on their unified platform for these products and services is in the works.

Congrats to Ultimate for a great quarter financially and for the acquisition of PeopleDoc!