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Free Research Report as The Ultimate Software’s Quarterly Revenues Jumped 19.42% and Earnings Increased 21.98%

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LONDON, UK / ACCESSWIRE / March 01, 2018 / Active-Investors.com has just released a free earnings report on The Ultimate Software Group, Inc. (NASDAQ: ULTI) ("Ultimate Software"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ULTI. The Company reported its financial results on February 06, 2018, for the fourth quarter and for the full fiscal year ended December 31, 2017. The American technology Company reported record results for total revenues and recurring revenues for Q4 FY17 and FY17. Register today and get access to over 1000 Free Research Reports by joining our site below:


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Earnings Highlights and Summary

For the fourth quarter of the fiscal year 2017, Ultimate Software's total revenues reached $251.43 million, up 19.42% from $210.55 million in Q4 FY16; and exceeding analysts' consensus estimates of $244.7 million. The Company's recurring revenues from its cloud offering increased 21.69% to $214.11 million, or 85.16% of total revenues, for Q4 FY17 compared to the previous year's same quarter. Ultimate Software's annualized retention rate for its recurring revenue cloud customer base was approximately 96% on a rolling 12-month basis as on December 31, 2017.

During Q4 FY17, Ultimate Software's cost of revenues was $91.05 million, up 14.69% from $79.39 million in Q4 FY16. The Company had a gross profit of $160.38 million in Q4 FY17 compared to $131.16 million in Q4 FY16, reflecting an increment of 22.28%.

Ultimate Software's operating expenses hiked 21.09% to $140.34 million for the reported quarter from $115.90 million in the comparable period of last year. The Company's operating income jumped 31.33% to $20.04 million in Q4 FY17 compared to $15.26 million in Q4 FY16.

Ultimate Software incurred a net loss of $2.06 million in Q4 FY17, a decrease of 116.66% from the net profit of $12.35 million in Q4 FY16. For the quarter under review, the Company's diluted net loss per share was $0.07 compared to diluted net earnings per share of $0.41 in the year ago corresponding quarter, reflecting a decrease of 117.07%. The reported quarter results included a non-cash stock-based compensation expense; a non-cash amortization cost of acquired intangible assets; and a charge of $8.8 million related to the change in valuation of its net deferred tax assets due to the federal Tax Cuts and Jobs Act 2017 (TCJA). The Company's adjusted earnings per share (EPS), excluding non-recurring and non-core items, were $1.11 in Q4 FY17, 21.98% higher than $0.91 in Q4 FY16; and surpassing analysts' consensus estimates of $0.87.

For the year ended December 31, 2017, Ultimate Software's total revenues were $940.73 million, an increase of 20.41% from $781.29 million in FY16. In the year under review, the Company reported recurring revenues of $802.3 million, an increase of 22.64% y-o-y. The Company's gross profit was $587.03 million for FY17, an increase of 22% from $481.18 million in FY16. Ultimate Software's operating expenses hiked 23.43% to $542.48 million y-o-y, while its operating profit increased 6.87% to $44.55 million y-o-y in FY17. The Company's net income was $14.06 million for the reported year, 51.93% lower than $29.24 million in the previous year. The Company's diluted EPS also fell 52.08% to $0.46 in FY17 from $0.96 in FY16; while its adjusted EPS, excluding non-recurring and non-core items, were $3.84 for FY17, up 21.52% from $3.16 in FY16.

Cash Matters

Ultimate Software had cash and cash equivalents of $155.69 million as on December 31, 2017, an increase of 111.03% from $73.77 million as on December 31, 2016.

For the twelve months ended December 31, 2017, Ultimate Software's net cash flow from operating activities was $213.99 million, an increase of 34.14% from $159.52 million for the twelve months ended December 31, 2016. The Company's free cash flow was $136.4 million as on December 31, 2017, compared to $90.1 million as on December 31, 2016.

During FY17, Ultimate Software spent $68.03 million to acquire 342,652 shares of its common stock to settle employees' tax withholding obligations related to their restricted stock that vested during the period. The Company now has 1,342,005 shares available for repurchase under its Stock Repurchase Plan. The Company issued common stock worth $6.57 million in FY17 compared to $4.66 million in FY16, reflecting an increase of 40.91%.


For the first quarter of the fiscal year 2018, Ultimate Software expects revenues to be in the range of $269 million to $272 million, with recurring revenues of approximately $229 million to $231 million. The Company projects an operating margin of 18% on a non-GAAP basis for Q1 FY18.

For the full fiscal year 2018, Ultimate Software expects revenues to increase more than 18% from FY17. For recurring revenues, the Company expects a y-o-y increase of over 20%. The Company projects an operating margin of more than 21% on a non-GAAP basis for FY18.

Stock Performance Snapshot

February 28, 2018 - At Wednesday's closing bell, The Ultimate Software Group's stock marginally fell 0.31%, ending the trading session at $238.46.

Volume traded for the day: 234.89 thousand shares.

Stock performance in the last month – up 3.65%; previous three-month period – up 21.71%; past twelve-month period – up 23.31%; and year-to-date – up 9.27%

After yesterday's close, The Ultimate Software Group's market cap was at $7.04 billion.

Price to Earnings (P/E) ratio was at 316.26.

The stock is part of the Technology sector, categorized under the Internet Software & Services industry.


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