• Record 2018 Recurring Revenues of $997.1 million, Up by 24%
• Record 2018 Total Revenues of $1.14 billion, Up by 21%
• Record Q4 Recurring Revenues of $266.4 million, Up by 24%
• Record Q4 Total Revenues of $304.8 million, Up by 21%

WESTON, Fla.--(BUSINESS WIRE)-- Ultimate Software (Nasdaq: ULTI), a leading provider of human capital management (HCM) solutions in the cloud, announced today our financial results for the year ended and fourth quarter ended December 31, 2018. For the year ended December 31, 2018, Ultimate reported recurring revenues of $997.1 million, a 24% increase, and total revenues of $1.14 billion, a 21% increase, both compared with 2017. Our GAAP net income for the full year of 2018 was $65.1 million, or $2.06 per diluted share, as compared with GAAP net income of $14.1 million, or $0.46 per diluted share, for 2017. Net income for the full year of 2017 was $22.9 million, or $0.74 per diluted share, excluding the impact due to the enactment of the federal Tax Cuts and Jobs Act (the “Tax Act”) of $8.8 million.

Non-GAAP net income for 2018 was $186.2 million, or $5.90 per diluted share, as compared with non-GAAP net income for 2017 of $118.1 million, or $3.84 per diluted share.

For the quarter ended December 31, 2018, Ultimate reported recurring revenues of $266.4 million, a 24% increase, and total revenues of $304.8 million, a 21% increase, both compared with 2017’s fourth quarter. Our GAAP net income for the fourth quarter of 2018 was $13.4 million, or $0.42 per diluted share, as compared with GAAP net loss of $(2.1) million, or $(0.07) per share, for the fourth quarter of 2017. GAAP net income for the fourth quarter of 2017 was $6.7 million, or $0.22 per diluted share, excluding the impact of the Tax Act of $8.8 million.

Non-GAAP net income for the fourth quarter of 2018 was $62.4 million, or $1.95 per diluted share, as compared with non-GAAP net income for 2017’s fourth quarter of $34.2 million, or $1.11 per diluted share. For further discussion of our non-GAAP financial measures, see “Use of Non-GAAP Financial Information” below.

“In 2018, we achieved our Fifth Championship, delivering more than $1 billion in total annual revenues, and we are now focused on our Sixth Championship of $2 billion in 2021. Our customer base has grown to more than 5,600 organizations, and the number of people records in our Ultimate cloud has expanded to more than 48 million. Our customer retention rate remained consistent at approximately 96% on a year-over-year basis in 2018,” said Scott Scherr, founder, president, and CEO.

“Last month, Fortune and its partner, Great Place to Work, honored Ultimate by ranking us #1 on their list of 50 Best Workplaces in Technology, in the ‘Large Companies’ category. This marks our fourth consecutive year to top this list, and again we thank our people for making this recognition possible. They make our exceptional culture of trust, inclusion, caring, and innovating a day-to-day reality,” added Scherr.

Business Highlights

All events or awards listed below took place in 2018, unless otherwise noted:

• Ultimate executed on our global strategy by acquiring PeopleDoc—a pioneer in cloud-based HR service delivery with offices in England, France, Germany, and the United States. The addition of the PeopleDoc HR service delivery platform furthers our mission to enhance our customers’ employee experience by offering new, person-centric features, such as an online employee-help center, HR case management, and employee file management.
• Gartner named Ultimate a “Leader” in its 2018 Magic Quadrant for HCM Suites for both Midmarket and Larger Enterprises based on its criteria for ability to execute and completeness of vision.
• Nucleus Research recognized Ultimate as a “Leader” in its HCM Value Matrix, for the fourth consecutive year, and awarded Ultimate the top rating for product functionality.
• Human Resource Executive magazine identified our AI platform, Xander, as one of the Top HR Products of 2018.
• Customer Sales and Service World Awards named our services team the #1 Customer Service Department of the Year for organizations with 2,500 employees or more, across diverse industries.
• For culture, Fortune magazine ranked Ultimate #3 on its highly respected 100 Best Companies to Work For list.
• And also for culture, Ultimate was ranked #4 on Fortune and Great Place to Work’s Best Workplaces for Parents and #5 on their Best Workplaces

   

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