Ultimate Software Group Inc. (ULTI, Financial) filed Quarterly Report for the period ended 2012-06-30.
The Ultimate Software Group, Inc. has a market cap of $2.46 billion; its shares were traded at around $93.59 with a P/E ratio of 385 and P/S ratio of 9.1. The Ultimate Software Group, Inc. had an annual average earning growth of 23.6% over the past 5 years.
Total revenues increased 23.3% to $79.2 million for the three months ended June 30, 2012 from $64.2 million for the three months ended June 30, 2011, and 22.3% to $157.5 million for the six months ended June 30, 2012 from $128.7 million for the six months ended June 30, 2011.
Services revenues increased 19.1% to $14.0 million for the three months ended June 30, 2012 from $11.8 million for the three months ended June 30, 2011, and 21.7% to $31.0 million for the six months ended June 30, 2012 from $25.5 million for the six months ended June 30, 2011. The increases in services revenues for the three and six month periods were primarily due to additional implementation consulting revenues which were attributable to a combination of more billable consultants and the increased utilization of seasoned consultants. In addition, there was a continued shift toward more implementation consulting revenues from fixed fee arrangements and less implementation consulting revenues from time and materials arrangements, principally as a result of the Partners for Life program. The Partners for Life program changed the method by which we charge customers for our services that are delivered primarily over the period leading up to the point the customer goes Live (the “Time to Live Period”). As new sales are generated, we now charge a fixed fee for services based on the number of the customer s employees, as compared to our former billing method for new sales, which included charging customers on a time and materials basis as these services were provided. The Partners for Life program was designed to lower the total cost of services charged to each customer primarily over the Time to Live Period for UltiPro and/or Optional Features.
Total cost of revenues increased 23.2% to $34.2 million for the three months ended June 30, 2012, from $27.7 million for the three months ended June 30, 2011. Total cost of revenues increased 23.6% to $69.9 million for the six months ended June 30, 2012, from $56.5 million for the six months ended June 30, 2011.
Net cash provided by operating activities was $22.7 million for the six months ended June 30, 2012, as compared with $15.2 million for the six months ended June 30, 2011. This $7.5 million increase was primarily due to an increase in cash operating results of $3.6 million, an increase in accrued expenses of $0.9 million associated with expenses that will be primarily paid after December 31, 2012, a decrease in prepaid expenses and other current assets of $2.6 million principally related to the amortization of prepaid expenses, a decrease in accounts receivable, net of the change to deferred revenue, of $0.7 million (mainly due to increased collections), partially offset by lower vendor payments of $0.3 million.
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The Ultimate Software Group, Inc. has a market cap of $2.46 billion; its shares were traded at around $93.59 with a P/E ratio of 385 and P/S ratio of 9.1. The Ultimate Software Group, Inc. had an annual average earning growth of 23.6% over the past 5 years.
Highlight of Business Operations:
The key drivers of our business are (i) growth in recurring revenues; (ii) operating income, excluding primarily non-cash stock-based compensation ("Non-GAAP Operating Income"); and (iii) retention of our customers once our solutions are sold (“Customer Retention”). For the three months ended June 30, 2012, our (i) recurring revenues grew by 24%, compared with the same period in 2011and (ii) Non-GAAP Operating Income was $10.3 million, or 13.0% of total revenues, as compared with $6.6 million, or 10.3% of total revenues, for the same period last year. For the six months ended June 30, 2012, our (i) recurring revenues grew by 23%, compared with the same period in 2011, and (ii) Non-GAAP Operating Income was $16.7 million, or 10.6% of total revenues, as compared with $11.5 million, or 8.9% of total revenues, for the same period last year. As of June 30, 2012, our Customer Retention exceeded 96%, on a trailing twelve-month basis. See “Non-GAAP Financial Measures” below.Total revenues increased 23.3% to $79.2 million for the three months ended June 30, 2012 from $64.2 million for the three months ended June 30, 2011, and 22.3% to $157.5 million for the six months ended June 30, 2012 from $128.7 million for the six months ended June 30, 2011.
Services revenues increased 19.1% to $14.0 million for the three months ended June 30, 2012 from $11.8 million for the three months ended June 30, 2011, and 21.7% to $31.0 million for the six months ended June 30, 2012 from $25.5 million for the six months ended June 30, 2011. The increases in services revenues for the three and six month periods were primarily due to additional implementation consulting revenues which were attributable to a combination of more billable consultants and the increased utilization of seasoned consultants. In addition, there was a continued shift toward more implementation consulting revenues from fixed fee arrangements and less implementation consulting revenues from time and materials arrangements, principally as a result of the Partners for Life program. The Partners for Life program changed the method by which we charge customers for our services that are delivered primarily over the period leading up to the point the customer goes Live (the “Time to Live Period”). As new sales are generated, we now charge a fixed fee for services based on the number of the customer s employees, as compared to our former billing method for new sales, which included charging customers on a time and materials basis as these services were provided. The Partners for Life program was designed to lower the total cost of services charged to each customer primarily over the Time to Live Period for UltiPro and/or Optional Features.
Total cost of revenues increased 23.2% to $34.2 million for the three months ended June 30, 2012, from $27.7 million for the three months ended June 30, 2011. Total cost of revenues increased 23.6% to $69.9 million for the six months ended June 30, 2012, from $56.5 million for the six months ended June 30, 2011.
Net cash provided by operating activities was $22.7 million for the six months ended June 30, 2012, as compared with $15.2 million for the six months ended June 30, 2011. This $7.5 million increase was primarily due to an increase in cash operating results of $3.6 million, an increase in accrued expenses of $0.9 million associated with expenses that will be primarily paid after December 31, 2012, a decrease in prepaid expenses and other current assets of $2.6 million principally related to the amortization of prepaid expenses, a decrease in accounts receivable, net of the change to deferred revenue, of $0.7 million (mainly due to increased collections), partially offset by lower vendor payments of $0.3 million.
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