From Baron Funds' second quarter letter:
The shares of The Ultimate Software Group, Inc. (ULTI, Financial), a leading provider of cloud based payroll and human resources services, rose 21.4% in the quarter. The company reported recurring revenue growth of 22%. We believe the company is positioned to continue to add new accounts, especially now that customers are more accepting of the SaaS ("software as a service") business model.We believe the company is on a path to doing $1 billion in revenues and $250 million in cash flow in five years, and, if so, and appropriately valued, we think the stock could triple from here.
The shares of The Ultimate Software Group, Inc. (ULTI, Financial), a leading provider of cloud based payroll and human resources services, rose 21.4% in the quarter. The company reported recurring revenue growth of 22%. We believe the company is positioned to continue to add new accounts, especially now that customers are more accepting of the SaaS ("software as a service") business model.We believe the company is on a path to doing $1 billion in revenues and $250 million in cash flow in five years, and, if so, and appropriately valued, we think the stock could triple from here.
