Ultimate Software Group, Inc. (The)NASDAQ
The Ultimate Software Or The Ultimate Short
Ultimate Software Group: The Last Man Standing In SaaS And The Most No-Brainer Short In Software
Suhail Capital • 21 Comments
Suhail Capital • 21 Comments
Tue, Nov. 1, 4:10 PM
Mon, Oct. 31, 5:35 PM
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Fri, Sep. 30, 11:49 AM
- Ultimate Software (NASDAQ:ULTI) announced that it has acquired San Francisco-based technology company Kanjoya Inc (terms not disclosed). Kanjoya founder Armen Berjikly and the entire award-winning Kanjoya team is joining Ultimate Software. Kanjoya works with leading companies, including many Fortune 100 businesses, to uncover employee, manager, and team attitudes and performance traits from employee surveys and other sources of employee feedback.
- Using the technology acquired through Kanjoya, Ultimate is launching UltiPro Perception to help companies collect, understand, and act on employee feedback. UltiPro Perception will be available as an option for Ultimate customers in January 2017.
- Ultimate expects that the acquisition will have no material impact on revenues in fiscal year 2016.
Tue, Jul. 26, 4:01 PM
Mon, Jul. 25, 5:35 PM
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Tue, Apr. 26, 4:02 PM
- Ultimate Software Group (NASDAQ:ULTI): Q1 EPS of $0.73 beats by $0.07.
- Revenue of $187.2M (+29.2% Y/Y) beats by $7.09M.
Mon, Apr. 25, 5:35 PM
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Fri, Feb. 5, 11:01 AM
- A long list of enterprise software and security tech names are off sharply after business intelligence/analytics software upstart Tableau (down 45.3%) reported slower-than-expected license revenue growth and issued below-consensus Q1/2016 guidance.
- Also possibly weighing: LinkedIn (down 39.6%), which derives a large % of its revenue from cloud-based recruiting and sales tools for enterprises, issued weak Q1/2016 guidance.
- Given the magnitude of the drops, margin calls and forced selling by funds could be playing a big role. The Nasdaq is down 2.2%.
- Tableau suggested its growth slowdown has to do with softening IT spend and a need to improve sales productivity, but analysts have raised questions about competition from the likes of Microsoft, Amazon, and Qlik. LinkedIn forecast a growth slowdown for its field sales hiring solutions business, while blaming European/Asian macro pressures. The company also noted its display ad business continues declining amid weak industry growth.
- Major enterprise software decliners include Splunk (SPLK -23.7%), Workday (WDAY -15.1%), Adobe (ADBE -7%), Zendesk (ZEN -15.2%), ServiceNow (NOW -13.6%), NetSuite (N -12.4%), Salesforce (CRM -11.2%), Paycom (PAYC -10.6%), Ellie Mae (ELLI -11.5%), Cornerstone OnDemand (CSOD -7.8%), Veeva (VEEV -7.7%), Ultimate Software (ULTI -9%), Luxoft (LXFT -7.5%), Manhattan Associates (MANH -8.5%), Box (BOX -6.6%), Guidewire (GWRE -13.6%), Demandware (DWRE -9.3%), Hortonworks (HDP -9.7%), and Tableau rival Qlik (QLIK -16.6%). The casualty list includes many cloud software firms, as well as several analytics software plays. Previously covered: New Relic, Atlassian.
- Major decliners among security tech firms: Palo Alto Networks (PANW -12%), FireEye (FEYE -8.9%), Rapid7 (RPD -8.6%), CyberArk (CYBR -8.3%), Proofpoint (PFPT -8%), Imperva (IMPV -8.3%), Fortinet (FTNT -6.9%), and Vasco (VDSI -5.1%). The selloff comes in spite of an FQ3 beat and in-line FQ4 guidance from Symantec, which has been losing share to various upstarts.
Tue, Feb. 2, 4:01 PM
- Ultimate Software Group (NASDAQ:ULTI): Q4 EPS of $0.83 beats by $0.10.
- Revenue of $170.65M (+26.0% Y/Y) beats by $1.56M.
Mon, Feb. 1, 5:35 PM
Oct. 28, 2015, 2:33 PM
- Though Ultimate Software (NASDAQ:ULTI) slightly missed Q3 revenue estimates (while beating on EPS), it's guiding for 22% 2015 revenue growth, nearly even with a 21.9% consensus. Recurring revenue (e.g. cloud subscriptions) is expected to rise 23%.
- The cloud HR/HCM software vendor has also set preliminary 2016 revenue growth guidance of 23%, above a 21.6% consensus. Recurring revenue is expected to rise 25%, and op. margin grow to 21% from an expected 2014 level of 20%.
- Recurring revenue rose 23% Y/Y in Q3 to $131.8M; services revenue rose 18% to $23.6M. GAAP operating expenses rose 36% Y/Y to $83.8M. $31.1M was spent to buy back 187K shares.
- Shares have made new highs, and are up 40% YTD.
- Q3 results, PR
Oct. 27, 2015, 4:05 PM
- Ultimate Software Group (NASDAQ:ULTI): Q3 EPS of $0.69 beats by $0.06.
- Revenue of $155.32M (+21.9% Y/Y) misses by $0.83M.
- Shares +0.75%.
Oct. 26, 2015, 5:35 PM
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Jul. 28, 2015, 4:01 PM
- Ultimate Software Group (NASDAQ:ULTI): Q2 EPS of $0.62 beats by $0.07.
- Revenue of $147.23M (+20.7% Y/Y) beats by $1.11M.
May 19, 2015, 6:54 PM
- As part of a change in analyst coverage for cloud software stocks, Needham's Scott Berg has launched coverage on Workday (NYSE:WDAY) and HealthStream (NASDAQ:HSTM) at Buy, upgraded Cornerstone OnDemand (NASDAQ:CSOD) to Strong Buy, and upgraded Ultimate Software (NASDAQ:ULTI) to Buy after the close. Though their product lines differ, all 4 companies have exposure to the cloud HR/talent management space.
- Berg on Workday: "[W]e believe WDAY has the combination that growth investors seek: large market, well positioned product versus industry megatrends, and a financial model that yields significant revenue visibility ... Although we believe the company's current valuation assumes almost flawless near-term sales execution to further expand its valuation multiples, we believe its execution within a HCM market exhibiting high demand creates a positive risk/reward scenario..." The remarks come ahead of Workday's May 26 FQ1 report.
- Berg on HealthStream: "We believe HealthStream uniquely benefits from two significant mega-trends; 1) the strong secular adoption rates within the Talent Management Enterprise Software subsector, and also 2) an environment that is increasingly regulated, requiring its products’ end users to evaluate competencies and train employees on a more frequent basis." The cloud healthcare software firm is a month removed from posting a Q1 beat.
- WDAY +0.7% AH to $91.28. CSOD +1.9% to $32.44. ULTI +1.2% to $170.29. HealthStream hasn't yet moved AH.
Apr. 29, 2015, 3:30 PM
- Tech companies rallying after posting earnings include telecom analog/mixed-signal chipmaker InPhi (IPHI +11.5%) and process-optimization/supply-chain software vendor Aspen Technology (AZPN +6.3%). Those down strongly include telecom equipment vendor Calix (CALX -8.1%), pay-TV infrastructure hardware provider Harmonic (HLIT -6.4%), and cloud HR software vendor Ultimate Software (ULTI -5.6%).
- InPhi beat Q1 estimates and offered in-line Q2 guidance: Revenue of $59.6M-$60.8M and EPS of $0.22-$0.24 vs. a consensus of $60.6M and $0.23. With shares having sold off going into earnings thanks to soft guidance from peers, the outlook is better than feared.
- Aspen beat FQ3 estimates and issued strong FY15 (ends June '15) guidance on its CC (transcript): Revenue of $437M-$439M and EPS of $1.41-$1.43, above a consensus of $436.9M and $1.33.
- Calix missed Q1 estimates and offered light guidance on its CC (transcript): Revenue of $94M-$98M and EPS of -$0.06 to -$0.02, below a consensus of $104.4M and $0.05. The company blames delays in the rollout of carrier capex budgets.
- Harmonic beat Q1 estimates, but also guided for Q2 revenue of $97M-$107M, below a $108.4M consensus. The company blames macro issues in several regions, a strong dollar, customer M&A activity, and the deferred revenue components of new projects.
- Ultimate posted roughly in-line Q1 results and guided for Q2 revenue of $146M, below a $148.4M consensus. Full-year revenue growth guidance of 22% is in-line. Many peers are rallying following a report stating Salesforce has received buyout interest.
- Previously covered: Twitter, GoPro, LogMeIn, Xoom, GrubHub, MicroStrategy, Smith Micro, AppliedMicro, OpenText