Ultimate Software slips despite posting record revenues

|About: Ultimate Software Group, I... (ULTI)|By:, SA News Editor

Ultimate Software Group (ULTI +0.5%) is off 4% in postmarket trading after its Q1 earnings beat on the bottom line but narrowly missed revenue expectations.

That's despite revenues rising 22% to a record, and recurring revenues in particular jumping 24% to its own record.

Non-GAAP net income rose to $23M from $21.9M.

Customer retention rate Y/Y was about 96%.

Revenue breakout: Recurring, $189.98M (up 24.4%); Services, $38.5M (up 11.7%).

Cash flows from operations were $46.3M, up from a year-ago $38.6M.

It's guiding to Q2 revenues of $228M, with recurring revenues of about $196M and operating margin of about 20%. For the full year, it expects revenue to grow 24% Y/Y (recurring up 25%) and operating margin of about 21%.

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