Ultimate Software
Ultimate Software is a company.
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Updated: ·
Financial History
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Leadership Team
Key people at Ultimate Software.
Ultimate Software is a company.
Key people at Ultimate Software.
Key people at Ultimate Software.
Ultimate Software was a leading provider of UltiPro, a cloud-based human capital management (HCM) software suite that unified HR, payroll, benefits, time and attendance, talent management, and employee self-service for mid-market and enterprise businesses across industries.[1][2][3] It served over 4,100 customers in 160 countries by 2017, generating $940.7 million in annual revenue with a 96% customer retention rate, solving fragmented people management by enabling efficient employee lifecycle handling from onboarding to compliance.[1][3][4] The company demonstrated strong growth momentum, expanding from on-premise software to multi-tenant SaaS in 2002, achieving 28% average annual revenue growth to $583 million by 2015, positive cash flow since 2004, and a $5.5 billion market cap before its 2019 acquisition.[1][2]
Founded in 1990 by Scott Scherr, a payroll services veteran with expertise in operations, sales, management statistics, and data, Ultimate Software launched its first on-premise UltiPro HRMS/payroll product in 1993.[1][5] Scherr's vision emphasized product excellence for HR and payroll professionals, starting with core HR functions before pivoting to cloud-based SaaS in 2002 for unified management.[1][2] Early traction included going public on NASDAQ (ULTI) in 1998, international expansion to London and Singapore, and rapid customer growth to over 3,400 by the mid-2010s, fueled by its single-database SaaS model.[1][2] Pivotal moments were its shift to 82% subscription revenue, consistent profitability post-2005, and awards like Forrester's top HCM leader status in 2008.[2][4]
Ultimate Software rode the SaaS HCM wave, transitioning early from on-premise to cloud in 2002 amid rising demand for scalable, integrated people management amid globalization and remote work trends.[1][2] Its timing capitalized on mid-market needs for affordable, compliant alternatives to giants like Workday (where it ranked second among public HCM vendors), influencing the ecosystem by setting benchmarks for unified platforms, high retention, and employee-centric design.[2][4] Market forces like regulatory complexity, talent shortages, and Gallup-noted employee engagement priorities favored its model, enabling 4,100 customers and offices in the US, Canada, UK, and Singapore while earning accolades from Forrester, Stevie Awards, and InformationWeek.[1][3][4]
Post-2019 acquisition by Hellman & Friedman for $11 billion and 2020 merger with Kronos into Ultimate Kronos Group (UKG), the company continues as a HCM powerhouse, likely expanding AI-driven analytics, global compliance, and employee experience features amid hybrid work and skills economy shifts.[1] Trends like workforce personalization and data security will propel UKG, evolving its influence from SaaS pioneer to dominant player serving multinational enterprises with even deeper integrations. This trajectory echoes Ultimate's disciplined path from $4 million to billion-dollar scale, reinforcing its legacy in transforming HR tech.[1][2]
