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  "notes": "Uses external analyst validation to support the investment thesis regarding operating leverage.",
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      "text": "Wall Street research estimates Ultimate’s structural margin potential to be 30% – 40% when it reaches scale",
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      "text": "Substantial long-term operating leverage: Longer term, our hypothetical margin expansion analysis shows the potential for a significant ramp in pro forma operating margins from 12% currently to 30-40%... – Nomura, Aug 2012",
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      "text": "Performing the same analysis for Ultimate Software Group, with its current renewal margins between 48% and 50%... this would imply long-run, fully- scaled potential operating margins in the low-30% range... – Goldman Sachs, July 2017",
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      "text": "“Substantial long-term operating leverage: Longer term, our hypothetical margin expansion analysis shows the potential for a significant ramp in pro forma operating margins from 12% currently to 30-40%, in theory, as revenues grow to scale and sales and marketing (S&M) costs normalize. We strongly believe that the SaaS business model can ultimately achieve a margin structure similar to that of traditional on-premise software businesses—a view that we believe is underappreciated by the Street.” — Nomura, Aug 2012; “Performing the same analysis for Ultimate Software Group, with its current renewal margins between 48% and 50% over the last four years, this would imply long-run, fully- scaled potential operating margins in the low-30% range (Ultimate’s non-GAAP operating margins today are ~20%).” — Goldman Sachs, July 2017",
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