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What: Shares of Ultimate Software Group (Nasdaq: ULTI) have jumped by 16% after the software maker reported third-quarter earnings last night.

So what: Revenue for the quarter jumped 19% to $67.8 million, which resulted in non-GAAP net income of $4.9 million, or $0.18 per share. Recurring revenue from the company's important Software-as-a-Service (SaaS) offering grew by 24% and comprised 81% of the quarter's sales.

Now what: Ultimate's annualized retention rate with existing recurring revenue customers is north of 96%, and the company expects recurring revenue to rise by 25% in 2011 and 2012. A couple of analysts who have buy ratings on the stock are out today with bullish comments. Needham & Company and Canaccord Genuity, who both have $60 price targets, like the company's bookings growth.

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Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.