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Asure Software, Inc. Stock Price: Quote, Forecast, Splits & News (ASUR)

Finance

Company Profile

New

Asure Software, Inc. Price & Performance (ASUR)

Stock Performance

Updated Mar 14, 8:00 PM UTC

ASUR:NASDAQ

$9.53USD

4.04% · $0.37

After Hours

+4.15% · $0.40

Open

$9.44

High

$9.53

Low

$9.20

Market Cap

$257.11M

P/E Ratio

-21.2

Volume

64.57K

Year High

$12.74

Year Low

$6.89

News & Market Insights

Asure Software Reports Mixed Q4 2024 Results Amid Growth Challenges
Mar 12, 2025
Asure Software announced Q4 2024 results, showing adjusted earnings of $0.15 per share, below analyst expectations of $0.18. Revenue increased 17.2% year-over-year to $30.79 million, slightly missing forecasts. Despite challenges, including a quarterly net loss, the company confirmed 2025 guidance with mid-teens revenue growth and EBITDA margins of 23%-24%.12
Insider Activity at Asure Software Draws Attention
Mar 13, 2025
Eyal Goldstein, Asure's Chief Revenue Officer, sold shares worth $166,860 on March 12, 2025, while exercising options to acquire stock at a lower price. The transactions highlight insider activity as analysts maintain confidence in the company's future growth, supported by rising recurring revenues and strong bookings performance.34
Upcoming Roth Conference Spotlights Asure Software's Strategy
Mar 10, 2025
Asure Software will attend the Roth Conference from March 16-18, 2025, featuring CEO Pat Goepel in a fireside chat. The company aims to showcase its cloud-based HCM solutions and strategic advancements, including AI integration, to institutional investors. This event underscores Asure's focus on growth and investor engagement.56

What's Happening

Peers

Earnings

Report Date

Mar 6, 2025

Reported Revenue

30.8M

Avg 1d Change

12.15%

Report Period

Q4 2024

Reported EPS

0.10

Implied Move 1d

12.06%

Transcript

12m 35s

A description and timing of these items along with a reconciliation of non GAAP measures to the most comparable GAAP measures can be found in our earnings release. Today's call will also contain forward looking statements that refer to future events and as such involve some risks. We use words such as expects, believes and may to indicate forward looking statements. And we encourage you to review our filings with the SEC for additional information on factors that could cause actual results to differ materially from our expectations. I will hand the call over to Pat in a moment, but just wanted to take a moment to remind folks of some upcoming investor relations activities. On March 16 through the eighteenth, we will attend the thirty seventh Annual ROTH Conference in Dana Point, California. We also plan to do some non deal roadshows later this spring as well. Investor outreach is very important to Assurant, Asure I would like to thank all of those that assist us in efforts to connect with [indiscernible] finally, I would like to remind everyone that this call is being recorded and it will be available for a replay via a link on the Investor Relations section of our website.

13m 50s

With that, I would now like to turn the call over to Pat Keppel, Chairman and CEO. Pat?

13m 56s

Thank you, Patrick, and welcome everyone to Assure Software's fourth quarter and full year 2024 earnings results call. I am joined on this call by our CFO, John Petz and we will provide a business update for our fourth quarter and full year 2024 results as well as our outlook for 2025. Following our remarks, we'll be available to answer your questions.

14m 25s

As you can see from our reported results, we executed quite well against the plan we laid out for 2024 and delivered strong results. Our '20 total revenue increased modestly in 2024 one hundred and nineteen point eight million dollars excluding ERTC revenues total revenues were up 17%. Our recurring revenues for the full year 2024 grew 15% versus the prior year And I would like to highlight that our recurring revenues, which carry higher value than one time revenues as a percentage of total revenues increased to 96% versus 84% in 2023. During 2024, we focused on the continued growth of our business and replacing one time ERTC revenues with higher value reoccurring revenues through a combination of organic growth and acquisitions. The drivers of our success in 2024 with a strong contribution by our payroll tax management product as well as contributions from recent acquisitions. Over the past year, we added to our product portfolio with items such as employee recruiting technology, benefit brokerage capabilities, pre tax and preventative healthcare solutions and our four zero one ks off Recently, we launched a SurePay, alternative to online banking which we expect to help employers with retention, reduction in lost paper checks and attract new employees.

16m 17s

It provides employers with the ability to offer on demand pay as also known as earned wage access. Assurpay is delivered via easy to use mobile app and offers debit card capabilities free ATM withdrawals, plus more. We're in the early stages of the product rollout with launches to strategic groups thus far. We made great strides with our acquisition strategy during 2024, primarily acquiring our payroll resellers. We're acquiring new clients and such transactions are not so much acquisitions in the traditional definition. We anticipated an acquisition during the fourth quarter which did not materialize However, in the first quarter, we replaced the value of the deal with two additional acquisitions and our pipeline for future deals remains robust. These client acquisitions can be a efficiently integrated into our existing business and we can cross sell additional capabilities which we believe will drive future profitability as we achieve scale. As we continue our efforts to enhance client experience, we've been working to integrate all its Asure solutions in a common modern user interface. Additionally, we recently introduced Luna the industry's first AI agent for payroll and HR. Unlike traditional generative AI chatbots, Luna is an advanced AI agent that understands Azure's suite of products and more importantly can act on behalf of both employees through self-service and business owners and administrators.

18m 12s

Employees can simply ask Luna for help and she can take care of items like updating personal details, changing benefits, elections and more. Recently, we've experienced momentum with new payroll units increasing at a strong rate, during the fourth quarter and that sets up us up nicely for 2025. Also, our four zero one product had a strong business results in the fourth quarter as we look forward to seeing that trend continue during 2025. As you know, our four zero one offering leverages the U. S. Government Secured two point zero Act which provides funding and encourages adoption of the four zero one plans by businesses in The U. S. Our sales efforts during the year 2024 resulted in an 86% increase in new bookings versus the prior year. Also, our contracted backlog is strong has grown 17% since our third quarter earnings report. Based on our current business trends, we are reiterating our 2025 revenue guidance of $134,000,000 to $138,000,000 with EBITDA margins of between 2324%. As a reminder, this 2025 guidance excludes any contribution from future potential acquisitions. As we look at the business plan for 2025, our guidance implies a mid teens growth rate which is very positive Finally, we're excited to share that we signed a multiyear agreement with a firm that is the industry leader in audit, tax, consulting and advisory services to resell our payroll and payroll tax management solutions.

20m 15s

This agreement will enable the firm to deliver our comprehensive solutions to their firm's clients for the first time. Now, I'd like to hand off to John to discuss our financial results in more detail as well as our quarter one guidance. John? Thanks, Pat. As Patrick mentioned at the beginning of this call, several of the financial figures discussed today are given on a non GAAP or adjusted basis.

20m 48s

You will find a description of these GAAP to non GAAP reconciliations in the earnings release that was made available earlier today.

20m 55s

Reconciliations themselves are also included in our most recent investor presentation posted in the InvestorRelationssectionofourwebsite@Investor,assuresoftware.com.

21m 7s

Now on to the fourth quarter and twenty twenty four results.

21m 12s

Fourth quarter total revenues of $30,800,000 grew by 17% relative to prior year.

21m 19s

While recurring revenue rose by 14%, excluding non recurring revenue from PRTC total revenue rose by 22% to $119,800,000 despite a $16,500,000 decline in ERTC revenue.

21m 42s

Recurring revenue for the full year rose by 15% relative to prior year to 114,000,000 Fourth quarter recurring revenue growth was led by our payroll tax management business, where our enterprise solutions have gained great traction on the strength of our offering. We also do revenue in payroll, time and attendance and benefits groups. We are particularly excited about the future growth potential of our insurance offerings. Is a new business for us. We have had some challenges in our HR Compliance Group in 2024 related to ERTC upsell activity in 2023. We expect to pass this issue this year.

22m 23s

Despite rate reductions, our float revenue may remain stable the quarter relative to prior year. Gross profit for the fourth quarter was unchanged at 68% compared to the prior year period despite the decline in ERTC revenue.

22m 37s

Full year gross margins decreased to 69% from 72% in the prior year period.

22m 43s

Non GAAP gross margin for the fourth quarter was 73% versus 72% in the prior year period. Non GAAP gross margin for the full year period decreased to 74% from 76% in the prior year.

22m 59s

We continue to believe there is room for margin improvement over the longer term as the business scales.

23m 7s

Net loss for the fourth quarter was 3,200,000.0 during the prior year.

23m 13s

The net loss for the full year 11,800,000.0 versus a prior year loss of $9,200,000 EBITDA for the fourth quarter was $3,400,000 up from $1,100,000 in the prior year period And EBITDA for the full year was $11,400,000 versus 14,300,000.0 in the prior year period. Adjusted EBITDA for the fourth quarter increased to $6,200,000 from $2,800,000 in the prior year period and our adjusted EBITDA margin was 20% in the fourth quarter compared with 11% in the prior year period. Adjusted EBITDA for the full year was 22,500,000.0 versus $23,300,000 in the prior year period, Adjusted EBITDA margin for the full year was 19% versus 20% in the prior year period.

23m 57s

Discussing adjusted EBITDA, we often get questions regarding our free cash flow. The way we think about it is essentially adjusted EBITDA minus software capitalization and net capitalized sales commissions. We ended the year with cash and cash equivalents of $21,400,000 and we had debt of $12,700,000 As we have previously discussed, we are thinking about entering into a credit facility. The company has been in discussions with a number of lenders and based on these discussions, we are contemplating a facility between $20,000,000 to $60,000,000 with a rate of silver plus 4% to 7%. The company has agreed to negotiate exclusively with one lender until 04/13/2025. Company is in the very early stages of negotiating a credit agreement with this lender.

24m 47s

And no definitive agreements have been reached.

24m 49s

Accordingly, there can be no assurance about the timing or terms a definitive credit agreement. Now in terms of guidance for the first quarter of twenty twenty five and full year 2025, our outlook is based on a strong momentum we have built our sales organization with contracted backlog of 79,000,000 up from approximately $20,000,000 at year end 2023. About a third of this backlog is anticipated to be recognized in 2025. We expect to achieve continued synergies, both revenue and cost relating to our customer acquisition activities. With our expanded product offerings, we are also expect to accelerate our cross selling activity success. This will be a strong focus in 2025. We anticipate revenue growth across the organization with continued challenges in our HR compliance group in the first half of the year. We are estimating the first quarter revenues to be in the range of $33,000,000 to $35,000,000 Adjusted EBITDA for the first quarter is anticipated to be dollars roughly stable versus Q1 twenty twenty four. We anticipate EBITDA growth will be more subdued consistent with the revenue profile in the first half of the year as we invest in infrastructure to support large enterprise deals, product and technology.

26m 9s

We are leaving our 2025 revenue guidance unchanged revenue in the range of $134,000,000 to $138,000,000 with adjusted EBITDA margins of between 23% to 24% at these revenue levels. Also as Pat mentioned in his comments earlier, this guidance figures exclude any contribution from future potential acquisitions.

26m 32s

In summary, 2024 was a busy year.

26m 35s

As we grew past the headwinds of ERTC we are excited about the momentum we have entering into 2025. And with that, I will turn the call back to Pat for closing remarks.

26m 46s

Thanks, John. We are pleased to have executed well our plan during 2024, which delivered strong results despite the challenges we faced in replacing one time ERTC revenue, During the past year, we've invested in the business by expanding our product portfolio which will help drive new client additions as well as cross selling within our existing client base. Our product additions in 2024 including a recruiting solution benefit brokerage capabilities, four zero one, preventative and pre tax healthcare offerings, plus a SurePay, which began its launch in November 2024. We feel really good about our product portfolio and remain focused on executing on the opportunities that we have in front of us for 2025. In addition, our payroll tax management product experienced very strong momentum in 2024, with several major multiyear agreements signed such as Venture, Strata, the grocery store chain Kroger and Nucor just to name a few.

28m 4s

We believe that the growth of the tax business will continue to be a driver for us in 2025. During 2024, we have invested in the business and while this partly impacted our margins, we believe that we have laid the foundation that over a medium term time period revenues approach around $200,000,000 we can achieve 30% plus adjusted EBITDA margins which would be a significant improvement from current levels. We remain focused on achieving these goals and the combination of the investments we made plus the continued customer acquisition will help us achieve that goal. As we move into 2025, we're excited with the opportunities we have in front of us with all the new products we added and we're looking to cross sell And our attach rate is one of our measures of success. An increase of overall attach rates will yield increasing margins which will translate to the benefits of scale in the business. We believe this will help develop a clearer understanding of our business and be more beneficial for investors. In summary, we've delivered strong results with reoccurring revenues the most valuable part of the business growing 15% during the year and becoming 96% of total revenues versus 84% in the prior year.

29m 44s

Our bookings growth of 86% was very good. From '23 to '24. Our guidance for 2025 of $134,138,000,000 dollars in revenue implies a mid teens growth rate which is very attractive and the headwinds from ERTC are now gone. We'll continue to provide innovative human capital management solutions that help businesses thrive. Capital management providers grow their base and large enterprises streamline their tax compliance to our prepared remarks. And so with that, I will send the call back to the operator for a question and answer session.

30m 39s

Operator? Thank you. We'll now be conducting a question and answer session. Our first question is coming from Joshua Riley from Needham and Company. Your line is now live. All right. Thanks for taking my questions.

31m 11s

Maybe just starting off, how should we think about the progress you're making on the pipeline for enterprise payroll tax opportunities in 2025? We know there's a lot of opportunities there. And then maybe along with that, like how are you thinking of about getting the salespeople who are focused on ERTC are they fully productive now in terms of the enterprise payroll tax opportunity or what level of progress have you made there? Maybe an update there would be helpful as well.

31m 40s

Yes, Josh, thank you for the question. And with me primarily answer questions today is myself packing up O'Duhl, Chairman and CEO John Pence, the CFO And then with us, we have Al Goldstein, who is President and in charge of the sales organization. So I'll let him take some of those questions as well. But just on a whole, from an enterprise perspective and a tax perspective, we're making really good progress. We've sold a couple of deals where we have licensing deals to start out with, but we're starting and through the year, you're going to see us have more and more volume. And more and more customers on the platform. So So those are going along really, really well. We're really happy with that. We have implementations now with an Oracle system, SAP system, a Workday system. So the interfaces are in place. The infrastructure I think you will see kind of the fruits of the revenue be more consistent and the book to bill timing coming in, where you may have a longer book to bill is if somebody is converting to an ERP solution or enterprise resource planning, we're not going to put that in an immediate background, backlog.

33m 8s

Because that contracted account is going to take some time to get live with the Enterprise Resource Planning software and then install our tax filing. So that was a learning in 2023. And then as far as the salespeople moving past, ERTC I got to tell you, this year was a really good year. We did some acquisitions And we look at sales both from an organic sales perspective or kind of one by one and partner related system, But we also look at it with our client acquisition strategy of our resellers And then what we do is really cross sell and really look at how we drive the value of our catch rates which start out at about 17% and we'll continue to drive that in 20 the conversation go to Ale here for a second because Ale is on a really nice job of top grading the sales staff. And as we moved on from ERTC, to selling the whole solution, perhaps you could expand on that.

34m 18s

Yes.

34m 19s

Hey, Josh. So a couple of things. Just to recap on payroll tax management, that team is very well up to speed. We've got a really good marketing approach where we're driving demand for that group both for enterprise pursuits as well as remarketers or other payroll platforms. That are leveraging and will be leveraging our tax platform. So that one is going to continue to see tremendous growth Pipeline is growing and like Pat mentioned, we're in some really big implementations right now that will only continue to drive more referrals from the big Tier one software players where we're integrating into those platforms.

35m 6s

And then on the other the sales team side outside of payroll tax management, We're probably a year end post ER ERTC where that was our sales motion. So the team has done a really good job. We've top graded a lot of talent on the leadership side.

35m 26s

And one of the things we've done now that we've rounded out solution set with benefits, with retirement solutions, with Assurpay, with HR compliance, is we've specialized as well. So we've got some dedicated specialized sales groups that that is their sales focus, that is what retires their quota, that is what they get compensated on. And it was the right time for us to do that now that we've got some of these different solution sets that we didn't have in the past. Where it will give us great ability to have that focus to drive cross sell into the customer base.

36m 8s

Got it. That's super helpful detail. And then maybe just one quick follow-up. How important is it to close the credit facility for you to do more M and A in 2025 and is the right way to think about it that you're kind of waiting to how that financing works out before you were to do any more material sized deals, whether it's a reseller or some other type of technology or functionality.

36m 34s

Yes, definitely the main impetus for doing the credit facility is to put the gas the customer acquisition model that we've been doing for the last couple of years. I think I was looking at the stats we did 14 customer in the last eighteen months and we did two kind of technology extensions. So a total of 16 deals, but vast majority of them are customer acquisitions And so yes, most of those sellers want a component of their proceeds upfront Typically, we've structured the seller notes to give us some protection on the back end. But in general, most of that is enough upfront cash payment. And so to fund those upfront cash payments and continue that cash those customer acquisition model. That's the main purpose of the facility. And we talk about it all time, but we really feel like we've spent a lot of time and energy building out the back office and the infrastructure to accommodate really adding those those books very quickly and efficiently. So yes, that's definitely one of the main thoughts behind considering that facility, assuming we can get it put together over the next couple of years.

37m 46s

The only thing, John, John hit it on all the points. The key point though I want to make sure that we reinforce is we're fine to on client acquisitions out of the business and out of run rate, if you will. The real impetus though for the facility is we look at scale in 2021, we were somewhere around $79,000,000 or so of revenue at about 10%. This past year close to 120 and close to 20% adjusted EBITDA. At $180,000,000 to $200,000,000 we're at 30% adjusted EBITDA. We got the model right. We've really laid the foundation. And we want to continue to go stronger. We also think from an equity perspective, that we're not interested in raising money. So a proper kind of business line for us to go faster But cash flow wise, we feel really good about the business and moves that we've done and laying the foundation, especially just recently signing this other big deal, when we look at this, the ability to grow faster is something we're interested in and this line gives us that flexibility. And then finally, we wanted to to raise it on the call. We think we're going to close it fairly soon if everything works out.

39m 15s

And we didn't want to have a call and not let investors know that this was in our thinking.

39m 21s

Got it. And then actually one last quick point, just wanted to clarify. I think you said that you've done two customer acquisitions year to date. Are those I assume those are factored into the full year guidance and Mentioned that we had one acquisition under LOI And honestly, I think it's the first one that's fallen out, where we didn't close after we got to a later of intent. We were anticipating that deal closing in November and that was going to be contribution to the quarter of approximately, I'm going to say about $500,000 Is that right Pat? Yes. And so what we did is we replaced that that revenue with these two And so again, I think it it doesn't impact the current year guide because we kind of already have that in our mind when we were here in the third quarter. [indiscernible] that's the story on that. Understood. That makes sense. Thanks guys. Thanks, Jeff. Thank you. Next question is coming from Brian Bergin from TD Wanted to get a question in here on the demand environment, just given all the volatility that is out there. Can you just kind of what kind of you're seeing out there are Main Street just amid everything being driven through DC?

40m 49s

Has it changed any demand cadence in the SMB? Pipe? And also can you comment on just how client hiring and as progressed in this year thus far? Yes, Brian, that's a great question. And if I listen to CNBC, the world's changing in the last whatever six weeks. But if you look at Main Street, really are continuing to hire I do think that there's a divide pick your number if it's under $80,000 and salary versus over $80,000 I think you have more of your layoffs in a white collar recession at this point in time. Than a blue collar or gray collar There is just still at this point more jobs than people. And COVID took two cohorts out of the workplace, the people that were 55 to 64 that had enough to that kind of said, hey, that's it. And then the second working spouse who had to homeschool the kids, and or take care of the parents. And those folks still haven't quite yet gone back to the workplace. And then that simple demographics we watch the numbers pretty closely. We modeled a flat employment kind of plan. We see no reason why we should kind of go away from that plan.

42m 24s

The last couple of weeks, we have daily calls every morning [indiscernible] I would say in some industries that are tied to the government, or tied to let's say homebuilding where you have lumber, there is people that may be a little bit cautious, but I do think there's a big divide of the stock market, let's say, or the news on kind of on TV versus Main Street. And right now, we're just not seeing that area of trepidation as much as you hear on TV. I would tell you, we're watching it daily and we want to make sure And then we modeled a pretty conservative flat growth. So we weren't expecting big changes.

43m 11s

Okay. Okay. That's helpful. And then as you look at 25, can you put some finer points on how you're expecting the contribution of revenue across the payroll tax management any sense of scale you can share collectively between businesses like that versus your traditional SMB business? Yes, I think from the tax filing business, etcetera, we'll continue to grow. I mean, we announced the deal app or we announced the deal, we can't give the name yet, even Even after the quarter, we have a number of different enterprise deals and in some of them, are licensed deals that then are going to bring on the customers over the next couple of years. So we have a theater channel that's pretty strong. I think order of magnitude, we'll probably give that in the first quarter kind of more specifics. But clearly, we're growing at a very healthy rate in that tax area. Money movement area. And then then as far as the core business, we have some headwinds [indiscernible] interest rates potentially going down. I don't know if it will go down. We modeled at a three, five.

44m 36s

Towards midyear with a couple of three cuts I don't think that might be conservative, but that certainly on tax filing flow, will be a little bit of a headwind that we modeled in that might be too conservative. But on the home buying of, let's say, the Equifax relationship, it's more less of a guarantee and more of a tied to mortgages. So So that might be a little bit of a headwind. John mentioned the ERTC little bit of a headwind with human resource compliance. Now that being said, payroll units are up and we feel really good and we think we'll grow in payroll in a meaningful way over from the start of the year to the final of the year and that process has really been underway here in the last six months or so. So and then obviously, the cross sell component is huge for us. We believe that the work we did to integrate the technology as well as launch some of the new products and buy the new products.

45m 43s

We're going to really focus on attach rates and it's going to start out at a number and we're going to give you the progress each quarter. And I think you'll see that the you. Next question is coming from Eric Martinuzzi Lake Street.

46m 8s

Your line is now live.

46m 11s

Yes, I was wondering if you could bifurcate or pick apart the outlook for Q1 just between the recurring revs and the interest sorry, the recurring revs and interest in the kind of seasonal parts of the business, the ACA and the W-2s.

46m 31s

Yes, I would say I think last it would be pretty flat, we think, to last year. I think roughly $5,000,000 of that annual W-two ACA probably about the same this year. Yes. And one thing I would say, Eric, and one of the dynamics that we have both in our payroll business and our tax business is we're starting to price in kind of over an annual fee as opposed to having a one time year end fee, there's still certain amount of clients that have that and but a lot of the newer deals are coming in with the per employee fee either quarterly or annually.

47m 15s

So So the flattish or so W2 revenue is really is being masked by the pricing in of some of this new way of pricing where it's more a kind of a PPM or kind of more repetitive pricing model And some of our acquisitions are like that in addition to some of our go forward business. So and then we have not modeled a ton of business We did a lot of work and we will do a lot of work the second, third and fourth quarter. The first quarter we may and it some of it depends on milestone billing etcetera. We just have taken a very conservative stance in that area around first quarter.

48m 7s

Okay. Just a follow-up. So at the midpoint, of the $34,000,000 we'd be talking about roughly $29,000,000 on the recurring and that would be up about $500,000 sequentially from Q4. Is that correct? Yes.

48m 22s

I'm trying to think what do we have in for fourth quarter in PS. Yes, so I think fourth quarter what I'm seeing is about 28.5 is the recurring Right. That's the reported number. I'm saying based on what you just answered, Mike. Yes.

48m 42s

The answer to my question. 20 About 20 yes, about 29%, but I would also tell you first quarter, a couple of things.

48m 49s

Fourth quarter is sometimes a little bit stronger based on bonus and employment. Just because there's extra runs etcetera. I mentioned kind of W2 anomaly And then I would say the first quarter usually the checks are a little bit down in first quarter, versus fourth quarter and that coupled with growth leads us to a conservative guide. But I would tell you, I think there's probably more upside to downside. Got it. Thanks for taking my question. Thanks, Eric. Thank you. Next question is coming from Jeff Van Rhee from Craig Hallum Capital Group. Your line is now live.

49m 31s

Good evening, guys. This is Daniel on for Jeff. Just on the Sherpa introduction, maybe you can just tell us a little bit more about the go to market there. What the drivers are in terms of the end users and businesses adopting how that will roll out Just how that will look and ramp? Yes. Just from a SurePay, right now we have approximately five end clients on a SurePay And what we're doing is really testing the value proposition. We're going through, make sure the pipes are as advertised. Make sure everybody's got their their system working. And then we already have taken quite a few sign ups the second early in the second quarter.

50m 19s

So we'll roll that out. We anticipate in a lot of areas that will replace card revenue that we already have and bring that in house. We also believe that from a check revenue, this will be an excellent card for that. So we have some clients, some industries, we have people on the system today And for us, it's kind of an all in one card where they can use it as earn wage access, they can use it as a banking account. They can use it as a debit card. And then even even a charge card that they can pay in the future, it might even be a credit card. So So we think that this thing has a ton of legs and will be the way that people use this within the Asure Payroll family, but we're still early days 500 are using it thus far. And then Will kind of announce our progress each quarter and we feel pretty good about where we're going to be, but more to come here in the next quarter's earnings. Okay. That helps. And then on the four zero one in terms of the impression I think I got in was that the initial momentum there wasn't maybe as expected when it launched, but it sounds like it's accelerating there.

51m 46s

Just help us what sort of the learnings are there? Where sort of the momentum is coming from? And what is it sort of that are the key drivers in terms of getting small businesses to want to adopt the new plans?

51m 59s

Yes, I'll let El Pollock as well. And one. But first of all, we pivoted from ERTC in fourth quarter of twenty three now and really launch four zero one right around the January timeframe.

52m 15s

So it's been kind of a year with it. I would say interest level was super high.

52m 20s

What I would say is our partner, Bestowel, is [indiscernible] nice technology partner and we've worked together well What I would say we've had a leads we've had to learn how to sell it and you have an admin and you have a fun lineup component. We had to kind of learn the ins and outs of that. And then from an implementation or book to bill, we had to make sure that we really kind of locked in on a book to bill And I will tell you, we've had a lot of interest in from a compliance perspective on the Secured two point zero, zero kind of rules, some of that was changing in the first year where the ease of compliance and maybe the carrot and the stick weren't quite well known. So we had to evangelize that. We found our rhythm here a little bit and coming from one of my past lives who said Fidelity where we had a lot of four zero one customers. It's just really a learning curve. But I will tell you, we're starting to get it. And we're starting to get the book to build out.

53m 26s

I think the admin piece, we have a pretty good job. And then now as we move funds from the other providers, that will start to pop revenue in the future. So it's just a learning curve. We have expanding now our sales motion in that area as well as our operation expertise. But Eyal, maybe if you want to jump in on that.

53m 50s

Yes. I think anytime you roll out a financial product, I think you could probably took us a little bit longer than I would like. But But just to piggyback what Pat was saying, we've got a dedicated retirement sales group now that that is their sole focus. They got the ability first of all, they've got experience selling retirement solutions. And so they're able to jump into the pursuits that we have referrals into customer base and new deals.

54m 21s

And transact and drive those value propositions much more effectively than we were a year ago when we rolled it out. So we're seeing and we'll have this month month more unit sales of four zero one than we've had in the past. It will be a record for us. So the momentum is just starting. I think we now have the value prop proposition down. And again, the more we have some of these specialized sales teams, that that is their sole focus.

54m 59s

I think it's just going to continue to drive the demand in our execution to added not only to new deals coming in, but more penetration like Pat mentioned in the customer base.

55m 15s

Thank you.

55m 17s

Thank you. Our next question is coming from Richard Baldry from ROTH Capital Partners. Your line is now live. Rich?

55m 33s

Yes. When you look at the new bookings growth at last year, was that more a function of unit growth or ARPU? And the reason I'm asking is feels like with your broadened offerings that gives you an [indiscernible] Because of the broadened suite that you've got is more complete now. So just sort of curious how you think about that and how you think about that growth driver for 2025 and forward?

56m

Between sort of Rich, you could have been in our Board meeting. So the real, I would say, first of all, a lot of progress, a lot of credit goes to Al. In 2024, 86% up is what is about 86% you don't like. If there's anything we didn't like, we thought it was big deal tax filing enterprise. We thought that had disproportionate amount And then on the small business, we felt really good about the unit growth But now we have to expand our ARPU and when we looked at the capability, we consciously went after the benefit area, the recruiting area, we really want to round out the solution. So now as we introduce kind of next year we introduce product attachments and the overall attach rate that is the focus. And then we looked at and Morgan organization of reorganizing because at the high level, we were driving really big deals but now what we want to do is bring bring along those multiproduct solutions to the company and really drive the value of the deals And maybe, Al, you've done a really nice job of of hiring the right people to do that, but let's talk about that for 2025. [indiscernible] Yes.

57m 28s

And Rich, that was a big reason for part of the reorganization of the sales team to some specialized sales groups. So again, on the high end, we had two comma deals, big 6 figure deals on tax.

57m 43s

That's continuing right now in a big way. And then when I look at the pipeline, actually our units are up quite a bit, 40 something percent here. From a pipeline perspective. So we're getting the units The big opportunity for us for us was, okay, now how do we attach all these other solutions that we have that we've rounded out as part of the offering to these payroll units. And that's the big piece for us, right? Once that linkage happens now, if we can continue the pace of payroll units and continue to grow that, the way we have been.

58m 24s

And attach benefits, broker, four zero one, HR compliance time and attendance, which we've done with some bundles. Now you'll really start to see kind of trend the ARPU will go up up and to the right in a big way.

58m 40s

The other aspect, Rich, that we're really working on, it's just not only a sales and marketing function, but with our technology introducing Luna we're starting to introduce adventure of marketing and using our data So if somebody for example processes a termination they have the ability to use our COBRA services right away or they have a light event, we immediately can market to them. So this is a strategy we've been working on for multiple years and we feel like sometimes luck is preparation meeting opportunity. We're prepared and we're hoping for some real good luck here in attach rates in 2025.

59m 27s

Okay.

59m 28s

So the 86% increase in bookings are not luck, right? You've done it pretty strong. It also seems to me you're guiding up on revenue seasonally just like you would in any other year, but you're holding the earnings out. So you've proactively decided you're going to spend that to support what looks like an acceleration to your wins and stuff. Can you talk maybe a little bit more specifically about where you've decided to spend that money, what you think you get out of that that increased sort of short term investment?

Yes. I think, Rich, from my perspective, we continue to invest in the technology. As Pat mentioned, I mean, really trying to unify the customer experience. So that's an ongoing spend. And we weren't we were in the payroll tax management business for a while but we weren't in the big enterprise business. So I think we really tried to step up our game when you're dealing with Kroger's and Newcorders and Workday clients, customers of that ilk, you really need a different kind of staff So we put some dollars to work We think it's not it's going to be money well spent. We haven't able to give you the name of this other large enterprise that was closed this quarter. But again, really need to have some good people to interface with them. So I think that's where we're putting a lot of our money.

1h 51s

And Rich, just to give a finer point of that, we know know we have some of the license revenue but we don't have all the clients there. And now the clients as they feather in, we've staffed ahead of some of that. And then the other thing, I would say with some of the technology spend and we were historically a kind of point solution company that now is a total solution company. There's ability to really automate a lot of functions and then with [indiscernible] we can now look at doing things quite a bit more efficiently where instead of setting up three products, we can set it up once. And some of those kind of investments have been made, but they start getting rolled out. And then things, if you look at either Assurpay, that is something where the infrastructure is already there. It just comes almost really high margin revenue in the second half of the year, but that cost to get there really was born in the second half and the first quarter.

1h 2m 1s

Thanks and congrats on a great outlook. Thank you.

1h 2m 7s

Thank you. Next question is coming from Charles Nabon Stephens. Your line is now live.

1h 2m 12s

Hi, good afternoon and thank you for taking my question.

1h 2m 16s

Wanted to ask about the outlook for margin expansion.

1h 2m 20s

Through the year. I think you had indicated that there were some investments coming in the first half followed by some acceleration in revenue growthoperating leverage as some of your new bookings go live. But just wanted to get a sense for as we model the year, should we think of margin [indiscernible] Quarters? And then secondly, if you could talk about how much we could expect to come from OpEx versus gross margin, just for modeling purposes?

1h 2m 54s

So I think what we're trying to do is and it's in the 10 ks. I think our headcount at year end was roughly $6.35. I would say we're going to try to hold that's a pretty good indicator for us in terms of our cost structure. So I would say we're going to try to hold the line in that general vicinity for the year. There'll be some ebbs and flows to it. I think that's what we're trying to do from that perspective. And so I think from my perspective, the margins flow with the revenues. Think about that relatively flat cost structure for the year, as the revenues increase, you're going to get that fall through So that being said, I think it's more backend loaded in terms of it's not a linear progression because we'll be down more likely than not in Q2 versus Q1 just because of that normal year end transition. For those year end fees. So I think it will be kind of more of a third, fourth quarter Margin? That's where you're getting most of your lift.

1h 3m 51s

Is that fair, Pat? Yes. No, I think so. The only other thing I would say is if you think about sales headcount, we really ramped up in the second half of the year and first quarter So a lot of that kind of we ran into it And the reason we did that, all also from an implementation perspective, etcetera, we knew some of these deals were coming. That's the benefit of the enterprise deal. So as you get the license fees, but now you have backlog that's 79 versus a year ago, I think it was somewhere around 16 or 19 or something. At the end of the year. 20 at the end of the year.

1h 4m 33s

We just have a lot more visibility into the revenue and what it's going to be. And then we've also some of those partners have asked us to help them on some implementation pursuits and revenue and you'll see that in the PS line. So it's almost kind of pre sold in some cases. So that was the thought process around it.

1h 4m 56s

Got it.

1h 4m 57s

And just a quick follow-up on M and A Could you talk about what you're seeing from a valuation or maybe like an inbound interest standpoint relative to where things have been over the past couple of years? And secondly, outside of the reseller acquisitions you maybe talk about what's on your roadmap or wish list from a product or solution standpoint I'll hit a first couple of points and then I'll let Pat talk about the pipeline. But I'd say of the 16 deals, I mean I was just looking at the metrics. I mean, we've always kind of said that we're kind of two to three times what we think in terms of revenue. I mean, it's literally point five When you take all those acquisitions across, that we did last year, over the last eighteen months. So very, very consistent on that front. And then I'll let Pat talk about kind of the pipeline and what he sees. Yes. And I think from a pipeline perspective, first of all, we view if you think if you step back from it, it's client acquisition both from a sales perspective as well as our reseller network. The value is scale.

1h 6m 5s

We want to get to $180,000,000 to $200,000,000 and we want to drive 30% margins. So that kind of drives the opportunity. How we get there as clients and the best clients that we can get is either sell them or get them from the reseller network because it's the same technology. As we built around capability when we're on a cross sell the heck out of it. And if we cross sell the heck out of it and provide value to clients we already have, it's a lot easier and more profitable to sell cross sell clients we already have than go out and getting the new. And then we want to build on our kind of core competencies around money movement and tax filing and we'll continue to drive that. And then finally, from a cost perspective, we've invested in technology and we want to make sure that we automate and drive efficiencies and we're well on our way to do that and have identified areas where we can automate including Luna and introducing AI. Finally, from a capability perspective, I think you'll see us lean in continue leaning in on the benefit area. There's some things that we want to do there.

1h 7m 18s

And we look at things around build partner buy and we prefer to partner to under [indiscernible] to buy. But I think right now, we're going to go vertical for scale and then horizontal, I think we have enough to sell We just now want to rinse and repeat and get to the 180 to 200 scale, but we'll look and be opportunistic around growth possibilities in the business because we believe as a public company the highest best use from an investor perspective is to get scale.

1h 7m 59s

Got it. Thanks again, guys. Appreciate all the color.

1h 8m 2s

Thank you.

1h 8m 3s

Thank you. Next question today is coming from Greg Gebaus from Northland Securities. Your line is now live.

1h 8m 11s

Hey, great. Thanks for taking the questions guys. You mentioned another large enterprise customer that you closed in Q1. I guess I wanted to get a sense of kind of the how much sensitivity to maybe revenue performance in your guidance there is that kind of depends on the implementation of those deals? Just considering in the past there's been a little bit of a challenge in terms of forecasting the timing of implementation.

1h 8m 36s

Yes. And I will say, Greg, we did close one in Q1. We have a couple of hundred thousand in license fees to out, let's say. And we know we're going to be on pursuits We don't have a ton modeled in. We have a little modeled in around fourth quarter, but really that's a 2026 initiative. If we get it early, that's great. And we'll we'll let you know that. But we're relatively new into it. So When we set the guide, we didn't put a lot of dollars in it. We were working with them over the last six months so we had some visibility. But we're not counting a ton on that one. We're really just trying to we're really excited about it. We think that they have the ability to

Key Insights

Revenue Growth and Recurring Revenue Focus: Total revenue for 2024 increased modestly to $119.8 million, with recurring revenues growing 15% year-over-year and now comprising 96% of total revenues, up from 84% in 2023. The company is focused on replacing one-time ERTC revenues with higher-value recurring revenues through organic growth and acquisitions.
2025 Guidance and Financial Metrics: The company reiterated its 2025 revenue guidance of $134 million to $138 million, implying mid-teens growth, with adjusted EBITDA margins expected between 23% and 24%. This guidance excludes contributions from future acquisitions.
Product Expansion and Innovation: New product launches in 2024 included AssurPay (an alternative to online banking), AI-powered payroll agent Luna, and expanded offerings in employee recruiting, benefits brokerage, and healthcare solutions. These are expected to drive cross-selling opportunities and client retention in 2025.
Acquisition Strategy and Credit Facility: The company completed two acquisitions in Q1 2025 to replace a deal that fell through in Q4 2024. It is negotiating a credit facility of $20 million to $60 million to fund future acquisitions and accelerate growth, with no definitive agreement yet reached.
Margin Expansion and Long-Term Goals: While investments in technology and sales infrastructure impacted margins in 2024, the company aims to achieve $200 million in revenue with 30%+ adjusted EBITDA margins over the medium term. Margin improvements are expected to be more pronounced in the second half of 2025 as revenue scales.

Income Statement

Revenue

	2020	2021	2022	2023	2024
Revenue	$66M	$76M	$96M	$119M	$120M
Cost of Revenue	$27M	$30M	$33M	$34M	$38M
Gross Profit	$38M	$47M	$63M	$86M	$82M
Gross Profit %	58%	61%	65%	72%	69%
R&D Expenses	$6M	$5.4M	$6.1M	$6.8M	$7.8M

2020

2021

2022

2023

2024

Revenue

$66M

$76M

$96M

$119M

$120M

Cost of Revenue

$27M

$30M

$33M

$34M

$38M

Gross Profit

$38M

$47M

$63M

$86M

$82M

Gross Profit %

58%

61%

65%

72%

69%

R&D Expenses

$6M

$5.4M

$6.1M

$6.8M

$7.8M

Cash Flow

Net Income

	2020	2021	2022	2023	2024
Net Income	-$16M	$3.2M	-$14M	-$9.2M	-$12M
Dep. & Amort.	$16M	$18M	$20M	$21M	$24M
Def. Tax	$551K	$707K	-$92K	$225K	$884K
Stock Comp.	$2.4M	$3M	$3.2M	$5.4M	$6.4M
Chg. in WC	-$6.3M	-$15M	$5.3M	-$1.4M	-$7.8M

2020

2021

2022

2023

2024

Net Income

-$16M

$3.2M

-$14M

-$9.2M

-$12M

Dep. & Amort.

$16M

$18M

$20M

$21M

$24M

Def. Tax

$551K

$707K

-$92K

$225K

$884K

Stock Comp.

$2.4M

$3M

$3.2M

$5.4M

$6.4M

Chg. in WC

-$6.3M

-$15M

$5.3M

-$1.4M

-$7.8M

Balance Sheet

Cash

	2020	2021	2022	2023	2024
Cash	$29M	$13M	$17M	$30M	$21M
ST Investments	$0	$0	$0	$0	$0
Cash & ST Inv.	$29M	$13M	$17M	$30M	$21M
Receivables	$3.8M	$5.3M	$12M	$14M	$18M
Inventory	$449K	$246K	$251K	$155K	$195K

2020

2021

2022

2023

2024

Cash

$29M

$13M

$17M

$30M

$21M

ST Investments

Cash & ST Inv.

$29M

$13M

$17M

$30M

$21M

Receivables

$3.8M

$5.3M

$12M

$14M

$18M

Inventory

$449K

$246K

$251K

$155K

$195K

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Earnings

Report Date

Mar 6, 2025

Reported Revenue

30.8M

Avg 1d Change

12.15%

Report Period

Q4 2024

Reported EPS

0.10

Implied Move 1d

12.06%

Transcript

12m 35s

13m 50s

With that, I would now like to turn the call over to Pat Keppel, Chairman and CEO. Pat?

13m 56s

14m 25s

16m 17s

18m 12s

20m 15s

20m 48s

You will find a description of these GAAP to non GAAP reconciliations in the earnings release that was made available earlier today.

20m 55s

Reconciliations themselves are also included in our most recent investor presentation posted in the InvestorRelationssectionofourwebsite@Investor,assuresoftware.com.

21m 7s

Now on to the fourth quarter and twenty twenty four results.

21m 12s

Fourth quarter total revenues of $30,800,000 grew by 17% relative to prior year.

21m 19s

While recurring revenue rose by 14%, excluding non recurring revenue from PRTC total revenue rose by 22% to $119,800,000 despite a $16,500,000 decline in ERTC revenue.

21m 42s

22m 23s

22m 37s

Full year gross margins decreased to 69% from 72% in the prior year period.

22m 43s

Non GAAP gross margin for the fourth quarter was 73% versus 72% in the prior year period. Non GAAP gross margin for the full year period decreased to 74% from 76% in the prior year.

22m 59s

We continue to believe there is room for margin improvement over the longer term as the business scales.

23m 7s

Net loss for the fourth quarter was 3,200,000.0 during the prior year.

23m 13s

23m 57s

24m 47s

And no definitive agreements have been reached.

24m 49s

26m 9s

26m 32s

In summary, 2024 was a busy year.

26m 35s

As we grew past the headwinds of ERTC we are excited about the momentum we have entering into 2025. And with that, I will turn the call back to Pat for closing remarks.

26m 46s

28m 4s

29m 44s

30m 39s

31m 11s

31m 40s

33m 8s

34m 18s

Yes.

34m 19s

35m 6s

35m 26s

36m 8s

36m 34s

37m 46s

39m 15s

And we didn't want to have a call and not let investors know that this was in our thinking.

39m 21s

40m 49s

42m 24s

43m 11s

44m 36s

45m 43s

46m 8s

Your line is now live.

46m 11s

46m 31s

47m 15s

48m 7s

48m 22s

48m 42s

The answer to my question. 20 About 20 yes, about 29%, but I would also tell you first quarter, a couple of things.

48m 49s

49m 31s

50m 19s

51m 46s

51m 59s

Yes, I'll let El Pollock as well. And one. But first of all, we pivoted from ERTC in fourth quarter of twenty three now and really launch four zero one right around the January timeframe.

52m 15s

So it's been kind of a year with it. I would say interest level was super high.

52m 20s

53m 26s

53m 50s

54m 21s

54m 59s

I think it's just going to continue to drive the demand in our execution to added not only to new deals coming in, but more penetration like Pat mentioned in the customer base.

55m 15s

Thank you.

55m 17s

Thank you. Our next question is coming from Richard Baldry from ROTH Capital Partners. Your line is now live. Rich?

55m 33s

56m

57m 28s

And Rich, that was a big reason for part of the reorganization of the sales team to some specialized sales groups. So again, on the high end, we had two comma deals, big 6 figure deals on tax.

57m 43s

58m 24s

58m 40s

59m 27s

Okay.

59m 28s

1h 51s

1h 2m 1s

Thanks and congrats on a great outlook. Thank you.

1h 2m 7s

Thank you. Next question is coming from Charles Nabon Stephens. Your line is now live.

1h 2m 12s

Hi, good afternoon and thank you for taking my question.

1h 2m 16s

Wanted to ask about the outlook for margin expansion.

1h 2m 20s

1h 2m 54s

1h 3m 51s

1h 4m 33s

1h 4m 56s

Got it.

1h 4m 57s

1h 6m 5s

1h 7m 18s

1h 7m 59s

Got it. Thanks again, guys. Appreciate all the color.

1h 8m 2s

Thank you.

1h 8m 3s

Thank you. Next question today is coming from Greg Gebaus from Northland Securities. Your line is now live.

1h 8m 11s

1h 8m 36s

Key Insights

Revenue Growth and Recurring Revenue Focus: Total revenue for 2024 increased modestly to $119.8 million, with recurring revenues growing 15% year-over-year and now comprising 96% of total revenues, up from 84% in 2023. The company is focused on replacing one-time ERTC revenues with higher-value recurring revenues through organic growth and acquisitions.
2025 Guidance and Financial Metrics: The company reiterated its 2025 revenue guidance of $134 million to $138 million, implying mid-teens growth, with adjusted EBITDA margins expected between 23% and 24%. This guidance excludes contributions from future acquisitions.
Product Expansion and Innovation: New product launches in 2024 included AssurPay (an alternative to online banking), AI-powered payroll agent Luna, and expanded offerings in employee recruiting, benefits brokerage, and healthcare solutions. These are expected to drive cross-selling opportunities and client retention in 2025.
Acquisition Strategy and Credit Facility: The company completed two acquisitions in Q1 2025 to replace a deal that fell through in Q4 2024. It is negotiating a credit facility of $20 million to $60 million to fund future acquisitions and accelerate growth, with no definitive agreement yet reached.
Margin Expansion and Long-Term Goals: While investments in technology and sales infrastructure impacted margins in 2024, the company aims to achieve $200 million in revenue with 30%+ adjusted EBITDA margins over the medium term. Margin improvements are expected to be more pronounced in the second half of 2025 as revenue scales.

Asure Software, Inc. Price & Performance (ASUR)

Stock Performance

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Low

Market Cap

P/E Ratio

Volume

Year High

Year Low

News & Market Insights

What's Happening

Peers

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights

Income Statement

Cash Flow

Balance Sheet

Go Deeper

Related

News & Market Insights

Go Deeper

Earnings

Report Date

Reported Revenue

Avg 1d Change

Report Period

Reported EPS

Implied Move 1d

Transcript

Key Insights