Asure Announces Fourth Quarter and Full Year 2024 Results
Asure Software (Nasdaq: ASUR) reported its Q4 and full-year 2024 results, showing strong growth in recurring revenue. Full-year 2024 revenue reached $119.8 million, with recurring revenue growing 15% year-over-year to $114.5 million, now representing 96% of total revenues.
Q4 2024 highlights include revenue of $30.8 million (up 17% YoY), net loss of $3.2 million (improved from $3.6 million loss in Q4 2023), and Adjusted EBITDA of $6.2 million (up from $2.8 million). Excluding ERTC revenue, Q4 growth was 22% YoY.
Recent developments include a major multi-year agreement for Payroll and Payroll Tax Management solutions, the launch of Luna AI agent for payroll and HR management, and the appointment of Jay Whitehead as SVP to lead AsurePay™ Platinum VIP Banking and Marketplace businesses.
Asure Software (Nasdaq: ASUR) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, evidenziando una forte crescita nei ricavi ricorrenti. I ricavi dell'anno fiscale 2024 hanno raggiunto i 119,8 milioni di dollari, con una crescita del 15% anno su anno nei ricavi ricorrenti, che ora rappresentano il 96% dei ricavi totali.
I punti salienti del Q4 2024 includono ricavi di 30,8 milioni di dollari (in aumento del 17% rispetto all'anno precedente), una perdita netta di 3,2 milioni di dollari (migliorata rispetto a una perdita di 3,6 milioni di dollari nel Q4 2023) e un EBITDA rettificato di 6,2 milioni di dollari (in aumento rispetto a 2,8 milioni di dollari). Escludendo i ricavi da ERTC, la crescita del Q4 è stata del 22% anno su anno.
Tra gli sviluppi recenti c'è un importante accordo pluriennale per soluzioni di gestione delle buste paga e delle tasse sulle buste paga, il lancio dell'agente Luna AI per la gestione delle buste paga e delle risorse umane, e la nomina di Jay Whitehead come SVP per guidare le attività di AsurePay™ Platinum VIP Banking e Marketplace.
Asure Software (Nasdaq: ASUR) informó sus resultados del cuarto trimestre y del año completo 2024, mostrando un fuerte crecimiento en los ingresos recurrentes. Los ingresos del año fiscal 2024 alcanzaron los 119,8 millones de dólares, con un crecimiento del 15% interanual en los ingresos recurrentes, que ahora representan el 96% de los ingresos totales.
Los aspectos destacados del Q4 2024 incluyen ingresos de 30,8 millones de dólares (un aumento del 17% interanual), una pérdida neta de 3,2 millones de dólares (mejorada desde una pérdida de 3,6 millones de dólares en el Q4 2023) y un EBITDA ajustado de 6,2 millones de dólares (en aumento desde 2,8 millones de dólares). Excluyendo los ingresos de ERTC, el crecimiento del Q4 fue del 22% interanual.
Los desarrollos recientes incluyen un importante acuerdo plurianual para soluciones de gestión de nómina y gestión de impuestos sobre la nómina, el lanzamiento del agente Luna AI para la gestión de nómina y recursos humanos, y el nombramiento de Jay Whitehead como SVP para liderar las actividades de AsurePay™ Platinum VIP Banking y Marketplace.
Asure Software (Nasdaq: ASUR)는 2024년 4분기 및 전체 연도 결과를 발표하며 반복 수익의 강력한 성장을 보여주었습니다. 2024년 전체 연도 수익은 1억 1,980만 달러에 달했으며, 반복 수익은 전년 대비 15% 증가한 1억 1,450만 달러로, 현재 전체 수익의 96%를 차지하고 있습니다.
2024년 4분기 하이라이트에는 3,080만 달러의 수익(전년 대비 17% 증가), 320만 달러의 순손실(2023년 4분기 360만 달러 손실에서 개선됨), 조정 EBITDA 620만 달러(280만 달러에서 증가)가 포함됩니다. ERTC 수익을 제외하면 4분기 성장률은 전년 대비 22%였습니다.
최근 개발 사항으로는 급여 및 급여세 관리 솔루션을 위한 주요 다년 계약, 급여 및 HR 관리를 위한 Luna AI 에이전트의 출시, AsurePay™ Platinum VIP Banking 및 Marketplace 비즈니스를 이끌기 위해 Jay Whitehead를 SVP로 임명한 것이 포함됩니다.
Asure Software (Nasdaq: ASUR) a publié ses résultats pour le quatrième trimestre et l'année complète 2024, montrant une forte croissance des revenus récurrents. Les revenus de l'année fiscale 2024 ont atteint 119,8 millions de dollars, avec une croissance de 15 % d'une année sur l'autre des revenus récurrents, représentant désormais 96 % des revenus totaux.
Les points forts du Q4 2024 incluent des revenus de 30,8 millions de dollars (en hausse de 17 % par rapport à l'année précédente), une perte nette de 3,2 millions de dollars (améliorée par rapport à une perte de 3,6 millions de dollars au Q4 2023) et un EBITDA ajusté de 6,2 millions de dollars (en hausse par rapport à 2,8 millions de dollars). En excluant les revenus ERTC, la croissance du Q4 était de 22 % d'une année sur l'autre.
Les développements récents incluent un important accord pluriannuel pour des solutions de gestion de la paie et des impôts sur la paie, le lancement de l'agent Luna AI pour la gestion de la paie et des ressources humaines, et la nomination de Jay Whitehead en tant que SVP pour diriger les activités d'AsurePay™ Platinum VIP Banking et Marketplace.
Asure Software (Nasdaq: ASUR) hat seine Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 veröffentlicht, die ein starkes Wachstum der wiederkehrenden Einnahmen zeigen. Die Einnahmen des Gesamtjahres 2024 beliefen sich auf 119,8 Millionen US-Dollar, wobei die wiederkehrenden Einnahmen im Vergleich zum Vorjahr um 15% auf 114,5 Millionen US-Dollar gestiegen sind und nun 96% der Gesamteinnahmen ausmachen.
Die Highlights des Q4 2024 umfassen Einnahmen von 30,8 Millionen US-Dollar (ein Anstieg von 17% im Vergleich zum Vorjahr), einen Nettoverlust von 3,2 Millionen US-Dollar (verbessert von einem Verlust von 3,6 Millionen US-Dollar im Q4 2023) und ein bereinigtes EBITDA von 6,2 Millionen US-Dollar (gestiegen von 2,8 Millionen US-Dollar). Ohne ERTC-Einnahmen betrug das Wachstum im Q4 22% im Vergleich zum Vorjahr.
Zu den aktuellen Entwicklungen gehört ein bedeutender mehrjähriger Vertrag für Lösungen im Bereich Lohn- und Lohnsteuerverwaltung, die Einführung des Luna AI-Agenten für Lohn- und HR-Management sowie die Ernennung von Jay Whitehead zum SVP, um die Geschäfte von AsurePay™ Platinum VIP Banking und Marketplace zu leiten.
- Q4 revenue up 22% YoY (excluding ERTC)
- Recurring revenue grew 15% to $114.5M
- Recurring revenue now 96% of total revenue (up from 84%)
- Q4 Adjusted EBITDA increased to $6.2M from $2.8M
- Major multi-year enterprise agreement signed
- Full-year net loss increased to $11.8M from $9.2M
- Full-year Adjusted EBITDA declined to $22.5M from $23.3M
- Non-GAAP gross profit decreased to $88.2M from $90.3M
Insights
Asure's Q4 and full-year 2024 results reveal a company successfully executing a strategic pivot toward high-quality recurring revenue, despite mixed overall performance. The 15% year-over-year growth in recurring revenue to
Q4 results show particularly encouraging momentum, with revenue growing
The company's strategic position in the HCM space appears to be strengthening through its Payroll Tax Management offerings, which secured several major multi-year agreements. The January 2025 partnership with a major audit/consulting firm to resell Asure's payroll solutions represents a potentially significant new revenue channel.
For investors, Asure represents a SaaS business successfully transitioning to a more attractive revenue model, with near-term profitability sacrificed for long-term sustainability. The growing contracted revenue backlog provides increased revenue visibility, though the path to consistent profitability remains a key concern.
Asure's introduction of Luna represents a noteworthy technological advancement in the HCM space. Unlike conventional chatbots that simply respond to queries, Luna functions as a comprehensive AI agent capable of understanding Asure's product suite, providing industry expertise, and—most significantly—executing actions on behalf of both employees and administrators.
This initiative positions Asure at the forefront of practical AI implementation in HCM software, potentially creating meaningful operational efficiencies for clients. The timing aligns with broader industry trends toward embedding AI capabilities directly into business workflows rather than merely offering conversational interfaces.
The strategic focus on Payroll Tax Management solutions has clearly gained traction, as evidenced by several enterprise-level agreements. This specialization addresses a high-complexity, high-value component of HCM that offers natural differentiation from more commoditized payroll offerings.
The technical evolution of Asure's platform, combined with the increasing proportion of recurring revenue (
Reports Full Year 2024 Revenues of
Full Year 2024 Recurring Revenues Grew
Recurring Revenues Grew to
AUSTIN, Texas, March 06, 2025 (GLOBE NEWSWIRE) -- Asure Software, Inc. (“we”, “us”, “our”, “Asure” or the “Company”) (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (“HCM”) software solutions, today reported results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024 Financial Highlights
- Revenue of
$30.8 million , up17% year over year, excluding ERTC revenue up22% from prior year fourth quarter - Recurring revenue of
$28.5 million , up14% from prior year fourth quarter - Net loss of
$3.2 million versus a net loss of$3.6 million during prior year fourth quarter - EBITDA (1) of
$3.4 million versus$1.1 million from prior-year fourth quarter - Adjusted EBITDA (1) of
$6.2 million , versus$2.8 million from prior-year fourth quarter - Gross profit of
$20.9 million versus$17.8 million from prior-year fourth quarter - Non-GAAP gross profit (1) of
$22.5 million (Non-GAAP gross margin (1) of73% ) versus$18.8 million (and72% in prior-year fourth quarter)
Full Year 2024 Financial Highlights
- Revenue of
$119.8 million increased slightly year over year, excluding ERTC revenue up17% from prior year - Recurring revenue of
$114.5 million up15% from prior year - Net loss of
$11.8 million versus prior year net loss of$9.2 million - EBITDA (1) of
$11.4 million versus$14.3 million in the prior year - Adjusted EBITDA (1) of
$22.5 million versus$23.3 million in the prior year - Gross profit of
$82.1 million versus$85.5 million in the prior year - Non-GAAP gross profit (1) of
$88.2 million versus$90.3 million in the prior year
Recent Business Highlights
- In January 2025 we signed a major multi-year agreement with an industry leader in audit, consulting, tax and advisory services to resell our Payroll and Payroll Tax Management solutions. The multi-year agreement will deliver comprehensive payroll and payroll tax management services for the firm’s clients enabling them to offer these services for the first time.
- We announced the introduction of Luna, a groundbreaking AI agent designed to enhance payroll and HR management. Unlike traditional generative AI chatbots, Luna is an advanced AI agent that understands Asure’s suite of products, serves as an industry expert, and most importantly, can act on behalf of both employees through self-service and business owners and administrators.
- Jay Whitehead joined Asure in January 2025 as Senior Vice President to lead our AsurePay™ Platinum VIP Banking card and Marketplace businesses. He is a seasoned entrepreneur, and HCM thought leader who we expect to drive innovation and foster strategic partnerships at Asure.
(1)This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.
Management Commentary
“We are pleased to report strong results for 2024, demonstrating the continued momentum of our business. Excluding the one-time impact of ERTC revenue, our fourth-quarter revenue grew
“Our performance in 2024 was particularly strong in key areas, including our Payroll Tax Management product, which drove several major multi-year agreements with enterprise clients. The success of this product, along with our growing backlog, reinforces the durability of our revenue streams and positions us well for the future.”
“We executed our strategy despite the anticipated headwind of replacing one-time ERTC revenue, and we are entering 2025 with a solid foundation for continued growth. Our plan for 2025 includes both organic and inorganic expansion, supported by the significant investments we’ve made in technology, operations, and new product development. With these improvements, we are confident in our ability to drive sustained, long-term growth.”
First Quarter 2025 and Full Year 2025 Revenue Guidance Ranges
The Company is providing the following guidance for the first quarter 2025 and full year 2025 based on the Company’s year-to-date results and recent business trends. The guidance for our first quarter 2025 and the full year 2025 excludes any contribution from future potential acquisitions.
Guidance for 2025
Guidance Range | Q1-2025 | FY-2025 | ||
Revenue | $ | 33.0 M – 35.0 M | $ | 134.0 M -138.0 M |
Adjusted EBITDA(1) | $ | 6.0 M -7.0 M | ||
(1)This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.
Management uses GAAP, non-GAAP and adjusted measures when planning, monitoring, and evaluating the Company’s performance. The primary purpose of using non-GAAP and adjusted measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way management does.
Management believes that supplementing GAAP disclosures with non-GAAP and adjusted disclosures provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further, to the extent that other companies use similar methods in calculating adjusted financial measures, the provision of supplemental non-GAAP and adjusted information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP and adjusted operating results.
Management has not provided a reconciliation of guidance of GAAP to non-GAAP or adjusted disclosures because management is unable to predict the nature and materiality of non-recurring expenses without unreasonable effort.
Management’s projections are based on management’s current beliefs and assumptions about the Company's business, and the industry and the markets in which it operates; there are known and unknown risks and uncertainties associated with these projections. There can be no assurance that our actual results will not differ from the guidance set forth above. The Company assumes no obligation to update publicly any forward-looking statements, including its 2025 earnings guidance, whether as a result of new information, future events or otherwise. Please refer to the “Use of Forward-Looking Statements” disclosures on page 5 of this press release as well as the risk factors in our quarterly and annual reports on file with the Securities and Exchange Commission for more information about risk that affect our business and industry.
Conference Call Details
Asure management will host a conference call on Thursday, March 6, 2025, at 3:30 pm Central (4:30 pm Eastern). Asure Chairman and CEO Pat Goepel and CFO John Pence will participate in the conference call followed by a question-and-answer session. The conference call will be broadcast live and available for replay via the investor relations section of the Company’s website. Analysts may participate on the conference call by dialing 877-407-9219 or 201-689-8852.
About Asure Software, Inc.
Asure (Nasdaq: ASUR) provides cloud-based Human Capital Management (HCM) software solutions that assist organizations of all sizes in streamlining their HCM processes. Asure's suite of HCM solutions includes HR, payroll, time and attendance, benefits administration, payroll tax management, and talent management. The company's approach to HR compliance services incorporates AI technology to enhance scalability and efficiency while prioritizing client interactions. For more information, please visit www.asuresoftware.com.
Non-GAAP and Adjusted Financial Measures
This press release includes information about non-GAAP gross profit, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP research and development expense, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin. These non-GAAP and adjusted financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP and adjusted financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s Condensed Consolidated Financial Statements prepared in accordance with GAAP. Non-GAAP and adjusted financial measures are reconciled to GAAP in the tables set forth in this release and are subject to reclassifications to conform to current period presentations.
Non-GAAP gross profit differs from gross profit in that it excludes amortization, share-based compensation, and one-time items.
Non-GAAP sales and marketing expense differs from sales and marketing expense in that it excludes share-based compensation and one-time items.
Non-GAAP general and administrative expense differs from general and administrative expense in that it excludes share-based compensation and one-time items.
Non-GAAP research and development expense differs from research and development expense in that it excludes share-based compensation and one-time items.
EBITDA differs from net income (loss) in that it excludes items such as interest, income taxes, depreciation, and amortization. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.
Adjusted EBITDA differs from EBITDA in that it excludes share-based compensation, other income (expense), net and one-time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.
All adjusted and non-GAAP measures presented as “margin” are computed by dividing the applicable adjusted financial measure by total revenue.
Specifically, as applicable to the respective financial measure, management is adjusting for the following items when calculating non-GAAP and adjusted financial measures as applicable for the periods presented. No additional adjustments have been made for potential income tax effects of the adjustments based on the Company’s current and anticipated de minimis effective federal tax rate, resulting from the Company’s continued losses for federal tax purposes and its tax net operating loss balances.
Share-Based Compensation Expenses. The Company’s compensation strategy includes the use of share-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, share-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.
Depreciation. The Company excludes depreciation of fixed assets. Also included in the expense is the depreciation of capitalized software costs.
Amortization of Purchased Intangibles. The Company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, and acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period.
Interest Expense, Net. The Company excludes accrued interest expense, the amortization of debt discounts and deferred financing costs.
Income Taxes. The Company excludes income taxes, both at the federal and state levels.
One-Time Expenses. The Company’s adjusted financial measures exclude the following costs to normalize comparable reporting periods, as these are generally non-recurring expenses that do not reflect the ongoing operational results. These items are typically not budgeted and are infrequent and unusual in nature.
Settlements, Penalties and Interest. The Company excludes legal settlements, including separation agreements, penalties and interest that are generally one-time in nature and not reflective of the operational results of the business.
Acquisition and Transaction Related Costs. The Company excludes these expenses as they are transaction costs and expenses that are generally one-time in nature and not reflective of the underlying operational results of our business. Examples of these types of expenses include legal, accounting, regulatory, other consulting services, severance and other employee costs.
Other non-recurring Expenses. The Company excludes these as they are generally non-recurring items that are not reflective of the underlying operational results of the business and are generally not anticipated to recur. Some examples of these types of expenses, historically, have included write-offs or impairments of assets, demolition of office space and cybersecurity consultants.
Other (Expense) Income, Net. The Company’s adjusted financial measures exclude Other (Expense) Income, Net because it includes items that are not reflective of the underlying operational results of the business, such as loan forgiveness, adjustments to contingent liabilities and credits earned as part of the CARES Act, passed by Congress in the wake of the coronavirus pandemic.
Use of Forward-Looking Statements
This press release contains certain statements made by management that may constitute “forward-looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements about our financial results may include expected or projected U.S GAAP, non-U.S GAAP and other operating and non-operating results. The words “believe,” “may,” “will,” “estimate,” “projects,” “anticipate,” “intend,” “expect,” “should,” “plan,” and similar expressions are intended to identify forward-looking statements. Examples of “forward-looking statements” include statements regarding our strategy, future operations, financial condition, results of operations, projected costs, revenue growth, earnings, and plans and objectives of management. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions, over many of which we have no control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. Additionally, we are under no obligation to update any of the forward-looking statements after the date of this press release or to confirm such statements to actual results.
The risks and uncertainties referred to above include—but are not limited to— risks associated with breaches of the Company’s security measures; risks related to material weaknesses; possible fluctuations in the Company’s financial and operating results; privacy concerns and laws and other regulations may limit the effectiveness of our applications; the financial and other impact of any previous and future acquisitions; domestic and international regulatory developments, including changes to or applicability to our business of privacy and data securities laws, money transmitter laws and anti-money laundering laws; regulatory pressures on economic relief enacted as a result of the COVID-19 pandemic that change or cause different interpretations with respect to eligibility for such programs; risk of our software and solutions not functioning adequately; interruptions, delays or changes in the Company’s services or the Company’s Web hosting; may incur debt to meet future capital requirements; volatility and weakness in bank and capital markets; access to additional capital; significant costs as a result of operating as a public company; the expiration of Employee Retention Tax Credits (“ERTC”) and the impact of the Internal Revenue Service recent measures regarding ERTC claims and the corresponding cash collections of existing receivables; the inability to continue to release timely updates for changes in laws; the inability to develop new and improved versions of the Company’s services and technological developments; customer’s nonrenewal of their agreements and other similar changes could negatively impact revenue, operating results and financial conditions; the exposure of market, interest, credit and liquidity risk on client funds held int rust; the Company’s operation in highlight competitive markets; risk that our clients could have insufficient funds that could result in limitations in the ability to transmit ACH transactions; impairment of intangible assets; litigation and any related claims, negotiations and settlements, including with respect to intellectual property matters or industry-specific regulations; various financial aspects of the Company’s Software-as-a-Service model; adverse effects to our business a result of claims, lawsuits, and other proceedings; issues in the use of artificial intelligence in our HCM products and services; adverse changes to financial accounting standards to the Company; inability to maintain third-party licensed software; evolving regulation of the Internet, changes in the infrastructure underlying the Internet or interruptions in Internet; factors affecting the Company’s deferred tax assets and ability to value and utilize them; the nature of the Company’s business model; inability to adopt new or correctly interpret existing money service and money transmitter business status; the Company’s ability to hire, retain and motivate employees and manage the Company’s growth; interruptions to supply chains and extended shut down of businesses; potential enactment of adverse tax laws, regulation, political, economic and social factors; potential sales of a substantial number of shares of our common stock along with its volatility; risks associate with potential equity-related transactions including dividends, rights under the stockholder plan to discourage certain actions and other impacts as a result of actions of our stockholders.
Please review the Company’s risk factors in its annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2025.
The forward-looking statements, including the financial guidance and 2025 outlook, contained in this press release represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations with regard to these forward looking statements or any change in events, conditions or circumstances on which any such statements are based. © 2025 Asure Software, Inc. All rights reserved
ASURE SOFTWARE, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except per share amounts) | |||||||
December 31, 2024 | December 31, 2023 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 21,425 | $ | 30,317 | |||
Accounts receivable, net of allowance for credit losses of | 18,154 | 14,202 | |||||
Inventory | 195 | 155 | |||||
Prepaid expenses and other current assets | 4,888 | 3,471 | |||||
Total current assets before funds held for clients | 44,662 | 48,145 | |||||
Funds held for clients | 192,615 | 219,075 | |||||
Total current assets | 237,277 | 267,220 | |||||
Property and equipment, net | 19,669 | 14,517 | |||||
Goodwill | 94,724 | 86,011 | |||||
Intangible assets, net | 69,114 | 62,082 | |||||
Operating lease assets, net | 4,041 | 4,991 | |||||
Other assets, net | 11,813 | 9,047 | |||||
Total assets | $ | 436,638 | $ | 443,868 | |||
LIABILITIES AND STOCKHOLDERS’EQUITY | |||||||
Current liabilities: | |||||||
Current portion of notes payable | $ | 7,008 | $ | 27 | |||
Accounts payable | 1,364 | 2,570 | |||||
Accrued compensation and benefits | 4,485 | 6,519 | |||||
Operating lease liabilities, current | 1,438 | 1,490 | |||||
Other accrued liabilities | 6,600 | 3,862 | |||||
Deferred revenue | 8,363 | 6,853 | |||||
Total current liabilities before client fund obligations | 29,258 | 21,321 | |||||
Client fund obligations | 194,378 | 220,019 | |||||
Total current liabilities | 223,636 | 241,340 | |||||
Long-term liabilities: | |||||||
Deferred revenue | 3,430 | 16 | |||||
Deferred tax liability | 2,612 | 1,728 | |||||
Notes payable, net of current portion | 5,709 | 4,282 | |||||
Operating lease liabilities, noncurrent | 3,578 | 4,638 | |||||
Other liabilities | 358 | 209 | |||||
Total long-term liabilities | 15,687 | 10,873 | |||||
Total liabilities | 239,323 | 252,213 | |||||
Stockholders’ equity: | |||||||
Preferred stock, | — | — | |||||
Common stock, | 267 | 254 | |||||
Treasury stock at cost, zero(1)and 384 shares at December 31, 2024 and December 31, 2023, respectively | — | (5,017 | ) | ||||
Additional paid-in capital | 504,849 | 487,973 | |||||
Accumulated deficit | (307,226 | ) | (290,440 | ) | |||
Accumulated other comprehensive loss | (575 | ) | (1,115 | ) | |||
Total stockholders’ equity | 197,315 | 191,655 | |||||
Total liabilities and stockholders’ equity | $ | 436,638 | $ | 443,868 | |||
(1) The aggregate Treasury stock of prior repurchases of the Company's own common stock was retired and subsequently issued effective January 1, 2024. See the Consolidated Statement of Changes in Stockholders' Equity for the impact of this transaction. | |||||||
ASURE SOFTWARE, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (in thousands, except per share amounts) | |||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Revenue: | |||||||||||||||
Recurring | $ | 28,521 | $ | 24,985 | $ | 114,471 | $ | 99,734 | |||||||
Professional services, hardware and other | 2,271 | 1,279 | 5,321 | 19,348 | |||||||||||
Total revenue | 30,792 | 26,264 | 119,792 | 119,082 | |||||||||||
Cost of sales | 9,864 | 8,425 | 37,685 | 33,545 | |||||||||||
Gross profit | 20,928 | 17,839 | 82,107 | 85,537 | |||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | 6,945 | 6,422 | 28,316 | 28,734 | |||||||||||
General and administrative | 9,940 | 9,747 | 40,499 | 39,333 | |||||||||||
Research and development | 2,103 | 1,739 | 7,807 | 6,846 | |||||||||||
Amortization of intangible assets | 4,432 | 3,694 | 16,222 | 13,623 | |||||||||||
Total operating expenses | 23,420 | 21,602 | 92,844 | 88,536 | |||||||||||
Loss from operations | (2,492 | ) | (3,763 | ) | (10,737 | ) | (2,999 | ) | |||||||
Interest income | 151 | 326 | 913 | 1,342 | |||||||||||
Interest expense | (362 | ) | (302 | ) | (1,024 | ) | (5,639 | ) | |||||||
Loss on extinguishment of debt | — | — | — | (1,517 | ) | ||||||||||
Other income (expense), net | (2 | ) | (1 | ) | 8 | (292 | ) | ||||||||
Loss from operations before income taxes | (2,705 | ) | (3,740 | ) | (10,840 | ) | (9,105 | ) | |||||||
Income tax expense (benefit) | 499 | (158 | ) | 933 | 109 | ||||||||||
Net loss | (3,204 | ) | (3,582 | ) | (11,773 | ) | (9,214 | ) | |||||||
Other comprehensive income (loss): | |||||||||||||||
Unrealized gain (loss) on marketable securities | (565 | ) | 1,581 | 540 | 1,368 | ||||||||||
Comprehensive loss | $ | (3,769 | ) | $ | (2,001 | ) | $ | (11,233 | ) | $ | (7,846 | ) | |||
Basic and diluted loss per share | |||||||||||||||
Basic | $ | (0.12 | ) | $ | (0.14 | ) | $ | (0.45 | ) | $ | (0.42 | ) | |||
Diluted | $ | (0.12 | ) | $ | (0.14 | ) | $ | (0.45 | ) | $ | (0.42 | ) | |||
Weighted average basic and diluted shares | |||||||||||||||
Basic | 26,602 | 24,907 | 26,054 | 22,138 | |||||||||||
Diluted | 26,602 | 24,907 | 26,054 | 22,138 | |||||||||||
ASURE SOFTWARE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) | |||||||
Year Ended December 31, | |||||||
2024 | 2023 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (11,773 | ) | $ | (9,214 | ) | |
Adjustments to reconcile loss to net cash provided by operations: | |||||||
Depreciation and amortization | 22,142 | 19,135 | |||||
Amortization of operating lease assets | 1,386 | 1,481 | |||||
Amortization of debt financing costs and discount | 726 | 820 | |||||
Non-cash interest expense | 298 | 1,471 | |||||
Net accretion of discounts and amortization of premiums on available-for-sale securities | (377 | ) | (119 | ) | |||
Provision for expected losses | 46 | 2,047 | |||||
Provision for deferred income taxes | 884 | 225 | |||||
Loss on extinguishment of debt | — | 990 | |||||
Net realized gains on sales of available-for-sale securities | (2,609 | ) | (2,257 | ) | |||
Share-based compensation | 6,444 | 5,430 | |||||
Loss on disposals of long-term assets | — | 132 | |||||
Change in fair value of contingent purchase consideration | — | 175 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (3,998 | ) | (4,126 | ) | |||
Inventory | (41 | ) | 97 | ||||
Prepaid expenses and other assets | (1,886 | ) | 5,101 | ||||
Operating lease right-of-use assets | — | 546 | |||||
Accounts payable | (1,206 | ) | 376 | ||||
Accrued expenses and other long-term obligations | (1,103 | ) | 87 | ||||
Operating lease liabilities | (1,555 | ) | (1,118 | ) | |||
Deferred revenue | 2,010 | (2,379 | ) | ||||
Net cash provided by operating activities | 9,388 | 18,900 | |||||
Cash flows from investing activities: | |||||||
Acquisition of intangible assets | (13,256 | ) | (7,651 | ) | |||
Purchases of property and equipment | (692 | ) | (1,585 | ) | |||
Software capitalization costs | (10,187 | ) | (7,027 | ) | |||
Purchases of available-for-sale securities | (15,643 | ) | (27,647 | ) | |||
Proceeds from sales and maturities of available-for-sale securities | 20,522 | 14,385 | |||||
Net cash used in investing activities | (19,256 | ) | (29,525 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from notes payable, net of issuance costs | 4,995 | — | |||||
Payments of notes payable | (420 | ) | (35,627 | ) | |||
Debt extinguishment costs | — | (250 | ) | ||||
Net proceeds from issuance of common stock | 1,370 | 46,800 | |||||
Capital raise fees | (132 | ) | (338 | ) | |||
Payments made on amounts due for the acquisition of intangibles | (1,513 | ) | (311 | ) | |||
Net change in client fund obligations | (26,342 | ) | 13,931 | ||||
Net cash provided by (used in) financing activities | (22,042 | ) | 24,205 | ||||
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents | (31,910 | ) | 13,580 | ||||
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period | 177,622 | 164,042 | |||||
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period | $ | 145,712 | $ | 177,622 | |||
ASURE SOFTWARE, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (in thousands) | |||||||
Year Ended December 31, | |||||||
2024 | 2023 | ||||||
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets | |||||||
Cash and cash equivalents | $ | 21,425 | $ | 30,317 | |||
Restricted cash and restricted cash equivalents included in funds held for clients | 124,287 | 147,305 | |||||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 145,712 | $ | 177,622 | |||
Supplemental information: | |||||||
Cash paid for interest | $ | — | $ | 3,140 | |||
Cash paid for income taxes | $ | 18 | $ | 432 | |||
Non-cash investing and financing activities: | |||||||
Acquisition of intangible assets | $ | 5,338 | $ | 357 | |||
Notes payable issued for acquisitions | $ | 3,107 | $ | 1,209 | |||
Shares issued for acquisitions | $ | 9,125 | $ | 2,543 | |||
ASURE SOFTWARE, INC. RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (unaudited) | ||||||||||||||||||||||||
(in thousands) | Q4-24 | Q3-24 | Q2-24 | Q1-24 | Q4-23 | Q3-23 | Q2-23 | Q1-23 | ||||||||||||||||
Revenue(1) | $ | 30,792 | $ | 29,304 | $ | 28,044 | $ | 31,652 | $ | 26,264 | $ | 29,334 | $ | 30,420 | $ | 33,064 | ||||||||
Gross Profit to non-GAAP Gross Profit | ||||||||||||||||||||||||
Gross Profit | $ | 20,928 | $ | 19,704 | $ | 18,868 | $ | 22,607 | $ | 17,839 | $ | 21,280 | $ | 22,018 | $ | 24,400 | ||||||||
Gross Margin | 68.0 | % | 67.2 | % | 67.3 | % | 71.4 | % | 67.9 | % | 72.5 | % | 72.4 | % | 73.8 | % | ||||||||
Share-based Compensation | 44 | 44 | 43 | 40 | 32 | 28 | 46 | 31 | ||||||||||||||||
Depreciation | 1,190 | 1,232 | 1,145 | 1,110 | 921 | 984 | 1,309 | 1,009 | ||||||||||||||||
Amortization - intangibles | 50 | 50 | 50 | 50 | 50 | 50 | 50 | 268 | ||||||||||||||||
One-time expenses | ||||||||||||||||||||||||
Settlements, penalties & interest | 25 | 2 | 3 | — | (6 | ) | 8 | — | 4 | |||||||||||||||
Acquisition and transaction costs | 221 | 367 | 264 | 39 | — | — | — | — | ||||||||||||||||
Other non-recurring expenses | 84 | — | — | — | — | — | — | — | ||||||||||||||||
Non-GAAP Gross Profit | $ | 22,542 | $ | 21,399 | $ | 20,373 | $ | 23,846 | $ | 18,836 | $ | 22,350 | $ | 23,423 | $ | 25,712 | ||||||||
Non-GAAP Gross Margin | 73.2 | % | 73.0 | % | 72.6 | % | 75.3 | % | 71.7 | % | 76.2 | % | 77.0 | % | 77.8 | % | ||||||||
Sales and Marketing Expense to non-GAAP Sales and Marketing Expense | ||||||||||||||||||||||||
Sales and Marketing Expense | $ | 6,945 | $ | 6,680 | $ | 6,924 | $ | 7,767 | $ | 6,422 | $ | 6,597 | $ | 8,515 | $ | 7,200 | ||||||||
Share-based Compensation | 251 | 269 | 237 | 243 | 180 | 210 | 149 | 124 | ||||||||||||||||
Depreciation | — | 1 | — | 1 | 1 | — | — | — | ||||||||||||||||
One-time expenses | ||||||||||||||||||||||||
Settlements, penalties & interest | 78 | (5 | ) | 5 | 18 | 6 | 30 | 4 | 11 | |||||||||||||||
Acquisition and transaction costs | 9 | 68 | 37 | 11 | — | — | — | — | ||||||||||||||||
Other non-recurring expenses | 52 | — | — | — | — | — | 180 | — | ||||||||||||||||
Non-GAAP Sales and Marketing Expense | $ | 6,555 | $ | 6,347 | $ | 6,645 | $ | 7,494 | $ | 6,235 | $ | 6,357 | $ | 8,182 | $ | 7,065 | ||||||||
General and Administrative Expense to non-GAAP General and Administrative Expense | ||||||||||||||||||||||||
General and Administrative Expense | $ | 9,940 | $ | 10,378 | $ | 10,118 | $ | 10,063 | $ | 9,747 | $ | 9,294 | $ | 10,336 | $ | 9,956 | ||||||||
Share-based Compensation | 1,081 | 1,187 | 1,122 | 1,535 | 980 | 936 | 1,298 | 1,142 | ||||||||||||||||
Depreciation | 269 | 264 | 256 | 251 | 225 | 200 | 234 | 210 | ||||||||||||||||
One-time expenses | ||||||||||||||||||||||||
Settlements, penalties & interest | 142 | 377 | 304 | 98 | 284 | 101 | 432 | 102 | ||||||||||||||||
Acquisition and transaction costs | 282 | 371 | 245 | 57 | 51 | — | — | — | ||||||||||||||||
Other non-recurring expenses | 220 | 253 | — | 86 | 53 | — | 453 | — | ||||||||||||||||
Non-GAAP General and Administrative Expense | $ | 7,946 | $ | 7,926 | $ | 8,191 | $ | 8,036 | $ | 8,154 | $ | 8,057 | $ | 7,919 | $ | 8,502 | ||||||||
Research and Development Expense to non-GAAP Research and Development Expense | ||||||||||||||||||||||||
Research and Development Expense | $ | 2,103 | $ | 1,973 | $ | 1,962 | $ | 1,769 | $ | 1,739 | $ | 1,803 | $ | 1,325 | $ | 1,979 | ||||||||
Share-based Compensation | 87 | 90 | 86 | 85 | 69 | 76 | 89 | 40 | ||||||||||||||||
One-time expenses | ||||||||||||||||||||||||
Settlements, penalties & interest | 21 | — | 27 | 31 | — | — | — | — | ||||||||||||||||
Acquisition and transaction costs | 153 | 195 | 369 | 147 | — | — | — | — | ||||||||||||||||
Other non-recurring expenses | 29 | — | — | — | — | — | — | — | ||||||||||||||||
Non-GAAP Research and Development Expense | $ | 1,813 | $ | 1,688 | $ | 1,480 | $ | 1,506 | $ | 1,670 | $ | 1,727 | $ | 1,236 | $ | 1,939 | ||||||||
(1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.
ASURE SOFTWARE, INC. RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (cont.) (unaudited) | ||||||||||||||||||||||||
(in thousands) | Q4-24 | Q3-24 | Q2-24 | Q1-24 | Q4-23 | Q3-23 | Q2-23 | Q1-23 | ||||||||||||||||
Revenue(1) | $ | 30,792 | $ | 29,304 | $ | 28,044 | $ | 31,652 | $ | 26,264 | $ | 29,334 | $ | 30,420 | $ | 33,064 | ||||||||
GAAP Net (Loss) Income to Adjusted EBITDA | ||||||||||||||||||||||||
GAAP Net (Loss) Income | $ | (3,204 | ) | $ | (3,901 | ) | $ | (4,360 | ) | $ | (308 | ) | $ | (3,582 | ) | $ | (2,206 | ) | $ | (3,765 | ) | $ | 339 | |
Interest expense, net | 211 | 109 | (53 | ) | (156 | ) | (24 | ) | 782 | 1,593 | 1,944 | |||||||||||||
Income taxes | 499 | 170 | 231 | 33 | (158 | ) | (123 | ) | 627 | (237 | ) | |||||||||||||
Depreciation | 1,460 | 1,497 | 1,402 | 1,361 | 1,148 | 1,185 | 1,542 | 1,219 | ||||||||||||||||
Amortization - intangibles | 4,482 | 4,345 | 4,096 | 3,499 | 3,743 | 3,384 | 3,343 | 3,570 | ||||||||||||||||
EBITDA | $ | 3,448 | $ | 2,220 | $ | 1,316 | $ | 4,429 | $ | 1,127 | $ | 3,022 | $ | 3,340 | $ | 6,835 | ||||||||
EBITDA Margin | 11.2 | % | 7.6 | % | 4.7 | % | 14.0 | % | 4.3 | % | 10.3 | % | 11.0 | % | 20.7 | % | ||||||||
Share-based Compensation | 1,463 | 1,591 | 1,488 | 1,902 | 1,260 | 1,251 | 1,582 | 1,337 | ||||||||||||||||
One Time Expenses | ||||||||||||||||||||||||
Settlements, penalties & interest | 266 | 375 | 339 | 147 | 283 | 140 | 436 | 117 | ||||||||||||||||
Acquisition and transaction costs | 665 | 1,001 | 914 | 254 | 51 | — | — | — | ||||||||||||||||
Other non-recurring expenses | 385 | 253 | — | 86 | 53 | — | 633 | — | ||||||||||||||||
Other expense (income), net | 2 | — | — | (10 | ) | 1 | 1,800 | 93 | (83 | ) | ||||||||||||||
Adjusted EBITDA | $ | 6,229 | $ | 5,440 | $ | 4,057 | $ | 6,808 | $ | 2,775 | $ | 6,213 | $ | 6,084 | $ | 8,206 | ||||||||
Adjusted EBITDA Margin | 20.2 | % | 18.6 | % | 14.5 | % | 21.5 | % | 10.6 | % | 21.2 | % | 20.0 | % | 24.8 | % | ||||||||
(1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.
Investor Relations Contact
Patrick McKillop
Vice President, Investor Relations
617-335-5058
patrick.mckillop@asuresoftware.com
