Asure Software Inc (ASUR) Q3 2024 Earnings Call Highlights: Navigating Challenges with Strong ...

GuruFocus.com11-01

Revenue: $29.3 million for Q3 2024, flat compared to the prior year. Recurring Revenue: 98% of total revenue, up from 81% in the prior year. Net Loss: $3.9 million for Q3 2024, compared to a net loss ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2480278140?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/ZMZXabfmXJE1ATVUlobeEg--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/e039d34492c1e6cb258bd866321424e1","is_english":true,"pubTime":"2024-11-01 15:18","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2480278140","market":"us","top_or_hot":-1,"title":"Asure Software Inc (ASUR) Q3 2024 Earnings Call Highlights: Navigating Challenges with Strong ...","media":"GuruFocus.com","content":"<div>\n<p>Revenue: $29.3 million for Q3 2024, flat compared to the prior year.\nRecurring Revenue: 98% of total revenue, up from 81% in the prior year.\nNet Loss: $3.9 million for Q3 2024, compared to a net loss ...</p>\n\n<a href=\"https://finance.yahoo.com/news/asure-software-inc-asur-q3-071828325.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Asure Software Inc (ASUR) Q3 2024 Earnings Call Highlights: Navigating Challenges with Strong ...</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAsure Software Inc (ASUR) Q3 2024 Earnings Call Highlights: Navigating Challenges with Strong ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-01 15:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/asure-software-inc-asur-q3-071828325.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $29.3 million for Q3 2024, flat compared to the prior year.\nRecurring Revenue: 98% of total revenue, up from 81% in the prior year.\nNet Loss: $3.9 million for Q3 2024, compared to a net loss ...</p>\n\n<a href=\"https://finance.yahoo.com/news/asure-software-inc-asur-q3-071828325.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ASUR","symbol_name":"Asure Software Inc","start_time":0,"source_url":"https://finance.yahoo.com/news/asure-software-inc-asur-q3-071828325.html","article_id":"2480278140","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/ZMZXabfmXJE1ATVUlobeEg--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/e039d34492c1e6cb258bd866321424e1"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2480278140","pubTimestamp":1730445508,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue: $29.3 million for Q3 2024, flat compared to the prior year.Recurring Revenue: 98% of total revenue, up from 81% in the prior year.Net Loss: $3.9 million for Q3 2024, compared to a net loss of $2.2 million in the prior year.Gross Margin: Decreased to 67% from 73% in the prior year.Non-GAAP Gross Margin: Decreased to 73% from 76% in the prior year.EBITDA: $2.2 million for Q3 2024, down from $3 million in the prior year.Adjusted EBITDA: $5.4 million for Q3 2024, down from $6.2 million in the prior year.Adjusted EBITDA Margin: 19% for Q3 2024, compared to 21% in the prior year.Cash and Cash Equivalents: $11.2 million at the end of Q3 2024.Debt: $7.5 million at the end of Q3 2024.2024 Revenue Guidance: $119 million to $121 million.2024 Adjusted EBITDA Margin Guidance: 18% to 19%.2025 Revenue Guidance: $134 million to $138 million.2025 Adjusted EBITDA Margin Guidance: 23% to 24%.Contracted Backlog: Over $67 million, a 250% increase from the previous year.GuruFocus has detected 5 War","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ASUR":"Asure Software Inc"},"translate_title":"Asure Software Inc(ASUR)2024年第三季度收益看涨期权亮点：以强大的……应对挑战。","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ASUR":1},"content_text":"Revenue: $29.3 million for Q3 2024, flat compared to the prior year.\nRecurring Revenue: 98% of total revenue, up from 81% in the prior year.\nNet Loss: $3.9 million for Q3 2024, compared to a net loss of $2.2 million in the prior year.\nGross Margin: Decreased to 67% from 73% in the prior year.\nNon-GAAP Gross Margin: Decreased to 73% from 76% in the prior year.\nEBITDA: $2.2 million for Q3 2024, down from $3 million in the prior year.\nAdjusted EBITDA: $5.4 million for Q3 2024, down from $6.2 million in the prior year.\nAdjusted EBITDA Margin: 19% for Q3 2024, compared to 21% in the prior year.\nCash and Cash Equivalents: $11.2 million at the end of Q3 2024.\nDebt: $7.5 million at the end of Q3 2024.\n2024 Revenue Guidance: $119 million to $121 million.\n2024 Adjusted EBITDA Margin Guidance: 18% to 19%.\n2025 Revenue Guidance: $134 million to $138 million.\n2025 Adjusted EBITDA Margin Guidance: 23% to 24%.\nContracted Backlog: Over $67 million, a 250% increase from the previous year.\n\n\nWarning! GuruFocus has detected 5 Warning Sign with ASUR.\n\nRelease Date: October 31, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nRecurring revenue now represents 98% of total revenue, up from 81% in the prior year, indicating a more stable and predictable revenue stream.\nThe company achieved a 20% growth in recurring revenue, driven by acquisitions and organic growth.\nSales bookings increased by 141% compared to the previous year, and the backlog grew by 250%, setting the stage for future growth.\nAsure Software Inc (NASDAQ:ASUR) has successfully acquired 12 companies over the past four quarters, adding approximately $15 million in repetitive revenue.\nThe company is expanding its product offerings, including the launch of Asure Pay, a new financial services product, and other solutions like 401k and workmen's compensation for small businesses.\n\n Negative Points \n\nThird quarter revenue was flat compared to the prior year, primarily due to a $5 million decrease in non-recurring ERTC revenue.\nNet loss for the third quarter increased to $3.9 million from $2.2 million in the prior year period.\nGross margins decreased to 67% from 73% in the prior year, with non-GAAP gross margins also declining.\nEBITDA for the third quarter decreased to $2.2 million from $3 million in the prior year period, with adjusted EBITDA margin dropping to 19% from 21%.\nThe company faced challenges with the timing of large enterprise tax deals and new product introductions, impacting revenue expectations for 2024.\n\n Q & A Highlights \nQ: Can you provide more color on the lower revenue for the quarter compared to expectations and the confidence in the 2025 growth guidance? A: Patrick Goepel, CEO, explained that the lower revenue was due to timing issues with large deals and professional services. Despite this, sales bookings were up 141%, and backlog increased by 250%. The company is confident in achieving 13% growth in 2025 due to strong sales momentum and backlog.\nQ: How long is the sales cycle for enterprise payroll tax deals, and what visibility do you have on these deals? A: Patrick Goepel, CEO, noted that sales cycles can vary, with some deals taking 90 to 120 days due to contracting processes. The company has integrations with 27 payroll companies, which helps in bringing clients. Eyal Goldstein, President & CRO, added that they work directly with enterprises and through system integrators, providing visibility and revenue opportunities.\nQ: What are the underlying assumptions for the FY '25 revenue guidance, including macro conditions and employment growth? A: John Pence, CFO, stated that the guidance assumes a 3.5% terminal interest rate from the Fed, impacting client funds. Employment growth is modeled as flat, with small businesses facing challenges in hiring. The guidance does not include potential acquisitions.\nQ: Can you discuss the drivers of margin expansion for FY '25? A: Patrick Goepel, CEO, highlighted that sales growth and backlog will drive margin expansion. The company has added new products and capabilities, increasing per employee per month revenue potential. John Pence, CFO, added that the business is scaling, with top-line growth not requiring significant incremental costs.\nQ: How did bookings break down between new and existing clients? A: Patrick Goepel, CEO, mentioned that bookings were approximately 70% new clients and 30% existing clients. The company aims to increase wallet share with existing clients while maintaining strong new client acquisition.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2480278140"}