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 second quarter ended June 30, 2024.
Second Quarter 2024 Financial
Highlights
- Revenue of $28 million, down $2.4
million (8% year over year) owing to a $6.5 million reduction in
ERTC revenue
- Revenue (excluding ERTC revenue) of
$27.5 million, up 18% from $23.3 million versus the same period of
the prior year
- Recurring revenue of $27.1 million,
up 18% year over year 1
- Net loss of $4.4 million versus a
net loss of $3.8 million during the same period of the prior
year
- EBITDA(1) of $1.3 million
versus $3.3 million during the same period of the prior year
- Adjusted EBITDA(1) of $4.1 million
versus $6.1 million during the same period of the prior
year
- Gross profit of $18.9 million
versus $22.0 million during the same period of the prior year
- Non-GAAP gross profit(1) of $20.4
million (Non-GAAP gross margin(1) of 73%) versus $23.4 million (and
77% during the same period of the prior year)
First Half 2024 Financial Highlights
- Revenue of $59.7 million, down 6% from prior year first
half
- Revenue (excluding ERTC revenue) of $58.2 million, up 13.5%
from prior year first half
- Recurring revenue of $57.3 million, up 13% from prior year
first half
- Recurring revenue (excluding ERTC revenue) of $57.3 million, up
13% from prior year first half
- Net loss of $4.7 million versus a net loss of $3.4 million in
the prior year first half
- EBITDA(1) of $5.7 million versus $10.2 million in the prior
year first half
- Adjusted EBITDA(1) of $10.9 million versus $14.3 million in the
prior year first half
- Gross profit of $41.5 million versus $46.4 million in the prior
year first half
- Non-GAAP gross profit(1) of $44.2 million (margin of 74%)
versus $49.1 million (margin of 77%) in prior year first half
Recent Business Highlights
- Announced new agreement for Asure’s Payroll Tax Management
platform with Vensure Employer Solutions, the largest privately
held organization in the HR technology and service sector. This
collaboration will deliver comprehensive payroll tax management
services for Vensure’s PrismHR clients and Vensure’s internal
operations.
- Acquired an applicant tracking
system technology company, which enhances Asure’s product suite for
small and medium size businesses. The highly rated applicant
tracking system features an automated simple all in one hiring tool
which includes services such as job ad writing powered by AI,
automated interview scheduling and auto submission to major job
posting sites.
- Signed a strategic partnership
agreement with MyHRScreens, a premier provider of background
screening services. This collaboration aims to expand access to
comprehensive background screening solutions to small and mid-sized
businesses, facilitating a safer and more efficient hiring
process.
- Released Asure’s Annual HR Benchmark Report for small
businesses. The comprehensive survey of more than 1,000 small and
medium size businesses reveals that businesses prioritizing human
resources (HR) best practices significantly outperform their peers,
underscoring the critical role of strategic people management in
fostering business success.
______________________________
1There was no comparison of recurring revenue excluding ERTC
revenue in Q2 since there was no ERTC revenue in recurring revenue
during Q2 2024 or Q2 2023
(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 10 of this release.
Management Commentary
Asure Chairman and CEO Pat Goepel commented “I’m
pleased with our second quarter performance as our 18% growth in
recurring revenue was made up of a healthy balance of both organic
and inorganic, just as we laid out in our 2024 guidance.
“Demand for our products remains high and our go-to-market teams
continue to bring on new customers, large and small, as evidenced
by our backlog more than doubling versus the year ago period. We
remain focused on continuing the growth of our company and to
support our efforts, we continue to enhance our technology, add
valuable Asure Marketplace™ partnerships, and execute on our
acquisition plan. We have made very good progress this year with
all these initiatives. We believe our recent partnership
announcement with MyHRScreens and the acquisition of an applicant
tracking technology strengthens our product solution suite for our
small and medium sized business clients. We are also pleased to see
accelerated momentum with our Payroll Tax Management solution where
we continue to win enterprise level deals.”
Third Quarter 2024 and Full Year 2024
Revenue Guidance Ranges
The Company is providing the following guidance
for the third quarter 2024 and full year 2024 based on the
Company’s year-to-date results and recent business trends.
Management is updating full year 2024 guidance range to
$123M-$129M. This expanded range is the result of variability in
the timing of closing and implementing both large enterprise
arrangements and anticipated acquisitions.
Guidance for 2024
|
Guidance Range |
|
Q3-2024 |
|
FY-2024 |
|
Revenue |
$ |
30.0M – 33.0M |
$ |
123.0M -129.0M |
| Adjusted EBITDA(1) |
$ |
6.0M -7.0M |
|
20% -21% |
| |
|
|
|
|
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 are 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 2024 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.
(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 10 of this release.
Conference Call Details
Asure management will host a conference call on
Thursday, August 1, 2024, 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 Software (Nasdaq: ASUR) is a leading
provider of Human Capital Management (“HCM”) software solutions. We
help small and mid-sized companies grow by assisting them in
building better teams with skills to stay compliant with
ever-changing federal, state, and local tax jurisdictions and labor
laws, and better allocate cash so they can spend their financial
capital on growing their business rather than back-office overhead
expenses. Asure’s Human Capital Management suite, named AsureHCM®,
includes cloud-based Payroll, Tax Services, and Time &
Attendance software and Asure Marketplace™ as well as human
resources (“HR”) services ranging from HR projects to completely
outsourcing payroll and HR staff. We also offer these products and
services through our network of reseller partners. Visit us at
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 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 we make regarding our operating
performance, future results of operations and financial position,
revenue growth, earnings or other projections. 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. The risks and uncertainties
referred to above include—but are not limited to— the expiration of
major revenue streams such as Employee Retention Tax Credits
(“ERTC”) and the impact of the Internal Revenue Service (“IRS”)
recent measures regarding Employee Retention Tax Credits claims;
risks associated with breaches of the Company’s security measures;
risks associated with the Company’s rate of growth and anticipated
revenue run rate, including impact of the current economic
environment; the Company’s ability to convert deferred revenue and
unbilled deferred revenue into revenue and cash flow, and ability
to maintain continued growth of deferred revenue and unbilled
deferred revenue; 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; the Company’s
ability to continue to release, gain customer acceptance of and
provide support for new and improved versions of the Company’s
services; successful customer deployment and utilization of the
Company’s existing and future services; interruptions to supply
chains and extended shut down of businesses; issues in the use of
artificial intelligence in our HCM products and services; political
unrest, including the current issues between Russia and Ukraine and
the ongoing conflict between Israel and Hamas; reductions in
employment and an increase in business failures, specifically among
our clients; possible fluctuations in the Company’s financial and
operating results; 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;
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; technological developments; the nature of the Company’s
business model; interest rates; competition; various financial
aspects of the Company’s subscription model; impairment of
intangible assets; interruptions or delays in the Company’s
services or the Company’s Web hosting; access to additional
capital; the Company’s ability to hire, retain and motivate
employees and manage the Company’s growth; litigation and any
related claims, negotiations and settlements, including with
respect to intellectual property matters or industry-specific
regulations; volatility and weakness in bank and capital markets;
factors affecting the Company’s deferred tax assets and ability to
value and utilize them; volatility and low trading volume of our
common stock; collection of receivables; and general developments
in the economy, financial markets, credit markets and the impact of
current and future accounting pronouncements and other financial
reporting standards. 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 February 26,
2024 and its quarterly report on Form 10-Q filed with the SEC on
August 1, 2024.
The forward-looking statements, including the
financial guidance and 2024 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.
© 2024 Asure Software, Inc. All rights reserved.
|
ASURE SOFTWARE, INC. |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|
(in thousands, except per share amounts) |
|
(Unaudited) |
| |
| |
June 30, 2024 |
|
December 31, 2023 |
| |
|
|
|
| ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
20,736 |
|
|
$ |
30,317 |
|
|
Accounts receivable, net of allowance for credit losses of $5,469
and $4,787 at June 30, 2024 and December 31, 2023,
respectively |
|
16,273 |
|
|
|
14,202 |
|
|
Inventory |
|
263 |
|
|
|
155 |
|
|
Prepaid expenses and other current assets |
|
4,636 |
|
|
|
3,471 |
|
|
Total current assets before funds held for clients |
|
41,908 |
|
|
|
48,145 |
|
|
Funds held for clients |
|
190,438 |
|
|
|
219,075 |
|
|
Total current assets |
|
232,346 |
|
|
|
267,220 |
|
|
Property and equipment, net |
|
17,189 |
|
|
|
14,517 |
|
|
Goodwill |
|
86,011 |
|
|
|
86,011 |
|
|
Intangible assets, net |
|
70,319 |
|
|
|
62,082 |
|
|
Operating lease assets, net |
|
4,484 |
|
|
|
4,991 |
|
|
Other assets, net |
|
9,769 |
|
|
|
9,047 |
|
| Total assets |
$ |
420,118 |
|
|
$ |
443,868 |
|
| LIABILITIES AND
STOCKHOLDERS’EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Current portion of notes payable |
$ |
18 |
|
|
$ |
27 |
|
|
Accounts payable |
|
1,240 |
|
|
|
2,570 |
|
|
Accrued compensation and benefits |
|
3,540 |
|
|
|
6,519 |
|
|
Operating lease liabilities, current |
|
1,537 |
|
|
|
1,490 |
|
|
Other accrued liabilities |
|
7,524 |
|
|
|
3,862 |
|
|
Deferred revenue |
|
3,030 |
|
|
|
6,853 |
|
|
Total current liabilities before client fund obligations |
|
16,889 |
|
|
|
21,321 |
|
|
Client fund obligations |
|
191,794 |
|
|
|
220,019 |
|
|
Total current liabilities |
|
208,683 |
|
|
|
241,340 |
|
|
Long-term liabilities: |
|
|
|
|
Deferred revenue |
|
3,224 |
|
|
|
16 |
|
|
Deferred tax liability |
|
1,983 |
|
|
|
1,728 |
|
|
Notes payable, net of current portion |
|
5,985 |
|
|
|
4,282 |
|
|
Operating lease liabilities, noncurrent |
|
4,029 |
|
|
|
4,638 |
|
|
Other liabilities |
|
683 |
|
|
|
209 |
|
|
Total long-term liabilities |
|
15,904 |
|
|
|
10,873 |
|
|
Total liabilities |
|
224,587 |
|
|
|
252,213 |
|
|
Stockholders’ equity: |
|
|
|
|
Preferred stock, $0.01 par value; 1,500 shares authorized; none
issued or outstanding |
|
— |
|
|
|
— |
|
|
Common stock, $0.01 par value; 44,000 shares authorized; 25,918 and
25,382 shares issued, 25,918 and 24,998 shares outstanding at March
31, 2024 and December 31, 2023, respectively |
|
259 |
|
|
|
254 |
|
|
Treasury stock at cost, zero(1) and 384 shares at March 31,
2024 and December 31, 2023, respectively |
|
— |
|
|
|
(5,017 |
) |
|
Additional paid-in capital |
|
496,743 |
|
|
|
487,973 |
|
|
Accumulated deficit |
|
(300,121 |
) |
|
|
(290,440 |
) |
|
Accumulated other comprehensive loss |
|
(1,350 |
) |
|
|
(1,115 |
) |
|
Total stockholders’ equity |
|
195,531 |
|
|
|
191,655 |
|
| Total liabilities and
stockholders’ equity |
$ |
420,118 |
|
|
$ |
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 Condensed Consolidated Statement of Changes in
Stockholders' Equity for the impact of this transaction. |
| |
|
ASURE SOFTWARE, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS |
|
(in thousands, except per share amounts) |
|
(Unaudited) |
| |
|
|
|
| |
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
| |
2024 |
|
2023 |
|
2024 |
|
2023 |
| |
|
|
|
|
|
|
|
| Revenue: |
|
|
|
|
|
|
|
|
Recurring |
$ |
27,051 |
|
|
$ |
22,960 |
|
|
$ |
57,324 |
|
|
$ |
50,916 |
|
|
Professional services, hardware and other |
|
993 |
|
|
|
7,460 |
|
|
|
2,372 |
|
|
|
12,568 |
|
| Total revenue |
|
28,044 |
|
|
|
30,420 |
|
|
|
59,696 |
|
|
|
63,484 |
|
| Cost of sales |
|
9,176 |
|
|
|
8,402 |
|
|
|
18,221 |
|
|
|
17,066 |
|
|
Gross profit |
|
18,868 |
|
|
|
22,018 |
|
|
|
41,475 |
|
|
|
46,418 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
Sales and marketing |
|
6,924 |
|
|
|
8,515 |
|
|
|
14,691 |
|
|
|
15,715 |
|
|
General and administrative |
|
10,118 |
|
|
|
10,336 |
|
|
|
20,181 |
|
|
|
20,292 |
|
|
Research and development |
|
1,962 |
|
|
|
1,325 |
|
|
|
3,731 |
|
|
|
3,304 |
|
|
Amortization of intangible assets |
|
4,046 |
|
|
|
3,294 |
|
|
|
7,495 |
|
|
|
6,596 |
|
| Total operating expenses |
|
23,050 |
|
|
|
23,470 |
|
|
|
46,098 |
|
|
|
45,907 |
|
| (Loss) income from
operations |
|
(4,182 |
) |
|
|
(1,452 |
) |
|
|
(4,623 |
) |
|
|
511 |
|
|
Interest income |
|
261 |
|
|
|
230 |
|
|
|
597 |
|
|
|
578 |
|
|
Interest expense |
|
(208 |
) |
|
|
(1,823 |
) |
|
|
(388 |
) |
|
|
(4,116 |
) |
|
Other (expense) income, net |
|
— |
|
|
|
(93 |
) |
|
|
10 |
|
|
|
(9 |
) |
| Loss from operations before
income taxes |
|
(4,129 |
) |
|
|
(3,138 |
) |
|
|
(4,404 |
) |
|
|
(3,036 |
) |
|
Income tax expense |
|
231 |
|
|
|
627 |
|
|
|
264 |
|
|
|
390 |
|
| Net loss |
|
(4,360 |
) |
|
|
(3,765 |
) |
|
|
(4,668 |
) |
|
|
(3,426 |
) |
| Other comprehensive loss: |
|
|
|
|
|
|
|
|
Unrealized income (loss) on marketable securities |
|
9 |
|
|
|
(493 |
) |
|
|
(235 |
) |
|
|
(12 |
) |
| Comprehensive loss |
$ |
(4,351 |
) |
|
$ |
(4,258 |
) |
|
$ |
(4,903 |
) |
|
$ |
(3,438 |
) |
| |
|
|
|
|
|
|
|
| Basic and diluted loss per
share |
|
|
|
|
|
|
|
|
Basic |
$ |
(0.17 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.17 |
) |
|
Diluted |
$ |
(0.17 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.18 |
) |
|
$ |
(0.17 |
) |
| |
|
|
|
|
|
|
|
| Weighted average basic and
diluted shares |
|
|
|
|
|
|
|
|
Basic |
|
25,840 |
|
|
|
20,651 |
|
|
|
25,587 |
|
|
|
20,500 |
|
|
Diluted |
|
25,840 |
|
|
|
20,651 |
|
|
|
25,587 |
|
|
|
20,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASURE SOFTWARE, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
|
(in thousands) |
|
(Unaudited) |
| |
| |
Six Months Ended June 30, |
| |
2024 |
|
2023 |
| |
|
|
|
| Cash flows from operating
activities: |
|
|
|
|
Net loss |
$ |
(4,668 |
) |
|
$ |
(3,426 |
) |
|
Adjustments to reconcile loss to net cash (used) in provided by
operations: |
|
|
|
|
Depreciation and amortization |
|
10,359 |
|
|
|
9,675 |
|
|
Amortization of operating lease assets |
|
677 |
|
|
|
775 |
|
|
Amortization of debt financing costs and discount |
|
302 |
|
|
|
355 |
|
|
Non-cash interest expense |
|
— |
|
|
|
1,431 |
|
|
Net accretion of discounts on available-for-sale securities |
|
(170 |
) |
|
|
(31 |
) |
|
Provision for expected losses |
|
107 |
|
|
|
1,873 |
|
|
Provision for deferred income taxes |
|
255 |
|
|
|
86 |
|
|
Net realized gains on sales of available-for-sale securities |
|
(1,294 |
) |
|
|
(1,024 |
) |
|
Share-based compensation |
|
3,390 |
|
|
|
2,919 |
|
|
Loss on disposals of long-term assets |
|
— |
|
|
|
92 |
|
|
Change in fair value of contingent purchase consideration |
|
— |
|
|
|
(69 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
|
Accounts receivable |
|
(2,178 |
) |
|
|
(6,379 |
) |
|
Inventory |
|
(108 |
) |
|
|
118 |
|
|
Prepaid expenses and other assets |
|
(1,636 |
) |
|
|
4,520 |
|
|
Operating lease right-of-use assets |
|
98 |
|
|
|
189 |
|
|
Accounts payable |
|
(1,330 |
) |
|
|
(830 |
) |
|
Accrued expenses and other long-term obligations |
|
(1,858 |
) |
|
|
928 |
|
|
Operating lease liabilities |
|
(374 |
) |
|
|
(485 |
) |
|
Deferred revenue |
|
(3,291 |
) |
|
|
(4,621 |
) |
| Net cash (used) in provided by
operating activities |
|
(1,719 |
) |
|
|
6,096 |
|
| Cash flows from investing
activities: |
|
|
|
|
Acquisition of intangible asset |
|
(4,097 |
) |
|
|
— |
|
|
Purchases of property and equipment |
|
(375 |
) |
|
|
(1,020 |
) |
|
Software capitalization costs |
|
(5,042 |
) |
|
|
(3,301 |
) |
|
Purchases of available-for-sale securities |
|
(6,462 |
) |
|
|
(18,885 |
) |
|
Proceeds from sales and maturities of available-for-sale
securities |
|
8,617 |
|
|
|
5,940 |
|
| Net cash used in investing
activities |
|
(7,359 |
) |
|
|
(17,266 |
) |
| Cash flows from financing
activities: |
|
|
|
|
Payments of notes payable |
|
— |
|
|
|
(643 |
) |
|
Payments made on amounts due for the acquisition of intangible
assets |
|
(236 |
) |
|
|
— |
|
|
Net proceeds from issuance of common stock |
|
572 |
|
|
|
2,266 |
|
|
Capital raise fees |
|
(46 |
) |
|
|
— |
|
|
Net change in client fund obligations |
|
(28,225 |
) |
|
|
(17,225 |
) |
| Net cash used in financing
activities |
|
(27,935 |
) |
|
|
(15,602 |
) |
| Net decrease in cash and cash
equivalents |
|
(37,013 |
) |
|
|
(26,772 |
) |
| Cash and cash equivalents,
beginning of period |
|
177,622 |
|
|
|
164,042 |
|
| Cash and cash equivalents, end
of period |
$ |
140,609 |
|
|
$ |
137,270 |
|
|
ASURE SOFTWARE, INC. |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(continued) |
|
(in thousands) |
|
(Unaudited) |
| |
| |
Six Months Ended June 30, |
| |
2024 |
|
2023 |
| |
|
|
|
| Reconciliation of
cash and cash equivalents to the Condensed Consolidated Balance
Sheets |
|
Cash and cash equivalents |
$ |
20,736 |
|
$ |
21,613 |
|
Cash and cash equivalents included in funds held for clients |
|
119,873 |
|
|
115,657 |
| Total cash and cash
equivalents |
$ |
140,609 |
|
$ |
137,270 |
| |
|
|
|
| Supplemental information: |
|
|
|
|
Cash paid for interest |
$ |
— |
|
$ |
2,119 |
|
Cash paid for income taxes |
$ |
— |
|
$ |
466 |
| |
|
|
|
| Non-cash investing and
financing activities: |
|
|
|
|
Acquisition of intangible assets |
$ |
5,450 |
|
$ |
954 |
|
Notes payable issued for acquisitions |
$ |
1,423 |
|
$ |
— |
|
Shares issued for acquisitions |
$ |
4,863 |
|
$ |
— |
|
|
|
|
|
|
|
|
ASURE SOFTWARE, INC. |
|
RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL
MEASURES |
|
(unaudited) |
| |
| (in thousands) |
Q2-24 |
Q1-24 |
Q4-23 |
Q3-23 |
Q2-23 |
Q1-23 |
Q4-22 |
Q3-22 |
|
Revenue(1) |
$ |
28,044 |
|
$ |
31,652 |
|
$ |
26,264 |
|
$ |
29,334 |
|
$ |
30,420 |
|
$ |
33,064 |
|
$ |
29,292 |
|
$ |
21,903 |
|
| |
|
|
|
|
|
|
|
|
| Gross Profit to non-GAAP
Gross Profit |
|
|
|
|
|
|
|
|
| Gross
Profit |
$ |
18,868 |
|
$ |
22,607 |
|
$ |
17,839 |
|
$ |
21,280 |
|
$ |
22,018 |
|
$ |
24,400 |
|
$ |
21,139 |
|
$ |
13,647 |
|
| Gross Margin |
|
67.3 |
% |
|
71.4 |
% |
|
67.9 |
% |
|
72.5 |
% |
|
72.4 |
% |
|
73.8 |
% |
|
72.2 |
% |
|
62.3 |
% |
| |
|
|
|
|
|
|
|
|
|
Share-based Compensation |
|
43 |
|
|
40 |
|
|
32 |
|
|
28 |
|
|
46 |
|
|
31 |
|
|
34 |
|
|
38 |
|
|
Depreciation |
|
1,145 |
|
|
1,110 |
|
|
921 |
|
|
984 |
|
|
1,309 |
|
|
1,009 |
|
|
871 |
|
|
860 |
|
|
Amortization - intangibles |
|
50 |
|
|
50 |
|
|
50 |
|
|
50 |
|
|
50 |
|
|
268 |
|
|
298 |
|
|
296 |
|
|
One-time expenses |
|
|
|
|
|
|
|
|
|
Settlements, penalties & interest |
|
3 |
|
|
— |
|
|
(6 |
) |
|
8 |
|
|
— |
|
|
4 |
|
|
3 |
|
|
38 |
|
|
Acquisition and transaction costs |
|
264 |
|
|
39 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Non-GAAP Gross
Profit |
$ |
20,373 |
|
$ |
23,846 |
|
$ |
18,836 |
|
$ |
22,350 |
|
$ |
23,423 |
|
$ |
25,712 |
|
$ |
22,345 |
|
$ |
14,879 |
|
| Non-GAAP Gross Margin |
|
72.6 |
% |
|
75.3 |
% |
|
71.7 |
% |
|
76.2 |
% |
|
77.0 |
% |
|
77.8 |
% |
|
76.3 |
% |
|
67.9 |
% |
| |
|
|
|
|
|
|
|
|
| Sales and
Marketing Expense to non-GAAP Sales and Marketing
Expense |
| Sales and Marketing
Expense |
$ |
6,924 |
|
$ |
7,767 |
|
$ |
6,422 |
|
$ |
6,597 |
|
$ |
8,515 |
|
$ |
7,200 |
|
$ |
6,022 |
|
$ |
4,752 |
|
| |
|
|
|
|
|
|
|
|
|
Share-based Compensation |
|
237 |
|
|
243 |
|
|
180 |
|
|
210 |
|
|
149 |
|
|
124 |
|
|
93 |
|
|
90 |
|
|
Depreciation |
|
— |
|
|
1 |
|
|
1 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
One-time expenses |
|
|
|
|
|
|
|
|
|
Settlements, penalties & interest |
|
5 |
|
|
18 |
|
|
6 |
|
|
30 |
|
|
4 |
|
|
11 |
|
|
— |
|
|
— |
|
|
Acquisition and transaction costs |
|
37 |
|
|
11 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Other non-recurring expenses |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
180 |
|
|
— |
|
|
— |
|
|
— |
|
| Non-GAAP Sales and
Marketing Expense |
$ |
6,645 |
|
$ |
7,494 |
|
$ |
6,235 |
|
$ |
6,357 |
|
$ |
8,182 |
|
$ |
7,065 |
|
$ |
5,929 |
|
$ |
4,662 |
|
| |
|
|
|
|
|
|
|
|
| General and
Administrative Expense to non-GAAP General and Administrative
Expense |
| General and
Administrative Expense |
$ |
10,118 |
|
$ |
10,063 |
|
$ |
9,747 |
|
$ |
9,294 |
|
$ |
10,336 |
|
$ |
9,956 |
|
$ |
9,720 |
|
$ |
8,023 |
|
| |
|
|
|
|
|
|
|
|
|
Share-based Compensation |
|
1,122 |
|
|
1,535 |
|
|
980 |
|
|
936 |
|
|
1,298 |
|
|
1,142 |
|
|
641 |
|
|
590 |
|
|
Depreciation |
|
256 |
|
|
251 |
|
|
225 |
|
|
200 |
|
|
234 |
|
|
210 |
|
|
168 |
|
|
149 |
|
|
One-time expenses |
|
|
|
|
|
|
|
|
|
Settlements, penalties & interest |
|
304 |
|
|
98 |
|
|
284 |
|
|
101 |
|
|
432 |
|
|
102 |
|
|
34 |
|
|
15 |
|
|
Acquisition and transaction costs |
|
245 |
|
|
57 |
|
|
51 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Other non-recurring expenses |
|
— |
|
|
86 |
|
|
53 |
|
|
— |
|
|
453 |
|
|
— |
|
|
— |
|
|
— |
|
| Non-GAAP General and
Administrative Expense |
$ |
8,191 |
|
$ |
8,036 |
|
$ |
8,154 |
|
$ |
8,057 |
|
$ |
7,919 |
|
$ |
8,502 |
|
$ |
8,877 |
|
$ |
7,269 |
|
| |
|
|
|
|
|
|
|
|
| Research and
Development Expense to non-GAAP Research and Development
Expense |
| Research and Development
Expense |
$ |
1,962 |
|
$ |
1,769 |
|
$ |
1,739 |
|
$ |
1,803 |
|
$ |
1,325 |
|
$ |
1,979 |
|
$ |
1,627 |
|
$ |
1,230 |
|
| |
|
|
|
|
|
|
|
|
|
Share-based Compensation |
|
86 |
|
|
85 |
|
|
69 |
|
|
76 |
|
|
89 |
|
|
40 |
|
|
70 |
|
|
80 |
|
|
One-time expenses |
|
|
|
|
|
|
|
|
|
Settlements, penalties & interest |
|
27 |
|
|
31 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
25 |
|
|
3 |
|
|
Acquisition and transaction costs |
|
369 |
|
|
147 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
| Non-GAAP Research and
Development Expense |
$ |
1,480 |
|
$ |
1,506 |
|
$ |
1,670 |
|
$ |
1,727 |
|
$ |
1,236 |
|
$ |
1,939 |
|
$ |
1,532 |
|
$ |
1,147 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) |
Q2-24 |
Q1-24 |
Q4-23 |
Q3-23 |
Q2-23 |
Q1-23 |
Q4-22 |
Q3-22 |
|
Revenue(1) |
$ |
28,044 |
|
$ |
31,652 |
|
$ |
26,264 |
|
$ |
29,334 |
|
$ |
30,420 |
|
$ |
33,064 |
|
$ |
29,292 |
|
$ |
21,903 |
|
| |
|
|
|
|
|
|
|
|
| GAAP Net
(Loss) Income to Adjusted EBITDA |
| GAAP Net (Loss)
Income |
$ |
(4,360 |
) |
$ |
(308 |
) |
$ |
(3,582 |
) |
$ |
(2,206 |
) |
$ |
(3,765 |
) |
$ |
339 |
|
$ |
(1,056 |
) |
$ |
(4,533 |
) |
| |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(53 |
) |
|
(156 |
) |
|
(24 |
) |
|
782 |
|
|
1,593 |
|
|
1,944 |
|
|
1,429 |
|
|
1,122 |
|
|
Income taxes |
|
231 |
|
|
33 |
|
|
(158 |
) |
|
(123 |
) |
|
627 |
|
|
(237 |
) |
|
(94 |
) |
|
102 |
|
|
Depreciation |
|
1,402 |
|
|
1,361 |
|
|
1,148 |
|
|
1,185 |
|
|
1,542 |
|
|
1,219 |
|
|
1,039 |
|
|
1,009 |
|
|
Amortization - intangibles |
|
4,096 |
|
|
3,499 |
|
|
3,743 |
|
|
3,384 |
|
|
3,343 |
|
|
3,570 |
|
|
3,648 |
|
|
3,646 |
|
| EBITDA |
$ |
1,316 |
|
$ |
4,429 |
|
$ |
1,127 |
|
$ |
3,022 |
|
$ |
3,340 |
|
$ |
6,835 |
|
$ |
4,966 |
|
$ |
1,346 |
|
| EBITDA Margin |
|
4.7 |
% |
|
14.0 |
% |
|
4.3 |
% |
|
10.3 |
% |
|
11.0 |
% |
|
20.7 |
% |
|
17.0 |
% |
|
6.1 |
% |
| |
|
|
|
|
|
|
|
|
|
Share-based Compensation |
|
1,488 |
|
|
1,902 |
|
|
1,260 |
|
|
1,251 |
|
|
1,582 |
|
|
1,337 |
|
|
838 |
|
|
798 |
|
|
One Time Expenses |
|
|
|
|
|
|
|
|
|
Settlements, penalties & interest |
|
339 |
|
|
147 |
|
|
283 |
|
|
140 |
|
|
436 |
|
|
117 |
|
|
62 |
|
|
56 |
|
|
Acquisition and transaction costs |
|
914 |
|
|
254 |
|
|
51 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
Other non-recurring expenses |
|
— |
|
|
86 |
|
|
53 |
|
|
— |
|
|
633 |
|
|
— |
|
|
— |
|
|
— |
|
|
Other (expense) income, net |
|
— |
|
|
(10 |
) |
|
1 |
|
|
1,800 |
|
|
93 |
|
|
(83 |
) |
|
139 |
|
|
(399 |
) |
| Adjusted
EBITDA |
$ |
4,057 |
|
$ |
6,808 |
|
$ |
2,775 |
|
$ |
6,213 |
|
$ |
6,084 |
|
$ |
8,206 |
|
$ |
6,005 |
|
$ |
1,801 |
|
| Adjusted EBITDA Margin |
|
14.5 |
% |
|
21.5 |
% |
|
10.6 |
% |
|
21.2 |
% |
|
20.0 |
% |
|
24.8 |
% |
|
20.5 |
% |
|
8.2 |
% |
(1)Note that first quarters are seasonally strong as recurring
year-end W2/ACA revenue is recognized in this period.
Investor Relations ContactPatrick McKillopVice
President, Investor
Relations617-335-5058patrick.mckillop@asuresoftware.com
Grafico Azioni Asure Software (NASDAQ:ASUR)
Storico
Da Dic 2024 a Gen 2025
Grafico Azioni Asure Software (NASDAQ:ASUR)
Storico
Da Gen 2024 a Gen 2025
